Trends of Indian Foreign Trade

INSTITUTE OF MANAGEMENT STUDIES
PROJECT REPORT
for
SUBJECT: ENVIRONMENT AND

ECONOMICSPOLICIES
on
TOPIC: Composition and trends of Indian foreign trade over

past 5 years
SUBMITTED TO: SUBMITTED BY:

DR. TAPAN KUMAR NAYAK Aditya Pal Singh (BM-09015)
Aditya Srivastav (BM- 09016)
Akanchha Nayak (BM- 09017)
Akansha Aggarwal (BM- 09018)
Akansha Awasthi (BM-09019)
1
GROUP MEMBERS
SL. NO. NAME ROLL NO.

1 Aditya Pal Singh BM- 09 015
2 Aditya Srivastav BM- 09 016
3 Akanchha Nayak BM- 09 017
4 Akansha Aggarwal BM- 09 018
5 Akansha Awasthi BM- 09 019
2
DECLARATION
We hereby declare that the report on “COMPOSITION OF FOREIGN TRADE OF INDIA

OVER 5 PAST YEARS” Is written under the guidance of Mr. Tapan Kumar Nayak .The
empirical conclusion and finding in the report are based on the data collected by us
and the entire report is not a reproduction of any other sources.
---------------------- ------------------------- ------------------------

Aditya Pal Singh Aditya Srivastav Akanchha Nayak
(BM-09015) (BM-09016) (BM-09017)
---------------------- ----------------------
Akansha Aggarwal Akansha Awasthi
(BM-09018) (BM-09019)
3
VERIFICATION CERTIFICATE
Hereby it is certified that the project work entitled “Composition and trends of Indian
foreign trade over past 5 years” is a work carried out by
Aditya Pal Singh ROLL NO. BM-09015

Aditya Srivastav ROLL NO. BM-09016
Akanchha Nayak ROLL NO. BM-09017
Akansha Aggarwal ROLL NO. BM-09018
Akansha Awasthi ROLL NO. BM-09019
It is certified that all the subjective matter carry out by them is verified truly authentic. The
project report has been approved as it satisfies the academic requirements in respect of Project
Work.
--------------------------------
Mr. Tapan Kumar Nayak
Faculty Member,
Business Economics,
IMS, Ghaziabad.
4
ABSTRACT
“No book is the work only of its authors”.
We would like to express our heartfelt thanks to many people. This Project is an effort to contribute
towards achieving the desired objectives. In doing so, we have optimized all available resources and
made use of some external resources, the interplay of which, over a period of time, led to the
attainment of the set goals. We, through the following line, would like to make our gratitude for
these people known.
It is our heartfelt honor to thank Dr. Tapan kumar Nayak faculty and project guide for his
valuable guidance in successful completion of this project. This project would not have seen the
light of the day but for his sustained direction, supervision and continuous encouragement that saw
us sail through the difficulties faced. His freehandedness and enthusiasm had an infectious
influence. There are many more people whose contribution to this endeavor cannot be overlooked.
We express our sincere thanks to all the people who, directly or indirectly, contributed in time,
energy and knowledge to this effort.
I would like to express my sincere gratitude to Prof. Tapan Kumar Nayak for giving me the
chance to explore the underlying topic of composition of foreign trade of India I would also like to
thank Mr. Sanjeev Kumar Mangla who has guided us for this project without which this could not
have been accomplished.
I greatly acknowledge my indebtedness to all my team members and other staff members who
rendered direct or indirect help in completing the project.
5
ACKNOWLEDGEMENT
We would sincerely like to thank our project guide Dr. Tapan Kumar Nayak, for enabling
us to successfully carry out the project work through his constant guidance, endless support and
continuous involvement in the project.
It was really worthwhile to receive help from Mr. Sanjay Mangla, who in person was
always present to help us out in maintaining the system upon which we were working and helping
to resolve the problems that were proving to hinder our progress.
Finally, we owe a great deal of sincere thanks to the faculty members who have been of
great support from time to time along with our friends, who kept encouraging us all along.
----------------------- ------------------------- ------------------------

Aditya Pal Singh Aditya Srivastav Akanchha Nayak
(BM-09 015) (BM-09 016) (BM-09 017)
----------------------- -----------------------
Akansha Aggarwal Akansha Awasthi
(BM-09 018) (BM-09 019)
6
OBJECTIVE
Objective:- To study the composition and trends of Indian foreign trade over past 5 years and to
find if any relation exists between export and import.
7
INTRODUCTION
The economy of India is the 12th largest economy in the world by market exchange rates and the 4 th
largest by Purchasing Power Parity (PPP). In 1990s, following the economic reforms from a
socialist-inspired economy, the country began to experience swift economic growth, as market
opened for international competition. In the 21st century, India is an emerging power with vast
human and natural resources, and huge knowledge base. Economists predict that by 2020, India will
be among the largest economies of the world.
India was under socialistic democratic-based policies from 1947 to 1991. The economy was
characterized by regulations and public ownership, leading to corruption and slow growth rate.
Since 1991 continuing economic liberalization has moved the economy towards a market based
system. A revival of economic reforms and better economic policy in 2000s accelerated India's
economic growth. In 2008 India established itself as the world's 2nd largest growing economy.
However, year 2009 saw a significant slowdown in India's official GDP growth rate to 6.1% as well
as the return of a large projected fiscal deficit of 10.3% of GDP.
The international trade has been growing faster than world output indicates that the international
market is expanding faster than the domestic markets. There are indeed many Indian firms too
whose foreign business is growing faster than the domestic business. This is manifested/
necessitated/ facilitated by the following facts:
(a) The Competitive business Environment

(b) Globalization
(c) The universal liberalization Policy.
Table - 1 Growth of World Merchandise Exports
Year Value of merchandise exports

(in Billions of US$)
1950 55
1960 113
1970 280
1980 1846
1990 3311
2000 6350
2008 6621
Source:- www.wto.org
Table-1 shows the growth of world merchandise exports. The table indicates that during 1950-60,
the value of world exports become double. In the next 10 years it increased nearly 2 ½ times.
During 1970s, the value of the world exports increased by about 5 ½ times. Worldwide inflation,
particularly the successive hikes in oil prices, significantly contributed to sharp increase in the value
8
of exports. During 1980-90, the value of world exports increased by 80%. Between 1990-2000, it
increased by over 90%. In fact, exports of developing countries have been increasing faster than
those of the developed.
The Second half of the 20th century has seen trade expansion substantially faster than output. In the
last two decades of the 20th century, world trade has grown twice as fast as world real GDP
(6%versus 3%).
India presented an interesting case. There was near stagnation in its foreign trade-GDP ratio for
about four decades since the commencement of development planning. During this period it was
around 15%. The inward looking economic policy, import compression and slow progress on the
export front were responsible. Since the economic liberalization, in 1991 there has however, been
an increase in India’s foreign trade-GDP ratio – it is about 20% now.
Meanings of International Trade:-
Internal trade refers to the exchange of goods and services between the buyers and sellers within
the political boundaries of the same country. It may be carried on either as a wholesale trade or a
retail trade.
External trade or international trade, is the trade between different countries i.e. it extends beyond
the political boundaries of the countries. In other words, it is the trade between two countries.
Hence, it is also known as foreign trade.
Trading with nations beyond the seas is however not new to Indians. Evidences about our
international trade are found in the ancient literatures of our country. But the volume of such trade
was insignificant and continued to remain so tight through the middle ages and up to the advent of
the British rule in India. It is only after the British rule that India’s foreign trade took a definite
shape.
International trade on large scale has become a phenomenon of the 20th century especially after the
IInd World War. There is practically no country today, which is functioning as a closed system. Even
socialist countries like Russia and China are now taking concrete steps to capture foreign markets
for the products produced in their country. International trade, thus, has become as essential
ingredient of the normal economic life of any country.
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Similarities and Differences between Internal and International Trade:-
The general procedure and operations are similar to both internal trade and international trade.
The following are the similarities between the two:-
1.Satisfaction of Consumer: In domestic trade and in international trade, success depends

upon effectively satisfying the basic requirements of the consumers.
2. Goodwill Creation: It is necessary to build goodwill both in the domestic market as well as
in the international market. If a firm is able to develop goodwill of the consumers, its task
will be much simpler than the one, which is not able to build up its own reputation. In both
the cases, the seller should take all positive measures to gain the confidence of the
consumers in his product.
3.Market Research: The marketing program should be formulated after a careful market
research. Failure to assess the target market shall ultimately bring failure in the task of
marketing.
4.Product Planning and Development: Research and development with a view to product
improvement is necessary in both internal and international trade. The marketer should keep
a constant watch over the changes occurring in the consumer’s tastes and the preferences
and develop or modify his product to suit the needs of his customers.
However, there are certain special features, which differentiate internal trade from international
trade. The difference are as follows:-
1.Demand and Supply: Demand and supply can`t work out their full effects where foreign
trade is concerned. Where as such factors can work out their full efforts in the case of
internal trade.
2.Physical Obstacle to Commerce: Where international trade is carried on, a far greater degree
of inequality between conditions of production in different countries is necessary to
stimulate trade when the countries are widely separated than when they are adjoining.
3.Artificial Barriers to Trade: The natural difficulties may be increased by artificial barriers to
trade, either through prohibitive laws as in war time of through customs duties or protective
tariffs.
4.Obstacles of Mobility of Capital: Men who refuse to leave their own land may invest capital
abroad. A foreign loan must offer a much higher rate of interest than a home loan. Not only
is there a real risk of loss of interest and even capital, but an investor feels a sense of
insecurity when money is invested abroad.
5.Differences in Economic Environment from country to country: Different countries may

have different facilities for carrying out productive activities. Differences in system of
national and local taxation, regulations for health, factory organization, education and
insurance, policy regarding the transport and public utilities, laws relating to industrial
combinations and trade, etc., do exist between countries. These differences bring about a
10
difference in the costs of production.
6.The geographical and climatic conditions: they may give rise to territorial division of
labour and localization of industries. Some countries may have natural resources is
abundance such as iron ore, coal, etc., whereas in some other countries climatic conditions
give advantages to them.
7.Long-distance: International trade is generally of long-distance. This may affect the transport
costs and the cost of different factors of production.
8.Preference: Preference for home and the prejudice against foreigners remain as one of the
major factors that would explain as to why the rates of earning of the different of equal
efficiency would not be equalized between different countries.
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Benefits of International Trade
The various gains of international trade are as follows:
1.International Specialization: International trade enables to specialize in the production of

those goods in which each country has special advantages. Some countries are rich in
minerals and in hydroelectric power. Some are blessed with extensive land but have very
little population. In the absence of trade, every country will be forced to produce all types of
goods, even those for which they do not have facilities for production. International trade,
on the other hand, will enable each country to specialize in the commodities in which it has
absolute or comparative advantages. Thus, international trade brings about specialization
and also all other advantages associated with such specialization.
2.Increased Production and Higher Standard of Living: It is well known that specialization
leads to the following:
◦ Best utilization of resources.
◦ Concentration on the production of goods in which they have advantages.
◦ Saving of time and energy in production and perfecting the skills in production.
◦ Inventing and using new techniques of production.
All these indicate one basis advantage viz., increased production. Increased production will also
mean higher standard of living for people in both the countries.
3. Availability of Scarce Materials: International trade is the only method by which a

country can supplement its storage of resources or certain essential materials. There is no
country in the world which has all the resources it requires. At the same time, there are
some countries which have been blessed by nature with some rare materials.
International trade ensures equal access to raw materials for all countries.
4. Equalization of Prices between Countries: An important gain of international trade or

the effect of it is the tendency of internationally traded goods to have the same price
everywhere. Through international trade, supply is increased in the importing country
and thereby the prices are reduced.
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EXPORTS
13
Department of Commerce
System on Foreign Trade Performance Analysis (FTPA)
Export of Principal Commodities Groups
Dated: 4/12/2009
Values in Rs. Crores
Commodity Apr-Mar 2004 Apr-Mar 2005 %Growth %Share
A) PLANTATION 2,723.26 2,909.38 6.83 0.78
B) AGRI & ALLIED PRDTS 24,844.48 28,276.93 13.82 7.53
C) MARINE PRODUCTS 6,105.63 6,469.22 5.95 1.72
D) ORES & MINERALS 10,884.62 22,818.77 109.64 6.08
E) LEATHER & MNFRS 9,939.43 10,880.57 9.47 2.90
F) GEMS & JEWELLERY 48,586.07 61,833.71 27.27 16.47
G) SPORTS GOODS 455.48 459.60 0.90 0.12
H) CHEMICALS & RELATED PRODUCTS 45,768.06 59,148.06 29.23 15.76
I) ENGINEERING GOODS 48,324.44 69,118.23 43.03 18.41
J) ELECTRONIC GOODS 8,293.86 8,493.43 2.41 2.26
K) PROJECT GOODS 386.58 337.03 -12.82 0.09
L) TEXTILES 56,082.22 58,044.73 3.50 15.46
M) HANDICRAFTS 2,296.13 1,695.79 -26.15 0.45
N) CARPETS 2,691.23 2,859.58 6.26 0.76
O) COTTON RAW INCL WASTE 942.37 422.58 -55.16 0.11
P) PETROLEUM PRODUCTS 16,397.44 31,404.15 91.52 8.37
Q) UNCLASSIFIED EXPORTS 8,645.46 10,167.77 17.61 2.71
Total 293,366.75 375,339.50 27.94 100.00
Data Source: DGCIS, Kolkata DOC-NIC
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Top 10 Countries of Export
Dated: 7/12/2009
Rank Country Apr-Mar 2004 Apr-Mar 2005 %Growth %Share
1 USA 52,798.54 61,851.55 17.15 16.48
2 U ARAB EMTS 23,552.85 33,015.13 40.17 8.80
3 CHINA P RP 13,579.06 25,232.97 85.82 6.72
4 SINGAPORE 9,763.93 17,975.35 84.10 4.79
5 HONG KONG 14,988.52 16,587.91 10.67 4.42
6 UK 13,892.31 16,539.71 19.06 4.41
7 GERMANY 11,692.62 12,698.75 8.60 3.38
8 BELGIUM 8,297.56 11,276.48 35.90 3.00
9 ITALY 7,946.88 10,271.29 29.25 2.74
10 JAPAN 7,854.45 9,561.02 21.73 2.55
Total 293,366.75 375,339.50 27.94 100.00
Dated: 4/12/2009
A) PLANTATION 2,909.38 3,319.41 14.09 0.73
D) ORES & MINERALS 22,818.77 27,288.34 19.59 5.98
E) LEATHER & MNFRS 10,880.57 11,943.45 9.77 2.62
F) GEMS & JEWELLERY 61,833.71 68,752.59 11.19 15.06
G) SPORTS GOODS 459.60 595.87 29.65 0.13
K) PROJECT GOODS 337.03 654.81 94.29 0.14
L) TEXTILES 58,044.73 68,823.32 18.57 15.08
M) HANDICRAFTS 1,695.79 2,045.34 20.61 0.45
15
N) CARPETS 2,859.58 3,774.55 32.00 0.83
O) COTTON RAW INCL WASTE 422.58 2,904.35 587.29 0.64
Total 375,339.50 456,417.88 21.60 100.00
Dated: 7/12/2009
1 USA 61,851.55 76,828.09 24.21 16.83
2 U ARAB EMTS 33,015.13 38,038.85 15.22 8.33
3 CHINA P RP 25,232.97 29,924.91 18.59 6.56
4 SINGAPORE 17,975.35 24,019.65 33.63 5.26
5 UK 16,539.71 22,399.21 35.43 4.91
6 HONG KONG 16,587.91 19,796.10 19.34 4.34
7 GERMANY 12,698.75 15,877.02 25.03 3.48
8 BELGIUM 11,276.48 12,711.96 12.73 2.79
9 ITALY 10,271.29 11,152.67 8.58 2.44
10 JAPAN 9,561.02 10,985.39 14.90 2.41
Total 375,339.50 456,417.88 21.60 100.00
Dated: 4/12/2009
A) PLANTATION 3,319.41 3,938.51 18.65 0.69
D) ORES & MINERALS 27,288.34 31,685.96 16.12 5.54
E) LEATHER & MNFRS 11,943.45 13,650.38 14.29 2.39
F) GEMS & JEWELLERY 68,752.59 72,295.17 5.15 12.64
G) SPORTS GOODS 595.87 573.54 -3.75 0.10
K) PROJECT GOODS 654.81 622.43 -4.94 0.11
16
L) TEXTILES 68,823.32 74,391.06 8.09 13.01
M) HANDICRAFTS 2,045.34 1,981.91 -3.10 0.35
N) CARPETS 3,774.55 4,199.09 11.25 0.73
O) COTTON RAW INCL WASTE 2,904.35 6,107.81 110.30 1.07
Total 456,417.88 571,779.25 25.28 100.00
Dated: 7/12/2009
1 USA 76,828.09 85,368.48 11.12 14.93
2 U ARAB EMTS 38,038.85 54,444.98 43.13 9.52
3 CHINA P RP 29,924.91 37,529.78 25.41 6.56
4 SINGAPORE 24,019.65 27,461.61 14.33 4.80
5 UK 22,399.21 25,421.29 13.49 4.45
6 HONG KONG 19,796.10 21,179.38 6.99 3.70
7 GERMANY 15,877.02 18,007.23 13.42 3.15
8 ITALY 11,152.67 16,212.43 45.37 2.84
9 BELGIUM 12,711.96 15,721.71 23.68 2.75
10 JAPAN 10,985.39 12,953.61 17.92 2.27
Total 456,417.88 571,779.25 25.28 100.00
Data Source: DGCIS, Kolkata DOC-NI
Departmentof Commerce
Dated: 4/12/2009
A) PLANTATION 3,938.51 3,906.44 -0.81 0.60
C) MARINE PRODUCTS 8,001.04 6,926.67 -13.43 1.06
D) ORES & MINERALS 31,685.96 36,716.93 15.88 5.60
E) LEATHER & MNFRS 13,650.38 14,101.30 3.30 2.15
F) GEMS & JEWELLERY 72,295.17 79,227.74 9.59 12.08
G) SPORTS GOODS 573.54 539.94 -5.86 0.08
K) PROJECT GOODS 622.43 584.06 -6.16 0.09
L) TEXTILES 74,391.06 74,399.19 0.01 11.34
M) HANDICRAFTS 1,981.91 2,046.21 3.24 0.31
N) CARPETS 4,199.09 3,797.91 -9.55 0.58
O) COTTON RAW INCL WASTE 6,107.81 8,865.39 45.15 1.35
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Total 571,779.25 655,863.50 14.71 100.00
Data Source: DGCIS, Kolkata
Dated: 7/12/2009
1 USA 85,368.48 83,388.07 -2.32 12.71
2 U ARAB EMTS 54,444.98 62,915.03 15.56 9.59
3 CHINA P RP 37,529.78 43,597.41 16.17 6.65
4 SINGAPORE 27,461.61 29,662.23 8.01 4.52
5 UK 25,421.29 26,967.48 6.08 4.11
6 HONG KONG 21,179.38 25,385.25 19.86 3.87
7 NETHERLAND 12,082.48 21,038.46 74.12 3.21
8 GERMANY 18,007.23 20,598.93 14.39 3.14
9 BELGIUM 15,721.71 16,943.10 7.77 2.58
10 ITALY 16,212.43 15,748.13 -2.86 2.40
Total 571,779.25 655,863.50 14.71 100.00
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Dated: 4/12/2009
(P) Provisional
Commodity Apr-Mar 2008 Apr-Mar 2009(P) %Growth %Share
A) PLANTATION 3,906.44 4,943.39 26.54 0.59
D) ORES & MINERALS 36,716.93 35,874.05 -2.30 4.27
E) LEATHER & MNFRS 14,101.30 16,351.11 15.95 1.95
F) GEMS & JEWELLERY 79,227.74 127,424.33 60.83 15.17
G) SPORTS GOODS 539.94 660.12 22.26 0.08
K) PROJECT GOODS 584.06 626.05 7.19 0.07
L) TEXTILES 74,399.19 88,498.38 18.95 10.54
M) HANDICRAFTS 2,046.21 1,375.48 -32.78 0.16
N) CARPETS 3,797.91 3,564.09 -6.16 0.42
O) COTTON RAW INCL WASTE 8,865.39 2,865.85 -67.67 0.34
Total 655,863.50 839,977.94 28.07 100.00
Dated: 7/12/2009
(P) Provisional
Rank Country Apr-Mar 2008 Apr-Mar 2009(P) %Growth %Share
1 U ARAB EMTS 62,915.03 110,021.10 74.87 13.10
2 USA 83,388.07 95,750.58 14.83 11.40
3 CHINA P RP 43,597.41 42,661.32 -2.15 5.08
4 SINGAPORE 29,662.23 37,746.56 27.25 4.49
5 HONG KONG 25,385.25 30,639.15 20.70 3.65
6 UK 26,967.48 30,330.95 12.47 3.61
7 GERMANY 20,598.93 29,177.71 41.65 3.47
8 NETHERLAND 21,038.46 28,883.16 37.29 3.44
9 SAUDI ARAB 14,922.55 22,941.17 53.73 2.73
10 UNSPECIFIED 1,467.74 20,321.50 1,284.54 2.42
Total 655,863.50 839,977.94 28.07 100.00
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Trends in exports
Exports
S.No Commodity Apr-Mar 2004 Apr-Mar 2009(P) % Growth % Share
A) PLANTATION 2,723.26 4,943.39 81.52 0.58
D) ORES & MINERALS 10,884.62 35,874.05 229.58 4.27
E) LEATHER & MNFRS 9,939.43 16,351.11 64.50 1.94
F) GEMS & JEWELLERY 48,586.07 127,424.33 162.26 15.16
G) SPORTS GOODS 455.48 660.12 44.92 0.07
K) PROJECT GOODS 386.58 626.05 61.94 0.07
L) TEXTILES 56,082.22 88,498.38 57.80 10.53
M) HANDICRAFTS 2,296.13 1,375.48 -40.09 0.16
N) CARPETS 2,691.23 3,564.09 32.43 0.42
O) COTTON RAW INCL WASTE 942.37 2,865.85 204.11 0.34
Total 293,366.75 839,977.94 186.32 100
Trends in export
We will consider only the top 5 commodity group as it constitute 75.23% of total exports.
1. ENGINEERING GOODS:- Export of items under this group comprising

• Manufactures of Metals,
• Machinery and Instruments,
• Primary and Semi-finished Iron & Steel and
• Transport Equipment
this sector saw a growth rate of 13.04% over past 6 years which is nominal seeing to the growth of indian
economy.
2. GEMS & JEWELLERY:- This part saw a nominal growth of 15.16%
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3. PETROLEUM PRODUCTS:- This section consists of re-export of processed goods of
crude petroleum. This section constitute a good portion of indian exports to great surprise.
It growed by 14.6%
4. CHEMICALS & RELATED PRODUCTS:- Three out of the four sub-groups under this
head viz. Basic Chemicals, Pharmaceuticals & Cosmetics, Plastics & Linoleum, Rubber,
Glass.
This section saw a nominal growth of 13.04%
5. TEXTILES: This section mainly comprises of:-

1. wool
2.silk
3.jute,etc
this section saw a growth of 10.53%.
6. HANDICRAFT:- Another interesting section to discuss here is the handicraft section

which saw a decline which is opposite to all other sections. This section includes Metal Art
ware, Textiles (hand printed), Wood wares and Zari goods. It saw a decline of 40.09% this
may be due to the reason that it highly depends upon the taste and preference which may
change with time and region so that might be the possible reason for such an abrupt
behavior.
21
IMPORTS
22
Import of Principal Commodities Groups
Dated: 4/12/2009
A) BULK IMPORTS 134,451.00 190,393.36 41.61 38.00
PEARLS, PRECIOUS & SEMI-PRECIOUS
B) 32,757.32 42,337.70 29.25 8.45
STONES
C) MACHINERY 42,752.62 58,234.16 36.21 11.62
D) PROJECT GOODS 1,819.62 2,678.94 47.23 0.53
E) OTHERS 147,327.10 207,420.39 40.79 41.40
Total 359,107.66 501,064.56 39.53 100.00
Top 10 Countries of Import
Dated: 7/12/2009
1 UNSPECIFIED 95,366.52 120,794.15 26.66 24.11
2 CHINA P RP 18,625.14 31,892.31 71.23 6.36
3 USA 23,135.83 31,458.13 35.97 6.28
4 SWITZERLAND 15,222.52 26,688.96 75.33 5.33
5 U ARAB EMTS 9,465.27 20,853.17 120.31 4.16
6 BELGIUM 18,269.86 20,618.70 12.86 4.11
7 GERMANY 13,411.24 18,041.56 34.53 3.60
8 AUSTRALIA 12,173.59 17,184.18 41.16 3.43
9 UK 14,862.26 16,023.45 7.81 3.20
10 KOREA RP 13,000.48 15,765.42 21.27 3.15
Total 359,107.66 501,064.56 39.53 100.00
Data Source: DGCIS, Kolkata DOC-N
23
Dated: 4/12/2009
A) BULK IMPORTS 190,393.36 270,075.83 41.85 40.90
B) PEARLS, PRECIOUS & SEMI-PRECIOUS STONES 42,337.70 40,441.28 -4.48 6.12
C) MACHINERY 58,234.16 94,872.68 62.92 14.37
D) PROJECT GOODS 2,678.94 3,908.05 45.88 0.59
E) OTHERS 207,420.39 251,111.05 21.06 38.02
Total 501,064.56 660,408.88 31.80 100.00
Dated: 7/12/2009
1 UNSPECIFIED 120,794.15 109,830.28 -9.08 16.63
Trade to Unspecified
2 15,626.00 86,218.00 451.76 13.06
Countries
3 CHINA P RP 31,892.31 48,116.65 50.87 7.29
4 USA 31,458.13 41,859.46 33.06 6.34
5 SWITZERLAND 26,688.96 29,024.82 8.75 4.39
6 GERMANY 18,041.56 26,668.73 47.82 4.04
7 AUSTRALIA 17,184.18 21,906.15 27.48 3.32
8 BELGIUM 20,618.70 20,919.83 1.46 3.17
9 KOREA RP 15,765.42 20,205.77 28.17 3.06
10 U ARAB EMTS 20,853.17 19,277.04 -7.56 2.92
Total 501,064.56 660,408.88 31.80 100.00
24
Dated: 4/12/2009
A) BULK IMPORTS 270,075.83 380,740.54 40.98 45.30
C) MACHINERY 94,872.68 120,952.44 27.49 14.39
D) PROJECT GOODS 3,908.05 8,126.46 107.94 0.97
E) OTHERS 251,111.05 296,806.21 18.20 35.31
Total 660,408.88 840,506.31 27.27 100.00
Dated: 7/12/2009
1 CHINA P RP 48,116.65 79,008.61 64.20 9.40
2 SAUDI ARAB 7,226.93 60,561.50 738.00 7.21
3 USA 41,859.46 53,105.41 26.87 6.32
4 SWITZERLAND 29,024.82 41,283.17 42.23 4.91
5 U ARAB EMTS 19,277.04 39,174.95 103.22 4.66
6 IRAN 3,110.05 34,515.48 1,009.80 4.11
7 GERMANY 26,668.73 34,146.75 28.04 4.06
8 NIGERIA 320.82 31,796.52 9,811.04 3.78
9 AUSTRALIA 21,906.15 31,710.90 44.76 3.77
10 KUWAIT 2,044.79 27,114.18 1,226.01 3.23
Total 660,408.88 840,506.31 27.27 100.00
25
Dated: 4/12/2009
A) BULK IMPORTS 380,740.54 451,341.89 18.54 44.59
C) MACHINERY 120,952.44 181,376.64 49.96 17.92
D) PROJECT GOODS 8,126.46 5,207.90 -35.91 0.51
E) OTHERS 296,806.21 342,291.00 15.32 33.81
Total 840,506.31 1,012,311.75 20.44 100.00
Dated: 7/12/2009
1 CHINA P RP 79,008.61 109,116.11 38.11 10.78
2 USA 53,105.41 84,625.13 59.35 8.36
3 SAUDI ARAB 60,561.50 78,110.31 28.98 7.72
4 U ARAB EMTS 39,174.95 54,233.20 38.44 5.36
5 IRAN 34,515.48 43,945.93 27.32 4.34
6 GERMANY 34,146.75 39,736.04 16.37 3.93
7 SWITZERLAND 41,283.17 39,570.82 -4.15 3.91
8 SINGAPORE 24,839.97 32,682.18 31.57 3.23
9 AUSTRALIA 31,710.90 31,552.08 -0.50 3.12
10 KUWAIT 27,114.18 30,959.93 14.18 3.06
Total 840,506.31 1,012,311.75 20.44 100.00
26
Dated: 4/12/2009
(P) Provisional
Commodity Apr-Mar 2008 Apr-Mar 2009(P) %Growth %Share
A) BULK IMPORTS 451,341.89 620,105.80 37.39 46.26
B) PEARLS, PRECIOUS & SEMI-PRECIOUS STONES 32,094.27 66,410.18 106.92 4.95
C) MACHINERY 181,376.64 183,033.69 0.91 13.65
D) PROJECT GOODS 5,207.90 14,383.74 176.19 1.07
E) OTHERS 342,291.00 456,654.36 33.41 34.06
Total 1,012,311.75 1,340,587.75 32.43 100.00
Dated: 7/12/2009
(P) Provisional
Rank Country Apr-Mar 2008 Apr-Mar 2009(P) %Growth %Share
1 CHINA P RP 109,116.11 144,114.78 32.07 10.75
2 U ARAB EMTS 54,233.20 94,768.04 74.74 7.07
3 SAUDI ARAB 78,110.31 89,654.59 14.78 6.69
4 USA 84,625.13 83,537.24 -1.29 6.23
5 IRAN 43,945.93 55,806.96 26.99 4.16
6 GERMANY 39,736.04 53,785.86 35.36 4.01
7 SWITZERLAND 39,570.82 52,649.41 33.05 3.93
8 KUWAIT 30,959.93 43,199.45 39.53 3.22
9 NIGERIA 30,662.91 39,995.41 30.44 2.98
10 KOREA RP 24,307.91 39,514.39 62.56 2.95
Total 1,012,311.75 1,340,587.75 32.43 100.00
27
Trends in import
IMPORTS
S.No Commodity Apr-Mar 2004 Apr-Mar 2009(P) %Growth %Share
A) BULK IMPORTS 134,451.00 620,105.80 361.21 46.25
B) PEARLS, PRECIOUS & SEMI-PRECIOUS 32,757.32 66,410.18 102.73 4.95
STONES
C) MACHINERY 42,752.62 183,033.69 328.12 13.65
D) PROJECT GOODS 1,819.62 14,383.74 690.48 1.07
E) OTHERS 147,327.10 456,654.36 209.95 34.06
Total 359,107.66 1,340,587.75 273.31 100
Trends in import
The indian import saw a increment of 273.31% over a period of 6 years (including projections for year
2009) this an massive increment as the oil & petroleum products saw a massive growth on account of
increasing energy demand of the country also fertilizer,suar and other bulk goods saw a healthy growth in
their consumption back home.
This is a matter of concern as the deficit in foreign trade is increasing year after year.
The major group of the commodities saw the following trend:-
5. Bulk imports:- Import of items under bulk category as a whole comprising inter-alia Fertilizers,
Cereals, Sugar, Edible Oil, Iron and Steel and Petroleum Crude and Products, Paper and newsprint
saw a phenomenal growth of more than 361%. while oil and related products features growth over
years as a matter of increased awareness and high fuel prices and to some extent better public
transport facilities like metros and other projects and rules it saw only growth of mere 4% during
April-Dec 2008-2009 this shows that expenses on other expenses are increasing and it can be well
understood by the fact that the economic development is picking up over years and as such
requirements of other commodities increased in this section.
6. Pearls, Precious & Semi-precious stones:- this section grows at a constant pace each year
without much fluctuations as India is becoming a hub to finish the semi-finished jewelry products
and then re-export it to other countries. This sections features a growth of 102.73%.
7. Machinery:- some of the major heads under this section are imports for
1. transmission apparatus for radio-telephony, radio-broadcasting
2. aircraft (for example, helicopters, airplanes); spacecraft
3. automatic data processing machines,etc.
This section witnessed a growth of 328.18% and this very much understood by the increased expenditure
on defense and advancement in the field of aerospace.
8. Project goods:- Project Imports are the imports of machinery, instruments, and apparatus etc.,
required for initial sating up of a unit or for substantial expansion of an existing unit. This section
28
saw an increment of triumphing increase of 690.48% this phenomenal increase can be well
understood by the good GDP growth figures shown in years previous to 2008.
9. Others:- This head includes various other remaining commodities like

1. Gold & Silver
2. Artificial Resins & Plastic Materials
3. Professional Instruments etc. except electrical
4. Coal, Coke & Briquittes, etc.
5. Medicinal & Pharmaceutical Products
6. Chemical Materials & Products
7. Non-Metallic Mineral Manufactures,etc.
This section witnessed a growth of 209.95% which is well justified by the growth of different horizons of
the indian market.
29
Analysis
Y-O-Y Analysis
1600000
1400000
1200000
1000000
800000
Rs. in Crores
600000
Exports
400000 Import
Deficit
200000
-200000
-400000
-600000
Apr-Mar2004 Apr-Mar2005 Apr-Mar2006 Apr-Mar2007 Apr-Mar2008 Apr-Mar2009(P)
Rk = n*Ʃdx*Ʃdy – Ʃdx*dy
n*Ʃdx2 – (Ʃdx)2 * n*Ʃdy2 - (Ʃdy)2
= 6*42.74*63.99 – 357458.16
6*199280.39 – 42.742 * 6*641635.63-63.992
= -341048.56
1092.63 * 1961.05
= - 0.16
This shows that there is weak negative relation between export and import so as when one increases
the other decreases but not that much dependent.
30
BIBLIOGRAPHY:-
1. www.commerce.nic.in
2.www.business.gov.in
3.www.wikipedia.org
4.http://rbidocs.rbi.org.in/rdocs/Bulletin/PDFs/71947.pdf
5.www.wto.org
6.www.comtrade.un.org
7.www.dailyexportimportdata.com
8.www.dgciskol.nic.in
9.www.ustraderep.gov31
31

Trends of Indian Foreign Trade

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Trends of Indian Foreign Trade

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INSTITUTE OF MANAGEMENT STUDIES

SUBJECT: ENVIRONMENT AND

TOPIC: Composition and trends of Indian foreign trade over

SUBMITTED TO: SUBMITTED BY:

SL. NO. NAME ROLL NO.

We hereby declare that the report on “COMPOSITION OF FOREIGN TRADE OF INDIA

---------------------- ------------------------- ------------------------

Aditya Pal Singh ROLL NO. BM-09015

“No book is the work only of its authors”.

----------------------- ------------------------- ------------------------

(a) The Competitive business Environment

Table - 1 Growth of World Merchandise Exports

Year Value of merchandise exports

Meanings of International Trade:-

1.Satisfaction of Consumer: In domestic trade and in international trade, success depends

5.Differences in Economic Environment from country to country: Different countries may

The various gains of international trade are as follows:

1.International Specialization: International trade enables to specialize in the production of

3. Availability of Scarce Materials: International trade is the only method by which a

4. Equalization of Prices between Countries: An important gain of international trade or

Total 293,366.75 375,339.50 27.94 100.00

Data Source: DGCIS, Kolkata DOC-NIC

1. ENGINEERING GOODS:- Export of items under this group comprising

2. GEMS & JEWELLERY:- This part saw a nominal growth of 15.16%

5. TEXTILES: This section mainly comprises of:-

6. HANDICRAFT:- Another interesting section to discuss here is the handicraft section

9. Others:- This head includes various other remaining commodities like

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