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Value of imports in IFFY is $490. 3 billion. – Indian’s import in Petroleum and related items accounted for 34. 5% of imports of the country . – Capital products and Chemicals are another key imported items – The direction of Indian’s import closely follows the same country composition as exports. Most of the import countries are from Asia (China, Middle East etc. Followed by Europe and America. In last a decade, imports from both Asia and America had shown increasing trend and from Europe it has shown decreasing trend.
Contents Introduction : 3 Indian’s Exports profile: 4 The basket of Exports 4 The Direction of Exports 6 Indian’s Imports profile: 7 The basket of Imports: 7 Direction of Imports 8 Conclusion 10 Introduction : In the last decade, Indian’s foreign trade has experienced a big transformation in terms of composition and direction of the trade. While value of the trade and volume increased significantly, the composition of trade basket remain almost same. However the direction of the trade has registered some shifts from IFFY to IFFY.
In the following sections, a detail analysis is done with the trade data and direction of the trade to provide a reasonable conclusion. In 2009 trade policy which was declared during economic crisis, India Gobo kept the short-term objective of resolving the downward trend of exports and to provide additional support to those sectors badly hit by the recession in the developed world. So a policy objective of achieving an annual export growth of 15% is set with annual export target of $200 billion by March 2011 and in the 3 years the country was expected to have CARR of around 25% per annum.
However, the growth target after 2012 became too optimistic as exports declined sharply in FYI 13. In this analysis Indian’s export data is analyses along with commodity mix (basket) and then the direction of the export and the trend in change of that with the probable reasons. The analysis is continued for Import basket and the change in direction and after that a conclusion is made on the overall findings. Indian’s Exports profile: Indian’s exports growth showed a robust annual average rate
Major manufactured goods, exported by India include engineering goods, chemicals and related products, textiles and ready-made garments. – Agric and allied products have registered high growth of 22. 2% (CARR, IFFY-IFFY) and stood at USED 40. 6 billion in IFFY. Major Agric and allied commodities exported by India include bassist rice, marine products, meat and meat products, oil meals, spices, wheat and sugar. – Export of Petroleum & Crude products had shown a growth to $60. 2 billion – 41. 9% (CARR, IFFY-IFFY). – The export of ores and minerals has grown by 12. % (CARR, IFFY-IFFY), to touch $5. Billion IFFY,. In the overall exports, the share of different commodities and their changes are shown below. Although the Agriculture and allied products, ores and minerals and other commodities has moved in a range-bound fashion, but there has been some shifts from the manufactured goods to the petroleum and crude products segment between IFFY and IFFY. Also it’s important to note that manufactured goods and petroleum and crude products have accounted for 81. 2% of overall exports in IFFY and IFFY.
But the share of manufactured goods has dropped from 76. 3% in IFFY to 61. % in IFFY and Share of petroleum and crude products has risen considerably, from 4. 9% Fatality. 1% IFFY. Fig-3 The Direction of Exports Asia is Indian’s largest export partner where exports have grown by more than 23. 0% (CARR), from USED 22. 2 billion in IFFY to USED 150. 4 billion IFFY. The next largest export destination is Europe (USED 58. 8 billion in FYI 3), followed by America (USED 53. 4 billion). Also one interesting point to note here that the direction of exports have shifted towards Asian Zone.
Fig – 4 Fig-5 Although, nominally speaking, trade with Europe and America has risen over the 10 ear period under consideration their share in overall exports has declined. Share of exports to Europe declined from 25. 7% in IFFY to 19. 6% in IFFY, while that of America came down from 24. 6% in IFFY to 17. 8% in IFFY. Coupled with increased trade integration with Asia, this shift of export direction away from America and Europe may be attributed to the moderation in economic activity in these countries, which has caused import demand from these countries (I. E. Exports from India and others) to contract.
Asia has emerged as an engine of growth in the world accounting for round one fifth of world GAP. In 2003-2004, total Asian trade amounted to US$2388 billion, or above a quarter of world trade (26. 8 per cent). Leant-Asian export increased from 12. 6% of world trade in 2003 to 13. 5% in 2004. Intra-SEAN exports is close to 22% of the Ass’s total exports in 2004, the shares of NONFAT at 55% and EX.-25 at 67% were much higher. India had taken the “Look East” policy in 1991 and East Asia including Japan, China, South Korea and SEAN countries are Indian’s largest trading partner now, surpassing EX. and the USA.