FOREIGN TRADE TRENDS

India's Foreign Trade

Exports

• India's exports during November, 2011 were valued at US$ 22.32 billion which was 3.87 per cent higher in Dollar terms than the level of US$ 21.49 billion during November, 2010. Cumulative value of exports for the period April-November 2011 -12 was US$ 192.69 billion as against US$ 144.66 billion registering a  growth of 33.21 per cent in Dollar terms over the same period last year.

• As per the commodity-wise exports data released by Directorate General of Commercial Intelligence and Statistics (DGCI&S) during 2011-12 (April-June), manufactured goods continued to maintain the largest share with 66 per cent, followed by petroleum products (18.4 per cent) and primary products (13.2 per cent). The rise in the share of manufactured goods essentially emanated from improvement in the share of engineering goods. Reflecting the robust demand in the new markets like Latin America and Africa, exports of engineering goods during April-June 2011 were more than double the level recorded during the corresponding period of previous year. Within engineering, exports of all major categories, viz., transport equipment, machinery and instruments, manufactures of metals, iron & steel and electronic goods have recorded higher growth.
  
  
• Within manufacturing, other commodities groups, viz., leather & manufactures, chemicals & related products and textiles & textile products witnessed higher growth during April-June 2011 as against the corresponding period of 2010-11. However, petroleum products and ores and minerals were the sectors which recorded decelerated growth during April-June 2011. Lower growth in commodities, viz., ores & minerals possibly reflects reduced demand for basic inputs due to concerns with regard to global slowdown.
  
  
• Furthermore, the impact of quantitative restrictions imposed on exports of raw cotton was evident in negative growth recorded during April-June 2011. However, the export of raw cotton has now been placed on open general licensing by the government since July 31, 2011. During 2011-12 (April-June), the share of developing countries and Organization of the Petroleum Exporting Countries (OPEC) countries in India’s exports improved as compared to April-June 2010.It reflects the impact of government’s policy focus on diversification of Indian exports to other markets, especially those located in Latin America, Africa, parts of Asia and Oceania.
  
  
• Country-wise exports during 2011-12 (April-June) indicate that the UAE continued to remain the largest importer of Indian goods with a share of 11.6 per cent, followed by the US (10.4 per cent), Singapore (8.0 per cent), China (5.1 per cent) and Indonesia (3.0 per cent). These five countries together accounted for around 38 per cent of India’s total exports during April-June 2011. In spite of uncertainties prevailing in Europe, India’s exports to Germany, U.K., Netherlands, Italy and Belgium grew significantly during April-June 2011.Among major export destinations, US, Japan, China and Hong Kong were the economies where India’s exports showed lower growth during April-June 2011.

Imports

• India's imports during November, 2011 were valued at US$ 35.92 billion representing a growth of 24.55 per cent in Dollar terms over the level of imports valued at US$ 28.84 billion in November, 2010. Cumulative value of imports for the period April-November, 2011-12 was US$ 309.53 billion as against US$ 237.66 billion registering a growth of 30.24 per cent in Dollar terms over the same period last year.
  

• Oil imports during November, 2011 were valued at US$ 10307.1 million which was 32.28  per cent higher than oil imports valued at US$  7792.1 million in the corresponding period last year.  Oil imports during April-November, 2011-12 were valued at US$ 94116.5 million which was 42.67 per cent higher than the oil imports of US$ 65967.8 million in the corresponding period last year.
  

• Non-oil imports during November, 2011 were estimated at US$ 25615.3 million which was 21.69 per cent higher than non-oil imports of US$ 21050.2 million in November, 2010. Non-oil imports during April - November, 2011-12 were valued at US$ 215413.9 million which was 25.46 per cent higher than the level of such imports valued at US$ 171696.3 million in April - November, 2010-11.
  

• As per the latest available data on commodity-wise imports released by Directorate General of Commercial Intelligence and Statistics (DGCI&S) for 2011-12 (April-June), petroleum and petroleum products continued to be the major item of India’s imports during April-June 2011, followed by capital goods and gold & silver. Import of gold & silver, in absolute terms, was more than double of that recorded during the corresponding period .The quantum of Petroleum, Oil, and Lubricants (POL) imports recorded a moderate growth of 4.6 per cent during April-June 2011 as against 7.2 per cent during the corresponding period of the preceding year 2010-11.
  
  
• Non-oil imports during 2011-12 (April-June) at US$ 79.4 billion witnessed a growth of 23.7 per cent as against 40.3 per cent during the corresponding period of previous year. Deceleration in non-oil imports was mainly on account of decline in imports of export related items and certain bulk items, viz., fertilisers, manufactured items and iron & steel. Import growth in most of export-related items (viz., pearls, precious and semi-precious stones, chemicals, textile yarn and fabric) was either negative or lower possibly reflecting incipient signs of export moderation in these sectors in forthcoming months. Import of certain categories of capital goods either declined or showed decelerated growth raising concerns regarding domestic investment scenario.
  
  
• During 2011-12 (April-June), share of developing countries in total imports of India was marginally lower than the corresponding period of 2010-11. On the other hand, the share of OECD and OPEC group of countries rose to 30.8 per cent and 35.0 per cent, respectively.Country-wise, China continued to be the largest source of imports with a share of 11.5 per cent in total imports, followed by the Switzerland, UAE, Saudi Arabia and Iraq. These five countries together constituted around 38.6 per cent of India’s imports. During April-June 2011, there was a distinct shift in source countries for imports. Switzerland became the second largest source country for imports replacing UAE while Iraq emerged as fifth largest source of import replacing Australia. In absolute terms, imports from Switzerland grew to more than double while that from Iraq recorded an increase of 271.6 per cent during the period.Import of items from Switzerland which recorded significant increase during the period include non-ferrous metals, machinery (except electrical & electronics) and electronic goods, etc.
  

Trade Balance

The trade deficit for April-November, 2011-12 was estimated at US$ 116.84 billion which was higher than the deficit of US$ 93.00 billion during April-November, 2010-11.

Source:Ministry of Commerce and Industry,Government of India