Exports in India

Economic History of India

Mughal Empire 1525 – 1550 second largest economy in the world. GDP about 40 per cent that of China. 1550 – 1575 GDP about 50 per cent that of China. 1575 - 1600 The annual revenue of Emperor Akbar's

treasury was at £17.5 million

Contd….. 1650 - 1675 GDP - 90 per cent that of China 1625 - 1650 Emperor Shah Jahan's treasury reported annual revenues

exceeding £25 million and GDP - 80 percent that of China. 1650 - 1675 GDP - about 90 per cent that of China 1675 - 1700 Emperor Aurangzeb's exceeded £100 million in 1700 (twice

that of Europe then). India emerged as the world's largest economy followed by

China and France.

1700 - 1725 Collapse of the central authority of the

Mughal Empire and the resultant chaos triggered India's long but slow decline on the world stage

Nawabs, Marathas & Nizams 1725 – 1750 Mughals was replaced. China was the world's

largest economy followed by India and France. GDP - about 80 per cent that of China.

1750 - 1775 The Maratha empire expanded to almost 250

million acres while the Nizam's dominion expanded to almost 125 million acres.

GDP - about 70 per cent that of China.

British East India Company India's share of the world income went from

24.4% in 1700 comparable to Europe's share

of 23.3%, to a low of 3.8% in 1952

British Crown Rule 1850 – 1875 The GDP -30 per cent that of China British cotton

exports reach 55 per cent of the Indian market 1875 – 1900 GDP- 20 per cent that of the USA. The Crown treasury reported annual revenue of

£122 average annual growth of merely 0.1 per cent.

1925 - 1950

The GDP of India-7 per cent that of the USA.

Contd…..

Year GD P US Dollar Exchangein (Rs.)

1950 99,340 4.79

1955 108,730 4.79

1960 171,670 4.77

1965 276,680 4.78

1970 456,770 7.56

1975 832,690 8.39

Contd…..

Year G D P Exports

Imports US Dollar Exchange in (Rs.)

1980 1,380,334 90,290 135,960 7.86

1985 2,729,350 149,510 217,540 12.36

1990 5,542,706 406,350 486,980 17.50

1995 11,571,882 1,307,330 1,449,530 32.42

2000 20,791,898 2,781,260 2,975,230 44.94

Export in India

What do you mean by Exports ? Why Exports ?

Present situation

Introduction

Export VS GDP (exports have grown over 11% per annum while growth in GDP is about 5%)

Export and Domestic demand and supply.

Export and FDI

EXPORT items and its compositions

Primary (i) Agriculture

(ii) Mining (iii) Petroleum

Secondary (i) Food and beverages (ii) Textile (iii) Machinery & machine tools (iv) Transport equipment (v) Metal & metal products (vi) Electrical goods (vii) Chemical & chemical products(viii) Paper & paper products (ix) Rubber goods (x) Other Manufacturing

Contd…..

Tertiary (i) Telecommunication

(ii) Power generation (iii) Services

Another composition

Agricultural & Allied products Ores and minerals Manufactured goods Petroleum products Other commodities

Export items composition Agricultural Products Textiles and allied Products Chemical and allied Products Metals and Minerals Fish, Dairy and Animal Products Handicrafts Capital Goods Other Products Service export

Agricultural Products

Agricultural products (some facts)

Growth of India's agriculture sector during the 50 years of independence remain impressive at 2.7 % per annum

An impressive growth (increased around four times during the planned area of development from 51 million tons in 1950-51 to 199.1 million tonnes in 1997-98)

Accounts for employs around 65 % of the population.

The total turnover of Indian food market is approximately Rs.250000 crores (US $ 69.4 billion.

Contd…..

Presently - 2nd largest rice producer after China and the 3rd largest net-exporter after Thailand and Vietnam.

GDP contribution 30% in Nineties 17.6% in 2006

Agricultural products1. COFFEE, TEA, MATE AND SPICES. 2. RESIDUES AND WASTE FROM THE FOOD INDUSTRIES;

PREPARED ANIMAL FODER. 3. CEREALS. 4. EDIBLE FRUIT AND NUTS; PEEL OR CITRUS FRUIT OR

MELONS. 5. RUBBER AND ARTICLES THEREOF. 6. OIL SEEDS AND OLEA. FRUITS; MISC. GRAINS, SEEDS AND

FRUIT; INDUSTRIAL OR MEDICINAL PLANTS; STRAW AND FODDER.

7. TOBACCO AND MANUFACTURED TOBACCO SUBSTITUTES. 8. SUGARS AND SUGAR CONFECTIONERY. 9. EDIBLE VEGETABLES AND CERTAIN ROOTS AND TUBERS. 10. LAC; GUMS, RESINS AND OTHER VEGETABLE SAPS AND

EXTRACTS.

Agricultural Products( graphical representation)

agriculture products

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Future trends 1996-97 4911.61997-98 4992.11998-99 4462.551999-00 4566.772000-01 6178.52001-02 6354.842002-03 7583.482003-04 9338.092004-05 11983.562005-06 14732.982006-07 18251.222007-08 15242.412008-09 17064.736212009-10 18858.558892010-11 20714.98293

Future trendsagricultural products

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agricultural products

Textile and allied products

Textile and allied Products Exports increased from US$ 14 million (2004-05)

to US$ 17 million (2005-06) – 21.77 % increase. With continuing growth, the total exports has

increased to – US$ 19.62 billion (2006-07). Current share in world export of textiles – 3.5 - 4

%. Current share in world clothing export – 3 %. Major export market – Europe (22% share in

textiles & 43% share in apparel). Single largest buyer – US ( 10% share in textiles

and 32.65 share in apparel).

Contd….. Other major export markets include - UAE,

Saudi Arabia, Canada, Bangladesh, China, Turkey and Japan.

Largest export segment – Readymade Garments (45% share in textile exports and 8.25% share in India's total exports).

Exports of readymade garments - expected to US$ 14.5 billion with a cumulative annual growth rate of 18-20%.

Indian Leather Exports

India is the largest livestock holding country - 21% large animals and 11% small animals

A source for 10% world leather requirement About 2.50 million workforce (30% women) Annual production value is over U$ 4 billion Annual export value is over U$ 2 billion Export growth CAGR 8.20% (2000-04) Promising technology inflow and FDI High priority to occupational safety and work

environment Compliance to environmental standards Immense potential for future growth (domestic as well

as export)

Textiles products composition ARTICLES OF APPAREL AND CLOTHING ACCESSORIES,

NOT KNITTED OR CROCHETED. COTTON. ARTICLES OF LEATHER,SADDLERY AND

HARNESS;TRAVEL GOODS, HANDBAGS AND SIMILAR CONT.ARTICLES OF ANIMAL GUT(OTHR THN SILK-WRM)GUT.

OTHER MADE UP TEXTILE ARTICLES; SETS; WORN CLOTHING AND WORN TEXTILE ARTICLES; RAGS

CARPETS AND OTHER TEXTILE FLOOR COVERINGS. CARPETS AND OTHER TEXTILE FLOOR COVERINGS. SILK KNITTED OR CROCHETED FABRICS. Leather goods

Textiles products (graphical representation)

textiles and allied product

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textiles and allied product

Future Trends…1996-97 8563.841997-98 8646.311998-99 8049.421999-00 8632.862000-01 9941.662001-02 9176.522002-03 10970.922003-04 12828.222004-05 18148.932005-06 25902.952006-07 32153.562007-08 28035.562008-09 28923.0922009-10 32151.1162010-11 35547.22

Future trendstextiles

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textiles

Product-wise Export Share Commodities 2005-06 (Million US$)Readymade Garments 6038.69Cotton Textiles 3290.31Man-made Textiles 1948.72Wool & Woolen Textiles 66.57 Silk Textile 406.82 Total 11751.11Add handicraft, Coir & Coir Manufacturers and JuteTotal 13065.24

Metals and Minerals

Metals and Minerals 89 minerals

4 fuel minerals 11 metallic 52 non-metallic 22 minor minerals

India is the world's largest producer of mica blocks and mica splittings.

India ranks third rank among the chromite producers of the world

India ranks 3rd in production of coal & lignite and barytes .

Contd….. India ranks 4th in iron ore India ranks 6th in bauxite and

manganese ore 10 in aluminium and 11 th in crude steel

in the World

Metals and Minerals IRON AND STEEL ARTICLES OF IRON OR STEEL ORES, SLAG AND ASH. MINERAL FUELS, MINERAL OILS AND

PRODUCTS OF THEIR DISTILLATION; BITUMINOUS SUBSTANCES; MINERAL WAXES.

ALUMINIUM AND ARTICLES THEREOF. SALT; SULPHUR; EARTHS AND STONE;

PLASTERING MATERIALS, LIME AND CEMENT. ARTICLES OF STONE, PLASTER, CEMENT,

ASBESTOS, MICA OR SIMILAR MATERIALS. COPPER AND ARTICLES THEREOF.

Metals and Minerals exportmetals and minerals

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metals and minerals

Future trends1996-97 3315.291997-98 3362.191998-99 2994.251999-00 3377.762000-01 4151.542001-02 4128.052002-03 4938.942003-04 5754.852004-05 6950.42005-06 8800.662006-07 10392.122007-08 9245.252008-09 9995.5132009-10 10966.442010-11 11967.32

Future Trends (graphical representation)

metals and minerals

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metals and minerals

Chemicals and allied products

Chemicals and allied Products

7 % of the Indian GDP Worth of Indian chemicals industry

during 2005-06 was US$30.59 Growing at an average rate of 12.5% The industry presently produces around

70,000 commercial products, which range from toiletries and cosmetics, to plastics and pesticides.

Indian Chemical Sector

Chemical Products Composition ORGANIC CHEMICALS PHARMACEUTICAL PRODUCTS TANNING OR DYEING EXTRACTS; TANNINS AND THEIR

DERI. DYES, PIGMENTS AND OTHER COLOURING MATTER; PAINTS AND VER; PUTTY AND OTHER MASTICS; INKS.

MISCELLANEOUS CHEMICAL PRODUCTS. SOAP, ORGANIC SURFACE-ACTIVE AGENTS, WASHING

PREPARATIONS, LUBRICATING PREPARATIONS, ARTIFICIAL WAXES, PREPARED WAXES, POLISHING OR SCOURING PREP.

FERTILISERS. INORGANIC CHEMICALS; ORGANIC OR INORGANIC

COMPOUNDS OF PRECIOUS METALS, OF RARE-EARTH METALS, OR RADI. ELEM. OR OF ISOTOPES.

Graphical representationchemicals and allied products

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chemicals and allied products

Future trends

1996-97 2657.581997-98 3074.131998-99 3033.61999-00 3278.242000-01 4107.52001-02 4160.082002-03 4974.932003-04 5911.652004-05 7959.452005-06 9112.772006-07 11031.532007-08 9634.692008-09 10757.232009-10 11773.242010-11 12848.12

Future trendschemical products

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chemical products

Handicrafts

Handicrafts (Gems and jewellery)

leading foreign exchange earner US$ 13.5 billion 11 % in the 5 year period employment to more than 1.3

million people directly and indirectly supported by Government policies

and the banking sector (50 banks providing about US$ 3 billion credit to the Indian diamond industry )

Handicrafts and Gifts highly labor intensive and

decentralized as the second largest employment-

generating sector after agriculture offers employment to over 6 million

artisans a perfect example of assimilation

between the traditional designs and modern techniques

Handicraft products composition

NATURAL OR CULTURED PEARLS PRECIOUS OR SEMIPRECIOUS

STONES PRE.METALS,CLAD WITH

PRE.METAL AND ARTICLES,COIN. HANDICRAFTS AND GIFTS

Handicrafts (graphical representation)

handicrafts ( Gems and Jewellery)

0.002,000.004,000.006,000.008,000.00

10,000.00

12,000.0014,000.0016,000.0018,000.0020,000.00

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handicrafts ( Gems andJewellery)

Future trends

1996-97 4771.721997-98 5147.571998-99 5954.151999-00 7583.642000-01 7427.52001-02 7339.952002-03 9092.262003-04 10761.552004-05 14436.222005-06 15857.962006-07 18889.742007-08 20034.082008-09 19855.972009-10 21700.622010-11 23554.22

14012.85

Future trends (graphical representation)

FUTURE TRENDS

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Fish, Dairy and Animals Products

Fish, Dairy and Animal products

FISH AND CRUSTACEANS, MOLLUSCS AND OTHER AQUATIC INVERTABRATES.

DAIRY PRODUCE; BIRDS' EGGS; NATURAL HONEY; EDIBLE PROD. OF ANIMAL ORIGIN, NOT ELSEWHERE SPEC. OR INCLUDED.

ANIMAL OR VEGETABLE FATS AND OILS AND THEIR CLEAVAGE PRODUCTS; PRE. EDIBLE FATS; ANIMAL OR VEGETABLE WAXEX.

MEAT AND EDIBLE MEAT OFFAL. RAW HIDES AND SKINS (OTHER THAN

FURSKINS) AND LEATHER

Fish, dairy and Animal Products

fish, dairy and animals product

0.001,000.002,000.003,000.004,000.005,000.006,000.007,000.008,000.009,000.00

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fish, dairy and animals product

Future trends…

1996-97 1840.971997-98 1915.911998-99 1818.341999-00 2060.032000-01 2691.622001-02 2776.992002-03 3189.822003-04 4076.852004-05 5265.712005-06 6494.62006-07 7881.552007-08 6770.772008-09 7563.3532009-10 8348.4732010-11 9151.087

Future trends fish,dairy and animals

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Capital Goods

Capitals Goods NUCLEAR REACTORS, BOILERS,

MACHINERY AND MECHANICAL APPLIANCES; PARTS THEREOF.

ELECTRICAL MACHINERY AND EQUIPMENT AND PARTS THEREOF; SOUND RECORDERS AND REPRODUCERS, TELEVISION IMAGE AND SOUND RECORDERS AND REPRODUCERS,AND PARTS.

VEHICLES OTHER THAN RAILWAY OR TRAMWAY ROLLING STOCK, AND PARTS AND ACCESSORIES THEREOF.

Capital Goodscapital goods

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capital goods

Future Trends

1996-97 2807.831997-98 2850.51998-99 2558.561999-00 2743.842000-01 3691.092001-02 3552.232002-03 4533.362003-04 5456.652004-05 7700.242005-06 8792.242006-07 11002.362007-08 9327.152008-09 10412.892009-10 11524.172010-11 12669.26

Future Trends capitals good

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capitals good

Others products MAN-MADE STAPLE FIBRES. MAN-MADE FILAMENTS. PLASTIC AND ARTICLES THEREOF. OPTICAL, PHOTOGRAPHIC CINEMATOGRAPHIC MEASURING,

CHECKING PRECISION, MEDICAL OR SURGICAL INST. AND APPARATUS PARTS AND ACCESSORIES THEREOF;

PAPER AND PAPERBOARD; ARTICLES OF PAPER PULP, OF PAPER OR OF PAPERBOARD.

GLASS AND GLASSWARE. PRINTED BOOKDS, NEWSPAPERS, PICTURES AND OTHER

PRODUCTS OF THE PRINTING INDUSTRY; MANUSCRIPTS, TYPESCRIPTS AND PLANS.

CLOCKS AND WATCHES AND PARTS THEREOF. BEVERAGES, SPIRITS AND VINEGAR. TOYS, GAMES AND SPORTS REQUISITES; PARTS AND

ACCESSORIES THEREOF.

Other productsothers product

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Future Trendsother products

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other products

Service industry…

Service industry.. Indian software exports were a mere US $4

millions in 1980 and rose to US $27.7 millions in

US $128 millions in 1990 US $12200 millions in 2003-04. Growing at a fast pace and now contributes

more than 50% to the GDP India's share in global trade in services was

about 1.3%. India’s share of consultancy exports is about

0.5% of global trade in services.

Conclusion.. More no.of items included in duty drawback

scheme. Automobile sector. Foreign direct investment Engineering goods Cashews Services export SEZ Petroleum products