1

Foreign Trade Performance of India

India’s Exports, Imports and Balance of Trade

The global slowdown had its impact on the economy of most of the countries, including India. As a result, the trade deficit abruptly increased from 356448 crores in 2007-08 to 533681 crores in 2008-09, an increase by almost 50 %. However, during 2009-10, export recorded marginal positive growth at 0.57 % and import recorded marginal negative growth at 0.78 %, which was for the first time over the decade. As a result, the trade deficit stood at Rs. 518202 crores with a negative growth of 2.9 % in 2009-10. However, these are global slowdown effect, as after 2009-10, when the economy started picking up, both export as well as import recorded substantial growth of 34.5 % and 23.5 % respectively, resulting in Rs. 546503 crores trade deficit with 5.46 % positive growth in 2010-11(Table 3.1). The trade deficit further worsen in 2011-12 with absolute value at Rs. 879504 crores and with 60.9 % annual growth over 2010-11. During 2011-12, the exports value was Rs. 1465959 crores against the import value of Rs. 2345463 crores, with annual increases of 28.9 % and 39.3 % respectively for export and import. After the global slowdown, the imports as well as exports grew in the similar way with imports value increased from Rs. 1363736 crores in 2009-10 to Rs. 2345463 crores in 2011-12 with an increase of 72 %, whereas during this period, the exports grew at the rate of about 73 % from Rs. 845534 crores in 2009-10 to Rs. 1465959 crores in 2011-12. But the trade deficit grew more in 2011-12 with 61 % although from 2009-10 to 2011-12, the trade deficit growth was about 70 %.

Table 3.1: India's Exports, Imports, and Balance of Trade from 2000-01 to 2011-12

Value in Rs. crores Percentage growth

Year Exports Imports Balance of Trade Exports Imports Trade Deficit 2001-02 209018 245200 -36182 2.68 6.21 32.53 2002-03 255137 297206 -42069 22.06 21.21 16.27 2003-04 293367 359108 -65741 14.98 20.83 56.27 2004-05 375340 501065 -125725 27.94 39.53 91.24 2005-06 456418 660409 -203991 21.60 31.80 62.25 2006-07 571779 840506 -268727 25.28 27.27 31.73 2007-08 655864 1012312 -356448 14.71 20.44 32.64 2008-09 840755 1374436 -533681 28.19 35.77 49.72 2009-10 8455.34 13637.36 -5182.02 0.57 -0.78 -2.90

2010-11 11369.64 16834.67 -5465.03 34.47 23.45 5.46

2011-12 14659.59 23454.63 -8795.04 28.94 39.32 60.93

India’s imports grew from Rs. 1683467 crores in 2010-11 to 2345463 crores in 2011-12, an annual growth of 39.32% in 2011-12. This growth is substantial compared to the growth of 23.45% in 2010-11 and negative growth (– 0.78%) during 2009-10. Along with this, the country’s exports also grew from Rs. 1136964 crores in 2010-11 to Rs. 1465959 crores in 2011-12, an annual growth of 28.94 % during 2011-12. This is much less than 34.47 % growth during 2010-11, but more significant than the marginal growth of only 0.57% in 2009-10. As a consequence, India’s trade deficit increased by a whopping 60.93 % during 2011-12, significantly higher than its growth during the previous two years, as evident from Fig. 3.1a. However, the year 2009-10 was an after effect of global slowdown.

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The monthwise export and import figures for India during the last three years are given in Table 3.2 and

more analytically portrayed in Fig. 3.2 and Fig. 3.3 respectively. For every month there has been steady increase in both exports and imports over the last three years. But in 2011-12, increase in monthwise import figures outpaced those of exports.

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Table 3.2: Month-wise Exports and Imports during 2009-10 to 2011-12 Export Import Value (Rs. '000 crores) % growth Value (Rs. '000 crores) % growth Month 2009-10 2010-11 2011-12 2010-11 2011-12 2009-10 2010-11 2011-12 2010-11 2011-12 April 62 81 104 29.2 29.0 97 141 162 45.6 15.2 May 60 79 119 32.4 50.4 97 136 203 40.1 49.1 June 65 96 119 48.1 23.7 110 133 183 21.1 37.3 July 70 79 117 14.2 47.8 105 139 183 32.0 31.4 August 66 82 112 25.6 36.0 109 126 181 16.3 43.4 September 71 87 127 22.7 45.6 104 136 189 30.4 39.3 October 69 84 116 21.9 38.0 121 144 203 19.0 40.7 November 70 97 118 39.2 22.3 116 130 199 11.5 53.2 December 77 105 134 37.1 26.7 132 142 211 8.0 48.2 January 71 103 130 44.1 26.5 116 151 221 30.4 45.6 February 73 106 124 44.7 17.3 121 150 197 23.6 31.7 March 92 137 145 48.5 6.0 135 154 213 14.4 38.3 Year Total 846 1137 1466 34.5 28.9 1364 1683 2345 23.4 39.3

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India’s Export performance

India’s merchandise exports stood at Rs. 1465959 crores in 2011-12 as compared to Rs. 1136964 crores in 2010-11 and Rs.845534 crores during 2009-10. This has resulted in a growth of 28.9 % in 2011-12 against 34.5 % growth in 2010-11. The growth was 0.6 % in 2009-10 thus indicating that there was more impact of global recess/slowdown on India’s economy in the initial year.

Major Export Destinations

The most important destination of India’s exports was UAE during the year 2011-12 closely followed by USA. In fact UAE has been the topmost export destination for the last four years with about 12 to 13% share in total export every year. In terms of value, India’s exports to UAE exceeded one lakh crores during these four years with Rs. 172268 crores in 2011-12.

Table 3.3A: India's export to top 20 major countries during last five years

Country Value (Rs. Crores) Percentage Share Percentage Growth

2011-12 2010-11 2009-10 2008-09 2007-08 2011-

12 2010-

11 2009-

10 2008-

09 2007-

08 2011-

12 2010-

11 2009-

10 2008-

09 UAE 172268 153866 113348 110229 62915 11.75 13.53 13.41 13.11 9.59 12.0 35.7 2.8 75.2 U SA 166474 115212 92417 96458 83388 11.36 10.13 10.93 11.47 12.71 44.5 24.7 -4.2 15.7 China P RP 87669 64487 54714 42661 43597 5.98 5.67 6.47 5.07 6.65 35.9 17.9 28.3 -2.1 Singapore 80363 44732 35948 37757 29662 5.48 3.93 4.25 4.49 4.52 79.7 24.4 -4.8 27.3 Hong Kong 61877 47038 37301 30391 25385 4.22 4.14 4.41 3.61 3.87 31.5 26.1 22.7 19.7 Netherland 43914 34967 30301 28890 21038 3.00 3.08 3.58 3.44 3.21 25.6 15.4 4.9 37.3 U K 41324 33296 29476 30345 26967 2.82 2.93 3.49 3.61 4.11 24.1 13.0 -2.9 12.5 Germany 37982 30733 25633 29195 20599 2.59 2.70 3.03 3.47 3.14 23.6 19.9 -12.2 41.7 Belgium 34208 26347 17757 20309 16943 2.33 2.32 2.10 2.42 2.58 29.8 48.4 -12.6 19.9 Indonesia 32101 25925 14605 11578 8693 2.19 2.28 1.73 1.38 1.33 23.8 77.5 26.1 33.2 Japan 30520 23183 17143 13808 15516 2.08 2.04 2.03 1.64 2.37 31.6 35.2 24.2 -11.0 Brazil 27577 18336 11365 11874 10132 1.88 1.61 1.34 1.41 1.54 50.4 61.3 -4.3 17.2 Saudi Arabia 27208 21296 18552 22940 14923 1.86 1.87 2.19 2.73 2.28 27.8 14.8 -19.1 53.7 Italy 23283 20702 16072 17365 15748 1.59 1.82 1.90 2.07 2.40 12.5 28.8 -7.4 10.3 South Africa 22730 17885 9751 8994 10699 1.55 1.57 1.15 1.07 1.63 27.1 83.4 8.4 -15.9 France 22022 23688 17999 13777 10454 1.50 2.08 2.13 1.64 1.59 -7.0 31.6 30.7 31.8 Sri Lanka DSR 20951 15951 10290 10893 11374 1.43 1.40 1.22 1.30 1.73 31.3 55.0 -5.5 -4.2 Korea RP 20781 16965 16127 18354 11482 1.42 1.49 1.91 2.18 1.75 22.5 5.2 -12.1 59.9 Israel 19333 13284 9289 6584 6453 1.32 1.17 1.10 0.78 0.98 45.5 43.0 41.1 2.0 Malaysia 19103 17677 13504 15780 10337 1.30 1.55 1.60 1.88 1.58 8.1 30.9 -14.4 52.7 Major countries 991689 765572 591592 578183 456306 67.65 67.33 69.97 68.77 69.57 29.5 29.4 2.3 26.7 Total Export 1465959 1136964 845534 840755 655864 100.00 100.00 100.00 100.00 100.00 28.9 34.5 0.6 28.2

In case of USA, which was the topmost export destination in 2007-08 with a share of about 13% of India’s exports, was pushed to the second position during the last four years. From 2007-08, its share has consistently decreased from 12.71 % in 2007-08 to 11.47 % in 2008-09, 10.93 % in 2009-10, 10.13 % in 2010-11. But it has improved its position with 11.36% share of total exports and with exports value at Rs. 166474 crores in 2011-12. The shares of export values to the total exports for these two countries together were more than 23 % during the last four years. The next three countries in terms of export share in 2011-12 were China RP (5.98 %), Singapore (5.48 %) and Hong Kong (4.22 %) respectively. UK, which was among the top five export destinations in 2007-08, subsequently lost its share to less than 3 % for the last two years (2010-11 and 2011-12) and it has pushed UK to 7th position with Netherland taking over 6th position in the last three years with more than 3 % share of export values during 2009-10 to 2011-12.

In value terms as well as percentage share, both UAE and USA have left other destinations well behind in the last five years as the percentage shares are about 10-14 % for each of these two countries during 2007-08 to 2011-12, whereas the next best is the China with only 5 – 6 % during these years. In value terms,

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the UAE had crossed exports of 1 lakh crores during 2008-09 itself when it recorded growth of more than 75 %. Since then, it has not only maintained the exports value of more than 1 lakh crores but it has significantly crossed the exports of 1.5 lakh crores of exports during the last two years. In contrast, USA has crossed the exports of 1 lakh crores in 2010-11 for the first time after overcoming the recession period and in 2011-12, it has even crossed the exports of 1.5 lakh crores when it recorded about 45 % annual growth. While the annual growth of USA is from 25 % in 2010-11 to 45 % in 2011-12, for UAE, it has decreased from 36 % to 12 % in these two years.

In terms of annual growth rates of exports to other top destinations (Table 3.3A), India’s exports to China, which was the third major country, had increased about 28 % in 2009-10 but subsequently decreased to 18 % in 2010-11. However, it has again picked up with a significant growth of about 36 % in 2011-12.

Singapore, the fourth top destination, witnessed a nearly 80% jump in the export value during 2011-12 as compared to 24% growth in 2010-11. Exports to fifth major country Hong Kong has grown every year since 2008-09 with 20 % in 2008-09 to 32 % in 2011-12. Among the top 20 Export destinations, the growth of exports in 2011-12 was highest for Singapore (79.7%), followed by Brazil (50.4%), Israel (45.5 %), USA (44.5 %), China (35.9 %), Japan (31.6%), Hong Kong (31.5 %), Sri Lanka (31.3 %), Belgium (29.8 %), Suadi Arabia (27.8 %), South Africa (27.1 %) Netherland (25.6 %), UK (24.1 %), etc. (Table 3.3A).

Major Items of Export

Table 3.3 (at the end of the Section) gives the export values of major items during 2007-08 to 2011-12. Of all the item groups, ‘Engineering goods’, ‘Petroleum Products’ and ‘Gems and Jewellery’ are the most important item groups, each of which has crossed exports values of 2 lakhs crores with ‘Engineering goods’ at 2.8 lakhs crores, ‘Petroleum Products’ at 2.68 lakhs crores and ‘Gems and Jewellery’ at 2.15 lakhs crores; the percentage share of each of these commodity groups being more than 15 %. The next best two item groups are ‘RMG of all Textiles’ and ‘Drug, Pharmacutes & Fine Chemicals’ which have shares of 4.5 % and 4.3 % with exports values at Rs. 65613 crores and Rs. 63554 crores during 2011-12.

As stated above, the most important item group exported by India in recent years was ‘Engineering goods’ with value of exports about 2.8 lakh crores in 2011-12, accounting for 19.08 % of India’s total exports. The export of engineering goods during this period has increased by 26.65 %, as compared to 2010-11 when it witnessed an annual growth of 43.11 % with Rs.2.21 lakh crores of exports value. The main markets for these items are developed countries and emerging economies. It is heartening to learn that India’s exports of these sophisticated manufactured items to top 10 major economies have gone up from 45 % in 2010-11 to 51 % in 2011-12 . This indicates a sustained maturity of India’s manufacturing base for these commodities.

Another notable development in the field of exports is the export of ‘Petroleum Products’ which has been the second most important commodity group in 2011-12 with a value of Rs. 2.68 lakh crores and shares

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of 18.28 %. The share of this commodity group was 17.4 % in 2007-08. However, there was a decline in its share in total exports to 14.7 % in 2008-09, although subsequently, its share increased in 2009-10 (15.7 %), 2010-11 (16.5%) and 2011-12 (18.3%). In terms of relative growth of export over the previous year, ‘petroleum products’ recorded growth of about 42 % for the two consecutive years, i.e. 2010-11 and 2011-12, although it was about 8 % in previous two years, i.e. 2008-09 and 2009-10. The major export destinations for this commodity group include some oil-producing countries like UAE, Brazil and Indonesia, besides countries like Singapore, Netherland, Japan, Bahamas, South Africa, Israel, etc. The countries like Singapore, Netherlands, Brazil and Sri Lanka are other important buyers from RIL.

‘Gems and Jewellery’ is the third most important commodity group in India’s export basket. In 2011-12 the value of exports of this particular item group was about Rs. 2.15 lakh crores with a share of about 15 %. The shares of this commodity group in total exports had an increasing trend till 2009-10, with 12.2 % in 2007-08, 15.3 % in 2008-09 and 16.3 % in 2009-10, but subsequently started declining to16.2 % in 2010-11 and further to 14.7% in 2011-12. In terms of growth, while its exports grew significantly to 61 % in 2008-09, but subsequently had a low growth of only 7 % in 2009-10, which again grown by 34 % in 2010-11 and finally to 16.5 % in 2011-12. Gems and Jewellery are mainly exported to rich countries like UAE, USA, Belgium, UK, Japan, Israel and Switzerland, Trading nations like Hong Kong, and also newly industrialised countries like Thailand. From the top destinations of this item group, the most significant aspects emerges – top 10 destinations share more than 90 % exports during four of the five years from 2007-08 to 2011-12 except 2010-11 when the share was marginally less than 90 % at 88 %. Another significant feature is that the top two destinations namely, UAE and Hong Kong combine shares were more than 61 % during the last three years. The next three best destinations in 2011-12 were USA, Belgium and Israel with 15.1 % 8.5 % and 3.2 % export shares respectively. Thus the top 5 countries combined share of exports of ‘Gems and Jewellery’ was more than 85 % in 2011-12 which itself is very heartening and the importance of this commodity group to these countries.

Each of the remaining 23 commodity groups contributed individually less than 5% of the country’s exports. However most prominent among them were ‘RMG of all Textiles’, ‘Drug, Pharmaceutics & Fine Chemicals’ etc.

Traditionally, although India has had a comparative advantage in textiles, the share of this commodity group in India’s total exports has not been that encouraging. The shares of this commodity in India’s total volume of export were about 6 % during 2007-08 to 2009-10, but it came down since then. In 2010-11, it decreased to 4.65 % and further decreased to 4.48 % in 2011-12. However, it still continues to be the fourth largest foreign exchange earner for the country. India’s main markets for this item group are the developed countries like USA, UK, Spain, Netherland, Belgium, Germany, France, Italy, UAE and Saudi Arabia, etc. The combined shares of top 10 destinations were 81 % in 2007-08, which was declining over the years and in 2011-12, it was 75 %, still encouraging. Another significant aspect of this item group is that of the total shares of this item group to the world market, USA itself has exported consistently about 25 % over the years from India, UK has exported consistently about 11 – 12 %, UAE is consistently increasing its exports share of ‘RMG of all Textiles’ from 7 % in 2007-08 to 10 % in 2011-12 and Spain is maintaining it at 4 – 5 % shares over these five years.

Basic chemicals (Drug, Pharmacutes & Fine Chemicals) along with ‘Other Basic Chemicals’ is an area in which India is doing well as far as exports are concerned. In 2007-08, these two together accounted for around 8.43 % of India’s export in the year 2007-08, which experienced minor fall to 8.03% in 2011-12. ‘Drug, Pharmacutes & Fine Chemicals’ were mainly exported to USA as its shares over the five years have been consistently increasing from 20 % in 2007-08 to 25 % in 2011-12. The next best were UK, Germany, Russia, South Africa, etc. each of which has exported shares of about 3 % over these years.

In so far as annual growth in export value over the previous year is concerned, the export value of ‘Computer Software’, which was falling drastically during the previous two years experienced almost 700% jump to Rs. 2559 crores in 2011-12. Besides this, the export value of ‘Rice’ has been more than doubled in 2011-12 to Rs. 24109 Crores, from Rs. 11586 Crores in the preceding year. Export of ‘Spices’ has been

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steadily moving up over last three years after the global recession and in 2011-12, its value has gone up by more than 64 %. The only item which experienced negative annual growth in value of export during 2011-12 was ‘Carpet’ (13.7 %), while ‘Tobacco’ had almost zero growth between 2010-11 and 2011-12.

Exports through major Ports

India’s exports through major ports (top 20) have been presented in Table 3.3 B. Among Indian ports, Nhava Sheva Sea handles the largest value of cargo export (15.3 %) in 2011-12.

With Mumbai Air (10.5 %), this port handles more than one-fourth share of India’s merchandise exports value. Although its share has marginally declined over last two years from over 19 % in 2007-08, Nhava Sheva Sea still has handled substantial exports cargo with a value of about Rs. 2.24 lakh crores in 2011-12, the next major port being the Mumbai Air with Rs. 94679 crores. The main types of cargoes that were handled by Nhava Sheva were ‘Engineering Goods’, ‘Other Basic Chemicals’, ‘RMG Textiles’, ‘Drugs & Pharmaceuticals’, all types of ‘Yarns & Fibers’, etc.

Mumbai Air, which is the second most important port of the country, handled more than Rs.1.5 lakh crores in 2011-12. Individually its share in total exports has fallen from 12.3 % in 2007-08 to 10.5 % in 2011-12. Nhava Sheva Sea and Mumbai Air together had handled around 30 % of the total exports between 2007-08 to 2009-10, but since 2010-11, their combined shares had fallen to about 25 %. The major items that were handled by this port were ‘Gems & Jewellery’, ‘Drugs & Pharmaceuticals’, ‘Engineering Goods’, ‘Electronic Goods’, ‘RMG Textiles’, etc. However, ‘Gems & Jewellery’ that were handled by this port were mainly that of DPCC, which had subsequently been separated out from this port, thus the contribution of Mumbai Air would fall subsequently.

The next major port has been SEZ Jamnagar mainly of Reliance and handles oil cargos. This SEZ came into existence in 2008-09 and due to its oil handling capacity; it positioned itself into a major port although it is a specific type of port.

Chennai Sea, which is the next major customary port handled consistently about 6 to 7 % of the total exports during the last five years from 2007-08 to 2011-12. The type of cargoes exported through this port were mainly ‘Engineering Goods’, ‘RMG Textiles’, ‘Leather & Leather Manufactures’, ‘Mica, Coal and other Minerals’, etc. besides ‘Marine Products, ‘Spices’ and ‘Tobaccos’.

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Delhi Air is another major port with cargo handling share of 4.5 % amounting Rs. 65892 crores in 2011-12. The main types of cargoes that were exported through this port were ‘RMG Textiles’, ‘Engineering Goods’, ‘Gems & Jewellery’, ‘Drugs & Pharmaceuticals’, ‘Electronic Goods’, ‘Leather & Leather Manufactures’, ‘Carpets’,etc.

Other major ports handling India’s exports during 2011-12 were Sikka (3.7 %), Mundra (3.5 %), Mumbai Sea (2.4 %), Tuticorin Sea (2.4 %), Kolkata Sea (2.2 %), New Mangalore Sea (2.1 %), etc. Of these ports, Sikka is mainly contributing oil exports whereas Mundra is important in export handling of ‘Engineering Goods’, ‘Rice’, ‘Cotton Yarn & Fabrics, etc.’, ‘Mica, Coal and other Minerals’, ‘Spices’, etc. Tuticorin Sea handles cargos besides other similar items ‘Cashew’ and ‘Marine Products’. Kolkata Sea’s major cargoes were ‘Engineering Goods’, ‘Petroleum Products’, etc. besides ‘Tea’, ‘Jute manufactures, etc.’, ‘Marine Products’, ‘ Iron Ore’.

Table 3.3 B: India's Exports through top 20 major ports during 2007-08 to 2011-12 Value in Rs. Crores Percentage Share Percentage Growth

Port name 2011-12 2010-11 2009-

10 2008-

09 2007-

08 2011-

12 2010-

11 2009-

10 2008-

09 2007-

08 2011-

12 2010-

11 2009-

10 2008-

09 Nhava Sheva Sea 224416 178499 154489 150540 126711 15.3 15.7 18.3 17.9 19.3 25.7 15.5 2.6 18.8 Mumbai Air 153396 112434 94679 88407 80798 10.5 9.9 11.2 10.5 12.3 36.4 18.8 7.1 9.4 SEZ Jamnagar (Reliance) 146223 100231 64138 2965 10.0 8.8 7.6 0.4 0.0 45.9 56.3 2062.9 Chennai Sea 80811 66744 59395 58115 44627 5.5 5.9 7.0 6.9 6.8 21.1 12.4 2.2 30.2 Delhi Air 65892 43453 35109 34797 14532 4.5 3.8 4.2 4.1 2.2 51.6 23.8 0.9 139.5 Sikka 54361 42657 37722 82367 78297 3.7 3.8 4.5 9.8 11.9 27.4 13.1 -54.2 5.2 Mundra 51171 45565 24247 24493 19384 3.5 4.0 2.9 2.9 3.0 12.3 87.9 -1.0 26.4 Mumbai Sea 35786 25548 20691 24689 18617 2.4 2.2 2.4 2.9 2.8 40.1 23.5 -16.2 32.6 Tuticorin Sea 34786 27984 19897 20857 19564 2.4 2.5 2.4 2.5 3.0 24.3 40.6 -4.6 6.6 Kolkata Sea 31978 25371 14928 20606 16428 2.2 2.2 1.8 2.5 2.5 26.0 69.9 -27.6 25.4 New Mangalore sea 30724 13473 8765 16507 19472 2.1 1.2 1.0 2.0 3.0 128.0 53.7 -46.9 -15.2 SEZ Cochin 27828 19355 16606 11124 1.9 1.7 2.0 1.3 0.0 43.8 16.6 49.3 Kakinada Sea 27007 18648 8838 15320 8726 1.8 1.6 1.0 1.8 1.3 44.8 111.0 -42.3 75.6 Delhi (ICD) 26229 19831 13927 13323 15260 1.8 1.7 1.6 1.6 2.3 32.3 42.4 4.5 -12.7 Visakhapatnam Sea 21067 30368 11704 12813 9193 1.4 2.7 1.4 1.5 1.4 -30.6 159.5 -8.7 39.4 Cochin Sea 20191 12051 10933 11310 9992 1.4 1.1 1.3 1.3 1.5 67.5 10.2 -3.3 13.2 Vadinar 19682 16688 10709 10517 11258 1.3 1.5 1.3 1.3 1.7 17.9 55.8 1.8 -6.6 Kandla Sea 19193 17755 16346 18380 17231 1.3 1.6 1.9 2.2 2.6 8.1 8.6 -11.1 6.7

Pipavab (Vicyor) 18002 12522 7623 3122 1.2 1.1 0.9 0.0 0.5 43.8 64.3 -

100.0 Bangalore Air 17968 19998 11868 11916 12727 1.2 1.8 1.4 1.4 1.9 -10.2 68.5 -0.4 -6.4 All Ports 1465959 1136964 845403 840755 655864 100.0 100.0 100.0 100.0 100.0 28.9 34.5 0.6 28.2

Table 3.4: Major cargoes handled (Value in Rs. Crores) by Major Ports during 2007-08 and 2011-12

2011-12 2010-11 2009-10 2008-09 2007-08

Nhava Sheva Sea Engineering Goods 61338.91 47103.48 40512.64 44679.39 39914.38

Nhava Sheva Sea Other Basic Chemicals 20138.00 16906.4 15325.16 14864.24 10760.2

Nhava Sheva Sea RMG of all Textiles 15429.17 13137.86 12362.34 11225.65 9229.45

Nhava Sheva Sea Drug, Phrmcutes & Fine Chemls ## 13884.50 11264.03 10002.28 9392.64 7664.53

Nhava Sheva Sea Man-made Yarn/Fabs./made-ups etc. 13576.66 11477.44 11226.98 9145.49 7448.17

Total of Nhava Sheva Sea 224416.31 178498.74 154489.02 150539.51 126710.6

Mumbai Air Gems & Jewellery 68726.1 82938.77 68726.1 63993.85 60756.09

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Mumbai Air Drug, Phrmcutes & Fine Chemls ## 10519.72 12898.81 10519.72 10087.3 7587.01

Mumbai Air Engineering Goods 5200.81 6401.71 5200.81 4720.58 3584.73

Mumbai Air Electronic Goods 2558.12 1779.32 2558.12 2347.98 1574.64

Mumbai Air RMG of all Textiles 1885.81 1809.8 1885.81 1685.95 1437.91

Total of Mumbai Air 94679.28 112433.85 94679.28 88407.16 80797.6

SEZ Jamnagar (Reliance) Petroleum: crude & products 60254.21 93585.62 60254.21 2962.91

SEZ Jamnagar (Reliance) Plastic & linoleum products 2342.18 3348.42 2342.18 0.22 SEZ Jamnagar (Reliance) Other commodities 916.53 1700.81 916.53 0.00

SEZ Jamnagar (Reliance) Inorganic/organic/agro chemls 568.29 893.13 568.29 0.00 SEZ Jamnagar (Reliance) Other ores and minerals 57.08 64.36 57.08 2.30

Total of SEZ Jamnagar 64138.29 100230.84 64138.29 2965.43

Chennai Sea Engineering Goods 30930.6 23497.79 21914.22 23277.22 13392.9

Chennai Sea RMG of all Textiles 7597.95 7059.88 5618.34 5610.43 4663.73

Chennai Sea Leather & leather manufactures 4188.23 3545.83 3160.71 3165.41 2767.96

Chennai Sea Mica, Coal & Other Ores, Minerals including processed minerals 4044.04 3560.47 3206.79 3241.7 2647.87

Chennai Sea Cotton Yarn/Fabs./made-ups, Handloom Products etc. 2911.32 3002.79 2124.61 1921.82 1975.91

Total of Chennai Sea 80811.02 66744.34 59395 58114.94 44627.24

Delhi Air RMG of all Textiles 8876.99 6585.89 7600 6943.67 5453.04

Delhi Air Engineering Goods 6713.56 5210.01 3895.72 4285.51 2129.58

Delhi Air Gems & Jewellery 5870.9 15516.21 274.66 310.37 62

Delhi Air Drug, Phrmcutes & Fine Chemls ## 4969.83 2340.11 2246.61 2261.29 1771.14

Delhi Air Electronic Goods 2885.78 1538.87 1559.98 1696.62 1036.03

Total of Delhi Air 65892.36 43452.74 35108.83 34797.28 14531.87

Sikka Petroleum: crude & products 45112.71 37351.48 32238.90 75519.76 71249.85

Sikka DYES/INTMDTES n COAR TAR CHEML 8389.39 4461.71 4009.45 4175.75 4366.99

Sikka RESIDL CHEMICL n ALLIED PRDCTS 112.68 0.00 0.00 0.00 0.00

Sikka Inorganic/organic/agro chemls 4.96 0.00 70.89 94.00 0.00

Sikka Processed minerals 2.52 0.00 0.00 0.00

Total of Sikka 54360.75313 42656.59934 37721.66273 82367.27868 78296.97437

Mundra Engineering Goods 12412.43 20244.09 9092.07 10870.63 7630.35

Mundra Rice 5824.42 3523.9 3506.19 1720.8 500.04

Mundra Cotton Yarn/Fabs./made-ups, Handloom Products etc. 2212.63 1516.99 644.38 831.79 680.01

Mundra Mica, Coal & Other Ores, Minerals including processed minerals 1947.83 1634.31 860.71 1014.24 584.75

Mundra Other Basic Chemicals 1552.17 749.75 350.48 374.64 320.69

Total of Mundra 51171.22 45564.71 24246.85 24493.14 19384.42

Mumbai Sea Transport equipments 13768.57 8823.33 4397.06 4782.00 4505.66

10

Mumbai Sea Petroleum: crude & products 11661.89 7220.21 5344.05 2854.71 3550.40

Mumbai Sea Machinerry and instruments 3093.45 2740.16 4665.76 5805.46 3702.34

Mumbai Sea Prmry & semi-fnshd iron & stl 2940.95 1781.86 1705.74 4799.66 3435.88

Mumbai Sea Manufactures of metals 1465.52 1300.02 874.63 1310.14 1249.04

Total of Mumbai Sea 35230.94 25096.99 20235.74 23606.14 18617.22

Tuticorin Sea Engineering Goods 8381.1 8110.23 4836.99 4392.49 5203.23

Tuticorin Sea RMG of all Textiles 6314.43 5168.82 4614.28 4792.15 3595.17

Tuticorin Sea Cotton Yarn/Fabs./made-ups, Handloom Products etc. 5046.26 4358.76 3024.71 3466.21 3560.6

Tuticorin Sea Mica, Coal & Other Ores, Minerals including processed minerals 2807.76 1422.41 1256.98 1301.9 1184.2

Tuticorin Sea Gems & Jewellery 2208.59 1393.62 446.74 488.97 695.68

Total of Tuticorin Sea 34786.29 27984.08 19896.9 20856.55 19563.94

Kolkata Sea Engineering Goods 12307.32 10008.33 6282.05 10653.31 7753.72

Kolkata Sea Petroleum Products 2900.36 1430.83 123.23 57.63 131.67

Kolkata Sea Tea 2079.91 1787.8 1270.00 1318.53 1004.84

Kolkata Sea Plastic & Linoleum 2004.3 1471.47 666.14 1330.17 1283.73

Kolkata Sea Leather & leather manufactures 1807.86 1279.16 933.86 1559.56 1213.17 Total of Kolkata Sea 31978.45 25370.63 14928.5 20606.45 16428.41

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Table 3.3: India's Export of major items during the period from 2007-08 to 2011-12

Item Value in Rs. Crores Percentage Share in Total Exports Growth(%) over the previous year

2007-08 2008-09 2009-10 2010-11 2011-12 2007-08 2008-09 2009-10 2010-11 2011-12 2008-09 2009-10 2010-11 2011-12

Tea 2033 2689 2944 3354 4079 0.31 0.32 0.35 0.30 0.28 32.25 9.47 13.96 21.59

Coffee 1872 2256 2032 3010 4535 0.29 0.27 0.24 0.26 0.31 20.48 -9.92 48.12 50.66

Rice 11755 11164 11255 11586 24109 1.79 1.33 1.33 1.02 1.64 -5.03 0.81 2.94 108.08

Tobacco 1932 3461 4344 3985 4006 0.29 0.41 0.51 0.35 0.27 79.15 25.52 -8.26 0.53

Spices 5259 6338 6157 8043 13220 0.80 0.75 0.73 0.71 0.90 20.53 -2.86 30.63 64.36

Cashew 2210 2901 2802 2819 4391 0.34 0.35 0.33 0.25 0.30 31.29 -3.43 0.64 55.73

Oil Meals 7981 10269 7832 11070 11796 1.22 1.22 0.93 0.97 0.80 28.67 -23.74 41.34 6.57

Fruits & Vegetables 3515 5111 5963 5484 6521 0.54 0.61 0.71 0.48 0.44 45.41 16.68 -8.03 18.92

Marine Products 6927 7066 9900 11917 16585 1.06 0.84 1.17 1.05 1.13 2.02 40.10 20.38 39.17

Iron Ore 23400 21725 28366 21416 22184 3.57 2.58 3.35 1.88 1.51 -7.16 30.57 -24.50 3.59

Mica, Coal & Other Ores, Minerals including processed minerals 13284 14152 12732 17935 18388 2.03 1.68 1.51 1.58 1.25 6.53 -10.04 40.87 2.53

Leather & leather manufactures 13674 15931 15551 17417 22457 2.08 1.89 1.84 1.53 1.53 16.51 -2.39 12.00 28.94

Gems & Jewellery 79744 128575 137568 184420 214889 12.16 15.29 16.27 16.22 14.66 61.23 6.99 34.06 16.52

Drug, Phrmcutes & Fine Chemls 29833 40422 42456 48810 63554 4.55 4.81 5.02 4.29 4.34 35.49 5.03 14.97 30.21

Other Basic Chemicals 25447 31458 32351 39148 54045 3.88 3.74 3.83 3.44 3.69 23.62 2.84 21.01 38.05

Engineering Goods 135741 183998 154320 220848 279702 20.70 21.88 18.25 19.42 19.08 35.55 -16.13 43.11 26.65

Electronic Goods 13508 31301 25895 37378 42419 2.06 3.72 3.06 3.29 2.89 131.72 -17.27 44.34 13.49

Computer Software 592 1557 859 320 2559 0.09 0.19 0.10 0.03 0.17 162.75 -44.79 -62.75 699.35

Cotton Yarn/Fabs./made-ups handloom products etc. 18534 18930 18732 27936 35237 2.83 2.25 2.22 2.46 2.40 2.13 -1.04 49.13 26.14

Man-made Yarn/Fabs./made-ups etc. 11663 13919 17092 19490 24295 1.78 1.66 2.02 1.71 1.66 19.34 22.80 14.03 24.65

RMG of all Textiles 38999 50293 50791 52861 65613 5.95 5.98 6.01 4.65 4.48 28.96 0.99 4.08 24.12

Jute Mfg. including Floor Covering 1325 1376 1033 2092 2226 0.20 0.16 0.12 0.18 0.15 3.85 -24.91 102.51 6.41

Carpet 3929 3565 3482 4718 4071 0.60 0.42 0.41 0.41 0.28 -9.26 -2.32 35.49 -13.71

Handicrafts excl. hand made carpet 2046 1384 1067 1171 1332 0.31 0.16 0.13 0.10 0.09 -32.35 -22.95 9.74 13.77

Petroleum Products 114192 123398 132899 188779 267915 17.41 14.68 15.72 16.60 18.28 8.06 7.70 42.05 41.92

Plastic & Linoleum 13227 13817 15913 21297 29912 2.02 1.64 1.88 1.87 2.04 4.46 15.17 33.83 40.45

Subtotals 582621 747057 744335 967305 1240041 88.83 88.86 88.03 85.08 84.59 28.22 -0.36 29.96 28.20

Total Exports 655864 840755 845534 1136964 1465959 100.00 100.00 100.00 100.00 100.00 28.19 0.57 34.47 28.94

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Import performance India’s imports stood at Rs. 2345463 crores in 2011-12 compared to Rs. 1012312 crores in 2007-08, an

overall increase of 132 % during these five years (Table 3.5). As such there were annual growths of 39.32 % in 2011-12, 23.45 % in 2010-11, – 0.78% in 2009-10, 35.77 % in 2008-09 and 20.44 in 2007-08 thus indicating the impact of global recess/slowdown on India’s economy in the initial years.

Major Import Sources

The major source of India’s imports from top 20 countries during 2007-08 to 2011-12, their values of imports, percentage shares and annual growths in imports are given in Table 3.5. These top 20 countries have covered more than 77% value share of imports during 2011-12. Not only that the imports from these major countries for the last five (5) years remained at consistent level with shares of 74.0 % in 2007-08, 74.9 % in 2008-09, 73.7 % in 2009-10, 75.7 % in 2010-11 and 77.5 % in 2011-12, thus indicating the impact of the imports from these countries.

It can be seen from Table 3.5 that for the last five years, India’s imports from the People’s Republic of China remained consistently on top from 2007-08 to 2011-12 with the percentage shares of imports more than 10 % in each of these years with 11.2 % in 2011-12. This indicates the importance of Chinese goods in Indian markets as the shares of imports from the next four major countries during 2011-12 are much less with the second most source, the UAE had a share of 7.5 % only, followed by Switzerland (7.2 %), Saudi Arab (6.6 %), and USA (4.8 %). China, UAE, Switzerland, Saudi Arab and USA remain at the top five importing countries for last three consecutive years with combined import shares of 37.3%, 38.3% and 34.3% respectively in 2011-12, 2010-11 and 2009-10.

The percentage growth of imports from China has been between 34 – 36 % all the four years between 2008-09 to 2011-12 except 2009-10 when it was negative (1.1 %). The impact of Chinese goods on Indian markets is such that in five years period, the imports from China has become 2.4 times from Rs. 109116 crores in 2007-08 to Rs. 262592 crores in 2011-12, a growth of 141 %. However, it had also the global slowdown impact during 2009-10 when its annual growth became marginally negative (– 1.1 %).

The UAE is the second major source of imports for the last four years. Its impact on Indian economy is similar to that of China. But UAE is the major oil importing country and as such its impact is due to the increase in the price of oil in international market. The impact of oil imports and the growing prices of it at international level is such that, the import from UAE has become 3.2 times from Rs. 54233 crores in 2007-08 to Rs. 175622 crores in 2011-12, a growth of 228 %. However, it had also the global slowdown impact during 2009-10 when its annual growth became negative (– 13.34 %).

The most impact on import in recent years has occurred in the case of Switzerland. In 2007-08 and 2008-09, Switzerland was in the seventh position with import values of Rs. 39571 and Rs. 52703 respectively, but in 2009-10, it occupied the fifth position pushing Iran and Germany behind with an imports of Rs. 69232 crores. In this period, the percentage share of import value from Switzerland increased from about 4 % to more than 5 % which further increased to 6.7 % in 2010-11 and 7.2 % in 2011-12. In both these years it has pushed Saudi Arabia and USA to fourth and fifth positions and has occupied third position as far as India’s source of importing countries are concerned. During the five year period from 2007-8 to 2011-12, the imports from Switzerland has become 4.3 times with a growth of 326 %. Even in the year of global slowdown, Switzerland was among top three countries behind Qatar (38.5 %) and Indonesia (33.4 %) which had recorded not only positive growth but also with substantial growth of 31.4 % in 2009-10.

The fourth major source of import country is Saudi Arabia. It has a consistent pattern. It was the third major importing country in 2007-08 but subsequently its position has been occupied first by UAE and then by Switzerland. However, its share remains at 6 – 8 % during the last five years although in absolute terms, the value of imports in 2007-08 at Rs. 78110 crores became doubled in 2011-12 at Rs. 153109 crores with a growth of 98 %.

It is very significant that the USA which was the second major importing country with a share of 8.4% in 2007-08 lost its position over the years and in 2011-12, it is the fifth major importing country with a share of just 4.8%. In terms of annual growth, it has not done much also. As in 2007-08, the total import from USA was Rs. 84625

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crores and in 2011-12, it is just Rs. 112036 crores, thus registering a growth of about 32% only over the last five years.

Another very significant and important fact is that during the last two years, i.e. in 2011-12 and 2010-11, the composition of the top twenty countries remains the same although their relative positions have changed during these two years. Another significant development among these top twenty importing countries is that Qatar which was in the 20th position in 2007-08 has occupied the 13th position in 2011-12 with a share of 2.6% and about doubling its annual growth (100%) in 2011-12 which is the second highest growth after Iraq who has registered growth of about 121%. In five years from 2007-08 to 2011-12, the import from Qatar has increased by 6.3 times with a growth of 526%, much of it is due to increasing oil prices. Another significant development is that other than these two countries (i.e. Iraq and Qatar which are mainly oil importing countries) countries which have registered more than 50% annual growth in 2011-12 were Kuwait, Saudi Arabia, South Africa, Indonesia, Malaysia and Australia. All these countries except Saudi Arabia are not the top five share holding importing countries which is very significant.

Table 3.5: India's Imports from top 20 major countries during last five years (2007-08 to 2011-12) Value (in Rs. Crores) Percentage share Percentage growth

Country 2011-12 2010-11 2009-10 2008-09 2007-08 2011-

12 2010-

11 2009-

10 2008-

09 2007-

08 2011-

12 2010-

11 2009-

10 2008-

09

China P RP 262592 198079 146049 147606 109116 11.2 11.8 10.7 10.7 10.8 32.6 35.6 -1.1 35.3

UAE 175730 149123 91799 105926 54233 7.5 8.9 6.7 7.7 5.4 17.8 62.4 -13.3 95.3

Switzerland 168569 112740 69232 52703 39571 7.2 6.7 5.1 3.8 3.9 49.5 62.8 31.4 33.2

Saudi Arabia 154423 92855 80664 89747 78110 6.6 5.5 5.9 6.5 7.7 66.3 15.1 -10.1 14.9

USA 112026 91359 80584 84818 84625 4.8 5.4 5.9 6.2 8.4 22.6 13.4 -5.0 0.2

Iraq 90536 40977 33273 34285 27495 3.9 2.4 2.4 2.5 2.7 120.9 23.2 -3.0 24.7

Kuwait 78975 46976 38988 43199 30960 3.4 2.8 2.9 3.1 3.1 68.1 20.5 -9.7 39.5

Australia 75555 49188 58662 50497 31552 3.2 2.9 4.3 3.7 3.1 53.6 -16.2 16.2 60.0

Germany 74362 54136 48886 54922 39736 3.2 3.2 3.6 4.0 3.9 37.4 10.7 -11.0 38.2

Indonesia 70756 45136 41009 30751 19421 3.0 2.7 3.0 2.2 1.9 56.8 10.1 33.4 58.3

Nigeria 70092 49005 34377 39995 30663 3.0 2.9 2.5 2.9 3.0 43.0 42.6 -14.0 30.4

Iran 66241 49725 54636 55822 43946 2.8 3.0 4.0 4.1 4.3 33.2 -9.0 -2.1 27.0

Qatar 61913 31036 22010 15895 9889 2.6 1.8 1.6 1.2 1.0 99.5 41.0 38.5 60.7

Korea RP 61488 47712 40551 39658 24308 2.6 2.8 3.0 2.9 2.4 28.9 17.7 2.3 63.1

Japan 57516 39309 31894 35833 25458 2.5 2.3 2.3 2.6 2.5 46.3 23.3 -11.0 40.8

South Africa 53691 32525 26900 24882 14547 2.3 1.9 2.0 1.8 1.4 65.1 20.9 8.1 71.1

Belgium 49633 39179 28466 26058 17546 2.1 2.3 2.1 1.9 1.7 26.7 37.6 9.2 48.5

Hong Kong 49604 42825 22317 29733 10867 2.1 2.5 1.6 2.2 1.1 15.8 91.9 -24.9 173.6

Malaysia 45383 29746 24494 32592 24176 1.9 1.8 1.8 2.4 2.4 52.6 21.4 -24.8 34.8

Singapore 39491 32546 30623 34529 32682 1.7 1.9 2.2 2.5 3.2 21.3 6.3 -11.3 5.7 Major Countries 1818577 1274177 1005412 1029452 748900 77.5 75.7 73.7 74.9 74.0 42.7 26.7 -2.3 37.5

All Countries 2345463 1683467 1363736 1374436 1012312 100.0 100.0 100.0 100.0 100.0 39.3 23.4 -0.8 35.8

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Imports through major ports

Table 3.6 gives the value of India’s imports and the percentage shares through twenty (20) major ports for the last five years from 2007-08 to 2011-12. It can be seen from the table that the combined values of imports through these major ports accounts for about 82 % of total import value of India on 2011-12. Another significant indication is that the top 8 ports were the major top eight in the last year also although their relative positions has changed except Nhava Sheva Sea and Chennai Sea who respectively are positioned at 1st and 2nd for the last five years, thus indicating the busy schedule and importance of these two ports. However, the share of Nhava Sheva Sea has declined from 11.4 % in 2010-11 to 9.3 % in 2011-12 and that of Chennai Sea from 8.4 % in 2010-11 to 7.3 % in 2011-12. While the shares of these two top ports have declined, the shares of Paradip Sea and Mundra have increased from 2.6 % to 4.3 % in case of Paradip Sea and that from 1.9 % to 3.8 % in case of Mundra. Significantly, Mumbai Air has occupied the third position in 2011-12 from 4th position last year (2010-11) with 6.3 % share of import (Rs. 148520 crores) and replacing Delhi Air in that position. The most significant feature is that Paradip Sea has improved its 11th position in 2010-11 to 9th position in 2011-12 with import value of Rs. 101999.19 crores and an annual growth of 130.4 %. Similarly Mundra with highest annual growth of 179.3 % in 2011-12 has occupied 10th position from 15th position last year (2010-11) with import value of Rs. 90096 crores in 2011-12. Another consistent feature is that Ports such as Mumbai Air, Vadinar, Mumbai Sea, Sikka etc. maintain consistent shares of imports for the last three years which

15

varies from 5 – 6 % in these three years. The annual growth for top five ports is also quite consistent in the last two years although Delhi Air had a very significant annual growth of 114.2 % in 2010-11 from a negative growth of 22.8 % in 2009-10. This had resulted in occupying third position for Delhi Air in 2010-11 which it subsequently lost to Mumbai Air in this year (2011-12).

Table 3.6: Imports through major ports during 2007-08 to 2011-12 Value in Rs. Crores Percentage Share Percentage Growth

Port 2011-12 2010-11 2009-10 2008-09 2007-08 2011-

12 2010-

11 2009-

10 2008-

09 2007-

08 2011-

12 2010-

11 2009-

10 2008-

09

Nhava Sheva Sea 217212 192668 147985 133766 101027 9.3 11.4 10.9 9.7 10.0 12.7 30.2 10.6 32.4

Chennai Sea 170998 140902 118141 124273 88158 7.3 8.4 8.7 9.0 8.7 21.4 19.3 -4.9 41.0

Mumbai Air 148520 107641 84525 71997 73801 6.3 6.4 6.2 5.2 7.3 38.0 27.3 17.4 -2.4

Delhi Air 140697 111479 52033 67412 49289 6.0 6.6 3.8 4.9 4.9 26.2 114.2 -22.8 36.8

Vadinar 132310 97607 82083 94133 60130 5.6 5.8 6.0 6.8 5.9 35.6 18.9 -12.8 56.5 SEZ Jamnagar (Reliance) 132308 96757 63466 9298 0 5.6 5.7 4.7 0.7 0.0 36.7 52.5 582.6

Mumbai Sea 126325 85533 77964 83319 65169 5.4 5.1 5.7 6.1 6.4 47.7 9.7 -6.4 27.9

Sikka 118366 79232 76197 86110 76162 5.0 4.7 5.6 6.3 7.5 49.4 4.0 -11.5 13.1

Paradip Sea 101999 44270 38219 24326 13293 4.3 2.6 2.8 1.8 1.3 130.4 15.8 57.1 83.0

Mundra 90096 32258 38277 55855 32147 3.8 1.9 2.8 4.1 3.2 179.3 -15.7 -31.5 73.7

Kolkata Sea 81317 62751 56316 71613 60322 3.5 3.7 4.1 5.2 6.0 29.6 11.4 -21.4 18.7

Chennai Air 71168 55148 50434 40136 32078 3.0 3.3 3.7 2.9 3.2 29.0 9.3 25.7 25.1

Visakhapatnam Sea 68338 39495 42646 51969 33665 2.9 2.3 3.1 3.8 3.3 73.0 -7.4 -17.9 54.4 Ahmedabad Air Cargo Complex 59308 39194 35748 20032 16303 2.5 2.3 2.6 1.5 1.6 51.3 9.6 78.5 22.9

Kandla Sea 59178 41001 40282 48703 31189 2.5 2.4 3.0 3.5 3.1 44.3 1.8 -17.3 56.2

Cochin Sea 43239 30631 25241 24911 20650 1.8 1.8 1.9 1.8 2.0 41.2 21.4 1.3 20.6

Dehej 42250 27611 21729 21776 18767 1.8 1.6 1.6 1.6 1.9 53.0 27.1 -0.2 16.0

Bangalore Air 40222 27802 31114 26870 29365 1.7 1.7 2.3 2.0 2.9 44.7 -10.6 15.8 -8.5

Hyderabad Air 39927 27080 21355 14065 11215 1.7 1.6 1.6 1.0 1.1 47.4 26.8 51.8 25.4

Surat Hira 38653 46698 23690 2687 0 1.6 2.8 1.7 0.2 0.0 -17.2 97.1 781.6

Major Ports Total 1922431 1385758 1127445 1073251 812730 82.0 82.3 82.7 78.1 80.3 38.7 22.9 5.0 32.1

All Ports Total 2345463 1683467 1363736 1374436 1012312 100.0 100.0 100.0 100.0 100.0 39.3 23.4 -0.8 35.8

The import shares of oil importing ports such as Vadinar and Sikka, are declining consistently over these five years from 2007-08 to 2011-12. It has declined from 8 % in 2007-08 to 5 % in 2011-12 for Sikka although Vadinar was able to maintain consistent shares between 5.6 % to 6.8 % during 2007-08 to 2011-12. After the inclusion of SEZ Jamnagar as an oil importing station in 2008-09, the imports through these types of ports are also increasing. SEZ Jamnagar has become the most significant SEZ mainly due to its crude oil import which stands at the similar figures (Rs. 132308 crores and share of 5.64 %) with that of Vadinar.

As stated earlier, Delhi Air has improved its position in the last three years. It had recorded the maximum annual growth (114.2 %) of importing cargos in 2010-11 with value of import at Rs. 111479 crores although subsequently it declined to 26.2 % in 2011-12 with import value at Rs. 140697 crores.

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Major Import

Table 3.7 present India’s import by principal commodity groups during 2007-08 to 2011-12. It is seen from this table that the commodity group ‘Petroleum, Crude & Products’ has a huge impact on Indian economy with its percentage share during 2011-12 stands at 31.68 % which means almost one third of our foreign reserve goes on importing this commodity. In absolute terms, India has paid more than Rs. 7.4 lakhs crores to the oil importing countries during 2011-12. The second significant commodity group which affects Indian economy is the “Gold and Silver’ which has a share of 12.55 % with almost Rs. 3 lakhs crores of import values (Rs. 294255 crores) during 2011-12. These are the only two commodity groups which have shares at 2-digit, as the next three item groups ‘Machinery, electrical and non-electrical machinery’, ‘Electronic goods’ and ‘Pearls, precious & semi-precious stones’ have shares of 7.13 %, 6.67 % and 5.72 % occupying third, fourth and fifth positions respectively. Such is the impact of these top five item groups that their combined share of imports was about 65 % with total import values at almost Rs. 15 lakhs crores. India was spending almost two-third of its exchequer in each of the last two years to purchase these five commodities from the world.

The effects of POL and Non-POL imports vis-à-vis total imports during last three years from 2009-10 to 2011-12 is presented in Table 3.7 A in terms of absolute value, percentage share and percentage growth.

Table 3.7 A : Value, percentage share and percentage growth of POL, Non-POL items of imports for 2009-10, 2010-11 and 2011-12

Item value in Rs. crores Percentage share Percentage growth 2009-10 2010-11 2011-12 2009-10 2010-11 2011-12 2009-10 2010-11 2011-12

POL 411649 482282 743075 30.19 28.65 31.68 -2.0 17.2 54.1 Non-POL 952086 1201185 1602388 69.81 71.35 68.32 -0.2 26.2 33.4 Total 1363736 1683467 2345463 100.00 100.00 100.00 -0.8 23.4 39.3

17

It is the imports of ‘Petroleum, Crude & Products’ and the increasing price of petroleum products globally that has changed the scenario of the imports and has put countries such as Saudi Arabia, Iraq, Kuwait, UAE, etc. into the top five importing countries and also other countries like Iran, Indonesia, Qatar, etc. into the major importing countries over the last five years. Table 3.8 present the petroleum products (POL) imported from these countries and the total import values from these countries. It can be seen from Table 3.8 A that these countries are significant mainly for POL imports. As only UAE (57 %) Brazil (34 %), Iran (15 %), Saudi Arabia (10 %) and Qatar (10 %)

18

have other type of significant imports. Otherwise, all the top 10 countries depend heavily on their import of petroleum products to India.

As can be seen from Table 3.7A that the share of petroleum import is more than 30 % since 2007-08 except in 2010-11 when it came down slightly at 28.65 %. In terms of growth, there was negative growth of about 2 % in 2009-10; otherwise it is significantly positive with 24 % in 2007-08, 31 % in 2008-09, 17 % in 2010-11 and 54 % in 2011-12. In fact it was the negative growth of POL group which had great impact on the overall negative growth of country’s total imports in 2009-10 as in all other years since 2007-08, the growths were very high with 20 % in 2007-08, 36 % in 2008-09, 23 % in 2010-11 and 39 % in 2011-12.

‘Gold & Silver’, the second most important item group after ‘Petroleum, Crude & Products’. It has a share of 12.55 % to the total imports in 2011-12 compare to 11.50 % in 2010-11 and 10.3 % in 2009-10 (Table 3.7). As stated above, Import of ‘Petroleum, Crude & Products’ and ‘Gold & Silver’ have shares at 2-digit with 31.68 % and 12. 55 % respectively and a combined share of 44.23 % in 2011-12, thus putting all other item groups far behind as far as the import is concerned. This trend of 2-digit share is noticed for these two item groups for the last three years, thus showing the impact of these two item groups on country’s economy.

In terms of growth, the ‘Gold & Silver’ import had an annual growth of only 8.5 % in 2007-08. However, in 2008-09, the ‘Gold & Silver’ import shoot up to Rs. 100467 crores with an annual growth of 39.7 % (Table 3.7). Thereafter, the growth remains almost at same level in 2009-10 (39.8 %) and 2010-11 (37.8 %), but in 2011-12 the growth become very high at 52.02 % with Rs. 294255 crores of import for this item group.

‘Machinery, electrical and non-electrical machinery’ comes third in terms of share and values of imports are concerned. It contributes 7.13 % import share in the total merchandise imports with a value of Rs. 167198 crores during 2011-12, a slight decrease in share compare to 2010-11 when its share was 7.49 % with import value of Rs. 126162 crores. It can also be seen (Table 3.7) that there is a steady decrease of shares of imports of ‘Machinery, electrical and non-electrical machinery’ items over the last five years from 9.09 % in 2007-08 to 7.13 % in 2011-12. Although the annual growth is recorded as 32.5 % in 2011-12, there was a negative growth (6.6 %) of import of this commodity group in 2009-10.

‘Electronic Goods’ is the 4th important item group in 2011-12 although it was 5th in 2010-11. Its share of value to the total imports is declining over the last five –six years but is steady between 6 – 8 %. In 2011-12, it has import share of 6.7 %, slightly less than the previous year which was 7.2 %. Although, there was annual growth of 21.7 % in 2010-11, it has significantly increased to 29.5 % in 2011-12.

The item group ‘Pearls, precious & semi-precious stones’, which had share of 9.4 % of the total imports in 2010-11 and was in the 3rd position in terms of percentage share, has significantly less progress in 2011-12 with import values at Rs. 134266 crores and percentage share of 5.7 %. This has pushed this item group to the 5th position with a negative annual growth of 14.8 % in 2011-12.

Besides these five major commodity groups with larger shares of imports, the commodity groups that have more than 2 % shares are ‘Organic and Inorganic Chemicals’ (3.85 %), ‘Coal, Coke, & Briquettes’ (3.56 %), ‘Transport equipment’ (2.88 %), ‘Metaliferrous ores and metal scrap’(2.73 %), ’Iron and steel’ (2.45 %) and ‘Fertilisers, crude and manufactures’ (2.27 %).

The maximum growth has been recorded for ‘Sulphur & Unroasted Iron Pyrts’ with an annual growth of 107.9 % in 2011-12, although there was 61.2 % growth in 2010-11 and a significant negative growth (– 76.3 %) in 2009-10. The commodity groups which recorded significant positive growths in 2011-12 against negative growths in 2010-11 are ‘Cotton Row & Waste’ (69.9 % in 2011-12 and – 49.8 % in 2010-11), ‘Pulses’ (27.4 % in 2011-12 and – 28.6 % in 2010-11), ‘Fertilizers, Crude & manufactures’ (69.3 % in 2011-12 and – 0.7 % in 2010-11), ‘Wood & Wood products’ (60.4 % in 2011-12 and – 0.9 % in 2010-11), ‘Transport equipment’ (-6.1 % in 2010-11 and 29.5 % in 2011-12), etc. The commodity groups like Sulphur & Unroasted Iron Pyrts (107.9 % in 2011-12 and 61.2 % in 2010-11), and News Print (32.01 % in 2011-12 and 66.65 % in 2010-11) have recorded high positive growths in both the years 2010-11 and 2011-12.

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Import of Petroleum Products Due to increase of petroleum prices globally, the value of import of petroleum products has increased. As a result, the import scenario in terms of percentage shares of item groups, sources countries, major port formation, etc. has changed. Table 3.8 shows the value, percentage share and percentage growth of top 10 major countries from where petroleum items have been imported during last four years. It may be seen from the Table 3.8A that the top 10 countries from where petroleum items have been imported, have shares of 79.2 %, 76.3 %, 79.4 %, and 85.3 % respectively during 2008-09, 2009-10, 2010-11 and 2011-12. Of these 10 countries, the top 5 countries, namely Saudi Arabia, Iraq, Kuwait, UAE and Nigeria have combined shares of about 60 % of total imports of petroleum products in 2011-12 with Saudi Arab at the first position with 18.3 % share. Saudi Arabia not only has topped the importing countries but also has crossed one lakh crores of petroleum import value (Rs. 136061 crores), the second best is Iraq with Rs. 90068 crores with a share of 12.1 %. In fact all the top 5 countries have shares more than 9 % during 2011-12. Saudi Arabia has consistently topping the list with more than 17 % shares. Significantly, Iran, which was in the second position in 2008-09 and 2009-10, has been pushed to fifth position in 2010-11 and sixth position in 2011-12. Qatar is one country which has improved significantly. It was in 8th position with a share of 3.1 % in 2008-09, has occupied 7th position in 2011-12 but the percentage share is very high with 7.5 % and importing value at Rs. 56019 crores.

Table 3.8: Petroleum import from 10 major countries during 2008-09 to 2011-12

Value (in Rs. Crores) Percentage share Percentage growth

Country 2008-09 2009-10 2010-11 2011-12 2008-

09 2009-

10 2010-

11 2011-

12 2009-

10 2010-

11 2011-

12

SAUDIARAB 82488 72586 81694 136061 19.6 17.6 16.9 18.3 -12.0 12.5 66.6

IRAQ 34063 33057 40734 90068 8.1 8.0 8.4 12.1 -3.0 23.2 121.1

KUWAIT 41401 37391 44313 75969 9.9 9.1 9.2 10.2 -9.7 18.5 71.4

UAE 46084 30342 42791 72204 11.0 7.4 8.9 9.7 -34.2 41.0 68.7

NIGERIA 39628 33965 48425 69453 9.4 8.3 10.0 9.3 -14.3 42.6 43.4

IRAN 50693 48922 42547 56709 12.1 11.9 8.8 7.6 -3.5 -13.0 33.3

QATER 13160 19429 27588 56019 3.1 4.7 5.7 7.5 47.6 42.0 103.1

VENEZUALA 18477 13329 23720 32024 4.4 3.2 4.9 4.3 -27.9 78.0 35.0

ANGOLA 6499 19987 23169 31486 1.5 4.9 4.8 4.2 207.5 15.9 35.9

BRAZIL 212 5114 7792 13718 0.1 1.2 1.6 1.8 2312.3 52.4 76.1

Total of top 10 countries 332705 314122 382772 633711 79.2 76.3 79.4 85.3 -5.6 21.9 65.6

All countries 419968 411649 482282 743075 100.0 100.0 100.0 100.0 -2.0 17.2 54.1

In terms of growth, Iraq and Qatar have recorded more than 100 % growth among these top 10 major petroleum importing countries with 121 % and 103 % annual respectively. These top 10 countries’ combined growth is at 65.6 % which is very significant because it is controlling the entire world market. As far as other significant annual growth noticed for the countries are Saudi Arabia (66.6 %), Kuwait (71.1 %), UAE (68.7 %), and Brazil (76.1 %). In fact all the top 10 countries have annual growth more than 35 %. Besides these top 10, two countries which have very significant annual growth in petroleum imports are Mexico (200 %) and Egypt (153 %) which has percentage shares at 1.1 % and 1.7 % respectively.

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Table 3.8 A: Petroleum import from 10 major countries during 2008-09 to 2011-12

(value in Rs. Crores)

2011-12 2010-11 2009-10 Country POL % share

of total non_pol % share

of total total % share

of POL imp

POL % share of total

non_pol % share

of total

total % share of POL

imp

POL % share of total

non_pol % share

of total

total % share of POL

imp

Saudi Arabia 136061 90.0 15139 10.0 151200 18.3 81694 88.0 11161 12.0 92855 16.9 72586 90.0 8078 10.0 80664 17.6

Iraq 90068 99.5 459 0.5 90527 12.1 40734 99.4 243 0.6 40977 8.4 33057 99.4 216 0.6 33273 8.0

UAE 75969 42.9 101242 57.1 177211 10.2 42791 28.7 106332 71.3 149123 8.9 30342 33.1 61457 66.9 91799 7.4

Nigeria 72204 99.0 731 1.0 72935 9.7 48425 98.8 580 1.2 49005 10.0 33965 98.8 412 1.2 34377 8.3

Kuwait 69453 95.3 3417 4.7 72871 9.3 44313 94.3 2663 5.7 46976 9.2 37391 95.9 1597 4.1 38988 9.1

Iran 56709 85.2 9876 14.8 66586 7.6 42547 85.6 7178 14.4 49725 8.8 48922 89.5 5713 10.5 54636 11.9

Qatar 56019 90.5 5854 9.5 61874 7.5 27588 88.9 3448 11.1 31036 5.7 19429 88.3 2581 11.7 22010 4.7

Venezuela 32024 99.7 105 0.3 32129 4.3 23720 99.9 28 0.1 23748 4.9 13329 98.7 178 1.3 13507 3.2

Angola 31486 98.8 372 1.2 31858 4.2 23169 99.6 104 0.4 23273 4.8 19987 99.8 31 0.2 20018 4.9

Brazil 13718 66.5 6898 33.5 20616 1.8 7792 48.5 8272 51.5 16064 1.6 5114 31.5 11146 68.5 16260 1.2

Top 10 countries 633711 81.5 144094 18.5 777805 85.3 382772 73.2 140011 26.8 522782 79.4 314122 77.5 91409 22.5 405532 76.3 All countries 743075 100.0 482282 100.0 411649 100.0

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Table 3.7: Imports by Principal Commodities during 2007-08 to 2011-12 Import Value (Rs. Crores) Percentage Share Percentage Growth

Commodity groups 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2007-

08 2008-

09 2009-

10 2010-

11 2011-

12 2007-

08 2008-

09 2009-

10 2010-

11 2011-

12 Cotton Raw & Waste 663 912 1690 1241 624 1059 0.09 0.12 0.09 0.04 0.05 37.6 85.3 -26.6 -49.8 69.9 Vegetable Oil (Fixed) 9540 10301 15819 26483 29860 46255 1.02 1.15 1.94 1.77 1.97 8.0 53.6 67.4 12.8 54.9 Pulses 7008 8931 0.42 0.38 27.4 Pulp and Waste paper 2893 3132 3681 4178 5208 6524 0.31 0.27 0.31 0.31 0.28 8.3 17.5 13.5 24.7 25.3 Textile yarn Fabric, made-up articles 9400 9510 11156 5366 13759 17279 0.94 0.81 0.39 0.82 0.74 1.2 17.3 -51.9 156.4 25.6 Fertilisers, Crude & manufactures 13732 20307 59569 31755 31533 53311 2.01 4.33 2.33 1.87 2.27 47.9 193.3 -46.7 -0.7 69.1 Sulphur & Unroasted Iron Pyrts 495 1457 2875 682 1099 2286 0.14 0.21 0.05 0.07 0.10 194.4 97.2 -76.3 61.2 107.9 Metaliferrous ores & metal scrap 37764 31854 36331 36450 44217 64123 3.15 2.64 2.67 2.63 2.73 -15.6 14.1 0.3 21.3 45.0 Coal, Coke & Briquettes, etc. 20710 25862 45948 42511 44670 83596 2.55 3.34 3.12 2.65 3.56 24.9 77.7 -7.5 5.1 87.1 Petroleum, Crude & products* 258572 320655 419968 411649 482282 743075 31.68 30.56 30.19 28.65 31.68 24.0 31.0 -2.0 17.2 54.1 Wood & Wood products 4684 5456 6035 7461 7396 11857 0.54 0.44 0.55 0.44 0.51 16.5 10.6 23.6 -0.9 60.3 Organic & Inorganic Chemicals 35433 39883 56016 56473 69350 90296 3.94 4.08 4.14 4.12 3.85 12.6 40.5 0.8 22.8 30.2 Dyeing/tanning/colouring mtrls. 2695 3000 3782 4284 5368 7003 0.30 0.28 0.31 0.32 0.30 11.3 26.1 13.3 25.3 30.4 Artificial resins, plastic materials, etc. 11696 14839 18109 23675 31304 36134 1.47 1.32 1.74 1.86 1.54 26.9 22.0 30.7 32.2 15.4 Chemical material & products 5980 6544 9614 10874 13278 16595 0.65 0.70 0.80 0.79 0.71 9.4 46.9 13.1 22.1 25.0 Newsprint 2407 2227 3720 2245 3741 4938 0.22 0.27 0.16 0.22 0.21 -7.5 67.0 -39.7 66.7 32.0 Pearls, precious & Semi-precious stones 33881 32114 76130 76678 157596 134266 3.17 5.54 5.62 9.36 5.72 -5.2 137.1 0.7 105.5 -14.8 Iron & Steel 29071 34987 43531 39098 47275 57552 3.46 3.17 2.87 2.81 2.45 20.4 24.4 -10.2 20.9 21.7 Non-ferrous metals 11787 14116 26203 14264 18590 23428 1.39 1.91 1.05 1.10 1.00 19.8 85.6 -45.6 30.3 26.0 Machine tools 6703 8890 10369 7855 10275 14311 0.88 0.75 0.58 0.61 0.61 32.6 16.6 -24.2 30.8 39.3 Machinery, electrical & non-electrical 71540 92007 115770 108154 126162 167198 9.09 8.42 7.93 7.49 7.13 28.6 25.8 -6.6 16.6 32.5 Transport equipment 42709 80981 60803 55472 52112 67474 8.00 4.42 4.07 3.10 2.88 89.6 -24.9 -8.8 -6.1 29.5 Project goods 8126 5208 14668 22217 27996 42221 0.51 1.07 1.63 1.66 1.80 -35.9 181.6 51.5 26.0 50.8 Professional instrument, Optical goods, etc. 10593 12349 20211 17157 19200 25146 1.22 1.47 1.26 1.14 1.07 16.6 63.7 -15.1 11.9 31.0 Electronic goods 72275 83138 107128 99419 121017 156504 8.21 7.79 7.29 7.19 6.67 15.0 28.9 -7.2 21.7 29.3 Medcnl. & Pharmaceutical products 5866 6734 8649 9959 11114 14288 0.67 0.63 0.73 0.66 0.61 14.8 28.4 15.1 11.6 28.6 Gold & Silver 66272 71934 100467 140440 193562 294255 7.11 7.31 10.30 11.50 12.55 8.5 39.7 39.8 37.8 52.0 Total Import 840506 1012312 1374436 1363736 1683467 2345463 100.00 100.00 100.00 100.00 100.00 20.4 35.8 -0.8 23.4 39.3

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