Comparative Study of Ist 10 weak Export Product of India

Submitted by :Abhishek Sasan(500901515)

Content

What do you mean by Exports ? Why Exports ? Reactive & Proactive Reasons for Exporting Weak Export Product List

What do you mean by Exports ?

To ship the goods and services out of the port of a country

Why Exports ?

Exporting (selling products, services or knowledge overseas) can help your business grow and prosper

Reactive Reasons for Exporting

1. Market2. Competitive Environment 3. Political Environment changesi. Trade Barriersii. Regulations4. Economic Environment changes5. Chance occurrence

Proactive Reasons for Exporting

1. Power and prestige2. Incentives3. Lower costs of labour, production and energy4. Less stringent rules and regulations effecting pollution and labour

Export – Import Stats

Year Import Export

1980 135,960 90,290

1985 217,540 149,510

1990 486,980 406,350

1995 1,449,530 1,307,330

2000 2,975,230 2,781,260

2011 $ 10.18 billion  $ 23.8 billion

10 Weakest Export products

1. INDIA EXPORT OF OTHER JUTE MANUFACTURES2. INDIA EXPORT OF FOOTWEAR OF RUBBER/CANVAS 3. INDIA EXPORT OF COAL4. INDIA EXPORT OF JUTE YARN5. INDIA EXPORT OF SHELLAC6. INDIA EXPORT OF SILK CARPET7. INDIA EXPORT OF FRUITS / VEGETABLE SEEDS8. INDIA EXPORT OF MICA9. INDIA EXPORT OF NIGER SEEDS10. INDIA EXPORT OF MOLLASES

INDIA EXPORT OF OTHER JUTE MANUFACTURES

Exports Value of Goods

Exports Value of Goods

% Growth % Growth % share % share

Apr 2005 - Feb 2006

Apr 2006 - Feb 2007

227.8 51.4 249.7 55 9.6 6.83 .05 .05

Apr-Apr  2010 Apr-Apr  2011 %Growth %Share37.82 52.70 39.35 0.05

Why Jute Export has Fallen ?

During 1950-80’s Jute was considered to be the source of foreign exchange earnings for India.

At the same time, export of jute goods has fallen

Development and increasing use of substitutes and the emergence of Bangladesh as a competitor

Jute is divided into three major categories : Sacking, Hessian and carpet backing

Sacking is used for Domestic consumption where as hessian and carpet backing is exported

INDIA EXPORT OF FOOTWEAR OF RUBBER/CANVAS

Exports Value of Goods

Exports Value of Goods

% Growth % Growth % share

% share

Apr 2005 - Feb 2006

Apr 2006 - Feb 2007

223 50.3 212.2 46.7 -4.84 -7.24 .04 .04

Apr-Apr  2010 Apr-Apr  2011 %Growth %Share23.00 24.49 6.49 0.02

Why Rubber Export has Fallen ?

Price Fluctuation

Demand Slow

The rupiah’s appreciation against the dollar also triggered the rubber price to fall.The rupiah is getting strong, so it has been bad for exporters.

The global economic slow down has obviously affected natural rubber demand greatly, resulting in lowest ever market prices in the past 30 years.

The ratio of utilization of domestic production and imported rubber by tyre manufacturers

Government policies have a profound influence on rubber prices. These include subsidies, restrictions on ports etc

INDIA EXPORT OF COAL

Exports Value of Goods

Exports Value of Goods

% Growth % Growth % share

% share

Apr 2005 - Feb 2006

Apr 2006 - Feb 2007

220.5 49.8 339.25 74.72 53.85 49.86 .07 .07

Apr-Apr  2010 Apr-Apr  2011 %Growth %Share45.88 35.53 -22.57 0.03

Why Coal Export has Fallen ?

The quality of coal produced in many exporting countries has been gradually falling for years as old mines exhaust the highest-grade seams 

Economists have been warning of protectionism for awhile -- actually, since time immemorial -- but it may be that protectionism rears its head not in the form of limits on imports, but on limits on exports, of goods

All around the world, there's been move on the part of governments to limit their big commodity producers/exporters in some way.

INDIA EXPORT OF JUTE YARN

Exports Value of Goods

Exports Value of Goods

% Growth % Growth % share

% share

Apr 2005 - Feb 2006

Apr 2006 - Feb 2007

210.05 47.46 229.36 50.53 9.21 6.45 .04 .04

Apr-Apr  2010 Apr-Apr  2011 %Growth %Share38.39 24.84 -35.30 0.02

Why Jute Yarn Export has Fallen ?

International prices of jute yarn dropped by around 12 per cent over the last few months

Volume of jute yarn export also fell recently because of the slump in the carpet trade across the globe hit by the US economic slide and the fuel price spiral in the international markets

International prices of jute yarn are falling fast while in the local market the prices of raw jute are rising

INDIA EXPORT OF SHELLAC

Exports Value of Goods

Exports Value of Goods

% Growth % Growth % share

% share

Apr 2005 - Feb 2006

Apr 2006 - Feb 2007

145.64 32.91 133.05 29.30 -8.65 -10.96 .03 .03

Apr-Apr  2010 Apr-Apr  2011 %Growth %Share10.99 1.11 -89.94 0.00

Why Shellac Export has Fallen ?

International prices of jute yarn dropped by around 12 per cent over the last few months

Supply of shellac is steadily shrinking

Gradual decline in volume exports of shellac, due to frequent crop failure, has made it imperative to go in for more high value products like pheromone, ambrettolide.

shellac dropped to 3,000 tonnes from 3,800 tonnes last year

INDIA EXPORT OF SILK CARPET

Exports Value of Goods

Exports Value of Goods

% Growth % Growth % share

% share

Apr 2005 - Feb 2006

Apr 2006 - Feb 2007

95.05 21.48 118.28 26.05 24.45 21.30 .02 .02

Apr-Apr  2010 Apr-Apr  2011 %Growth %Share1.38 0.48 -65.12 0.0

Why Silk Carpet Export has Fallen ?

Exports had dipped to Rs2,750 crore due to slowdown in USA and Europe

Export of silk products had also fallen to Rs2,500 crore compared to Rs3,500 crore

Example : Consumption of silk in UP is 5,000 tonnes, the production is merely 50 tonnes.

Frequent currency fluctuations are also restricting silk export to Easter European Country.

India’s silk export to countries such as Hong Kong, the UK, Germany, Italy, France and Spain had also declined which reflects the poor performance of Indian silk-export based SMEs in these countries

INDIA EXPORT OF FRUITS/VEGETABLE SEEDS

Exports Value of Goods

Exports Value of Goods

% Growth % Growth % share

% share

Apr 2005 - Feb 2006

Apr 2006 - Feb 2007

75.67 17.10 97.65 21.91 29.04 25.78 .02 .02

Apr-Apr  2010 Apr-Apr  2011 %Growth %Share8.05 14.23 76.80 0.01

Why Fruits/Vegetable Seeds Export has Fallen ?

Eurozone Crisis

Lack of cost competitiveness due to statutory changes, intermediation and wastages/losses

Inadequate and Inappropriate storage and distribution infrastructure

INDIA EXPORT OF MICA

Exports Value of Goods

Exports Value of Goods

% Growth % Growth % share

% share

Apr 2005 - Feb 2006

Apr 2006 - Feb 2007

69.07 15.61 69.01 15.21 0 -2.53 .01 .01

Apr-Apr  2010 Apr-Apr  2011 %Growth %Share13.56 4.43 -67.35 0.00

Why Mica Export has Fallen ?

Realease of Stockpile

Dumping policy followed by the Govt of USA

Internationally,Reduction in stockpile sales

INDIA EXPORT OF NIGER SEEDS

Exports Value of Goods

Exports Value of Goods

% Growth % Growth % share

% share

Apr 2005 - Feb 2006

Apr 2006 - Feb 2007

53.70 12.13 56.61 12.47 5.42 2.76 0.01 0.01

Apr-Apr  2010 Apr-Apr  2011 %Growth %Share1.54 5.54 260.45 0.01

Why Niger Seeds Export has Fallen ?

The prices of niger seed showed the drop after safflower went down. Both of these seeds are widely used as bird seed in E.U. and U.S

Though the local prices were up the depriciating rupee kept the prices in dollar terms on lower side

The niger remained almost on the same level though it was up in local markets but rupee depriciation helped to keep export prices unchanged

The niger prices were down due to declining local prices on low demand and further due to depriciating rupee taking a toll on its export prices in dollar terms

Why Niger Seeds Export has Fallen ?

Retail price of petrol is expected to cause molasses prices to decline by 50 per cent in the next sugar-cane harvest season

Molasses, made from sugar cane, is used as a raw material in the

production of ethanol. Ethanol and petrol can be mixed to create gasohol. Demand for ethanol is declining as lower petrol prices make gasohol less attractive

Lower demand for ethanol will cause the molasses price to drop by 50 per cent

INDIA EXPORT OF MOLLASES

Exports Value of Goods

Exports Value of Goods

% Growth % Growth % share

% share

Apr 2005 - Feb 2006

Apr 2006 - Feb 2007

26.93 6.09 119.37 26.29 343.22 332.02 0.02 0.02