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.
India’s 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, India’s 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), India’s 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 India’s 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.
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 jewellery, petroleum products, agriculture and allied products, chemical and related products and ores and minerals.
The share of top five principal commodity groups in India’s total exports during 2009-10 (April-September) is given at figure:
- 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.
- 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.
- 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: Growth (In U.S. S Terms) of Top Five Commodity Groups in India’s 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.
- Gems and Jewellery
The export of gems and jewellery 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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
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