india- china , world trade contribution

8/22/2019 india- china , world trade contribution

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A comparison of India and China in

terms of contribution of

international trade


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Indias total merchandise tradeincreased over two-fold from

US$312bn in FY2007 to US$792bn

in FY2013

Decline in exports during

2012/2013 due to decline inglobal import demand

Trade-GDP ratio increased from

32.7% inFY2007 to 43% in FY2013

Exports-GDP ratio increased from13.4% in FY2007 to 16.3% in

FY2013

Share of India in world

merchandise export1.6% in

2012; Rank19 (up from 26th in2007


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Asia

51%

Europe

19%

North

America

13%

Africa

10%

Latin

America4%

CIS &

Baltics

1%

Others

2%

India's Exports 2012-13(in %)

Source: MoCI


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54

38

34

30

24

20

17

16

15

14

0 20 40 6

China

UAE

Saudi Arabia

Switzerland

USA

Iraq

Kuwait

Qatar

Indonesia

Germany

36

3614

14

12

11

10

9

7

6

0 10 20 30 40

UAE

USA

Singapore

China

HongKong

Netherlands

Saudi Arabia

UK

Germany

Japan

Indian Exports FY 2013 US $ bn Indian Imports FY 2013 US $ bn

Source: MoCI


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155

62

33 31 3019 17 14 13 12

Indias Imports FY 2013

US $ bn

56

47

24

2114 14

10 97 7

Indias Exports FY 2013

US $ bn

Source: MoCI


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Exports Imports

China India China India

Merchandise 1 19 2 12

excluding EU 2 13 3 7

Services 5 8 3 7

excluding EU 3 5 3 5


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Oil Prices

Oil accounts for 30% of India's import bill, but the country produces only

25% of its domestic requirement.

Demand for oil continues to rise in a growing economy with annual

imports rising by 10% but domestic production up by only 2% over the

last seven years

Gold

India consumes a quarter of the global gold demand of 4,000 tonnes, and

spends about 12% of its import bill on the metal.

Despite a doubling of import duty on the metal recently, the purchase ofgold continues unabated: India imported a whopping 850 tonnes of the

yellow metal in 2012.

POLICIESExports, on the other hand, have slowed down, leading to the

deficit.

Led by burgeoning info-tech revolution at home, India's export of serviceshas grown at a rapid clip in the past decade.

But the global slowdown has hit service exports: $36bn (23.7bn) in the

last quarter, down from $37bn (24.3bn) in the same period the previous

year.

There has also been a marked decline in exports of engineering goods,

textiles and iron ore.India has financed the latest $33bn CAD by a combination of debt ($21bn)


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exports of iron ore are suffering

Allegations of corruption in the allocation of iron ore mines and slow regulatory

processes, including environmental clearances, have nearly crippled the industry.

In an ideal situation, either all ore available should be processed in the steel plants toenhance value added exports or a certain portion of ore should be allowed for

export.

There is also a case for curbing non-productive imports like gold.

Hiking import duty has not helped much because of Indians' insatiable craving for the

yellow metal.A public awareness programme against gold consumption

ndia needs to step up domestic energy production by pushing shale gas excavations,

new oil field explorations and renewable energy sources like wind.

Power outages are impacting growth:

Consumer confidence is low and could impact consumption:
http://www.businessinsider.com/indias-power-outages-2012-7http://www.businessinsider.com/indias-power-outages-2012-7

india- china , world trade contribution

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