Exports By Major Market

 While Indias manufactures exports to the EU suffered a high negative growth in 2009-10, the recovery in the first half of 2010-11 was moderate . Among manufactures, the performance of different product groups was varied. Textiles exports to the US and EU, there was a fall in shares with a greater fall in the case of the latter(EU). Negative export growth to the EU continued even in the first half of 2010-11, while there was moderate export growth to the US after three successive years of negative growth. Gems and jewellery also, in the first half of 2010-11, the share of exports to both the US and the EU fell with a higher fall in case of the former. In Exports of engineering goods to the US and EU there was a fall in shares with a relatively higher fall in the case of the latter in 2009-10 and a rise in shares in the first half of 2010-11. In the case of chemicals and related products, the share of exports to the US increased by nearly 3 percentage points, while it was stagnant in the case of the EU and fell slightly. The slowdown in Indias exports to the EU where the recovery from global recession is weak is a cause for concern.

 

Import composition
The composition of imports also underwent changes in this decade. The share of food and allied products imports which fell to 2.1 per cent in 200809 from 3.3 per cent in 2000-01, increased to 3.7 per cent in 2009-10 and fell to 3.2 per cent in the first half of 2010-11 with slight fall in import shares of edible oils and pulses The share of fuel imports, however, remained at around 33 per cent. The most notable change is the sudden rise in share of capital goods imports from 10.5 per cent in 2000- 01 to 15.0 per cent in 2009-10 and again a fall to 13.1 per cent in the first half of 2010-11 due to the see-saw movement in shares of imports of transport equipment. The share of gold and silver and electronic goods in the import basket decreased in the first half of 2010-11 compared to 2008-09 and 2009-10. The share of pearls, precious, and semi-precious stones saw a see-saw movement with negative growth in 2009-10 and very high growth (129 per cent) in the first half of 2010-11.

Export Diversification
In 2009, India had a global export share of 1 percent or more in 48 out of a total of 99 commodities at the two-digit Harmonised System (HS) level, but a significant share of 5 per cent or more in 12 items. Among these, three items, pearls, precious stones, metals, coins, etc. Manmade filaments, and ores, slag, and ash had an increase in global share by 0.5 per cent point or more in 2009 over 2008. Six items, which include silk, carpets and other textile floor coverings, Lac, gum, resins vegetable saps and extracts, cotton, vegetable plaiting materials, vegetable products; and coffee, tea, mate, and spices, lost global shares in 2009 over 2008. Noticeable is the near doubling in share of pearls, precious stones, metals, coins, etc., with growth in trading activity, and the fall of nearly 2 percentage points in lac, gums, resins, vegetable saps, and extracts, due to crop failures coupled with competition from substitute products and competing countries. Of the remaining 38 items, 11 lost their shares in 2009 over 2008.