environmental goods services india vijaya katti
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India's approach is discussedTRANSCRIPT
Environmental Goods and Services: Issues for Negotiations for India
Vijaya Katti
November 2005
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Table of Contents
1. Introduction …………………………………………………………………… p.1
2. Environmental Goods and Services (EGS): Status of Negotiations on EGS … p.3
2.1 Definitions and Classification of EGS …………………………………… p.3
2.2 General Direction of Negotiations on EGS ………………………………. p.8
2.21 Environmental Goods …………………………………………………… p.10
2.22 Environmental Services ………………………………………………… p.13
3. Overview of India‘s Environmental Goods and Services Industry ………….. p.18
4. Challenges and Opportunities for India ……………………………………… p.28
4.1 Multiple Use and Customs Policy ……………………………………….. p.31
4.2 Reduction v/s elimination of barriers ……………………………………. p.32
4.3 Environmentally Preferable Products (EPPs) ……………………………. p.33
4.4 India‘s Export Potential for Environmental Services ……………………. p.35
4.5 Clean Development Mechanism (CDM) …………………………………. p.37
5. Conclusions and Recommendations …………………………………………. p.41
List of Tables
Table 1 – CPC and GATS Categories of Environmental Services ……………… p.7
Table 2 – Composition of Indian Environmental Industry ……………………… p.19
Table 3 – Foreign Affiliation in the Indian Environmental Industry ……………. p.26
Table 4 – Selected Environmental Joint Ventures ………………………………. p.27
Annexure
1. Trade Balance of Indian Environmental Goods as per APEC List
1A. Share of Export and Import of Indian Environmental Goods as per APEC List
2. Major Destinations for India‘s Imports and Exports of Environmental Goods as
per APEC List
3. India‘s Import of Environmental Products and their Growth Arranged in
Descending Order
4. Export of Environmental Goods from India Arranged According to their Growth
during 1998-2003
5. Top 20 Exports of Indian Environmental Goods according to Value in 2002 and
RCA of those Products
6. 20 Environmental Goods of India (experiencing maximum growth rate during
1998-2003) and their Revealed Comparative Advantage
7. Items which have more than one use (dual use or multiple use)
8. Items which can be of interest for India
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ENVIRONMENTAL GOODS AND SERVICES: ISSUES FOR NEGOTIATIONS FOR
INDIA
Abstract
Liberalisation of trade in environmental goods and services (EGS) has become a key
issue at the complex and rapidly developing trade and environment interface. The World
Trade Organisation (WTO) at its fourth Ministerial meeting in Doha in 2001, decided to
negotiate opening the market for EGS and set out a commitment to the
reduction/elimination of tariff and non-tariff barriers to EGS. This paper aims at
examining select issues for negotiations in the area of EGS against the background of the
Doha Ministerial Declaration. Different concepts of environmental goods and
environmental services, the narrower and the broader definitions, are examined and the
OECD and APEC lists are compared and categories of environmental goods are
highlighted. The paper provides an overview of India‘s EGS industry and market, the
existing tariffs on environmental goods and the importance of these products in India‘s
total exports. It identifies environmental goods in which India has comparative advantage
and discusses the potential for environmental services. It highlights the issues which can
be considered for the negotiating agenda by developing countries in general and India in
particular.
Key words: Sustainable Development, WTO, Doha development agenda, India,
environmental goods and services (EGS), liberalization of trade in EGS, environmental
industry and technology transfer
1
ENVIRONMENTAL GOODS AND SERVICES: ISSUES FOR NEGOTIATIONS FOR
INDIA
1.0 Introduction
Liberalisation of trade in environmental goods and services has become one of the highly
debated set of issues, in the complex and rapidly developing trade and environment
interface. At its fourth Ministerial meeting, held in Doha in 2001, the World Trade
Organisation (WTO) for the first time explicitly made trade and sustainable development
an integral part of its trade negotiation agenda. Paragraph 6 of the Doha Ministerial
Declaration reaffirming the commitment to the objective of sustainable development,
mentions that upholding and safeguarding an open and non-discriminatory multilateral
trading system, and acting for the protection of the environment and the promotion of
sustainable development can and must be mutually supportive. By paragraph 16 trade
ministers have decided to negotiate opening the market for environmental goods and
services and by paragraph 31, there is commitment to the reduction / elimination of tariff
and non-tariff barriers to Environmental Goods and Services (EGS). In particular it has
been agreed to take into consideration developing countries‘ market access concerns and
pay attention to products of export interest to developing countries.
In order to fulfil the Doha Mandate, it is critical for developing countries to understand
the current status of their market for EGS. Since the applied and bound tariffs on
environmental goods are low in developed countries and tariffs in developing countries
for these goods are similar to those for industrial goods, negotiations may lead to
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substantial reductions in bound tariffs of developing countries. It is against this
background that developing countries need to identify products in which they have a
comparative advantage. This is absolutely necessary because there is no definition of
EGS yet and their perspectives regarding whether to include all environmentally friendly
products in the list of environmental goods differs.
It has been generally agreed that the negotiations for environmental goods will take place
in the Negotiating Group on Market Access (NGMA) while the negotiations for
environmental services will take place in Council for Trade in Services Special Session
(CTSSS). The Committee on Trade and Environment Special Session (CTESS) is to
work towards clarifying the concept of environmental goods and it is presumed that no
sequencing would be involved between that work and the actual market access
negotiations in the NGMA.
This paper aims to examine select issues for negotiations in the area of environmental
goods & services against the background of paragraph 6 and paragraph 16 of Doha
Ministerial Declaration. This paper has the following objectives:
1. To examine the current status of the environmental goods and services industry
market in India, the existing tariffs for environmental goods and the importance of
these products to India‘s total exports
2. To identify environmental goods in which India has comparative advantage; and
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3. To highlight issues which should be addressed on the negotiating agenda by
developing countries in general and India in particular.
The evidence and lessons that emerge from the investigations of this research paper will
be of interest to all those countries in the South/Southeast Asia region that are trying to
overcome the challenges of effectively integrating sustainable development objectives
into their trade negotiations, and are formulating their negotiating position for the next
round of WTO negotiations. The paper is divided in four sections: environmental goods
and services: state of negotiations in EGS; overview of India‘s environmental goods &
services industry; opportunities for India; and conclusions & policy recommendations.
2.0 Environmental Goods and Services: Status of Negotiations on EGS
2.1 Definitions and Classification of EGS
There is no single universally accepted definition of environmental goods and services
and in the sustainable development debate, different concepts of ―environmental goods‖
and ―environmental services‖ are used. The Doha Declaration does not clearly define
what constitutes ‗environmental goods‘. An environmental good is considered any
equipment, material or technology used to address a particular environmental problem or
as a product that is itself ―environmentally preferable‖ to other similar products because
of its relatively benign impact on the environment (Hamwey et al 2003).
A narrow definition and also a broader definition of environmental goods exist.
According to the narrow definition, environmental goods are those whose use results in a
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beneficial environmental impact—capital goods or technologies required for ‗end-of-the-
pipe‘ pollution abatement. The broader definition, on the other hand, takes into account
the environmental characteristics of the goods themselves and/or their production
processes. This includes the industrial goods used to provide environmental services to
address pollution and waste affecting water, soil and air. These goods generally have
multiple end-uses, only one of which is to provide environmental services, and usually do
not have inherently environmental characteristics. It is their use to provide environmental
services that qualifies them as environmental goods and they have relatively less negative
impacts on the environment at the production, consumption or disposal stage, or even in
terms of being produced in an environmentally benign manner or with ‗clean
technology‘. Examples of these types of goods include: pumps, valves, compressors,
tanks and containers, chemicals used in water purification, air/water filters, trash
compactors, brooms, plastic lining material for landfill sites, ceramic wares and furnaces
used in incineration, sorting equipment for recycling, measuring equipment to monitor
the environment, noise reducing mufflers, etc.
The Organization for Economic Co-operation and Development (OECD) and the
Statistical Office of the European Communities (Eurostat) have defined the
environmental industry as: ―activities which produce goods and services to measure,
prevent, limit, minimize or correct environmental damage to water, air and soil, as well as
problems related to waste, noise and ecosystems‖(OECD 2003). This definition provides
a basis for an indicative list of EGS that extends across environmental media and
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classifies them under three broad rubrics: i) pollution management, ii) cleaner
technologies and products, and iii) resource management.
In yet another approach, some experts have interpreted environmental goods as goods
with inherently beneficial environmental aspects such as biodegradability. According to
this view, products like organic fertilizers, natural dyes and jute and bamboo products
could be brought into the ambit of environmental goods.
Two types of definitions and sectoral coverage under the category of Environmental
Goods have been quoted extensively in the literature – OECD and Asia Pacific Economic
Cooperation (APEC). These lists have formulated the basis for the stands taken by
various countries for negotiations. The APEC list largely includes end-of-pipe
environmental equipment; measuring and testing instruments; alternative power
generating equipment; parts and components of both these categories of products. OECD
has developed three categories of Pollution Management Products, Cleaner Technologies
and Products and Resource Management Products. The OECD list includes all the
categories in APEC list and additionally includes chemicals used in pollution control
processes and some other items (Environmental Goods: A comparison of the APEC &
OECD lists, OECD-2003) in addition to equipments, chemicals, as well as cleaner
technologies, which fit into the wide definition of environmental industry. It also
encompasses cleaner processes and resource management. However, there are many
items in the list that cannot be captured by the HS (Harmonized System) code system for
the purpose of international trade.
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Counting only entries with corresponding Harmonized System (HS) codes, the OECD list
appears to be about 50% longer than the APEC list. However, when one eliminates
multiple listings at the 6-digit level, they are more similar in length: there are 132 unique
HS codes in the OECD list, compared with 104 in the APEC list. The composite list has
233 entries identified with an HS code, covering 198 different goods. These magnitudes
are small compared with the total numbers of lines contained in WTO Members national
tariff schedules, which range from less than 6000 (in the schedules of Australia and
India) to over 11000 (in the schedules of Hungary, Korea, Mexico, and Turkey). In all,
less than 30% of the goods are common to both lists. The greatest areas of overlap are
found in the categories of air-pollution control, recycling, incineration, and measuring
and monitoring equipment (UNCTAD 2003).
An UNCTAD study (July 2005) has set out 2 types of EGS. Type A environmental goods
include industrial goods used to provide environmental services to address pollution and
waste affecting water, soil and air. These goods generally have multiple end-uses, only
one of which is to provide environmental services and usually do not have inherently
environmental services. Usually do not have inherently environmental characteristics; it
is their use to provide environmental services that qualifies them as environmental goods.
Type B category includes Environmentally Preferable Products (EPPs), including both
industrial and consumer goods. These goods have environmentally preferable
characteristics relative to substitute goods, i.e., reduced negative environmental impacts
in production, end-use or disposal and are generally used for purposes other than
environmental ones in commercial and household applications (Kumar 2002).
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The classification of (trade in) ―environmental‖ services in the context of ongoing WTO
negotiations is based on the concept of human-activities-related services. Two major
subcategories are infrastructure-related services, such as sewage, refuse disposal and
sanitation services, and environment-related commercial services (UNCTAD 2003).
Table 1. CPC and GATS Categories of Environmental Services
CPC Division 94: Sewage and Refuse
Disposal, Sanitation and Other
Environmental Protection Services
GATS Sectoral Classification 6:
Environmental Services
9401 Refuse Disposal Services A. Sewage Services
9402 Refuse Disposal Services B. Refuse Disposal Services
9403 Sanitation and Similar Services C. Sanitation and Similar Services
9404 Cleaning Services of Exhaust Gases.
9405 Noise Abatement Services.
9406 Nature and Landscape Protection
Services.
9409 Other Environmental Protection
Services n.e.c.
D. Other
Source: (UNCTAD 2003, Environmental Goods and Services: Challenges and
Opportunities for Central American and Caribbean Countries. Geneva : UNCTAD)
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Environmental services have been defined as: (a) services provided by ecosystems (e.g
carbon sequestration); or (b) human activities to address particular environmental
problems (e.g. wastewater management) (Cattafesta 2003).
2.2 General Direction of Negotiations on EGS
Negotiations in this field are being carried out with the following objectives:
Support member countries in taking measures to improve their environment.
Promotion of production and trade in environment friendly products.
Development of environmental goods and services industry.
Adoption of environment friendly technologies (Joshi 2003).
On the basis of submission to the WTO, proposals put forward by various countries can
be put in the following categories:
(i) APEC list
(ii) Items in OECD list which are not included in the APEC list
(iii) Inherently environment friendly products
(iv) Products made using environment friendly processes (npr-PPM)
(v) Japanese proposal including energy efficient consumer products and CFC free
products
(vi) Qatar‘s proposal of products using low carbon, energy efficient technologies
(vii) Proposal by Taiwan to identify 30 unique tariff lines from APEC list
(viii) A common list and a development list approach given by China
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The focus of deliberation is on the following points:
Should there be a relationship between a country‘s requirements in the environmental
sector and the market access commitments?
Does the WTO have any role to play other than in trade liberalization?
Is greater coherence between different international organizations required?
Does trade liberalization in EGS enhance welfare in developing countries? (Joshi
2003)
Many members propose ‗list-based‘ approaches instead of seeking prior definitional
clarity on environmental goods. For example the US proposed a ‗core-list‘ (on which
consensus exists) and ‗complementary list‘ for which individual countries could nominate
products. Faster liberalisation is ‗envisaged‘ for core-list products (zero tariffs by 2010)
and liberalisation of a minimum of x% on goods in complementary list (which Members
could choose) (Suathan 2004).
China (TN/TE/W/42) has called for a ‗common-list‘ including goods of export interest to
both developed and developing countries and a ‗development list‘ (for Special &
Differential (S&D) treatment born from the common list) list which would include those
goods from the common list eligible for exemption or a lower level of reduction
commitments (Ibid.).
On specific products only Japan (TN/MA/W/15) and Qatar (TN/TE/W/19) and Taiwan
have submitted proposals. Japan‘s list includes products from both APEC and OECD lists
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plus some additional products. Energy efficient consumer equipment is notable. Qatar has
proposed efficient, lower carbon pollution emitting fuels and technologies. Taiwan‘s
submission focuses on pollution control equipment (Ibid.).
2.21 Environmental Goods
There are broader categories of environmental goods suggested by various
groups/members so far during the negotiations. Interestingly, none of the countries agree
on a definition of EGS. Canada, Japan and the United States have adopted broad
definitions of the environment industry. Italy, Germany and Norway, on the other hand,
have chosen narrow ones. The European Commission‘s (EC) definition (1994), includes
clean technologies whereas other definitions, including that used in the Organisation for
Economic Co-operation and Development (OECD) study (1992), tend to exclude clean
technologies (CUTS 2004a).
Earlier discussions focused on the definitional aspects and now in the Negotiating Group
on Market Access (NGMA) some of the Members have expressed views that the
negotiations should take place on a ‗list approach‘ rather than follow the definitional
route. Some definitions have been given, but agreement on a common definition has
never been reached. Efforts are ongoing to carve out a WTO list from the OECD and
APEC lists; some countries have given a list but work is still going on. There have been 9
submissions so far – all from developed countries (Kumar 2002).
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OECD/APEC lists mostly contain products of which developing countries are net
importers.
There are a few products in the OECD/APEC lists for which developing countries (as
a group) are net exporters such as methanol, ethanol, mats and screens, fluorescent
lamps and plastics. Most top exporters are middle income or emerging economies
such as Mexico, Singapore, Korea, Malaysia and Brazil (UNCTAD-
TD/B/COM.1/EM.21/CRP.1).
Several developing countries argue that the product coverage of environmental goods
would need to include more products of export interest to them. Some WTO members
have also argued that environmental goods should include goods produced in an
environmentally friendly manner (e.g. goods identified on the basis of Process and
Production Methods (PPMs)). Examples include renewable-energy products,
biodegradable products from natural fibers such as jute and coir, recyclable products,
non-timber forest products, etc. India (TN/MA/W/10) for example has supported
inclusion of environmental friendly products such as jute products or those based on
biodiversity (Singh 2004b).
Environmentally Preferable Products (EPPs) are distinct from pollution-control goods
and technologies as environmentally beneficial effects arising during course of
production, use or disposal in terms of less pollution or greater resource-efficiency. They
are not used to treat or deal with environmental problems as such. For most developing
countries, products of export interest lie in EPPs rather than environmental equipment,
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per se. However a number of EPPs such as those based on energy-efficiency (for example
refrigerators) raise issues of appropriate classification and evolving technologies
(Suathan 2004).
Organic products are different from other goods because they are inherently
environmentally friendly (through their impact on human health, etc.). It is felt that such
goods must have different customs codes assigned under the international customs
system known as the Harmonised System (HS), which is maintained by the World
Customs Organisation (WCO). The six digit codes, which are regularly updated by the
WCO to take account of changes in technology or patterns of international trade, are
based on national customs codes.
In the latest amendments to the HS codes in January 2002, the WCO, for the first time,
included social and environmental fields, particularly relating to products under certain
MEAs (Multilateral Environmental Agreements), including CITES, the International
Convention on the Conservation of Atlantic Tunas (ICCAT) and the Basel Convention.
Amendments to the HS codes, in order to differentiate between products based on their
environmental characteristics, are arrived at through fairly protracted deliberations in the
WCO. As a start, such customs codes may need to be developed at the national level and
then gradually be harmonized. This issue may also provide an opportunity for developing
countries to play a more proactive role in the WCO to ensure that their trade interests are
taken into account in the development of customs codes (Chaytor 2003).
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The EC is a major proponent of using process-based criteria (PPMs) to include goods
produced in an environmentally friendly manner. India has made it clear that it is against
the inclusion of goods that are produced in a manner that is ‗environmentally friendly‘
(i.e. differentiated on the basis of PPMs). Chile in its submission to the WTO strongly
opposed the definition of environmental goods on the basis of PPMs stating: ‗there is no
place in the GATT framework – nor is it acceptable – for any possible definition of
environmental goods to include the concept of production processes and methods.‘
Similarly, the Republic of Korea has argued that the environmental goods ‗should be
determined in terms of their end-use, but not in terms of their production and process
methods.‘ Under the WTO rules, it is not permitted to discriminate against products
based on PPMs. Therefore products like organic foods and certified timber products are
ruled out of this category (CUTS 2004b).
2.22 Environmental Services
Services are currently being negotiated in the Committee on Specific Commitments on a
bilateral basis, as WTO members respond to each other‘s requests, and thus, it is likely
that in the short term members will use a variety of different classifications for
environmental services. Meanwhile, the Committee on Trade & Environment Special
Session (CTESS) has not yet played the guiding role it has been given on the definitional
issues. The Quad countries (EC, US, Canada, and Japan) are likely to push strongly for a
broadening of the W/120 classification (CUTS 2004b). Since the WTO already had a
basis for the classification of environmental services (i.e., W/120), the negotiations on
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environmental services are considerably more advanced than those on environmental
goods (CUTS 2004b).
The broader OECD definition/classification has found favour with some developed
countries, such as the EC, US, Canada, Japan, Switzerland and Australia. Adopting a core
listing approach, the US is in favour of a new classification that incorporates a list of
environmental sectors that are significant to the provision of environmental services, e.g.,
construction, engineering and consulting. The US also mentions the need to focus the
classification on pollution prevention, rather than ‗end-of-pipe‘ clean up services, i.e.,
goods that are used to clean the environment or prevent pollution. Canada also proposes
the use of clusters in the negotiations, as a check-list. The EC has suggested an advanced
definition that offers more categories than the W/120 classification, based on what it
considers ‗pure‘ environmental services. Such services would be the subject of a cluster
negotiation, so that they would fall within other sections of the GATS (avoiding the
mutual exclusivity pitfall). Australia and Switzerland are broadly in favour of the EC‘s
approach. Switzerland is of the view that there are several fields of activities that would
accommodate the gradual integration of environmental services, which include:
professional services relating to the environment, consultancy, sub-contracting and
engineering relating to the environment, and construction relating to the environment.
Developing countries have not made express proposals on environmental services, apart
from Colombia, which emphasized pollution control and waste management. It accepts
the EC classification as a working basis, but would add three further services: (i) the
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implementation and auditing of environmental management systems; (ii) the evaluation
and mitigation of environmental impact; and (iii) advice in the design and
implementation of clean technologies. Cuba calls for differential treatment in order to
enhance the competitiveness of developing countries (Ibid.).
Various points are being raised over different proposals on EGS submitted by various
countries. Qatar‘s proposal on natural gas raises the question as to whether natural
resources can also be considered as environmental goods and benefit from lower tariff
and non tariff barriers (NTBs) (including subsidies to alternative fuels to coal). If the
intention is to promote environmentally friendly fuels, ‗relativity‘ considerations must be
kept in mind. E.g.: Hydrogen>Ethanol>natural gas>petroleum>coal. What would happen
to trade-preferences to natural gas once use of ethanol or hydrogen becomes common?
Again lowering barriers should also look not only at tariffs but also internal taxes,
subsidies that may provide strong incentives or disincentives to use a particular fuel.
Japan‘s proposal on energy-efficient products raises issues of how appropriate tariff
classification distinctions and trade preferences will be created, say for example, between
a normal and energy-efficient washing machine, the latter which may become obsolete
the following year as technology improves (Suathan 2004). Brazil, Cuba and India
highlighted the problems through submissions; in the discussions in CTESS.
Several problems with the ―list approach‖ have been identified. The list approach is too
diffused to meet environmental objectives. It appears basically to address only market
access objectives. Most of the developing countries are net importers. Export from the
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South is basically to the South; imports are from the North. This will affect small and
medium enterprises, which comprise 60% of the industrial base. It is further indicated
that there is always a need to negotiate as reflected in the ‗living list‘ concept (New
Zealand proposal) which changes the balance of rights and obligations arrived at the
negotiations (Kumar 2002).
Dual and multiple uses of EGS, e.g. electricity meters, heat exchangers, microwave
ovens, etc. also make it difficult to earmark them separately. There is no synergy between
goods and services. Many environmental activities entail delivery of services. There is a
lack of technology transfer mechanism; most of the environmentally sound technologies
are protected by Intellectual Property Rights and many instances of unsuitable
equipments being transferred to developing countries have been noted (Ibid.).
India has proposed the Environmental Project Approach. The objectives of the approach
are as follows:
To bring trade liberalization to meet environmental and developmental goals.
To bring synergy between environmental goods and services.
To address diversity in environmental standards.
To bring common but differentiated responsibilities.
To give policy space to national governments.
To bring market-based initiatives for environmentally friendly goods and services
through capacity building – the World Summit on Sustainable Development also
supports this (Ibid.).
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According to India an Environmental Project includes any activity with a view to
achieving environmental objectives. Goods and services used in the project are to be
decided by a National Designated Authority (DNA) on the basis of techno-economic
valuation in a specified period of time for specified national environmental objectives.
Tariff concessions for the project period need to be considered. Both public and private
projects can be included – some threshold can be put. Many countries already have
something like this – e.g. India and Thailand. This is compatible with the Harmonized
System of classification – Chapter 98 of the WCO Book (Ibid.).
India has given the following advantages of the ‗Project Approach‘ in support of its
argument:
This approach is cohesive and integrated – goods and services – OECD study (1st
July 2005) – potential benefit more for Developing Countries (DCs) if simultaneous
liberalization in goods and services.
It is focused and direct – to the goals of environmental objectives.
It can accommodate changing needs of global environmental requirements.
Some of the positive measures include:
Technology transfer – with the services, leading to capacity building.
Does not affect market access schedules of the goods – does not lead to ―zero-for-
zero‖ Sectoral non-agricultural market access (NAMA) negotiations.
It also enhances mutual supportiveness of trade and environment – Para 31(iii)
objective (Ibid.).
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India claims that the Project Approach also achieves Transfer of Technology (ToT)
objectives. Transfer of Environmentally Sound Technologies (ESTs) is expected to
increase compliance with the Technical Barriers to Trade Agreement (TBT) and the
Agreement on Sanitary and Phytosanitary Measures (SPS), to give more market access in
developed countries, enhance indigenous capacity building in EGS, and increase
compliance with MEAs. Imports of ESTs are expected to increase the exports leading to
net trade gain – (+) and reduction in overall cost of the global economy. More availability
of EGS reduces the cost to the environment and improves environmental benefits (Ibid.).
3.0 Overview of India’s Environmental Goods and Services Industry
In India, the environment has emerged as a distinct industry in recent years. Today, there
is a wide range of EGS. These include products that minimize material and energy use,
reduce environmental risk, and prevent pollution right at the source. This sector was
virtually non-existent in India until two decades ago. Nonetheless in the past decade, with
increasing environmental awareness in all sections of society and positive response by the
industry and government, India has been turning into a promising market for EGS.
India‘s current spending on environmental protection is approximately to the order of
0.5% of its GNP compared to 1-3% in developed nations. The environmental
infrastructure services segment is in the realm of Urban Local Bodies while
environmental support services have traditionally been part of integrated engineering
consulting services. The first comprehensive estimate of the Indian environment market
including equipment and services was made for the year 1994 and valued at US$1.9
billion by Confederation of Indian Industry (CII) – 1996. However, the estimate was
19
conservative since it did not cover segments like industrial non-hazardous solid waste
treatment or sanitation. The estimates were based on secondary data collected from
government agencies, industry suppliers and multilateral and bilateral assistance
agencies. A more recent estimate, in 2002, valued the Indian environment market at US$
4.36 billion, with an annual growth rate of 15 per cent. In 2000, the market was estimated
at US$ 3.29 billion, and in 2001 at US$ 3.79 billion. The market estimate included
environmental management technology, equipment and services, including clean and
renewable energy (Sawhney & Chanda 2003).
The domestic environmental industry in India is still highly disorganized and is
dominated by the Small Scale Industry units that lack the resources to invest in Research
and Development as well as in marketing and servicing infrastructure. The environmental
business is shared by a number of entities including equipment suppliers, system
suppliers, engineering procurement and construction contractors, consultants and service
providers. Table 2 summarizes the role of different entities and overall composition of the
industry.
Table 2. Composition of Indian Environmental Industry
Business entities Details of products and services
Equipment suppliers (specialized)
Manufacturers of filter presses, oil separators, dust
collectors, bag filters, electrostatic precipitators, etc.
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System supplies
Chemical suppliers
Engineering procurement and
construction (EPC)
contractors/lump sum turnkey
contractors
Consultants
Build Own Operate and Transfer
Essentially contractors who put together various
equipments and who guarantee performance of the
system (water treatment or dust emission control,
etc.)
Used in the conditioning of water or wastewater as
part of the treatment process.
The environment projects are part of larger
packages done by entities who may not have the
process know how, but are able to put together
several packages and implement the whole project
with their project management and construction
capabilities
They provide concept development, project
budgeting, detailed engineering, environmental
impact assessment, troubleshooting, environmental
audit, and a variety of such services.
Not very common now, but the future holds
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(BOOT) and Build Own Operate
(BOO) Operators
Analytical services like
laboratories, etc.
enormous scope for outsourcing the water/waste
water treatment and facilities management to third
parties, allowing companies to focus on the core
area of their business.
Suppliers of monitoring and analytical equipment
and laboratory services providers.
Source: Singh, Sandeep, ―Trade Preferences and Growth of Environmental Industry:
Issues and Implications for India‖, Indian Journal of Economics & Business, Vol. 3,
No.2, 2004, p. 293.
The total environmental market in India was estimated to be around US$8 billion in 2000
and is expected to grow to approximately US$ 13 – 14 billion by year 2005. Active
financial participation of multilateral and bilateral agencies in large urban environmental
infrastructure projects has also helped to a large extent in this regard. There are many
successful joint venture partnerships with countries like USA, UK, Germany,
Netherlands, Canada, and Sweden, etc. The market in India for environmental business
in pollution control equipment is estimated to be growing around 10 – 12 % per annum.
The development of the Indian environmental industry in the past two decades reveals
that the growth has been essentially demand driven. The Central Pollution Control Board
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was constituted in 1974, essentially to implement provisions of the Water (Prevention
and Control of Pollution) Act. Subsequently a full-fledged Ministry of Environment and
Forests was established in 1985, and a comprehensive Environment Protection Act came
into being only in 1986. Thus the environmental industry took off only after 1986
(Mattoo & Stern 2003).
In response to increased demand for pollution control equipment as a result of stricter
regulations and laws, some Indian companies started manufacturing some of these
products while many other such equipment, where demand did not justify domestic
production or where the technology was not available, continued to be imported from
companies outside India.
Hazardous waste treatment is another area where the demand for EGS is increasing
rapidly. It has been estimated that approximately 5 million tonnes of hazardous waste is
generated annually in India, most of which is in the four highly industrialized states of
Maharashtra, Tamil Nadu, Gujarat, and Andhra Pradesh. As the market is in the early
stages of development, there are several technological gaps that produce opportunities for
imported technologies and goods. Indian companies do not have advanced technologies
in the areas of cyanide and phenolic waste treatment, solidification and stabilization of
solid waste, and plasma and hydrogenation technologies.
The air pollution control segment also represents a big slice of the overall market. As per
estimates, the Indian market in air pollution control and management is estimated at US$
23
408 million. India‘s air pollution control industry has developed capabilities for
manufacturing a diverse range of equipment for dust collection in the stationary air
pollution control subsection. India‘s expertise is, however, limited in the case of special
gaseous pollutants.
Since certification and labeling are essential to endorse the eco-sensitivity of
commodities and compete in the global market, firms in developing countries are
increasingly moving towards the introduction of environmental management systems. On
the industrial front, the ISO 14001 certification is the most popular tool to indicate
environmentally friendly management systems worldwide. Indian industry also has
responded positively to this challenge, as can be seen very clearly. The ISO survey 2003
reveals that ISO 14000 certificates have increased from 1 to 879 between 1995 and 2003
and ISO 9000 certificates have increased from 1023 to 10,198 in the same period.
As per estimates by the Confederation of Indian Industry (CII), India has approximately
350–400 pollution control equipment manufacturing and environmental consulting
companies. Over 100 companies in India are associated with international companies in
the form of joint ventures and technology transfer agreements for various types of
pollution control equipments (Singh 2004a).
Trade liberalization in India systematically removed trade barriers and restrictions on
FDI, post-1991. Investment in the environmental services sector has been autonomously
open with 100% FDI in India; domestic firms are engaged in both joint venture and long-
24
term strategic partnerships. Joint ventures have been prominent in the Indian environment
industry, and over 100 companies have associations with international companies in the
form of joint venture and technology transfer agreements for various types of pollution
control equipments. While there are various joint ventures and collaborative
arrangements in the environmental goods sector (between 100 to 150) there are fewer
arrangements in environmental consultancy services sector.
Foreign direct investment (FDI) in environment equipment and services (i.e. manufacture
of pollution control equipment, sewage, refuse, and consultancy services) are allowed
under the automatic route with up to 100 percent foreign equity holding.
However, foreign investment has been largely routed through the Foreign Investment
Promotion Bureau (FIPB) in India, since it comes with a written approval of the
Government of India. Thus while the automatic route is open for foreign investment in
environmental services, the FIPB has been approving several of these projects. During
1993 through 2002 the total FDI in the environment sector approved by the FIPB
amounted to US$ 32.7 million. The largest share of this foreign investment came from
the US (US$ 10.42 million $, 31.86% of all countries), followed by the Netherlands (US$
7.63 million or 23.33% of all), Singapore (US$ 5.93 million, 18.65% of all), UK (US$
2.83 million, 8.65% of all) and Germany (US$ 2.11 million, 6.45% of all) (Sawhney &
Chanda 2004). In 1991–2 there was no FDI or foreign technology cases (FTCs) in the
environment sector approved by the FIPB in India. Countries like Canada consider the
prospects for investment. Countries like Mauritius, Italy, Denmark, France and Japan also
invested in Indian environmental industry in terms of capital or technology.
25
Some of the Indian environmental services firms have established long term strategic
partnerships with foreign firms to enhance their skills in selected niche areas: for
example, in 1997, Technofab Engg (India) formed Tetra Tech India Ltd under a joint
venture with Tetra Tech EMI (US) to offer consultancy and engineering services in
environment, energy, and infrastructure. Engelhard Environmental Systems (India) Ltd.,
a joint venture of U.S.-based Engelhard Corporation and India-based UCAL Fuel
Systems Ltd., has started production at India's first auto-emission catalyst plant. Foreign
companies have also opened subsidiaries in India to take advantage of lower cost of
manufacturing there. Companies like Pentair Water India Ltd., Hindustan Dorr-Oliver
Ltd., IRG Systems South Asia Ltd., Acres International and Montgometry Watson
Consultants India Private Ltd. have opened subsidiaries in India in producing
environmental products (Singh 2004a).
An increasing number of Indian companies are seeking expertise in the EGS sector from
other OECD countries. They have been receiving good responses from companies in the
US, Germany, Netherlands, Japan, Italy, and Canada. Several European and US players
have already established their presence and market share through partnerships with
Indian firms. These companies are setting up shops considering not only the domestic
market but also the cheap and trained manpower.
A few big Indian engineering companies like Thermax Ltd, Engineers India Ltd, and
BHEL (Bharat Heavy Electrical Ltd) offer services and equipment as part of turnkey
consulting services. Of late many Indian companies have entered into joint ventures with
26
companies and some US companies have also started setting up wholly owned
subsidiaries after the government permitted 100% FDI for equipment manufacturing and
for consulting/management services in the sector.
U.S. suppliers of environmental products and services have found India to be a receptive
and profitable market in recent years. As India globalizes its economy and struggles to
cope with environmental concerns exacerbated by its high population growth and
urbanization, U.S. solution providers are discovering increasing opportunities.
Foreign Affiliation in the Indian Environment Industry and Selected Environmental Joint
Ventures are furnished in Table 3 & 4.
Table 3. Foreign Affiliation in the Indian Environment Industry
Indian Company Foreign Partner
General Electric Company of India, Ltd American Air Filter International SA
Paramount Pollution Control Pvt. Ltd. Anderson
Flakt India ABB Environmental Services
Hindustan Development Corporation Ltd. C-E Air Preheater Combustion Eng.
Thermax Limited Babcock & Wilcox, USA,
General Electric Environmental Services, Inc.
Saraswato Omdistroa; Sumdocate Smith & Loveless
Humphreys & Glasgow Ltd. Jacobs Engineering Ltd.
27
Source: Sawhney, Aparna and Chanda, Rupa (May 2003) ―Trade in Environmental
Services: Opportunities and Constraints‖ Working Paper No. 102, Indian Council for
Research on International Economic Relations (ICRIER), New Delhi, p. 58.
Table 4. Selected Environmental Joint Ventures
Company Foreign partner
Vestas RRB India Limited
Tata BP Solar India Ltd.
Suzlon Energy Ltd.
BHEL-GE Gas Turbine Services
Flakt India Ltd.
Kirloskar Electric Ltd.
Hindustan Development Corporation
Ltd.
Vestas Wind System A/S, Denmark
BP SOLAR (a wholly owned subsidiary of the
erstwhile British Petroleum), the UK
Sudwind Energie, Germany
General Electric, the US
ABB Environmental Services
Wind Energy Group, UK; NEPC, India
C-E Air Preheter Combustion Engineering
28
Paramount Pollution Control Ltd.
Thermax Ltd.
Humpherys & Glasgow Ltd.
Anderson, the UK
Babcock & Wilcoz, US, General Electric
Environmental Services, Inc.
Jacobs Engineering Ltd.
Source: Singh, Sandeep, ―Trade Preferences and Growth of Environmental Industry:
Issues and Implications for India‖, Indian Journal of Economics & Business, Vol. 3,
No.2, 2004, p. 297.
4.0 Challenges and Opportunities for India
The market for environmental services in developing countries such as India has been
growing due to increased environmental regulations, urbanization, and industrialization.
In 2001, about 28% of the billion plus Indian population (about 285 million) were living
in cities and the proportion of urban population is expected to further increase to 40% by
2021. Moreover, enhancement in the set of domestic environmental regulations,
liberalization and increased private participation in municipal activities during the last
decade has increased opportunities for trade in environmental services.
An attempt has been made in this section to examine the import export structure of
environmental goods of India as per APEC List for five years i.e. from 1998-99. Despite
the presence of a large number of domestic players and setting up of many joint ventures
29
with foreign companies to cater to the demand, a large number of environmental goods
are required to be imported into the country. Indian imports in this category are quite
significant as compared to exports. Moreover, imports exceed exports in almost all the
items for all the five years i.e. on continuous basis except a few items. As can be seen
from Annexure 1, India faces deficit in the balance of trade in 84 items out of 100
environmental products traded by India. (Based on author‘s own analysis of data
downloaded).
Major export and import destinations of Indian environmental goods have also been
identified in Annexure 2. US, EU, UK, Germany and in some cases Japan are the major
developed countries where environmental goods are exported. For most of the items
major export destinations include countries like Sri Lanka, Puerto Rico, Greece, Algeria,
Iraq, Iran, Nigeria, Nepal, Laos, Trinidad and Tobago, Qatar, Malawi, Zimbabwe,
Malaysia, Yemen, Myanmar, Niger etc. A great fluctuation of major export destination
from year to year has been noticed. For example in 2002 the export of 902810 (Gas
Meters) to Egypt was very small while in 2003 Egypt became the major destination for
Indian export for the same product. India imports from many destinations, but Germany
and USA are the major countries from where most of the commodities are being
imported.
The sub-total of the last five years imports and exports of environmental goods on the
basis of the APEC list made in Annexure 1A reveals that percentage of these goods in
total exports and in total imports is 0.01 % and 0.02 % for the last few years, which is
30
very insignificant. The growth rate (compound annual growth rate (CAGR) from 1998 to
2003) of Indian exports and imports of environmental goods has been calculated & items
have been ranked accordingly in Annexure 4. Analysis of 100 environmental goods
considered here reveals that although the rate of growth is positive for 83 export items,
the rate of growth is not very significant and less than 1 in 82 products. The number of
items in which the rate of growth is positive is much more for imports as compared to
exports. The same way that the rate of growth of imports is positive for more than 60
items as can be seen from Annexure 3.
Revealed Comparative Advantage Index has been calculated (formula given after the
endnotes) for identifying high export potential environmental products. This has been
done in two ways. First, these export products have been ranked in terms of growth and
the Revealed Comparative Advantage (RCA) of the top 20 products has been calculated
(Annexure 6). It is found that for those products India does not have comparative
advantage. But, then export items have been ranked according to value in 2002 and RCA
has also been calculated for those top 20 export products (Annexure 5). The analysis
reveals that India has comparative advantage in 4 products only viz other centrifugal
pumps, other instruments for measuring and checking electrical quantities excluding
electricity meters and other refractory ceramic goods.
As has been already mentioned, trade balance of India is negative for 84 environmental
products. India has comparative advantage in only 4 products among our top 20 exported
products in terms of value. Again the tariff data shows that our tariff rate is much higher
31
than the corresponding tariff rate of developed countries. That means if India reduces
tariffs of the environmental products as demanded by the developed countries, it will go
against India‘s terms of trade.
4.1 Multiple use and customs policy
For customs policy purposes and trade nomenclatures, a good is defined and assigned to a
product code according to its physical characteristics: e.g. size, material, principal inputs.
However, in investigating environmental goods interest revolves around how the product
is to be used, which is quite difficult given the possible multiple uses. In narrower
definitions there are also problems in determining the contents of a list of ‗environmental
goods‘. The most serious concern is the multiple uses of environmental products. For
example, separating harmful waste products from the output stream calls for a centrifuge.
Yet centrifuges have a host of industrial uses, which are not necessarily environmental.
An attempt is made to examine these goods on the basis of their use. The list of goods
which have more than one use is given in Annexure 7. There are many items in the list
that are not predominantly used for environmental purposes. In fact, there are many
general industrial types of equipment, which may or may not have any use at all for
environmental purposes. The list includes equipment with multiples uses such as pumps,
condensers, millimeters and refractory bricks. Therefore, duty reduction on such general
industrial items will also have significant ramifications for other sectors of industries like
manufacturers of fans, pumps, and scientific laboratory equipment (Singh 2004a).
32
4.2 Reduction v/s elimination of barriers
Developing countries are apprehensive that any indiscriminate tariff reduction would
increase their deficit. In the identified goods and services what level of elimination or
reduction should be appropriate given India‘s trade interests as well possible
environmental benefits needs to be analysed carefully.
Data on customs tariffs for environmental goods as per the APEC List has been compiled
for the years 2003-04 and 2004-05. It further reveals that customs tariffs on
environmental goods in India have been revised in a downward direction. It reveals that
only in the case of commodity no. 230210 (of maize (corn)) the rate of duty remained
unchanged at 30% in 2004-05. For the majority of environmental goods tariffs in the
previous year were 25%. While in 73 items the tariff has been reduced from 25% to 15%,
for 6 products this has been reduced to 10% from the earlier level of 25%. For 19
products the tariff has been pegged at 10% in 2004-05 from 30% in 2003-04. For product
No. 854140 (photosensitive semi-conductor devices, including photovoltaic cells whether
or not assembled in modules or made up into panels; light emitting diodes) and 902610
(for measuring or checking the flow or level of liquids), 902620 (for measuring or
checking pressure) the tariff was 15% in the previous year while these have become free
in this year. Some products viz 902680 (other instruments or apparatus), 902720
(Chromatographs & Electrophoresis Instrument), 902750 (other instruments and
apparatus using optical radiations (UV, visible, IR)) and 902780 (other instruments and
apparatus) the duty has been reduced to zero from the 10% tariff obligation of previous
year. For the product 902690 (Parts & Accessories of Instruments/Apparatus of Heading
33
9026) the tariff was merely 5% in 03-04 and now it has become duty free. So, currently
for 92 items India has tariff of 15%, for only 6 items it has 10% duty and for 9 items now
India has removed the tariff barrier.
Indian industry‘s feedback on tariff reduction is as follows:
1. Tariff reduction would provide more choice to the users of these types of
equipment. In many cases, these equipments are used as inputs for pollution
control systems and projects carried out by the environmental industry.
2. Tariff reduction in the case of stand alone equipments wherein several
components are imported from other countries may lead to a tariff structure with
high tariff anomalies where duty on components would be higher than on finished
goods.
3. Reasonable import tariffs are often incentives for foreign investors to set up their
production base in India, especially in a fast growing area like environmental
management equipments. Extremely low or zero tariffs might discourage
companies to make such investment decisions and adversely affect procurement
of more local components. With a drastic reduction in tariffs, foreign companies
will prefer to export goods from their own countries rather than investing in India.
4.3 Environmentally Preferable Products (EPPs)
Environment and ecology occupy a prominent place among the key focal issues faced by
the world today. EPPs are generally described as products that, from a life-cycle
34
perspective, cause significantly less ‗environmental harm‘ than alternative products that
serve the same purpose (UNCTAD, 1995). In an era of degenerating environment, efforts
are on to produce 100% Eco-friendly textiles where even the cotton will be grown
without chemical fertilizers. This is already being done in India in the form of Ponduru
Khadi which is produced from wild varieties of cotton found in the mountain terrain of
the Eastern part of Andhra Pradesh, in the South of India. India, like other developing
countries, might have an advantage through the inclusion of such products from the list of
environmental goods, provided such classification is not based on non-product related
process and production methods (npr-PPM).
India has indicated its support for the inclusion of environmentally friendly natural
products of export interest such as jute, coir, rattan, handloom products, handloom
furnishing materials, textiles & clothing made using natural dyes, non timber forest
products and bamboo in the list of environmental goods. These products are natural,
biodegradable, and substitutes for other goods that adversely affect the environment, for
example, jute as a substitute of plastic.
Khadi products can also be included in this category. Khadi is defined as a coarse
homespun cotton cloth made in India. Khadi is acknowledged as one of the coolest and
most comfortable fabrics ever known. Since Khadi deals in natural fibers viz. cotton, silk
and wool only, spun and woven in natural environment, it can boast of being 100%
natural, unlike handloom and mills which receive cotton yarn, blended with some
regenerated cellulose fibres. Khadi dyed in Natural dyes also makes a perfect
35
combination for a green fabric. Some more items which can be of interest for India are
furnished in Annexure 8.
4.4 India’s Export Potential for Environmental Services
The privatization and liberalization of environmental markets promises the standard free
trade benefits to countries based on individual comparative and competitive advantage of
providing environmental services. To quote Indian Council for Research on International
Economic Relations (ICRIER) Research Paper by Aparna Sawhney and Rupa Chanda,
―developing countries like India have the scope of specializing in labour-intensive
environmental services, including skilled segments like environmental consulting,
auditing, analysis, and training.‖
Indian environmental service providers have emerged most significantly in two areas:
first, environmental services in turnkey projects (e.g. integrated engineering services in
energy equipment); and second, environmental support services such as consulting,
environmental impact assessment, auditing, and training (including ISO 14001). There
are also a few companies, which have been specializing in composting of solid waste and
waste to energy services.
Large Indian environmental equipment firms offering accompanying environmental
services have been exporting equipment to Asian, Middle Eastern, and African markets.
They have also begun to explore niche markets in the environment sector within
36
industrialized countries, to boost exports and also to nurture future partnerships and
alliances for technology solutions.
New investment and expansion in the environmental services sector in developing
countries can provide employment opportunities for unskilled as well as skilled labour, as
some of the environmental segments are labour intensive (e.g. waste management,
sanitation, consulting, training, etc). Moreover, since environmental services are typically
provided in conjunction with other products or services, as the environmental services
sector expands so would new demand be generated in other sectors including,
engineering and design, construction, research and development, training, consulting
(Sawhney 2003).
The environmental support services segment constitutes a relatively small share in the
global environmental services industry, and is declining in developed countries. In
developing countries, however, the demand for these services is on the rise as witnessed
within India. Since the environment markets in the OECD countries are quite mature and
saturated, India‘s export potential in this sector is primarily to developing countries,
where the demand for environmental services is growing. Indian environmental service
providers could specialize in services in regions where there are similarities in ecological
and economic conditions. Thus India has opportunities in this segment in some
developing countries in South Asia, Africa, and the Middle East, where environmental
support services are increasingly in demand (Sawhney & Chanda 2004). Indeed, India
has exported environmental consulting services, including training in ISO 14000 and
37
auditing, to countries including Nepal, Sri Lanka, Nigeria, Egypt and Qatar (Sawhney
2003). Several Asian countries, including India, have been the focus of the US
environment industry, given the growth prospects of their domestic environment sector,
under the United States-Asia Environmental Partnership (US-AEP). In the environmental
exports to Asian countries Japan is the leader (Ibid.).
The important service sectors for India are water and wastewater management, solid
waste services, protection of ambient air, remediation and ancillary services. The
privatization and liberalization process in this sector must ensure a healthy balance
between economic efficiency, social equity, and environmental sustainability.
4.5 Clean Development Mechanism (CDM)
The Clean Development Mechanism (CDM) of the Kyoto Protocol, aimed at reducing the
greenhouse gas emissions of industrialized countries, could become an important source
of new finance for projects in developing countries. Developed country firms can begin
meeting their reduction targets by funding emission reduction projects in the developing
world and contribute to sustainable development in the process (UNCTAD 2005). The
CDM, creates "win-win-win" synergies for the sustainable development of developing
countries, by encouraging additional FDI flows to complement local financing of projects
that contribute to local sustainable development. Brazil, China and India have the greatest
potential for the new mechanism. Brazil was one of its pioneers, having proposed the
initial concept and hosted the first such project. India has developed more CDM
methodologies and project proposals than any other country (Ibid.)
38
Countries that rely heavily on coal for their energy needs and/or countries where the
major energy users (e.g., power plants and heavy industries) are relatively energy-
intensive and inefficient would have the greatest potential for large and cheap CDM
projects. By this token, both China and India can expect a relatively large share of the
CDM market – together, they are projected to account for about 60 per cent of non-sink
CDM projects (47 per cent and 12 per cent respectively). It is, therefore, certain that
whatever the nature and scope of CDM projects that emerge globally, major coal-based
GHG emitters such as China and India will play an important role (Gupta 2003).
Despite near-term uncertainty about the size of the CDM market and the price of
Certified Emissions Reductions (CERs), it is very likely that India will be a major player.
This is also true in the long run where India along with other developing countries may
take on some commitments and where emissions trading may be an important component
of the GHG abatement architecture. While there are several issues of concern such as the
impact of technical progress in abatement technologies on the gains from emissions
trading for India, on the whole it may stand to benefit from participating in such trading.
Furthermore, there are good prospects of convergence across CDM and emissions trading
both in a short-run and in the long-run (Ibid.).
Domestic companies produce much of what India needs by way of EGS. But their
expertise is, however, limited in many cases and around 40% of the requirements are
fulfilled by imports. However, most of the demand forecasts are based on large
39
manufacturing units‘ requirements. India has an estimated three million small-scale
industrial units, which account for over 40% of the industrial output in terms of value, but
their share of industrial pollution is disproportionately high. Smaller industries have the
added burden of using obsolete, inefficient production processes, which are typically
more polluting. In the future if these companies have to improve their environmental
compliance, the demand for financial support will become very high.
Indian environmental companies face significant hurdles, which not only deter them from
exporting their products but also deter them from catering to the domestic demand. Some
of the problems that Indian companies face include:
shortages of essential environmental goods such as membranes, activated carbon,
resins, and other components;
limited R&D capability for technological improvements; limited servicing
capability;
limited access to available technologies and potential foreign partners;
high capital costs for expansion;
limited domestic market in sub sectors;
lack of servicing and marketing network in other countries.
There are many smaller firms that specialize in sector-specific equipments such as air
pollution monitoring, wastewater treatments, etc. Several smaller companies offer
environmental consulting services related to environmental management systems
facilitation, environmental audits, environmental impact assessment and development of
environmental standards. Trade liberalization through the WTO is likely to create many
40
challenges for smaller domestic companies with one or two product lines. Their products
cannot compete with technically superior products from large companies. Moreover, they
are unable to tap overseas markets in many cases due to the absence of marketing and
servicing networks.
Environmental services in R&D, design, and technology, which are an integral part of the
environment equipment sector, are relatively poor in India. For instance, companies like
Bharat Heavy Electricals Limited (BHEL) focus mostly on product-application research
rather than basic research, and thus basic technology for equipment manufacture like
gasifiers and fuel cells need to be imported.
Indian firms offering environmental services do so as part of the equipment supply,
especially for air pollution management solutions in power plants and vehicular pollution
abatement. However, the Indian environment industry needs the technology (not
equipment per se) and state of the art design for pollution management equipment, since
the industry is capable of manufacturing the hardware domestically. Given the growth of
Indian economy and high rate of urbanization, India needs massive capital to build its
environmental infrastructure, particularly for water supply and treatment, sewage
treatment, and solid waste management. The onus of providing environmental
infrastructure services is with the Urban Local Bodies. However, financial constraints of
these bodies have been a major problem towards ensuring adequate provisions of services
such as sewage, sanitation, cleaning of roads, and water supply.
41
In the large projects funded by multilateral organizations, there are several conditions for
eligibility that keep most of the Indian companies out of these projects. These strict
eligibility criteria include past record, experience, turnover, product specifications, and
third party guarantees Indian companies have to face several constraints due to their
limited R&D capability for technological improvements, limited servicing capability, and
high capital costs for expansion. Most of these companies being smaller do not have large
marketing networks.
5.0 Conclusions and Recommendations
The picture that emerges of the environment industry is one of an integrated, technology-
intensive, globalised industry, which predominates principally in developed countries.
The industry has largely been driven by enforcement of environmental regulations, and in
this respect, developing countries are struggling to catch up.
Developed countries, particularly US, EU and Japan are the largest producers, consumers
and exporters of EGS. Developing countries are net importers of EGS. However, the EGS
sector in developing countries is growing at a much faster rate than in developed
countries. This makes developing countries markets important.
Developed countries are pushing for the opening up of the EGS sector since they perceive
different advantages from the opening of the EGS sector for developing countries. For
example, in the first submission to the Committee on Trade and Environment Special
Session and fifth submission to the NAMA negotiating group on 17th
February 2005, the
42
European Communities wished to liberalize trade in EGS to bring economic,
environmental and developmental benefits. They argued that in all countries, changes in
consumption patterns and demand for greener products should be encouraged by opening
up markets to environmental products from both developed and developing countries.
Liberalizing trade in EGS would support and reward producers in all countries that invest
in environmentally friendly practices, cleaner technologies and equipment with a view to
meeting environmental objectives, related responsible corporate policies and/or
consumers‘ demand. Supporting the development of environmental markets would also
foster technological innovation and job creation in a dynamic industry. Moreover, for
developing countries, it should help make available cheaper environmental technologies
and related services needed to meet their developmental and environmental objectives,
while satisfying basic human needs, such as improved access to safe water, sanitation or
clean energy.
A note by the UNCTAD Secretariat on EGS in Trade and Sustainable Development
reveals that ―direct trade gains from liberalization in EGS may flow largely to the more
advanced WTO Members, which stand to benefit from improved access to expanding
EGS markets in developing countries. Efforts should be made to increase the potential
for direct trade gains for developing countries‖ (WTO 2004).
When WTO members are negotiating commitments in their respective schedules, the aim
should be two-fold: (a) to liberalise market access in sectors and modes of supply of
export interest to developing countries; and (b) to strengthen developing countries‘
43
capacity in domestic services (including access to technology) and improve developing
country access to information networks.
As a negotiation strategy for EGS, developing countries should not be wary of making
trade-offs. They may be able to advance their trade and environment agendas in the
negotiations, provided they can forward plan and co-operate amongst themselves.
Developing countries should take a two-pronged approach. They should examine the
extent to which trade liberalization may enhance the availability of EGS used to address
national environmental problems; and decide
(a) which negotiated outcomes they wish to see emerge from EGS; and
(b) how to derive real sustainable development outcomes from the result of their
negotiations.
Under the first approach, they must initially establish which pressing environmental
problems they wish to resolve through access to EGS, and second, what desired level of
market access they wish to achieve for their own EGS in foreign markets. Thereafter,
they can match these goals with the relevant products and services and demand specific
inclusion of such goods and services in the classifications to be determined in the WTO.
In the second approach, developing countries should have worked out, in advance, how
the achieved results of the negotiations will assist in providing real environmental quality
44
on the ground. For this, they must have in place plans for domestic regulation, covering
environmental protection (including, for example, environmentally sound technologies,
eco-labelling, etc.), infrastructure development, government procurement, intellectual
property rights, and in some cases, even health and sanitation. They must also have
strategies regarding international trade in order to continue to maintain their hard won
market access. This may cover issues such as dispute settlement, subsidies, TBT, SPS
measures and technical co-operation (CUTS 2004a).
Developing countries will have to fully understand their capacity-building and technical
assistance needs, in order to ensure that such assistance is well targeted and applied to
support their environmental protection and trade objectives. In this way, developing
countries may be able to achieve the ‗win-win-win‘ scenarios that are implied by the
negotiations on liberalization of EGS.
Moreover, the integrated manner in which traditional EGS are delivered is not reflected
in the way the WTO classifies such goods or disciplines trade in these goods. The
multiple uses of such goods and services (where it is unclear whether there is a clear
environmental benefit from use or delivery) may cause problems in defining and
classifying such goods and services, as well as assigning them specific HS (Harmonised
System) codes to differentiate them from other goods.
It is vital that developing countries develop both their own lists of products of export
interest including organic agricultural products or products from traditional knowledge or
45
folklore and an alternative list of environmental services in which they hold comparative
advantage.
The WTO has been focusing on the elimination of trade barriers of sustainable resources
and activities with a view to promoting the global living environment by further
liberalizing trade in environmental goods. With the reduction or, as appropriate,
elimination of trade barriers and increased trade flows, domestic purchasers will be able
to acquire environmental goods and technologies at lower costs. The savings will help
business and governments to stretch their capital investment budgets further, which could
consequently help to ensure the mutual supportiveness between the environment and the
promotion of sustainable development.
Merely tariff reduction on end-of-the-pipe pollution control equipment will not lead to
much needed technology transfer. On the other hand it may even adversely affect transfer
of technology to India. In India, the most preferred and effective route of transfer of
technology has been joint ventures. Therefore, any effort to reduce tariffs should take into
account the fact that liberalization should not become an incentive for companies of
developed nations to take a trading route rather than transferring technology to
manufacture pollution control equipment in India.
The lists proposed so far to a large extent do not cover products of interest to developing
countries. It is important to note here that the provisions and mandate of paragraph 16 of
the Doha Declaration is applicable to environmental goods. Paragraph 16 specifically
46
mandates special attention to ―products of export interest to developing countries‖ and
takes full account of the special needs and concerns of developing and least developed
countries. Therefore India should insist that the negotiations must focus on how
developing countries can derive trade gains in terms of increased exports in this sector.
The special needs also include protection of domestic industry, which is largely
comprised of small and medium enterprises. Many biodiversity-rich developing
countries, for example, have great potential for deriving commercial and developmental
benefits from environmental services provided by their ecosystems. In most cases,
however, the economic value of such services has not been established. Numerous
ongoing studies and projects focus on valuation techniques and instruments to
commercialize such services.
Developing countries may have to coordinate and communicate between trade-
negotiators and regional policy makers (trade, industry, agriculture, environmental,
municipal authorities) as well as among various national stakeholders. Some elements
which they have to consider are as follows:
In case organic products (based on whatever criteria) are negotiated as part of the
EGS mandate on an accelerated basis, then the relationship to agricultural
liberalisation modalities (export subsidies, domestic support) on non-organic products
will have to be defined.
As EGS are frequently inter-linked it may be important to coordinate market access in
both areas. For example: opening up the solid waste treatment services sector while
maintaining high tariffs and non-tariff barriers (NTBs) on waste-treatment equipment
47
may not result in meaningful market-access unless perhaps the developing country
has an adequate and competitive domestic environmental goods sector which could
supply these services.
Liberalisation of goods having multiple end-uses (including environmental uses)
requires careful consideration as it may be difficult to verify the intended ‗end-use‘
for such goods.
Tariff levels for most industrial goods are low in developed countries. NTBs may be
more important, for example labelling, subsidies, taxes. Identifying and negotiating
removal of these various NTBs will take time. This needs to be kept in mind given
the time-horizon of completing the Doha negotiations as well as any accelerated
liberalisation, if accepted, of EGS. The challenge will increase if agricultural goods
are also negotiated (Suathan 2004).
This case study of India reveals that India may not get too many advantages out of the
opening up of environmental sector in the short run. Analysis of data reveals the
following:
Environmental goods constitute a very insignificant share of India‘s total exports
and imports.
Balance of trade is also deficit for most of the items.
Major destinations for environmental goods for many items are developing
countries.
There is no consistency in their import demand.
48
India has revealed comparative advantage in only 4 items out of the top 20 export
items.
The highest growing export items do not have any revealed comparative
advantage.
India‘s tariffs are higher than developed countries on environmental goods and
reduction in tariffs may create disincentives for foreign firms to establish
subsidiaries in India.
Most of the items, which developed countries are insisting for inclusion, belong to
the category of multiple uses.
Unless the items of interest for India are included in the list of environmental
goods, India may not benefit from the liberalization of the EGS sector in the short
term. Potential benefits of liberalization of EGS will have to be examined in the
context of FDI in the long run.
India can benefit from the negotiations if the criteria for inclusion of a particular product
category or a product is based on:
(i) Use of the product/category in pollution control activities;
(ii) Dynamic comparative advantage of India in that product/category which would be
based on existing levels of import and export, size of domestic market, efficiency level of
domestic industry and prospects for future;
(iii) The degree of use in the environmental sector vis-à-vis other industrial sectors.
The project approach suggested by India may benefit developing countries because:
49
This approach is cohesive and integrated – goods and services.
It is focused and direct – to the goals of environmental objectives.
It can accommodate the changing needs of global environmental requirements.
Some of the positive measures include:
Technology transfer – with the services, leading to capacity building.
Does not affect market access schedules of the goods – does not lead to ―zero-for-
zero‖ sectoral NAMA negotiations.
It also enhances mutual supportiveness of trade and environment – Paragraph
31(iii) objective ( Kumar 2002).
50
Statistical Formulae
Revealed Comparative Advantage Index
Measures of revealed comparative advantage (RCA) can be used to help assess a
country's export potential. The RCA indicates whether a country is in the process of
extending the products in which it has a trade potential, as opposed to situations in which
the number of products that can be competitively exported is static. It can also provide
useful information about potential trade prospects with new partners. Countries with
similar RCA profiles are unlikely to have high bilateral trade intensities unless
intraindustry trade is involved. RCA measures, if estimated at high levels of product
disaggregation, can focus attention on other nontraditional products that might be
successfully exported. The RCA index of country i for product j is often measured by the
product's share in the country's exports in relation to its share in world trade:
RCAij = (xij/Xit) / (xwj/Xwt)
where xij and xwj are the values of country i's exports of product j and world exports of
product j and where Xit and Xwt refer to the country's total exports and world total
exports. A value of less than unity implies that the country has a revealed comparative
disadvantage in the product. Similarly, if the index exceeds unity, the country is said to
have a revealed comparative advantage in the product.
Compound Annual Growth Rate (CAGR)
Interest rate at which a given present value would "grow" to a given future value in a
given amount of time. The formula is -
CAGR = (FV/PV)1/n - 1
where FV is the future value, PV is the present value, and n is the number of years.
51
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54
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Expert%20Meeting%20UNCTAD%20EGS_26-06-03.pdf
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UNCTAD/PRESS/PR/2005/010 - 15/02/05
Database
―India‘s Exports & Imports of Environmental Goods as per APEC List‖, ITC, CMIE
Database.
55
Annex 1. Trade balance of Indian Environmental Goods as per APEC List
Commodity
Code Commodity Name
Rs.Lakh Trade Balance
(in Rs lakh) in 2003 Annual
Dec-03
val
460120 Mats, matting and screens of
vegetable materials
Export 1601.41 1588.01
Import 13.4
560314 Man-Made Filmnt Wghng
>150G/Sqm
Export 165.08 -667.62
Import 832.7
591190 Other(textile products and
articles)
Export 266.56 -4132.21
Import 4398.77
690210 Refractory bricks, blocks, tiles
and similar goods containing by
weight, singly or together, more
than 50% of the elements
magnesium, calcium or
chromium, expressed as
magnesium oxide, calcium oxide
oUNIT
Export 1634.77 -6017.24
Import 7652.01
690220 Refractory bricks, blocks, tiles
and similar goods containing by
weight, more than 50% of alumina
(al2o3), of silica (sio2) or of a
mixture of compound of these
products.
Export 5161.49 4620.49
Import 541
690290 Other refractory bricks, blocks,
tiles etc.
Export 784.21 -5075.65
Import 5859.86
690310 Other refractory ceramic goods
containing by weight more than
50% of graphite or other forms of
carbon or of a mixture of these
products.
Export 1140.93 947.44
Import 193.49
690320 Other refractory ceramic goods
containing by weight more than
50 % of alumina (aluminium
oxide) or of a mixture or
compound of alumina and of
silica (silicon dioxide)
Export 986.64 -791.26
Import 1777.9
690390 Other refractory ceramic goods Export 2772.16 -243.57
Import 3015.73
690919 Other ceramic wares for
laboratory etc.
Export 203.7 -786.7
Import 990.4
56
701710 Laboratory glasses etc of fused
quartz or other fused
Export 34.86 -35.01
Import 69.87
701720 Laboratory
hygienic/pharmaceutical
glassware of other glass having a
linear coeffcient of expansion not
exceeding 5X10 -6/ Kelvin within
a temperature between 0 degree C
to 300 degree C.
Export 3.73 -211.11
Import 214.84
701790 Other laboratory,
hygienic/pharmaceutical
glassware
Export 3075.15 1978.52
Import 1096.63
840410 Auxlry Plnt Usd with Boilrs of
8402/8403
Export 2083.83 1718.81
Import 365.02
840420 Condensers for Steam/other Vpr
Powr Units
Export 249.74 -554.97
Import 804.71
840510 Produced gas or water gas
generators with or without their
purifiers acetylene gas generators
and similar water process gas
generators with or without their
purifiers
Export 533.25 -433.4
Import 966.65
840991 Suitable for use solely or
principally with spark-ignition
internal combustion piston
engines.
Export 25206.44 6877.49
Import 18328.95
840999 Other(parts suitable for engines) Export 38412.71 -5029.01
Import 43441.72
841011 Hydraulic Turbines & Water
Wheels of a Power not Exceeding
1000 Kw
Export 221.63 221.63
Import
841012 Of a power not exceeding 1,000
kW but not exceeding 10,000 kW
Export 50.34 50.34
Import
841013 Of a power exceeding 10,000 kW Export 20.95 20.95
Import
841090 Parts of Hydrlic Turbnes incl.
Regulators
Export 606.94 -641.83
Import 1248.77
841360 Other rotary positive displacement
pumps
Export 878.19 -1006.27
Import 1884.46
841370 Other centrifugal pumps Export 13830.45 6286.27
Import 7544.18
57
841381 Pumps Export 1646.12 -13080.31
Import 14726.43
841410 Vacuum Pumps Export 545.12 -2738.67
Import 3283.79
841459 Other(air or vacuum pumps) Export 1104.89 -4216.74
Import 5321.63
841480 Other(air or vacuum pumps) Export 3623.35 -15622.17
Import 19245.52
841780 Other Furnaces & Ovens Export 261.6 -2384.51
Import 2646.11
841790 Parts of Non Electric Furnaces
Ovens etc
Export 512.42 -1223.87
Import 1736.29
841919 Instantaneous or storage water
heaters, non-electric - Other
Export 188.16 -211.44
Import 399.6
841940 Distilling or rectifying plant Export 411.89 -10205.89
Import 10617.78
841950 Heat exchange units Export 1521.91 -2073.19
Import 3595.1
841960 Machinery for Liquefying
Air/other Gases
Export 335.67 -1205.17
Import 1540.84
842119 Centrifuges, incl. centrifugal
dryers, Other
Export 2527.8 -184.62
Import 2712.42
842121 Centrifuges, incl. centrifugal
dryers, for filtering or purifying
water
Export 1513.42 -245.84
Import 1759.26
842129 Centrifuges, incl. centrifugal
dryers, other
Export 835.7 -5161.73
Import 5997.43
842139 Filtering or purifying machinery
and app. for gases, other
Export 480.36 -6379.24
Import 6859.6
842191 Parts, of centrifuges, incl.
centrifugal dryers.
Export 678.5 -657.27
Import 1335.77
842199 Parts, other Export 3847.08 -12188.33
Import 16035.41
842220 Machinery for Clng/Dryng
Botls/other Cntnrs
Export 664.88 121.04
Import 543.84
842833 Other Continuous Action Elevatrs
& Conveyrsfor
Goods/Materials,Belt Type
Export 1.35 -474.99
Import 476.34
843680 Other machinery Export 566.03 512.87
Import 53.16
58
846291 Hydraulic presses Export 1156.19 -1088.3
Import 2244.49
847290 Other office machines Export 2008.91 -16770.12
Import 18779.03
847410 Sorting, screening, separating or
washing machines
Export 294.93 -1655.44
Import 1950.37
847432 Mchns for Mxng Mnrl Substncs
with Bitumen
Export 64.47 -7361.04
Import 7425.51
847982 Mxng, Kneadng, Crushng,
Grndng, Screng, Siftng,
Homogensng, Emulsifyng/ Stirrng
Mchns
Export 1149 -2267.35
Import 3416.35
847989 Other ( machines or mechanical
appliances)
Export 19150.42 -37526.68
Import 56677.1
847990 Parts Export 31927.81 12449.19
Import 19478.62
850231 Other generating sets; wind
powered
Export 143.55 -495.39
Import 638.94
850590 Electro magnets; chucks, clamps
& similar devices
Export 1807.06 -1735.89
Import 3542.95
851410 Resistance heated furnaces &
ovens
Export 91.11 -179.1
Import 270.21
851420 Induction/dielectric furnaces &
ovens
Export 378.35 282.03
Import 96.32
851430 Other furnaces and ovens Export 870.62 -217.97
Import 1088.59
851490 Parts of articles of industrial or
laboratory electric (including
induction or dielectric) furnaces
and ovens; other industrial or
labortatory induction or dielectric
heating equipment
Export 577.53 -744.22
Import 1321.75
854140 Photosensitive semi-conductor
devices, including photovoltaic
cells whether or not assembled in
modules or made up into panels;
light emitting diodes
Export 33239.71 26338.09
Import 6901.62
854389 Other nes Export 2762.48 -34892.8
Import 37655.28
890710 Invlatable Rafts Export 40.96 -116.96
Import 157.92
890790 Other floating structures Export 24.35 -199.17
59
Import 223.52
901540 Photogrmtrcl Survying Instrmnts
& Applncs
Export -405.9
Import 405.9
901580 Othe instruments and appliances. Export 794.42 -9206.75
Import 10001.17
901590 Parts & Accessores of
Surveying,Phtogrmcl,Hydrogrphic
Instrumnts etc. excl. Compasses
Export 1142.41 -1192.93
Import 2335.34
902229 Apprts Bsd On Use of
Alpha,Bta/Gma Radtns for other
Usesincl Rdogrphy & Rdothrpy
Apprts
Export 199.58 -1149.86
Import 1349.44
902290 Other, including parts and
accessories.
Export 12608.93 -7810.79
Import 20419.72
902511 Liquid-filled, for direct reading. Export 273.56 -1.84
Import 275.4
902519 Other ( hydrometers and similar
loating instruments)
Export 134.02 -811.51
Import 945.53
902580 Other instruments Export 44.4 -1218.42
Import 1262.82
902590 Parts & Accssrs of Instruments of
Hdg 9025
Export 209.51 -1321.23
Import 1530.74
902610 For measuring or checking the
flow or level of liquids.
Export 2674.17 -4058.64
Import 6732.81
902620 For measuring or checking
pressure.
Export 1211.68 -4492.09
Import 5703.77
902680 Other instruments or apparatus. Export 208.93 -4167.91
Import 4376.84
902690 Parts&Accssrs of Insrmnts/Apprts
of Hdg9026
Export 712.36 -6083.23
Import 6795.59
902710 gas or smoke analysis apparatus. Export 643.21 -4731.64
Import 5374.85
902720 Chromatographs &
Electrophoresis Instrmnt
Export 24.13 -12663.7
Import 12687.83
902730 Spectrometers, spectro-
photometers and spectographs
using optical radiations (UV,
visible, IR)
Export 118.69 -13201.97
Import 13320.66
902740 Exposure Meters Export -9.43
Import 9.43
902750 Other instruments and apparatus
using optical radiations (UV,
Export 178.77 -2133.64
Import 2312.41
60
visible, IR)
902780 Other instruments and apparatus. Export 523.94 -28704.57
Import 29228.51
902790 Microtomes; parts and
accessories.
Export 315.46 -14237.41
Import 14552.87
902810 Gas Meters Export 567.35 142.7
Import 424.65
902820 Liquid Meters Export 23.46 -133.94
Import 157.4
902830 Electricity Meters Export 2171.73 -7676.6
Import 9848.33
902890 Parts and Accessories of Gas Lqd
or Electricty Supply or Production
Meters
Export 185 -3284.77
Import 3469.77
90301000 Instrument and Apparatus for
Measuring or Detecting Ionising
Radiation
Export 544.85 -477.69
Import 1022.54
903020 Cathode-ray oscilloscopes and
cathode-ray oscillographs.
Export 27.95 -2086.01
Import 2113.96
903031 Multimeters Export 127.82 -637.3
Import 765.12
903039 Other ( oscilloscopes and other
instruments for measuring or
checking electrical quantities
excluding meters)
Export 5681.63 -839.07
Import 6520.7
903083 Other with a recording device, nes Export 26.97 -907.8
Import 934.77
903089 Other ( oscilloscopes and other
instruments for measuring or
checking electrical quantities
excluding meters)
Export 107.46 -5960.91
Import 6068.37
903090 Parts and accessories. Export 1340.63 -4319.31
Import 5659.94
903110 Machines for Balancing
Mechanical Parts
Export 157.59 -687.08
Import 844.67
903120 Test Benches Export 165.23 -2042.03
Import 2207.26
903130 Profile Projectors Export 17.27 -2315.97
Import 2333.24
903180 Other Msrng&Checking
Instrmnts,Applncs&Mchns
Export 615.76 -48691.18
Import 49306.94
903190 Parts and Accessories of Instrmnts
of 9031
Export 749.43 -14732.15
Import 15481.58
61
903210 Thermostats Export 277.75 -1739.97
Import 2017.72
903220 Manostats Export 0.11 -180.55
Import 180.66
903281 Hydraulic/Pneumatic Instrumnts
& Apparatus
Export 344.05 34.27
Import 309.78
903289 Other ( automatic regulating or
controlling instruments)
Export 2710.31 -18426.77
Import 21137.08
903290 Parts and Accessories of Instrmnts
of 9032
Export 559.56 -12111.25
Import 12670.81
9033 Parts and accessories (not
specified or included elsewhere in
this Chapter) for machines,
appliances, instruments or
apparatus of Chapter 90.
Export 9971.28 -28605.07
Import 38576.35
Subtotal of Exports of
environmental goods
Export 265270.22 -418399
Subtotal of Imports of
environmental goods
Import 683669.22
Total Export of India Export 25513727.71 -4206859.77
Total Import of India Import 29720587.48
Trade Balance calculated on the basis of data extracted from Indiatrades
Annex 1A. Share of Export and Import of Indian Environmental Goods as per
APEC List
Rs.Lakh Rs.Lakh Rs.Lakh Rs.Lakh Rs.Lakh
Annual Annual Annual Annual Annual
Dec-99 Dec-00 Dec-01 Dec-02 Dec-03
val val val val val
Subtotal of Exports
of Environmental
Goods
106309.15 122241.93 179428.21 211944.11 265270.22
Percentage in Total
Export
0.01 0.01 0.01 0.01 0.01
Subtotal of Imports
of Environmental
Goods
455218.25 453225.83 489700.14 534806.43 683669.22
Percentage in Total
Import
0.03 0.02 0.02 0.02 0.02
62
Total Export 13922431.00 15902332.51 20357101.17 20901388.03 25513727.71
Total Import 17792711.00 20387535.68 23.87275.91 24519971.60 29720587.48
Share of Exports calculated on the basis of ITC data
Annex 2. Major Destinations for India's Imports and Exports of Environmental
Goods as per APEC List
Commodity
Code Commodity Name
Export
Value
2003 (Rs.
Lakh)
Major Export
Destinations
Major
Import
Destinations
460120 Mats, matting and screens of vegetable
materials
1601.41 EU, USA, UK,
Germany,
Netherlands
Viet Nam,
UAE, Japan
560314 Man-Made Filmnt Wghng >150G/Sqm 165.08 EU, Belgium,
Sri Lanka,
Puerto Rico,
UAE
Taiwan
(Taipei),
UK, China,
Hong Kong,
Italy
591190 Other (textile products and articles) 266.56 EU, USA, UAE,
Sri Lanka,
Greece
Germany
690210 Refractory bricks, blocks, tiles and
similar goods containing by weight,
singly or together, more than 50% of the
elements magnesium, calcium or
chromium, expressed as magnesium
oxide, calcium oxide oUNIT
1634.77 Malaysia, Korea
Republic
(South), Egypt,
Brazil,
Indonesia,
Algeria
Germany,
China,
Austria
690220 Refractory bricks, blocks, tiles and
similar goods containing by weight,
more than 50% of alumina (al2o3), of
silica (sio2) or of a mixture of compound
of these products
5161.49 Bangladesh, EU Germany
690290 Other refractory bricks, blocks, tiles etc. 784.21 EU, Sri Lanka,
UK, Spain
China,
Germany,
Australia,
Austria
690310 Other refractory ceramic goods
containing by weight more than 50% of
graphite or other forms of carbon or of a
mixture of these products
1140.93 Bangladesh,
Thailand,
Indonesia, EU,
Australia
Germany,
China
63
690320 Other refractory ceramic goods
containing by weight more than 50 % of
alumina (aluminium oxide) or of a
mixture or compound of alumina and of
silica (silicon dioxide)
986.64 Algeria, EU,
Egypt, Iraq,
Germany
Germany,
UK, Italy,
USA,
Taiwan
(Taipei)
690390 Other refractory ceramic goods 2772.16 Germany,
Turkey, USA,
Iran
Germany,
UK, Taiwan
(Taipei)
690919 Other ceramic wares for laboratory etc. 203.7 Ethiopia,
Nigeria, USA,
Australia
Malaysia
701710 Laboratory glasses etc of fused quartz or
other fused
34.86 Nigeria, Oman,
Brazil
Malaysia,
USA
701720 Laboratory hygienic/pharmaceutical
glassware of other glass having a linear
coeffcient of expansion not exceeding
5X10 -6/ Kelvin within a temperature
between 0 degree C to 300 degree C
3.73 Nepal, UAE China,
Singapore,
Czech
Republic,
Germany
701790 Other laboratory,
hygienic/pharmaceutical glassware
3075.15 Iraq Germany,
France
840410 Auxlry Plnt Usd with Boilrs of
8402/8403
2083.83 USA, Malaysia,
Taiwan
Belgium
840420 Condensers for Steam/other Vpr Powr
Units
249.74 Thailand,
Colombia, USA,
Pakistan
Germany
840510 Produced gas or water gas generators
with or without their purifiers acetylene
gas generators and similar water process
gas generators with or without their
purifiers
533.25 Iran Germany,
USA, UK,
Poland,
France
840991 Suitable for use solely or principally
with spark-ignition internal combustion
piston engines
25206.44 USA, Germany Japan, Korea
Republic
(South),
Germany,
UK
840999 Other(parts suitable for engines) 38412.71 USA, Germany,
UK
USA, UK,
Japan
841011 Hydraulic Turbines & Water Wheels of
a Power not Exceeding 1000 Kw
221.63 Iraq Japan, USA
841012 Of a power not exceeding 1,000 kW but
not exceeding 10,000 kW
50.34 Laos Japan
841013 Of a power exceeding 10,000 kW 20.95 USA Korea
Republic
(South)
841090 Parts of Hydrlic Turbnes incl.
Regulators
606.94 Viet Nam,
Germany, USA
Norway
64
841360 Other rotary positive displacement
pumps
878.19 Germany, USA,
UAE, UK
Germany,
USA, Japan,
Switzerland,
UK
841370 Other centrifugal pumps 13830.45 UAE, Germany,
USA, Iraq,
Egypt
Japan,
Germany,
Singapore,
Netherlands,
France, USA
841381 Pumps 1646.12 Germany, USA,
Taiwan, Saudi
Arabia, UAE
USA,
Germany,
Japan, UK
841410 Vacuum Pumps 545.12 France, USA,
UK, Malaysia
Germany,
Italy, USA,
Korea
Republic
(South)
841459 Other(air or vacuum pumps) 1104.89 USA USA,
Germany,
China, Italy
841480 Other(air or vacuum pumps) 3623.35 Iraq, Korea
Republic (South)
USA, Japan
841780 Other Furnaces & Ovens 261.6 Thailand Japan,
Canada,
Germany,
Netherlands
841790 Parts of Non Electric Furnaces Ovens
etc
512.42 China, Sri
Lanka,
Bangladesh,
Nigeria
Germany,
Australia,
Italy, Japan,
France
841919 Instantaneous or storage water heaters,
non-electric - Other
188.16 Nigeria,
Indonesia,
Turkey,
Malaysia
USA, China,
Australia,
Germany,
Switzerland
841940 Distilling or rectifying plant 411.89 Mexico, Nigeria,
Iran, Trinidad
and Tobago,
Bangladesh
Germany
841950 Heat exchange units 1521.91 Saudi Arabia,
Qatar, Nigeria,
Thailand
USA, Italy,
Germany,
UK, France
841960 Machinery for Liquefying Air/other
Gases
335.67 Bangladesh,
Oman, Nigeria
Russia,
Switzerland,
Netherlands,
France
842119 Centrifuges, incl. centrifugal dryers, 2527.8 USA, Oman, Germany,
65
Other Italy USA
842121 Centrifuges, incl. centrifugal dryers, for
filtering or purifying water
1513.42 Malaysia, USA,
Iran, Nigeria
USA,
France,
Japan,
Germany
842129 Centrifuges, incl. centrifugal dryers,
other
835.7 Korea Republic,
USA
USA,
Germany,
Japan
842139 Filtering or purifying machinery and
app. for gases, other
480.36 Saudi Arabia,
USA, Sri Lanka
USA,
Thailand,
South
Africa,
Germany
842191 Parts, of centrifuges, incl. centrifugal
dryers
678.5 Germany, USA Germany,
USA, South
Africa,
Sweden
842199 Parts, other 3847.08 USA, Oman,
Indonesia
USA,
Germany,
UK, Japan
842220 Machinery for Clng/Dryng Botls/other
Cntnrs
664.88 Qatar, Germany,
UAE, Nigeria
Italy
842833 Other Continuous Action Elevatrs &
Conveyrsfor Goods/Materials,Belt Type
1.35 Zimbabwe Japan
843680 Other machinery 566.03 Malawi Italy, USA,
Germany,
Japan
846291 Hydraulic presses 1156.19 South Africa,
Greece, Nigeria,
UAE, Korea
Republic
(South), Iran
Italy, Korea
Republic
(South),
Germany,
Taiwan
(Taipei)
847290 Other office machines 2008.91 Japan, UAE,
Indonesia, Iran,
Italy
UK, USA,
Germany
847410 Sorting, screening, separating or
washing machines
294.93 Iran Germany,
UK
847432 Mchns for Mxng Mnrl Substncs with
Bitumen
64.47 Malaysia Korea
Republic
(South)
847982 Mxng,Kneadng,Crushng,Grndng,Screng,
Siftng,Homogensng,Emulsifyng/Stirrng
Mchns
1149 Bangladesh Germany,
France,
USA,
Switzerland
66
847989 Other (machines or mechanical
appliances)
19150.42 USA, UAE,
Nigeria,
Indonesia,
China,
Bangledesh
Germany
847990 Parts 31927.81 USA, UK,
Germany, Italy,
Nigeria
Germany,
USA, Japan,
Philippines,
UK
850231 Other generating sets; wind powered 143.55 Japan, Malagasy Germany,
Denmark
850590 Electro magnets; chucks, clamps &
similar devices
1807.06 Hong Kong,
USA, Italy,
Singapore
Japan
851410 Resistance heated furnaces & ovens 91.11 Germany,
Norway, UAE
Japan,
France, USA
851420 Induction/dielectric furnaces & ovens 378.35 Libya, UAE,
Iran,
Bangladesh, Sri
Lanka
Germany
851430 Other furnaces and ovens 870.62 UAE, Saudi
Arabia
Germany,
USA, UK,
China
851490 Parts of articles of industrial or
laboratory electric (including induction
or dielectric) furnaces and ovens; other
industrial or labortatory induction or
dielectric heating equipment
577.53 Bangladesh,
UAE, USA, UK,
Sri Lanka
USA,
Germany,
UK,
Switzerland
854140 Photosensitive semi-conductor devices,
including photovoltaic cells whether or
not assembled in modules or made up
into panels; light emitting diodes
33239.71 Hong Kong,
Germany, USA,
Netherlands,
Spain
Australia,
USA
854389 Other nes 2762.48 USA, Japan,
Israel
Israel, USA,
Japan
890710 Invlatable Rafts 40.96 UAE Switzerland,
Singapore
890790 Other floating structures 24.35 Singapore, Sri
Lanka, UAE
Singapore,
USA
901540 Photogrmtrcl Survying Instrmnts &
Applncs
UAE USA
901580 Othe instruments and appliances. 794.42 USA, South
Africa
USA, France
901590 Parts & Accessores of Surveying,
Phtogrmcl, Hydrogrphic Instrumnts etc.
excl. Compasses
1142.41 USA USA, France
67
902229 Apprts Bsd On Use of Alpha,Bta/Gma
Radtns for other Uses incl Rdogrphy &
Rdothrpy Apprts
199.58 USA USA,
Germany,
Israel, Japan
902290 Other, including parts and accessories 12608.93 USA, Japan USA,
Germany,
France
902511 Liquid-filled, for direct reading 273.56 USA, Iraq UK,
Belgium,
China
902519 Other ( hydrometers and similar loating
instruments)
134.02 USA, Iraq, UAE Germany,
USA, Japan
902580 Other instruments 44.4 China, Yemen,
Iraq
USA,
Germany,
UK,
Singapore
902590 Parts & Accssrs of Instruments of Hdg
9025
209.51 Italy, Malaysia,
UAE, Singapore
Belgium,
Korea
Republic
(South), UK,
Germany,
USA
902610 For measuring or checking the flow or
level of liquids
2674.17 South Africa,
Singapore, USA,
Switzerland
USA,
Germany
902620 For measuring or checking pressure 1211.68 USA, Iraq,
Mexico
Germany,
Japan,
Singapore,
USA
902680 Other instruments or apparatus 208.93 USA, Mexico USA,
Germany
902690 Parts&Accssrs of Insrmnts/Apprts of
Hdg9026
712.36 Switzerland,
UK, Syria,
Bangladesh
Singapore,
USA
902710 Gas or smoke analysis apparatus 643.21 UK, Sri Lanka,
Oman, Saudi
Arabia, Ethiopia
USA, UK,
Germany,
Japan
902720 Chromatographs & Electrophoresis
Instrmnt
24.13 USA, Israel Japan, USA,
Singapore,
Germany
902730 Spectrometers, spectro-photometers and
spectographs using optical radiations
(UV, visible, IR)
118.69 Germany, UK,
Switzerland,
UAE
Switzerland,
USA, UK,
Germany,
Japan
902740 Exposure Meters South Africa Japan
68
902750 Other instruments and apparatus using
optical radiations (UV, visible, IR)
178.77 Netherlands,
China, France,
USA, UK
USA,
Germany,
Japan
902780 Other instruments and apparatus 523.94 Romania, USA,
Turkey
USA,
Germany
902790 Microtomes; parts and accessories 315.46 Yemen,
Germany
USA,
Germany,
UK,
Switzerland,
Japan
902810 Gas Meters 567.35 Egypt China
902820 Liquid Meters 23.46 Singapore,
Dominican
Republic
USA
902830 Electricity Meters 2171.73 UK, Australia China,
Switzerland
902890 Parts and Accessories of Gas Lqd or
Electricty Supply or Production Meters
185 Myanmar
(Burma),
Australia,
Malaysia
China
90301000 Instrument and Apparatus for Measuring
or Detecting Ionising Radiation
544.85 USA USA,
Germany,
UK, France
903020 Cathode-ray oscilloscopes and cathode-
ray oscillographs
27.95 Singapore,
Nepal
USA, China,
Singapore
903031 Multimeters 127.82 USA USA, China,
Taiwan
(Taipei)
903039 Other ( oscilloscopes and other
instruments for measuring or checking
electrical quantities excluding meters)
5681.63 UK, USA USA
903083 Other with a recording device, nes 26.97 Sri Lanka,
Thailand and
Tobago
UK,
Singapore
903089 Other ( oscilloscopes and other
instruments for measuring or checking
electrical quantities excluding meters)
107.46 USA USA,
Singapore
903090 Parts and accessories 1340.63 USA USA
903110 Machines for Balancing Mechanical
Parts
157.59 UAE, Thailand,
Singapore,
Turkey, Sweden
UK,
Germany
903120 Test Benches 165.23 Italy, Brazil,
Singapore
Germany
903130 Profile Projectors 17.27 South Africa,
Italy
Germany,
UK, France,
Singapore
69
903180 Other Msrng & Checking Instrmnts,
Applncs & Mchns
615.76 USA, UAE,
Singapore,
Germany,
France
USA,
Germany,
France, UK,
Japan
903190 Parts and Accessories of Instrmnts of
9031
749.43 USA Korea
Republic
(South),
USA, UK,
Germany,
Japan
903210 Thermostats 277.75 UK, Thailand UK, Korea
Republic
(South),
USA, Italy,
Japan
903220 Manostats 0.11 USA USA,
Switzerland,
Germany,
Denmark
903281 Hydraulic/Pneumatic Instrumnts &
Apparatus
344.05 USA, Japan USA,
Germany,
Japan, UK
903289 Other ( automatic regulating or
controlling instruments)
2710.31 USA, Singapore,
Niger, Japan,
Qatar
Korea
Republic
(South),
USA,
Germany,
Japan
903290 Parts and Accessories of Instrmnts of
9032
559.56 Sweden, USA USA,
Singapore,
Japan,
Germany
9033 Parts and accessories (not specified or
included elsewhere in this Chapter) for
machines, appliances, instruments or
apparatus of Chapter 90
9971.28 USA, Japan,
Germany
USA,
Germany,
Japan
Data Extracted from ITC
Based on 2003 data
70
Annex 3. India's Import of Environmental Products and their Growth arranged in
Descending Order
Commodity
Code
Commodity Name US $
Million
CAGR
Annual
Dec-03
val
84743200 Mchns for Mxng Mnrl Substncs with Bitumen 15.38 2.03
84042000 Condensers for Steam/other Vpr Powr Units 1.67 0.51
90154000 Photogrmtrcl Survying Instrmnts & Applncs 0.84 0.43
90313000 Profile Projectors 4.83 0.42
847290 Other 38.9 0.39
90283000 Electricity Meters 20.4 0.29
690919 Other ceramic wares for laboratory etc. 2.05 0.26
85141000 Resistance heated furnaces & ovens 0.56 0.25
902290 Other, including parts and accessories 42.3 0.23
90301000 Instrument and Apparatus for Measuring or Detecting
Ionising Radiation
2.12 0.22
701790 Other laboratory, hygienic/pharmaceutical glassware 2.27 0.22
903020 Cathode-ray oscilloscopes and cathode-ray oscillographs 4.38 0.20
90272000 Chromatographs & Electrophoresis Instrmnt 26.29 0.20
854389 Other nes 78.01 0.19
903083 Other with a recording device, nes 1.94 0.19
842139 Filtering or purifying machinery and app. for gases,
other
14.21 0.18
854140 Photosensitive semi-conductor devices, including
photovoltaic cells whether or not assembled in modules
or made up into panels; light emitting diodes
14.3 0.16
90281000 Gas Meters 0.88 0.15
841919 Instantaneous or storage water heaters, non-electric -
Other
0.83 0.15
901580 Othe instruments and appliances. 20.72 0.15
903090 Parts and accessories. 11.73 0.14
903289 Other 43.79 0.14
90322000 Manostats 0.37 0.14
841940 Distilling or rectifying plant 22 0.14
690320 Other refractory ceramic goods containing by weight
more than 50 % of alumina (aluminium oxide) or of a
mixture or compound of alumina and of silica (silicon
dioxide)
3.68 0.13
90259000 Parts & Accssrs of Instruments of Hdg 9025 3.17 0.13
903089 Other 12.57 0.12
71
690210 Refractory bricks, blocks, tiles and similar goods
containing by weight, singly or together, more than 50%
of the elements magnesium, calcium or chromium,
expressed as magnesium oxide, calcium oxide oUNIT
15.85 0.12
90289000 Parts and Accessories of Gas Lqd or Electricty Supply
or Production Meters
7.19 0.12
902511 Liquid-filled, for direct reading 0.57 0.12
902730 Spectrometers, spectro-photometers and spectographs
using optical radiations (UV, visible, IR)
27.6 0.12
85023100 Other generating sets; wind powered 1.32 0.11
90319000 Parts and Accessories of Instrmnts of 9031 32.07 0.10
85051900 Permanent magnets & articles intended to become
permanent magnets after magnetisation; of other
material
4.04 0.10
841480 Other 39.87 0.08
9033 Parts and accessories (not specified or included
elsewhere in this Chapter) for machines, appliances,
instruments or apparatus of Chapter 90
79.92 0.08
90318000 Other Msrng & Checking Instrmnts, Applncs & Mchns 102.15 0.07
841370 Other centrifugal pumps 15.63 0.07
902780 Other instruments and apparatus 60.55 0.07
70172000 Laboratory hygienic/pharmaceutical glassware of other
glass having a linear coeffcient of expansion not
exceeding 5X10 -6/ Kelvin within a temperature
between 0 degree C to 300 degree C
0.45 0.07
902790 Microtomes; parts and accessories 30.15 0.07
902580 Other instruments 2.62 0.06
902620 For measuring or checking pressure 11.82 0.06
591190 Other 9.11 0.06
840991 Suitable for use solely or principally with spark-ignition
internal combustion piston engines
37.97 0.06
84178000 Other Furnaces & Ovens 5.48 0.05
902750 Other instruments and apparatus using optical radiations
(UV, visible, IR)
4.79 0.05
903039 Other 13.51 0.04
84219900 Parts, other 33.22 0.04
90303100 Multimeters 1.59 0.04
841381 Pumps 30.51 0.03
902610 For measuring or checking the flow or level of liquids 13.95 0.02
90329000 Parts and Accessories of Instrmnts of 9032 26.25 0.02
840999 Other 90 0.02
90311000 Machines for Balancing Mechanical Parts 1.75 0.02
84219100 Parts, of centrifuges, incl. centrifugal dryers 2.77 0.01
902710 gas or smoke analysis apparatus 11.13 0.01
90282000 Liquid Meters 0.33 0.01
72
56031400 Man-Made Filmnt Wghng >150G/Sqm 1.73 0.00
841360 Other rotary positive displacement pumps 3.9 0.00
84212900 Centrifuges, incl. centrifugal dryers, other 12.42 0.00
90321000 Thermostats 4.18 -0.01
902519 Other 1.96 -0.01
90269000 Parts & Accssrs of Insrmnts/Apprts of Hdg9026 14.08 -0.01
842119 Centrifuges, incl. centrifugal dryers, Other 5.62 -0.02
90222900 Apprts Bsd On Use of Alpha, Bta/Gma Radtns for other
Usesincl Rdogrphy & Rdothrpy Apprts
2.8 -0.02
842121 Centrifuges, incl. centrifugal dryers, for filtering or
purifying water
3.64 -0.03
90159000 Parts & Accessores of Surveying, Phtogrmcl,
Hydrogrphic Instrumnts etc. excl. Compasses
4.84 -0.03
90312000 Test Benches 4.57 -0.03
902680 Other instruments or apparatus. 9.07 -0.04
841459 Other 11.02 -0.04
847989 Other 117.42 -0.05
690290 Other refractory bricks, blocks, tiles et 12.14 -0.05
85149000 Parts of articles of industrial or laboratory electric
(including induction or dielectric) furnaces and ovens;
other industrial or laboratory induction or dielectric
heating equipment
2.74 -0.05
84222000 Machinery for Clng/Dryng Botls/other Cntnrs 1.13 -0.05
847990 Parts 40.35 -0.06
84196000 Machinery for Liquefying Air/other Gases 3.19 -0.07
90328100 Hydraulic/Pneumatic Instrumnts & Apparatus 0.64 -0.08
84283300 Other Continuous Action Elevatrs & Conveyrs for
Goods/Materials, Belt Type
0.99 -0.08
84798200 Mxng, Kneadng, Crushng, Grndng, Screng, Siftng,
Homogensng, Emulsifyng/Stirrng Mchns
7.08 -0.10
84041000 Auxlry Plnt Usd with Boilrs of 8402/8403 0.76 -0.10
84109000 Parts of Hydrlic Turbnes incl. Regulators 2.59 -0.10
84179000 Parts of Non Electric Furnaces Ovens etc 3.6 -0.10
690310 Other refractory ceramic goods containing by weight
more than 50% of graphite or other forms of carbon or
of a mixture of these products
0.4 -0.11
690390 Other refractory ceramic goods 6.25 -0.12
85142000 Induction/dielectric furnaces & ovens 0.2 -0.12
70171000 Laboratory glasses etc of fused quartz or other fused 0.14 -0.12
847410 Sorting, screening, separating or washing machines 4.04 -0.13
90274000 Exposure Meters 0.02 -0.14
851430 Other furnaces and ovens 2.26 -0.16
841950 Heat exchange units 7.45 -0.16
846291 Hydraulic presses 4.65 -0.20
89079000 Other floating structures 0.46 -0.20
73
843680 Other machinery 0.11 -0.22
841012 Of a power not exceeding 1,000 kW but not exceeding
10,000 kW
-0.23
840510 Produced gas or water gas generators with or without
their purifiers acetylene gas generators and similar water
process gas generators with or without their purifiers
2 -0.24
460120 Mats, matting and screens of vegetable materials 0.03 -0.45
84101100 Hydraulic Turbines & Water Wheels of a Power not
Exceeding 1000 Kw
-1.00
841013 Of a power exceeding 10,000 kW -1.00
Growth calculated on the basis of data extracted from ITC
Top 20 import items are shaded
Annex 4. Export of Environmental Goods from India Arranged According to their
Growth during 1998-2003
Commodity
Code
Commodity Name CAGR
90281000 Gas Meters 1.21
854140 Photosensitive semi-conductor
devices, including photovoltaic cells
whether or not assembled in modules
or made up into panels; light emitting
diodes
0.76
90159000 Parts & Accessores of Surveying,
Phtogrmcl, Hydrogrphic Instrumnts
etc. excl. Compasses
0.76
90283000 Electricity Meters 0.46
843680 Other machinery 0.42
90222900 Apprts Bsd On Use of
Alpha,Bta/Gma Radtns for other Uses
incl Rdogrphy & Rdothrpy Apprts
0.42
89071000 Invlatable Rafts 0.41
90328100 Hydraulic/Pneumatic Instrumnts &
Apparatus
0.39
690320 Other refractory ceramic goods
containing by weight more than 50 %
of alumina (aluminium oxide) or of a
mixture or compound of alumina and
of silica (silicon dioxide)
0.38
84109000 Parts of Hydrlic Turbnes incl.
Regulators
0.37
74
9033 Parts and accessories (not specified or
included elsewhere in this Chapter)
for machines, appliances, instruments
or apparatus of Chapter 90
0.37
901580 Othe instruments and appliances 0.37
841480 Other air vacuum pumps 0.37
90321000 Thermostats 0.36
902290 Other, including parts and accessories 0.35
903083 Other with a recording device, nes 0.35
90319000 Parts and Accessories of Instrmnts of
9031
0.35
854389 Other nes 0.34
902620 For measuring or checking pressure 0.33
903089 Other 0.33
56031400 Man-Made Filmnt Wghng
>150G/Sqm
0.30
70171000 Laboratory glasses etc of fused quartz
or other fused
0.28
902610 For measuring or checking the flow
or level of liquids
0.27
847290 Other 0.27
90301000 Instrument and Apparatus for
Measuring or Detecting Ionising
Radiation
0.27
90313000 Profile Projectors 0.26
84219900 Parts, other 0.24
841919 Instantaneous or storage water
heaters, non-electric - Other
0.23
84178000 Other Furnaces & Ovens 0.22
847990 Parts 0.22
841012 Of a power not exceeding 1,000 kW
but not exceeding 10,000 kW
0.22
90269000 Parts & Accssrs of Insrmnts/Apprts of
Hdg9026
0.22
84743200 Mchns for Mxng Mnrl Substncs with
Bitumen
0.22
84798200 Mxng, Kneadng, Crushng, Grndng,
Screng, Siftng, Homogensng,
Emulsifyng/Stirrng Mchns
0.21
690390 Other refractory ceramic goods 0.21
690220 Refractory bricks, blocks, tiles and
similar goods containing by weight,
more than 50% of alumina (al2o3), of
silica (sio2) or of a mixture of
compound of these products
0.20
75
701790 Other laboratory,
hygienic/pharmaceutical glassware
0.18
84041000 Auxlry Plnt Usd with Boilrs of
8402/8403
0.18
89079000 Other floating structures 0.16
690919 Other ceramic wares for laboratory
etc.
0.16
902780 Other instruments and apparatus 0.15
841360 Other rotary positive displacement
pumps
0.14
84196000 Machinery for Liquefying Air/other
Gases
0.13
903090 Parts and accessories 0.13
903020 Cathode-ray oscilloscopes and
cathode-ray oscillographs
0.12
690310 Other refractory ceramic goods
containing by weight more than 50%
of graphite or other forms of carbon
or of a mixture of these products
0.12
85023100 Other generating sets; wind powered 0.11
841950 Heat exchange units 0.11
90303100 Multimeters 0.11
846291 Hydraulic presses 0.10
840510 Produced gas or water gas generators
with or without their purifiers
acetylene gas generators and similar
water process gas generators with or
without their purifiers
0.10
902580 Other instruments 0.10
903289 Other 0.10
841381 Pumps 0.10
85142000 Induction/dielectric furnaces & ovens 0.10
847989 Other 0.09
902710 gas or smoke analysis apparatus 0.09
842119 Centrifuges, incl. centrifugal dryers,
Other
0.09
460120 Mats, matting and screens of
vegetable materials
0.09
902680 Other instruments or apparatus 0.09
90312000 Test Benches 0.08
841459 Other 0.08
903039 Other 0.08
85051900 Permanent magnets & articles
intended to become permanent
magnets after magnetisation; of other
0.06
76
material
841370 Other centrifugal pumps 0.06
842139 Filtering or purifying machinery and
app. for gases, other
0.06
84219100 Parts, of centrifuges, incl. centrifugal
dryers.
0.06
847410 Sorting, screening, separating or
washing machines
0.06
840999 Other 0.05
840991 Suitable for use solely or principally
with spark-ignition internal
combustion piston engines
0.05
84101100 Hydraulic Turbines & Water Wheels
of a Power not Exceeding 1000 Kw
0.05
90282000 Liquid Meters 0.04
84179000 Parts of Non Electric Furnaces Ovens
etc
0.04
84222000 Machinery for Clng/Dryng
Botls/other Cntnrs
0.04
902790 Microtomes; parts and accessories. 0.03
591190 Other 0.02
90289000 Parts and Accessories of Gas Lqd or
Electricty Supply or Production
Meters
0.02
90329000 Parts and Accessories of Instrmnts of
9032
0.02
690210 Refractory bricks, blocks, tiles and
similar goods containing by weight,
singly or together, more than 50% of
the elements magnesium, calcium or
chromium, expressed as magnesium
oxide, calcium oxide oUNIT
0.02
85141000 Resistance heated furnaces & ovens 0.01
84212900 Centrifuges, incl. centrifugal dryers,
other
0.01
902519 Other 0.00
90274000 Exposure Meters 0.00
851430 Other furnaces and ovens -0.01
85149000 Parts of articles of industrial or
laboratory electric (including
induction or dielectric) furnaces and
ovens; other industrial or labortatory
induction or dielectric heating
equipment
-0.02
77
90311000 Machines for Balancing Mechanical
Parts
-0.03
90318000 Other Msrng & Checking Instrmnts,
Applncs & Mchns
-0.03
90259000 Parts & Accssrs of Instruments of
Hdg 9025
-0.05
90272000 Chromatographs & Electrophoresis
Instrmnt
-0.05
842121 Centrifuges, incl. centrifugal dryers,
for filtering or purifying water
-0.08
902511 Liquid-filled, for direct reading -0.08
902750 Other instruments and apparatus
using optical radiations (UV, visible,
IR)
-0.09
84042000 Condensers for Steam/other Vpr
Powr Units
-0.14
841013 Of a power exceeding 10,000 kW -0.16
902730 Spectrometers, spectro-photometers
and spectographs using optical
radiations (UV, visible, IR)
-0.22
70172000 Laboratory hygienic/pharmaceutical
glassware of other glass having a
linear coeffcient of expansion not
exceeding 5X10 -6/ Kelvin within a
temperature between 0 degree C to
300 degree C
-0.26
841940 Distilling or rectifying plant -0.29
84283300 Other Continuous Action Elevatrs &
Conveyrs for Goods/Materials, Belt
Type
-1.00
90154000 Photogrmtrcl Survying Instrmnts &
Applncs
-1.00
90322000 Manostats -1.00
Source: Data extracted from Indiatrades and ranked thereafter
Top 20 export products are shaded
Formula used for growth calculation:
CAGR=[Ending Value/Beginning
Value] (1 No. of years)
- 1
78
Annex 5. Top 20 Exports of Indian Environmental Goods according to Value in
2002 and RCA of those Products
Commodity
Code Commodity Name
World Import in
2002 (in US $
million)
Revealed Comparative
Advantage Index
840999 Other parts suitable for engines 11672.38 0.69
847990 Parts (machine) 8849.63 0.89
841370 Other centrifugal pumps 3859.31 1.42
847989 Other machines and mechanical
appliances 19179.86 0.26
854140
Photosensitive semi-conductor
devices, including photovoltaic
cells whether or not assembled in
modules or made up into panels;
light emitting diodes
5774.1 0.84
840991
Suitable for use solely or
principally with spark-ignition
internal combustion piston
engines
14709.09 0.33
903039
Other instruments for measuring
and checking electrical quantities
excluding meter
1333.01 1.32
9033
Parts and accessories (not
specified or included elsewhere in
this Chapter) for machines,
appliances, instruments or
apparatus of Chapter 90
2054.55 0.82
902290 Other, including parts and
accessories 3064.93 0.49
903289 Other 8042.91 0.13
841950 Heat exchange units 2723.64 0.31
90283000 Electricity Meters 746.55 1.03
84219900 Parts, other 4013.56 0.17
690220
Refractory bricks, blocks, tiles
and similar goods containing by
weight, more than 50% of alumina
(al2o3), of silica (sio2) or of a
mixture of compound of these
products
709.33 0.94
690390 Other refractory ceramic goods 360.02 1.80
847290 Other office machines 2472.79 0.24
79
690210
Refractory bricks, blocks, tiles
and similar goods containing by
weight, singly or together, more
than 50% of the elements
magnesium, calcium or
chromium, expressed as
magnesium oxide, calcium oxide
oUNIT
1733.77 0.29
701790
Other laboratory,
hygienic/pharmaceutical
glassware
748.63 0.67
842121
Centrifuges, incl. centrifugal
dryers, for filtering or purifying
water
2335.57 0.20
902610 For measuring or checking the
flow or level of liquids 1573.17 0.28
Total Export 5621271.41 1.00
Extracted 2002 data as latest data available in Indiatrades and calculated thereafter
Annex 6. 20 Environmental Goods of India (Experiencing maximum growth rate
during 1998-2003) and their Revealed Comparative Advantage
Commodity
Code
Commodity Name US $
Million
CAGR World Export Revealed
Comparative
Advantage
Index
Annual
Dec-03
val
90281000 Gas Meters 1.18 1.21 253.13 0.03
854140 Photosensitive semi-conductor
devices, including
photovoltaic cells whether or
not assembled in modules or
made up into panels; light
emitting diodes
68.86 0.76 5774.1 0.84
90159000 Parts & Accessores of
Surveying, Phtogrmcl,
Hydrogrphic Instrumnts etc.
excl. Compasses
2.37 0.76 1102.29 0.22
90283000 Electricity Meters 4.5 0.46 746.55 1.03
843680 Other machinery 1.17 0.42 745.61 0.02
80
90222900 Apprts Bsd On Use of Alpha,
Bta/Gma Radtns for other
Usesincl Rdogrphy &
Rdothrpy Apprts
0.41 0.42 203.79 0.45
89071000 Inflatable Rafts 0.08 0.41 95.79 0.05
90328100 Hydraulic/Pneumatic
Instrumnts & Apparatus
0.71 0.39 240 0.51
690320 Other refractory ceramic
goods containing by weight
more than 50 % of alumina
(aluminium oxide) or of a
mixture or compound of
alumina and of silica (silicon
dioxide)
2.04 0.38 531.88 0.19
84109000 Parts of Hydrlic Turbnes incl.
Regulators
1.26 0.37 465.69 0.37
9033 Parts and accessories (not
specified or included
elsewhere in this Chapter) for
machines, appliances,
instruments or apparatus of
Chapter 90
20.66 0.37 2054.55 0.82
901580 Other instruments and
appliances
1.65 0.37 1455.28 0.12
841480 Other 7.51 0.37 5643.86 0.05
90321000 Thermostats 0.58 0.36 1708.94 0.03
902290 Other, including parts and
accessories
26.12 0.35 3064.93 0.49
903083 Other with a recording device,
nes
0.06 0.35 689.48 0.01
90319000 Parts and Accessories of
Instrmnts of 9031
1.55 0.35 2710.57 0.07
854389 Other nes 5.72 0.34 8971.97 0.03
902620 For measuring or checking
pressure
2.51 0.33 1738.1 0.09
903089 Other 0.22 0.33 1739.05 0.02
Total Export 5621271.41
RCA calculated on the basis of data extracted from Indiatrades
81
Annex 7. Items which have more than one use (dual use or multiple use)
HS Code Commodity
56031 Man-Made Filament Weighing >150g/Sqm
392690 Other articles of plastics
460120 Mats Matting & Screens of Vegetable Materials
560314 Man-Made Filament Waging >150g/Sqm
591190 Other Textile Products & Articles for Technical Use
690210 Goods Contng by Wtsingly/ together>50% of the Elements
Magnesium\calcium/Chromium
690220 Refractory Bricks Blocks Etc containing weight.>50% Alumina, Silica/F
Mixture
690310 Other Refractory Ceramic Goods Containing by weight>50%
Graphite/Other Forms of Carbon/Of a Mixtures of these
690320 Goods Contng by Wt>50% Alumina (Aluminum Oxide)/Of
Mxtr/Compoun D of Alumina of Silica (Silicon Di-Oxide)
690390 Other Refractory Ceramic Goods
690919 Othr Cermc Wares Fr Labrtry Etc
701710 Lab Glasses Etc of Fused Quartz or Other Fused
701790 Other Lbrtry/Hygnc/Hrmctcl Glassware
840410 Auxiliary Plant Used With Boilers of 8402/8403
840420 Condensers Vapor Power Units for Steam/Other
840510 Producer Water Gas Gnrtrs, Acetle
82
841360 Other Rotary Positive Displace Mint Pumps
841370 Others Centrifugal Pumps
841410 Vacuum Pumps
841459 Other Fans
841480 Other Pumps, Compressors Etc
841940 Distilling/Rectifying Plant
841950 Heat Exchange Unit
841960 Machinery for Liquefying Air/Other Gases
842119 Other centrifuges including centrifugal Dryers
842121 Filtering Purifying Machinery Apparatus for Water
842129 Other Purifying Machinery Apparatus Fr Liquid
842220 Machinery Fr Clng/Dryng Botls/Othr Cntnrs
842833 Other Continuous Action Elevators & Conveyor for Goods/Materials
Belt Type
843680 Other Machinery of Hd8436
846291 Hydraulic Presses
847290 Other Office Machines
847410 Srtng, Screning, Separating &Washing Machines
847982 Mixing, Kneading, Crushing, Grinding, Screen, Sifting etc
83
847989 Other Machine & Mechanical Appliances of Hag 8479
851410 Resistance Heated Furnaces & Ovens
851420 Induction/Dielectric Furnaces & Ovens
901540 Photogrmtrcl Surveying Instruments & Appliances
901590 Parts Accessories of Surveying, Phtogrmcl, Hyd-Rogrphic Instruments
Etc. Excluding compasses
902229 Apparatus based On Use Alpha, Bta/Gma radiations for other Uses Incl
Rdogrphy & Rdothrpy apparatus
902290 Other Apprts Incl Prs & Accssrs of Hdg 9022
902511 Thermometers, Liquid filled, For Direct Riding
902580 Other Instruments of Heading 9025
902590 Parts Accssrs of Instruments of Hdg 9025
902610 Instruments Apparatus for Measuring or Checking the Flow or Level of
Liquids
902620 Instruments Aprts Fr Msrng/Chkng Pressure
902680 Other Instruments Apparatus Hdg9026
902690 Prts & Accssrs of Insrmnts/Apprts of Hdg9026
902710 Gas or Smoke Analysis Apparatus
902720 Chromatographs Electrophoresis Instrument
902730 Spectrometers, Spectrophotometer Meters Spectrographs Using Optical
Radiation
902780 Other Instruments Apparatus of Hdg 9027
84
902790 Micro tomes; Parts Accessory of Hdg 9027
902810 Gas Meters
902820 Liquid Meters
902830 Electricity Meters
902890 Parts and Accessories of Gas Liquid or electricity Supply or Production
Meters
903010 Instrument and Apparatus for Measuring or Detecting
903020 Cathode Ray osclcps Cathode-Ray Osclogrphs
903031 Multimeters 903039 Other Instrument Apparatus Fr Msrng/Chkngvltge,
Curnt,Rsstnc/Pwr, Without Rcrdng Devc
903083 Instruments Parts with Recording Device
903089 Other Instruments Apparatus
903090 Parts and Accessories of
903210 Thermostats
903220 Manostats
Annex 8. Items which can be of interest for India
a) Based on HS Codes
HS
230210
Booms and socks of corn cobs
HS
847989
Trash compactors
HS
393269
Bio-film medium
HS
392690
Rotating Biological contractor
85
HS
854389
Ozone Production System
HS
854140
Photosensitive semiconductor devices including photo volatile
Cells assembled in module\made up into panels
b) Environment Friendly products in the context of production capabilities of India:
Jute and jute
products
Coir and coir
products
Bamboo and rattan products
Cotton handlooms
Handloom furnishing materials
Textiles and clothing made by using natural dyes
Garments using natural dyes
Non timber forest products
Products based on
TK