direction of india's export

7/27/2019 Direction of India's Export

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CHAPTER IIIGROWTH, COMPOSITION

AND DIRECTION OFINDIAS EXPORTS


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Chapter - III

Growth, Composition and Direction ofIndias Exports

3.1 Introduction

Structure of any countrys exports is important to understand the

salient features of its export sector and level of development. In context of

theory of structural change, for example, if a country has majority of

primary commodities in its export basket then it is considered that

country is basically a developing economy and vice versa if export basket

contains bulk of capital goods. And structure of exports has been

undergoes significant changes with the process of economic growth and

development. Growth of exports is also very important both for the

developing and developed economies as developing countries need of

foreign exchange earnings to compensate the imports bill of capital

goods. Whereas, developed countries need markets for the sale of over-

production of manufactured capital and consumer goods. Large and

increasing share in world exports of manufacturers signifies the

mounting importance of the country in the world economy. Coupled with

capital outflows, it is a clear cut indicator of establishment of hegemonic

power as was empirically seen to have happened in the history as Great

Britain emerged as an imperial power during the nineteenth century and

United States as neo-imperial power after the World War I. Besides,

China can be seen accumulating hegemonic powers in the contemporary

world economy.

The growth of a countrys export is determined by many internal

and external factors (Singh, 1964). Besides internal factors, any change

in a countrys exports is at least partially attributable to changes in worlddemand for those products. All these factors have an important bearing

on a countrys export performance in so far as they affect the demand for

its exports. Commodity composition and market composition of exports

are crucially important for the countries that are adopting outward-

oriented export promotion development strategy as a tool of planned


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economic development in the contemporary global economy. Given

commodity composition and market distribution of exports, export based

outward-oriented strategy can give desirable effects in this era of

globalistion which is characterised by unilateralism at domestic level in

majority of the economies of the world; and multilateralism and

regionalism at global level. Given the commodity composition, a country

may fail to maintain its share in world market, i.e. exports may not keep

pace with the expansion in world trade, if demand for its exports is

growing relatively slowly, although the country has some sort of

comparative advantage in its respective exportables. This would be true

in case of the country whose exports are concentrated in primary

products, raw materials and other commodities, demand for which is

income inelastic and hence grow slowly. In these circumstances, an

unchanging commodity composition may well become a constraint on

export growth. Similarly, the market distribution of export can also

affects a countrys exports. A country may fail to maintain its share in

world market if most of its exports go to markets which are relatively

stagnant. Conversely, exports may increase faster than world average if

they are sold in rapidly growing markets (Nayyar, 1976).

For India, the period since 1991 has been characterised by

substantial changes in economic environment both domestically and

externally. Economic environment in India has undergone qualitative

changes as the import substitution inward oriented development strategy

has been replaced with export promotion outward oriented strategy with

implementation of economic reforms in every sector of economy and

particularly in external sector. Global economic environment has alsobeen characterised by increasing popularity of economic liberalization,

multilateralism and regionalism which has changed economic order

instituted during the post World War II period. All these changes created

an export friendly environment. No doubt, this economic transformation

of global economic order with special emphasis on free trade has


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a = constant

r = Growth rate

The growth rates are computed for the whole period i.e. from 1991-

92 to 2005-06 and for some of the sub-periods by deflating the actual

value of various variables at constant prices with the base year 1999-

2000 by using export unit value index. Composition and the direction of

exports are analyzed by using simple percentage and simple average

methods. The results related to composition and direction of exports

have presented by taking the triennium averages of the study period.

While examining the composition of Indias exports at SITC digit 1, 2 and

3, results are presented at four points of time i.e. 1992, 1996, 2002 and

2006 and in the same manner the share of Indian exports in world

exports has been shown respectively.

To examine the commodity and geographic concentration of

exports Hirschman-Gini's Index has been used. Let total export earnings

of the year t be denoted by Xt and export earnings from each commodity

by Xit, where I go from 1 to n. Then the Hirschman-Gini's Index of

commodity and geographic concentration (HGCt) is defined as under:

Hirshman Ginis Coefficient () = 2=1 The highest value of the coefficient is 1. This occurs only when

total export earning comprises of only one commodity. The lowest value

is 0, which occur when all commodity have equal importance in the total

exports earning. Within these values closer to 1, the higher is the

concentration and vice versa. Besides Gross, Net and Income terms oftrade are also calculated for the overall exports during the concerned

period.

3.3 Indian Economy and India's External Sector: A Brief Overview

Before presenting the picture of growth and structure of Indias

exports, it will be relevant to introduce with the changes which occurred


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in the various macro-economic variables of the economy during the study

period. This section presents a brief overview of Indian economy and also

describes salient feature of its external sector. Table 3.1 reveals various

macro-economic variables of Indian economy during the period from

1991-92 to 2005-06.

Indian economy grew rapidly during the study period as Gross

Domestic Product (GDP) at factor cost increased from Rs. 11,60,304

crore in 1991-94 (T.A) to Rs. 24,09,209 crore in 2003-06 (T.A) with

growth rate of 6.18 per cent per annum. Almost all the GDP variables

registered a growth of more than 6.00 per cent during the same period.

However, the growth was found to be higher during the sub-period 2001-

06 as compared to other two sub-periods i.e. 1991-96 and 1996-2001.

Per Capita GNP and NNP at factor cost have been raised to Rs. 21,921

and Rs. 19,500 in 1991-94 (T.A) from Rs. 13,094 and Rs. 11,803

respectively in 2003-06 (T.A) with growth rate of more than 4.00 per

cent. Gross capital formation (8.68 per cent) and net capital formation

(9.46 per cent) has also recorded high rate of growth as both the

components have increased sharply. However, growth of these two

components has been outstanding during the last sub-period 2001-06.

Thus, introduction of economic reforms has positively influenced the

economic performance of Indian economy during the concerned period as

indicated by the macro-economic variables. However, its implications

with regard to poverty, unemployment, and inclusive growth have been

serious in nature and scope.

Table 3.2 highlights the structure of Indian economy by major

components of Gross Domestic Product (GDP) during the period 1991-2006. Data shows that all the major sectors of Indian economy registered

manifold increase in their values (in Rs. Crore at constant prices) during

the study period. Agriculture and allied activities, industry and service

sectors have grown respectively at 2.74 per cent, 6.04 per cent, and 7.85

per cent per annum. Thus, growth of agriculture and allied sector has


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been remained to be lowest as compared to industrial and service

sectors, and it clearly highlights the neglect of primary sector activities

during the concerned period. Service sector recorded highest growth

during the period and have been able to gain from the ongoing process of

globalization, liberalization and privatization. Industrial sector has been

able to maintain its share of approximately 20.00 percent since 1991-94

(T.A). In case of service sector, actual growth has been found to be much

higher, but agriculture sector has not been able to achieve its potential

growth during the concerned period. Among the major sectors of the

economy, trade, hotel, communications and transport sector registered

highest growth of 8.68 per cent followed by finance and insurance

services (7.01 per cent) and construction (7.61 per cent) sectors.

Data clearly exhibits the structural change in Indian economy

during the study period as share of agriculture and allied activities sector

has consistently declined from 30.34 per cent to 20.49 per cent; share of

industrial sector increased slightly from 19.31 per cent to 19.47 per cent;

and share of service sector fabulously increased from 50.35 per cent to

60.05 per cent during the period under study. Instantly increasing

importance of service sector in Indian economy has emerged out as very

peculiar phenomena which had not been seen in any developed

economies and even not explained by the theories of structural change as

economy experienced instant expansion of service sector and

manufacturing sector considered as the backbone of an economy in the

economic theory proved unable to establish a solid base in the economy

during the same period.

Table 3.3 presents a brief overview of Indias external sectorduring the period from 1991-92 to 2005-06. It is very clear that Indias

external sector has remained comfortable during the post-reforms period

as Indias balance of payment position remained to be favourable during

the study period. Overall balance of payments (BOP) increased to Rs.

1,08,599 crore in 2003-06 (T.A) from Rs. 11,058 crore in 1991-94 (T.A).


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Export from India and import to India have also registered manifold rise

during the same period, but rise in imports was found to be much larger

than the rise in exports, which is clear from the continuously rising trade

deficit from Rs. 12,152 crore to Rs. 1,48,272 crore during the period

under study. In this way, Indias current account remained in deficit up

to 1997-2000 (T.A). However, after this period it turned out to be

positive, primarily due to sharp rise in the invisibles, which have grown

up from Rs. 5941 crore to Rs. 150962 crore with rate of growth of 23.37

per cent per annum during the same period. Picture of capital account of

BOP has been quite satisfactory as it was found to be positive

throughout the study period. It is primarily due to the fact that India has

been able to invite huge amount of foreign investment which have

increased from Rs. 5,106 crore in 1991-94 (T.A) to Rs. 63,227 crore in

2003-06 (T.A) with growth rate of 22.79 per cent per annum. Apart from

the foreign investment, it was partly subject to growth of loans and

banking capital which respectively rose to Rs. 21,126 and Rs. 16,872 in

2003-06 (T.A) from Rs. 5,685 crore and Rs. 6,868 crore in 1991-94 (T.A)

respectively. External sector of Indian economy was the focal stress point

of the 1991 balance of payment crisis. Perhaps for that reason it saw the

most far reaching reforms and successful response to reform initiatives

(Acharya, 1999). Thats why Indias balance of payments positions

remained comfortable during reform period, otherwise BOP in India

whenever viewed from the national income measurement side, constitute

a very feeble position and continuous story of deficits if we take the

whole period stretching from the beginning of the planned economic

development (Chatterjee and Karmakar, 2002)..Table 3.4 highlights the growth of foreign exchange reserves during

the period 1991-92 to 2005-06. The value of foreign exchange reserves

has increased quit sharply from Rs. 38,338 crore in 1991-94 (T.A) to

Rs. 5,95,211 crore in 2003-06 (T.A) with a growth rate of 23.34 per cent

(in Rs. terms) and from $ 19,153 million in 1991-94 (T.A) to $ 2,03,048


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millions in 2003-06 (T.A) with a growth rate of 15.45 per cent. Growth of

foreign exchange reserves was found to be much higher during the period

1991-96 than in other two sub-periods and it has turned out to be

negative during the period 2002-02 to 2005-06. Among SDRs, gold and

foreign currency assets, growth of foreign currency assets has registered

much higher growth than others (both in Rs. and US $ terms) during the

study period. Thus, it can be said that India has successfully been able

to remove the uncertainties regarding the availability of foreign exchange

reserves during post-reforms period.

Table 3.5 demonstrates the various indicators of Indias external

sector during the period 1991-92 to 2005-06. Data exhibit that opening

up of economy has raised Indias share in world merchandise trade from

0.57 per cent in 1991-92 to 1.22 per cent in 2005-06. Indias share in

world merchandise exports and imports has increased from 0.56 per cent

and 0.58 per cent to 1.07 per cent and 1.35 per cent respectively during

the same period. It is to be noted that Indias share in world imports have

increased more sharply than that of exports. Declining export-import

ratio (exports as percentage of imports) from 92.12 in 1991-92 to 69.12

in 2005-06 indicates towards increasing difficulties to finance the ever

increasing import bill and has also been responsible for continuously

increasing trade deficit. This also reflects a continual tendency for the

economys resource utilization to exceed the amount of resource

generated within the economy (Kaundal, 2006). Trade-GDP ratio, export-

GDP ratio and import-GDP ratio have sharply risen from 14.80 per cent,

6.90 per cent and 7.90 per cent to 32.40 per cent, 13.00 per cent and

19.40 per cent respectively during the same period. Thus, increasingtrade-GDP ratio, export-GDP ratio and import-GDP ratio, indicates

toward the mounting importance of trade for Indian economy at one side;

and also highlights rapidly increasing openness and integration of Indian

economy to global economy during the study period.


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However, the merchandise trade balance has shown a negative

picture if it is seen in the context of domestic economic performance, but

the indicators of service trade exhibited quite optimist trends during the

study period as invisible receipts as percentage of GDP raised to 11.10

per cent from 3.60 per cent and invisible payments as percentage of GDP

raised to 5.90 per cent from 2.90 per cent. The ratio of current receipts to

current payments has jumped up from 94.30 per cent in 1991-92 to

103.80 per cent in 2001-02, However, it further decreased to 94.80 per

cent in 2005-06. Thus, rise in invisible receipts was found to be much

higher than that of the increase in invisible payments, which further

resulted in positive current account since 2001-03 (T.A). Even current

account balance has turned out to be positive of 0.70 per cent in 2000-

01 which was in deficit of -0.30 per cent in the initial year. Indias

current account indicators have registered outstanding performance as

they were found to be positive throughout the period under study.

Foreign investment as percentage of GDP has increased to 2.60 per cent

from 0.10 per cent and foreign investment as percentage of exports

climbed up to 24.00 per cent from 0.70 per cent during the period under

study. Import cover of foreign exchange reserves rose to 11.60 months

from 5.30 months during the same period.

Table also describes behavior of debt indicators during the period

from 1991-92 to 2005-06. The data show that the debt stock as

percentage of GDP has slipped down to 17.20 per cent from 28.70 per

cent. Concessional debt as percentage of total debt has decreased from

45.90 per cent to 17.20 per cent, but short term debt as percentage of

GDP has increased from 10.20 per cent to 14.10 per cent by declining to3.60 per cent in 2001-02. Declining burden of debt service was found to

be the most outstanding feature during the period as it was as high as of

35.30 per cent in 1991-92 and squeezed down to 9.90 per cent in 2005-

06. Therefore, foreign debt indicators reveal desirable performance

during the study period. Thus, it can be concluded that post-reforms


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period has generated many beneficial effects to improve the performance

of Indias external sector that was quite poor in the pre-reforms period.

3.4 Growth of India's Exports: Annual Patterns

The trends that emerged in Indias exports during the post-reforms

and post-WTO period have been examined thoroughly in the foregoing

tables.

Table 3.6 brings out the growth ofIndias exports (at constant prices

1999-2000) during the period 1991-92 to 2005-06. Table highlights that

Indias total trade increased from Rs.1,50,211 crore in 1991-92 to Rs.

2,85,698 crore (1.9 times) in 1995-96; from Rs. 3,08,447 crore in 1996-

97 to Rs. 4,43,928 crore (1.4 times) in 2001-02; and from Rs. 5,38,089

crore in 2003-03 to Rs. 8,45,318 crore (1.6 times) in 2005-06. Value of

total trade increased from Rs. 1,50,211 crore in 1991-92 to Rs. 8,45,318

crore (5.6 times) in 2005-06. Indias exports increased from Rs. 71,993

crore in 1991-92 to Rs. 1,32,667 crore (1.8 times) in 1995-96; from Rs.

1,42,194 crore in 1996-97 to Rs. 2,04,283 crore (1.4 times) in 2001-02;

and from Rs. 2,48,553 crore in 2003-03 to Rs. 3,45,459 crore (1.4 times)

in 2005-06. Value of exports increased from Rs. 71,993 crore in 1991-92

to Rs. 3,45,459 crore (4.6 times) in 2004-05. Indias imports increased

from Rs. 78,219 crore in 1991-92 to Rs. 1,53,031 crore (1.9 times) in

1995-96; from Rs. 1,66,252 crore in 1996-97 to Rs. 2,39,645 crore (1.4

times) in 2001-02; and from Rs. 2,89,536 crore in 2003-03 to Rs.

499858 crore (1.7 times) in 2005-06. Value of imports increased from Rs.

78,219 crore in 1991-92 to Rs. 4,99,858 crore (6.4 times) in 2005-06.

Indias trade deficit increased from Rs. 6,226 crore in 1991-92 to Rs.

20,364 crore (1.3 times) in 1995-96; from Rs. 24,058 crore in 1996-97 toRs. 35,362 crore (1.5 times) in 2001-02; and from Rs. 40,983 crore in

2003-03 to Rs. 1,54,399 crore (3.76times) in 2005-06. Thus, trade deficit

increased from Rs. 6,226 crore in 1991-92 to Rs. 1,54,399 crore (24.8

times) in 2005-06.


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Table 3.7 depicts the growth of Indias exports vis--vis imports and

total trade during the period 1991-92 to 2005-06. Indias total trade

recorded growth of 11.87 per cent during the whole study period. Indias

exports grew at 11.51 per cent, whereas Indias imports registered a

growth of 12.14 per cent during same period. The data clearly highlight

the impact of East Asian crisis on Indias merchandise trade sector as

the growth of exports (8.68 per cent), imports (8.85 per cent) and total

trade (8.79 per cent) has been found to be quite lower during the sub-

period 1996-2001 as compared to other two sub-periods i.e. 1991-1996

and 2001-2006. Besides, growth of imports has been found to be higher

than that the growth of Indias exports during the whole study period.

Even after the revival of East Asian crisis, Indias imports has registered

much higher growth of 21.45 per cent as compared to the export growth

of 13.55 per cent during the period 2001-02 to 2005-06. Hence,

widening trade deficit indicates that growth in the value of exports from

India had been recorded to be on lower side as compared to the growth in

the value of Indias imports, which is not up to the mark as during the

special emphasis was put on export promotion. However, the level of

growth of exports has been significant and could not be ignored in the

context of increasing needs of imports for a rapidly growing economy, but

even then it demands special attention so that the economy would come

out of the chronic imbalance at merchandise trade ever since the

beginning of the planning process in the country.

Table 3.8 shows Indias exports vis--vis World exports (at constant

prices) during the period 1991 to 2006. World exports and Indias exports

respectively have increased from US $ 3183.26 million and US $ 15.94

million in 1991 to US $ 4971.24 million (1.56 times) and US $ 31.45

million (1.97 times) in 1997 respectively and further it rose to US $

9472.89 million (2.97 times) and US $ 95.52 million (5.99 times) in 2006.

Thus, Indias percentage share in world exports has increased from 0.56


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per cent in 1990 to 0.63 per cent in 1997 and further to 1.07 per cent in

2006. Further, Indias exports experienced the growth of 11.66 per cent

that was much higher than that growth of 7.32 per cent of world export

during the period 1991-2006. It is interesting to note that Ind ias exportsregistered rapid growth that was almost double of world export growth

during the various sub-periods except the sub-period of 1996-2000. In

fact, the impact of the East Asian crisis has been evident as Indias

export growth has declined to 8.96 per cent, which was slightly higher

than world export growth (8.46 per cent) during sub-period 1996-2000.

India's export growth has been mainly attributed to the rapid growth of

world export and exchange rate depreciation during 1991-95 (Marjit and

Chaudary, 1997 and Srinivasan, 1998). The decline in growth rate of

Indias exports during the second half of 1990s (1996-2000) was mainly

attributed to East Asian crisis, which has put a strain on India's exports

not only by shrinking world demand but by also adversely affecting

international competitiveness of India's exports due to sharp depreciation

of East Asian currencies (Kumar, 1998). The nominal exchange rates of

East Asian competitors (notably Thailand, Malaysia, Philippines and

Indonesia) underwent substantial depreciation during the crisis period

(Acharya, 2002) and thus resulted deceleration in export growth.

Table 3.9 reveals growth of Indias exports vis--vis selected

countries (at constant prices) during the period 1991 to 2006. Indias

export growth has been recorded very high during the period as

compared to other selected giant exporters of world. Among the selected

exporters in the world export market, on the basis of exports growth,

India was found to be at 3rd place during 1991-2006, 7th place in 1991-

96, again 7th position during 1996-2000 and 6th during 2001-06. Thus, it

can be said that Indias export growth was very consistent and less

fluctuating as compared to other selected exporters. In the context of


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phenomenal growth of world exports, growth performance of Indias

exports has remained to be outstanding as it had registered much higher

growth than that of the growth of world exports and highest among the

selected giant exporters in world export market except China during the

study period.

3.5 Composition of Exports

A preliminary idea of the changes in the commodity composition of

exports can be obtained by examining the changing shares of each

commodity in total exports. Table 3.10 traces the percentage

contribution of Indias principal exports to total earnings by dividing

overall exports into four broad groups namely: (i) Primary Products; (ii)

Manufactured goods; (iii) Petroleum products and (iv) Others. Exports of

Primary Products are further divided into three categories, i.e.

agriculture and allied products, iron ores, and others. Similarly,

manufactured exports are also divided into seven categories: (i) leather &

manufactures; (ii) chemicals and related products; (iii) engineering goods;

(iv) textile and textile products; (vi) gems and jewellery; (vii) handicrafts;

and (viii) other manufactured goods.

Table 3.10 shows that relative share of primary products fell from

22.04 per cent in 1991-94 (T.A) to 15.87 per cent in 2003-06 (T.A). This

sharp decline has been due to rapid decrease in share of agricultural and

allied exports in the countrys overall exports. Contrary to primary

exports, relative share of manufactured exports slightly rose from 74.74

per cent in 1991-94 (T.A) to 78.05 per cent in 1997-00 (T.A), but

decreased to 73.01 per cent in 2003-06 (T.A). The share of petroleum

products in total exports earnings stood up considerably from 2.23 per

cent in 1991-94 (T.A) to 8.42 per cent 2003-06 (T.A). This may be due to

the sharp rise in the prices of these products especially in the global

crude market, which reflects itself in the prices of the manufactures and

petroleum products. If we see within primary products group, share of


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agriculture and allied products in overall export earnings decreased

rapidly from 17.65 per cent in 1991-94 (T.A) to 10.62 per cent in 2003-

06 (T.A). As the same time, share of iron and ore in total export earning

has also declined from 4.39 per cent in 1991-94 (T.A) to 2.74 per cent in

1997-2000 (T.A) that again increased to 4.53 per cent during 2003-06

(T.A). The export growth of primary products was found to be 8.11 per

cent during the study period, however, the growth of manufactured

exports and petroleum product exports reported quite high of 11.38 per

cent and 24.17 per cent respectively compared to primary products

exports. The ores and minerals export grew at 12.16 per cent, almost half

of petroleum product export growth during the study period. Meanwhile,

agricultural and allied products exports grew at 6.68 per cent which was

found to be lowest among all other groups in export composition. Looking

at export growth during different sub-periods, petroleum products

experienced sharp fluctuation in its growth rate. However, the sub-period

1996-2000 was not good in terms of export growth as all the broad

commodity groups registered low growth. Even, primary and agricultural

commodities experienced negative export growth of -1.93 per cent and -

2.33 per cent respectively during the same period. Further, all the

commodities showed good recovery and experienced healthy export

growth except agricultural and allied products that remained at the low

level of 4.40 per cent during the sub-period of 2001-06. Hence, it can be

concluded that performance of primary exports particularly of

agricultural and allied products exports has been poor as compared to

the export growth of manufactured and petroleum products during the

study period. It was justified with regard to the support provided asmanufactured exports have been able to draw the benefits of foreign

technology imports and investments.

To make the picture clearer, a further detailed breakdown of above

classification is provided in Tables 3.11, 3.12 and 3.13. The relative

shares of tea, tobacco, cashew, oil meals, marine products which have


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impact of East Asian crisis has been quite evident during the sub-period

1996-2000 as majority of agricultural exports recorded negative growth

rates (Table 3.11). Moreover, only the wheat, processed fruits, etc., and

meat & meat preparations exports realized double-digit growth during

the period. Among the remaining exports rice and fruits & vegetables

grew at higher pace and all the remaining export items realized very low

growth during the same period. Therefore, it is held that majority of

agricultural and allied exports have experienced deceleration in growth,

which resulted in the decline in the relative share of agricultural and

allied exports in overall export earnings during study period.

Table 3.12 reveals the relative share of various exports items

within iron and ore exports. Among total iron and ore exports, shares of

iron and ore declined slightly from 54.54 per cent in 1991-94 (T.A) to

36.09 per cent in 2000-03 (T.A), but increased rapidly to 57.91 per cent

in the subsequent period. The relative share of mica reported a

continuous decline from 1.22 per cent in 1991-94 (T.A) to 0.51 per cent

in 2003-06 (T.A). The growth of exports of iron and ore and mica was

found to be 11.94 per cent and 4.06 per cent respectively during the

whole study period, i.e. from 1991-92 to 2005-06. The growth of export

within iron and ore was found to be quite fluctuating during the different

sub-periods. iron ore and mica experienced negative growth rate of -1.75

per cent and -12.09 per cent respectively during the sub-period 1991-95

and positive growth rate of 61.67 per cent and 4.06 per cent respectively

during the sub-period of 2001-06. Iron and ore export discovered very

high growth during the sub-period 2001-06. Also the other itemswithin

iron ore too contributed significantly at 18.04 per cent per annum duringthe same sub-period and resulted in an increase in share of ores and

mineral products groups in overall exports during the study period.

Although the share of manufactured goods in total exports

remained fluctuating, but decreased moderately over the period (Table

3.13). The changes within this commodity classification are very


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interesting. Share of leather and leather manufactures, textile and textile

products and handicrafts exports fell sharply from 9.57 per cent, 37.75

per cent, and 2.08 per cent in 1991-94 (T.A) to 4.06 per cent, 23.77 per

cent, and 0.76 per cent in 2003-06 (T.A) respectively. The relative share

of chemicals and related products, engineering goods and Gem & jewelry

increased fastly from 15.05 per cent, 19.36 per cent, and 15.25 per cent

in 1991-94 (T.A) to 20.11 per cent, 28.03 per cent, and 21.96 per cent in

2003-06 (T.A) respectively. Within manufactured products, gems and

jewellery, engineering goods and chemicals and chemicals related

products registered export growth of 16.21 per cent, 15.31, and 14.77

per cent respectively during the study period. However, the growth of

exports of leather and handcrafts remained at lower level of 4.52 per cent

and 4.36 per cent respectively during the same period. Moreover, leather

products after gaining the export growth of 9.09 per cent in 1991-95

sub-periods had slipped to very low growth of 0.66 per cent during the

sub-period 2001-06. The handicrafts products exports, after gaining

healthy growth of 16.17 per cent during sub-period 1991-95, slipped

down to negative growth rate of -17.95 per cent during the sub-period

2001-06. However, engineering goods exports experienced healthy growth

rate of 22.49 per cent during the same period. Thus, almost all the

export items in this group registered double-digit growth due to which

this broad product has been able to maintain more than one-third of its

share in overall export earnings during the study period. Leather (4.52

per cent) and textile (8.11 per cent) exports experienced lower growth

amongst manufactured exports and thus there was a rapid decline in

their relative shares in overall export earnings. It is held that thepersistence of the MFA quota has imposed constraints on textile exports

and thus responsible for relative decline in growth rate vis--vis non-

quota sectors (Chakraboty and Chakraboty, 2005).

Table 3.14 traces the composition of Indias export at aggregate

level of SITC 1 digit and disaggregates level of SITC 2 digit level and also


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reveals their performance in world exports by highlighting the major

trends at various points of time since 1992. The composition of Indias

export both at aggregate (SITC Digit 1) and disaggregate level (SITC Digit

2) depicts significant changes during the study period. At aggregate level,

food and live animals (SITC-0), beverages and tobacco (SITC-1),

manufactured goods (SITC-6), miscellaneous manufactured articles

(SITC-8) and commodities and transactions not classified by kind (SITC-

9) realized quick decline in their contribution to total exports. Contrary to

this, the product groups crude materials (SITC-2), mineral fuels,

lubricants and related materials (SITC-3), chemicals (SITC-5) and

machinery and transport equipments (SITC-7) registered sharp increase

in their contribution in total exports during the period from 1992 to

2006, whereas the share of animals and vegetables oil and fats (SITC-4)

remained almost as same as in the initial year. Meanwhile, crude

materials (SITC-2) and mineral fuels (SITC-3) had registered an increase

in their contribution from 5.07 per cent and 2.81 per cent in 1992 to

7.01 per cent and 14.87 per cent respectively in 2006. The share of

chemicals (SITC-5) and machinery (SITC-7) which has recorded 7.06 per

cent and 7.00 per cent in 1992 increased to 11.85 per cent and 11.18

per cent respectively in 2006. On the other side, food and live animals

(SITC-0) and beverages and tobacco (SITC-1) experienced a sharp decline

from 14.71 per cent and 0.93 per cent in 1992 to 7.63 per cent and 0.33

per cent respectively in 2006. The product groups namely manufactured

goods (SITC-6) (40.33 per cent) and miscellaneous manufactured articles

(SITC-8) (20.09 per cent) jointly contributed approximately 60 per cent of

Indias total exports in 1992 which quickly declined and reached at 45per cent level in 2006 (i.e. 30.52 per cent and 15.15 per cent

respectively). In case of commodity groups namely animals and

vegetables oil and fats (SITC-4) and commodities and transactions not

classified by kind (SITC-9), the decline in their relative share was found

to be smoother as compared to the others.


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At disaggregate level, in case of food and live animals (SITC-1), the

sub groups, viz. fish and fish preparations (SITC-1), fruit and vegetables

(SITC-1), coffee (SITC-07) and feed-stuff etc. (SITC-08) has registered a

decline in their share in total exports of India, from 3.21 per cent, 2.35

per cent, 3.02 per cent and 2.89 per cent in 1992 to 1.39 per cent, 1.35

per cent, 1.05 per cent and 0.98 per cent in 2006. cereals (SITC-04) and

sugar (SITC-06) commodities realized a moderate decline in their share in

total exports. Only the live animals (SITC-00) and meat (SITC-01) have

slightly increased their contribution in total exports in the same group.

Almost all the commodities in the crude material group (SITC-2)

registered an increase in their contribution to total export of India during

the study period. Among the commodities in mineral fuels etc., the

materials product group (SITC-3), petroleum and petroleum product

(SITC-33) have realized fabulous increase from 2.57 per cent to 14.87 per

cent in total exports of India. Among the product group chemicals (SITC-

5), the commodities namely chemical elements (SITC-51), crude

chemicals (SITC-52), medicinal and pharmaceuticals (SITC-54), plastic

material (SITC-58) and chemical materials (SITC-59) reported consistent

rise during the concerned period. In manufactured goods group (SITC-6),

leather etc. (SITC-61), non-metallic minerals manufacturers (SITC-66)

had experienced a steep decline from 3.01 per cent, 14.14 per cent, and

15.90 per cent in 1992 to 0.87 per cent, 6.97 per cent and 9.80 per cent

respectively in 2006. All the remaining exports in this group realized a

decline in their contribution to total exports. Exports of textile yarn etc.

(SITC-65) showed dramatic decline during this period from 14.14 per

cent to 6.97 per cent. All the commodities in the machinery andtransport equipment (SITC-7) registered an increase in their contribution

to total export of India during the study period. In the product group

SITC-8, clothing (SITC-84) and footwear (SITC-85) also had experienced

consistent decline in contribution to exports of India from 15.01 per cent

in 1992 to 7.59 per cent in 2006.


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Thus, the commodities which experienced high growth in

percentage contribution during the study period were petroleum and

petroleum products (SITC-33) (from 2.57 per cent to 14.73 per cent),

metalliferous ores and metal scrap (SITC-28) (from 2.35 per cent to 3.92

per cent), chemical elements and compounds (SITC-51) (from 2.20 per

cent to 4.89 per cent), iron and steel (SITC-67) (from 2.55 per cent to

5.93 per cent), non-ferrous metals (SITC-68) (from 1.02 per cent to 3.34

per cent), machinery other than electric (SITC-71) (from 2.77 per cent to

4.26 per cent), electrical machinery, apparatus and appliances (SITC-72)

(from 1.40 per cent to 3.24 per cent), transport equipments (SITC-73)

(from 2.83 per cent to 3.68 per cent) and miscellaneous manufactured

articles (SITC-89) (from 2.49 per cent to 5.47 per cent). On the other,

several commodities experienced quick decline in percentage

contribution during the study period.

In the context of Indias share in world exports, at aggregate level

(SITC Digit 1), only two commodity groups i.e. food and live animals (1.12

per cent) and manufactured goods classified chiefly by materials (SITC-6)

(1.50 per cent) had more than one per cent share in world exports in the

year 1992. However, there were six commodity groups including the

above mentioned two commodity groups which have recorded more than

one per cent share in world exports were food and live animals (from 1.12

per cent in 1992 to 1.71 per cent in 2006), crude materials (SITC-2) (from

0.77 per cent in 1992 to 2.36 per cent in 2006), mineral fuels, lubricants

and related materials (SITC-3) (from 0.24 per cent in 1992 to 1.28 per

cent in 2006), chemicals (SITC-5) (from 0.46 per cent in 1992 to 1.24 per

cent in 2006), manufactured goods (SITC-6) (from 1.50 per cent in 1992to 2.41 per cent in 2006), miscellaneous manufactured articles (SITC-8)

(from 0.87 per cent in 1992 to 1.54 per cent in 2006). However, the

commodity groups like crude materials (SITC-2) and mineral fuels,

lubricants and related materials (SITC-3) had registered a sharp increase

in their share in world exports.


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At disaggregate level (SITC Digit 2), many commodities show a

large share in world exports. The non-metallic mineral manufactures

(SITC-66) (from 4.63 per cent in 1992 to 6.53 per cent in 2006), textile

yarn (SITC-65) (from 2.57 per cent in 1992 to 4.27 per cent in 2006),

unmanufactured textile fibers (SITC-26) (from 0.54 per cent in 1992 to

5.90 per cent in 2006), crude fertilizers and crude minerals (SITC-27)

(from 1.64 per cent in 1992 to 4.51 per cent in 2006), feed stuff for

animals (SITC-08) (from 3.32 per cent in 1992 to 3.77 per cent in 2006),

leather etc. (SITC-61) (from 3.98 per cent in 1992 to 3.72 per cent in

2006), clothing (SITC-84) (from 2.48 per cent in 1992 to 3.45 per cent in

2006) and metalliferous ores and metal scrap (SITC-28) (from 1.73 per

cent in 1992 to 3.13 per cent in 2006) have recorded a significant rise in

their share in world exports.

Table 3.15 highlights the trends in Indias exports at disaggregate

level (SITC Digit 3) during the period from 1992 to 2006. The two

commodity groups, i.e. pearls and precious and semi-precious stones

(SITC-667), and Clothing (SITC-841) which had quite high share in

Indias overall exports had experienced a steep decline in their

contribution from 15.32 per cent and 15.28 per cent in 1992 to 8.70 per

cent and 7.86 per cent respectively in 2006. Some other commodity

groups, viz. manufactures of leather (SITC-612), articles of rubber (SITC-

629), textile yarn and thread (SITC-651), cotton fabrics (SITC-652), textile

fabrics (SITC-653) and fish (SITC-031) also registered a decline in their

share in Indias exports during the study period. Interestingly, share of

commodity group namely petroleum products (SITC-332) in Indias total

exports increased fabulously from 2.62 per cent in 1992 to 14.85 percent in 2006. The other commodities groups that had experienced

significant increase in their shares in Indias exports were iron ore and

concentrates (SITC-281), organic chemicals (SITC-512), ingots and other

primary forms of iron (SITC-672), universals, plates and sheets of iron

(SITC-674), tubes, pipes and fittings of iron ore (SITC-678), copper (SITC-


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682), machinery and appliances non-electric (SITC-719), electric power

machinery and switch (SITC-722), road motor vehicles (SITC-732), and

jewelry (SITC-897). In the nutshell, out of total 67 product groups at

SITC digit 3 level, only 27 product groups realized upward shift in their

shares, and other remaining product groups more or less were

characterised by downward trend in their share in Indias total exports

during the study period.

All the commodity groups at SITC digit 3 level recorded increase in

their share in world exports except the commodities such as tea and

mate (SITC-074), manufactures of leather (SITC-612), cotton fabrics

(SITC-652), aluminum (SITC-684), road vehicles etc. (SITC-733) and

travel goods (SITC-831). The important commodity groups of Indias

exports which have large share in world exports in 2006 were rice (SITC-

042) (14.91 per cent), tea and mate (SITC-074) (13.18 per cent), spices

(SITC-075) (14.54 per cent), cotton (SITC-263) (13.93 per cent), iron ore

and concentrates (SITC-283) (12.01 per cent), pearls and precious and

semi-precious (SITC-667) (14.79 per cent), and jewelry (SITC-897) (12.11

per cent). Out of them, tea and mate (SITC-074) had registered a decline

in its share (from 17.20 per cent to 13.18 per cent) in the world exports,

whereas rice (SITC-042) (from 8.03 per cent to 14.91 per cent), cotton

(SITC-263) (from 1.37 per cent to 3.93 per cent), iron ores and

concentrates (SITC-281) (from 6.04 per cent to 12.01 per cent) and

jewelry (SITC-897) (from 2.05 per cent to 12.11 per cent) had experienced

a sharp rise in their share in the world exports during the study period.

3.6 Direction ofIndias Exports

Table 3.16 outlines the region-wise directional changes in Indiasexports in terms of relative shares of the different export markets. As is

clear from the table, the relative share of OECD countries in total export

earnings declined steadily from 58.40 per cent in 1991-94 (T.A) to 44.85

per cent in 2003-06 (T.A). Among OECD countries, share of European

Union, and Asia and Oceania regions declined steadily whereas that of


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North America increased slightly over the same period. The relative

shares of Organization of Petroleum Exporting Countries (OPEC) and

Developing countries rose uniquely from 9.70 per cent and 22.99 per

cent in 1991-94 (T.A) to 15.18 per cent and 37.35 per cent in 2003-06

(T.A) respectively, whereas during the same period, the share of Eastern

Europe fell sharply from 6.61 per cent to 2.16 per cent. Among the

Developing Countries, the share of Asia region particularly of South

Asian Association for Regional Cooperation (SAARC) countries, Africa and

Latin America regions increased sharply over the period. Thus, the

direction of Indias exports moved toward the developing countries of

Asia, Africa, and Latin America.

Looking at Indias region-wise growth of exports, exports grew at

21.12 per cent towards Latin American countries, at 16.89 per cent

towards Africa, at 15.11 per cent towards Asia and at 15.82 per cent

towards OPEC. However, the growth of exports towards OECD, EU, North

America, and Asia and Oceania which was 14.88 per cent, 15.76 per cent

, 17.37 per cent and 10.99 per cent respectively during sub-period 1991-

96, have come down to 9.71 per cent, 12.33 per cent, 7.66 per cent and

3.92 per cent respectively during the sub-period 2001-06. Meanwhile,

India experienced quite high growth of exports towards OECD countries

as it was 1.91 per cent during sub-period 1991-96 but has risen to 14.33

per cent in the subsequent sub-period 2001-06. Thus, growth of exports

to developing regions was found to be much higher than that of the

developed ones during the study period. Moreover, the data clearly

indicates that developing countries of Asia, Africa, Latin America and

OPEC countries emerged as most favoured destinations for exports fromIndia throughout the period under study as export growth to these

regions remained quite high as compared to developed regions of OECD

(9.19 per cent) and Eastern Europe (2.68 per cent) during the whole

study period.


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Table 3.17 provides the directional changes in Indias exports in

terms of relative shares of the different export markets by countries.

Among the developed countries, the relative share of all the countries

except Canada has declined during the study period. Even increase in

relative share of Canada was found to be quite moderate. However, U.S.A

has gained its share from 17.76 per cent in 1991-94 (T.A) to 21.30 per

cent in 1997-00 (T.A), but further it declined to 17.10 per cent in 2003-

06 (T.A), even then it remained at the top among all other export

partners in terms of relative share in Indias total exports. Germany(7.24

per cent to 4.15 per cent), Japan (8.27 per cent to 3.69 per cent) and

Russia (5.12 per cent to 0.86 per cent) have dramatically lost their

shares during the study period.

Among the developing countries, except Saudi Arabia, Tanzania,

Thailand, and Zambia, relative shares of all the countries have

experienced upward trend during period under study. Relative share of

United Arab Emirates (U.A.E), Peoples Republic of China and Singapore

in total export earnings increased considerably from 4.58 per cent, 0.76

per cent, and 2.91 per cent in 1991-94 (T.A) to 8.39 per cent, 5.97 per

cent, and 4.16 per cent respectively in 2003-06 (T.A). The increase in the

relative shares of Hong Kong, Indonesia and Bangladesh was quite

moderate, i.e. from 4.39 per cent , 0.87 per cent and 1.89 per cent to

4.62 per cent, 1.57 per cent, and 2.10 per cent respectively over same

the period. U.A.E and China has emerged as number two and three

export destinations respectively during the period. The relative share of

Saudi Arabia, Tanzania, Thailand, and Zambia declined from 2.15 per

cent, 0.31 per cent, 1.36 per cent, and 0.14 per cent in 1991-94 (T.A) to1.85 per cent, 0.22 per cent, 1.34 per cent, and 0.06 per cent in 2004-06

(T.A) respectively during the period. The collective share of selected

developed countries in Indias overall export earning has experienced

strong decline from 59.50 per cent to 40.97 per cent. Contrary to this,

share of selected developing countries, has increased sharply from 25.63


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per cent to 40.61 per cent over the study period, which clearly highlights

the increasing importance of developing countries as export partners.

Table 3.18 brings out unit value index, quantum index and terms

of trade during the period from 1991-92 to 2005-06. By assuming base

year 1991-92, indices of terms of trade have been worked out. The unit

value index of exports has increased to 233.56 per cent in 2006-07,

whereas unit value index of imports after reaching its ever highest value

of 214.49 per cent in 2004-05, slided down to the level of 196.70 per cent

in 2006-07. Thus, increase of unit value index of exports experienced

sharper rise than unit value index of imports during the study period

and this is quite encouraging phenomenon for Indian economy in terms

of developments in merchandise trade. In the same way, net terms of

trade turned out to be favourable to Indias exports as net terms of trade

index has jumped to 118.74 per cent in 2005-06 from the base year.

However, net terms of trade index remained fluctuating throughout the

study period, but terms of trade remained favourable except during

2002-03 (94.09 per cent) and 2004-05 (92.36 per cent). However, the

quantum index of exports registered less increase (558.01) than

quantum index of imports (897.81 per cent) during the same period. It is

noticeable here that the quantum index of imports experienced sharp

increase after 2004-05 (488.16 per cent) and reached to almost its

double level of 897.81 per cent in 2006-07. But, quantum index which

had little difference from quantum index of imports in 2004-05 (430.97

per cent) experienced less increase in its value in 2006-07 (558.01 per

cent). Gross terms of trade, based on the values of export and import

quantum index, also turned out to be favourable to Indias exports asgross terms of trade index has jumped to 160.90 per cent in 2005-06

from the base year value. Moreover, the income terms of trade has also

been found to be favourable as income terms of trade index has reached

to the level of 662.60 per cent in 2006-07 from its base in 1991-92.


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Table 3.19 elaborates the values of commodity concentration and

geographic concentration index of Indias exports during the period

1991-92 to 2005-06. It is evident from the table that the commodity

concentration index ranged from 0.65 to 0.71 during the study period.

India has been unable to diversify its export basket as the value of

commodity concentration index has remained almost constant, i.e. 0.66

with very moderate changes during the mid 1990s. Contrary to

commodity concentration, the value of geographic concentration index

decreased to 0.57 in 2006-07 from 0.63 in 1990-91, which is an

indicator of decreasing geographic concentration of exports. The

geographic concentration index ranged from 0.57 to 0.63 during the

same period. It is held that however, there was some sort of market

diversification in Indias export, but still exports have been concentrated

to a small number of markets during the study period. In the nutshell,

Indias exports have remained concentrated to a small number of

commodities and markets during the study period. It demands

diversification of exports and export destinations in order to make a dent

in the level of concentration in a meaningful manner.

Table 3.20 highlights the contribution of Special Economic Zones

(SEZs) to Indias Exports during the period from 2000-01 to 2005-06.

Data show that value of Indias overall exports and the value of export

form SEZs have increased fastly from Rs. 2,03,571 crore and Rs. 8,552

crore in 2000-01 to Rs. 4,56,418 crore and Rs. 22,840 crore in 2005-06.

Exports from SEZs have grown rapidly than that of the Indias total

exports. The growth rates of exports from SEZs and of Indias exports

were found to be 16.96 per cent and 12.47 per cent respectively duringthe same period. Thats why contribution of exports from SEZs in the

overall exports has increased to 5.00 per cent in 2005-06 from 4.20 per

cent in 2000-01. Hence, it clearly shows the positive impact of SEZs on

Indias export performance during the concerned period.


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3.7 Summing Up

Due to the implementation of economic reforms since 1991 and

Indias joining ofWorld Trade Organization (WTO) and acceptance of its

commitments since 1994, the export sector of the country responded

sharply and experienced several fundamental changes in terms of its

growth, composition, and direction. Over one and a half decade, Indian

economy grew rapidly at 6.18 per cent per annum and its external sector

has performed well during post-reforms period. Indias exports grew at an

average rate of 11.66 per cent per annum. In the context of phenomenal

expansion in world exports, this growth was relatively much higher and

consequently Indias share in world exports grew continuously

throughout the period under study. It was a distinct break from the past

stagnation in Indias export earnings. Moreover, growth performance of

Indias exports during the post-reforms period has been quite satisfactory

as compared to the world exports. The actual growth of exports was

found to be much higher than that of the potential export growth.

The performance of Indias agricultural exports has, however, been

not that satisfactory and their share in overall exports witnessed a

decline since 1991. Increasing share of petroleum products is a

tremendous achievement for Indias export sector and needs special

attention. In nutshell, no major change took place in the overall

composition of exports as manufactured exports have been unable to

raise their share in overall exports earnings. The petroleum exports has

achieved high growth and extended its contribution to total export and

absorb the declining share of agricultural exports.

There was a change in the commodity composition within thebroad commodity groups. All the exports recorded very high growth rate,

however growth was relatively low in case of agricultural exports. The

high growth of the petroleum and manufactured exports as compared to

agricultural exports clearly indicates that the effect of the economic

reforms remained limited to the former type of exports. The analysis of


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the composition at disaggregate level reveals that a small number of

product groups (SITC 2 and 3 digit) were able to increase their share in

the overall exports. The performance of Indias exports in the global

export markets clearly depicts that all the exports had performed quite

well as clearly indicated by their increasing market share in the

respective world exports.

The importance of developed countries as export destination for

Indias exports has rapidly declined and that of developing countries

increased during the study period. Developing countries of Asia, Africa

and Latin America, and OPEC countries emerged as strong markets for

Indian exports with their increasing contribution in total export earnings.

SAARC region too became important for Indian exports. Though the

share of U.S.A declined during the recent few years, but it remained

number one destination for Indian exports during the whole study

period. Having negligible share in Indias export earnings on the eve on

economic reforms, the share of U.A.E and China rose quite fabulously

and both the countries reached number second and third position

respectively in Indias overall exports during the study period. However,

India has been unable to make a strong dent in the concentration of its

exports in terms of commodities as well as export destinations. The

directional change towards developing countries can be considered as an

achievement of Indias exports sector during the study period.

The contribution of Special Economic Zones (SEZs) to Indias exports

has been increasing since 2000-01. Moreover, the terms of trade has been

turned out favourable to the country. However, the WTO has some serious

implications for Indias textile, leather, pharmaceuticals, and agriculturalexports especially in the developed countries markets. But liberalization of

developing economies has many desirable effects on Indian export sector

especially in terms of its growth. The MFA phase out period could positively

hit textile export positively. The newly emerged non-tariff trade barriers

worked as constraints to the exports, which are the outcomes of


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discriminating and biased behaviors of the developed nations which are

hurting the interests of the developing nations. Collective efforts by the

developing courtiers could remove discrimination and biased nature of

WTO policies and could reap beneficial effects on their external sectors as a

whole and especially on export sectors.


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Table 3.1: Macro-economic Aggregates of Indian Economy during the period 1991-92 to 2005-06

Value in Rs. Crore (at Constant prices 1999-2000) Growth Rates (Percentages)

Components/Year

1991-92to

1993-94

1994-95to

1996-97

1997-98to

1999-00

2000-01to

2002-03

2003-04to

2005-06

1991-92to

2005-06

1991-92to

1995-96

1996-97to

2000-01

2001-02to

2005-06GDP (at Factor Cost) 1160304 1402476 1679399 1961731 2409209 6.18 6.15 5.66 7.45

NDP (at Factor Cost) 1047509 1265778 1511061 1753061 2145420 6.05 6.12 5.47 7.34

GNP (at Factor Cost) 1144081 1386440 1665300 1941586 2388794 6.23 6.25 5.63 7.50

NNP (at Factor Cost) 1031286 1249742 1496962 1732917 2125005 6.10 6.22 5.43 7.39

GDP (at Market Prices) 1270642 1532107 1827174 2128165 2616578 6.10 6.03 5.68 7.60

NDP (at Market Prices) 1157847 1395409 1658836 1919495 2352789 5.97 5.99 5.51 7.52

GNP (at Market Prices) 1254419 1516071 1813075 2108020 2596163 6.14 6.12 5.65 7.65

NNP (at Market Prices) 1141624 1379373 1644736 1899351 2332374 6.01 6.08 5.47 7.57

Per Capita GNP at factor cost (Rs) 13094 14929 16937 18687 21921 4.28 4.10 3.68 5.87

Per Capita NNP at factor cost (Rs) 11803 13457 15226 16684 19500 4.16 4.08 3.48 5.75

Gross Domestic Capital Formation 267350 366387 448502 505717 797790 8.68 11.69 7.50 19.06

Net Domestic Capital Formation 154556 229688 280164 297047 534002 9.46 15.24 7.52 25.80

Source: Handbook of Statistics on Indian Economy, RBI (Various Issues)


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Table 3.2: Structure of Indian Economy (Components of Gross Domestic Product at Factor Cost) during the period 1991-92 to 2005-06

Value in Rs. Crore (at Constant prices 1999-2000) Growth Rates (Percentages)

Year1991-92

to1993-94

1994-95to

1996-97

1997-98to

1999-00

2000-01to

2002-03

2003-04to

2005-06

1991-92to

2005-06

1991-92to

1995-96

1996-97to

2000-01

2001-02to

2005-06

Agriculture & allied activities 351969(30.34)

395394(28.23)

430149(25.63

452539(23.10)

492233(20.49)

2.74 3.57 2.08 2.52

Agriculture 322071(27.76)

361860(25.84)

394379(23.50)

412952(21.09)

450330(18.74)

2.73 3.56 2.07 2.6

Industry 224060(19.31)

293031(20.87)

338441(20.18)

387080(19.73)

468898(19.47)

6.04 8.6 3.79 7.33

Mining & Quarrying 30312(2.62)

34912(2.49)

40368(2.41)

44364(2.26)

52127(2.17)

4.48 4.5 4.21 6.09

Manufacturing 166018(14.31)

223522(15.90)

256029(15.27)

296020(15.09)

362440(15.04)

6.36 9.46 3.44 7.76

Electricity, Gas & Water Supply 27730(2.39)

34597(2.47)

42044(2.50)

46697(2.38)

54331(2.26)

5.65 7.81 5.71 5.76

Services 876411(50.35)

1071075(50.90)

1366215(54.19)

1683167(57.16)

2172117(60.05)

7.85 6.68 8.16 9.35

Construction 104101(5.99)

116542(5.55)

142335(5.65)

171352(5.82)

239152(6.59)

7.01 3.65 7.73 13.22

Trade, Hotel etc. 324655(18.65)

424218(20.14)

539055(21.39)

683094(23.18)

931309(25.73)

8.98 8.76 7.72 11.12

Finance, Insurance etc Services**205020(11.77)

249827(11.88)

322937(12.81)

392668(13.33)

490109(13.55)

7.61 7.18 8.22 8.14

Community etc Services*** 242637(13.94)

280489(13.33)

361889(14.34)

436054(14.82)

511547(14.17)

6.66 4.67 8.95 5.87

GDP (at Factor Cost)1160304(100.00)

1402476(100.00)

1679399(100.00)

1961731(100.00)

2409209(100.00)

6.18 6.15 5.66 7.45

Note: *also includes Transport and Communications. **also includes Real Estate & Business Services. *** Social & Personal ServicesValues in Parenthesis are percentages.

Source: Handbook of Statistics on Indian Economy, RBI (Various Issues)


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Table 3.3: Indias Balance of Payment during the period 1991-92 to 2005-06

Value in Rs. Crore Growth Rates (Percentages)

Year/Item1991-92

to1993-94

1994-95to

1996-97

1997-98to

1999-00

2000-01to

2002-03

2003-04to

2005-06

1991-92to

2005-06

1991-92to

1995-96

1996-97to

2000-01

2001-02to

2005-06

1. Total Current Account (a+b) -6,211 -15,504 -19,334 11,829 2,691123.17 -29.37 12.20 -100.00

(i) Exports 56944 104668 146631 227092 38381611.51 16.12 8.68 13.55

(ii) Imports 69096 144348 210178 281555 53208812.14 22.12 8.85 21.45

a. Balance of Trade -12,152 -39,680 -63,547 -54,463 -148,272-12.52 -28.39 0.00 14.26

b. Invisibles 5,941 24,177 44,213 66,292 150,96223.37 43.55 4.23 7.44

2. Total Capital Account (a toe) 16,613 27,873 39,271 44,685 104,85311.15 8.39 -3.39 9.61

a. Foreign Investment 5,106 17,304 17,251 26,254 63,22722.79 150.03 1.39 8.91

b. Loans 5,685 11,500 14,424 2 21,126-51.59 7.89 -6.46 -100.00

c. Banking Capital 6,868 3,093 3,053 18,322 16,87226.43 -80.37 -85.51 -15.35

d. Rupee Debt Service -2,807 -2,912 -3,050 -2,508 -2,0577.12 1.86 1.62 -4.66

e. Other Capital 1,760 -1,111 7,594 2,615 5,68486.71 -82.22 1682.38 1.81

3. C. Errors & Omissions 656 407 952 -1,090 1,055-9.42 5815.62 26.47 -99.56

4. D. Overall Balance (1+2+3) 11,058 12,777 20,889 55,424 108,59998.63 -84.55 3.51 0.00

5. E. Monetary Movements -11,058 -12,777 -20,889 -55,424 -108,599-49.66 547.14 -3.39 0.00

Source: Directorate General of Commercial Intelligence and Statistics, Kolcutta.


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Table 3.4: Foreign Exchange Reserves (End of Financial Year) during the period 1991-92 to 2005-06

Periods

In Rupees crore In US Dollar million

SDRs Gold ForeignCurrency

Assets

Total SDRs Gold ForeignCurrency

Assets

Total

1991-92to

1993-94209 10794 27335 38338 72 3652 13567 19153

1994-95to

1996-97103 14656 68273 83032 30 4328 30110 36648

1997-98to

1999-0018 12975 126948 139941 4 3108 45278 49947

2000-01to

2002-0327 14788 258359 274237 5 3102 81247 86244

2003-04to

2005-0614 21192 568888 595211 3 4818 194064 203048

Growth Rates (Percentages)1991-92

To2005-06

-19.47 0.22 23.34 19.99 -22.43 -3.57 18.71 15.47

1991-92to

1995-96-11.49 6.91 38.36 29.12 -16.82 0.93 31.52 21.34

1996-97To

2000-0120.50 -7.32 17.49 14.55 9.90 -13.10 9.90 7.65

2000-02To

2005-0615.29 -2.42 -7.00 -6.91 12.29 -3.43 -7.96 -7.96

Source: Handbook of Statistics on Indian Economy,RBI (Various Issues).


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Table 3.5: Various Indicators of Indias External Sector during the period 1991-92 to 2005-06 (Percentages)

Component/s 1991-92 1995-96 2001-02 2005-06

Trade Share in World Merchandise Exports *0.56 0.68 0.77 1.07

Share in World Merchandise Imports* 0.58 0.74 0.77 1.35

Share in World Merchandise Trade* 0.57 0.71 0.77 1.22

Export/Imports 92.12 86.73 88.19 69.12

Export/Total Trade 47.95 46.45 46.86 40.87

Import/Total Trade 52.05 53.55 53.14 59.13

Exports/ GDP 6.90 9.10 9.40 13.00

Imports/GDP 7.90 12.30 11.80 19.40

Trade/GDP 14.80 21.40 20.12 32.40Invisibles

Receipts/ GDP 3.60 5.00 7.70 11.10

Payments/ GDP 2.90 3.40 4.60 5.90

Current AccountNet Current Account/ GDP 0.70 1.50 3.10 5.20

Current Receipts/ GDP 10.30 14.00 16.90 24.00

Current Receipts/Current Payments 94.30 88.80 103.80 94.80

Current Account Deficit /GDP -0.30 -1.60 0.70 -1.20

Capital Account Foreign Investment/ GDP 0.10 1.40 1.70 2.60Foreign Investment/ Exports 0.70 14.90 18.20 20.30

Import Cover of Reserves (in months) 5.30 6.00 11.50 11.60

Foreign Debt

Debt Stock/ GDP 28.70 30.8 22.5 17.2

Concessional Debt /Total Debt 45.90 45.3 35.4 28.6

Short term debt/Total Debt 10.20 4.3 3.6 14.1

Total Debt Service/GDP 35.30 25.9 16.6 9.9

Note: *Data related to these components have been related to Calendar years.

Source: Handbook of Statistics on Indian Economy,RBI (Various Issues)


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Table 3.6: Growth of Indias Exports, Imports and Total Trade (at constant Prices) during the period1991-92 to 2005-06

YearExports

(In Rs. Crore)Annual Change

Imports(In Rs. Crore)

Annual ChangeTotal Trade

(In Rs. Crore)Annual Change

BOT(In Rs. Crore)

1991-92 71993 -- 78219 -- 150211 -- -6226

1992-93 76934 6.86 90814 16.10 167748 11.67 -13880

1993-94 88863 15.51 93130 2.55 181993 8.49 -4267

1994-95 100961 13.61 109871 17.98 210832 15.85 -8911

1995-96 132667 31.40 153031 39.28 285698 35.51 -20364

1996-97 142194 7.18 166252 8.64 308447 7.96 -24058

1997-98 133323 -6.24 157995 -4.97 291319 -5.55 -24672

1998-99 137994 3.50 176087 11.45 314081 7.81 -38093

1999-00 159561 15.63 215237 22.23 374798 19.33 -55675

2000-01 197046 23.49 223473 3.83 420519 12.20 -26427

2001-02 204283 3.67 239645 7.24 443928 5.57 -35362

2002-03 248553 21.67 289536 20.82 538089 21.21 -40983

2003-04 263681 6.09 322769 11.48 586450 8.99 -59089

2004-05 309706 17.45 413447 28.09 723153 23.31 -103740

2005-06 345459 11.54 499858 20.90 845318 16.89 -154399

Average 174215 12.24 215291 14.69 389506 13.52 -41076



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Table 3.7: Growth of Indias Exports vis--vis Imports and Total Trade during the period 1991-92 to

2005-06.

. Period/

Sub-Periods

Indias

Exports

Indias

Imports

Indias

Total Trade

1991-1992to

2005-2006

11.51 12.14 11.87

1991-1992

to

1995-1996

16.12 22.12 19.28

1996-1997

to

2000-2001

8.68 8.85 8.79

2001-2002

to2005-2006

13.55 21.45 17.92

Note: Constant Prices using World Export Unit Value Index (IFS-IMF) at 2000 prices Value of Exports at Constant Prices is computed by taking 2000-01 prices asbase year. Note: Average Annual Growth Rates (AAGR) are computed atSource: Directorate General of Commercial Intelligence and Statistics, Kolcutta.


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Table 3.8: Indias Export vis--vis World Exports (at Constant Prices) during the period 1991 to 2006.

YearIndias

Exports*(In US $ Billions)

WorldExports

(In US $ Billions)

Share inWorld

Exports1991 15.94 3183.26 0.56

1992 17.29 3318.24 0.521993 20.02 3373.31 0.591994 22.55 3728.00 0.601995 25.20 4065.79 0.621996 27.79 4334.38 0.681997 31.45 4971.24 0.631998 31.83 5186.84 0.611999 34.74 5495.94 0.632000 42.38 6365.17 0.672001 45.17 6386.47 0.772002 51.80 6607.36 0.782003 55.00 6970.08 0.792004 65.74 7814.00 0.842005 81.62 8534.32 0.96

2006 95.52 9472.89 1.07Average Annual Growth Rates (AAGR)

1991-2006 11.66 7.32 -1991-1995 16.55 7.50 -1996-2000 8.96 8.46 -2001-2006 13.89 7.51 -Source: Handbook of Statistics on Indian Economy, RBI.

Direction of Trade Statistics Yearbook, IM F (Various Issues).


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Table 3.9: Growth of Indias Exports vis--vis Selected Countries (at Constant Prices) during the period1991 to 2006.

Country 1991-2006 1991-95 1996-2000 2001-2006

Developed Countries

Australia 6.17 (15) 7.19 (14) 4.91 (20) 9.93 (10)

France 5.18 (18) 4.61 (19) 6.21 (14) 2.56 (23)

Germany 6.73 (13) 4.95 (18) 5.95 (16) 7.99 (15)

Hong Kong 5.52 (16) 8.84 (10) 5.35 (18) 4.89 (18)

Italy 5.20 (17) 8.24 (11) 3.48 (22) 5.12 (17)

Japan 3.32 (21) 3.63 (20) 4.79 (21) 4.23 (19)

Netherlands 8.63 (9) 6.10 (17) 13.12 (5) 9.53 (11)

Russian Federation 11.92 (4) 20.05 (1) 6.73 (13) 20.95 (5)

United Kingdom 4.79 (19) 6.95 (15) 3.24 (23) 3.55 (21)

United States 4.78 (20) 6.84 (16) 6.12 (15) 3.38 (22)Developing Countries

Bangladesh 11.71(5) 11.12 (8) 17.84 (1) 14.05(7)

China PR 17.35 (1) 14.99 (4) 15.08 (2) 22.61 (3)

Egypt 13.41 (2) 1.72 (23) 12.17 (6) 23.13 (1)

India 12.21 (3) 12.61 (7) 12.00 (7) 16.79 (6)

Indonesia 6.56 (14) 7.81 (13) 7.15 (12) 10.71 (9)Korea, Republic of 8.58 (22) 14.49(5) 7.16 (11) 9.35 (13)

Malaysia 8.15 (10) 16.51(3) 8.95 (8) 7.08 (16)

Maldives 9.44 (7) 9.89 (9) 5.54 (17) 4.03 (20)

Saudi Arabia 9.29 (8) 3.22 (21) 13.38 (4) 22.29 (4)

Singapore 7.94 (12) 17.34 (2) 5.29 (19) 12.93 (8)

Thailand 8.05 (11) 14.27 (6) 8.12 (9) 9.46 (12)

United Arab Emirates 11.31 (6) 2.99 (22) 13.74 (3) 22.65 (2)

World 7.43 (24) 8.11 (12) 7.50 (10) 9.01 (14)Source: Direction of Trade Statistics Yearbook, IMF, Various Issues.

Figures in parenthesis are rank among the selected countries


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Table 3.10: Overall Composition of Indias Exports during the period 1991-92 to 2005-06 (In percentage)

Percent Share Growth Rates

Commodity1991-1994

1994-1997

1997-2000

2000-2003

2003-2006

1991-2006

1991-1995

1996-2000

2001-2006

I. Primary products 22.04 22.21 20.18 16.28 15.87 8.11 15.19 -1.93 12.71A. Agriculture and allied products 17.65 18.56 17.44 13.20 10.62 6.68 17.02 -2.33 4.40

B. Ores and minerals 4.39 3.65 2.74 3.08 5.26 12.16 7.80 0.29 37.78II. Manufactured goods 74.74 75.24 78.06 76.51 73.01 11.38 16.73 10.38 11.24III. Petroleum products 2.23 1.48 0.46 4.64 8.42 24.97 0.38 7.42 41.97IV. Others 1.05 1.06 1.30 2.57 2.70 21.88 20.14 35.58 13.43

Total Exports 100.0 100.0 100.0 100.0 100.0 11.51 16.12 8.68 13.55

Note: Value of Exports at Constant Prices is computed by taking 2000-01 prices as base year.

Source: Handbook of Statistics on Indian Economy, RBI.

Table 3.13: Share of Various Export Items within Manufactured Products during the period 1991-92 to 2005-06 (In

percentage)


Commodity1991-1994

1994-1997

1997-2000

2000-2003

2003-2006

1991-2006

1991-1995

1996-2000

2001-2006

A. Leather and manufactures 9.57 7.27 6.01 5.33 4.06 4.52 9.07 5.66 0.60B. Chemicals and related products 15.05 15.36 15.98 17.93 20.11 14.77 20.21 11.56 14.99C. Engineering goods 19.36 18.62 18.25 21.05 28.03 15.31 18.19 8.43 22.49D. Textile and textile products 37.75 34.60 33.84 30.77 23.77 8.11 15.22 8.61 2.05E. Gems and jewellery 15.25 21.19 22.79 21.95 21.96 16.21 18.34 15.36 10.84F. Handicrafts(excluding handmade carpets) 2.08 1.88 2.23 1.84 0.76 4.63 16.17 11.73 -17.95G. Other manufactured goods 0.94 1.09 0.90 1.13 1.32 15.05 31.11 9.67 16.26

Total Manufactured Exports 100.0 100.0 100.0 100.0 100.0 11.38 16.73 10.38 11.24

Note: Value of Exports at Constant Prices is computed by taking 2000-01 prices as base year.


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Table 3.11: Share of Various Export Items within Agricultural & Allied Products during the period 1991-92 to 2005-06 (In percentage)


Commodity1991-1994

1994-1997

1997-2000

2000-2003

2003-2006

1991-2006

1991-1995

1996-2000

2001-2006

1 Tea 11.49 5.79 7.96 5.92 4.46 0.09 -7.41 6.09 -5.412 Coffee 4.22 7.06 6.53 3.76 3.15 2.32 39.76 -9.40 1.413 Rice 10.17 14.85 17.10 13.33 14.52 9.22 36.48 -6.59 8.52

4 Wheat 0.57 1.66 0.00 3.89 3.99 39.48 32.88 -5.88 -22.925 Cotton raw including waste 3.68 2.84 1.49 0.37 3.42 -1.74 -16.24 -49.04 168.876 Tobacco 4.55 2.41 3.83 3.07 3.14 5.13 -9.35 -2.35 5.397 Cashew 8.37 6.92 7.42 6.75 5.73 4.06 10.74 10.99 2.518 Spices 4.52 4.48 6.48 5.45 4.70 7.68 13.39 3.78 1.459 Oil meals 15.69 13.15 9.45 6.70 9.60 0.93 14.13 -20.24 17.5510 Fruits and vegetables 3.71 2.75 2.39 3.50 4.87 9.29 4.72 3.98 12.10

11Processed fruits, juices,miscellaneous processed items

2.39 3.85 2.98 4.60 3.64 10.49 32.80 2.12 -3.20

12 Marine products 19.22 19.91 18.84 21.88 16.73 5.96 18.65 6.29 -3.8513 Sugar and mollases 2.43 2.46 0.43 4.59 1.77 5.68 -0.99 -31.68 -41.2614 Meat and meat preparations 2.83 3.01 3.25 4.62 5.35 12.58 19.09 10.77 14.0815 Others 6.15 8.85 11.85 11.58 14.94 14.09 33.25 8.04 16.96

Total Agricultural Exports 100.0 100.0 100.0 100.0 100.0 6.68 17.02 -2.33 4.40Note: Value of Exports at Constant Prices is computed by taking 2000-01 prices as base year.Note: *Cashew also includes cashew nut shell liquid.

**Processed fruits & juices etc. also include miscellaneous processed items.


Table 3.12: Share of Various Export Items within Iron and Ore during the period 1991-92 to 2005-06 (In percentage)


Commodity1991-1994

1994-1997

1997-2000

2000-2003

2003-2006

1991-2006

1991-1995

1996-2000

2001-2006

1 Iron ore 54.54 42.20 39.15 36.09 57.91 11.94 -1.75 -9.02 61.672 Mica 1.22 0.67 1.08 0.71 0.51 4.06 -12.09 6.45 4.063 Others 44.24 57.13 59.77 63.19 41.58 12.07 20.00 6.04 18.04

Total Iron and Ore Exports 100.0 100.0 100.0 100.0 100.0Note: Value of Exports at Constant Prices is computed by taking 2000-01 prices as base year.



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Table 3.15: Composition of India's Exports at Disaggregate Level (SITC Digit 3) during 1991-2006SITCCodes

Commodity DescriptionComposition Of Indias Exports Indias Share In World Exports

1992 1996 1992 1996 1992 1996 1992 1996

011 Meat, fresh, chilled or frozen 0.49 0.59 0.54 0.58 0.30 0.50 0.73 1.14

031 Fish, fresh & simply preserved 3.27 3.40 2.71 1.25 2.33 3.07 3.35 2.61

041 Wheat 0.02 0.60 0.71 0.01 0.02 0.96 2.35 0.04

042 Rice 1.85 2.72 2.37 1.25 8.03 13.63 18.72 14.91

051 Fruit, fresh, and nuts - excl. oil 1.69 1.31 1.01 0.69 1.84 1.75 1.92 1.94

054 Vegetables, roots & tubers, fresh o 0.41 0.45 0.46 0.47 0.47 0.70 0.97 1.48

061 Sugar and honey 0.68 0.94 0.76 0.60 1.41 2.18 3.36 3.47071 Coffee 0.72 1.22 0.40 0.35 2.19 3.18 2.44 2.44

074 Tea and mate 1.80 0.87 0.64 0.33 17.2 15.44 13.1 13.18

075 Spices 0.55 0.77 0.41 0.38 9.08 14.6 8.41 14.54

081 Feed.-stuff for animals 2.94 3.04 0.62 1.00 3.32 4.15 1.39 3.77

121 Tobacco, unmanufactured 0.67 0.57 0.30 0.22 2.58 2.94 2.94 3.94

221 Oil-seeds, oil nuts and oil kernels 0.24 0.57 0.29 0.33 0.49 1.23 0.94 1.74

263 Cotton 0.34 1.35 0.02 1.08 1.37 5.47 0.20 13.93

273 Stone, sand and gravel 0.73 0.65 0.62 0.54 5.08 5.77 7.97 9.96

281 Iron ore & concentrates 2.09 1.46 1.69 3.13 6.04 5.45 8.64 12.01

283 Ores & concentrates of non-ferrous 0.29 0.30 0.33 0.70 0.60 0.72 1.25 1.46

292 Crude vegetable materials 0.87 0.93 0.74 0.54 1.43 2.10 2.41 2.82

332 Petroleum products 2.62 1.50 5.04 14.85 0.71 0.47 1.85 4.20

422 Other fixed vegetable oils 0.23 0.49 0.22 0.19 1.00 2.09 1.26 1.52

512 Organic chemicals 1.57 2.76 3.43 4.31 0.44 0.85 1.23 1.97

513 Inorganic Chemicals etc 0.45 0.53 0.57 0.49 0.59 0.85 1.42 1.40

531 Synthetic organic dyestuffs, natural industries 1.37 1.25 0.97 0.64 3.63 4.23 5.69 7.47

541 Medicinal & pharmaceutical products 2.12 2.48 3.44 2.90 0.89 1.07 1.06 1.17

553 Perfumery, cosmetics, dentifrices, 0.28 0.26 0.30 0.21 0.46 0.43 0.56 0.55

581 Plastic materials, regenerated. cellulose 0.27 0.75 1.46 1.76 0.08 0.23 0.58 0.84

599 Chemical materials and products, 0.51 0.82 0.97 0.95 0.28 0.48 0.76 1.04

611 Leather 1.53 0.92 0.99 0.58 3.39 2.09 3.38 3.75

612 Manufacture of leather 1.53 0.96 0.68 0.30 5.7 5.29 5.28 4.21

629 Articles of rubber, 1.12 0.90 0.84 0.74 0.96 0.88 1.15 1.36

651 Textile yarn and thread 3.19 5.48 3.56 2.12 2.75 6.08 6.46 6.69

652 Cotton fabrics, woven 3.39 3.07 1.97 0.73 4.41 4.98 4.65 3.51

653 Text fabrics woven 2.43 1.91 2.26 1.28 1.19 1.23 2.40 2.59

656 Made-up articles, wholly or chiefly 1.98 2.24 2.40 1.72 4.53 6.00 7.00 7.07

657 Floor coverings, tapestries, etc. 3.10 2.00 1.21 0.96 7.88 7.63 7.56 9.87

661 Lime, cement and fabric building materials 0.55 0.79 0.83 0.79 1.37 2.26 3.69 4.59

667 Pearls and precious and semi-precious 15.32 12.71 14.82 8.70 13.1 11.5 15.03 14.79

671 Pig iron, spiegeleisen, sponge iron 0.49 0.52 0.23 0.47 2.3 1.79 1.39 2.38

672 Ingots & other primary forms of iron 0.30 0.37 0.99 1.38 0.37 0.48 1.80 2.35

673 Iron and steel bars, rods, angles etc. 0.98 0.69 0.45 0.59 1.12 0.92 1.02 1.18

674 Universals, plates and sheets of iron 0.26 0.84 1.86 1.85 0.15 0.56 1.90 1.87

678 Tubes, pipes and fittings of iron or 0.23 0.35 0.45 1.10 0.27 0.51 0.97 2.36

679 Iron steel castings forgings etc. 0.16 0.23 0.40 0.42 1.26 1.81 4.25 5.19

682 Copper 0.05 0.06 0.57 2.24 0.05 0.07 1.04 2.60684 Aluminum 0.91 0.56 0.58 0.49 0.7 0.45 0.64 0.63

691 Finished structural parts etc 0.22 0.24 0.16 0.30 0.41 0.59 0.51 1.09

695 Tools for use in the hand 0.45 0.36 0.37 0.33 0.7 0.69 0.94 1.25

697 Household equipment of base metals 0.34 0.40 0.76 0.70 1.07 1.51 3.67 4.87

698 Manufactures of metal 0.89 0.62 0.64 0.63 0.67 0.52 0.67 0.87

711 Power generating machinery, other (T.A) 0.60 0.51 0.52 0.68 0.17 0.18 0.20 0.39

714 Office machines 0.35 0.88 0.53 0.36 0.05 0.12 0.09 0.10

718 Machines for special industries 0.27 0.22 0.22 0.45 0.11 0.10 0.16 0.39

719 Machinery and appliances-non electrical 1.03 1.10 1.66 2.28 0.12 0.14 0.29 0.54

722 Electric power machinery and switch 0.49 0.65 0.79 1.55 0.14 0.19 0.29 0.77

723 Equipment for distributing electric 0.16 0.18 0.33 0.34 0.18 0.20 0.47 0.59

724 Telecommunications apparatus 0.20 0.34 0.29 0.40 0.04 0.07 0.07 0.11

729 Other electrical machinery and apparels 0.44 0.86 0.88 0.64 0.07 0.10 0.13 0.14

732 Road motor vehicles 1.79 2.18 1.65 2.59 0.11 0.17 0.15 0.35

733 Road vehicles other than motor vehicles 0.88 0.46 0.38 0.19 1.44 0.97 1.05 0.66

735 Ships and boats 0.00 0.13 0.22 0.82 0 0.11 0.24 1.24

831 Travel goods, handbags and similar 1.06 0.75 0.66 0.46 2.84 2.39 2.86 2.68

841 Clothing except fur clothing 15.28 12.91 11.85 7.68 2.51 2.76 3.20 3.47

851 Footwear 1.14 1.06 0.84 0.79 0.82 1.00 1.15 1.67861 Scientific,medical,optical,meas./co 0.19 0.24 0.35 0.43 0.05 0.07 0.13 0.19

891 Musical instruments, sound recorders 0.21 0.59 0.52 0.30 0.09 0.33 0.38 0.34

893 Articles of artificial plastic mate 0.31 0.47 0.48 0.43 0.19 0.37 0.44 0.55

897 Jewellery and gold/silver-smiths wa 1.55 1.68 2.81 4.06 2.05 2.99 6.24 12.11

Other Commodities 5.57 6.04 6.98 7.41 - - - -

Total Exports 100 100 100 100 0.60 0.69 0.88 1.16

Source: Comtrade-WITS, UNO.


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Table 3.16: Direction of Indias Exports: Region-Wise during the period 1991-92 to 2005-06 (In percentage)

Percentage Share Growth Rates

Group / Country1991-92

to

1993-94

1994-95to

1996-97

1997-98to

1999-00

2000-01to

2002-03

2003-04to

2005-06

1991-92to

2005-06

1991-92to

1995-96

1996-97to

2000-01

2001-02to

2005-06

I. OECD countries 58.40 56.64 56.99 18.36 44.85 9.19 14.88 7.84 9.71

A. European Union 27.13 26.65 26.18 15.84 21.49 9.20 15.76 6.23 12.33

B. North America 18.80 19.68 22.71 15.49 18.18 11.70 17.37 12.26 7.66

C. Asia & Oceania 9.57 8.30 6.35 3.39 3.53 2.47 10.99 -0.67 3.92

D. Other OECD countries 2.90 2.01 1.75 1.20 1.66 6.66 1.91 8.22 14.33

II. OPEC 9.70 9.52 10.45 8.39 15.18 15.82 17.99 11.88 20.84

III. Eastern Europe 6.61 3.84 3.45 1.87 2.16 2.68 -4.90 5.98 3.74

IV. Developing Countries 22.99 28.46 28.54 22.08 37.35 15.67 26.77 7.71 20.01

A. Asia 19.21 22.98 21.88 17.15 29.60 15.11 25.29 6.81 20.63

a) SAARC 3.83 5.04 4.48 3.32 5.73 14.19 28.76 3.20 17.39

b) Other Asian developing countries 15.38 17.94 17.40 13.83 23.87 15.33 24.33 7.69 21.39

B. Africa 2.83 4.11 4.73 3.27 5.24 16.89 33.54 8.29 16.21

C. Latin American countries 0.95 1.36 1.92 1.66 2.51 21.12 32.95 18.58 21.56

V. Others / unspecified 2.28 1.54 0.57 1.81 0.45 0.01 0.70 11.48 -37.02

Total Trade 99.90 99.95 99.96 99.98 99.99 11.49 16.12 8.68 14.00

Note: OPEC stands for Organization of Petroleum Exporting Countries



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Table 3.17: Direction of Indias Exports during the period 1991-92 to 2005-06: Country-Wise (In percentages)

1991-92to

1993-94

1994-95to

1996-97

1997-98to

1999-00

2000-01to

2002-03

2003-04to

2005-06

1991-92to

2005-06

1991-92to

1995-96

1996-97to

2000-01

2001-02to

2005-06

Developed Countries

Australia 1.15 1.22 1.17 0.95 0.86 8.40 18.12 2.32 8.40

Belgium 3.74 3.51 3.69 3.23 2.87 9.28 15.00 9.65 10.10Canada 1.04 1.01 1.41 1.39 1.07 12.84 13.75 18.99 4.41

France 2.40 2.23 2.37 2.18 2.01 10.12 14.19 11.44 11.91

Germany 7.24 6.17 5.26 4.15 3.62 5.05 11.39 1.24 8.17

Italy 3.11 3.08 3.13 2.77 2.63 9.71 15.37 9.29 11.55

Japan 8.27 6.89 4.99 3.69 2.54 1.03 9.66 -1.32 2.27

Netherlands 2.21 2.40 2.33 1.99 2.11 10.67 19.52 3.77 17.71

Russia 5.12 2.92 2.48 1.73 0.86 -2.31 -6.06 3.95 -11.12

Switzerland 1.10 0.91 0.99 0.89 0.61 6.71 7.36 9.71 -2.34

U.K. 6.37 6.29 5.74 4.97 4.68 8.39 15.72 3.98 12.63

U.S.A. 17.76 18.67 21.30 20.45 17.10 11.63 17.58 11.85 7.87

Total Developed Countries 59.50 55.29 54.87 48.39 40.97 - - - -

Developing Countries

Afghanistan 0.00 0.00 0.00 0.00 0.05 - - - -

Bangladesh 1.89 2.78 2.32 2.22 2.10 11.05 34.13 1.45 4.51

Benin 0.05 0.04 0.07 0.12 0.08 19.67 -0.57 28.67 -1.00Bhutan 0.02 0.05 0.03 0.03 0.11 23.59 99.67 -47.25 65.08

China 0.76 1.28 1.60 2.61 5.97 32.95 55.93 5.39 50.15

Egypt 0.54 0.48 0.73 0.81 0.59 13.89 15.61 19.49 2.50

Hong Kong 4.39 5.68 6.00 5.46 4.62 11.96 32.96 12.41 7.44

Indonesia 0.87 1.64 0.90 1.24 1.57 15.07 44.79 -8.34 15.93

Iran 0.67 0.56 1.46 0.54 1.01 14.64 8.07 26.56 42.27

Iraq 0.02 0.00 0.23 0.01 0.10 - - 71.67 83.64

Kenya 0.29 0.58 0.37 0.36 0.48 13.75 53.51 -2.05 27.81


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96

Table 3.17: Continued.

1991-92to

1993-94

1994-95to

1996-97

1997-98to

1999-00

2000-01to

2002-03

2003-04to

2005-06

1991-92to

2005-06

1991-92to

1995-96

1996-97to

2000-01

2001-02to

2005-06

Kuwait 0.45 0.47 0.48 0.47 0.50 12.63 23.46 5.42 15.55

Malaysia 1.09 1.30 1.19 1.53 1.27 13.20 18.89 3.96 2.86

Maldives 0.03 0.05 0.02 0.06 0.06 16.72 35.15 19.20 14.49Nepal 0.42 0.48 0.42 0.49 0.92 17.32 21.59 -2.31 30.07

Pakistan 0.26 0.31 0.33 0.38 0.58 18.64 15.16 1.23 37.14

Romania 0.07 0.07 0.04 0.04 0.09 11.57 28.06 -7.16 56.17

Saudi Arabia 2.15 1.63 2.11 1.85 1.74 10.48 7.16 10.43 11.33

Singapore 2.91 2.89 1.87 2.31 4.46 14.14 21.43 -1.54 42.94

South Africa 0.00 0.00 0.00 0.00

direction of india's export

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