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ExportfromIndia
IndiaImports
CompositionofIndia'sForeign
TradeImportandExports
Post:GauravAkrani.
Date:3/31/201105:32:00PMIST.
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Label:Economics,India.
ForeignTrade
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economy.Indiatillrecentlywaspredominantlyaprimarygoodsexportingand
mainlyanindustrialgoodsimportingcountry.
In 1950s, India's share in the world trade was 1.78% which was decline to
0.59%in1990andcontinuestoremainaround0.60%tillnow.India'ssharein
worldexportswas0.8%in2006.
A.CompositionofIndia'sExports
StagesinEvolutionofBusiness
fromLocaltoGlobal
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DrawbacksandRecentReforms
ConceptofMarketingResearch
(MR)MarketingResearchProcess
MANAGEMENT
BritishersstronglybelievedthatIndiawasacountrywellsuitedtosupplyraw
materials and other primary goods and a good market place for British
manufacturers. So at the time of our independence our exports were
predominantly of primary goods and imports were of manufacturers. At the
time of independence agricultural commodities and light manufactured
consumer goods dominated India's export basket. During the post
ManagementFunctionsAnd
Process,ManagementThought
PlanningFirstPrimaryImportant
FunctionOfManagement
independenceperiodIndia'scompositionofexportschanged.
ManagementByObjectives
(MBO)PeterDruckerMBO
NowexportsofIndia'sarebroadlyclassifiedintofollowingfourcategories.
DecisionMakingProcessIn
ManagementProblemSolving
Authority,Responsibilityand
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CompositionofIndia'sForeignTradeImportandExports
AccountabilityInManagement
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andLimitationsofDecentralization
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QualitiesLeadershipTheories
TablebelowshowscompositionofIndia'sexportfrom199091to200506.
HumanResourceManagement
HumanResourceDevelopment
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IncentivesTheoriesofMotivation
Maslow'sHierarchyofNeeds
TheTheoryofHumanMotivation
FrederickHerzberg'sTwoFactor
TheoryMotivationHygiene
Factors
DouglasMcGregor'sTheoryX
andTheoryYEmployee
Motivation
ThecompositionofIndia'sexportcanbesummarisedasfollows:
DavidMcClelland'sAchievement
Motivation,ManifestNeedTheory
1.AgriculturalandAlliedProducts
MarketingMixand4P'sofThe
MarketingManagementArticle
The share of agriculture items in the total exports of India has declined
between199091to200506.Theshareofagricultureexportswas19.5%in
199091.Itcamedowntoabout10.2%in200506.
WhatisMarketSegmentation?
ImportanceInModernMarketing
Thetopitemsofagricultureexportsinclude:
5M'sofAdvertisingFeaturesof
TheAdvertisingManagement
QualityControlTotalQuality
ManagementTQMQualityCircles
1.FishProducts,
2.Rice,
3.OilCakes,
4.FruitsandVegetables
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ImportCompanies
IronOreIndia
EconomyofIndia
Themostimportantexportitemin'AgricultureandAlliedproducts'groupover
theperiod199192to200506hasbeen'FishandFishPreparations'.From$
585millionsin199192exportearningsfromfishandfishpreparationsroseto
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AdministrativeLaw
Advertising
Banking
year.Infact,exportsofricewereashighas$1,366millionsin199596which
Blogger
was4.3percentoftotalexportearninginthatyear.In200506,exportsofrice
BusinessDevelopment
wereworth$1,405millionswhichwas1.4percentoftotalexportearningin
thatyear.
CommunicationSkills
DistinguishBetween
2.OresandMinerals
The overall export performance of ores and minerals is not satisfactory. In
percentageterms,theexportperformanceoforesandmineralhasincreased
from4.4%in199091to5.2%in200506.
Amajorshareoforesandmineralsexportscomesfromtheexportofironore.
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3.ManufacturedGoods
TheshareofmanufactureditemsinthetotalexportearningsofIndiaisonthe
increase. In 199091, the share of manufactured items in the total export
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CompositionofIndia'sForeignTradeImportandExports
earningswasabout73%ofthetotalexportearnings.
Snakes
FINANCE
Thetopmanufacturedexportitemsinclude:
1.EngineeringGoods,
2.GemsandJewellery,
3.ChemicalsandAlliedproducts,and
4.ReadymadeGarments
Theexportofengineeringgoodsincreasedfrom$2,234millionsin199192
to$21,315millionin200506.Inpercentagetermstheshareofengineering
goods rose from 12.5% in 199192 to 20.7% in 200506. Over the period
199192 to 200203, engineering goods occupied the second position in
India's export earnings after gems and jewellery. However, thereafter
engineeringgoodshaveoccupiedthefirstplace.In200506theycontributed
20.7%(i.e.onefifth)oftotalexportearnings.
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For most of the period since 1991, largest export earnings came from the
exportsofgemsandjewellery.TheshareofgemsandjewelleryinIndia'stotal
export was 15.3% in 199192 and 15.1% in 200506. However, gems and
jewelleryindustryisahighlyimportintensiveindustryrequiringlargeamount
ofimportsofpearlsandpreciousstones.
Exports of chemicals and allied products rose significantly from $ 1,583
millionsin199192to$11,935millionsin200506.Inpercentageterms,their
sharestoodat11.6%in200506andtheyoccupiedthethirdplaceinIndia's
exportearningsinthisyear.
In percentage terms, readymade garments maintained an almost constant
share all through the period since 1991. They contributed 12.3% of export
earnings in 199192 and 12.5% of export earnings in 200001. In 200304,
theirsharefellto9.8%andin200506to8.3%.
4.MineralFuelandLubricants
Therehasbeenanimprovementintheexportofmineralfuelsandlubricants
both in terms of value and in terms of percentage. In percentage terms, its
sharehasincreasedfromlessthan2.9%in199091to11.5%in200506.
SomeotherfactsregardingstructuralchangeinIndia'sexportsince1991are
asfollows:
1.Thereareindicationthatduring1990s,someofIndianexportshave
movedupwardsinvalueadditionchainwherebyinsteadofexportingraw
materials,thecountryhasswitchedovertoexportofprocessedgoods.
2.Thereweresignificantcompositionalshiftwithinthemajormanufactured
productgroupssuchasengineering.goods,chemicalsandalliedproducts,
etc.
B.CompositionofIndia'sImports
In 194748 the main items of India's imports were machineries, oil, grains,
cotton,cutlery,hardwareimplements,chemicals,etc.Theyconstituted70%of
India'simports.Afterthatduetotheemphasisonindustrialisationduringthe
second5Yearplannecessitatedtheimportsofcapitalgoods.
NowimportsofIndia'sarebroadlyclassifiedintofollowingfourcategories.
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CompositionofIndia'sForeignTradeImportandExports
TablebelowshowscompositionofIndia'simportfrom199091to200506.
ThecompositionofIndia'simportscanbesummarisedasfollows:
1.PetroleumProducts
Importsofpetroleumoilandlubricantsrosesignificantlyfrom$5364millions
in199192to$43,963millionsi.e.morethaneighttimes.
Duetohighpriceofcrudeoil,thePOLimportsjumpedto$15,650millionsin
200001. In 199091, petroleum products accounted for nearly 25% of total
importsofIndia.In200506,ithasfurtherincreasedtonearly31%ofthetotal
importbillofIndia.
2.CapitalGoods
Theimportsofcapitalgoodswas$3,610millionsin199192.In199596due
tosharpriseinnonelectricalmachineryimports,theimportsofcapitalgoods
jumped upto $ 8,458 millions. However due to slowing domestic demand
imports of capital goods fell subsequently. The capital goods and related
items were 24.1% of the total imports of India in 199091, which has come
downslightlyin200506toabout22.3%.
3.PearlsandPreciousStones
To meet the requirements of the gems & jewellery industry pearls and
precious stones are imported in large quantities. In 199091, the share of
pearlsandprecibusstoneswas8.7%whichhasreducedinpercentageterms
to6.4%in200506.
4.IronandSteel
The imports of iron and steel have declined over the years in percentage
terms. In 199091, the share of iron and steel imports was 5%, which has
comedownto3%in200506.Thisisbecause,agoodamountofironoreis
nowextractedinIndiawhichhasreducedimports.
5.Fertilizers
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CompositionofIndia'sForeignTradeImportandExports
Importoffertilizersin199192stoodat$954millions.In200304expenditure
onimportoffertilizerswas$635millions.
The import of fertilizers have declined, which indicates less dependence of
Indiaonimportedfertilizers.Theshareintotalimportsoffertilizerswas4.1%
in199091,whichcamedownto1.5%in200506.
ConclusiononIndia'sForeignTrade
CompositionofIndia'sforeigntradehasundergoneapositivechange.Itisa
remarkable achievement that India have transformed itself from a
predominantly primary goods exporting country into a nonprimary goods
exporting country. Under import too India's dependence on food grains and
capitalgoodshasdeclined.
ThetrendindicatesstructuraltransformationofIndianeconomy.
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