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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 inthe 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.

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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 2008-

09 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.

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Export Diversification

In 2009, India had a global export share of 1 percent or more in 48 outof 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. Amongthese, three items, pearls, precious stones, metals, coins, etc.Manmade filaments, and ores, slag, and ash had an increase in globalshare 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, vegetableplaiting materials, vegetable products; and coffee, tea, mate, andspices, lost global shares in 2009 over 2008. Noticeable is the neardoubling in share of pearls, precious stones, metals, coins, etc., withgrowth in trading activity, and the fall of nearly 2 percentage points inlac, gums, resins, vegetable saps, and extracts, due to crop failurescoupled with competition from substitute products and competingcountries. Of the remaining 38 items, 11 lost their shares in 2009 over2008.