Chapter 06 EXPORTS OF INDIA TO U.S.A. Estelar

Transcription

1 Chapter 06 EXPORTS OF INDIA TO U.S.A

2 CHAPTER-06 EXPORT OF INDIA TO U.S.A India has the remarkable trade history with U.S.A in all the terms and various commodities. Indian trade history dates back 200 hundred years ago when the American famous trader Yankee Clipper come India with the ice and in return of it he took spices from India to U.S.A. India exports almost 110 commodities throughout the world but all the commodities which are exported to the different countries of the world are sold out by different intensities which mostly depend upon their need of urgencies in the world. The exported commodities are comprised by all like the primary products, the manufactured, engineering, gold and diamonds, handicrafts and the chemical products. India has its trade network with the 50 major economies of the world which shows the significant results while trading with these countries. India is one the leading nation of the developing world and at present India has attracted the attention of all the countries of the world developed and the developing nations. But still India is not on the satisfactory position in the exporting countries merit list. India ranked at 19 th position in terms of exporting to the different countries of the world. India was the United States' 17th largest goods export market in U.S. goods exports to India in 2010 were $19.2 billion, up 16.9% ($2.8 billion) from 2009, and up 738% from 1994 (the year prior to Uruguay Round). U.S. exports to India account for 1.5% of overall U.S. exports in The top exports categories (2-digit HS) in 2010 were: Precious Stones (diamonds and gold) ($4.2 billion), Machinery ($2.7 billion), Electrical Machinery ($1.4 billion), Aircraft ($1.3 billion), and Fertilizers ($1.1 billion). U.S. exports of agricultural products to India totalled $755 million in Leading categories include: tree nuts ($244 million), soybean oil ($133 million), pulses ($96 million), and cotton ($69 million). U.S. exports of private commercial services (i.e., excluding military and government) to India were $9.9 billion in 2009 (latest data available), 2.1% ($

3 million) less than 2008, but 712% greater than 1994 levels. Other private services (education), and travel categories accounted for most of the U.S. exports in Table No. 6.1 India s Bilateral Trade with U.S.A During ( to ) (US million Dolar) Year India s Exports India s Import Total Trade Balance of Trade (P) Source:- Department of commerce (Export Import Data Bank), various Economic Surveys P = Provisional Table No. 6.1 the India s Bilateral Trade with U.S.A in US million Dollars depicts that India in enjoying the trade surplus with U.S.A right from the beginning of the period of study upto date now. 122

4 Table no. 6.2 India s Exports to U.S.A and world (During to ) in US million dollars Years India s Export to India s Export to world U.S.A of India s Exports to U.S.A in world Exports Source:-Department of commerce based on DGCI&S data and CMIE Mumbai. As the period of the study is mentioned to the policy changes since 2001, the trade policies right from the beginning was performing smoothly but unfortunate the trend policy of has been reframed in 2004 and named as the trade policy of ( ) by the change of Central Government as a result the data hereby clearly shows the magnitude of trade between India with the world in general and with the U.S.A in particular. 123

5 Table No. 6.3 India s Exports to World Selected commodities 124 (In us million Dollars) S. No. Commodity Basmati Rice Cashew Marine Products Poultry & Dairy Product Processed vegetables Spices Ores and Minerals Leather goods Paints, Enamals, Varnishes Engineering Goods Manufactures of Metals Electronic Goods Textiles (excl. RMG) Readymade Garments (RMG) 15 Handicrafts (excl. handmade Carpets) 16 Gems and jewellery Drugs, pharma and fine chemicals 18 Machinery & Instruments Transport Equipment Carpet handmade Iron and Steel Paper and wood products Rubber manufacture products Processed Minerals Source:-Department of commerce (Export Import Data Bank), various Economic Surveys

6 Table : 6.4 India s Exports to U.S.A Commodity wise (US million dollars.) S. No. Commodity Basmati Rice Cashew Marine Products Poultry & Dairy Product Processed vegetables Spices Ores and Minerals Leather goods Paints, Enamals, Varnishes Engineering Goods Manufactures of Metals Electronic Goods Textiles (excl. RMG) Readymade Garments (RMG) Handicrafts (excl. handmade Carpets) 16 Gems and jewellery Drugs, pharma and fine chemicals Machinery & Instruments Transport Equipment Carpet handmade Iron and Steel Paper and wood products Rubber manufacture products Processed Minerals Total Source:-Department of commerce (Export Import Data Bank), various Economic Surveys 125

7 Table : 6.5 India s Exports to U.S.A Commodity wise (%age ) S. No. Commodity Basmati Rice Cashew Marine Products Poultry & Dairy Product Processed vegetables Spices Ores and Minerals Leather goods Paints, Enamals, Varnishes Engineering Goods Manufactures of Metals Electronic Goods Textiles (excl. RMG) Readymade Garments (RMG) Handicrafts (excl. handmade Carpets) 16 Gems and jewellery Drugs, pharm and fine chemicals Machinery & Instruments Transport Equipment Carpet handmade Iron and Steel Paper and wood products Rubber manufacture products Processed Minerals Total Source:- Department of commerce (Export Import Data Bank), various Economic Surveys 126

8 The table No. 6.3, 6.4 and 6.5 shows the major commodity composition of some commodities which shares it s maximum in the exports of India to world in general and to U.S.A in particular. India has gained significantly in terms of exports to the world. The selected commodities of India s exports to world in table No. 6.3 clearly indicates that India is moving towards the improved exporting trends in almost all the except some like Handicrafts and some other among the non-selected commodities. Concludely it can be said that India is improving amply in terms of exports to the world. But if we talk on over the issue of India U.S.A trade pattern on the basis of commodities/selected commodities India is not only showing the positive trends but also backing up Indian economy on account of India s exports to U.S.A. The commodity composition of the selected commodities of exports of India to U.S.A shares almost 70 percent of the exporting commodities to U.S.A In this table it can be very easily analysed that almost all the commodities increased by more than double within the given period of the study from to All the selected commodities are to be discussed one by one later on in this chapter. Engineering goods shares maximum of percent in the exports of India to U.S.A at the end of the period of study shown in table No Uptill now the attempt has been made to the exports of India to U.S.A on all commodity bases as a whole. Here an attempt has been made to analyse the exports of India on individual basis with absolute and relative terms. Now an attempt has been made to make an analytical study of these commodities which have played an important role out of the 24 related commodities for the purpose of study for ten years from to For the convenience of study ten such commodities have been selected purposively which covers above 90% among the selected 24 commodities by which the best results can be expected by analysing thoroughly these ten commodities. The remaining commodities which contribute insignificant in the overall exports of India to U.S.A will be taken for the purpose of analytical study in a consolidated mummer later in this chapter. 127

9 Year Value of Export US $ million Table No. 6.6 Engineering goods Change over the preceding year Source:- Department of commerce (Export Import Data Bank), various Economic Surveys Table No. 6.6, Table depicts India s exports to U.S.A commodity wise engineering goods in absolute and Relative terms during to The value of exports of engineering goods has gone up from US $ million to US $ million in after that registering a decrease in and the value dipped to US $ million with negative of percent over and has moved to US $ million at the end of the period of the study. In i.e percent over the preceding years as a result shares percent of the total exports to U.S.A from India in Thus it may be inferred that the value of exports of Engineering goods have significantly started towards the end period of the study and have played an important role in the overall exports accounting ¼ th of India s exports to U.S.A throughout the period of the study. 128

10 Year Value of Table no. 6.7 (Gems and Jewellery) Export US $ million Change over the preceding year Source:- Department of commerce (Export Import Data Bank), various Economic Surveys The Table No. 6.7 clearly depicts that the exports value of Gems and Jewellery absolutely and relatively shows that the value of exports of Gems and Jewellery good up from US $ million in to US $ million at the ending year of the period of the study. The value of exports of Gems and Jewellery was gone up continuously upto which in come down to US $ million but again pick up momentum and the exports of Gems and Jewellery raised to US $ million at the end of the period of the study. Thus very easily can be analysed and concluded that the exports of Gems and Jewellery are consistently increasing throughout the different years of the period of the study but fluctuating in the percentage share of the total exports of India to USA which finally slipped down to at the end of the period of the study. 129

11 Year Value of Export US $ million Table no. 6.8 (Readymade Garments) Change over the preceding year Source:- Department of commerce (Export Import Data Bank), various Economic Surveys Table No. 6.8 represents the India exports to U.S.A of Readymade Garments in absolute and relative terms during to As this is clear from the table that the exports of Readymade Garments has risen from US $ million in to US $ million in shows almost the doubled increase in the values of exports of Readymade Garments from India to U.S.A at the end of the period of the study relatively. The exports of Readymade Garments to U.S.A showing the regular increment during the different years of the period of the study not some years also face negative of exports of Readymade Garments relatively the highest decrease in the exports by to the preceding years of and again in it faced backward change over the preceding year which continued for the consecutive next two years worsened the exports of readymade garments of India to U.S.A just dropped the exports of readymade garments India to U.S.A at US $ million shows the significant increase as compared to the initial year of 130

12 the period of the study but relatively with high fluctuation and uncertainties loses its share in the overall exports of India to U.S.A which slipped down from 16.27% in the initial period of the study to 10.10% at the end of period of the study. Year Table no. 6.9 (Drugs, Pharma and Fine Chemicals) Value of Export US $ million Change over the preceding year Source:- Department of commerce (Export Import Data Bank), various Economic Surveys The table No. 6.9 analysed that the value of exports of (Drugs, Pharma and Fine Chemicals) in the absolute and Relative terms during the period ( to ) shows that the exports of these products gave up in from US $ million to US $ million in which stood almost more than 6 times increase during the period of the study smoothly and uninterruptedly. The highest increase took place in the year of over with the percent in the same year than after increased continuously highly and moderately along with also increased the percentage share in the overall exports of (Drugs, 131

13 Pharma and Five Chemicals) throughout the period the study. Thus concludes that these products contributes significantly in the export basked of India to U.S.A particularly. Table no Year Value of Export US $ million (Manufactures of Metals) Change over the preceding year Source:- Department of commerce (Export Import Data Bank), various Economic Surveys The table No throws light on the value of exports of manufactures of metals from India to U.S.A in absolute and relative terms in addition to the percentage share in India s exports to U.S.A from to It is clear from the table that the value of manufactures of metals from India to U.S.A has surged year after year with some exceptions in the years like when the exports of manufactures of metals dipped by but at the end of the year relatively the exports of manufactures of metals increased positively by percent in On the other hand the share of manufactures of metals which account 3.95 percent in the overall exports to U.S.A in has risen to 7.60 percent with a slight 132

14 fluctuation in between the period of the study. Thus it may be concluded that the value of manufactures of metals have registered a significant increase both in absolute and relatives terms during the period of the study. Year Value of Export US $ million Table no Textiles (Excl. RMG) Change over the preceding year Source:- Department of commerce (Export Import Data Bank), various Economic Surveys From Table No It is observed that the value of exports of textiles (Excl. RMG) increased almost double from US $ million in to US $ million at the end of the period of the study. This table clearly shows the decreasing trends in the total percentage share of exports of India to U.S.A. Although the exports of textiles are continuously increasing throughout the different years of the period of the study except in the year ( , and ) relatively naming highest decrease of percent in moved the value of exports of Textiles of India to U.S.A to US $ million at the end of the period of the study. On the 133

15 other hand the share of Textiles when amounted for 9.88 percent in the overall exports to U.S.A in come down to 5.85 percent at the end of the period of the study with fluctuations in it. Thus it may be concluded that the value of exports name increased throughout the period but shows less percentage share as compared to the prevailing years through the study period. US $ million Table no (Machinery and Instruments) Year Value of Export Change over the preceding year Source:- Department of commerce (Export Import Data Bank), various Economic Surveys In table No Interestingly machinery and instruments are showing significant increase and % share in the overall exports of India to U.S.A. In the modern era and during the period of the study be the satisfaction can be gain by analysing the above table that the exports of machinery and instruments from India to U.S.A are continuously increasing year after year during the period of the study and 134

16 can be realised that India is not only preparing machinery for own use but for the purpose of export and also exporting it to U.S.A. Thus amazingly it could be concluded that with the slight interruption the export of machinery and instruments gaining the marvellous support to Indian economy after observing the positive trends both in the export values and percentage share during the different years of the period of study from India to U.S.A. Export US $ million Table no (Transport Equipment) Year Value of Change over the preceding year Source:- Department of commerce (Export Import Data Bank), various Economic Surveys Table No shows another but activity in the given table by which it is very easy to understand the technological efforts of India that India is continuously increasing the value of exports of Transport equipments to U.S.A during the period of the study uninterruptedly. Although the reports of Transport equipments are not 135

17 increased by the galloping speed but it can be realised that in the coming future India will acquire the best position in the export of technological commodities like Transport equipment and after that will be purchased by country like U.S.A. The exports of Transport equipments gave up from US $ millions in to in increased were about eleven times during the period of the study. Thus can be concluded that increasing significantly and showing repeatedly in the overall exports of India to U.S.A. Export US $ million Table no (Electronic Goods) Year Value of Change over the preceding year Source:- Department of commerce (Export Import Data Bank), various Economic Surveys Exports of Electronic goods from India to U.S.A in absolute and Relative terms with percentage share are tabulated in Table No The value of Electronic goods has gone up more than 5 times from US $ million in beginning to US $ million at the end of the period of the study. The exports of electronic 136

18 goods from India to U.S.A shows a consistent and steady grow the throughout the years of the period of the study exceptionally decreased twice in ( and ) but again raised upto worth valued with the high rate of percent at the end of the period of the study. Thus concludes that with the modest of exports of electronic goods from India to U.S.A shows it significant role in the overall exports of India to U.S.A. Export US $ million Table No.: 6.15 Marine Products Year Value of Change over the preceding year Source:-Department of commerce (Export Import Data Bank), various Economic Surveys In the table No the exports of marine products has been shown in the absolute and relative terms during the period to As clear from the table that the exports of Marine Products has risen from US $ million in to US $ million in Thus increased more than double in the given period of the study but in view of the volume this figure is not satisfactory though this increase was registered with ups and downs in between the study years. The marine 137

19 products exports reaches it s highest in the year valued US $ millions but after that decreased continuously and reaches on US $ million at the end of the period of the study also bears the negative decrease of in Thus it can be may easily concluded that though the export name recorded considerable increase over the period of the study with ups and downs with decreasing share in U.S.A exports. All other commodities which India exports to U.S.A share its least in the percentage of total exports of India to U.S.A. These commodities are as Poultry and Dairy Products, Processed Vegetables, Spices, Ores and Minerals, Leather goods, Paints Enamels, Varnishes, Handicrafts, Carpet handmade, Iron and steel, Paper and Wood Products, Rubber manufactured products, Processed Minerals and Basmati Rice. The share of all these above commodities contributes almost less than 10% share in the total exports of India to U.S.A among the 24 major exporting commodities to U.S.A. Therefore these commodities has not played significant role to enhance the exports of India to U.S.A. Table No Basmati Rice (During to Value of Export US $ Change over the preceding million year Source:-Department of commerce (Export Import Data Bank), various Economic Surveys 138

20 (During to Table No Cashew Nuts Value of Export Change over US $ million the preceding year Source:-Department of commerce (Export Import Data Bank), various Economic Surveys Table No.: 6.18 INDIA S EXPORT TO U.S.A Poultry and Dairy Products. Year Value of Export in US $ millions Change over the preceding years Change Source:-Department of commerce (Export Import Data Bank), various Economic Surveys

21 Year Table no (Spices) Value of Export Change over the US $ million preceding year Source:- Department of commerce (Export Import Data Bank), various Economic Surveys Table no (Ores and Minerals) Year Value of Export US $ million Change over the preceding year Source:-Department of commerce (Export Import Data Bank), various Economic Surveys

22 Year Table no (Leather Goods) Value of Export Change over the US $ million preceding year Source:- Department of commerce (Export Import Data Bank), various Economic Surveys Table no (Paints, Enamels, Varnishes) Year Value of Export US $ million Change over the preceding year Source:- Department of commerce (Export Import Data Bank), various Economic Surveys 141

23 Year Source:- Year Value of Export US $ million Table No Processed Vegetables Change over the preceding year Department of commerce (Export Import Data Bank), various Economic Surveys Table no Handicrafts (Excl. Handmade Carpets) Value of Export Change over the US $ million preceding year Source:- Department of commerce (Export Import Data Bank), various Economic Surveys Change

24 Year Value of Export US $ million Table no (Carpet handmade) Change over the preceding year Source:- Department of commerce (Export Import Data Bank), various Economic Surveys Table no (Iron and Steel) Year Value of Export Change over the US $ million preceding year Source:- Department of commerce (Export Import Data Bank), various Economic Surveys

25 Source:- Year Value of Export US $ million Table no (Paper and wood products) Change over the preceding year Department of commerce (Export Import Data Bank), various Economic Surveys Table no (Rubber Manufacture Products) Year Value of Export US $ million Change over the preceding year Source: Department of commerce (Export Import Data Bank), various Economic Surveys

26 Source:- Year Table no (Processed Minerals) Value of Export Change over the US $ million preceding year Department of commerce (Export Import Data Bank), various Economic Surveys The table no calculate correlation between the GDP of USA (x) and Exports of India to U.S.A (y) are analyzed which shows the results at the end after calculating it mathematically. The values of GDP of U.S.A and Exports of India to U.S.A are calculated per ten thousand. Table no (GDP OF USA and Exports of India to USA) GDP of USA (dx) = x x (dx) 2 Exports of dy = (y y ) (dy) 2 dxdy (X) x = India to USA (Y) x = dx =

27 Formula = r = dxdy = x 10,000 = dx 2 = x 10,000 = dy 2 = x 10,000 = per then thousand r = r = r =... r =. r = 0.99 Thus there is high degree of positive correlation between the GDP of U.S.A and Exports as India to U.S.A. One way analysis of variation is also performed to access whether the export of the products varies significantly across the years using PSAW and the results are presented below. Using the Greenhouse Geyser measure we obtain a F value of and a P value of.075 which leads to the conclusion that exports do not vary significantly across the years at 5% level of significance but do in fact vary at 10% level of significance. Tests of Within-Subjects Effects Source Type III Sum of Squares df Mean Square F Sig. Partial Eta Squared TIME Sphericity Assumed Greenhouse-Geisser Huynh-Feldt Lower-bound Error(TIME) Sphericity Assumed 6.075E Greenhouse-Geisser 6.075E Huynh-Feldt 6.075E Lower-bound 6.075E