Chapter-3

Trends in Indias Foreign Trade

Indias Trade Performance

economies are expected to grow at 1.4 per cent

while the emerging and developing economies
to grow at 5.5 per cent in 2013. The projected
growth rates in different countries are expected to
determine the markets for our exports.

Indias merchandise exports reached a level of

US $ 304.62 billion during 2011-12 registering a
growth of 21.30 percent as compared to a growth
of 40.49 percent during the previous year. Despite
the recent setback faced by Indias export sector
due to global slowdown, merchandise exports still
recorded a Compound Annual Growth Rate (CAGR)
of 20.3 per cent from 2004-05 to 2011-12.

As per WTOs International Trade Statistics, 2012,

in merchandise trade, India is the 19th largest
exporter in the world with a share of 1.7 per cent
and the 12th largest importer with a share of 2.5
per cent in 2011.

World Trade Scenario

Exports

As per IMFs World Economic Outlook January,

2013, the volume of world trade (goods and
services) in 2012 slowed down to 2.8 per cent
compared to the 5.9 per cent achieved in 2011. As
per IMF projections, growth in the volume of world
trade is expected to rise to 3.8 per cent in 2013.

Exports recorded a growth of 21.30 per cent during

Apr-Mar 2011-12. The Government has set an
export target of US $ 360 billion for 2012-13. The
merchandise exports have reached US $ 265.95
billion in 2012-13 (Apr.-Feb.). Export target and
achievement from 2004-05 to 2011-12 and 201213 (Apr.-Feb.) is given in the Chart 3.1 below:

The IMF has put its growth projections of world

output at 3.5 per cent in 2013. The advanced

27

Annual Report 2012-13

Imports

$ 292.47 billion during 2012-13 (Apr.-Feb.) which

was 5.03 per cent lower than non-oil imports of US
$ 307.94 billion in previous year.

Cumulative value of imports during 2012-13

(Apr.-Feb.) was US $ 448.04 billion as against US
$ 446.94 billion during the corresponding period
of the previous year registering a growth of 0.25
per cent in $ terms. Oil imports were valued at US
$ 155.57 billion during 2012-13 (Apr.-Feb.) which
was 11.92 per cent higher than oil imports valued
US $ 139.00 billion in the corresponding period of
previous year. Non-oil imports were valued at US

Trade Balance
The Trade deficit in 2012-13 (Apr.-Feb.) was
estimated at US $ billion 182.09 which was higher
than the deficit of US $ 169.81 billion during 201112 (Apr.-Feb.). Performance of Exports, Imports
and Balance of Trade during 2004-05 to 2012-13
(April-Feb.) is given in the table below:

(Values in Rs crores)
S.
No

Year

Exports

%Growth

Imports

%Growth

Trade
Balance

2004-2005

3,75,340

27.94

5,01,065

39.53

-1,25,725

2005-2006

4,56,418

21.60

6,60,409

31.80

-2,03,991

2006-2007

5,71,779

25.28

8,40,506

27.27

-2,68,727

2007-2008

6,55,864

14.71

10,12,312

20.44

-3,56,448

2008-2009

8,40,755

28.19

13,74,436

35.77

-5,33,680

2009-2010

8,45,534

0.57

13,63,736

-0.78

-5,18,202

2010-2011

11,42,922

35.17

16,83,467

23.45

-5,40,545

2011-2012(Provisional)

14,59,281

27.68

23,44,772

39.28

-8,85,492

2011-12 (April-February)
Press Release

13,20,836

2012-13 (April-February)
Press Release

14,46,627

10

21,32,198

9.52

-8,11,362

24,36,564

14.27

-9,89,938

Data Source : DGCIS, Kolkata

(Values in US$ Millions)

S.
No.

Year

Exports

%Growth

Imports

%Growth

Trade
Balance

2004-2005

83,536

30.85

1,11,517

42.70

-27,981

2005-2006

1,03,091

23.41

1,49,166

33.76

-46,075

2006-2007

1,26,414

22.62

1,85,735

24.52

-59,321

2007-2008

1,63,132

29.05

2,51,654

35.49

-88,522

2008-2009

1,85,295

13.59

3,03,696

20.68

-1,18,401

28

CHAPTER-3

Trends in Indias Foreign Trade

2009-2010

1,78,751

-3.53

2,88,373

-5.05

-1,09,621

2010-2011

2,51,136

40.49

3,69,769

28.23

-1,18,633

2011-2012(Provisional)

3,04,624

21.30

4,89,181

32.29

-1,84,558

2011-12 (April-February)
Press Release

2,77,125

2012-13 (April-February)
Press Release

2,65,946

10

4,46,939

-1,69,814

-4.03

4,48,037

0.25

-1,82,090

Data Source: DGCIS, Kolkata

Exports of Principal Commodities

cent in US $ terms mainly due to significant contribution

in the exports of Petroleum (Crude & Products),
Gems & Jewellery, Transport Equipments, Machinery
and Instruments and Drugs, Pharmaceuticals & Fine
Chemicals.

DisaggregateddataonexportsofPrincipalCommodities,
both in Rupee and Dollar terms, available for the
period 2012-13 (April-January) as compared with the
corresponding period of the previous year are given
in Appendix at Table 3.1 and Table 3.2 respectively.
Exports of the top five commodities during the period
2012-13 (April-January) registered a share of 50.8 per

The share of top five Principal Commodity Groups

in Indias total exports during 2012-13 (AprilJanuary) is given at Chart 3.3.

29

Annual Report 2012-13

The export performance (in terms of growth in US

$ terms) of top five commodities during 2012-13

(April-January) vis-a-vis the corresponding period

of the previous year is shown in Chart 3.4.

30

CHAPTER-3

Trends in Indias Foreign Trade

Plantation Crops

Gems and Jewellery

Export of Plantation crops during 2012-13 (April

January), decreased by 9.95 per cent in US $
terms compared with the corresponding period
of the previous year. Export of Coffee registered
a negative growth of 11.44 per cent, the value
decreasing from US $ 741.05 million to US $
656.26 million. Export of Tea also decreased by
8.50 per cent.

The export of Gems and Jewellery during 201213(April-January) decreased to US $ 34758.78

million from US $ 38755.30 million during the
corresponding period of last year showing a
negative growth of 10.31 per cent.

Chemicals and Related Products

During the period 2012-13 (April-January), the
value of exports of Chemicals and Related Products
increased to US $ 34686.90 million from US $
32319.14 million during the same period of the
previous year registering a growth of 7.33 per cent.
Basic Chemicals and Pharmaceuticals & Cosmetics
and Rubber, Glass & Other Products have registered
a positive growth and Residual Chemicals and
allied products and Plastic & linoleum registered a
negative growth.

Agriculture and Allied Products

Agriculture and Allied Products as a group include
Cereals, Pulses, Tobacco, Spices, Nuts and Seeds,
Oil Meals, Guargum Meals, Castor Oil, Shellac,
Sugar & Molasses, Processed Food, Meat & Meat
Products, etc. During 2012-13 (AprilJanuary),
exports of commodities under this group registered
a growth of 27.57 per cent with the value of
exports increasing from US $ 21353.59 million in
the previous year to US $ 27240.35 million during
the current year.

Engineering Goods
Items under this group consist of Machinery,
Iron & Steel and Other Engineering items. Export
from this sector during the period 2012-13(AprilJanuary) stood at US $ 45543.37 million compared
with US $ 47966.60 million during the same
period of the previous year, registering a negative
growth of 5.05 per cent. The growth in export of
Other Engineering items stood at 5.78 per cent,
Machinery & Instruments stood at 3.53 per cent
and Machine Tools stood at 4.59 per cent.

Ores and Minerals

Exports of Ores and Minerals were estimated
at US $ 4389.03 million during 2012-13 (AprilJanuary) registering a negative growth of
35.48 per cent over the same period of the
previous year. Sub groups viz. Iron Ore, Mica,
Other ores & minerals and Coal have recorded
a negative growth of 64.99 per cent, 0.80 per
cent, 9.46 per cent and 5.24 percent respectively.
Processed minerals registered a growth of 12.14
per cent.

Electronic Goods
During the period 2012-13 (April-January), exports
of Electronic Goods as a group was estimated at
US $ 7102.84 million compared with US $ 7441.50
million during the corresponding period of last year,
registering a negative growth of 4.55 per cent.

Leather and Leather Manufactures

Export of Leather and Leather Manufactures
recorded a negative growth of 2.22 per cent during
2012-13 (April-January). The value of exports
decreased to US $ 3973.92 million from US $
4064.33 million during the same period of the
previous year. Exports of Leather and Manufactures
have registered a growth of 3.98 per cent and
Leather Footwear registered a negative growth of
10.01 per cent.

Textiles
During the period 2012-13 (April-January), the value
of Textiles exports was estimated at US $ 21200.12
million compared with US $ 22447.75 million in
the corresponding period of the previous year,
recording a negative growth of 5.56 per cent. The

31

Annual Report 2012-13

export of Readymade Garments, Manmade Textiles
& Made Ups, Natural Silk Textiles, Wool and Woolen
manufactures, Coir and coir manufactures and Jute
manufactures registered negative growth of 7.80
per cent, 12.61 per cent, 23.34 per cent, 19.98 per
cent, 7.18 per cent and 16.37 per cent respectively.
However, Cotton yarn/Fabrics/Made-ups etc.
registered a positive growth of 6.38 per cent.

as compared with US $ 46489.12 million during the

same period of last year recording a growth of 4.57
per cent.

Cotton Raw including Waste

There was a negative growth in the exports of
Cotton Raw including waste by 21.13 per cent from
US $ 3326.67 million in 2011-12 (April-January)
to US $ 2623.68 million during 2012-13 (AprilJanuary).

Handicrafts and Carpets

Exports of Handicrafts declined to US $ 180.51
million during 2012-13 (April- January), from US $
214.84 million during the corresponding period of
the previous year registering a negative growth of
15.98 per cent. Export of carpets increased to US $
812.17 million from US $ 699.26 million during the
same period last year registering a growth of 16.15
per cent.

Imports of Principal Commodities

Disaggregated data on imports of principal
commodities, both in Rupee and Dollar terms,
available for the period 2012-13 (April January),
as compared to the corresponding period of the
previous year are given in Appendix at Table 3.5
and Table 3.6 respectively. Imports of the top five
commodities during the period 2012-13 (AprilJanuary) registered a share of 61.8 per cent mainly
due to significant imports of Petroleum (Crude
& Products), Gold, Electronic Goods, Machinery
except electrical and electronic and Pearls, precious
and semi-precious stones.

Project Goods
During 2012-13 (April-January), the export of
Project Goods were estimated at US $ 87.70
million compared with US $ 44.10 million during
the corresponding period of last year registering a
substantial growth of 98.88 per cent.

Petroleum Products

The share of top five Principal Commodity in Indias

total imports during 2012-13 (April January) is
given at Chart 3.5.

Export of Petroleum Products increased to US $

48613.38 million during 2012-13 (April- January),

32

CHAPTER-3

Trends in Indias Foreign Trade

The import performance by growth of top five Principal commodities during 2012-13 (AprilJanuary) visa-vis the corresponding period of the previous year is shown at Chart 3.6.

Fertilizers
During 2012-13 (April January), import of
Fertilizers (manufactured) decreased to US $
6991.61 million from US $ 8718.13 million in AprilJanuary 2011-12 recording a negative growth of
19.80 per cent.

and Electrical Machinery. Import of Machine

Tools, Non-Electrical Machinery, and Electrical
Machinery registered a negative growth of 4.67
per cent, 6.94 per cent, 6.45 per cent respectively
and Transport Equipment registered a positive
growth of 0.04 per cent.

Petroleum Crude & Products

Organic and Inorganic Chemicals

The import of Petroleum Crude & Products stood

at US $ 140729.62 million during 2012-13 April January as against US $ 125871.43 million during
the same period of the previous year registering a
growth of 11.80 per cent.

During 2012-13 (AprilJanuary), import of

Organic and Inorganic Chemicals increased to US
$ 16116.77 million from US $ 15837.29 million
during the same period of last year, registering
a growth of 1.76 per cent. Import of Medicinal
and Pharmaceutical Products increased to US $
2550.01 million from US $ 2446.88 million during
the corresponding period of last year registering
a growth of 4.21 per cent

Pearls, Precious and Semi-Precious Stones

Import of Pearls, Precious and Semi-Precious
Stones during 2012-13 (April January) decreased
to US $ 17696.44 million from US $ 26339.27
million during the corresponding period of the
previous year registering a substantial decline of
32.81 per cent.

Coal, Coke & Briquettes

During 2012-13 (AprilJanuary), import of Coal,
Coke & Briquettes decreased to US $ 13301.43
million from US $ 14851.58 million during the same
period of last year, registering a negative growth of
10.44 per cent.

Capital Goods
Import of Capital Goods, largely comprises
of Machinery, including Transport Equipment

33

Annual Report 2012-13

Gold & Silver

countries (27) comprises 16.99 per cent. During

the period, USA (12.89 per cent) has been the
most important country of export destination
followed by UAE (12.20 per cent), Singapore (4.79
percent), China (4.59 per cent) and Hong Kong
(3.95 per cent).

During 2012-13 (AprilJanuary) import of Gold and

Silver decreased to US $ 46769.39 million from
US $ 51751.03 million during the corresponding
period of the previous year registering a negative
growth of 9.63 per cent.

Asia accounted for 60.08 per cent of Indias total

imports during the period followed by Europe
(17.39 per cent) and America (11.64 per cent).
Among individual countries the share of China
stood highest at (11.21 per cent) followed by
UAE (7.67 per cent), Saudi Arabia (6.78 per cent),
Switzerland (6.01 per cent) and USA (5.00 per
cent).

Direction of Indias Foreign Trade

The value of Indias exports and imports from major
regions/ countries both in Rupee and Dollar terms
are given in Appendix at Table 3.3, 3.4, 3.7 and 3.8
respectively. Share of major destinations of Indias
Exports and sources of Imports during 2012-13 (April
January) are given in Chart 3.7 and 3.8 respectively.

During the period 2012-13 (AprilJanuary), the

share of Asia comprising of East Asia, ASEAN,
West Asia, Other West Asia, North East Asia and
South Asia accounted for 50.78 per cent of Indias
total exports in US $ terms. The share of Europe
and America in Indias exports stood at 18.88 per
cent and 18.77 per cent respectively of which EU

34