INDIAS TRADE PATTERNS: EXPORTS AND IMPORTS

Prepared by : Trinayan Bhuyan & Mufidul Islam

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Introduction
Indias trade pattern has to be looked in terms of its trade policies and the role they play in Indias trade with its major trading partners, more specifically in terms of its export and import.
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BASIC facts on Indias Trade Pattern

Trade liberalization alongside Economic Liberalization led to significant changes in the pattern of Indias trade growth. India experienced much higher growth in its trade with developing region and Asia-Pacific countries than it did with high income countries.
Having been an agro-based economy, Indian trade has always been devoid of manufactured or industrial goods. So, post liberalization, imports dominated the Indian trade scene in the form of heavy machinery and information technology products and, thus, created an imbalance of trade.
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Indias Export
Indian trade has undergone massive restructuring following the 1991 liberalization Policies. Ever since, India's exports have experienced a growth rate of 18.11%. The various other export commodities that India exports are: Precious stones and metals Vehicles Petroleum products Apparel Machinery Iron and steel Chemicals

Indias Import
Ever since LIBERALISATION, India's the import sector that has experienced growth rate of 34.30%. India major Imports the Indian economy is headed towards becoming a developed economy and all its sectors are in need of machinery and energy. Therefore, Indian imports are dominated by crude oil and machines. Other imported products are: Fertilizer Iron and steel Gold & Silver Electronic Goods Machinery non-Electrical. Organic & Inorganic Chem. Metalliferous Ores pdts. Coal. Transport Equipment
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Indias Trade Basket

Trade Partners
India's main export countries are:

UAE US

China
Singapore
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Trade Partners
India's import with International partners : China Saudi Arabia US

UAE
Iran
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Indias Major Trading Partners

Recent Trend
Direction of export is moving towards southern countries. China is being a biggest supplier for India; similarly china has best market for trading is India. Trend is towards developing countries.

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Indias Export: Shifting Southwards

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Indias International Trade

Indian trade was impacted by the global downfall of 2007-2009. Indian exports fell from $200.9 billion in 2008 to $165 billion in 2009.India ranked 22nd in the world in terms of export volume.

In 2009, total imports amounted to $253.9 billion, down from the 2008 figure of $322.3 Billion. India ranked fifteenth in the world in terms of import volume.
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Indias International Trade

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Indias Trade in Services

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Certain Findings
The 1991-93 and 2001 trade reforms appear to have put Indias economic growth on a higher trajectory. Since 2001, growth rates for total non-agricultural exports, nonagricultural imports and agricultural exports have all increased significantly both overall and across virtually all regional groupings. These trends are reflected in the significant increase in Indias trade openness since the reform period. In 1990, before trade liberalization began Indias merchandise trade as a share of GDP was 10 percent. By 2005, merchandise trade share of GDP had increased to nearly 30 percent. The exception to the considerable increase in growth in trade after the two periods of trade reform is India's agricultural imports. Since the initial reforms in 1991-93 the rate of growth in India's agricultural imports slowed. This could be a result of India's remaining restrictions on agricultural imports.
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Conclusion
India's total trade as a share of total world trade remains low compared to its size but the potential for further growth is high. The analysis provides further evidence that India's increased openness to trade is associated with increased trade growth.

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Thanks

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