Foreign Trade and Investment of India
AN OVERVIEW
2
India’s International Trade
Towards Increased Global Integration through Trade
Exports Imports Total
India’s Merchandise Trade Turnover increased from US$95 bn in FY02 to 414
CAGR: 24.5% (2002-08)
30.3%
27.8%
US$ 391 bn in FY08 (CAGR of 27.8%) India’s Exports increased from US$44
312 252 195 114 61 53 142 149 112 78 64 84 103 126 163 186 251
bn in FY02 to US$ 163 bn in FY08 (CAGR of 24.5%) India’s Imports increased from US$ 51 bn to US$ 251 bn (CAGR of 30.3%) Share in world merchandise exports in 2007 – 1.04%; Rank – 26th
95 51 44
FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY 2008
Source: Ministry of Commerce & Industry.
3
India’s Export: Shifting Southwards
India’s Export Market FY 2001 (US$44 bn) India’s Export Market FY 2008 (US$163 bn)
Af ri c a
4.1
%
Asia 38.7%
North America 22.4%
Asia 51.7%
Africa 7.1% North America 13.5% LA C 3. 5% Others 0.3%
CIS & Baltics 2.3%
Europe 25.9%
LAC 2.2% Others 4.3%
CIS & Baltics 1.1%
Europe 22.9%
Direction of exports moving towards the Southern countries, particularly Asia. Share of Asia increased from 39% to 52% during 2001 – 2008. Future trade flows to be geared towards the developing nations (buttressed by GOI policies).
4
India’s Major Trading Partners
Top Export Markets (FY 2008, US$ bn)
USA UAE China Singapore UK HK Netherlands Germany Belgium Italy 7.4 6.7 6.3 5.2 5.1 4.2 3.9 10.8 15.6 20.7
Top Import Sources (FY 2008, US$ bn)
China USA Saudi Arabia UAE Iran Germany Switzerland Singapore Australia 13.5 10.9 9.9 9.8 8.1 7.8 7.7 Total Imports: US$ 251 bn 21.0 19.4 27.1
Total Exports: US$ 163 bn
Kuwait
Source: Ministry of Commerce & Industry.
5
India’s Trade Basket
Top Export Items (FY 2008, US$ bn)
Petroleum Prod Gems & Jewellery Machinery & Instr Pharma & Fine Chem RMG Cotton Manuf. of metals Tranport equip Iron ore Cot. yarn & Fabrics Prim & Semi-fin. Iron & Steel
Top Import Items (FY 2008, US$ bn)
Petroleum Crude & Prod Electronic Goods Transport equip Machin. excpt electrcl, electonic Gold Iron & Steel Prls. Prec/Semi Prec Stones Metalifer. ores & metal scrp Organic chem Coal, Coke & Briquittes
28.4 19.7 9.1 7.6 7.5 7.1 7.0 5.8 4.7 4.2
79.6 20.7 20.1 19.9 16.7 8.2 8.0 7.9 7.2 6.4
Source: Ministry of Commerce & Industry.
6
India’s Trade in Services
Total Trade in Services (US$ bn)
Exports Imports Total
…of which Software Exports
40.3
CAGR: 31.3% (2002-08)
24.0%
28.2%
31.3
138 121 92 71 44 35 28 43 58 76 88 50
R AG C
.1% 2 :3
17.7
23.6
12.9 9.9 7.7
31 14 17
38 17 21
44 17 27
FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY 2008
FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008
Source: RBI.
Source: NASSCOM.
7
India’s Direct Investment Flows
Both foreign direct investment inflows & outflows have shown an increasing trend (US$ mn) 32435
Sectoral pattern of approved Indian OFDI (April-June 2008)
FDI Inflows FDI Outflows
22079
Others 32.3%
18369
Manufacturing 36.9%
13107
10073
6130
6051
Trading 15.3%
4029
5035
4322
NonFinancial Services 12.3%
8961 5043
1490
2000-01
829
2001-02
2002-03
2003-04
1495
Financial Services 3.2%
1892
1770
2004-05
2005-06
2006-07
2007-08 2008-09*
* Apr-Jun Source: RBI Bulletin, October 2008; Online Database on Indian Economy; Exim Bank Analysis.
1797
8
India’s Overseas Investment
Approved ODI across countries
Total : US$ 3.2 bn (Apr– June 2008)
Saudi Arabia 2.5% UAE 8.7% Canada 2.1% Malaysia 2.0% British Virgin Island 1.6% Switzerland 1.4%
Destinational analysis of Indian approved ODI stock reveals that regional spread countries. Singapore, Netherlands and the US were the largest destinations for Indian approved ODI accounting for 2/3rd of the total, followed by Mauritius and UAE. distribution out across is...
Please join StudyMode to read the full document