import summary report india - saudiexports.sa · this report looks into the india’s non-oil...

Import Summary ReportIndiaApril 2015

India

1

DisclaimerThe Import Summary Report has been prepared by Saudi Exports (Saudi Export Development Authority) as a part of its continuous publication on countries. The purpose of this study is to provide a high-level view of global import based on available public information. Its analysis, perceptions and anticipations are subject to personal judgment. Saudi Exports is not liable for any consequences caused by the understanding and interpretation of any part of this report. In general, the information in the report presents a broad view of the imports to the country. Saudi exporters are encouraged to carry out further studies for any potential opportunities identified in this report.

ContentsDisclaimer

1. Imports Overview

2. Non-oil Imports

3. Industry Import Profiles

3.1 Consumer Products

3.2 Machine Equipment and Parts

3.3 Chemicals and Petrochemicals

3.4 Building Materials

3.5 Textiles

3.6 Packaging

Appendix

3

4

5

5

6

8

9

10

11

13

2

For comments and queries please contact:

Telephone: +966 11 874 2000Fax: +966 11 874 2002Email: [email protected] of Saudi ArabiaP.O. Box 75169, Riyadh 11578

Saudi Export Development Authoritywww.saudiexports.sa

• India’s GDP has grown at 7.5% annually from 2009 to 2013. This high growth has led to a steady rise in domestic consumption, leading to growth in India’s imports by 15% over the past 5 years.

• While India primarily imports crude oil, which constitute 40% of total imports, it also imports non-oil products primarily in consumer products, machine equipment, building materials, chemicals & petrochemicals, textiles, and packaging products categories in good quantity.

• Though KSA currently occupies a small portion of India’s non-oil import segment, the imports from Kingdom has seen a rapid growth of 25% in past few years.

This report looks into the India’s non-oil import market vis-à-vis Kingdom’s share in the non-oil imports. It also outlines the import potentials in certain industries such as consumer products, building materials, machine equipment, textile, packaging and petrochemicals.Import of services by India are not part of this Import Summary Report.

Summary

3

1. Imports Overview

According to International Monetary Fund1, India is the 10th largest economy in the world and 3rd largest in Asia after China and Japan. Between 2009 and 2013, the country’s real Gross Domestic Product (GDP) grew at a cumulative annual growth rate (CAGR) of 7.5% to 5.47 trillion SAR2. India ranks second in terms of economic growth among the major emerging markets of Brazil, Russia, India, China, and South Africa (BRICS). India is the 10th largest importer in the world3. Figure 1 shows distribution of India’s imports in the last 5 years. Petroleum products (crude oil, chemicals and petrochemicals) have been India’s biggest import items for a long time. In 2013, oil accounted for 40% of the total imports rising from 31% in 2009. Chemicals and Petrochemicals have also seen a similar rise whereas their contribution has remained steady at 8%.

Figure 2 shows country wise breakup of India’s import portfolio. Among its partner countries, China is the biggest contributor to Indian imports, supplying 11% of total imported goods, primarily in building materials, chemicals & petrochemicals, machine equipment, and consumer products segments. China is followed by Saudi Arabia in total imports. The Kingdom accounts for 8% of the total imported products, which are mainly made of Crude oil, and Chemicals and Petrochemicals. India also has several trade agreements (refer to Appendix 1) with many of the surrounding countries (including China, Sri Lanka, Bangladesh etc.), developing and least developed countries that grants them with preferential tariff treatments.

1 Report for Selected Countries and Subjects, World Economic Outlook, IMF, October 20142 GDP (constant 2005 US$), The World Bank3 WTO Press Release 2013, World Trade Organization, 10th April 20134 Trade Map Database, International Trade Center

2009 2010 2011 2012 2013310

83

606

416

107

790

590

132

1,012999

Oil OthersChemicals & Petrochemicals

56% Others

11% China

8% Saudi Arabia

7% United Arab Emirates

5% Switzerland

5% USA

4% Iraq

4% Kuwait

Figure 1: Import4 growth in India

Figure 2: Total Imports to India by country (2013)

100% = 1,747 billion SAR

in billion SAR

1,313

1,7341,834

1,748

696

139

999 919

691

138

56%

4%4%

5%

5%

7%

8%

11%

15%

4

2. Non-oil Imports

Apart from oil, India imports Consumer Products, Machine Equipment, Building Materials, Chemicals & Petrochemicals, and Textiles. A strong domestic demand for these products witnessed the non-oil imports to grow by 11% annually from 689 billion SAR in 2009 to 1,057 billion SAR in 2013 (Figure 3)

Figure 4 shows country wise breakup of India’s non-oil imports. China leads the segment with 18% of total imports. It is followed by Switzerland which accounts for 9% of non-oil supply. USA and UAE occupy the next two positions.

5 Trade Map Database, International Trade Center

2009 2010 2011 2012 2013

Consumer Products

Building Materials

Machine Equipment

Others**Textiles, Packaging etc.

Chemicals & Petrochemicals

45% Others

18% China

9% Switzerland

7% USA

7% United Arab Emirates

5% Germany

4% South Korea

4% Japan

1% Saudi Arabia

Figure 3: Non-oil products Imported by India

Figure 4: Non-oil Imports to India by country (2013)5

in billion SAR

100% = 1,057 billion SAR45%

18%

9%

7%

7%

176374 279 332 279

205259 248

107139

13875

9383

231

897 314

1,137

309

1,057

256

12792

295

1,144

1818363

186

689

4%5%

4%1%

11%

5

3. Industry Import Profiles3.1 Consumer Products

Consumer products contributes 16% to India’s overall imports in 2013. India imports a diverse set of consumer products ranging from jewelry to food & dairy products to toiletries and consumer durables. In the past 5 years, India’s imports of consumer products have increased by 12% annually.Figure 6 shows the distribution of India’s imports of consumer products over the past 5 years. Due to growing demand and limited production capacity, precious metals and jewelry have the largest share in this segment. Imports of precious metals and jewelry registered a total of 254 billion SAR in 2013. Apart from jewelry, India also imports Heating, Ventilating and Air Conditioning (HVAC) products, Consumer Durables, Food and Dairy products and toiletries.

Though non-oil products contribute only 10% of the total imports from KSA, the segment has seen a staggering growth. Figure 5 shows that non-oil import from KSA more than doubled in last 5 years. In non-oil imports from KSA, Chemicals and Pharmaceuticals contributed 10.6 billion SAR in 2013 i.e. 3/4th of the total. The growth in the past 5 years in non-oil imports emphasize the need to explore opportunities in non-oil commodities particularly in building materials, consumer products, machine equipment, packaging, and textiles.


2009

2009

2010

2010

2011

2011

2012

2012

2013

2013

Chemicals and Petrochemicals

Precious Metals and jewelry

Others

Others*

50% Scrap Material

91% Precious Metals & Jewelry

11% Consumer Products

2% Others

22% Others

2% Consumer Durables

1% Machine Equipments & parts

2% HVAC

13% Building Material

2% Food & dairy products

1% Packaging

1% Toiletries products

1% Textiles

Figure 5: Non-oil products imported by India from KSA6

*Others include Tobacco, Cigars, Candles, Matches, and Stationary Items etc.

Figure 6: Consumer Products Imports to India

in billion SAR

in billion SAR

100% = 3.2 billion SAR

100% = 278 billion SAR

4.4

1.25.6

2.7

10.9

1.9

9.1

3.0

13.6 13.8

8.2 7.2

10.6 10.6

50%

91%

22%

2% 2%2%1%2%

13%

11%

1%1%1%

١٦٠٢٥٨ ٢٥٤

٣٥٢ ٣٠٧١٥175

٢١279

٢٤

278٢٢374

٢٥332

Expa

ndin

g 20

13 im

port

s fu

rthe

r

25%

12%

6

Figure 7 shows country wise breakup of India’s imports of consumer products. Supply of imported consumer goods is fairly distributed with the top 5 countries contributing only 37% of the total imports. Switzerland is the major contributor to consumer products imports to India. Along with jewelry, India imports watches and consumer durables from Switzerland. India also imports precious metals and jewelry from the UAE, Belgium and South Africa, which are all primary producers of precious metals.

7 Trade Map Database, International Trade Center8 Trade Map Database, International Trade Center

62.7% Others

15.4% Switzerland

10.1% UAE

5.6% Belgium

3.5% China

2.6% South Africa

0.1% KSA

Figure 7: Consumer Products imports to India by country7

100% = 278 billion SAR

62.7%

0.1%2.6%

3.5%

5.6%

10.1%

15.4%

KSA accounts for a small portion of consumer products imported by India. However, imports of precious metals and jewelry produced in KSA is increasing. As shown in Appendix (table 9) Saudi exporters have significant price advantage over the major suppliers of jewelry products to India.

98.2% Precious Metals & Jewelry

0.4% Others

0.3% Food & dairy products

1.0% Toiletries

Figure 8: Consumer products Imported by India from KSA8

100% = 357 million SAR

98.2%

0.4%

1.0%

0.3%

Precious Metals and jewelry Others*

2009 2010 2011 2012 2013

in million SAR

Expa

ndin

g 20

13 im

port

s fu

rthe

r

6

25

173

350

272941

3.2 Machine Equipment and PartsMachine Equipment and Parts contribute 14% of India’s overall imports. Products in this segment include electronics & mechanical engines, electrical batteries and water pumps among others. In the past 5 years India’s imports of machine equipment and parts have increased by 8% annually.Due to a flourishing manufacturing sector in India, demand for electronics items and mechanical engines & parts have increased steadily. Import in both these categories have grown by 9% annually which is in line with the overall growth in this segment. Apart from electronics and mechanical engines, India also imports tools, electrical batteries, air pump, water pumps as shown in figure 9.

71%

41 29 27

198

356

7

42% Electronics Items

25% Mechanical Engines & Parts

10% Tools

6% Electrical Batteries

3% Air Pump

2% Water Pumps

12% Others

Electronic Items

Tools

Mech. Engines & Parts

Others*

2009 2010 2011 2012 2013

in billion SAR

Expa

ndin

g 20

13 im

port

s fu

rthe

r

43

181

20

44

74

48

204 62

254

59

248

64

259

21

27 2528

5466 6168

81101 10398


*Others include Anchors, Conveyor belts, printing machines etc.

Figure 9: Machine Equipment & Parts Constituents by World Imports9

Figure 11: Machine Equipment Imports to India from KSA11

9 Trade Map Database, International Trade Center10 Trade Map Database, International Trade Center11 Trade Map Database, International Trade Center

Figure 10 shows country wise breakup of India’s imports in machine equipment. Supply of imported machine equipment and parts is fairly concentrated with the top 5 countries contributing 66% of the total imports.China is the major contributor of machine equipment and parts imports to India. Along with electric items and mechanical engines & parts, India also imports electrical batteries from China. India primarily imports hydraulic pumps from Germany and USA.

35% China

78% Air Pump

78%

8%

6%6% 1%

42%

25%

10%

6%3%

2%12%

1%

34% Others

8% Electronics

9% Germany

6% Mech. Engines & Parts

9% USA

6% Tools

7% Japan

1% Elect. Batteries

6% South Korea

1% Others

0.01% KSA

Figure 10: Machine Equipment & Parts Imports to India – by Country10


34%

7% 9%

9%

35%

6%

0.01%

As shown in figure 11, KSA holds very small share of consumer products imports. However, imports of KSA machine equipment and parts is increasing at a good pace in the last 5 years. The tariff rates for goods imported from KSA in this segment are relatively low in comparison to other industries (Tables 12-17).

2009 2010 2011 2012 2013

in million SAR

Expa

ndin

g 20

13 im

port

s fu

rthe

r

173

Electronic Items

Tools

Mech. Engines & Parts

Others*

63

34

2

53

108

72

176

48

410 36

28

71

4 6 13 331

100% = 35.6 million SAR

8%

42%

8

Fertilizers

Polymers

Organic Chemicals

Others*

2009 2010 2011 2012 2013

in billion SAR

Expa

ndin

g 20

13 im

port

s fu

rthe

r

١٤

83١٩

١0٩

١٥

٢٢

٣٠4٣

٢٤ ٢٥

٢٧

135

٢٤

139

٢٢

138

٢٣ 28 ٣٠

٥٠ ٥٥ ٦١

٣٥ ٣٢ ٢٥

3.3 Chemicals and PetrochemicalsChemicals and Petrochemicals contribute 14% of India’s non-oil imports. To sustain economic growth, demand for organic chemicals and petrochemicals have increased steadily. Imports in both these categories have doubled in past 5 years. Apart from Fertilizers, polymers, and organic chemicals, India also imports photographic chemicals, chemical residues etc. as shown in figure 12.

KSA accounts for 7% of total chemicals and petrochemicals imports to India. Imports of KSA organic chemicals and petrochemical products are increasing by 25% in last 5 years. Tables 18-21 show that Saudi has a price advantage over the top suppliers of chemicals and petrochemicals to India.

Figure 13 shows country wise breakup of India’s imports in Chemicals and Petrochemicals. Supply of chemicals and petrochemicals is slightly concentrated, with top 5 countries accounting for half of the total imports.China is the major contributor to chemicals and petrochemicals import to India. Along with organic chemicals and fertilizers, India also imports inorganic chemicals and rare earth & radioactive compounds from China.

Figure 12: Chemicals and Petrochemicals Imports to India12

Figure 13: Chemicals and Petrochemicals Imports to India – by country13


2009 2010 2011 2012 2013

in billion SAR

Expa

ndin

g 20

13 im

port

s fu

rthe

r

Fertilizers

Polymers

Organic Chemicals

Inorganic Chemicals

1.1

1.8

2.6 3.0

2.50.6

4

1.3

81.3

11

1.3

11

0.9

7

2.4

4.4

4.8 4.8

45%

28%15%

12%3.8

0.71.9 1.50.3

44% Organic Chemicals

45% Organic Chemicals

21% Polymers

28% Polymers

14% Inorganic Chemicals

12% Inorganic Chemicals

18% Fertilizers

15% Fertilizer

3% Others


21%

18%

14%3%

44%

50% Others

23% China

7% KSA

7% USA

7% South Korea

6% Singapore

50%

23%

7%

7%

7%6%


Figure 14: Chemicals and Petrochemicals Imports to India from KSA14


14%

24%

9

3.4 Building MaterialsIn building materials, India imports electric wires, pipes & tubes, lifts and glass and ceramics. In the past 5 years, India’s imports of building materials have increased by 7% annually.To fuel the growth in India’s infrastructure sector, demand of building materials have increased steadily. While the growth in bars and rods have been slow, electric wires and pipes and tubes have witnessed a growth of 9% between 2009 and 2014 as shown in figure 15.

Figure 16 shows country wise breakup of India’s import in building materials. China is the major contributor to products imported in this segment. Along with iron and steel articles, India also imports cement & plaster, plastic pipes and tubes from China. India imports iron ore and glass and ceramics products from Japan.

Figure 15: Building Materials Imported by India15

32% Bars & Rods

4% Cement & Plaster

17% Electric Wires

4% Bricks

15% Metal Sheets

4% Glass & Ceramics

13% Pipes & Tubes

1% Paper Board

5% Paints & Dyes

5% Others

13%17%

15%

5%4%

4%1%

4% 5%

32%

Bars & Rods

Pipes & Tubes

Electric Wires

Others*

2009 2010 2011 2012 2013

in billion SAR

Expa

ndin

g 20

13 im

port

s fu

rthe

r

19

63

810

25

٢٣

75 ٢٩

92

٣٣

93

٣٢

83

١٠١٣ ١٣

١١1١

1٤ 1٤1٤

٣١ ٣٥ ٣٣ ٢٧




40% Others

25% China

11% Japan

10% South Korea

8% Germany

5% USA

1% KSA

Figure 16: Building Materials Imports to India by country16

40%

25%

11%

10%8%

5%1%

As shown in figure 17, KSA holds a small share in this segment. However, import of building materials produced in KSA is increasing at steady rate over the past 5 years.

35% Paints & Dyes

29% Bars & Rods

10% Metal Sheets

3% Pipes & Tubes

15% Glass & Ceramics

7% Cement & Plaster

1% Others29%

15%

10%

7%3% 1%

35%100% = ٤١٠.٧ million SAR

2009 2010 2011 2012 2013

in million SAR

Expa

ndin

g 20

13 im

port

s fu

rthe

r

Bars & Rods

Glass & Ceramics

Paints & Dyes

Others

٤٨295 ٤٧

379١٢٣

419

٨٧

411

٧٠658

4

٤

٦

٦٩ ٥٨ ٦٣

٨٤

32 ٢٥٩١١٩ ١٤٣

١١٩ ١١٨

٤٩٨

Figure 17: Building Materials Imports to India from KSA17

7%

9%

10

48% Fabrics

31% Wool

6% woolen

1% Carpets

14% Others

48%

58%

30%

7% 5%

31%

6%1%

14%

100% = ٢٢.٥ billion SAR

3.5 TextilesTextile is one of the fastest growing import segment. India import products spanning from cloths and fabrics to carpets to hand-woven tapestries. In the past 5 years India’s imports of Textiles have increased by 15% annually.Due to growing domestic market for imported clothing materials, demand of fabrics and cloths have increased steadily. Imports in both these categories have grown by 16%, higher than overall segment’s growth. Apart from fabrics and cloths, India also imports wool, carpets, animal yarn etc. as shown in figure 18.


Fabrics Others*Cloths

2009 2010 2011 2012 2013

in billion SAR

Expa

ndin

g 20

13 im

port

s fu

rthe

r

212 4

17 4

205

225

23

45

6 6 7

6 810 11 11

*Others include Animal yarn, cotton waste, footwear and headgears etc.

Figure 18: India’s Imports of Textiles18

Figure 19 shows country wise breakup of India’s import in textile segment. Supply for imported textile products is highly concentrated with China alone supplying 45% of total imports.Along with impregnated materials, India also imports textile articles, yarn and fabrics for industries from China. India primarily imports clothing, textile articles, rags, and floor coverings from USA and Australia.

45% China

5% USA

4% Bangladesh

3% Australia

3% Japan

0.2% KSA

40% Others

Figure 19: India’s Import of Textile Products by Country1٩

Figure 20: India’s Import of Textile Products from KSA20

100% = ٢٢.٥ billion SAR

40%

3%

4%

5% 45%

3%0.2%

As shown in figure 19, KSA holds a small share in this segment. Imports of woolen cloths and fabrics from KSA have increased at a CAGR of 33% in the past 5 years.

2009 2010 2011 2012 2013

in million SAR

Fabrics

Cloths

Wool

Others

Expa

ndin

g 20

13 im

port

s fu

rthe

r

٤

٤

٨١٢ ١٣

٢13

٣30

٥

39 ٥46

٣42

٦

١٨

١٤ ١٥

٢٤

١ ٥١٢ ١٤

٢

58% woolen

30% Cloths

7% Carpets

5% Fabrics

15%

33%

100% = 4٢.2 million SAR

11

51% Plastic Sheets & Films

31% Boxes & Cartons

8% Caps & Lids

5% Cans, Tanks & drums

5% Others

51%

31%

8%

5%5%


3.6 Packaging

In Packaging, India imports products ranging from plastic sheets and films to aluminum and cargo containers. Over the past 5 years India’s imports of packaging materials have increased by 13% annually.

Plastic Sheets & Films

Caps & Lids

Boxes & Cartons

Others*

2009 2010 2011 2012 2013

in billion SAR

Expa

ndin

g 20

13 im

port

s fu

rthe

r

*Others include sacks, bags, aluminum containers, cargo containers etc.

Figure 21: India’s Import of Packaging Materials21

21 Trade Map Database, International Trade Center22 Trade Map Database, International Trade Center

4.13.83.9

3.02.6

1.10.90.9

0.70.6

1.313.2

1.312.2

1.312.1

1.29.7

1.08.1

6.76.26.04.83.9

Figure 22 shows country wise breakup of India’s imports of packaging products. Supply of imported packaging products is fairly concentrated with top 5 countries contributing to close to 54% of total import demand.China is the major contributor to packaging products import to India. Along with containers, India also imports paper based products such as boxes and cartons from China. India imports packaging machinery from Germany and Italy.

46% Others

24% China

12% USA

8% Germany

6% South Korea

4% Italy

0.3% KSA

Figure 22: India’s Imports of Packaging Materials22


46%

24%

8%12%

6%

4%0.3%

13%

12

79% Plastic Sheets & Films

16% Caps & Lids

3% Boxes & Cartons

2% Cans, Tanks & drums

79%

16%

3% 2%

100% = 39.8 million SAR

As shown in figure 23, KSA holds a small share in this segment. Demand for KSA’s packaging material is increasing over the last 5 years especially for plastic sheets and films, which have witnessed growth of more than 50% during this period.


Plastic Sheets & Films

Caps & Lids

Boxes & Cartons

Others

2009 2010 2011 2012 2013

in million SAR

Expa

ndin

g 20

13 im

port

s fu

rthe

r

Figure 23: Packaging Imports to India from KSA23

12

5

11

27

33

29

241

25

251

30

263

61

39

312919

95

6%

13

Currently the import tariffs are governed by the Export Import (EXIM) policy of 2009-2014. India’s import tariffs are relatively high in agricultural sector compared to international standards. For non-agricultural goods, India has made considerable progress in restructuring tariffs. The Indian customs classification on tariff items follow the Harmonized Commodity Description and Coding System (Harmonized System or HS). It uses 6 digits HS codes to identify import items.

India has several trade agreements with many of the surrounding countries that grants them with more preferential tariff treatments. It has to be stressed that those agreements have been notified to the World Trade Organization. The list below which was obtained from the International Trade Center and represents the current active trade agreements of India as follow:

Appendix

Appendix Trade Agreements

14

Table 1: Trade agreements

Tariff Preferential Agreements Countries

Preferential tariff for Afghanistan Bilateral

Preferential tariff for GSTP countries

Mozambique, Nicaragua, Nigeria, Pakistan, Peru, Philippines, Qatar, Romania, Serbia, Montenegro, Singapore, Sri Lanka, Sudan, Tanzania, United Republic of Thailand, Trinidad and Tobago, Tunisia, Uruguay, Venezuela, Viet Nam, Zimbabwe

Preferential tariff for SAFTA(LDC) countries Bangladesh, Bhutan, Maldives, Nepal

Preferential tariff for Bangladesh Bilateral

Preferential tariff for APTA countries Bangladesh, China, Republic of Korea, Sri Lanka

Preferential tariff for GSTP(LDC) countries Bangladesh, Benin, Guinea, Haiti, Mozambique, Sudan, United Republic of Tanzania

Preferential tariff for Bhutan Bilateral

Preferential tariff for Least Developed CountriesCambodia, Ethiopia, Lao People's Democratic Republic, Madagascar, Malawi, Mozambique, Rwanda, Samoa, Tanzania, United Republic of Uganda

Preferential tariff for Chile Bilateral

Preferential tariff for Mauritius Bilateral

Preferential tariff for Myanmar Bilateral

Preferential tariff for Nepal Bilateral

Preferential tariff for SAFTA countries Pakistan, Sri Lanka

Preferential tariff for Seychelles Bilateral

Preferential tariff for Singapore Bilateral

Preferential tariff for Sri Lanka Bilateral

Preferential tariff for Thailand Bilateral

Preferential tariff for Tonga Bilateral

import summary report india - saudiexports.sa · this report looks into the india’s non-oil...

Documents