Recent trends in Foreign Trade in I ndia since 2000

Trade refers to buying and selling of goods and services for money or money's worth. It involves
transfer or exchange of goods and services for money or money's worth. The manufacturers or
producer produces the goods, then moves on to the wholesaler, then to retailer and finally to the
ultimate consumer.
Trade is essential for satisfaction of human wants, Trade is conducted not only for the sake of
earning profit; it also provides service to the consumers. Trade is an important social activity
because the society needs uninterrupted supply of goods forever increasing and ever changing
but never ending human wants. Trade has taken birth with the beginning of human life and shall
continue as long as human life exists on the earth. It enhances the standard of living of
consumers. Thus we can say that trade is a very important social activity.
Foreign trade is exchange of capital, goods, and services across international borders or
territories. In most countries, it represents a significant share of gross domestic product (GDP).
While international trade has been present throughout much of history, its economic, social, and
political importance has been on the rise in recent centuries.
All countries need goods and services to satisfy wants of their people. Production of goods and
services requires resources. Every country has only limited resources. No country can produce
all the goods and services that it requires. It has to buy from other countries what it cannot
produce or can produce less than its requirements. Similarly, it sells to other countries the goods
which it has in surplus quantities. India too, buys from and sells to other countries various types
of goods and services.
Generally no country is self-sufficient. It has to depend upon other countries for importing the
goods which are either non-available with it or are available in insufficient quantities. Similarly,
it can export goods, which are in excess quantity with it and are in high demand outside.
International trade means trade between the two or more countries. International trade involves
different currencies of different countries and is regulated by laws, rules and regulations of the
concerned countries. Thus, International trade is more complex.
According to Wasserman and Haltman, International trade consists of transaction between
residents of different countries.
According to Anatol Marad, International trade is a trade between nations.
According to Eugeworth, International trade means trade between nations.
Industrialization, advanced transportation, globalization, multinational corporations, and
outsourcing are all having a major impact on the international trade system. Increasing
international trade is crucial to the continuance of globalization. Without international trade,
nations would be limited to the goods and services produced within their own borders.
International trade is in principle not different from domestic trade as the motivation and the
behaviour of parties involved in a trade do not change fundamentally regardless of whether trade


is across a border or not. The main difference is that international trade is typically more costly
than domestic trade.
The reason is that a border typically imposes additional costs such as tariffs, time costs due to
border delays and costs associated with country differences such as language, the legal system or
culture. International trade consists of export trade and import trade. Export involves sale of
goods and services to other countries. Import consists of purchases from other countries.
International or Foreign trade is recognized as the most significant determinants of economic
development of a country, all over the world. The foreign trade of a country consists of inward
(import) and outward (export) movement of goods and services, which results into. outflow and
inflow of foreign exchange. Thus it is also called EXIM Trade.
For providing, regulating and creating necessary environment for its orderly growth, several Acts
have been put in place. The foreign trade of India is governed by the Foreign Trade
(Development & Regulation) Act, 1992 and the rules and orders issued there under. Payments
for import and export transactions are governed by Foreign Exchange Management Act, 1999.
Customs Act, 1962 governs the physical movement of goods and services through various modes
of transportation.
To make India a quality producer and exporter of goods and services, apart from projecting such
image, an important Act Exports (Quality control & inspection) Act, 1963 has been in vogue.
Developmental pace of foreign trade is dependent on the Export-Import Policy adopted by the
country too. Even the EXIM Policy 2002-2007 lays its stress to simplify procedures, sharply, to
further reduce transaction costs.
Trade can be divided into following two types:-
1. Internal Trade
Internal trade is also known as Home trade. It is conducted within the political and geographical
boundaries of a country. It can be at local level, regional level or national level. Hence trade
carried on among traders of Delhi, Mumbai, etc. is called home trade.
Internal trade can be further sub-divided into two groups, viz.
Wholesale Trade: It involves buying in large quantities from producers or manufacturers and
selling in lots to retailers for resale to consumers. The wholesaler is a link between manufacturer
and retailer. A wholesaler occupies prominent position since manufacturers as well as retailers
both are dependent upon him. Wholesaler act as an intermediary between producers and retailers.
Retail Trade: It involves buying in smaller lots from the wholesalers and selling in very small
quantities to the consumers for personal use. The retailer is the last link in the chain of
distribution. He establishes a link between wholesalers and consumers. There are different types
of retailers small as well as large. Small scale retailers include hawkers, pedlars, general shops,
etc.
2. External Trade


External trade also called as Foreign trade. It refers to buying and selling between two or more
countries. For instance, If Mr. who is a trader from Mumbai, sells his goods to Mr. another trader
from New York then this is an example of foreign trade.
External trade can be further sub-divided into three groups.
Export Trade: When a trader from home country sells his goods to a trader located in another
country, it is called export trade. For e.g. a trader from India sells his goods to a trader located in
China.
I mport Trade: When a trader in home country obtains or purchase goods from a trader located in
another country, it is called import trade. For e.g. a trader from India purchase goods from a
trader located in China.
Entrepot Trade: When goods are imported from one country and then re-exported after doing
some processing, it is called entrepot trade. In brief, it can be also called as re-export of
processed imported goods. For e.g. an Indian trader (from India) purchase some raw material or
spare parts from a Japanese trader (from Japan), then assembles it i.e. convert into finished goods
and then re-export to an American trader (in U.S.A).
BALANCE OF TRADE
The difference between the value of goods and services exported out of a country and the value
of goods and services imported into the country. The balance of trade is the official term for net
exports that makes up the balance of payments. The balance of trade can be a "favorable" surplus
(exports exceed imports) or an "unfavorable" deficit (imports exceed exports). The official
balance of trade is separated into the balance of merchandise trade for tangible goods and the
balance of services....

A balance of trade surplus is most favorable to domestic producers responsible for the exports.
However, this is also likely to be unfavorable to domestic consumers of the exports who pay
higher prices.

Alternatively, a balance of trade deficit is most unfavorable to domestic producers in competition
with the imports, but it can also be favorable to domestic consumers of the exports who pay
lower prices.

Need and Importance of Foreign Trade
Following points explain the need and importance of foreign trade to a nation.
1. Division of labour and specialization
Foreign trade leads to division of labour and specialization at the world level. Some countries
have abundant natural resources. They should export raw materials and import finished goods
from countries which are advanced in skilled manpower. This gives benefits to all the countries
and thereby leading to division of labour and specialization.


2. Optimum allocation and utilization of resources
Due to specialization, unproductive lines can be eliminated and wastage of resources avoided. In
other words, resources are channelized for the production of only those goods which would give
highest returns. Thus there is rational allocation and utilization of resources at the international
level due to foreign trade.
3. Equality of prices
Prices can be stabilized by foreign trade. It helps to keep the demand and supply position stable,
which in turn stabilizes the prices, making allowances for transport and other marketing
expenses.
4. Availability of multiple choices
Foreign trade helps in providing a better choice to the consumers. It helps in making available
new varieties to consumers all over the world.
5. Ensures quality and standard goods
Foreign trade is highly competitive. To maintain and increase the demand for goods, the
exporting countries have to keep up the quality of goods. Thus quality and standardized goods
are produced.
6. Raises standard of living of the people
Imports can facilitate standard of living of the people. This is because people can have a choice
of new and better varieties of goods and services. By consuming new and better varieties of
goods, people can improve their standard of living.
7. Generate employment opportunities
Foreign trade helps in generating employment opportunities, by increasing the mobility of labour
and resources. It generates direct employment in import sector and indirect employment in other
sector of the economy. Such as Industry, Service Sector (insurance, banking, transport,
communication), etc.
8. Facilitate economic development
Imports facilitate economic development of a nation. This is because with the import of capital
goods and technology, a country can generate growth in all sectors of the economy, i.e.
agriculture, industry and service sector.
9. Assistance during natural calamities
During natural calamities such as earthquakes, floods, famines, etc., the affected countries face
the problem of shortage of essential goods. Foreign trade enables a country to import food grains
and medicines from other countries to help the affected people.
10. Maintains balance of payment position


Every country has to maintain its balance of payment position. Since, every country has to
import, which results in outflow of foreign exchange, it also deals in export for the inflow of
foreign exchange.
11. Brings reputation and helps earn goodwill
A country which is involved in exports earns goodwill in the international market. For e.g. Japan
has earned a lot of goodwill in foreign markets due to its exports of quality electronic goods.
12. Promotes World Peace
Foreign trade brings countries closer. It facilitates transfer of technology and other assistance
from developed countries to developing countries. It brings different countries closer due to
economic relations arising out of trade agreements. Thus, foreign trade creates a friendly
atmosphere for avoiding wars and conflicts. It promotes world peace as such countries try to
maintain friendly relations among themselves.
Documents used in foreign trade transactions
The documents are related to either export trade or import trade
1. I ndent
Indent is an order placed by the importers to the exports. It contains the essential information
regarding the goods to be imported i.e. quality, quantity, packing, packaging, mode of payment,
insurance, price of good, etc.
When the price at which the goods are to be purchased by the importer is clearly stated in an
order (Indent), with no options to the exporter, then it called "Closed Indent".
If the prices are not mentioned by the importer and it is left to the discretion of the exporter, then
it is known as "Open Indent".
Indent can be sent by the importer directly to the exporter or it may be sent through the indent
agencies.
2. Mate's Receipt
Mate's Receipt is a receipt issued by Captain / Master / Mate of the ship.
The Mate of the ship after receiving the goods on the board and after inspection of the goods
issues this receipt.
The loading of the goods on the ship is possible only after presentation of 'shipping order'. Mate's
receipt contains details regarding name of ship, date on which the goods are loaded, description
of goods, numbers and marks on the packages, conditions of cargo, etc. This receipt is issued to
the exporter who has to present the mate's receipt in the office of shipping company by which he
will get bill of lading. Mate Receipt may be clean or qualified. It is qualified if there is some
defect in the cargo loaded on the ship, in such case the captain makes adverse remark on the
receipt. In case of clean receipt, the cargo in good condition and the adverse remark is not


mentioned. The bill of lading is always prepared on the basis of mate's receipt. In short mate's
receipt is an acknowledgement of the receipt of goods on board of the ship.
3. Bill of Lading
Bill of lading is one important shipping document necessary and useful in export-import trade
transactions. It is a document issued by the shipping company after the shipment of goods. In
simple, Bill of lading is a contract between the exporter or the shipper and the shipping company
for the carriage of goods from the port of loading to the port of destination.
Bill of lading is a document to title of goods and is transferable by endorsement and delivery.
Hence, it is a semi-negotiable instrument. The bill of lading is prepared on the basis of mate's
receipt. The importer has to produce this receipt for securing the delivery of goods.
The bill of lading contains following information:-
Name and address of the exporter and the shipper.
Name and address of shipping company.
Name and address of importer or agent.
Quantity, weight and value of goods sent.
Place of loading and port of destination.
Date of loading of goods on the ship.
Mark description and number of packages.
Port at which the goods are to be discharged.
Freight paid or to be paid.
Signature of the issuing authority with date.
Any other relevant details.
Important functions of bill of lading are as follows:-
It is useful to the importer for obtaining delivery of goods from the shipping company
and port authorities.
It is a document of title to goods. A possessor of the bill of lading is entitled to take the
delivery of goods.
It is a semi negotiable document and it is transferable by endorsement and delivery.
It is a legal document including the contract for carrying goods.
It is a proof of the fact that the goods are handed over to the shipping company for
transportation to the port of destination.
4. Letter of Credit
Letter of Credit is an important document in international trade. It is for safety and security of the
exporter as regards payment for the goods to be exported.
Letter of Credit can be defined as "an undertaking by importer's bank stating that payment will
be made to the exporter if the required documents are presented to the bank".
Before executing an export order, the exporter of goods desires to have adequate proof regarding
the credit worthiness of the importer. It is issued by the bank (in the importer's country) in favour


of the foreign supplier, it contains a guarantee or an undertaking by one bank that the bill of
exchange drawn on the importer will be honored on presentation to the extent of the amount
specified in the letter. Letter of Credit may also be issued on the strength of the business of the
importer with the bank.
The Letter of Credit also contains certain conditions such as date of bill, date for shipment,
shipment by approved vessels with approved flags packing, etc.
The advantages of the letter of credit to the exporters are many such as :-
Exporter gets safety and security of payment for the goods exported.
The exporter gets discounting facility from the bank.
It enables the exporter to take more initiative in promoting exports and earns foreign
exchange for his country.
5. Certificate of Origin
Certificate of Origin is an important shipping document sent by the exporter along with the other
document to the importer. This document is showing or giving the information of the fact that
the goods which are exported are manufactured in a particular country i.e. the document certifies
that certain goods are manufactured within a specific country only. It is a proof about the origin
of goods exported. This certificate is generally issued by the "Chamber of Commerce" or
"Export Promotion Council" or "Trade Association" or "Such Other recognized body" on behalf
of Government. It is issued to the exporter. It is very useful document to save custom/import
duties. As a general rule the rate of import duty is not same for imports from all countries. The
goods imported from some other countries are subject to less import duty. Thus, to get the
benefit of saving import duty the importer can use the Certificate of Origin, because the
government of importing country grants concession in import duty to the importer on the basis of
certificate of origin.
6. Consular Invoice
Consular Invoice is an important document used in foreign trade. It is issued by the Trade
consulate of the importing country stationed in the exporters country. Consular is a government
officer having office in other countries. This document is also obtained by the exporter and is
sent to the importer along with other shipping documents. This invoice is also useful for importer
at the time of payment of importy duty. For obtaining document from the consular the exporter
has to pay the prescribed fees. This document contains information about goods and the value of
goods.
Sometimes, the custom authorities desire to open the packages and scrutinize the goods for the
purpose of calculating custom duty. Due to which there is delay in clearing the goods from dock
or port. To avoid this, one copy is sent to the custom authorities of the importing country, second
copy is retained by the consulate office for reference and the third copy is given to the exporter
which is forwarded by exporter to the importer with other documents.
7. Bill of Entry


Bill of entry is a document required in case of import of goods. It is like shipping bill in case of
exports. A Bill of Entry is the document testifying the fact that goods of the stated value and
description in specified quantity are entering into the country from abroad. The customs office
supplies this form which is prepared in triplicate. Three different colours are used to prepare bill
of entry. One copy is retained by custom department, other is retained by port trust and the third
is kept by the importer.
The bill of entry is divided into three classes:-
Entry for duty free goods.
Entry of goods which are meant for consumption at home.
Entry for goods to be re-exported.
In India, all these entries are on the same form.
The contents of Bill of Entry are :-
Name and address of importer.
Import License number of importer.
Name and address of exporter.
Name of port where goods are to be cleared.
Value of goods.
Description of goods.
Rate and amount of import duty payable.
Other relevant details.
8. Dock's Receipt
Dock authorities issue dock's receipt once the goods are stored in the sheds at the docks. The
Clearing and Forwarding agent clears the documents from the customs authorities. Then he
approaches the Port Trust authorities and obtains the Carting Order. The Carting Order is the
permission to cart the goods inside the docks. The goods are then brought inside the docks. The
goods may be loaded immediately on the ship. Many-a-times immediate loading on ship is not
possible. The goods are then stored in sheds at the port or docks. The dock authorities then issues
the dock receipt as an acknowledgement for goods received in sheds.
9. Commercial I nvoice
Commercial invoice is a basic export document. It contains all the information, which is required
for preparation of all other documents. It is the exporter's bill for goods which the importer has to
pay.
Commercial invoice contains the following information :-
Name and address of exporter and importer.
Description of goods (weight, quality, quantity, rate, etc.)
Value of goods after discount, if any.
Net amount payable by the importer.
Terms and Conditions of sale
Other details of shipment to be included are :-
Name of ship on which goods are loaded.
Letter of Credit Number.


License number of exporter.
Bill of lading number.
Packaging Specifications.
Shipping terms and Conditions, etc.
8 Salient Features of Foreign Trade of India
1. Negative or unfavourable Trade
India had to import various items like heavy machinery, agricultural implements, mineral oil and
metals on a large scale after Independence for economic growth.
But our exports could not keep pace with our imports which left us with negative or
unfavourable trade.
2. Diversity in Exports
Previously, India used to export its traditional commodities only which included tea, jute, cotton
textile, leather, etc. But great diversity has been observed in Indias export commodities during
the last few years. India now exports over 7,500 commodities. Since 1991, India has emerged as
a major exporter of computer software and that too to some of the advanced countries like the
USA and Japan.
3. Worldwide Trade:
India had trade links with Britain and a few selected countries only before Independence. But
now India has trade links with almost all the regions of the world. India exports its goods to as
many as 190 countries and imports from 140 countries.
4. Change in Imports
Earlier we used to import food-grains and manufactured goods only. But now oil is the largest
single commodity imported by India. Both the imports as well as exports of pearls and precious
stones have increased considerably during the last few years. Our other important commodities
of import are iron and steel, fertilizers, edible oils and paper.
5. Maritime Trade
About 95 per cent of our foreign trade is done through sea routes. Trade through land routes is
possible with neighbouring countries only. But unfortunately, all our neighbouring countries
including China, Nepal, and Myanmar are cut off from India by lofty mountain ranges which
make trade by land routes rather difficult. We can have easy access through land routes with
Pakistan only but the trade suffered heavily due to political differences between the two
countries.
6. Trade through a few Selected Ports Only
We have only 12 major ports along the coast of India which handle about 90 per cent overseas
trade of India. Very small amount of foreign trade is handled by the remaining medium and
small ports.


7. I nsignificant Place of I ndia in the World Overseas Trade
Although India has about 16 per cent of the worlds population, her share in the world overseas
trade is less than one per cent. This shows the insignificant place of India in the worlds overseas
trade. This is, however, partly due to very large internal trade, vast dimensions of the country
provide a solid base for inter-state trade within the country. Europe is divided into a large
number of smaller countries and the international trade is quite high (trade counted twice, first
time as exports and second times as imports).
8. State Trading
Most of Indias overseas trade is done in public sector by state agencies and very little trade is
done by individuals.
8 Benefits of International Trade - Export Management
International trade allows countries to exchange good and services with the use of money as a
medium of exchange. The benefits of international trade have been the major drivers of growth
for the last half of the 20
th
century.
Nations with strong international trade have become prosperous and have the power to control
the world economy. The global trade can become one of the major contributors to the reduction
of poverty.
Several benefits that can be identified with reference to international trade are as follows:
1) Greater Variety of Goods Available for Consumption
International trade brings in different varieties of a particular product from different destinations.
This gives consumers a wider array of choices which will not only improve their quality of life
but as a whole it will help the country grow.
2) Efficient Allocation and Better Utilization of Resources
Efficient allocation and better utilization of resources since countries tend to produce goods in
which they have a comparative advantage. When countries produce through comparative
advantage, wasteful duplication of resources is prevented. It helps save the environment from
harmful gases being leaked into the atmosphere and also provides countries with a better
marketing power.
3) Promotes Efficiency in Production
International trade promotes efficiency in production as countries will try to adopt better
methods of production to keep costs down in order to remain competitive. Countries that can
produce a product at me lowest possible cost will be able to gain larger share in the market.
Therefore an incentive to produce efficiently arises. This will help to increase the standards of
the product and consumers will have a good quality product to consume.
4) More Employment


More employment could be generated as the market for the countries goods widens through
trade. International trade helps generate more employment through the establishment of newer
industries to cater to the demands of various countries. This will help countries to bring-down
their unemployment rates.
5) Consumption at Cheaper Cost
International trade enables a country to consume things which either cannot be produced within
its borders or production may cost very high. Therefore it becomes cost cheaper to import from
other countries through foreign trade.
6) Reduces Trade Fluctuations
By making the size of the market large with large supplies and extensive demand international
trade reduces trade fluctuations. The prices of goods tend to remain more stable.
7) Utilization of Surplus Produce
International trade enables different countries to sell their surplus products to other countries and
earn foreign exchange.
8) Fosters Peace and Goodwill
International trade fosters peace, goodwill, and mutual understanding among nations. Economic
interdependence of countries often leads to close cultural relationship and thus avoid war
between them.
8 Major Limitations of Foreign Trade
1) Rapid Depletion of Exhaustible Natural Resources
It could lead to a more rapid depletion of exhaustible natural resources.
As countries begin to up their production levels, natural resources tend to get depleted with the
time and it could pose a dangerous threat to the future generation.
2) I mport of Harmful Goods
Foreign trade may lead to import of harmful goods like cigarettes, drugs, etc., which may harm
the health of the residents of the country. For example, the people of China suffered greatly
through opium imports.
3) I t may Exhaust Resources
International trade leads to intensive cultivation of land. Thus, it has the operations of law of
diminishing returns in agricultural countries. It also makes a nation poor by giving too much
burden over the resources.
4) Over Specialization
Over specialization may be disastrous for a country. A substitute may appear and ruin the
economic lives of millions.


5) Danger of Starvation
A country might depend for its food mainly on foreign countries. In times of war, there is a
serious danger of starvation for such countries.
6) One Country Gains at the Expense of Other
One of the serious drawbacks of foreign trade is that one country may gain at the expense of
other due to certain accidental advantages. For example, the Industrial revolution is Great Britain
ruined Indian handicrafts during the nineteenth century.
7) May Lead to War
Foreign trade may lead to war different countries compete with each other in finding out new
markets and sources of raw material for their industries and frequently come into clash. This was
one of the causes of first and Second World War.
8) Language Diversity
Each country has its own language. As foreign trade involves trade between two or more
countries, there is diversity of languages. This difference in language creates problem in foreign
trade.
The Composition of Indias Foreign Trade
Composition of foreign Indian foreign trade means major commodity or sectors in which India is
doing export and import. India is a very old participant in world trade. Its participation have been
promoted by the opening of Suez Canal and speedy development of the ship building industry
supplemented by the spread of industrial revolution in Europe and fast expansion of Indian
railways.
Indias merchandise exports reached a level of U.S. $185.3 billion during 2008-09 registering a
growth of 13.6 per cent as compared to a growth of 29.1 per cent during the previous year.
Notwithstanding the deceleration of the growth in 2008-09, Indias export-sector has exhibited
remarkable resilience and dynamism in the recent years. Our merchandise exports recorded an
Average Annual Growth Rate (AAGR) of 23.9 per cent during the five year period from 2004-05
to 2008-09, as compared to the preceding five years when the exports increased by a lower
AAGR of 14.3 per cent. According to latest WTO data (2009), Indias share in the world
merchandise exports increased from 0.8 per cent in 2004 to 1.1 per cent in 2008. India also
improved its ranking in the leading exporters in world merchandise trade from 30th in 2004 to
27th in 2008.
The government had initially set an export target of U.S. $200 billion for 2008-09, which was
later revised downward to U.S. $175 billion because of global slowdown in the second half of
the year. With merchandise exports reaching U.S. $185.3 billion in 2008-09, the actual exports
exceeded the target by 5.9 per cent which is a remarkable achievement during a period of
recession in countries of Indias major export destinations.
Exports recorded high growth during the first half of 2008-09 although a deceleration was
witnessed during the subsequent months due to global economic slowdown. During 2008-09


(April-September) exports grew by 48.1 per cent with almost all the major commodity groups,
except marine products, handicrafts recording significant growth.
In the second half of the year 2008-09 (October-March), exports declined by (-) 14.7 per cent
with almost all the major commodity groups, except gems and jeweler, RMG, electronic goods,
recording significant negative growth. Commodities like engineering goods, other basic
chemicals, man-made yarn, leather and leather manufacturers, and spices which recorded overall
positive growth during the year, as a whole, also recorded negative growth during the second
half. However, despite the significant decline in the second half of the 2008-09, exports
registered an overall growth of 13.6 per cent for the year.
Cumulative imports during 2008-09 was U.S. $303.7 billion as against U.S. $251.6 billion
during the corresponding period of the previous year registering a growth of 20.7 per cent in $
terms. Oil imports were valued at U.S. $93.7 billion which was 17.4 per cent higher than oil
imports valued U.S. $79.8 billion in the corresponding period or previous year. Non-oil imports
valued U.S. $210.0 billion which was 22.2 per cent higher than non-oil imports of U.S. $171.8
billion in previous year.

Exports by Principal Commodities
Disaggregated data on exports by principal commodities, in $ terms, is available for the period
2009-10 (April-September) as compared with the corresponding period of the previous year.
Exports during the period registered a decline of (-) 29.67 per cent mainly due to significant fall
in the exports of engineering goods, gems and jewelry, petroleum products, agriculture and allied
products, chemical and related products and ores and minerals.
1) Plantation Crops
Export of plantation crops during 2009-10 (April-September), decreased by 25.8 per cent in U.S.
$ terms compared with the corresponding period of the previous year. Export of Coffee
registered a negative growth of 34.6 per cent, the value increasing from U.S. $610.1 million to
U.S. $452.4 million. Export of Tea also decreased by 17.7 per cent.
2) Agriculture and Allied Products
Agriculture and allied products as a group include cereals, pulses, tobacco, spices, nuts and
seeds, oil meals, guar gum meals, castor oil, shellac, sugar and molasses, processed food, meat
and meat products, etc. During 2009-10 (April-September), exports of commodities under this
group registered a negative growth of 34.1 per cent with the value of exports falling from U.S.
$8,613.8 million in the previous year to U.S. $5,675.2 million during the current year.
3) Ores and Minerals


Exports of ores and minerals were estimated at U.S. $2,884.1 million during 2009-10 (April-
September) registering a negative growth of 35.5 per cent over the same period of the previous
year. Sub-groups, viz., processed minerals, has recorded a negative growth of 28.9 per cent and
coal a positive growth of 40.4 per cent respectively. Mica has registered negative growth of 27.7
per cent.
4) Leather and Leather Manufactures
Export of leather and leather manufactures recorded a negative growth of 24.0 per cent during
2009-10 (April-Sep Figure 3.3: Growth (In U.S. S Terms) of Top Five Commodity Groups in
Indias Exports: 2008-09 and 2009-10 (Apr-September). The value of exports decreased to U.S.
$1,531.0 million from U.S. $2,013.0 million during the same period of the previous year.
Exports of leather and manufactures have registered a negative growth of 28.5 per cent and
leather footwear also registered a negative growth of 18.2 per cent.
5) Gems and J ewelry
The export of gems and jewelry during 2009-10 (April-September) decreased to U.S. $13,608.4
million from U.S. $17,387.7 million during the corresponding period of last year showing a
negative growth of 21.7 per cent.
6) Chemical and Related Products
During the period 2009-10 (April-September), the value of exports of chemicals and allied
products decreased to U.S. $10,550.0 million from U.S. $13,228.1 million during the same
period of the previous year registering a negative growth of 20.2 per cent. Rubber, glass and
other products; residual chemicals and allied products and basic chemicals, pharmaceuticals and
cosmetics and plastic and linoleum have also registered a negative growth.
7) Engineering Goods
Items under this group consist of machinery, Iron and Steel and other engineering items. Export
from this sector during the period 2009-10 (April-September) stood at U.S. $15,143.7 million
compared with U.S. $23,214.0 million during the same period of the previous year, registering a
negative growth of 34.8 per cent. Export of machine tools and transport equipments have
registered negative growth of 42.6 and 19.1 per cent respectively.
8) Electronic Goods
During the period 2009-10 (April-September), exports of electronic goods as a group were
estimated at U.S. $3,086.8 million compared with U.S. $3,828.2 million during the
corresponding period of last year, registering a negative growth of 19.4 per cent.
9) Textiles


During the period 2009-10 (April-September), the value of textiles exports was estimated at U.S.
$8,657.3 million compared with U.S. $10,151.5 million in the corresponding period of the
previous year, recording a negative growth of 14.7 per cent. The export of Natural Silk Textiles
registered a negative growth of 31.0 per cent and man-made textiles and made-ups, has shown a
positive growth of 2.4 per cent.
10) Handicrafts and Carpets
Exports of handicrafts declined to U.S. $94.6 million during 2009-10 (April-September), from
U.S. $167.2 million during the corresponding period of the previous year registering a negative
growth of 43.4 per cent. Export of carpets increased marginally to U.S. $437.8 million from U.S.
$427.9 million during the same period last year registering a positive growth of 2.3 per cent.
11) Project Goods
During 2009-10 (April-September), the export of project goods were estimated at U.S. $63.5
million compared with U.S. $118.6 million during the corresponding period of last year
registering a negative growth of 46.4 per cent.
12) Petroleum Products
Export of petroleum products decreased to U.S. $10,579.8 million during 2009-10 (April-
September), as compared with U.S. $18,721.4 million during the same period of last year
recording a negative growth of 43.5 per cent.
13) Cotton Raw Including Waste
There was a negative growth in the exports of cotton raw including waste by 35.3 per cent from
U.S. $400.3 million in 2008-09 (April-September) to U.S. $259.0 million during 2009-10 (April-
September).
Imports by Principal Commodities
Disaggregated data on imports by principal commodities, in $ terms, is available for the period
2009-10 (April-September), as compared to the corresponding period of the previous year.
Imports during the period registered a decline of (-) 23.7 per cent due to a significant fall in the
import of commodities such as Petroleum crude and products, gold, electronics goods,
machinery (except electrical and electronics) and Pearls Precious and semi-precious stones, etc.
1) Fertilizers
During 2009-10 (April-September), import of Fertilizers (manufactured) decreased to U.S.
$2781.0 million from U.S. $6947.0 million in April-September 2008 recording a negative growth
of 60.0 per cent.
2) Petroleum Crude and Products


The import of petroleum crude and products stood at U.S. $37386.3 million during April-
September, 2009 against U.S. $63284.7 million during the same period of the previous year
registering a negative growth of 41.0 per cent.
3) Pearls, Precious, and Semi-Precious Stones
Import of pearls, and precious and semi-precious stones during 2009-10 (April- September)
decreased to U.S. $5430.1 million from U.S. $10430.1 million during the corresponding period
of the previous year registering a negative growth of 48.0 per cent.
4) Capital Goods
Import of capital goods, largely comprises of machinery, including transport equipment and
electrical machinery. Import of machine tools, non-electrical machinery, electrical machinery
and transport equipment registered a negative growth of 41.1 per cent, 22.6 per cent, 29.2 per
cent, and 57.3 per cent respectively.
5) Organic and I norganic Chemicals
During 2009-10 (April- September), import of organic and inorganic chemicals decreased to
U.S. $5628.6 million from U.S. $7644.5 million during the same period of last year, registering a
negative growth of 26.4 per cent. Import of medicinal and pharmaceutical products decreased to
U.S. $985.3 million from U.S. $1021.3 million during the corresponding period of last year
registering a negative growth of 3.5 per cent.

Foreign Trade Performance of India
Indias Exports, Imports and Balance of Trade

The global slowdown had its impact on the economy of almost all the countries, including India.
The trade deficit abruptly increased from 356448 crores in 2007-08 to 533681 crores in 2008-
09, an increase by almost 50 %. However, it was less by 2.9 % in 2009-10, to be increased again
by 4.3 % in 2010-11. As such Indias trade deficit stood at Rs. 518202 crores during 2009-
10 with values of exports and imports at Rs. 845534 crores and Rs. 1363736 crores respectively.
However, as may be seen from Table 3.1 below that the position was different in 2010-11 as the
trade deficit had increased to Rs. 540545 crores with values of exports and imports as Rs.
1142922 crores and Rs. 1683467 crores respectively.



















Table 3.1: India's Exports, Imports, and Balance of Trade from 2000-01 to 2010-11
Year Value In Rs. '00 Crores Percentage Growth
Exports Imports Balance Exports Imports Balance
Of Trade Of Trade

2000-01 2035.71 2308.73 -273.02 27.58 7.26 -50.97
2001-02 2090.18 2452.00 -361.82 2.68 6.21 32.53
2002-03 2551.37 2972.06 -420.69 22.06 21.21 16.27
2003-04 2933.67 3591.08 -657.41 14.98 20.83 56.27
2004-05 3753.40 5010.65 -1257.25 27.94 39.53 91.24
2005-06 4564.18 6604.09 -2039.91 21.60 31.80 62.25


2006-07 5717.79 8405.06 -2687.27 25.28 27.27 31.73
2007-08 6558.64 10123.12 -3564.48 14.71 20.44 32.64
2008-09 8407.55 13744.36 -5336.81 28.19 35.77 49.72
2009-10 8455.34 13637.36 -5182.02 0.57 -0.78 -2.90
2010-11 11429.22 16834.67 -5405.45 35.17 23.45 4.31





Indias imports in 2010-11 was Rs. 1683467 crores compared to Rs. 1363736 crores
in 2009-10, resulting in a positive growth of import (23.45%), although it was negative growth (
0.78%) during 2009- 10. Along with this positive growth in imports, the exports also grew
significantly (35.17%) during 2010- 11 compared to insignificant growth of 0.57% in 2009-10.






Indias Export performance
Indias merchandise exports stood at Rs. 1142922 crores in 2010-11 as compared to Rs.845534
crores during 2009-10, resulting in a growth of 35.17% in 2010-11.The corresponding growth of
0.57% in 2009-10indicating that there was more impact of global recess/slowdown on Indias
economy in the initial year.


Major Export Destinations
The most important destination of Indias exports was UAE during the year 2010-11. In fact
UAE has been the topmost export destination for the last three years with more than 13% share
in each year. In terms of value, Indias exports to UAE exceeded one lakh crores during these
three years with Rs. 153866 crores in2010-11. Closely following UAE was USA, for which the
exports value stood at Rs. 115212 in 2010-11 with percentage share more than 10% during last
five (5) years. In fact USA was the topmost export destination prior to UAE. The shares of
export values to the total exports for both these countries were more than 23 % in 2010- 11 and
the next highest share was that of China RP (6.47 %). However, in terms of annual growth rates,
the exports to these top two countries, i.e. UAE and USA are quite significant. The exports to
UAE grew by 35.75 % in 2010-11 as compared to insignificant growth (2.83 %) in 2009-
10. This was because, in 2008-09, the growth was substantial (75.20%). The growth of exports to
USA was 25.93 % in 2010-11 although it was negative growth (4.19 %) in 2009-10 (Table
3.2A). The percentage shares of exports in the total exports to these top two countries, i.e., UAE
and USA, during the last five years from 2006-07 to 2010-11 are very contrasting. While the
shares of exports to UAE were increasing over the years, those of USA were decreasing during
these years, as may be seen from Table 3.2A. From 2006-07 to 2007-08, USA was the top
destination country for exports and UAE was in the second position. But, from 2008-09 to 2010-
11, their positions have changed, thus UAE has replaced USA at the top. However, the third
positioned destination country, i.e., China RP was consistent in terms of shares (between 5 to 7
%) of exports in the total exports during these years. In terms of shares of exports, the next two
top destination countries after UAE, USA, and China RP, are Hong Kong and Singapore. While
the shares of exports to Hong Kong during these years, i.e., from 2006-07 to 2010-11 were
around 4%, those of exports to Singapore were consistently decreasing. Among the top 20
Export destinations, the growth of exports in 2010-11 was highest (83.41 %) for South Africa
followed by Indonesia (77.51 %), Brazil (61.34%), Sri Lanka (55.13 %), Belgium (48.38 %), etc.
(Table 3.2A).



Values in Rs. Crores % share to total Export Percentage Growth



Table 3.2A India's Export to some important countries during the period from 2006-07 to 2010-11










Major Exports
Table 3.3 gives the export values of major items during 2006-07 to 2010-11. The most important
item group exported by India in 2010-11 was Engineering goods with value of exports more
than 2.27 lakh crores and accounting for 19.84 % of Indias total exports. The export of
Country
2006- 2007- 2008- 2009- 2010- 2007- 2008- 2009- 2010-
2006-07 2007-08 2008-09 2009-10 2010-11 07 08 09 10 11 08 09 10 11
U ARAB EMTS 54445 62915 110229 113348 153866 9.52 9.59 13.11 13.41 13.46 15.56 75.20 2.83 35.75
U S A 85368 83388 96458 92417 115212 14.93 12.71 11.47 10.93 10.08 -2.32 15.67 -4.19 24.67
CHINA P RP 37530 43597 42661 54714 70414 6.56 6.65 5.07 6.47 6.16 16.17 -2.15 28.25 28.69
HONG KONG 21179 25385 30391 37301 47038 3.70 3.87 3.61 4.41 4.12 19.86 19.72 22.74 26.11
SINGAPORE 27462 29662 37757 35948 44732 4.80 4.52 4.49 4.25 3.91 8.01 27.29 -4.79 24.43
NETHERLAND 12082 21038 28890 30301 34967 2.11 3.21 3.44 3.58 3.06 74.12 37.32 4.88 15.40
U K 25421 26967 30345 29476 33296 4.45 4.11 3.61 3.49 2.91 6.08 12.52 -2.86 12.96
GERMANY 18007 20599 29195 25633 30733 3.15 3.14 3.47 3.03 2.69 14.39 41.73 -12.20 19.90
BELGIUM 15722 16943 20309 17757 26347 2.75 2.58 2.42 2.10 2.31 7.77 19.87 -12.57 48.38
INDONESIA 9177 8693 11578 14605 25925 1.60 1.33 1.38 1.73 2.27 -5.28 33.19 26.14 77.51
FRANCE 9506 10454 13777 17999 23688 1.66 1.59 1.64 2.13 2.07 9.97 31.78 30.65 31.60
JAPAN 12954 15516 13808 17143 23183 2.27 2.37 1.64 2.03 2.03 19.78 -11.01 24.15 35.24
SAUDI ARAB 11711 14923 22940 18552 21296 2.05 2.28 2.73 2.19 1.86 27.42 53.73 -19.13 14.79
ITALY 16212 15748 17365 16072 20702 2.84 2.40 2.07 1.90 1.81 -2.86 10.27 -7.44 28.81
BRAZIL 6577 10132 11874 11365 18336 1.15 1.54 1.41 1.34 1.60 54.05 17.20 -4.29 61.34
SOUTH AFRICA 10165 10699 8994 9751 17885 1.78 1.63 1.07 1.15 1.56 5.25 -15.93 8.42 83.41
MALAYSIA 5902 10337 15780 13504 17677 1.03 1.58 1.88 1.60 1.55 75.15 52.65 -14.43 30.90
KOREA RP 11379 11482 18354 16127 16965 1.99 1.75 2.18 1.91 1.48 0.90 59.85 -12.13 5.20
SRI LANKA DSR 10206 11374 10895 10290 15962 1.79 1.73 1.30 1.22 1.40 11.44 -4.21 -5.56 55.13
BANGLADESH
PR 7366 11743 11317 11501 14753 1.29 1.79 1.35 1.36 1.29 59.43 -3.63 1.62 28.27
Total Exports 571779 655864 840755 845534 1142922 100.00 100.00 100.00 100.00 100.00 14.71 28.19 0.57
35.17



engineering goods during this period has increased by 46.97 %, as compared to 2009-10 when it
was negative growth ( 16.13%) at Rs.154320 crores. The main markets for these items are
developed countries and emerging economies like China. It is heartening to learn that Indias
exports of these sophisticated manufactured items to major economies have gone up substantially
in recent years. This indicates the newly gained maturity of Indias manufacturing base.
An obvious development in the field of exports is the recent surge in exports of petroleum
products. The share of this group in Indias export basket has gone up from 14.78 % in 2006-
07 to as much as 17.41% in 2007- 08, making it the second most important export item group.
After 2007-08 it showed a decrease in terms of its share in total exports to 14.68% in 2008-
09 but recorded increases in 2009-10 (15.72 %) and 2010-11 (16.52%). In terms of export
growth over the previous year, petroleum products recorded maximum growth in 2010-
11(42.05%) and the second most growth in 20007-08 (35.11 %). In between the growths were
8.06 % in2008-09 and 7.70% in 2009-10. The major export destinations for this commodity
include some oil-producing countries like Iran, UAE and Indonesia. The countries like
Singapore, Netherlands, Brazil and Sri Lanka are other important buyers.
Gems and Jewellery is next important item in Indias export basket. Its share in total exports was
12.64% in 2006-07 but decreased to 12.16 % in 2007-08. However, it has recorded increases in
the years 2008- 09 (15.29%) and 2009-10 (16.27%). But it has declined in 2010-11 (16.14%).
Gems and jewellery are mainly exported to rich countries like USA, UK, Japan, Belgium and
Switzerland, trading nations like Hong Kong and Singapore, and also newly industrialised
countries like Thailand. UAE is also an important market.
Basic chemicals (Drug, Phrmcutes & Fine Chemicals and other basic chemicals combined) is an
area in which India is consistently doing well as far as exports are concerned. In the recent years,
basic chemicals have replaced readymade garments from the fourth most important source of
foreign exchange earner. In 2007-08,basic chemicals accounted for around 8.43 % of Indias
total value of export. In the next two years it remained at 8.55% and 8.85% in 2008-09 and 2009-
10 respectively and thereafter it showed a marginal decrease in 2010- 11(7.70 %).
Traditionally, India has had a comparative advantage in textiles. But the share of this item in
Indias total exports is gradually decreasing over the years. The share of this commodity in
Indias total volume of export has come down to 5.95 % in 2007-08 from 7.04 % in 2006-07. It
had marginally increased to 5.98 % and 6.01% in2008-09 and 2009-10 respectively. Thereafter it
declined again (4.63%) in 2010-11. However, it still continues to be the fourth largest foreign
exchange earner for the country when considered basic chemicals separately from other basic
chemicals. Indias main markets for this item group are the developed western countries like
USA, UK, Germany, France and Italy and also UAE.
There was a substantial jump in exports share (3.89%) of electronic goods and computer
software in2008-09 which is maintained steadily till 2010-11. In 2010-11, the share of electronic
goods is 3.27% which is seventh in the all commodity groups.
Indias iron ore export is another commodity group which had increased by leaps and bounds in
the last few years. Although there was increase in growth during 2007-08 (32.53%), a negative


growth was recorded again in 2008-09 (7.16 %). However, there was again positive growth by
30.57% in 2009-10, and negative growth (24.50%) in 2010-11. The reason for these ups and
down situation in exports of iron ore is assumed to be largely on the slowdown in the demand
from China. Indias main markets for iron ores are USA, China, Belgium, Italy and Spain.
Cotton yarn/fabrics/made-ups handloom products etc., and Man-made yarns/fabrics/made-
ups, etc. accounted for 2.44 % and 1.71 % of Indias total exports in 2010-11. The percentage
share of cottonyarn/fabrics/made-ups handloom products etc. has decreased steadily over the
years from 2006-07 to 2009-10(from 3.34 % to 2.22 %) but in 2010-11, it has recorded an
increase in share (2.44%). The growth of man-madeyarns/fabrics/made-ups, etc. has shown a
steady increase in absolute value terms from 2006-07 to 2010-11.


Share of Export of leather and leather manufactures has been gradually and continuously
declining from 2.32 % in 200607 to 1.52 % in 2010-11. The share of Tea and coffee exports
showed stagnation over the last five years (between 0.3 to 0.4 %).


Exports through major Ports
Among Indian ports, Nhava Sheva Sea handles the largest value of cargo export (15.62%
in 2010-11).With Mumbai Air, this port handles more than one-fourth share of Indias
merchandise exports value. Although its share is declining, Nhava Sheva has contributed
substantially to Indias export during the last five years.
Close behind Nhava Sheva Sea is Mumbai Air, with a share of 9.84 % during 2010-11 and
registering an increase of growth of export value by around 18.75 % as compared to the previous
year. In fact, Nhava Sheva Sea and Mumbai Air are the two most important ports of the country
that handled more than 30 % of the total exports for four years from 2006-07 to 2009-10 and
in 2010-11, their combined share was 25.46%.
The next major port was Chennai Sea. It consistently handled 6 7 % of the total exports during
the last five years from 2006-07 to 2010-11. Other major ports handling Indias exports are
Mundra, Delhi Air, Sikka, Vishakhapatnam Sea, Mumbai Sea, Tuticorin Sea, Kolkata Sea,
Kandla Sea, etc.
The SEZs which are contributing maximum in countrys exports are Reliance Jamnagar, SEZ
Surat, SEZ Cochin, SEZ Nokia Chennai, SEZ Noida, etc.


Values in Rs Crores

% share to total exports

Percentage
Growth


2006- 2007- 2008- 2009- 2010- 2007- 2008- 2009- 2010-
Port 2006-07 2007-08 2008-09 2009-10 2010-11 07 08 09 10 11 08 09 10 11
Nhava sheva sea 113434 126711 150540 154489 178499 19.84 19.32 17.91 18.27 15.62 11.70 18.81 2.62 15.54
Mumbai air 68082 80798 88407 94679 112434 11.91 12.32 10.52 11.20 9.84 18.68 9.42 7.09 18.75
Chennai sea 44257 44627 58115 59395 66744 7.74 6.80 6.91 7.02 5.84 0.84 30.22 2.20 12.37
Mundra 13017 19384 24493 24247 45565 2.28 2.96 2.91 2.87 3.99 48.92 26.35 -1.01 87.92
Delhi air 13735 14532 34797 35109 43453 2.40 2.22 4.14 4.15 3.80 5.80 139.45 0.90 23.77
Sikka 53718 78297 82367 37722 42657 9.39 11.94 9.80 4.46 3.73 45.76 5.20 -54.20 13.08
Visakhapatnam sea 8825 9193 12813 11704 30368 1.54 1.40 1.52 1.38 2.66 4.17 39.38 -8.66 159.46
Tuticorin sea 19190 19564 20857 19897 27984 3.36 2.98 2.48 2.35 2.45 1.95 6.61 -4.60 40.65
Mumbai sea 21379 19448 24689 20691 25548 3.74 2.97 2.94 2.45 2.24 -9.03 26.95 -16.19 23.48
Kolkata sea 14855 16428 20606 14928 25371 2.60 2.50 2.45 1.77 2.22 10.59 25.43 -27.55 69.95
Bangalore airport 15762 12727 11916 11868 19998 2.76 1.94 1.42 1.40 1.75 -19.25 -6.38 -0.40 68.50
Delhi (icd) 17992 15260 13323 13927 19831 3.15 2.33 1.58 1.65 1.74 -15.18 -12.69 4.53 42.39
Kakinada sea 4914 8726 15320 8838 18648 0.86 1.33 1.82 1.05 1.63 77.58 75.55 -42.31 111.00
Kandla sea 16280 17231 18380 16346 17755 2.85 2.63 2.19 1.93 1.55 5.84 6.67 -11.07 8.62
Vadinar 3200 11258 10517 10709 16688 0.56 1.72 1.25 1.27 1.46 251.82 -6.59 1.83 55.83
Pipavab(vicyor) 2199 3122 0 7623 15287 0.38 0.48 0.00 0.90 1.34 41.98 -100.00 - 100.55
Newmangalore sea 19158 19472 16507 8765 13473 3.35 2.97 1.96 1.04 1.18 1.64 -15.22 -46.90 53.71
Paradip sea 3974 7857 8369 7344 12502 0.70 1.20 1.00 0.87 1.09 97.70 6.52 -12.24 70.23
Cochin sea 10985 9992 11310 10933 12051 1.92 1.52 1.35 1.29 1.05 -9.04 13.19 -3.34 10.23
Chennai air 7571 8004 10108 11873 11661 1.32 1.22 1.20 1.40 1.02 5.72 26.28 17.47 -1.79
Total Exports 571779 655864 840755 845534 1142922 100.00 100.00 100.00 100.00 100.00 14.71 28.19 0.57 35.17



Table 3.2B: India's Export through some important ports during last Five years




Table 3.3: India's Export of major items during the period from 2006-07 to 2010-11
Sl.

Value in Rs. Crores

Percentage share in Total Exports
Growth(%) over the previous
year

2006- 2007- 2008- 2009- 2006- 2007- 2008- 2009- 2010- 2007- 2008- 2009- 2010-
No Item 07 08 09 10 2010-11 07 08 09 10 11 08 09 10 11
1 Tea 1970 2033 2689 2944 3354 0.34 0.31 0.32 0.35 0.29 3.23 32.25 9.47 13.95
2 Coffee 1969 1872 2256 2032 3010 0.34 0.29 0.27 0.24 0.26 -4.91 20.48 -9.92 48.12
3 Rice 7036 11755 11164 11255 11586 1.23 1.79 1.33 1.33 1.01 67.08 -5.03 0.81 2.94
4 Tobacco 1685 1932 3461 4344 3985 0.29 0.29 0.41 0.51 0.35 14.64 79.15 25.52 -8.26
5 Spices 3158 5259 6338 6157 8043 0.55 0.80 0.75 0.73 0.70 66.53 20.53 -2.86 30.63
6 Cashew 2491 2210 2901 2802 2819 0.44 0.34 0.35 0.33 0.25 -11.30 31.29 -3.43 0.64
7 Oil Meals 5504 7981 10269 7832 11070 0.96 1.22 1.22 0.93 0.97 44.99 28.67 -23.74 41.34
8 Fruits & Vegetables 3611 3515 5111 5963 5484 0.63 0.54 0.61 0.71 0.48 -2.66 45.41 16.68 -8.03
9 Marine Products 8001 6927 7066 9900 11917 1.40 1.06 0.84 1.17 1.04 -13.43 2.02 40.10 20.38
10 Iron Ore 17656 23400 21725 28366 21416 3.09 3.57 2.58 3.35 1.87 32.53 -7.16 30.57 -24.50

Mica, Coal & Other Ores,


Minerals including
processed

11 minerals 14030 13284 14152 12732 17937 2.45 2.03 1.68 1.51 1.57 -5.31 6.53 -10.04 40.89
12
Leather & leather
manufactures 13278 13674 15931 15551 17417 2.32 2.08 1.89 1.84 1.52 2.98 16.51 -2.39 12.00
13 Gems & Jewellery 72295 79744 128575 137568 184420 12.64 12.16 15.29 16.27 16.14 10.30 61.23 6.99 34.06

Drug, Phrmcutes & Fine

14 Chemls 26895 29833 40422 42456 48810 4.70 4.55 4.81 5.02 4.27 10.92 35.49 5.03 14.97
15 Other Basic Chemicals 22693 25447 31458 32351 39148 3.97 3.88 3.74 3.83 3.43 12.13 23.62 2.84 21.01
16 Engineering Goods 119874 135741 183998 154320 226803 20.97 20.70 21.88 18.25 19.84 13.24 35.55 -16.13 46.97
17 Electronic Goods 12916 13508 31301 25895 37378 2.26 2.06 3.72 3.06 3.27 4.59 131.72 -17.27 44.34
18 Computer Software 378 592 1557 859 320 0.07 0.09 0.19 0.10 0.03 56.55 162.75 -44.79 -62.75

Cotton Yarn/Fabs./made-
ups

19 handloom products etc. 19089 18534 18930 18732 27936 3.34 2.83 2.25 2.22 2.44 -2.91 2.13 -1.04 49.13

Man-
made Yarn/Fabs./made-

20 ups etc. 9975 11663 13919 17092 19490 1.74 1.78 1.66 2.02 1.71 16.93 19.34 22.80 14.03
21 RMG of all Textiles 40237 38999 50293 50791 52861 7.04 5.95 5.98 6.01 4.63 -3.08 28.96 0.99 4.08

Jute Mfg. including Floor

22 Covering 1178 1325 1376 1033 2092 0.21 0.20 0.16 0.12 0.18 12.42 3.85 -24.91 102.51
23 Carpet 4199 3929 3565 3482 4718 0.73 0.60 0.42 0.41 0.41 -6.44 -9.26 -2.32 35.49

Handicrafts excl. hand
made

24 carpet 1982 2046 1384 1067 1171 0.35 0.31 0.16 0.13 0.10 3.24 -32.35 -22.94 9.74
25 Petroleum Products 84520 114192 123398 132899 188779 14.78 17.41 14.68 15.72 16.52 35.11 8.06 7.70 42.05
26 Plastic & Linoleum 14718 13227 13817 15913 21297 2.57 2.02 1.64 1.88 1.86 -10.13 4.46 15.17 33.83

Subtotals 511339 582621 747057 744335 973262 89.43 88.83 88.86 88.03 85.16 13.94 28.22 -0.36 30.76

Total Exports 571779 655864 840755 845534 1142922 100.00 100.00 100.00 100.00 100.00 14.71 28.19 0.57 35.17





Import performance
Major Import Sources
Indias imports from top twenty countries, based on 2010-11 figures and covering more than
75% value share of imports, during last five years (from 2006-07 to 2010-11) are presented in
Table 3.4A. The table also indicates the percentage share of these countries. 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% in2010-11. 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 in the fifth position in2009-10, but has occupied the third
position pushing Saudi Arab and USA into fourth and fifth positions respectively. However, it is
very significant and important that during the last two years, i.e. in 2009-10 and 2010-11, the
composition of the top twenty countries remain the same although their relative positions may
not be the same during these two years. Another significant happening among these top twenty
countries is that Hong Kong which was in 19th position last year (2009-10) has moved to
13th position in this year.
Table 3.4A: Percentage share of import of top 20 major Importer Countries (based on 2010-11 import values)

value in Rs. crores

Country

% of

% of % of % of

% of

total

total total total

total

2010-11 import 2009-10 import 2008-09 import 2007-08 import 2006-07 import
China P RP 198079 11.77 146049 10.71 147606 10.74 109116 10.78 79009 9.40
UAE 149123 8.86 91799 6.73 105926 7.71 54233 5.36 39175 4.66
Switzerland 112740 6.70 69232 5.08 52703 3.83 39571 3.91 41283 4.91
Saudi Arab 92855 5.52 80664 5.91 89747 6.53 78110 7.72 60562 7.21
USA 91359 5.43 80584 5.91 84818 6.17 84625 8.36 53105 6.32
Germany 54136 3.22 48886 3.58 54922 4.00 39736 3.93 34147 4.06
Iran 49725 2.95 54636 4.01 55822 4.06 43946 4.34 34515 4.11
Australia 49188 2.92 58662 4.30 50497 3.67 31552 3.12 31711 3.77
Nigeria 49005 2.91 34377 2.52 39995 2.91 30663 3.03 31797 3.78
Korea RP 47712 2.83 40551 2.97 39658 2.89 24308 2.40 21747 2.59
Kuwait 46976 2.79 38988 2.86 43199 3.14 30960 3.06 27114 3.23
Indonesia 45136 2.68 41009 3.01 30751 2.24 19421 1.92 18865 2.24
Hong Kong 42825 2.54 22317 1.64 29733 2.16 10867 1.07 11239 1.34
Iraq 40977 2.43 33273 2.44 34285 2.49 27495 2.72 25005 2.97


Japan 39309 2.34 31894 2.34 35833 2.61 25458 2.51 20795 2.47
Belgium 39179 2.33 28466 2.09 26058 1.90 17546 1.73 18742 2.23
Singapore 32546 1.93 30623 2.25 34529 2.51 32682 3.23 24840 2.96
South Africa 32525 1.93 26900 1.97 24882 1.81 14547 1.44 11184 1.33
Qatar 31036 1.84 22010 1.61 15895 1.16 9889 0.98 9359 1.11
Malaysia 29746 1.77 24494 1.80 32592 2.37 24176 2.39 23959 2.85
Major Countries
1274177 75.69
1005412 73.72 1029452 74.90 748900 73.98 618152 73.55 Total
All Countries
1683467 100 1363735 100 1374436 100.00 1012312 100.00 840506 100.00 Total






In absolute terms, imports from China has exceeded one lakh crores since 2007-08 and it is
nearing two lakhs crores now (Rs. 198079 crores in 2010-11) with 35.63 % growth over 2009-
10 (Table 3.4B).
Although there was negative growth in total imports of India by 0.78 % during 2009-10 in
comparison to the previous two years (the annual growths were 20.44 % and 35.77 %
respectively in 2007-08 and 2008-09), it has again increased by 23.45 % during 2010-11 (Table
3.4B). Whereas the negative growth of import for 2009-10 was reflected in the imports from
almost all major countries except Qatar (38.47 %), Indonesia (33.36 %), Switzerland (31.36 %),
Australia (16.17 %), Belgium (9.24 %) and South Africa (8.11 %) where there were positive
growths over the previous year, the situations are quite different in 2010-11. Significantly, Hong
Kong has performed highest annual growth of import to India during 2010-11 and this has put
Hong Kong to the 13th position against 19th position in2009-10 among the top 20 major import
sources. In the same way, Switzerlands growth was very significant (62.84 %) in 2010-
11, which has put it in 3rd position replacing Saudi Arab which is now in 4th position.











Table 3.4B: Annual growth of import of top 20 major Importer Countries (based on 2010-11 import values)

value in Rs. crores

Country

% of

% of

% of

% of
2006-07 2007-08 growth 2008-09 growth 2009-10 growth 2010-11 growth
China P RP 79009 109116 38.11 147606 35.27 146049 -1.05 198079 35.63
UAE 39175 54233 38.44 105926 95.32 91799 -13.34 149123 62.45
Switzerland 41283 39571 -4.15 52703 33.19 69232 31.36 112740 62.84
Saudi Arab 60562 78110 28.98 89747 14.90 80664 -10.12 92855 15.11
USA 53105 84625 59.35 84818 0.23 80584 -4.99 91359 13.37
Germany 34147 39736 16.37 54922 38.22 48886 -10.99 54136 10.74
Iran 34515 43946 27.32 55822 27.02 54636 -2.12 49725 -8.99
Australia 31711 31552 -0.50 50497 60.04 58662 16.17 49188 -16.15
Nigeria 31797 30663 -3.57 39995 30.43 34377 -14.05 49005 42.55
Korea RP 21747 24308 11.78 39658 63.15 40551 2.25 47712 17.66
Kuwait 27114 30960 14.18 43199 39.53 38988 -9.75 46976 20.49
Indonesia 18865 19421 2.95 30751 58.34 41009 33.36 45136 10.06
Hong Kong 11239 10867 -3.31 29733 173.61 22317 -24.94 42825 91.89
Iraq 25005 27495 9.96 34285 24.70 33273 -2.95 40977 23.15
Japan 20795 25458 22.42 35833 40.75 31894 -10.99 39309 23.25
Belgium 18742 17546 -6.38 26058 48.51 28466 9.24 39179 37.63
Singapore 24840 32682 31.57 34529 5.65 30623 -11.31 32546 6.28
South Africa 11184 14547 30.07 24882 71.05 26900 8.11 32525 20.91
Qatar 9359 9889 5.66 15895 60.73 22010 38.47 31036 41.01
Malaysia 23959 24176 0.91 32592 34.81 24494 -24.85 29746 21.44
Major
618152 748900

1029452

1005412

1274177 Countries Total 21.15 37.46 -2.34 26.73
All Countries
840506 1012312

1374436

1363735

1683467 Total 20.44 35.77 -0.78 23.45
Imports through major ports
Table 3.5A gives the value of Indias imports and the percentage shares through twenty
major ports for the last five years from 2006-07 to 2010-11. It can be seen from the table that the
combined values of imports through these major ports accounts for 82.28 % of total import value
of India, of which top 10 contribute more than 61 % share of import value. Another significant
indication is that these top 10 ports were the major top ten in the last year also although their
relative positions has changed except Nhava Sheva Sea, Chennai Sea and Chennai Air who
respectively are positioned at 1st, 2nd and 10th. Table 3.5A also shows that the values of imports
through Nhava Sheva Sea Port were the maximum during the last five years, thus indicating the
busy schedule and importance of the port. The same is true for Chennai Sea port also.
Significantly, Delhi Air has occupied the third position from 9th last year(2009-10) with more
than twice of import value (Rs. 111479 crores) and with highest annual growth of 114.25 % in




2010-11 (Table 3.5B). Another custom station which has significantly improved through its
gems and jewllery import is ICD/CFS Surat Hira. In 2009-10, it had an import value of Rs.
23690 crores with a share of 1.74 %, whereas in2010-11, it has Rs 46698 crores of imports with
a share of 2.77 % and an annual growth of 97.12 %. The percentage shares of a few ports,
namely, Mumbai Air, Sikka and Kolkata Sea are consistently declining thus indicating that other
ports are coming very fast in comparison to these ports. Still the values of imports through these
ports are quite significant. In fact the value of import through Mumbai Air customs is more than
one lakh crores (Rs. 107641 crores) which is very significant. The import values and their shares
through ports such as Vadinar, Sikka, etc. have increased over the period from 2006-07 to 2010-
11. The value shares of imports are consistent at 5 to 8 % over the past five years for these ports.
After the inclusion of SEZs and similar custom stations, the imports through these types of ports
are also increasing. The most significant custom zone in this regard is SEZ Jamnagar as this port
has emerged as the major port in the recent past. It has improved its position to 6th with nearly
one lakh crores of petroleum imports (Rs. 97608 crores) and 5.75 % share this year as against
7th position (4.65 %) in 2009-10 with Rs. 63466 crores worth of petroleum import. It is expected
that in the coming years, more and more SEZs will positioned themselves in the major port list.


Table 3.5A: Percentage share of Top 20 Major Importer Ports (based on 2010-11 import values) to the total imports

value in Rs. crores


% of

% of

% of % of


total

total

total total % of total
Port name 2010-11 import 2009-10 import 2008-09 import 2007-08 import 2006-07 import
Nhava Sheva sea 192668 11.44 147985 10.85 133766 9.73 101027 9.98 80348 9.56
Chennai sea 140902 8.37 118141 8.66 124273 9.04 88158 8.71 76064 9.05
Delhi air 111479 6.62 52033 3.82 67412 4.90 49289 4.87 46690 5.55
Mumbai air 107641 6.39 84525 6.20 71997 5.24 73801 7.29 69480 8.27
Vadinar 97608 5.80 82083 6.02 94133 6.85 60130 5.94 42688 5.08
SEZ jamnagar

(reliance) 96757 5.75 63466 4.65 9298 0.68 0.00 0.00
Mumbai sea 85533 5.08 77964 5.72 83319 6.06 65169 6.44 62533 7.44
Sikka 79232 4.71 76197 5.59 86110 6.27 76162 7.52 66551 7.92
Kolkata sea 62751 3.73 56316 4.13 71613 5.21 60322 5.96 50869 6.05
Chennai air 55148 3.28 50434 3.70 40136 2.92 32078 3.17 28716 3.42
ICD/CFS Surat Hira 46698 2.77 23690 1.74 2687 0.20 0.00 16681 1.98
Paradip sea 44270 2.63 38219 2.80 24326 1.77 13293 1.31 8044 0.96
Kandla sea 41001 2.44 40282 2.95 48703 3.54 31189 3.08 27161 3.23
Visakhapatnam sea 39495 2.35 42646 3.13 51969 3.78 33665 3.33 30269 3.60
Ahmedabad air cargo

complex 39194 2.33 35748 2.62 20032 1.46 16303 1.61 10496 1.25
Mundra 32258 1.92 38277 2.81 55855 4.06 32147 3.18 15298 1.82
Cochin sea 30631 1.82 25241 1.85 24911 1.81 20650 2.04 18089 2.15
Bangalore airport 27802 1.65 31114 2.28 26870 1.95 29365 2.90 30189 3.59
Dahej 27611 1.64 21729 1.59 21776 1.58 18767 1.85 0.00
New Mangalore sea 26557 1.58 31201 2.29 34798 2.53 29082 2.87 22398 2.66
Major ports total 1385236 82.28 1137291 83.40 1093984 79.60 830597 82.05 702564 83.59
All ports total 1683467 100.00 1363735 100.00 1374436 100.00 1012312 100.00 840506 100.00
As stated above, Delhi Air has improved its position so far as importing goods through it.
It has recorded (Table 3.5B) the maximum annual growth (114.25 %) of importing cargos
in 2010-11 with value of import at Rs.



111479 crores. Delhi Air was followed by ICD/CFS Surat Hira in terms of annual growth (97.12
%). It was mainly Gold, Diamond and precious materials which were handled by this port. The
increase in prices of these items globally has contributed an increase of import value through this
port. The annual growth for top five ports is quite consistent.






Table 3.5B: annual growth of import of Top 20 Major Importer Ports (based on 2010-11 import values)

value in Rs. crores


%

%

%

%
Port 2006-07 2007-08 growth 2008-09 growth 2009-10 growth 2010-11 growth
Nhava Sheva sea 80348 101027 25.74 133766 32.41 147985 10.63 192668 30.19
Chennai sea 76064 88158 15.90 124273 40.97 118141 -4.93 140902 19.27
Delhi air 46690 49289 5.57 67412 36.77 52033 -22.81 111479 114.25
Mumbai air 69480 73801 6.22 71997 -2.44 84525 17.40 107641 27.35
Vadinar 42688 60130 40.86 94133 56.55 82083 -12.80 97608 18.91
SEZ jamnagar

(reliance)

9298

63466 582.58 96757 52.45
Mumbai sea 62533 65169 4.22 83319 27.85 77964 -6.43 85533 9.71
Sikka 66551 76162 14.44 86110 13.06 76197 -11.51 79232 3.98
Kolkata sea 50869 60322 18.58 71613 18.72 56316 -21.36 62751 11.43
Chennai air 28716 32078 11.71 40136 25.12 50434 25.66 55148 9.35
ICD/CFS Surat Hira

2687

23690 781.65 46698 97.12
Paradip sea 8044 13293 65.25 24326 83.00 38219 57.11 44270 15.83
Kandla sea 27161 31189 14.83 48703 56.15 40282 -17.29 41001 1.78
Visakhapatnam sea 30269 33665 11.22 51969 54.37 42646 -17.94 39495 -7.39
Ahmedabad air cargo

complex 10496 16303 55.33 20032 22.87 35748 78.45 39194 9.64
Mundra 15298 32147 110.14 55855 73.75 38277 -31.47 32258 -15.72
Cochin sea 18089 20650 14.16 24911 20.63 25241 1.32 30631 21.35
Bangalore airport 30189 29365 -2.73 26870 -8.50 31114 15.79 27802 -10.64
Dehej 16681 18767
12.51
21776 16.03 21729 -0.22 27611 27.07
New Mangalore sea 22398 29082 29.84 34798 19.65 31201 -10.34 26557 -14.88
Major ports total 702564 830597 18.22 1093984 31.71 1137291 3.96 1385236 21.80
All ports total 840506 1012312 20.44 1374436 35.77 1363735 -0.78 1683467 23.45






Major Import
Table 3.6A and Table 3.6B present Indias import by principal commodity groups with
their shares and annual growths respectively during 2004-05 to 2010-11. From Table 3.6A, it is
seen that the most important item group imported by India is Petroleum, Crude & Products
(28.65%), followed by Gold and silver (11.50 %), Pearls, precious and semi-precious stones
(9.36 %), Machinery, electrical & non-electrical (7.49 %), electronic goods (7.19 %), etc. It is
the imports of Petroleum, Crude & Products and the increasing price of petroleum products
globally that has changed the scenario of the imports and has put countries such as UAE, Saudi
Arabia, etc. into the top five countries and other countries like Iran, Indonesia, Iraq, Kuwait, etc.
into the top 20 countries over the last five years. Table 3.8A and Table 3.8B present the
petroleum products (POL) imported from these petroleum products exporter countries and the
total import values from these countries. It can be seen from this table that these countries are
significant mainly for POL imports.
As can be seen from Table 3.6A that although the petroleum import has been more than
30 % since 2006-07,it came down slightly during 2010-11 with a share of 28.65 %. During 2004-
05 and 2005-06 shares of imports of POL were 26.76 % and 29.47 % respectively. Although the
growth of POL import was negative during 2009-10 (Table 3.7), it again increased during 2010-
11.



The effects of POL and Non-POL imports vis--vis total imports during last three years
from 2007-08 to2009-10 is presented in Table 3.7.
Table 3.7 : Value, percentage share and percentage growth of POL, Non-POL items of imports for2008-
09, 2009-10 and 2010-11

Item
value in Rs. crores Percentage share in Total Percentage growth
2008-09 2009-10 2010-11 2008-09 2009-10 2010-11 2008-09 2009-10 2010-11



POL 419946 411649 482282 30.55 30.19 28.65 30.97 1.98 17.16

Non-POL 954489 952087 1201185 69.45 69.81 71.35 38.00 0.25 26.16

Total 1374435 1363736 1683467 100.00 100.00 100.00 35.77 0.78 23.44




Gold & Silver, the second most important item group after Petroleum, Crude &
Products. It has a share of 11.50 % to the total imports in 2010-11 whereas it was 10.30 % to the
total imports in 2009-10 (Table 3.6A). After2003-04, when the total value of Gold & Silver
import was Rs. 31506 crores, it increased substantially to Rs. 50098 crores in 2004-05, a growth
of 59.01 %. However, after 2004-05, this item group had a steady percentage shares of about 7
8% for next three years, i.e., for 2005-06, 2006-07 and 2007-08. In 2008-09, the Gold & Silver
import shoot up to Rs. 100467 crores value of import with an annual growth of 39.67 % (Table
3.6B). The trend continued in2009-10 also, but in 2010-11, the growth of Gold & Silver import
was slightly less (37.83 %) although it was Rs. 193562 crores in absolute value, thus indicating
that this commodity group is likely cross the 2 lakhs crores of import value next year.
The item group Pearls, precious & semi-precious stones, which was sharing 5.62 % of
the total imports in2009-10 and was the fifth in the commodity group, has made significant
progress in import values at Rs. 157596 crores with a share of 9.36 % and with an annual growth
of 105.53 % in 2010-11, thus recording the second highest growth after Textile Yarn Fabric,
etc. (Table 3.6B). Such growth was noticed in 2008-09 when the annual growth was recorded as
137.06 %. There was a steady decline of percentage shares of this item group from 8.45 % in
2004- 05, 6.12 % in 2005-06, 4.03 % in 2006-07 to 3.17 % in 2007-08, but it again increased to
5.54 % in 2008-09 and 5.62 % in 2009-10. However, the growth was only 0.72 % in 2009-10.
Machinery, electrical and non-electrical machinery comes fourth in terms of share and
values of imports are concerned. It contributes 7.49 % in the total merchandise imports with a
value of Rs. 126162 crores during 2010- 11, a slight decrease in share compare to 2009-10 when
its share was 7.93 % in the total merchandise imports with a value of Rs. 108154 crores.
Although the annual growth is recorded as 16.65 % in 2010-11, there was a negative growth
(6.58 %) of import of this commodity group in 2009-10. It can also be seen that there is a steady
decrease of imports of Machinery, electrical and non-electrical machinery items over the last
five years from 2005-06 to 2009- 10 (Table 3.6B).
Electronic Goods is the fifth important item group. Its share of value to the total
imports, although is declining over the years but is steady between 7 8 % over the years.
In 2010-11, it has import share of 7.19 %, slightly less than the previous year which was 7.29 %.
Although, there was negative annual growth of 7.20 % in2009-10, it has significantly positive
annual growth of 21.72 % in 2010-11.
Besides these five major commodity groups with larger shares of imports, the commodity
group that has significant growth of import value in 2010-11 was Textile yarn Fabric, made-
up articles with an annual growth of 156.41 %, although there was negative growth ( 51.90 %)
of this commodity group in 2009-10. Other commodity groups which recorded significant
positive growths in 2010-11 against negative growths in 2009-10 are Newsprint (66.64 %
in 2010-11 and 39.67 % in 2009-10), Sulphur & Unroasted Iron Pyrts (61.14 % in 2010-11 and
76.28 % in 2009-10), Machine tools (30.82 % in 2010-11 and 24.24 % in 2009-10), Non-
ferrous metals (30.33 % in 2010- 11 and 46.56% in 2009-10), etc. The commodity groups like
Artificial resins, plastic material etc. (32.22 % in 2010-11and 30.74 % in 2009-10), and Project
goods (26.01 % in 2010-11 and 51.46 % in 2009-10) have recorded high positive growths in both
the years 2009-10 and 2010-11.
Import of Petroleum Products


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, 2009-10,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 2010-11respectively. 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.

Table 3.8A: Petroleum import from 10 major countries during 2008-09, 2009-10 and 2010-11


value in Rs. crores

Country 2010-11 % share 2009-10 % share 2008-09

% share
Saudi Arab 81694 16.94 72586 17.63 82488

19.64
Nigeria 48425 10.04 33965 8.25 39628

9.44
Kuwait 44313 9.19 37391 9.08 41401

9.86
UAE 42791 8.87 30342 7.37 46084

10.97
Iran 42547 8.82 48922 11.88 50693

12.07
Iraq 40734 8.45 33057 8.03 34063

8.11
Qatar 27588 5.72 19429 4.72 13160

3.13
Venezuela 23720 4.92 13329 3.24 18447

4.39
Angola 23169 4.80 19987 4.86 6499

1.55
Oman 14943 3.10 13601 3.30 2811

0.67
Major countries total 389924 80.85 322609 78.36 335274

79.83
All countries total 482282 100.00 411649 100.00 419968

100.00





Table 3.8B: Petroleum import from 10 major countries during 2008-09, 2009-10 and 2010-11

value in Rs. crores

Country 2008-09 2009-10 % growth 2010-11 % growth
Saudi Arab 82488 72586 -12.00 81694 12.55
Nigeria 39628 33965 -14.29 48425 42.57
Kuwait 41401 37391 -9.69 44313 18.51
UAE 46084 30342 -34.16 42791 41.03
Iran 50693 48922 -3.49 42547 -13.03
Iraq 34063 33057 -2.95 40734 23.22
Qatar 13160 19429 47.64 27588 41.99
Venezuela 18447 13329 -27.74 23720 77.96
Angola 6499 19987 207.54 23169 15.92
Oman 2811 13601 383.85 14943 9.87
Major countries total 335274 322609 -3.78 389924 20.87
All countries total 419968 411649 -1.98 482282 17.16




Table 3.6A: Percentage share of imports by Principal Commodities (based on 2010-11 import values) to the
total imports

value in Rs.
crores

Commodities

% of

% of

% of

% of

% of

% of

% of

total

total

total

total

total

total

total

2010-11

import 2009-10 import
2008-
09 import

2007-
08

import
2006-
07

import
2005-
06 import
2004-
05

import
Cotton Raw & Waste 624 0.04 1241 0.09 1690 0.12

912

0.09 663

0.08 704 0.11 1136

0.23
Vegetable Oil (Fixed) 29860 1.77 26483 1.94 15819 1.15

10301

1.02 9540

1.14 8961 1.36 11077

2.21
Pulses 7150 0.42

Pulp and Waste paper 5208 0.31 4178 0.31 3681 0.27

3132

0.31 2893

0.34 2537 0.38 2199

0.44


Textile yarn
Fabric, made-up
13759 0.82 5366 0.39 11156 0.81

9510

0.94 9400

1.12 8827 1.34 6910

1.38 articles

Fertilisers, Crude &
manufactures 31533 1.87 31755 2.33 59569 4.33

20307

2.01 13732

1.63 8815 1.33 5612

1.12
Sulphur & Unroasted
Iron Pyrts 1099 0.07 682 0.05 2875 0.21

1457

0.14 495

0.06 602 0.09 576

0.11
Metaliferrous ores &
metal scrap 44217 2.63 36450 2.67 36331 2.64

31854

3.15 37764

4.49 17186 2.60 11091

2.21
Coal, Coke & Briquettes,
etc. 44670 2.65 42511 3.12 45948 3.34

25862

2.55 20710

2.46 17128 2.59 14371

2.87
Petroleum, Crude &
products

482282

28.65

411649 30.19 419946 30.55

320655

31.68 258572

30.76 194640 29.47 134094

26.76
Wood & Wood products 7396 0.44 7461 0.55 6035 0.44

5456

0.54 4684

0.56 4103 0.62 3995

0.80
Organic & Inorganic
Chemicals 69350 4.12 56473 4.14 56016 4.08

39883

3.94 35433

4.22 30921 4.68 25610

5.11
Dyeing/tanning/colouring
mtrls. 5368 0.32 4284 0.31 3782 0.28

3000

0.30 2695

0.32 2226 0.34 1853

0.37
Artificial resins, plastic
materials,
31304 1.86 23675 1.74 18109 1.32

14839

1.47 11696

1.39 10040 1.52 6546

1.31 etc.

Chemical material &
products 13278 0.79 10874 0.80 9614 0.70

6544

0.65 5980

0.71 4660 0.71 3681

0.73
Newsprint 3741 0.22 2245 0.16 3720 0.27

2227

0.22 2407

0.29 1933 0.29 1766

0.35
Pearls, precious & Semi-
precious

157596

9.36

stones

76678 5.62 76130 5.54

32114

3.17 33881

4.03 40441 6.12 42338

8.45
Iron & Steel 47275 2.81 39098 2.87 43531 3.17

34987

3.46 29071

3.46 20243 3.07 11995

2.39
Non-ferrous metals 18590 1.10 14264 1.05 26203 1.91

14116

1.39 11787

1.40 8166 1.24 5887

1.17
Machine tools 10276 0.61 7855 0.58 10369 0.75

8890

0.88 6703

0.80 4765 0.72 2788

0.56
Machinery, electrical &
non-

126162

7.49

electrical

108154 7.93 115770 8.42

92007

9.09 71540

8.51 50977 7.72 36003

7.19
Transport equipment 52112 3.10 55472 4.07 60803 4.42

80981

8.00 42709

5.08 39131 5.93 19444

3.88
Project goods 27996 1.66 22217 1.63 14668 1.07

5208 0.51 8126

0.97 3908 0.59 2679

0.53
Professional instrument,
Optical
19200 1.14

goods, etc. 17157 1.26 20211 1.47

12349

1.22 10593

1.26 8734 1.32 6876

1.37
Electronic goods

121017

7.19

99419 7.29 107128 7.79

83138

8.21 72275

8.60 58626 8.88 44901

8.96
Medcnl. &
Pharmaceutical
11114 0.66 9959 0.73 8649 0.63

6734

0.67 5866

0.70 4551 0.69 3169

0.63 products

Gold & Silver

193562

11.50

140440 10.30 100467 7.31

71934

7.11 66272

7.88 50108 7.59 50098

10.00

Total Import 1683467 100.00 1363736 100.00 1374435 100.00

1012312 100.00 840506

100.00 660409 100.00 501065

100.00




Table 3.6B: Percentage share of imports by Principal Commodities (based on 2010-11 import values) to the
total imports

Commodities

value in Rs. crores

% % % % % %


2010-11

growth 2009-10 growth 2008-09

growth 2007-08 growth
2006-
07

growth
2005-
06 growth
2004-
05


Cotton Raw & Waste 624 -49.72 1241
-
26.57 1690

85.31

912 37.56

663

-5.82 704 -38.03

1136


Vegetable Oil (Fixed) 29860 12.75 26483 67.41 15819

53.57

10301 7.98

9540

6.46

8961 -19.10

11077


Pulses 7150


Pulp and Waste paper 5208 24.65 4178 13.50 3681

17.53

3132 8.26

2893

14.03

2537 15.37

2199




Textile yarn Fabric, made-
up
13759


articles 156.41 5366
-
51.90 11156

17.31

9510 1.17

9400

6.49

8827 27.74

6910


Fertilisers, Crude &
31533

31755

59569

20307

13732

8815

5612


manufactures -0.70

-
46.69

193.34

47.88

55.78

57.07


Sulphur & Unroasted Iron
Pyrts 1099 61.14 682
-
76.28 2875

97.32

1457 194.34

495

-17.77

602 4.51

576


Metaliferrous ores &
metal
44217


scrap 21.31 36450 0.33 36331

14.05

31854 -15.65

37764

119.74

17186 54.95

11091


Coal, Coke & Briquettes,
etc. 44670 5.08 42511 -7.48 45948

77.67

25862 24.88

20710

20.91

17128 19.18

14371


Petroleum, Crude &
products

482282

17.16 411649 -1.98 419946

30.97

320655 24.01

258572

32.85

194640 45.15

134094


Wood & Wood products 7396 -0.87 7461 23.63 6035

10.61

5456 16.48

4684

14.16

4103 2.70

3995


Organic & Inorganic
Chemicals 69350 22.80 56473 0.82 56016

40.45

39883 12.56

35433

14.59

30921 20.74

25610


Dyeing/tanning/colouring
mtrls. 5368 25.30 4284 13.27 3782

26.07

3000 11.32

2695

21.07

2226 20.13

1853


Artificial resins, plastic
31304


materials, etc. 32.22 23675 30.74 18109

22.04

14839 26.87

11696

16.49

10040 53.38

6546


Chemical material &
products 13278 22.11 10874 13.11 9614

46.91

6544 9.43

5980

28.33

4660 26.60

3681


Newsprint 3741 66.64 2245
-
39.65 3720

67.04

2227 -7.48 2407

24.52

1933 9.46

1766


Pearls, precious & Semi-

157596


precious stones

105.53 76678 0.72 76130

137.06

32114 -5.22

33881

-16.22

40441 -4.48

42338


Iron & Steel 47275 20.91 39098
-
10.18 43531

24.42

34987 20.35

29071

43.61

20243 68.76

11995


Non-ferrous metals 18590 30.33 14264
-
45.56 26203

85.63

14116 19.76

11787

44.34

8166 38.71

5887


Machine tools 10276 30.82 7855
-
24.25 10369

16.64

8890 32.63

6703

40.67

4765 70.91

2788


Machinery, electrical &
non-

126162


electrical

16.65 108154 -6.58 115770

25.83

92007 28.61

71540

40.34

50977 41.59

36003


Transport equipment 52112 -6.06 55472 -8.77 60803

-24.92

80981 89.61

42709

9.14

39131 101.25

19444


Project goods 27996 26.01 22217 51.47 14668

181.64

5208 -35.91

8126

107.93

3908 45.88

2679


Professional instrument,
Optical
19200

17157

20211

12349

10593

8734

6876


goods, etc. 11.91

-
15.11

63.67

16.58

21.28

27.02


Electronic goods

121017

21.72 99419 -7.20 107128

28.86

83138 15.03

72275

23.28

58626 30.57

44901


Medcnl. &
Pharmaceutical
11114


products 11.60 9959 15.15 8649

28.44

6734 14.80

5866

28.89

4551 43.61

3169


Gold & Silver

193562

37.83 140440 39.79 100467

39.67

71934 8.54

66272

32.26

50108 0.02

50098



Total Import 1683467 23.45 1363736 -0.78 1374435

35.77

1012312 20.44

840506

27.27

660409 31.80

501065






























Conclusion
Composition of Indias Foreign Trade has undergone a positive change. IT is a remarkable
achievement that India has transformed itself from a predominately primary goods exporting
country into non primary goods exporting country. Under Imports also Indias dependence on
food grains and capital goods has declined.
After the implementation of the foreign trade policy, the import and export among foreign
countries have increased and have become more secured.
Setting up of EPZ and SEZ has also increased the foreign investors.
Trading Housing have given a platform to both manufactures and consumers to freely and easily
trade between different countries.