India’s Foreign Trade: Direction and Composition of Trade
1. India’s Foreign Trade: Direction and
Composition of Trade
Presented by
Range Gowda
I Ph.D (Agril. Economics)
2. INTRODUCTION
Trade between two or more nations is called foreign trade or
international trade
Foreign trade is also known as external trade.
Foreign
trade
transaction
Import
trade
Export
trade
Net Exports
3. Importance
Development of the Economy
Meeting the shortages
Imports for better living standard
Improving quality of production
Growth of the Economy- Production; Employment;
Expansion; Demand of other goods; utilization of
resources
Source of Foreign Exchange
IMPORTS
4. India’s merchandise exports reached a level of US $ 312.61 billion during
2013-14 registering a growth of 4.06 percent as compared to a negative growth
of 1.82 percent during the previous year.
Exports recorded a growth of 4.06 per cent during Apr-Mar 2013-14.
The Government had set an export target of US $ 325 billion for 2013-14.
The merchandise exports have reached US $ 312.61 billion in 2013-14. Export
target and achievement from 2004-05 to 2013-14 is given in the Fig.1
6. Table 1.Trade Data for period 2004-05 to
2013-14 Rs Crores
Source: DGCI&S, Kolkata
7. Foreign trade has played a crucial role in India s economy and its
growth
The composition and direction of foreign trade has undergone
substantial changes particularly after the liberalization process which
began in early 1990’s.
Over the years, India's trade with other countries have gone up
substantially. Apart from that, India is now a major player in global
trading systems and all the major sectors of Indian economy are
linked to the world outside either directly or indirectly through
international trade.
8. Composition
Export Import
Fuels, capital goods,
chemicals, food grains,
Petroleum products, Capital
goods ,Pearls and precious
gems, Iron and steel
Fertilizers ,edible oil
Manufactured goods
textiles , Gems and
Jewellery, Handicraft,
Light machinery etc.
9. IMPORTS
It refers to goods that we buy from other countries.
At times of independence India was an agrarian economy.
Partition of our country has brought food shortage because wheat
growing regions vested with Pakistan.
Hence India need to import in large quantities, food , cotton jute. Etc
10. With development of economy over these days, there occurred
changes in composition of imports.
The development required setting up of industries modernization of
agriculture etc.
Capital goods like machinery chemicals fertilizers metals minerals
petroleum products etc.
Contd..
11. EXPORTS
Exports means that we are selling commodities to other countries.
At the time of independence our exports comprise of agricultural
products like tobacco, spices, raw materials of cotton and jute etc.
Due to industrialization the proportion of raw materials in our exports
declined.
12. DIRECTION OF INDIA’S FOREIGN
TRADE
Direction means countries to which India exports its goods and
countries from which it imports.
Direction of trade also helps to understand the diplomatic
relationship maintained by India with other countries of trade.
West Europe (28.1 per cent), America (25.4 per cent), Africa
(6.3 per cent) and East Europe (3.1 per cent).
13. Group of countries to which India Exports
OECD OPEC
EASTERN
EUROPE
ASEAN
14. Organization for
Economic Co-
operation &
Development
(OECD).
• USA,
Canada,
European
Union (EU),
Australia
and Japan
Organization of
Petroleum
Exporting
Countries (OPEC)
• Kuwait,
Iran, Iraq,
Saudi
Arabia and
others.
Eastern Europe.
• Romania,
Russia and
others
Developing
Nations
• China,
Hong Kong,
South
Korea,
Singapore
and
Malaysia.
Contd..
15. Rank Country Apr-Oct 2013 Apr-Oct 2014 %Growth %Share
1 U S A 1,38,361.69 1,56,989.51 13.46 13.99
2 U ARAB 1,06,301.59 1,18,755.34 11.72 10.58
3 SAUDI ARAB 44,574.68 48,892.93 9.69 4.36
4 HONG KONG 46,268.35 48,174.01 4.12 4.29
5 CHINA 43,553.83 41,049.86 -5.75 3.66
6 SINGAPORE 51,821.36 34,751.25 -32.94 3.1
7 U K 33,009.03 33,334.27 0.99 2.97
8 BRAZIL 17,541.28 28,308.36 61.38 2.52
9 GERMANY 25,330.86 27,134.18 7.12 2.42
10 NETHERLAND 29,841.05 22,915.51 -23.21 2.04
11 SRI LANKA 13,774.66 22,381.28 62.48 1.99
12
SOUTH
AFRICA
18,243.74 22,368.88 22.61 1.99
13 BANGLADESH 19,292.92 21,677.57 12.36 1.93
14 VIETNAM 16,291.64 21,369.50 31.17 1.9
15 BELGIUM 21,547.40 20,267.13 -5.94 1.81
Total 10,80,203.40 11,22,499.74 3.92 100
Values in Rs. Crores
Source: (DGCI&S), Kolkata
Table 2. Top 15 Countries of Export (2013-
2014)
17. 13.99
10.58
4.36
4.29
3.66
3.1
2.97
2.52
2.42
2.04
1.99
1.99
1.93
1.9 1.81
1 U S A
2 U ARAB
3 SAUDI ARAB
4 HONG KONG
5 CHINA
6 SINGAPORE
7 U K
8 BRAZIL
9 GERMANY
10 NETHERLAND
11 SRI LANKA DSR
12 SOUTH AFRICA
13 BANGLADESH
14 VIETNAM
15 BELGIUM
Fig. 3 Top 15 countries % Share in Export 2013-14
Source: DGCI&S, Kolkata
18. Rank Country Apr-Oct 2013 Apr-Oct 2014 %Growth %Share
1 CHINA 182780.64 210531.91 15.18 12.76
2 SAUDI ARAB 125972.38 115854.96 -8.03 7.02
3 U ARAB 110228.82 99425.31 -9.8 6.03
4 SWITZERLAND 77638.23 78953.48 1.69 4.79
5 U S A 85294.26 74775.57 -12.33 4.53
6 IRAQ 69632.05 59472.33 -14.59 3.61
7 QATAR 51771.75 57953.07 11.94 3.51
8 KUWAIT 62476.6 56084.46 -10.23 3.4
9 NIGERIA 45226 55214.16 22.09 3.35
10 INDONESIA 50493.38 51555.86 2.1 3.13
11 VENEZUELA 52390.42 48347.22 -7.72 2.93
12 KOREA RP 44509.77 47931.73 7.69 2.91
13 GERMANY 44901.09 44943.11 0.09 2.72
14 MALAYSIA 32752.77 41564.97 26.91 2.52
15 BELGIUM 36770.14 39733.32 8.06 2.41
Total 1590363.02 1649496.64 3.72 100
Source: DGCI&S, Kolkata
Values in Rs. CroresTable 3 .15 Countries of Import
29. 0.51
10.27
1.61
1.79
1.82
13.24
0.08
13.99
19.63
2.45
0.02
9.7
0.09
0.33
1.17
20.12
3.2
Fig. 11 Export of Principal Commodities Groups
% Share (2013-14)
A) PLANTATION
B) AGRI & ALLIED PRDTS
C) MARINE PRODUCTS
D) ORES & MINERALS
E) LEATHER & MNFRS
F) GEMS & JEWELLERY
G) SPORTS GOODS
H) CHEMICALS & RELATED PRODUCTS
I) ENGINEERING GOODS
J) ELECTRONIC GOODS
K) PROJECT GOODS
L) TEXTILES
M) HANDICRAFTS
N) CARPETS
O) COTTON RAW INCL WASTE
P) PETROLEUM PRODUCTS
Q) UNCLASSIFIED EXPORTS
30. Table 7. Import of Principal Commodities Groups 2013-
2014
Commodity Apr-Mar 2013 Apr-Mar 2014 %Growth %Share
A) BULK IMPORTS 12,10,529.52 12,90,386.27 6.6 47.52
B) PEARLS, PRECIOUS & SEMI-
PRECIOUS STONES
1,23,043.23 1,44,167.22 17.17 5.31
C) MACHINERY 2,83,054.87 2,76,846.86 -2.19 10.2
D) PROJECT GOODS 35,658.51 27,442.24 -23.04 1.01
E) OTHERS 10,16,700.06 9,76,373.77 -3.97 35.96
Total 26,69,161.95 27,15,433.90 1.73 100
Source: DGCI&S, Kolkata
Values in Rs. Crores
31. 6.6
17.17
-2.19
-23.04
-3.97
A) BULK IMPORTS B) PEARLS
ANDPRECIOUS
STONES
C) MACHINERY D) PROJECT
GOODS
E) OTHERS
Fig.12 Import of Principal Commodities Groups
2013-2014 % Growth
Source: DGCI&S, Kolkata
32. 47.52
5.31
10.21.01
35.96
Fig. 13 Import of Principal Commodities Groups
2013-2014 %Share
A) BULK IMPORTS
B) PEARLS ANDPRECIOUS
STONES
C) MACHINERY
D) PROJECT GOODS
E) OTHERS
Source: DGCI&S, Kolkata
33. Table 8. Import by Region India
2013-2014Region Apr-Oct 2013 Apr-Oct 2014(P) %Growth %Share
1) Europe 2,57,950.06 2,57,687.52 -0.1 15.62
1.1 EU Countries 1,75,161.91 1,71,111.07 -2.31 10.37
1.2 European Free Trade Association (EFTA) 79,494.22 81,199.90 2.15 4.92
1.3 Other European Countries 3,293.93 5,376.55 63.23 0.33
2) Africa 1,28,077.64 1,48,080.27 15.62 8.98
2.1 Southern African Customs Union (SACU) 24,668.44 26,166.80 6.07 1.59
2.2 Other South African Countries 22,581.21 20,910.81 -7.4 1.27
2.3 West Africa 57,798.12 79,689.17 37.88 4.83
2.4 Central Africa 475.46 937.44 97.17 0.06
2.5 East Africa 3,480.37 4,509.45 29.57 0.27
2.6 North Africa 19,074.06 15,866.62 -16.82 0.96
3) America 1,99,364.70 2,04,886.70 2.77 12.42
3.1 North America 1,08,231.28 99,028.64 -8.5 6
3.2 Latin America 91,133.42 1,05,858.06 16.16 6.42
4) Asia 9,72,654.69 9,82,078.67 0.97 59.54
4.1 East Asia (Oceania) 36,871.44 37,530.24 1.79 2.28
4.2 ASEAN 1,45,355.99 1,60,189.17 10.2 9.71
4.3 West Asia- GCC 3,64,202.50 3,38,675.39 -7.01 20.53
4.4 Other West Asia 1,13,868.61 1,09,977.42 -3.42 6.67
4.5 NE Asia 3,04,478.28 3,26,447.30 7.22 19.79
4.6 South Asia 7,877.88 9,259.15 17.53 0.56
5) CIS & Baltics 25,746.61 30,503.73 18.48 1.85
5.1 CARs Countries 1,704.43 3,834.90 125 0.23
5.2 Other CIS Countries 24,042.18 26,668.84 10.93 1.62
6) Unspecified Region 6,561.25 26,186.97 299.12 1.59
Total 15,90,363.02 16,49,496.64 3.72 100
Values in Rs. Crores
34. Regions (countries) Apr-Oct 2013 Apr-Oct 2014 % Growth % Share
1) Europe 2,57,950.06 2,57,687.52 -0.1 15.62
2) Africa 1,28,077.64 1,48,080.27 15.62 8.98
3) America 1,99,364.70 2,04,886.70 2.77 12.42
4) Asia 9,72,654.69 9,82,078.67 0.97 59.54
5) CIS & Baltics 25,746.61 30,503.73 18.48 1.85
6) Unspecified Region 6,561.25 26,186.97 299.12 1.59
Total 15,90,363.02 16,49,496.64 3.72 100
Source: DGCI&S, Kolkata
Table 9. Import by Region India
2013-2014 Values in Rs. Crores
35. 15.62
8.98
12.42
59.54
1.85 1.59
Fig. 14 Import by Region India 2013-2014
%Share
1) Europe
2) Africa
3) America
4) Asia
5) CIS & Baltics
6) Unspecified Region
Source: DGCI&S, Kolkata
36. Region Apr-Oct 2013 Apr-Oct 2014 %Growth %Share
1) Europe 1,97,857.81 2,00,017.00 1.09 17.82
1.1 EU Countries 1,76,765.43 1,75,256.71 -0.85 15.61
1.2 European Free Trade Associatipn (EFTA) 8,381.81 4,494.31 -46.38 0.4
1.3 Other European Countries 12,710.57 20,265.98 59.44 1.81
2) Africa 1,02,428.35 1,25,376.38 22.4 11.17
2.1 Southern African Customs Union (SACU) 19,738.12 23,131.75 17.19 2.06
2.2 Other South African Countries 6,796.66 12,513.79 84.12 1.11
2.3 West Africa 24,571.90 25,196.60 2.54 2.24
2.4 Central Africa 3,601.79 4,238.47 17.68 0.38
2.5 East Africa 29,770.03 39,132.24 31.45 3.49
2.6 North Africa 17,949.85 21,163.53 17.9 1.89
3) America 1,87,482.67 2,22,092.91 18.46 19.79
3.1 North America 1,51,645.44 1,74,292.29 14.93 15.53
3.2 Latin America 35,837.23 47,800.63 33.38 4.26
4) Asia 5,31,151.26 5,52,240.93 3.97 49.2
4.1 East Asia (Oceania) 9,267.40 11,825.87 27.61 1.05
4.2 ASEAN 1,20,091.96 1,08,631.00 -9.54 9.68
4.3 West Asia- GCC 1,69,071.42 1,85,766.51 9.87 16.55
4.4 Other West Asia 43,996.66 41,560.55 -5.54 3.7
4.5 NE Asia 1,34,378.83 1,34,384.92 0 11.97
4.6 South Asia 54,344.98 70,072.09 28.94 6.24
5) CIS & Baltics 11,746.08 12,133.88 3.3 1.08
5.1 CARs Countries 1,713.55 2,074.83 21.08 0.18
5.2 Other CIS Countries 10,032.53 10,059.06 0.26 0.9
6) Unspecified Region 49,316.20 10,322.38 -79.07 0.92
Total 10,80,203.40 11,22,499.74 3.92 100
Table 10. Export by Region India 2013-2014 Values in Rs. Crores
37. Region Apr-Oct 2013 Apr-Oct 2014 % Growth % Share
1) Europe 1,97,857.81 2,00,017.00 1.09 17.82
2) Africa 1,02,428.35 1,25,376.38 22.4 11.17
3) America 1,87,482.67 2,22,092.91 18.46 19.79
4) Asia 5,31,151.26 5,52,240.93 3.97 49.2
5) CIS & Baltics 11,746.08 12,133.88 3.3 1.08
6) Unspecified Region 49,316.20 10,322.38 -79.07 0.92
Total 10,80,203.40 11,22,499.74 3.92 100
Source: DGCI&S, Kolkata
Table 11. Export by Region India
2013-2014 Values in Rs. Crores