Chapter-3. Trends in India s Foreign Trade

Transcription

1 Chapter-3 Trends in India s Foreign Trade India s Trade Performance India s merchandise exports reached a level of US $ billion during registering a growth of percent as compared to a growth of percent during the previous year. Despite the recent setback faced by India s export sector due to global slowdown, merchandise exports still recorded a Compound Annual Growth Rate (CAGR) of 20.3 per cent from to World Trade Scenario As per IMF s World Economic Outlook January, 2013, the volume of world trade (goods and services) in 2012 slowed down to 2.8 per cent compared to the 5.9 per cent achieved in As per IMF projections, growth in the volume of world trade is expected to rise to 3.8 per cent in The IMF has put its growth projections of world output at 3.5 per cent in The advanced economies are expected to grow at 1.4 per cent while the emerging and developing economies to grow at 5.5 per cent in The projected growth rates in different countries are expected to determine the markets for our exports. As per WTO s International Trade Statistics, 2012, in merchandise trade, India is the 19 th largest exporter in the world with a share of 1.7 per cent and the 12 th largest importer with a share of 2.5 per cent in Exports Exports recorded a growth of per cent during Apr-Mar The Government has set an export target of US $ 360 billion for The merchandise exports have reached US $ billion in (Apr.-Feb.). Export target and achievement from to and (Apr.-Feb.) is given in the Chart 3.1 below: 27

2 Annual Report Imports Cumulative value of imports during (Apr.-Feb.) was US $ billion as against US $ billion during the corresponding period of the previous year registering a growth of 0.25 per cent in $ terms. Oil imports were valued at US $ billion during (Apr.-Feb.) which was per cent higher than oil imports valued US $ billion in the corresponding period of previous year. Non-oil imports were valued at US $ billion during (Apr.-Feb.) which was 5.03 per cent lower than non-oil imports of US $ billion in previous year. Trade Balance The Trade deficit in (Apr.-Feb.) was estimated at US $ billion which was higher than the deficit of US $ billion during (Apr.-Feb.). Performance of Exports, Imports and Balance of Trade during to (April-Feb.) is given in the table below: S. No Year Exports %Growth Imports %Growth (Values in Rs crores) Trade Balance ,75, ,01, ,25, ,56, ,60, ,03, ,71, ,40, ,68, ,55, ,12, ,56, ,40, ,74, ,33, ,45, ,63, ,18, ,42, ,83, ,40, (Provisional) 14,59, ,44, ,85, (April-February) Press Release (April-February) Press Release Data Source : DGCIS, Kolkata 13,20,836 21,32,198-8,11,362 14,46, ,36, ,89,938 (Values in US$ Millions) S. No. Year Exports %Growth Imports %Growth Trade Balance , ,11, , ,03, ,49, , ,26, ,85, , ,63, ,51, , ,85, ,03, ,18,401 28

3 CHAPTER-3 Trends in India s Foreign Trade ,78, ,88, ,09, ,51, ,69, ,18, (Provisional) 3,04, ,89, ,84, (April-February) Press Release (April-February) Press Release 2,77,125 4,46,939-1,69,814 2,65, ,48, ,82,090 Data Source: DGCIS, Kolkata Exports of Principal Commodities Disaggregated data on exports of Principal Commodities, both in Rupee and Dollar terms, available for the period (April-January) as compared with the corresponding period of the previous year are given in Appendix at Table 3.1 and Table 3.2 respectively. Exports of the top five commodities during the period (April-January) registered a share of 50.8 per cent in US $ terms mainly due to significant contribution in the exports of Petroleum (Crude & Products), Gems & Jewellery, Transport Equipments, Machinery and Instruments and Drugs, Pharmaceuticals & Fine Chemicals. The share of top five Principal Commodity Groups in India s total exports during (April- January) is given at Chart

4 Annual Report The export performance (in terms of growth in US $ terms) of top five commodities during (April-January) vis-a-vis the corresponding period of the previous year is shown in Chart

5 CHAPTER-3 Plantation Crops Export of Plantation crops during (April January), decreased by 9.95 per cent in US $ terms compared with the corresponding period of the previous year. Export of Coffee registered a negative growth of per cent, the value decreasing from US $ million to US $ million. Export of Tea also decreased by 8.50 per cent. Agriculture and Allied Products Agriculture and Allied Products as a group include Cereals, Pulses, Tobacco, Spices, Nuts and Seeds, Oil Meals, Guargum Meals, Castor Oil, Shellac, Sugar & Molasses, Processed Food, Meat & Meat Products, etc. During (April January), exports of commodities under this group registered a growth of per cent with the value of exports increasing from US $ million in the previous year to US $ million during the current year. Ores and Minerals Exports of Ores and Minerals were estimated at US $ million during (April- January) registering a negative growth of per cent over the same period of the previous year. Sub groups viz. Iron Ore, Mica, Other ores & minerals and Coal have recorded a negative growth of per cent, 0.80 per cent, 9.46 per cent and 5.24 percent respectively. Processed minerals registered a growth of per cent. Leather and Leather Manufactures Export of Leather and Leather Manufactures recorded a negative growth of 2.22 per cent during (April-January). The value of exports decreased to US $ million from US $ million during the same period of the previous year. Exports of Leather and Manufactures have registered a growth of 3.98 per cent and Leather Footwear registered a negative growth of per cent. Gems and Jewellery Trends in India s Foreign Trade The export of Gems and Jewellery during (April-January) decreased to US $ million from US $ million during the corresponding period of last year showing a negative growth of per cent. Chemicals and Related Products During the period (April-January), the value of exports of Chemicals and Related Products increased to US $ million from US $ million during the same period of the previous year registering a growth of 7.33 per cent. Basic Chemicals and Pharmaceuticals & Cosmetics and Rubber, Glass & Other Products have registered a positive growth and Residual Chemicals and allied products and Plastic & linoleum registered a negative growth. Engineering Goods Items under this group consist of Machinery, Iron & Steel and Other Engineering items. Export from this sector during the period (April- January) stood at US $ million compared with US $ million during the same period of the previous year, registering a negative growth of 5.05 per cent. The growth in export of Other Engineering items stood at 5.78 per cent, Machinery & Instruments stood at 3.53 per cent and Machine Tools stood at 4.59 per cent. Electronic Goods During the period (April-January), exports of Electronic Goods as a group was estimated at US $ million compared with US $ million during the corresponding period of last year, registering a negative growth of 4.55 per cent. Textiles During the period (April-January), the value of Textiles exports was estimated at US $ million compared with US $ million in the corresponding period of the previous year, recording a negative growth of 5.56 per cent. The 31

6 Annual Report export of Readymade Garments, Manmade Textiles & Made Ups, Natural Silk Textiles, Wool and Woolen manufactures, Coir and coir manufactures and Jute manufactures registered negative growth of 7.80 per cent, per cent, per cent, per cent, 7.18 per cent and per cent respectively. However, Cotton yarn/fabrics/made-ups etc. registered a positive growth of 6.38 per cent. Handicrafts and Carpets Exports of Handicrafts declined to US $ million during (April- January), from US $ million during the corresponding period of the previous year registering a negative growth of per cent. Export of carpets increased to US $ million from US $ million during the same period last year registering a growth of per cent. Project Goods During (April-January), the export of Project Goods were estimated at US $ million compared with US $ million during the corresponding period of last year registering a substantial growth of per cent. Petroleum Products Export of Petroleum Products increased to US $ million during (April- January), as compared with US $ million during the same period of last year recording a growth of 4.57 per cent. Cotton Raw including Waste There was a negative growth in the exports of Cotton Raw including waste by per cent from US $ million in (April-January) to US $ million during (April- January). Imports of Principal Commodities Disaggregated data on imports of principal commodities, both in Rupee and Dollar terms, available for the period (April January), as compared to the corresponding period of the previous year are given in Appendix at Table 3.5 and Table 3.6 respectively. Imports of the top five commodities during the period (April- January) registered a share of 61.8 per cent mainly due to significant imports of Petroleum (Crude & Products), Gold, Electronic Goods, Machinery except electrical and electronic and Pearls, precious and semi-precious stones. The share of top five Principal Commodity in India s total imports during (April January) is given at Chart

7 CHAPTER-3 Trends in India s Foreign Trade The import performance by growth of top five Principal commodities during (April January) visa-vis the corresponding period of the previous year is shown at Chart 3.6. Fertilizers During (April January), import of Fertilizers (manufactured) decreased to US $ million from US $ million in April- January recording a negative growth of per cent. Petroleum Crude & Products The import of Petroleum Crude & Products stood at US $ million during April - January as against US $ million during the same period of the previous year registering a growth of per cent. Pearls, Precious and Semi-Precious Stones Import of Pearls, Precious and Semi-Precious Stones during (April January) decreased to US $ million from US $ million during the corresponding period of the previous year registering a substantial decline of per cent. Capital Goods Import of Capital Goods, largely comprises of Machinery, including Transport Equipment and Electrical Machinery. Import of Machine Tools, Non-Electrical Machinery, and Electrical Machinery registered a negative growth of 4.67 per cent, 6.94 per cent, 6.45 per cent respectively and Transport Equipment registered a positive growth of 0.04 per cent. Organic and Inorganic Chemicals During (April January), import of Organic and Inorganic Chemicals increased to US $ million from US $ million during the same period of last year, registering a growth of 1.76 per cent. Import of Medicinal and Pharmaceutical Products increased to US $ million from US $ million during the corresponding period of last year registering a growth of 4.21 per cent Coal, Coke & Briquettes During (April January), import of Coal, Coke & Briquettes decreased to US $ million from US $ million during the same period of last year, registering a negative growth of per cent. 33

8 Annual Report Gold & Silver During (April January) import of Gold and Silver decreased to US $ million from US $ million during the corresponding period of the previous year registering a negative growth of 9.63 per cent. Direction of India s Foreign Trade The value of India s exports and imports from major regions/ countries both in Rupee and Dollar terms are given in Appendix at Table 3.3, 3.4, 3.7 and 3.8 respectively. Share of major destinations of India s Exports and sources of Imports during (April January) are given in Chart 3.7 and 3.8 respectively. countries (27) comprises per cent. During the period, USA (12.89 per cent) has been the most important country of export destination followed by UAE (12.20 per cent), Singapore (4.79 percent), China (4.59 per cent) and Hong Kong (3.95 per cent). Asia accounted for per cent of India s total imports during the period followed by Europe (17.39 per cent) and America (11.64 per cent). Among individual countries the share of China stood highest at (11.21 per cent) followed by UAE (7.67 per cent), Saudi Arabia (6.78 per cent), Switzerland (6.01 per cent) and USA (5.00 per cent). During the period (April January), the share of Asia comprising of East Asia, ASEAN, West Asia, Other West Asia, North East Asia and South Asia accounted for per cent of India s total exports in US $ terms. The share of Europe and America in India s exports stood at per cent and per cent respectively of which EU 34