direction of india's export
TRANSCRIPT
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CHAPTER IIIGROWTH, COMPOSITION
AND DIRECTION OFINDIAS EXPORTS
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Chapter - III
Growth, Composition and Direction ofIndias Exports
3.1 Introduction
Structure of any countrys exports is important to understand the
salient features of its export sector and level of development. In context of
theory of structural change, for example, if a country has majority of
primary commodities in its export basket then it is considered that
country is basically a developing economy and vice versa if export basket
contains bulk of capital goods. And structure of exports has been
undergoes significant changes with the process of economic growth and
development. Growth of exports is also very important both for the
developing and developed economies as developing countries need of
foreign exchange earnings to compensate the imports bill of capital
goods. Whereas, developed countries need markets for the sale of over-
production of manufactured capital and consumer goods. Large and
increasing share in world exports of manufacturers signifies the
mounting importance of the country in the world economy. Coupled with
capital outflows, it is a clear cut indicator of establishment of hegemonic
power as was empirically seen to have happened in the history as Great
Britain emerged as an imperial power during the nineteenth century and
United States as neo-imperial power after the World War I. Besides,
China can be seen accumulating hegemonic powers in the contemporary
world economy.
The growth of a countrys export is determined by many internal
and external factors (Singh, 1964). Besides internal factors, any change
in a countrys exports is at least partially attributable to changes in worlddemand for those products. All these factors have an important bearing
on a countrys export performance in so far as they affect the demand for
its exports. Commodity composition and market composition of exports
are crucially important for the countries that are adopting outward-
oriented export promotion development strategy as a tool of planned
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economic development in the contemporary global economy. Given
commodity composition and market distribution of exports, export based
outward-oriented strategy can give desirable effects in this era of
globalistion which is characterised by unilateralism at domestic level in
majority of the economies of the world; and multilateralism and
regionalism at global level. Given the commodity composition, a country
may fail to maintain its share in world market, i.e. exports may not keep
pace with the expansion in world trade, if demand for its exports is
growing relatively slowly, although the country has some sort of
comparative advantage in its respective exportables. This would be true
in case of the country whose exports are concentrated in primary
products, raw materials and other commodities, demand for which is
income inelastic and hence grow slowly. In these circumstances, an
unchanging commodity composition may well become a constraint on
export growth. Similarly, the market distribution of export can also
affects a countrys exports. A country may fail to maintain its share in
world market if most of its exports go to markets which are relatively
stagnant. Conversely, exports may increase faster than world average if
they are sold in rapidly growing markets (Nayyar, 1976).
For India, the period since 1991 has been characterised by
substantial changes in economic environment both domestically and
externally. Economic environment in India has undergone qualitative
changes as the import substitution inward oriented development strategy
has been replaced with export promotion outward oriented strategy with
implementation of economic reforms in every sector of economy and
particularly in external sector. Global economic environment has alsobeen characterised by increasing popularity of economic liberalization,
multilateralism and regionalism which has changed economic order
instituted during the post World War II period. All these changes created
an export friendly environment. No doubt, this economic transformation
of global economic order with special emphasis on free trade has
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a = constant
r = Growth rate
The growth rates are computed for the whole period i.e. from 1991-
92 to 2005-06 and for some of the sub-periods by deflating the actual
value of various variables at constant prices with the base year 1999-
2000 by using export unit value index. Composition and the direction of
exports are analyzed by using simple percentage and simple average
methods. The results related to composition and direction of exports
have presented by taking the triennium averages of the study period.
While examining the composition of Indias exports at SITC digit 1, 2 and
3, results are presented at four points of time i.e. 1992, 1996, 2002 and
2006 and in the same manner the share of Indian exports in world
exports has been shown respectively.
To examine the commodity and geographic concentration of
exports Hirschman-Gini's Index has been used. Let total export earnings
of the year t be denoted by Xt and export earnings from each commodity
by Xit, where I go from 1 to n. Then the Hirschman-Gini's Index of
commodity and geographic concentration (HGCt) is defined as under:
Hirshman Ginis Coefficient () = 2=1 The highest value of the coefficient is 1. This occurs only when
total export earning comprises of only one commodity. The lowest value
is 0, which occur when all commodity have equal importance in the total
exports earning. Within these values closer to 1, the higher is the
concentration and vice versa. Besides Gross, Net and Income terms oftrade are also calculated for the overall exports during the concerned
period.
3.3 Indian Economy and India's External Sector: A Brief Overview
Before presenting the picture of growth and structure of Indias
exports, it will be relevant to introduce with the changes which occurred
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in the various macro-economic variables of the economy during the study
period. This section presents a brief overview of Indian economy and also
describes salient feature of its external sector. Table 3.1 reveals various
macro-economic variables of Indian economy during the period from
1991-92 to 2005-06.
Indian economy grew rapidly during the study period as Gross
Domestic Product (GDP) at factor cost increased from Rs. 11,60,304
crore in 1991-94 (T.A) to Rs. 24,09,209 crore in 2003-06 (T.A) with
growth rate of 6.18 per cent per annum. Almost all the GDP variables
registered a growth of more than 6.00 per cent during the same period.
However, the growth was found to be higher during the sub-period 2001-
06 as compared to other two sub-periods i.e. 1991-96 and 1996-2001.
Per Capita GNP and NNP at factor cost have been raised to Rs. 21,921
and Rs. 19,500 in 1991-94 (T.A) from Rs. 13,094 and Rs. 11,803
respectively in 2003-06 (T.A) with growth rate of more than 4.00 per
cent. Gross capital formation (8.68 per cent) and net capital formation
(9.46 per cent) has also recorded high rate of growth as both the
components have increased sharply. However, growth of these two
components has been outstanding during the last sub-period 2001-06.
Thus, introduction of economic reforms has positively influenced the
economic performance of Indian economy during the concerned period as
indicated by the macro-economic variables. However, its implications
with regard to poverty, unemployment, and inclusive growth have been
serious in nature and scope.
Table 3.2 highlights the structure of Indian economy by major
components of Gross Domestic Product (GDP) during the period 1991-2006. Data shows that all the major sectors of Indian economy registered
manifold increase in their values (in Rs. Crore at constant prices) during
the study period. Agriculture and allied activities, industry and service
sectors have grown respectively at 2.74 per cent, 6.04 per cent, and 7.85
per cent per annum. Thus, growth of agriculture and allied sector has
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been remained to be lowest as compared to industrial and service
sectors, and it clearly highlights the neglect of primary sector activities
during the concerned period. Service sector recorded highest growth
during the period and have been able to gain from the ongoing process of
globalization, liberalization and privatization. Industrial sector has been
able to maintain its share of approximately 20.00 percent since 1991-94
(T.A). In case of service sector, actual growth has been found to be much
higher, but agriculture sector has not been able to achieve its potential
growth during the concerned period. Among the major sectors of the
economy, trade, hotel, communications and transport sector registered
highest growth of 8.68 per cent followed by finance and insurance
services (7.01 per cent) and construction (7.61 per cent) sectors.
Data clearly exhibits the structural change in Indian economy
during the study period as share of agriculture and allied activities sector
has consistently declined from 30.34 per cent to 20.49 per cent; share of
industrial sector increased slightly from 19.31 per cent to 19.47 per cent;
and share of service sector fabulously increased from 50.35 per cent to
60.05 per cent during the period under study. Instantly increasing
importance of service sector in Indian economy has emerged out as very
peculiar phenomena which had not been seen in any developed
economies and even not explained by the theories of structural change as
economy experienced instant expansion of service sector and
manufacturing sector considered as the backbone of an economy in the
economic theory proved unable to establish a solid base in the economy
during the same period.
Table 3.3 presents a brief overview of Indias external sectorduring the period from 1991-92 to 2005-06. It is very clear that Indias
external sector has remained comfortable during the post-reforms period
as Indias balance of payment position remained to be favourable during
the study period. Overall balance of payments (BOP) increased to Rs.
1,08,599 crore in 2003-06 (T.A) from Rs. 11,058 crore in 1991-94 (T.A).
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Export from India and import to India have also registered manifold rise
during the same period, but rise in imports was found to be much larger
than the rise in exports, which is clear from the continuously rising trade
deficit from Rs. 12,152 crore to Rs. 1,48,272 crore during the period
under study. In this way, Indias current account remained in deficit up
to 1997-2000 (T.A). However, after this period it turned out to be
positive, primarily due to sharp rise in the invisibles, which have grown
up from Rs. 5941 crore to Rs. 150962 crore with rate of growth of 23.37
per cent per annum during the same period. Picture of capital account of
BOP has been quite satisfactory as it was found to be positive
throughout the study period. It is primarily due to the fact that India has
been able to invite huge amount of foreign investment which have
increased from Rs. 5,106 crore in 1991-94 (T.A) to Rs. 63,227 crore in
2003-06 (T.A) with growth rate of 22.79 per cent per annum. Apart from
the foreign investment, it was partly subject to growth of loans and
banking capital which respectively rose to Rs. 21,126 and Rs. 16,872 in
2003-06 (T.A) from Rs. 5,685 crore and Rs. 6,868 crore in 1991-94 (T.A)
respectively. External sector of Indian economy was the focal stress point
of the 1991 balance of payment crisis. Perhaps for that reason it saw the
most far reaching reforms and successful response to reform initiatives
(Acharya, 1999). Thats why Indias balance of payments positions
remained comfortable during reform period, otherwise BOP in India
whenever viewed from the national income measurement side, constitute
a very feeble position and continuous story of deficits if we take the
whole period stretching from the beginning of the planned economic
development (Chatterjee and Karmakar, 2002)..Table 3.4 highlights the growth of foreign exchange reserves during
the period 1991-92 to 2005-06. The value of foreign exchange reserves
has increased quit sharply from Rs. 38,338 crore in 1991-94 (T.A) to
Rs. 5,95,211 crore in 2003-06 (T.A) with a growth rate of 23.34 per cent
(in Rs. terms) and from $ 19,153 million in 1991-94 (T.A) to $ 2,03,048
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millions in 2003-06 (T.A) with a growth rate of 15.45 per cent. Growth of
foreign exchange reserves was found to be much higher during the period
1991-96 than in other two sub-periods and it has turned out to be
negative during the period 2002-02 to 2005-06. Among SDRs, gold and
foreign currency assets, growth of foreign currency assets has registered
much higher growth than others (both in Rs. and US $ terms) during the
study period. Thus, it can be said that India has successfully been able
to remove the uncertainties regarding the availability of foreign exchange
reserves during post-reforms period.
Table 3.5 demonstrates the various indicators of Indias external
sector during the period 1991-92 to 2005-06. Data exhibit that opening
up of economy has raised Indias share in world merchandise trade from
0.57 per cent in 1991-92 to 1.22 per cent in 2005-06. Indias share in
world merchandise exports and imports has increased from 0.56 per cent
and 0.58 per cent to 1.07 per cent and 1.35 per cent respectively during
the same period. It is to be noted that Indias share in world imports have
increased more sharply than that of exports. Declining export-import
ratio (exports as percentage of imports) from 92.12 in 1991-92 to 69.12
in 2005-06 indicates towards increasing difficulties to finance the ever
increasing import bill and has also been responsible for continuously
increasing trade deficit. This also reflects a continual tendency for the
economys resource utilization to exceed the amount of resource
generated within the economy (Kaundal, 2006). Trade-GDP ratio, export-
GDP ratio and import-GDP ratio have sharply risen from 14.80 per cent,
6.90 per cent and 7.90 per cent to 32.40 per cent, 13.00 per cent and
19.40 per cent respectively during the same period. Thus, increasingtrade-GDP ratio, export-GDP ratio and import-GDP ratio, indicates
toward the mounting importance of trade for Indian economy at one side;
and also highlights rapidly increasing openness and integration of Indian
economy to global economy during the study period.
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However, the merchandise trade balance has shown a negative
picture if it is seen in the context of domestic economic performance, but
the indicators of service trade exhibited quite optimist trends during the
study period as invisible receipts as percentage of GDP raised to 11.10
per cent from 3.60 per cent and invisible payments as percentage of GDP
raised to 5.90 per cent from 2.90 per cent. The ratio of current receipts to
current payments has jumped up from 94.30 per cent in 1991-92 to
103.80 per cent in 2001-02, However, it further decreased to 94.80 per
cent in 2005-06. Thus, rise in invisible receipts was found to be much
higher than that of the increase in invisible payments, which further
resulted in positive current account since 2001-03 (T.A). Even current
account balance has turned out to be positive of 0.70 per cent in 2000-
01 which was in deficit of -0.30 per cent in the initial year. Indias
current account indicators have registered outstanding performance as
they were found to be positive throughout the period under study.
Foreign investment as percentage of GDP has increased to 2.60 per cent
from 0.10 per cent and foreign investment as percentage of exports
climbed up to 24.00 per cent from 0.70 per cent during the period under
study. Import cover of foreign exchange reserves rose to 11.60 months
from 5.30 months during the same period.
Table also describes behavior of debt indicators during the period
from 1991-92 to 2005-06. The data show that the debt stock as
percentage of GDP has slipped down to 17.20 per cent from 28.70 per
cent. Concessional debt as percentage of total debt has decreased from
45.90 per cent to 17.20 per cent, but short term debt as percentage of
GDP has increased from 10.20 per cent to 14.10 per cent by declining to3.60 per cent in 2001-02. Declining burden of debt service was found to
be the most outstanding feature during the period as it was as high as of
35.30 per cent in 1991-92 and squeezed down to 9.90 per cent in 2005-
06. Therefore, foreign debt indicators reveal desirable performance
during the study period. Thus, it can be concluded that post-reforms
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period has generated many beneficial effects to improve the performance
of Indias external sector that was quite poor in the pre-reforms period.
3.4 Growth of India's Exports: Annual Patterns
The trends that emerged in Indias exports during the post-reforms
and post-WTO period have been examined thoroughly in the foregoing
tables.
Table 3.6 brings out the growth ofIndias exports (at constant prices
1999-2000) during the period 1991-92 to 2005-06. Table highlights that
Indias total trade increased from Rs.1,50,211 crore in 1991-92 to Rs.
2,85,698 crore (1.9 times) in 1995-96; from Rs. 3,08,447 crore in 1996-
97 to Rs. 4,43,928 crore (1.4 times) in 2001-02; and from Rs. 5,38,089
crore in 2003-03 to Rs. 8,45,318 crore (1.6 times) in 2005-06. Value of
total trade increased from Rs. 1,50,211 crore in 1991-92 to Rs. 8,45,318
crore (5.6 times) in 2005-06. Indias exports increased from Rs. 71,993
crore in 1991-92 to Rs. 1,32,667 crore (1.8 times) in 1995-96; from Rs.
1,42,194 crore in 1996-97 to Rs. 2,04,283 crore (1.4 times) in 2001-02;
and from Rs. 2,48,553 crore in 2003-03 to Rs. 3,45,459 crore (1.4 times)
in 2005-06. Value of exports increased from Rs. 71,993 crore in 1991-92
to Rs. 3,45,459 crore (4.6 times) in 2004-05. Indias imports increased
from Rs. 78,219 crore in 1991-92 to Rs. 1,53,031 crore (1.9 times) in
1995-96; from Rs. 1,66,252 crore in 1996-97 to Rs. 2,39,645 crore (1.4
times) in 2001-02; and from Rs. 2,89,536 crore in 2003-03 to Rs.
499858 crore (1.7 times) in 2005-06. Value of imports increased from Rs.
78,219 crore in 1991-92 to Rs. 4,99,858 crore (6.4 times) in 2005-06.
Indias trade deficit increased from Rs. 6,226 crore in 1991-92 to Rs.
20,364 crore (1.3 times) in 1995-96; from Rs. 24,058 crore in 1996-97 toRs. 35,362 crore (1.5 times) in 2001-02; and from Rs. 40,983 crore in
2003-03 to Rs. 1,54,399 crore (3.76times) in 2005-06. Thus, trade deficit
increased from Rs. 6,226 crore in 1991-92 to Rs. 1,54,399 crore (24.8
times) in 2005-06.
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Table 3.7 depicts the growth of Indias exports vis--vis imports and
total trade during the period 1991-92 to 2005-06. Indias total trade
recorded growth of 11.87 per cent during the whole study period. Indias
exports grew at 11.51 per cent, whereas Indias imports registered a
growth of 12.14 per cent during same period. The data clearly highlight
the impact of East Asian crisis on Indias merchandise trade sector as
the growth of exports (8.68 per cent), imports (8.85 per cent) and total
trade (8.79 per cent) has been found to be quite lower during the sub-
period 1996-2001 as compared to other two sub-periods i.e. 1991-1996
and 2001-2006. Besides, growth of imports has been found to be higher
than that the growth of Indias exports during the whole study period.
Even after the revival of East Asian crisis, Indias imports has registered
much higher growth of 21.45 per cent as compared to the export growth
of 13.55 per cent during the period 2001-02 to 2005-06. Hence,
widening trade deficit indicates that growth in the value of exports from
India had been recorded to be on lower side as compared to the growth in
the value of Indias imports, which is not up to the mark as during the
special emphasis was put on export promotion. However, the level of
growth of exports has been significant and could not be ignored in the
context of increasing needs of imports for a rapidly growing economy, but
even then it demands special attention so that the economy would come
out of the chronic imbalance at merchandise trade ever since the
beginning of the planning process in the country.
Table 3.8 shows Indias exports vis--vis World exports (at constant
prices) during the period 1991 to 2006. World exports and Indias exports
respectively have increased from US $ 3183.26 million and US $ 15.94
million in 1991 to US $ 4971.24 million (1.56 times) and US $ 31.45
million (1.97 times) in 1997 respectively and further it rose to US $
9472.89 million (2.97 times) and US $ 95.52 million (5.99 times) in 2006.
Thus, Indias percentage share in world exports has increased from 0.56
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per cent in 1990 to 0.63 per cent in 1997 and further to 1.07 per cent in
2006. Further, Indias exports experienced the growth of 11.66 per cent
that was much higher than that growth of 7.32 per cent of world export
during the period 1991-2006. It is interesting to note that Ind ias exportsregistered rapid growth that was almost double of world export growth
during the various sub-periods except the sub-period of 1996-2000. In
fact, the impact of the East Asian crisis has been evident as Indias
export growth has declined to 8.96 per cent, which was slightly higher
than world export growth (8.46 per cent) during sub-period 1996-2000.
India's export growth has been mainly attributed to the rapid growth of
world export and exchange rate depreciation during 1991-95 (Marjit and
Chaudary, 1997 and Srinivasan, 1998). The decline in growth rate of
Indias exports during the second half of 1990s (1996-2000) was mainly
attributed to East Asian crisis, which has put a strain on India's exports
not only by shrinking world demand but by also adversely affecting
international competitiveness of India's exports due to sharp depreciation
of East Asian currencies (Kumar, 1998). The nominal exchange rates of
East Asian competitors (notably Thailand, Malaysia, Philippines and
Indonesia) underwent substantial depreciation during the crisis period
(Acharya, 2002) and thus resulted deceleration in export growth.
Table 3.9 reveals growth of Indias exports vis--vis selected
countries (at constant prices) during the period 1991 to 2006. Indias
export growth has been recorded very high during the period as
compared to other selected giant exporters of world. Among the selected
exporters in the world export market, on the basis of exports growth,
India was found to be at 3rd place during 1991-2006, 7th place in 1991-
96, again 7th position during 1996-2000 and 6th during 2001-06. Thus, it
can be said that Indias export growth was very consistent and less
fluctuating as compared to other selected exporters. In the context of
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phenomenal growth of world exports, growth performance of Indias
exports has remained to be outstanding as it had registered much higher
growth than that of the growth of world exports and highest among the
selected giant exporters in world export market except China during the
study period.
3.5 Composition of Exports
A preliminary idea of the changes in the commodity composition of
exports can be obtained by examining the changing shares of each
commodity in total exports. Table 3.10 traces the percentage
contribution of Indias principal exports to total earnings by dividing
overall exports into four broad groups namely: (i) Primary Products; (ii)
Manufactured goods; (iii) Petroleum products and (iv) Others. Exports of
Primary Products are further divided into three categories, i.e.
agriculture and allied products, iron ores, and others. Similarly,
manufactured exports are also divided into seven categories: (i) leather &
manufactures; (ii) chemicals and related products; (iii) engineering goods;
(iv) textile and textile products; (vi) gems and jewellery; (vii) handicrafts;
and (viii) other manufactured goods.
Table 3.10 shows that relative share of primary products fell from
22.04 per cent in 1991-94 (T.A) to 15.87 per cent in 2003-06 (T.A). This
sharp decline has been due to rapid decrease in share of agricultural and
allied exports in the countrys overall exports. Contrary to primary
exports, relative share of manufactured exports slightly rose from 74.74
per cent in 1991-94 (T.A) to 78.05 per cent in 1997-00 (T.A), but
decreased to 73.01 per cent in 2003-06 (T.A). The share of petroleum
products in total exports earnings stood up considerably from 2.23 per
cent in 1991-94 (T.A) to 8.42 per cent 2003-06 (T.A). This may be due to
the sharp rise in the prices of these products especially in the global
crude market, which reflects itself in the prices of the manufactures and
petroleum products. If we see within primary products group, share of
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agriculture and allied products in overall export earnings decreased
rapidly from 17.65 per cent in 1991-94 (T.A) to 10.62 per cent in 2003-
06 (T.A). As the same time, share of iron and ore in total export earning
has also declined from 4.39 per cent in 1991-94 (T.A) to 2.74 per cent in
1997-2000 (T.A) that again increased to 4.53 per cent during 2003-06
(T.A). The export growth of primary products was found to be 8.11 per
cent during the study period, however, the growth of manufactured
exports and petroleum product exports reported quite high of 11.38 per
cent and 24.17 per cent respectively compared to primary products
exports. The ores and minerals export grew at 12.16 per cent, almost half
of petroleum product export growth during the study period. Meanwhile,
agricultural and allied products exports grew at 6.68 per cent which was
found to be lowest among all other groups in export composition. Looking
at export growth during different sub-periods, petroleum products
experienced sharp fluctuation in its growth rate. However, the sub-period
1996-2000 was not good in terms of export growth as all the broad
commodity groups registered low growth. Even, primary and agricultural
commodities experienced negative export growth of -1.93 per cent and -
2.33 per cent respectively during the same period. Further, all the
commodities showed good recovery and experienced healthy export
growth except agricultural and allied products that remained at the low
level of 4.40 per cent during the sub-period of 2001-06. Hence, it can be
concluded that performance of primary exports particularly of
agricultural and allied products exports has been poor as compared to
the export growth of manufactured and petroleum products during the
study period. It was justified with regard to the support provided asmanufactured exports have been able to draw the benefits of foreign
technology imports and investments.
To make the picture clearer, a further detailed breakdown of above
classification is provided in Tables 3.11, 3.12 and 3.13. The relative
shares of tea, tobacco, cashew, oil meals, marine products which have
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impact of East Asian crisis has been quite evident during the sub-period
1996-2000 as majority of agricultural exports recorded negative growth
rates (Table 3.11). Moreover, only the wheat, processed fruits, etc., and
meat & meat preparations exports realized double-digit growth during
the period. Among the remaining exports rice and fruits & vegetables
grew at higher pace and all the remaining export items realized very low
growth during the same period. Therefore, it is held that majority of
agricultural and allied exports have experienced deceleration in growth,
which resulted in the decline in the relative share of agricultural and
allied exports in overall export earnings during study period.
Table 3.12 reveals the relative share of various exports items
within iron and ore exports. Among total iron and ore exports, shares of
iron and ore declined slightly from 54.54 per cent in 1991-94 (T.A) to
36.09 per cent in 2000-03 (T.A), but increased rapidly to 57.91 per cent
in the subsequent period. The relative share of mica reported a
continuous decline from 1.22 per cent in 1991-94 (T.A) to 0.51 per cent
in 2003-06 (T.A). The growth of exports of iron and ore and mica was
found to be 11.94 per cent and 4.06 per cent respectively during the
whole study period, i.e. from 1991-92 to 2005-06. The growth of export
within iron and ore was found to be quite fluctuating during the different
sub-periods. iron ore and mica experienced negative growth rate of -1.75
per cent and -12.09 per cent respectively during the sub-period 1991-95
and positive growth rate of 61.67 per cent and 4.06 per cent respectively
during the sub-period of 2001-06. Iron and ore export discovered very
high growth during the sub-period 2001-06. Also the other itemswithin
iron ore too contributed significantly at 18.04 per cent per annum duringthe same sub-period and resulted in an increase in share of ores and
mineral products groups in overall exports during the study period.
Although the share of manufactured goods in total exports
remained fluctuating, but decreased moderately over the period (Table
3.13). The changes within this commodity classification are very
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interesting. Share of leather and leather manufactures, textile and textile
products and handicrafts exports fell sharply from 9.57 per cent, 37.75
per cent, and 2.08 per cent in 1991-94 (T.A) to 4.06 per cent, 23.77 per
cent, and 0.76 per cent in 2003-06 (T.A) respectively. The relative share
of chemicals and related products, engineering goods and Gem & jewelry
increased fastly from 15.05 per cent, 19.36 per cent, and 15.25 per cent
in 1991-94 (T.A) to 20.11 per cent, 28.03 per cent, and 21.96 per cent in
2003-06 (T.A) respectively. Within manufactured products, gems and
jewellery, engineering goods and chemicals and chemicals related
products registered export growth of 16.21 per cent, 15.31, and 14.77
per cent respectively during the study period. However, the growth of
exports of leather and handcrafts remained at lower level of 4.52 per cent
and 4.36 per cent respectively during the same period. Moreover, leather
products after gaining the export growth of 9.09 per cent in 1991-95
sub-periods had slipped to very low growth of 0.66 per cent during the
sub-period 2001-06. The handicrafts products exports, after gaining
healthy growth of 16.17 per cent during sub-period 1991-95, slipped
down to negative growth rate of -17.95 per cent during the sub-period
2001-06. However, engineering goods exports experienced healthy growth
rate of 22.49 per cent during the same period. Thus, almost all the
export items in this group registered double-digit growth due to which
this broad product has been able to maintain more than one-third of its
share in overall export earnings during the study period. Leather (4.52
per cent) and textile (8.11 per cent) exports experienced lower growth
amongst manufactured exports and thus there was a rapid decline in
their relative shares in overall export earnings. It is held that thepersistence of the MFA quota has imposed constraints on textile exports
and thus responsible for relative decline in growth rate vis--vis non-
quota sectors (Chakraboty and Chakraboty, 2005).
Table 3.14 traces the composition of Indias export at aggregate
level of SITC 1 digit and disaggregates level of SITC 2 digit level and also
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reveals their performance in world exports by highlighting the major
trends at various points of time since 1992. The composition of Indias
export both at aggregate (SITC Digit 1) and disaggregate level (SITC Digit
2) depicts significant changes during the study period. At aggregate level,
food and live animals (SITC-0), beverages and tobacco (SITC-1),
manufactured goods (SITC-6), miscellaneous manufactured articles
(SITC-8) and commodities and transactions not classified by kind (SITC-
9) realized quick decline in their contribution to total exports. Contrary to
this, the product groups crude materials (SITC-2), mineral fuels,
lubricants and related materials (SITC-3), chemicals (SITC-5) and
machinery and transport equipments (SITC-7) registered sharp increase
in their contribution in total exports during the period from 1992 to
2006, whereas the share of animals and vegetables oil and fats (SITC-4)
remained almost as same as in the initial year. Meanwhile, crude
materials (SITC-2) and mineral fuels (SITC-3) had registered an increase
in their contribution from 5.07 per cent and 2.81 per cent in 1992 to
7.01 per cent and 14.87 per cent respectively in 2006. The share of
chemicals (SITC-5) and machinery (SITC-7) which has recorded 7.06 per
cent and 7.00 per cent in 1992 increased to 11.85 per cent and 11.18
per cent respectively in 2006. On the other side, food and live animals
(SITC-0) and beverages and tobacco (SITC-1) experienced a sharp decline
from 14.71 per cent and 0.93 per cent in 1992 to 7.63 per cent and 0.33
per cent respectively in 2006. The product groups namely manufactured
goods (SITC-6) (40.33 per cent) and miscellaneous manufactured articles
(SITC-8) (20.09 per cent) jointly contributed approximately 60 per cent of
Indias total exports in 1992 which quickly declined and reached at 45per cent level in 2006 (i.e. 30.52 per cent and 15.15 per cent
respectively). In case of commodity groups namely animals and
vegetables oil and fats (SITC-4) and commodities and transactions not
classified by kind (SITC-9), the decline in their relative share was found
to be smoother as compared to the others.
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At disaggregate level, in case of food and live animals (SITC-1), the
sub groups, viz. fish and fish preparations (SITC-1), fruit and vegetables
(SITC-1), coffee (SITC-07) and feed-stuff etc. (SITC-08) has registered a
decline in their share in total exports of India, from 3.21 per cent, 2.35
per cent, 3.02 per cent and 2.89 per cent in 1992 to 1.39 per cent, 1.35
per cent, 1.05 per cent and 0.98 per cent in 2006. cereals (SITC-04) and
sugar (SITC-06) commodities realized a moderate decline in their share in
total exports. Only the live animals (SITC-00) and meat (SITC-01) have
slightly increased their contribution in total exports in the same group.
Almost all the commodities in the crude material group (SITC-2)
registered an increase in their contribution to total export of India during
the study period. Among the commodities in mineral fuels etc., the
materials product group (SITC-3), petroleum and petroleum product
(SITC-33) have realized fabulous increase from 2.57 per cent to 14.87 per
cent in total exports of India. Among the product group chemicals (SITC-
5), the commodities namely chemical elements (SITC-51), crude
chemicals (SITC-52), medicinal and pharmaceuticals (SITC-54), plastic
material (SITC-58) and chemical materials (SITC-59) reported consistent
rise during the concerned period. In manufactured goods group (SITC-6),
leather etc. (SITC-61), non-metallic minerals manufacturers (SITC-66)
had experienced a steep decline from 3.01 per cent, 14.14 per cent, and
15.90 per cent in 1992 to 0.87 per cent, 6.97 per cent and 9.80 per cent
respectively in 2006. All the remaining exports in this group realized a
decline in their contribution to total exports. Exports of textile yarn etc.
(SITC-65) showed dramatic decline during this period from 14.14 per
cent to 6.97 per cent. All the commodities in the machinery andtransport equipment (SITC-7) registered an increase in their contribution
to total export of India during the study period. In the product group
SITC-8, clothing (SITC-84) and footwear (SITC-85) also had experienced
consistent decline in contribution to exports of India from 15.01 per cent
in 1992 to 7.59 per cent in 2006.
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Thus, the commodities which experienced high growth in
percentage contribution during the study period were petroleum and
petroleum products (SITC-33) (from 2.57 per cent to 14.73 per cent),
metalliferous ores and metal scrap (SITC-28) (from 2.35 per cent to 3.92
per cent), chemical elements and compounds (SITC-51) (from 2.20 per
cent to 4.89 per cent), iron and steel (SITC-67) (from 2.55 per cent to
5.93 per cent), non-ferrous metals (SITC-68) (from 1.02 per cent to 3.34
per cent), machinery other than electric (SITC-71) (from 2.77 per cent to
4.26 per cent), electrical machinery, apparatus and appliances (SITC-72)
(from 1.40 per cent to 3.24 per cent), transport equipments (SITC-73)
(from 2.83 per cent to 3.68 per cent) and miscellaneous manufactured
articles (SITC-89) (from 2.49 per cent to 5.47 per cent). On the other,
several commodities experienced quick decline in percentage
contribution during the study period.
In the context of Indias share in world exports, at aggregate level
(SITC Digit 1), only two commodity groups i.e. food and live animals (1.12
per cent) and manufactured goods classified chiefly by materials (SITC-6)
(1.50 per cent) had more than one per cent share in world exports in the
year 1992. However, there were six commodity groups including the
above mentioned two commodity groups which have recorded more than
one per cent share in world exports were food and live animals (from 1.12
per cent in 1992 to 1.71 per cent in 2006), crude materials (SITC-2) (from
0.77 per cent in 1992 to 2.36 per cent in 2006), mineral fuels, lubricants
and related materials (SITC-3) (from 0.24 per cent in 1992 to 1.28 per
cent in 2006), chemicals (SITC-5) (from 0.46 per cent in 1992 to 1.24 per
cent in 2006), manufactured goods (SITC-6) (from 1.50 per cent in 1992to 2.41 per cent in 2006), miscellaneous manufactured articles (SITC-8)
(from 0.87 per cent in 1992 to 1.54 per cent in 2006). However, the
commodity groups like crude materials (SITC-2) and mineral fuels,
lubricants and related materials (SITC-3) had registered a sharp increase
in their share in world exports.
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At disaggregate level (SITC Digit 2), many commodities show a
large share in world exports. The non-metallic mineral manufactures
(SITC-66) (from 4.63 per cent in 1992 to 6.53 per cent in 2006), textile
yarn (SITC-65) (from 2.57 per cent in 1992 to 4.27 per cent in 2006),
unmanufactured textile fibers (SITC-26) (from 0.54 per cent in 1992 to
5.90 per cent in 2006), crude fertilizers and crude minerals (SITC-27)
(from 1.64 per cent in 1992 to 4.51 per cent in 2006), feed stuff for
animals (SITC-08) (from 3.32 per cent in 1992 to 3.77 per cent in 2006),
leather etc. (SITC-61) (from 3.98 per cent in 1992 to 3.72 per cent in
2006), clothing (SITC-84) (from 2.48 per cent in 1992 to 3.45 per cent in
2006) and metalliferous ores and metal scrap (SITC-28) (from 1.73 per
cent in 1992 to 3.13 per cent in 2006) have recorded a significant rise in
their share in world exports.
Table 3.15 highlights the trends in Indias exports at disaggregate
level (SITC Digit 3) during the period from 1992 to 2006. The two
commodity groups, i.e. pearls and precious and semi-precious stones
(SITC-667), and Clothing (SITC-841) which had quite high share in
Indias overall exports had experienced a steep decline in their
contribution from 15.32 per cent and 15.28 per cent in 1992 to 8.70 per
cent and 7.86 per cent respectively in 2006. Some other commodity
groups, viz. manufactures of leather (SITC-612), articles of rubber (SITC-
629), textile yarn and thread (SITC-651), cotton fabrics (SITC-652), textile
fabrics (SITC-653) and fish (SITC-031) also registered a decline in their
share in Indias exports during the study period. Interestingly, share of
commodity group namely petroleum products (SITC-332) in Indias total
exports increased fabulously from 2.62 per cent in 1992 to 14.85 percent in 2006. The other commodities groups that had experienced
significant increase in their shares in Indias exports were iron ore and
concentrates (SITC-281), organic chemicals (SITC-512), ingots and other
primary forms of iron (SITC-672), universals, plates and sheets of iron
(SITC-674), tubes, pipes and fittings of iron ore (SITC-678), copper (SITC-
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682), machinery and appliances non-electric (SITC-719), electric power
machinery and switch (SITC-722), road motor vehicles (SITC-732), and
jewelry (SITC-897). In the nutshell, out of total 67 product groups at
SITC digit 3 level, only 27 product groups realized upward shift in their
shares, and other remaining product groups more or less were
characterised by downward trend in their share in Indias total exports
during the study period.
All the commodity groups at SITC digit 3 level recorded increase in
their share in world exports except the commodities such as tea and
mate (SITC-074), manufactures of leather (SITC-612), cotton fabrics
(SITC-652), aluminum (SITC-684), road vehicles etc. (SITC-733) and
travel goods (SITC-831). The important commodity groups of Indias
exports which have large share in world exports in 2006 were rice (SITC-
042) (14.91 per cent), tea and mate (SITC-074) (13.18 per cent), spices
(SITC-075) (14.54 per cent), cotton (SITC-263) (13.93 per cent), iron ore
and concentrates (SITC-283) (12.01 per cent), pearls and precious and
semi-precious (SITC-667) (14.79 per cent), and jewelry (SITC-897) (12.11
per cent). Out of them, tea and mate (SITC-074) had registered a decline
in its share (from 17.20 per cent to 13.18 per cent) in the world exports,
whereas rice (SITC-042) (from 8.03 per cent to 14.91 per cent), cotton
(SITC-263) (from 1.37 per cent to 3.93 per cent), iron ores and
concentrates (SITC-281) (from 6.04 per cent to 12.01 per cent) and
jewelry (SITC-897) (from 2.05 per cent to 12.11 per cent) had experienced
a sharp rise in their share in the world exports during the study period.
3.6 Direction ofIndias Exports
Table 3.16 outlines the region-wise directional changes in Indiasexports in terms of relative shares of the different export markets. As is
clear from the table, the relative share of OECD countries in total export
earnings declined steadily from 58.40 per cent in 1991-94 (T.A) to 44.85
per cent in 2003-06 (T.A). Among OECD countries, share of European
Union, and Asia and Oceania regions declined steadily whereas that of
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North America increased slightly over the same period. The relative
shares of Organization of Petroleum Exporting Countries (OPEC) and
Developing countries rose uniquely from 9.70 per cent and 22.99 per
cent in 1991-94 (T.A) to 15.18 per cent and 37.35 per cent in 2003-06
(T.A) respectively, whereas during the same period, the share of Eastern
Europe fell sharply from 6.61 per cent to 2.16 per cent. Among the
Developing Countries, the share of Asia region particularly of South
Asian Association for Regional Cooperation (SAARC) countries, Africa and
Latin America regions increased sharply over the period. Thus, the
direction of Indias exports moved toward the developing countries of
Asia, Africa, and Latin America.
Looking at Indias region-wise growth of exports, exports grew at
21.12 per cent towards Latin American countries, at 16.89 per cent
towards Africa, at 15.11 per cent towards Asia and at 15.82 per cent
towards OPEC. However, the growth of exports towards OECD, EU, North
America, and Asia and Oceania which was 14.88 per cent, 15.76 per cent
, 17.37 per cent and 10.99 per cent respectively during sub-period 1991-
96, have come down to 9.71 per cent, 12.33 per cent, 7.66 per cent and
3.92 per cent respectively during the sub-period 2001-06. Meanwhile,
India experienced quite high growth of exports towards OECD countries
as it was 1.91 per cent during sub-period 1991-96 but has risen to 14.33
per cent in the subsequent sub-period 2001-06. Thus, growth of exports
to developing regions was found to be much higher than that of the
developed ones during the study period. Moreover, the data clearly
indicates that developing countries of Asia, Africa, Latin America and
OPEC countries emerged as most favoured destinations for exports fromIndia throughout the period under study as export growth to these
regions remained quite high as compared to developed regions of OECD
(9.19 per cent) and Eastern Europe (2.68 per cent) during the whole
study period.
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Table 3.17 provides the directional changes in Indias exports in
terms of relative shares of the different export markets by countries.
Among the developed countries, the relative share of all the countries
except Canada has declined during the study period. Even increase in
relative share of Canada was found to be quite moderate. However, U.S.A
has gained its share from 17.76 per cent in 1991-94 (T.A) to 21.30 per
cent in 1997-00 (T.A), but further it declined to 17.10 per cent in 2003-
06 (T.A), even then it remained at the top among all other export
partners in terms of relative share in Indias total exports. Germany(7.24
per cent to 4.15 per cent), Japan (8.27 per cent to 3.69 per cent) and
Russia (5.12 per cent to 0.86 per cent) have dramatically lost their
shares during the study period.
Among the developing countries, except Saudi Arabia, Tanzania,
Thailand, and Zambia, relative shares of all the countries have
experienced upward trend during period under study. Relative share of
United Arab Emirates (U.A.E), Peoples Republic of China and Singapore
in total export earnings increased considerably from 4.58 per cent, 0.76
per cent, and 2.91 per cent in 1991-94 (T.A) to 8.39 per cent, 5.97 per
cent, and 4.16 per cent respectively in 2003-06 (T.A). The increase in the
relative shares of Hong Kong, Indonesia and Bangladesh was quite
moderate, i.e. from 4.39 per cent , 0.87 per cent and 1.89 per cent to
4.62 per cent, 1.57 per cent, and 2.10 per cent respectively over same
the period. U.A.E and China has emerged as number two and three
export destinations respectively during the period. The relative share of
Saudi Arabia, Tanzania, Thailand, and Zambia declined from 2.15 per
cent, 0.31 per cent, 1.36 per cent, and 0.14 per cent in 1991-94 (T.A) to1.85 per cent, 0.22 per cent, 1.34 per cent, and 0.06 per cent in 2004-06
(T.A) respectively during the period. The collective share of selected
developed countries in Indias overall export earning has experienced
strong decline from 59.50 per cent to 40.97 per cent. Contrary to this,
share of selected developing countries, has increased sharply from 25.63
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per cent to 40.61 per cent over the study period, which clearly highlights
the increasing importance of developing countries as export partners.
Table 3.18 brings out unit value index, quantum index and terms
of trade during the period from 1991-92 to 2005-06. By assuming base
year 1991-92, indices of terms of trade have been worked out. The unit
value index of exports has increased to 233.56 per cent in 2006-07,
whereas unit value index of imports after reaching its ever highest value
of 214.49 per cent in 2004-05, slided down to the level of 196.70 per cent
in 2006-07. Thus, increase of unit value index of exports experienced
sharper rise than unit value index of imports during the study period
and this is quite encouraging phenomenon for Indian economy in terms
of developments in merchandise trade. In the same way, net terms of
trade turned out to be favourable to Indias exports as net terms of trade
index has jumped to 118.74 per cent in 2005-06 from the base year.
However, net terms of trade index remained fluctuating throughout the
study period, but terms of trade remained favourable except during
2002-03 (94.09 per cent) and 2004-05 (92.36 per cent). However, the
quantum index of exports registered less increase (558.01) than
quantum index of imports (897.81 per cent) during the same period. It is
noticeable here that the quantum index of imports experienced sharp
increase after 2004-05 (488.16 per cent) and reached to almost its
double level of 897.81 per cent in 2006-07. But, quantum index which
had little difference from quantum index of imports in 2004-05 (430.97
per cent) experienced less increase in its value in 2006-07 (558.01 per
cent). Gross terms of trade, based on the values of export and import
quantum index, also turned out to be favourable to Indias exports asgross terms of trade index has jumped to 160.90 per cent in 2005-06
from the base year value. Moreover, the income terms of trade has also
been found to be favourable as income terms of trade index has reached
to the level of 662.60 per cent in 2006-07 from its base in 1991-92.
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Table 3.19 elaborates the values of commodity concentration and
geographic concentration index of Indias exports during the period
1991-92 to 2005-06. It is evident from the table that the commodity
concentration index ranged from 0.65 to 0.71 during the study period.
India has been unable to diversify its export basket as the value of
commodity concentration index has remained almost constant, i.e. 0.66
with very moderate changes during the mid 1990s. Contrary to
commodity concentration, the value of geographic concentration index
decreased to 0.57 in 2006-07 from 0.63 in 1990-91, which is an
indicator of decreasing geographic concentration of exports. The
geographic concentration index ranged from 0.57 to 0.63 during the
same period. It is held that however, there was some sort of market
diversification in Indias export, but still exports have been concentrated
to a small number of markets during the study period. In the nutshell,
Indias exports have remained concentrated to a small number of
commodities and markets during the study period. It demands
diversification of exports and export destinations in order to make a dent
in the level of concentration in a meaningful manner.
Table 3.20 highlights the contribution of Special Economic Zones
(SEZs) to Indias Exports during the period from 2000-01 to 2005-06.
Data show that value of Indias overall exports and the value of export
form SEZs have increased fastly from Rs. 2,03,571 crore and Rs. 8,552
crore in 2000-01 to Rs. 4,56,418 crore and Rs. 22,840 crore in 2005-06.
Exports from SEZs have grown rapidly than that of the Indias total
exports. The growth rates of exports from SEZs and of Indias exports
were found to be 16.96 per cent and 12.47 per cent respectively duringthe same period. Thats why contribution of exports from SEZs in the
overall exports has increased to 5.00 per cent in 2005-06 from 4.20 per
cent in 2000-01. Hence, it clearly shows the positive impact of SEZs on
Indias export performance during the concerned period.
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3.7 Summing Up
Due to the implementation of economic reforms since 1991 and
Indias joining ofWorld Trade Organization (WTO) and acceptance of its
commitments since 1994, the export sector of the country responded
sharply and experienced several fundamental changes in terms of its
growth, composition, and direction. Over one and a half decade, Indian
economy grew rapidly at 6.18 per cent per annum and its external sector
has performed well during post-reforms period. Indias exports grew at an
average rate of 11.66 per cent per annum. In the context of phenomenal
expansion in world exports, this growth was relatively much higher and
consequently Indias share in world exports grew continuously
throughout the period under study. It was a distinct break from the past
stagnation in Indias export earnings. Moreover, growth performance of
Indias exports during the post-reforms period has been quite satisfactory
as compared to the world exports. The actual growth of exports was
found to be much higher than that of the potential export growth.
The performance of Indias agricultural exports has, however, been
not that satisfactory and their share in overall exports witnessed a
decline since 1991. Increasing share of petroleum products is a
tremendous achievement for Indias export sector and needs special
attention. In nutshell, no major change took place in the overall
composition of exports as manufactured exports have been unable to
raise their share in overall exports earnings. The petroleum exports has
achieved high growth and extended its contribution to total export and
absorb the declining share of agricultural exports.
There was a change in the commodity composition within thebroad commodity groups. All the exports recorded very high growth rate,
however growth was relatively low in case of agricultural exports. The
high growth of the petroleum and manufactured exports as compared to
agricultural exports clearly indicates that the effect of the economic
reforms remained limited to the former type of exports. The analysis of
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the composition at disaggregate level reveals that a small number of
product groups (SITC 2 and 3 digit) were able to increase their share in
the overall exports. The performance of Indias exports in the global
export markets clearly depicts that all the exports had performed quite
well as clearly indicated by their increasing market share in the
respective world exports.
The importance of developed countries as export destination for
Indias exports has rapidly declined and that of developing countries
increased during the study period. Developing countries of Asia, Africa
and Latin America, and OPEC countries emerged as strong markets for
Indian exports with their increasing contribution in total export earnings.
SAARC region too became important for Indian exports. Though the
share of U.S.A declined during the recent few years, but it remained
number one destination for Indian exports during the whole study
period. Having negligible share in Indias export earnings on the eve on
economic reforms, the share of U.A.E and China rose quite fabulously
and both the countries reached number second and third position
respectively in Indias overall exports during the study period. However,
India has been unable to make a strong dent in the concentration of its
exports in terms of commodities as well as export destinations. The
directional change towards developing countries can be considered as an
achievement of Indias exports sector during the study period.
The contribution of Special Economic Zones (SEZs) to Indias exports
has been increasing since 2000-01. Moreover, the terms of trade has been
turned out favourable to the country. However, the WTO has some serious
implications for Indias textile, leather, pharmaceuticals, and agriculturalexports especially in the developed countries markets. But liberalization of
developing economies has many desirable effects on Indian export sector
especially in terms of its growth. The MFA phase out period could positively
hit textile export positively. The newly emerged non-tariff trade barriers
worked as constraints to the exports, which are the outcomes of
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discriminating and biased behaviors of the developed nations which are
hurting the interests of the developing nations. Collective efforts by the
developing courtiers could remove discrimination and biased nature of
WTO policies and could reap beneficial effects on their external sectors as a
whole and especially on export sectors.
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Table 3.1: Macro-economic Aggregates of Indian Economy during the period 1991-92 to 2005-06
Value in Rs. Crore (at Constant prices 1999-2000) Growth Rates (Percentages)
Components/Year
1991-92to
1993-94
1994-95to
1996-97
1997-98to
1999-00
2000-01to
2002-03
2003-04to
2005-06
1991-92to
2005-06
1991-92to
1995-96
1996-97to
2000-01
2001-02to
2005-06GDP (at Factor Cost) 1160304 1402476 1679399 1961731 2409209 6.18 6.15 5.66 7.45
NDP (at Factor Cost) 1047509 1265778 1511061 1753061 2145420 6.05 6.12 5.47 7.34
GNP (at Factor Cost) 1144081 1386440 1665300 1941586 2388794 6.23 6.25 5.63 7.50
NNP (at Factor Cost) 1031286 1249742 1496962 1732917 2125005 6.10 6.22 5.43 7.39
GDP (at Market Prices) 1270642 1532107 1827174 2128165 2616578 6.10 6.03 5.68 7.60
NDP (at Market Prices) 1157847 1395409 1658836 1919495 2352789 5.97 5.99 5.51 7.52
GNP (at Market Prices) 1254419 1516071 1813075 2108020 2596163 6.14 6.12 5.65 7.65
NNP (at Market Prices) 1141624 1379373 1644736 1899351 2332374 6.01 6.08 5.47 7.57
Per Capita GNP at factor cost (Rs) 13094 14929 16937 18687 21921 4.28 4.10 3.68 5.87
Per Capita NNP at factor cost (Rs) 11803 13457 15226 16684 19500 4.16 4.08 3.48 5.75
Gross Domestic Capital Formation 267350 366387 448502 505717 797790 8.68 11.69 7.50 19.06
Net Domestic Capital Formation 154556 229688 280164 297047 534002 9.46 15.24 7.52 25.80
Source: Handbook of Statistics on Indian Economy, RBI (Various Issues)
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Table 3.2: Structure of Indian Economy (Components of Gross Domestic Product at Factor Cost) during the period 1991-92 to 2005-06
Value in Rs. Crore (at Constant prices 1999-2000) Growth Rates (Percentages)
Year1991-92
to1993-94
1994-95to
1996-97
1997-98to
1999-00
2000-01to
2002-03
2003-04to
2005-06
1991-92to
2005-06
1991-92to
1995-96
1996-97to
2000-01
2001-02to
2005-06
Agriculture & allied activities 351969(30.34)
395394(28.23)
430149(25.63
452539(23.10)
492233(20.49)
2.74 3.57 2.08 2.52
Agriculture 322071(27.76)
361860(25.84)
394379(23.50)
412952(21.09)
450330(18.74)
2.73 3.56 2.07 2.6
Industry 224060(19.31)
293031(20.87)
338441(20.18)
387080(19.73)
468898(19.47)
6.04 8.6 3.79 7.33
Mining & Quarrying 30312(2.62)
34912(2.49)
40368(2.41)
44364(2.26)
52127(2.17)
4.48 4.5 4.21 6.09
Manufacturing 166018(14.31)
223522(15.90)
256029(15.27)
296020(15.09)
362440(15.04)
6.36 9.46 3.44 7.76
Electricity, Gas & Water Supply 27730(2.39)
34597(2.47)
42044(2.50)
46697(2.38)
54331(2.26)
5.65 7.81 5.71 5.76
Services 876411(50.35)
1071075(50.90)
1366215(54.19)
1683167(57.16)
2172117(60.05)
7.85 6.68 8.16 9.35
Construction 104101(5.99)
116542(5.55)
142335(5.65)
171352(5.82)
239152(6.59)
7.01 3.65 7.73 13.22
Trade, Hotel etc. 324655(18.65)
424218(20.14)
539055(21.39)
683094(23.18)
931309(25.73)
8.98 8.76 7.72 11.12
Finance, Insurance etc Services**205020(11.77)
249827(11.88)
322937(12.81)
392668(13.33)
490109(13.55)
7.61 7.18 8.22 8.14
Community etc Services*** 242637(13.94)
280489(13.33)
361889(14.34)
436054(14.82)
511547(14.17)
6.66 4.67 8.95 5.87
GDP (at Factor Cost)1160304(100.00)
1402476(100.00)
1679399(100.00)
1961731(100.00)
2409209(100.00)
6.18 6.15 5.66 7.45
Note: *also includes Transport and Communications. **also includes Real Estate & Business Services. *** Social & Personal ServicesValues in Parenthesis are percentages.
Source: Handbook of Statistics on Indian Economy, RBI (Various Issues)
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Table 3.3: Indias Balance of Payment during the period 1991-92 to 2005-06
Value in Rs. Crore Growth Rates (Percentages)
Year/Item1991-92
to1993-94
1994-95to
1996-97
1997-98to
1999-00
2000-01to
2002-03
2003-04to
2005-06
1991-92to
2005-06
1991-92to
1995-96
1996-97to
2000-01
2001-02to
2005-06
1. Total Current Account (a+b) -6,211 -15,504 -19,334 11,829 2,691123.17 -29.37 12.20 -100.00
(i) Exports 56944 104668 146631 227092 38381611.51 16.12 8.68 13.55
(ii) Imports 69096 144348 210178 281555 53208812.14 22.12 8.85 21.45
a. Balance of Trade -12,152 -39,680 -63,547 -54,463 -148,272-12.52 -28.39 0.00 14.26
b. Invisibles 5,941 24,177 44,213 66,292 150,96223.37 43.55 4.23 7.44
2. Total Capital Account (a toe) 16,613 27,873 39,271 44,685 104,85311.15 8.39 -3.39 9.61
a. Foreign Investment 5,106 17,304 17,251 26,254 63,22722.79 150.03 1.39 8.91
b. Loans 5,685 11,500 14,424 2 21,126-51.59 7.89 -6.46 -100.00
c. Banking Capital 6,868 3,093 3,053 18,322 16,87226.43 -80.37 -85.51 -15.35
d. Rupee Debt Service -2,807 -2,912 -3,050 -2,508 -2,0577.12 1.86 1.62 -4.66
e. Other Capital 1,760 -1,111 7,594 2,615 5,68486.71 -82.22 1682.38 1.81
3. C. Errors & Omissions 656 407 952 -1,090 1,055-9.42 5815.62 26.47 -99.56
4. D. Overall Balance (1+2+3) 11,058 12,777 20,889 55,424 108,59998.63 -84.55 3.51 0.00
5. E. Monetary Movements -11,058 -12,777 -20,889 -55,424 -108,599-49.66 547.14 -3.39 0.00
Source: Directorate General of Commercial Intelligence and Statistics, Kolcutta.
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Table 3.4: Foreign Exchange Reserves (End of Financial Year) during the period 1991-92 to 2005-06
Periods
In Rupees crore In US Dollar million
SDRs Gold ForeignCurrency
Assets
Total SDRs Gold ForeignCurrency
Assets
Total
1991-92to
1993-94209 10794 27335 38338 72 3652 13567 19153
1994-95to
1996-97103 14656 68273 83032 30 4328 30110 36648
1997-98to
1999-0018 12975 126948 139941 4 3108 45278 49947
2000-01to
2002-0327 14788 258359 274237 5 3102 81247 86244
2003-04to
2005-0614 21192 568888 595211 3 4818 194064 203048
Growth Rates (Percentages)1991-92
To2005-06
-19.47 0.22 23.34 19.99 -22.43 -3.57 18.71 15.47
1991-92to
1995-96-11.49 6.91 38.36 29.12 -16.82 0.93 31.52 21.34
1996-97To
2000-0120.50 -7.32 17.49 14.55 9.90 -13.10 9.90 7.65
2000-02To
2005-0615.29 -2.42 -7.00 -6.91 12.29 -3.43 -7.96 -7.96
Source: Handbook of Statistics on Indian Economy,RBI (Various Issues).
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Table 3.5: Various Indicators of Indias External Sector during the period 1991-92 to 2005-06 (Percentages)
Component/s 1991-92 1995-96 2001-02 2005-06
Trade Share in World Merchandise Exports *0.56 0.68 0.77 1.07
Share in World Merchandise Imports* 0.58 0.74 0.77 1.35
Share in World Merchandise Trade* 0.57 0.71 0.77 1.22
Export/Imports 92.12 86.73 88.19 69.12
Export/Total Trade 47.95 46.45 46.86 40.87
Import/Total Trade 52.05 53.55 53.14 59.13
Exports/ GDP 6.90 9.10 9.40 13.00
Imports/GDP 7.90 12.30 11.80 19.40
Trade/GDP 14.80 21.40 20.12 32.40Invisibles
Receipts/ GDP 3.60 5.00 7.70 11.10
Payments/ GDP 2.90 3.40 4.60 5.90
Current AccountNet Current Account/ GDP 0.70 1.50 3.10 5.20
Current Receipts/ GDP 10.30 14.00 16.90 24.00
Current Receipts/Current Payments 94.30 88.80 103.80 94.80
Current Account Deficit /GDP -0.30 -1.60 0.70 -1.20
Capital Account Foreign Investment/ GDP 0.10 1.40 1.70 2.60Foreign Investment/ Exports 0.70 14.90 18.20 20.30
Import Cover of Reserves (in months) 5.30 6.00 11.50 11.60
Foreign Debt
Debt Stock/ GDP 28.70 30.8 22.5 17.2
Concessional Debt /Total Debt 45.90 45.3 35.4 28.6
Short term debt/Total Debt 10.20 4.3 3.6 14.1
Total Debt Service/GDP 35.30 25.9 16.6 9.9
Note: *Data related to these components have been related to Calendar years.
Source: Handbook of Statistics on Indian Economy,RBI (Various Issues)
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Table 3.6: Growth of Indias Exports, Imports and Total Trade (at constant Prices) during the period1991-92 to 2005-06
YearExports
(In Rs. Crore)Annual Change
Imports(In Rs. Crore)
Annual ChangeTotal Trade
(In Rs. Crore)Annual Change
BOT(In Rs. Crore)
1991-92 71993 -- 78219 -- 150211 -- -6226
1992-93 76934 6.86 90814 16.10 167748 11.67 -13880
1993-94 88863 15.51 93130 2.55 181993 8.49 -4267
1994-95 100961 13.61 109871 17.98 210832 15.85 -8911
1995-96 132667 31.40 153031 39.28 285698 35.51 -20364
1996-97 142194 7.18 166252 8.64 308447 7.96 -24058
1997-98 133323 -6.24 157995 -4.97 291319 -5.55 -24672
1998-99 137994 3.50 176087 11.45 314081 7.81 -38093
1999-00 159561 15.63 215237 22.23 374798 19.33 -55675
2000-01 197046 23.49 223473 3.83 420519 12.20 -26427
2001-02 204283 3.67 239645 7.24 443928 5.57 -35362
2002-03 248553 21.67 289536 20.82 538089 21.21 -40983
2003-04 263681 6.09 322769 11.48 586450 8.99 -59089
2004-05 309706 17.45 413447 28.09 723153 23.31 -103740
2005-06 345459 11.54 499858 20.90 845318 16.89 -154399
Average 174215 12.24 215291 14.69 389506 13.52 -41076
Source: Directorate General of Commercial Intelligence and Statistics, Kolcutta.
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Table 3.7: Growth of Indias Exports vis--vis Imports and Total Trade during the period 1991-92 to
2005-06.
. Period/
Sub-Periods
Indias
Exports
Indias
Imports
Indias
Total Trade
1991-1992to
2005-2006
11.51 12.14 11.87
1991-1992
to
1995-1996
16.12 22.12 19.28
1996-1997
to
2000-2001
8.68 8.85 8.79
2001-2002
to2005-2006
13.55 21.45 17.92
Note: Constant Prices using World Export Unit Value Index (IFS-IMF) at 2000 prices Value of Exports at Constant Prices is computed by taking 2000-01 prices asbase year. Note: Average Annual Growth Rates (AAGR) are computed atSource: Directorate General of Commercial Intelligence and Statistics, Kolcutta.
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Table 3.8: Indias Export vis--vis World Exports (at Constant Prices) during the period 1991 to 2006.
YearIndias
Exports*(In US $ Billions)
WorldExports
(In US $ Billions)
Share inWorld
Exports1991 15.94 3183.26 0.56
1992 17.29 3318.24 0.521993 20.02 3373.31 0.591994 22.55 3728.00 0.601995 25.20 4065.79 0.621996 27.79 4334.38 0.681997 31.45 4971.24 0.631998 31.83 5186.84 0.611999 34.74 5495.94 0.632000 42.38 6365.17 0.672001 45.17 6386.47 0.772002 51.80 6607.36 0.782003 55.00 6970.08 0.792004 65.74 7814.00 0.842005 81.62 8534.32 0.96
2006 95.52 9472.89 1.07Average Annual Growth Rates (AAGR)
1991-2006 11.66 7.32 -1991-1995 16.55 7.50 -1996-2000 8.96 8.46 -2001-2006 13.89 7.51 -Source: Handbook of Statistics on Indian Economy, RBI.
Direction of Trade Statistics Yearbook, IM F (Various Issues).
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Table 3.9: Growth of Indias Exports vis--vis Selected Countries (at Constant Prices) during the period1991 to 2006.
Country 1991-2006 1991-95 1996-2000 2001-2006
Developed Countries
Australia 6.17 (15) 7.19 (14) 4.91 (20) 9.93 (10)
France 5.18 (18) 4.61 (19) 6.21 (14) 2.56 (23)
Germany 6.73 (13) 4.95 (18) 5.95 (16) 7.99 (15)
Hong Kong 5.52 (16) 8.84 (10) 5.35 (18) 4.89 (18)
Italy 5.20 (17) 8.24 (11) 3.48 (22) 5.12 (17)
Japan 3.32 (21) 3.63 (20) 4.79 (21) 4.23 (19)
Netherlands 8.63 (9) 6.10 (17) 13.12 (5) 9.53 (11)
Russian Federation 11.92 (4) 20.05 (1) 6.73 (13) 20.95 (5)
United Kingdom 4.79 (19) 6.95 (15) 3.24 (23) 3.55 (21)
United States 4.78 (20) 6.84 (16) 6.12 (15) 3.38 (22)Developing Countries
Bangladesh 11.71(5) 11.12 (8) 17.84 (1) 14.05(7)
China PR 17.35 (1) 14.99 (4) 15.08 (2) 22.61 (3)
Egypt 13.41 (2) 1.72 (23) 12.17 (6) 23.13 (1)
India 12.21 (3) 12.61 (7) 12.00 (7) 16.79 (6)
Indonesia 6.56 (14) 7.81 (13) 7.15 (12) 10.71 (9)Korea, Republic of 8.58 (22) 14.49(5) 7.16 (11) 9.35 (13)
Malaysia 8.15 (10) 16.51(3) 8.95 (8) 7.08 (16)
Maldives 9.44 (7) 9.89 (9) 5.54 (17) 4.03 (20)
Saudi Arabia 9.29 (8) 3.22 (21) 13.38 (4) 22.29 (4)
Singapore 7.94 (12) 17.34 (2) 5.29 (19) 12.93 (8)
Thailand 8.05 (11) 14.27 (6) 8.12 (9) 9.46 (12)
United Arab Emirates 11.31 (6) 2.99 (22) 13.74 (3) 22.65 (2)
World 7.43 (24) 8.11 (12) 7.50 (10) 9.01 (14)Source: Direction of Trade Statistics Yearbook, IMF, Various Issues.
Figures in parenthesis are rank among the selected countries
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Table 3.10: Overall Composition of Indias Exports during the period 1991-92 to 2005-06 (In percentage)
Percent Share Growth Rates
Commodity1991-1994
1994-1997
1997-2000
2000-2003
2003-2006
1991-2006
1991-1995
1996-2000
2001-2006
I. Primary products 22.04 22.21 20.18 16.28 15.87 8.11 15.19 -1.93 12.71A. Agriculture and allied products 17.65 18.56 17.44 13.20 10.62 6.68 17.02 -2.33 4.40
B. Ores and minerals 4.39 3.65 2.74 3.08 5.26 12.16 7.80 0.29 37.78II. Manufactured goods 74.74 75.24 78.06 76.51 73.01 11.38 16.73 10.38 11.24III. Petroleum products 2.23 1.48 0.46 4.64 8.42 24.97 0.38 7.42 41.97IV. Others 1.05 1.06 1.30 2.57 2.70 21.88 20.14 35.58 13.43
Total Exports 100.0 100.0 100.0 100.0 100.0 11.51 16.12 8.68 13.55
Note: Value of Exports at Constant Prices is computed by taking 2000-01 prices as base year.
Source: Handbook of Statistics on Indian Economy, RBI.
Table 3.13: Share of Various Export Items within Manufactured Products during the period 1991-92 to 2005-06 (In
percentage)
Percent Share Growth Rates
Commodity1991-1994
1994-1997
1997-2000
2000-2003
2003-2006
1991-2006
1991-1995
1996-2000
2001-2006
A. Leather and manufactures 9.57 7.27 6.01 5.33 4.06 4.52 9.07 5.66 0.60B. Chemicals and related products 15.05 15.36 15.98 17.93 20.11 14.77 20.21 11.56 14.99C. Engineering goods 19.36 18.62 18.25 21.05 28.03 15.31 18.19 8.43 22.49D. Textile and textile products 37.75 34.60 33.84 30.77 23.77 8.11 15.22 8.61 2.05E. Gems and jewellery 15.25 21.19 22.79 21.95 21.96 16.21 18.34 15.36 10.84F. Handicrafts(excluding handmade carpets) 2.08 1.88 2.23 1.84 0.76 4.63 16.17 11.73 -17.95G. Other manufactured goods 0.94 1.09 0.90 1.13 1.32 15.05 31.11 9.67 16.26
Total Manufactured Exports 100.0 100.0 100.0 100.0 100.0 11.38 16.73 10.38 11.24
Note: Value of Exports at Constant Prices is computed by taking 2000-01 prices as base year.
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Table 3.11: Share of Various Export Items within Agricultural & Allied Products during the period 1991-92 to 2005-06 (In percentage)
Percent Share Growth Rates
Commodity1991-1994
1994-1997
1997-2000
2000-2003
2003-2006
1991-2006
1991-1995
1996-2000
2001-2006
1 Tea 11.49 5.79 7.96 5.92 4.46 0.09 -7.41 6.09 -5.412 Coffee 4.22 7.06 6.53 3.76 3.15 2.32 39.76 -9.40 1.413 Rice 10.17 14.85 17.10 13.33 14.52 9.22 36.48 -6.59 8.52
4 Wheat 0.57 1.66 0.00 3.89 3.99 39.48 32.88 -5.88 -22.925 Cotton raw including waste 3.68 2.84 1.49 0.37 3.42 -1.74 -16.24 -49.04 168.876 Tobacco 4.55 2.41 3.83 3.07 3.14 5.13 -9.35 -2.35 5.397 Cashew 8.37 6.92 7.42 6.75 5.73 4.06 10.74 10.99 2.518 Spices 4.52 4.48 6.48 5.45 4.70 7.68 13.39 3.78 1.459 Oil meals 15.69 13.15 9.45 6.70 9.60 0.93 14.13 -20.24 17.5510 Fruits and vegetables 3.71 2.75 2.39 3.50 4.87 9.29 4.72 3.98 12.10
11Processed fruits, juices,miscellaneous processed items
2.39 3.85 2.98 4.60 3.64 10.49 32.80 2.12 -3.20
12 Marine products 19.22 19.91 18.84 21.88 16.73 5.96 18.65 6.29 -3.8513 Sugar and mollases 2.43 2.46 0.43 4.59 1.77 5.68 -0.99 -31.68 -41.2614 Meat and meat preparations 2.83 3.01 3.25 4.62 5.35 12.58 19.09 10.77 14.0815 Others 6.15 8.85 11.85 11.58 14.94 14.09 33.25 8.04 16.96
Total Agricultural Exports 100.0 100.0 100.0 100.0 100.0 6.68 17.02 -2.33 4.40Note: Value of Exports at Constant Prices is computed by taking 2000-01 prices as base year.Note: *Cashew also includes cashew nut shell liquid.
**Processed fruits & juices etc. also include miscellaneous processed items.
Source: Handbook of Statistics on Indian Economy, RBI.
Table 3.12: Share of Various Export Items within Iron and Ore during the period 1991-92 to 2005-06 (In percentage)
Percent Share Growth Rates
Commodity1991-1994
1994-1997
1997-2000
2000-2003
2003-2006
1991-2006
1991-1995
1996-2000
2001-2006
1 Iron ore 54.54 42.20 39.15 36.09 57.91 11.94 -1.75 -9.02 61.672 Mica 1.22 0.67 1.08 0.71 0.51 4.06 -12.09 6.45 4.063 Others 44.24 57.13 59.77 63.19 41.58 12.07 20.00 6.04 18.04
Total Iron and Ore Exports 100.0 100.0 100.0 100.0 100.0Note: Value of Exports at Constant Prices is computed by taking 2000-01 prices as base year.
Source: Directorate General of Commercial Intelligence and Statistics, Kolcutta.
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Table 3.15: Composition of India's Exports at Disaggregate Level (SITC Digit 3) during 1991-2006SITCCodes
Commodity DescriptionComposition Of Indias Exports Indias Share In World Exports
1992 1996 1992 1996 1992 1996 1992 1996
011 Meat, fresh, chilled or frozen 0.49 0.59 0.54 0.58 0.30 0.50 0.73 1.14
031 Fish, fresh & simply preserved 3.27 3.40 2.71 1.25 2.33 3.07 3.35 2.61
041 Wheat 0.02 0.60 0.71 0.01 0.02 0.96 2.35 0.04
042 Rice 1.85 2.72 2.37 1.25 8.03 13.63 18.72 14.91
051 Fruit, fresh, and nuts - excl. oil 1.69 1.31 1.01 0.69 1.84 1.75 1.92 1.94
054 Vegetables, roots & tubers, fresh o 0.41 0.45 0.46 0.47 0.47 0.70 0.97 1.48
061 Sugar and honey 0.68 0.94 0.76 0.60 1.41 2.18 3.36 3.47071 Coffee 0.72 1.22 0.40 0.35 2.19 3.18 2.44 2.44
074 Tea and mate 1.80 0.87 0.64 0.33 17.2 15.44 13.1 13.18
075 Spices 0.55 0.77 0.41 0.38 9.08 14.6 8.41 14.54
081 Feed.-stuff for animals 2.94 3.04 0.62 1.00 3.32 4.15 1.39 3.77
121 Tobacco, unmanufactured 0.67 0.57 0.30 0.22 2.58 2.94 2.94 3.94
221 Oil-seeds, oil nuts and oil kernels 0.24 0.57 0.29 0.33 0.49 1.23 0.94 1.74
263 Cotton 0.34 1.35 0.02 1.08 1.37 5.47 0.20 13.93
273 Stone, sand and gravel 0.73 0.65 0.62 0.54 5.08 5.77 7.97 9.96
281 Iron ore & concentrates 2.09 1.46 1.69 3.13 6.04 5.45 8.64 12.01
283 Ores & concentrates of non-ferrous 0.29 0.30 0.33 0.70 0.60 0.72 1.25 1.46
292 Crude vegetable materials 0.87 0.93 0.74 0.54 1.43 2.10 2.41 2.82
332 Petroleum products 2.62 1.50 5.04 14.85 0.71 0.47 1.85 4.20
422 Other fixed vegetable oils 0.23 0.49 0.22 0.19 1.00 2.09 1.26 1.52
512 Organic chemicals 1.57 2.76 3.43 4.31 0.44 0.85 1.23 1.97
513 Inorganic Chemicals etc 0.45 0.53 0.57 0.49 0.59 0.85 1.42 1.40
531 Synthetic organic dyestuffs, natural industries 1.37 1.25 0.97 0.64 3.63 4.23 5.69 7.47
541 Medicinal & pharmaceutical products 2.12 2.48 3.44 2.90 0.89 1.07 1.06 1.17
553 Perfumery, cosmetics, dentifrices, 0.28 0.26 0.30 0.21 0.46 0.43 0.56 0.55
581 Plastic materials, regenerated. cellulose 0.27 0.75 1.46 1.76 0.08 0.23 0.58 0.84
599 Chemical materials and products, 0.51 0.82 0.97 0.95 0.28 0.48 0.76 1.04
611 Leather 1.53 0.92 0.99 0.58 3.39 2.09 3.38 3.75
612 Manufacture of leather 1.53 0.96 0.68 0.30 5.7 5.29 5.28 4.21
629 Articles of rubber, 1.12 0.90 0.84 0.74 0.96 0.88 1.15 1.36
651 Textile yarn and thread 3.19 5.48 3.56 2.12 2.75 6.08 6.46 6.69
652 Cotton fabrics, woven 3.39 3.07 1.97 0.73 4.41 4.98 4.65 3.51
653 Text fabrics woven 2.43 1.91 2.26 1.28 1.19 1.23 2.40 2.59
656 Made-up articles, wholly or chiefly 1.98 2.24 2.40 1.72 4.53 6.00 7.00 7.07
657 Floor coverings, tapestries, etc. 3.10 2.00 1.21 0.96 7.88 7.63 7.56 9.87
661 Lime, cement and fabric building materials 0.55 0.79 0.83 0.79 1.37 2.26 3.69 4.59
667 Pearls and precious and semi-precious 15.32 12.71 14.82 8.70 13.1 11.5 15.03 14.79
671 Pig iron, spiegeleisen, sponge iron 0.49 0.52 0.23 0.47 2.3 1.79 1.39 2.38
672 Ingots & other primary forms of iron 0.30 0.37 0.99 1.38 0.37 0.48 1.80 2.35
673 Iron and steel bars, rods, angles etc. 0.98 0.69 0.45 0.59 1.12 0.92 1.02 1.18
674 Universals, plates and sheets of iron 0.26 0.84 1.86 1.85 0.15 0.56 1.90 1.87
678 Tubes, pipes and fittings of iron or 0.23 0.35 0.45 1.10 0.27 0.51 0.97 2.36
679 Iron steel castings forgings etc. 0.16 0.23 0.40 0.42 1.26 1.81 4.25 5.19
682 Copper 0.05 0.06 0.57 2.24 0.05 0.07 1.04 2.60684 Aluminum 0.91 0.56 0.58 0.49 0.7 0.45 0.64 0.63
691 Finished structural parts etc 0.22 0.24 0.16 0.30 0.41 0.59 0.51 1.09
695 Tools for use in the hand 0.45 0.36 0.37 0.33 0.7 0.69 0.94 1.25
697 Household equipment of base metals 0.34 0.40 0.76 0.70 1.07 1.51 3.67 4.87
698 Manufactures of metal 0.89 0.62 0.64 0.63 0.67 0.52 0.67 0.87
711 Power generating machinery, other (T.A) 0.60 0.51 0.52 0.68 0.17 0.18 0.20 0.39
714 Office machines 0.35 0.88 0.53 0.36 0.05 0.12 0.09 0.10
718 Machines for special industries 0.27 0.22 0.22 0.45 0.11 0.10 0.16 0.39
719 Machinery and appliances-non electrical 1.03 1.10 1.66 2.28 0.12 0.14 0.29 0.54
722 Electric power machinery and switch 0.49 0.65 0.79 1.55 0.14 0.19 0.29 0.77
723 Equipment for distributing electric 0.16 0.18 0.33 0.34 0.18 0.20 0.47 0.59
724 Telecommunications apparatus 0.20 0.34 0.29 0.40 0.04 0.07 0.07 0.11
729 Other electrical machinery and apparels 0.44 0.86 0.88 0.64 0.07 0.10 0.13 0.14
732 Road motor vehicles 1.79 2.18 1.65 2.59 0.11 0.17 0.15 0.35
733 Road vehicles other than motor vehicles 0.88 0.46 0.38 0.19 1.44 0.97 1.05 0.66
735 Ships and boats 0.00 0.13 0.22 0.82 0 0.11 0.24 1.24
831 Travel goods, handbags and similar 1.06 0.75 0.66 0.46 2.84 2.39 2.86 2.68
841 Clothing except fur clothing 15.28 12.91 11.85 7.68 2.51 2.76 3.20 3.47
851 Footwear 1.14 1.06 0.84 0.79 0.82 1.00 1.15 1.67861 Scientific,medical,optical,meas./co 0.19 0.24 0.35 0.43 0.05 0.07 0.13 0.19
891 Musical instruments, sound recorders 0.21 0.59 0.52 0.30 0.09 0.33 0.38 0.34
893 Articles of artificial plastic mate 0.31 0.47 0.48 0.43 0.19 0.37 0.44 0.55
897 Jewellery and gold/silver-smiths wa 1.55 1.68 2.81 4.06 2.05 2.99 6.24 12.11
Other Commodities 5.57 6.04 6.98 7.41 - - - -
Total Exports 100 100 100 100 0.60 0.69 0.88 1.16
Source: Comtrade-WITS, UNO.
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Table 3.16: Direction of Indias Exports: Region-Wise during the period 1991-92 to 2005-06 (In percentage)
Percentage Share Growth Rates
Group / Country1991-92
to
1993-94
1994-95to
1996-97
1997-98to
1999-00
2000-01to
2002-03
2003-04to
2005-06
1991-92to
2005-06
1991-92to
1995-96
1996-97to
2000-01
2001-02to
2005-06
I. OECD countries 58.40 56.64 56.99 18.36 44.85 9.19 14.88 7.84 9.71
A. European Union 27.13 26.65 26.18 15.84 21.49 9.20 15.76 6.23 12.33
B. North America 18.80 19.68 22.71 15.49 18.18 11.70 17.37 12.26 7.66
C. Asia & Oceania 9.57 8.30 6.35 3.39 3.53 2.47 10.99 -0.67 3.92
D. Other OECD countries 2.90 2.01 1.75 1.20 1.66 6.66 1.91 8.22 14.33
II. OPEC 9.70 9.52 10.45 8.39 15.18 15.82 17.99 11.88 20.84
III. Eastern Europe 6.61 3.84 3.45 1.87 2.16 2.68 -4.90 5.98 3.74
IV. Developing Countries 22.99 28.46 28.54 22.08 37.35 15.67 26.77 7.71 20.01
A. Asia 19.21 22.98 21.88 17.15 29.60 15.11 25.29 6.81 20.63
a) SAARC 3.83 5.04 4.48 3.32 5.73 14.19 28.76 3.20 17.39
b) Other Asian developing countries 15.38 17.94 17.40 13.83 23.87 15.33 24.33 7.69 21.39
B. Africa 2.83 4.11 4.73 3.27 5.24 16.89 33.54 8.29 16.21
C. Latin American countries 0.95 1.36 1.92 1.66 2.51 21.12 32.95 18.58 21.56
V. Others / unspecified 2.28 1.54 0.57 1.81 0.45 0.01 0.70 11.48 -37.02
Total Trade 99.90 99.95 99.96 99.98 99.99 11.49 16.12 8.68 14.00
Note: OPEC stands for Organization of Petroleum Exporting Countries
Source: Handbook of Statistics on Indian Economy, RBI.
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Table 3.17: Direction of Indias Exports during the period 1991-92 to 2005-06: Country-Wise (In percentages)
1991-92to
1993-94
1994-95to
1996-97
1997-98to
1999-00
2000-01to
2002-03
2003-04to
2005-06
1991-92to
2005-06
1991-92to
1995-96
1996-97to
2000-01
2001-02to
2005-06
Developed Countries
Australia 1.15 1.22 1.17 0.95 0.86 8.40 18.12 2.32 8.40
Belgium 3.74 3.51 3.69 3.23 2.87 9.28 15.00 9.65 10.10Canada 1.04 1.01 1.41 1.39 1.07 12.84 13.75 18.99 4.41
France 2.40 2.23 2.37 2.18 2.01 10.12 14.19 11.44 11.91
Germany 7.24 6.17 5.26 4.15 3.62 5.05 11.39 1.24 8.17
Italy 3.11 3.08 3.13 2.77 2.63 9.71 15.37 9.29 11.55
Japan 8.27 6.89 4.99 3.69 2.54 1.03 9.66 -1.32 2.27
Netherlands 2.21 2.40 2.33 1.99 2.11 10.67 19.52 3.77 17.71
Russia 5.12 2.92 2.48 1.73 0.86 -2.31 -6.06 3.95 -11.12
Switzerland 1.10 0.91 0.99 0.89 0.61 6.71 7.36 9.71 -2.34
U.K. 6.37 6.29 5.74 4.97 4.68 8.39 15.72 3.98 12.63
U.S.A. 17.76 18.67 21.30 20.45 17.10 11.63 17.58 11.85 7.87
Total Developed Countries 59.50 55.29 54.87 48.39 40.97 - - - -
Developing Countries
Afghanistan 0.00 0.00 0.00 0.00 0.05 - - - -
Bangladesh 1.89 2.78 2.32 2.22 2.10 11.05 34.13 1.45 4.51
Benin 0.05 0.04 0.07 0.12 0.08 19.67 -0.57 28.67 -1.00Bhutan 0.02 0.05 0.03 0.03 0.11 23.59 99.67 -47.25 65.08
China 0.76 1.28 1.60 2.61 5.97 32.95 55.93 5.39 50.15
Egypt 0.54 0.48 0.73 0.81 0.59 13.89 15.61 19.49 2.50
Hong Kong 4.39 5.68 6.00 5.46 4.62 11.96 32.96 12.41 7.44
Indonesia 0.87 1.64 0.90 1.24 1.57 15.07 44.79 -8.34 15.93
Iran 0.67 0.56 1.46 0.54 1.01 14.64 8.07 26.56 42.27
Iraq 0.02 0.00 0.23 0.01 0.10 - - 71.67 83.64
Kenya 0.29 0.58 0.37 0.36 0.48 13.75 53.51 -2.05 27.81
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Table 3.17: Continued.
1991-92to
1993-94
1994-95to
1996-97
1997-98to
1999-00
2000-01to
2002-03
2003-04to
2005-06
1991-92to
2005-06
1991-92to
1995-96
1996-97to
2000-01
2001-02to
2005-06
Kuwait 0.45 0.47 0.48 0.47 0.50 12.63 23.46 5.42 15.55
Malaysia 1.09 1.30 1.19 1.53 1.27 13.20 18.89 3.96 2.86
Maldives 0.03 0.05 0.02 0.06 0.06 16.72 35.15 19.20 14.49Nepal 0.42 0.48 0.42 0.49 0.92 17.32 21.59 -2.31 30.07
Pakistan 0.26 0.31 0.33 0.38 0.58 18.64 15.16 1.23 37.14
Romania 0.07 0.07 0.04 0.04 0.09 11.57 28.06 -7.16 56.17
Saudi Arabia 2.15 1.63 2.11 1.85 1.74 10.48 7.16 10.43 11.33
Singapore 2.91 2.89 1.87 2.31 4.46 14.14 21.43 -1.54 42.94
South Africa 0.00 0.00 0.00 0.00