Discuss the major trends in India's foreign trade. Also list the major products that India trades with other countries.
Discuss the major trends in India's foreign trade. Also list the major products that India trades with other countries.
India's share in world trade in 2003 was absolutely low i.e., just 0.8% as compared to those of other developing countries such as China (5.9%), Hong Kong (3.0%), South Korea (2.6%), Malaysia (1.3%), Singapore (1.9%) and Thailand (1.1%). India's share in world merchandise exports started rising fast since 2004, reached 1.3% in 2009 and 1.5 in 2010. It increased to 1.9% in the first half of 2011, mainly due to the relatively higher Indian export growth of 55% compared to the 23.1% export growth of the world.
Trends in India's Foreign Trade in Goods
Volume of Trade: Share of foreign trade in the country's Gross Domestic Product (GDP) has considerably increased from 14.6% in 1990-91 to 24.1% in 2003-04. India's total merchandise exports were Rs 606 cr. in 1950-51 which increased to Rs 293367 cr. in 2003-04, representing an increase of over 480 times over the last five decades. During the last decade, India's exports and imports registered a five to seven fold increase from US $ 44.6 billion and US $ 251.1 billion and US $ 369.8 billion in 2010-11 respectively.
While the Compound Annual Growth Rates (CAGR) of India's exports and imports (in US dollar terms) were 8.2% and 8.4% respectively in the 1990s, they increased to 19.5% and 25.1% during 2000-01 to 2008-09. Total imports which stood at Rs 608 cr.in 1950-51 increased to Rs 359108 cr.in 2003-04 thus registering a growth of about 590 times during the same period.
Composition of Trade: Composition wise, textiles and garments, gems and every engineering products and chemicals and related products and agricultural and allied products are India's major items of India's exports. Great changes in the sectoral composition of India's export basket were seen in the 2000s decade.
The share of petroleum crude and products increased by 11.8 percentage points during the 10-year period from 2000-01 to 2009-10 and further increased by 4.8 percentage points from 2009-10 to the first half of 2011-12. The share of the other two sectors, i.e., manufactures and primary products fell almost proportionately by 11.6 and 1.1 percentage points respectively 2000-01 to 2009-10.
Although in overall terms India accounts for just above 1% of world exports, in many individual product items such as tea, pearls, precious and semi-precious stones, medicinal and pharmaceutical products, rice, spices iron ore and concentrates, leather and leather manufactures, textile yarns fabrics, garments and tobacco its share is much higher and ranges between 3% to 13%.
India even holds the distinct position of being the largest exporter in the world in select commodities such as basmati rice, tea, and ayurvedic products. As far as imports are concerned, products like crude oil and petroleum products, capital goods (i.e., machinery), electronic goods, pearl, precious and semi-precious stones, gold, silver and chemicals constitute major items of India's imports. India's trade in services has also grown manifold over the years.
India's share in world trade in 2003 was absolutely low i.e., just 0.8% as compared to those of other developing countries such as China (5.9%), Hong Kong (3.0%), South Korea (2.6%), Malaysia (1.3%), Singapore (1.9%) and Thailand (1.1%). India's share in world merchandise exports started rising fast since 2004, reached 1.3% in 2009 and 1.5 in 2010. It increased to 1.9% in the first half of 2011, mainly due to the relatively higher Indian export growth of 55% compared to the 23.1% export growth of the world.
Trends in India's Foreign Trade in Goods
Volume of Trade: Share of foreign trade in the country's Gross Domestic Product (GDP) has considerably increased from 14.6% in 1990-91 to 24.1% in 2003-04. India's total merchandise exports were Rs 606 cr. in 1950-51 which increased to Rs 293367 cr. in 2003-04, representing an increase of over 480 times over the last five decades. During the last decade, India's exports and imports registered a five to seven fold increase from US $ 44.6 billion and US $ 251.1 billion and US $ 369.8 billion in 2010-11 respectively.
While the Compound Annual Growth Rates (CAGR) of India's exports and imports (in US dollar terms) were 8.2% and 8.4% respectively in the 1990s, they increased to 19.5% and 25.1% during 2000-01 to 2008-09. Total imports which stood at Rs 608 cr.in 1950-51 increased to Rs 359108 cr.in 2003-04 thus registering a growth of about 590 times during the same period.
Composition of Trade: Composition wise, textiles and garments, gems and every engineering products and chemicals and related products and agricultural and allied products are India's major items of India's exports. Great changes in the sectoral composition of India's export basket were seen in the 2000s decade.
The share of petroleum crude and products increased by 11.8 percentage points during the 10-year period from 2000-01 to 2009-10 and further increased by 4.8 percentage points from 2009-10 to the first half of 2011-12. The share of the other two sectors, i.e., manufactures and primary products fell almost proportionately by 11.6 and 1.1 percentage points respectively 2000-01 to 2009-10.
Although in overall terms India accounts for just above 1% of world exports, in many individual product items such as tea, pearls, precious and semi-precious stones, medicinal and pharmaceutical products, rice, spices iron ore and concentrates, leather and leather manufactures, textile yarns fabrics, garments and tobacco its share is much higher and ranges between 3% to 13%.
India even holds the distinct position of being the largest exporter in the world in select commodities such as basmati rice, tea, and ayurvedic products. As far as imports are concerned, products like crude oil and petroleum products, capital goods (i.e., machinery), electronic goods, pearl, precious and semi-precious stones, gold, silver and chemicals constitute major items of India's imports. India's trade in services has also grown manifold over the years.
