Indias Foreign Trade post 2000.

FOREIGN TRADE

Trade between the different countries of the world. Also known as International trade, External trade or Inter-Regional trade. Consists of imports, exports and entrepot.

Need and Importance Of Foreign Trade.

Division of labour and specialisation. Optimum allocation and utilisation of resources. Availability of multiple choices. Raises standard of living of the people. Ensures quality and standard goods. Generate employment opportunities. Facilitate economic development. Maintains balance of payment position. Promotes World Peace.

India And Foreign Trade

Origin Indus Valley Civilization Initially India - supplier of foodstuff and raw materials, importer of manufactured goods. The Industrial Policy of 1991 drastically affected the growth of Indian businesses. India has recorded strong export growth to the United States and the European Union markets.

Indias Export Report

Indias Export Since 2000

2000-01 witnessed a high growth of 19.6%. This growth declined sharply to 0.05% in 2001-02. Reasons behind this drastic reduction : Structural constraints on demand and supply Recessionary tendencies Protectionist policies by developed countries disrupted Indias exports Movement of exchange rate Indias share in world exports increased from 0.7% in 2000 to 1.7% in 2011

Share Of India And Other Countries In World Exports (2006-2013)

Composition Of Indias Exports

Composition Of Indias Exports

Table commodities share from 2006-2013

How do I put the whole page???

Agricultural and Allied Products

The share of agriculture items has played an important role but there has been decline in the year 2009 & 2011. The share of agriculture exports again increased in the year 2012 to 12.25% as compared to 9.65% in 2011 The top items of agriculture exports include : Fish Products, Rice, Oil Cakes, Fruits and Vegetables Most important export item in 'Agriculture and Allied products' group over the period 2006-07 to 2012-13 has been 'Fish and Fish Preparations'. From $ 585 millions in 2006-07 earnings from fish and fish preparations rose to $ 1,589 millions in 2012-13. However, in percentage terms, their share fell slightly from 1.39 percent in 2006-07 to 1.15 percent in 2012-13.

Ores and Minerals

Overall export performance of ores and minerals is not satisfactory. In percentage terms, export performance of ores and mineral is decreasing year by year from 5.54 % in 2006-07 to 1.85% in 2012-13. A major share of ores and minerals exports comes from the export of iron ore with 0.53% of 1.85%

Manufactured Goods
The share of manufactured items is on downside. In 2006-07, the share of manufactured items was about 67.20%. In 2012-13, the share of manufactured items reached 61.15% The top manufactured export items include : Engineering Goods, Gems and Jewellery, Chemicals and Allied products, and Readymade Garments

Engineering Goods

Bumpy ride for Engineering goods in exports. In percentage terms, share has decreased from 23.33% in 2006-07 to 21.60% in 2012-13.

Export of Engineering goods was highest in the year 2008-09 with 25.68%.

Indias Export 2006 - 2011

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Indias exports stood at Rs. 11,42,922 crore in 2010-11 as compared to Rs.8,45,534 crore during 2009-10, resulting in a growth of 35.17% in 2010-11. The corresponding growth of 0.57% in 200910 indicating that there was more impact of global recess/slowdown on Indias economy in the initial year.

Major Export Items

Indias Major Exporting Countries

Direction Of Exports

USA, Germany, Japan, Russia and Middle East countries are major trade partners. Share of Exports to the OECD countries has been declining decline in share to EU and Japan.

Share of exports to USA, OPEC and Latin American Countries has increased.
Incase of Eastern Europe exports declined due to slowing down of exports to Russia. Exports to Asia and Africa has remained on the same level.

TREND IN EXPORTS(20002012)

Indias Import Report

INDIAS IMPORTS SINCE 2000

Composition of Indias Imports Pearls and Precious stones

Petroleum Products

Capital Goods

Gold and Silver

Iron and Steel

PETROLEUM PRODUCTS

There has not been much movement in the % share of Petroleum products from past years. From 30.83% in 2006-07 it maintained the level till 2012 and increased to 34.47% in 2013.

CAPITAL GOODS

The imports of capital goods was 16.63% in 2006-07. In 2007-08, the imports of capital goods jumped upto 19.95%.

However, it showed a downside from 2009 & its at 12.32 % in 2012-13

PEARLS AND PRECIOUS STONES

In 2006-07, the share of pearls and precious stones was 4.04%. Rose to 9.36% in 2010-11. However it is back to normal at 4.60% in 201213.

IRON AND STEEL

The imports of iron and steel have declined over the years in percentage terms. In 2006-07, the share of iron and steel imports was 3.23%, which has come down to 1.99% in 2012-13. This is because, a good amount of iron ore is now extracted in India which has reduced imports.

GOLD AND SILVER

Massive increase in the % of imports of Gold & Silver. Having 7.89% in 2006-07, rose to 11.34% in 2012-13. With Maximum of 12.54% in 2011-12

Major Importing Countries( Check dis vid slide 35)

EDIT...& PUT IT IN WORD

Indias imports from the China remained consistently on top. The percentage share of import value from China was marginally less than 10 % in the initial year, but it has consistently increased to more than 1 This indicates the importance of Chinese goods in Indian markets. The shares of imports from the next four major countries during 2010-11 are much less the UAE has a share of 8.86 %, followed by Switzerland (6.70 %), Saudi Arab (5.52%), and USA (5.43%). The UAE is the second major source of imports for the last two years. China, UAE, Switzerland, Saudi Arab and USA remain at the top five countries for the last two years with combined import shares of 38.28% and 34.34% respectively in 2010-11 and 2009-10. Switzerland was in the fifth position in 2009-10, but has occupied the third position pushing Saudi Arab and USA into fourth and fifth positions respectively.

It can be seen from the table that for the last five years, Indias imports from the Peoples Republic of China remained consistently on top with the percentage shares of imports is about 12% in 201011. The percentage share of import value from China was marginally less than 10 % in the initial year (9.40 % in 2006-07), but it has consistently increased to more than 10% thereafter for the next three years and in 2010-11, it is 11.77 %. This indicates the importance of Chinese goods in Indian markets as the shares of imports from the next four major countries during 2010-11 are much less the UAE has a share of 8.86 %, followed by Switzerland (6.70 %), Saudi Arab (5.52%), and USA (5.43%). The UAE is the second major source of imports for the last two years. China, UAE, Switzerland, Saudi Arab and USA remain at the top five countries for the last two years with combined import shares of 38.28% and 34.34% respectively in 2010-11 and 2009-10. Switzerland was inthe fifth position in 2009-10, but has occupied the third position pushing Saudi Arab and USA into fourth and fifthpositions respectively

Indias Major Imports

Import of Petroleum Products

EDIT...& PUT IT IN WORD

Due to increase of petroleum prices globally, the value of import of petroleum products has increased. As a result, the import scenario in terms of percentage shares of item groups, sources countries, major port formation, etc. has changed. Table 3.8A shows the value and percentage shares of top 10 major countries from where petroleum products have been imported during last three years. Table3.8B shows the value and growth of import of petroleum products over previous year for these countries. It may be seen from the Table 3.8A that the top 10 countries from where petroleum products have been imported, have shares of about 80 %, 78 %, and 81 % of the total petroleum products imported to India during 2008-09, 200910,and 2010-11 respectively. Of these 10 countries, the top 6 countries, namely Saudi Arabia, Nigeria, Kuwait, UAE, Iran, and Iraq have combined shares of about 70 %, 62 %, and 62 % of total imports of petroleum products in 2008-09, 2009-10 and 2010-11respectively with Saudi Arab at the top. It has very significant shares of 19.64 %, 17.63 % and 16.94 % during 2008-09, 2009-10 and 2010-11 respectively. As may be seen from the table, all the top 6 countries mentioned above have recorded shares of imports of petroleum products more than 8 % in these three years.

Import of Principal Commodities

SOURCES OF IMPORTS

SOURCES OF IMPORTS

Post 2000, Indias imports are being sourced from a wider range of countries. Important trading partners are China, UAE, Saudi Arabia and Switzerland. Belgium principal source of imports for Gems and Jewellery.

Current Scenario

CONCLUSION

Future Export drivers - Textiles, Engineering Goods, Automobiles, capital Goods and Processed Food Items.