Summer Internship Project Report
On
INDIAN EXPORTS THE NEXT TRAJECTORY:
Mapping Products and Destinations; Boost
India-USA Bilateral Trade
At Confederation of Indian Industries (CII)
By
ANISH NARANG
BMS-3FB
(Roll No- 17090)
In Partial Fulfillment of the Requirements for the
Award of the Degree in
Bachelor of Management Studies
(Year of Submission)
SHAHEED SUKHDEV COLLEGE OF BUSINESS
STUDIES
(University of Delhi)
i
DECLARATION
I hereby declare that this internship report, submitted to Shaheed Sukhdev College of
Business Studies, University of Delhi is a record of an official work done by me under the
guidance of Mrs. Bidisha Ganguly, Chief Economist. The project is submitted in the partial
fulfillment of the requirements for the award of the degree of Bachelor of Management
Studies. The results embodied have not been submitted to any other University or Institute
for the award of any degree or diploma.
Anish Narang
INTERN (CII)
I confirm that Anish Narang has worked for 6 Weeks in the capacity of Intern in the
Economic Research Department of Confederation of Indian Industry (CII).
Mrs. Bidisha Ganguly
CHIEF ECONOMIST (CII)
ii
ACKNOWLEDGEMENT
The time I spent in Confederation of Indian Industry (CII) as an intern from May to July 2019
was a memorable one for me as it was rich in experience sharing and helped me discover my
potential. I have had so many rich experiences and opportunities that I personally believe will
forever shape and influence my professional life while fostering personal growth and
development.
In this report, I hope to highlight the enormous opportunities to boost India-USA Bilateral
Trade. Although I identified the shortcomings in India’s Mining Policy followed by the
recommended changes, analysed Sectoral Growth in India over a period of 5 months, further
I identified and analyzed the companies involved in Management and Organizational Practice
Survey being Conducted by the Centre for Technology, Innovation and Economic Research
(CTIER) also but I am not allowed to disclose them, because of data sensitivity.
This report would not have been possible without the contribution and collaboration of
others. My sincere gratitude to Chief Economist and Economic Consultants of CII, for
endorsing my application for Internship and guiding me during my tenure.
To all of you, I extend my deepest Gratitude.
iii
TABLE OF CONTENTS
S.No.
1)
2)
3)
4)
5)
6)
7)
8)
9)
Title
ABSTRACT
INTRODUCTION
RESEARCH METHODS AND PROCEDURES
DATA ANALYSIS AND FINDINGS
CURRENT POLICY REGIME
RECOMMENDATIONS
CONCLUSION
REFERENCES
ANNEX
Page No.
1
1-4
5-6
6-11
12
13-17
18
19
20-33
LIST OF TABLES:
S.No.
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
11)
Name of Table
INDIA’S RANK IN US’s PERSPECTIVE
RIME SERIES ANALYSIS OF TRADE OF GOODS AND
SERVICES
TIME SERIES ANALYSIS OF BILATERAL TRADE OF
INDIA WITH US AND WORLD
INDIA’S EXPORT IMPORT OF SERVICES WITH WORLD
INDIA’S IMPORTS FROM USA
INDIA’S IMPORTS FROM THE WORLD
INDIA’S EXPORTS TO USA
INDIA’S EXPORT TO THE WORLD
INDIA’S SHARE IN WORLD’S TOP IMPORTS
INDIA’S SHARE IN GLOBAL EXPORTS
INDIA’S SHARE IN US’S IMPORTS
Page No.
20
20
21
21
22
23
24
25
26
27-30
30-33
iv
I)
ABSTRACT:
India’s export strategy has assumed critical importance in recent years owing to structural
shifts in the global trade architecture, rise in domestic competitiveness, upcoming mega
regional trade agreements, and other factors. Within this scenario and given limited
resources, India needs to identify the right products for targeted exports as well as
proactively strategize for marketing them in the top importing nations of the world. This
paper seeks to identify such product lines at the 4-digit HS code level. It undertakes a
dual identification process, both by outlining the top imported products of the top
importers and by studying India’s current export profile in these products. By using
various filtration factors, it determines 12 products where India has production
capabilities and that it can promote extensively in USA. Recommendations are offered to
boost exports of these identified products. On the domestic front, these are aimed at
increasing production and easing hurdles to trade. On the international front, suggestions
focus on targeted marketing and brand building as well as identifying and addressing
barriers in the importing partner nations
II)
INTRODUCTION:
A) Purpose of the Study:
Exports are a critical component of India’s growth performance. Boosting export
growth, especially in commodities where India has high potential in becoming a leading
exporter, requires a targeted strategy to identify such possible export products. Apart
from how much and what products the country exports, identifying the right markets for
these products is also crucial for devising an export-led growth strategy. This paper
attempts to develop a matrix of which products would be best for India to promote. The
exercise is undertaken at the 4-digit Harmonized System (HS) code level.
The study aims at analyzing the current scenario of India-USA bilateral trade,
identification of product wise highest bilateral trade of both Products and Services with
World and its comparison with India’s trade with USA, identifying the products in which
India can increase dependency on USA and vice-a-versa. It further aims at analyzing the
data sets involved in identifying and suggesting the required changes in respective
products having high trade with world but low trade for same products with USA, which
can be used to boost USA’s trade with India.
B) Context of the Study:
The United States and India view one another as important strategic partners to
advance common interests regionally and globally. Both of them are the largest and the
oldest democracies in the world and are further aligned on the subject of economic
growth and the foundation of each is built on shared common values. Both the
economies have been consistently trying to increase the bilateral trade over a period of
time.
Unlike in the past, the post-cold war India-U.S. trade and economic relations have
undergone a dramatic change, by letting in a much better and broader economic
relations. Economic relations provided the much-needed sound foundation for
Page | 1
enlarging the strategic relations. Since then, there witnessed continues improvement in
every aspects of bilateral economic relations. This research strongly favors the fact that
there is huge scope for improvement in trade and economic relations given the fact that
both sides can work hard to remove the present barriers.
Amidst, US-s Trade War, USA is looking for alternate locations for shifting their
industries and they have considered India to be one of those alternatives because India
being a labor-intensive country has grown a lot within past 15-20 years.
Today, there are very good reasons why United States would like to engage in a closer
economic and trade relations with India. India's economic performance speaks for
itself. Since the liberalization of its economy, 1India was able to maintain an annual
average growth rate between five to seven per cent. Given the current growth rate, it is
projected that by the end of the second decades of the twenty first century, India would
become the third largest economic power behind United States and China. India, with
the second largest population in the world, the eight largest industrial economy, ranked
second to U.S. in terms of world's largest pool of scientist and engineers.
It has been observed that India has been ranking 13th in the overall import of goods
from USA. A significant fall in imports had been noticed in the year 2014 but India has
been trying to increase the trade with USA by implementing the liberal policies hence
it has been observed that India’s dependency on USA for its imports is increasing at
increasing rates as per the analysis there has been a shift in India’s percentage share in
USA’s total Exports to the world from 1.491% - 1.990% in past three years.2
India is among the largest importers in the world, ranking 11th in the list, as of 2018.
Its total imported value during 2018 stood at around US$ 507 billion. In contrast,
India’s total exports to the world stood at around only US$ 323 billion, with India’s
rank as an exporter at the 18th position. Indian exports grew at a Compound Annual
Growth Rate (CAGR) of 6.31% between 2009- 10 and 2018-19, expanding from US$
178.75 billion in 2009-10 to US$ 329.54 billion in 2018-19 (Figure 1).3
Table 9 presents the world’s top importers with their imported value in 2017 along with
India’s total exports to these countries in the same year. USA is the world’s leading
importer with an imported value of US$ 2,408 billion in 2017, followed by China,
Germany, Japan and the UK in the top five slots.
1
Live Mint- Can the Indian economy really achieve double digit growth? - Asit Ranjan Mishra
2
Refer Table-1
Note: All data, except where noted otherwise, is from the International Trade Center (Intracen)
3
Page | 2
India’s total exports 2009-2018 (in US$ billion)
Note: Estimates for 2018-19 provisional, accessed on 29th April 2019 from Department of Commerce, System on Foreign Trade
Performance Analysis (FTPA)
Source: Department of Commerce, Government of India
It has also been noticed that there was a significant fall in Exports (12.93%) and Imports
(5.13%) to and from USA in 2009, which had been recovered the very next year with an
approximate rise of 32.29% in Exports and 12.13% rise in Imports but percentage
increase in Imports has been reported more than increase in Exports has been witnessed
during 2018, with 8.39% rise in Exports and 19.23% rise in Imports.4
It may be noted that India’s overall export share in the world’s total imports of US$
17,958 billion stands at 1.65%.5 As per this, it is seen that its presence in most of the top
importing nations, except Hong Kong and USA, is below its average share for world
imports. India’s share as a percentage of world’s top imports is not substantial,
particularly in the top three categories of electrical machinery and equipment, machinery
and appliances, and vehicles, other than railways or tramways. Even in the categories of
organic chemicals and pharmaceutical products, where India has fared reasonably well
over the years, there is potential to expand production further to enhance export
performance. India’s share is highest in the category of natural or cultured pearls and
precious stones. However, scope for expanding exports in this group is limited and India
is already a leading exporting nation.
Low market share in the top importing markets as well as in the top imports of the world
places India far behind in the league of the major exporters on the global map. For
capturing greater global market share, it is imperative to identify products where India
has a competitive edge, along with the potential markets for exporting these products.
More importantly appropriate policies must be in place for encouraging production of
such export items, with domestic policies aligned to the external environment of the
potential markets. With this backdrop, this paper identifies certain key products that India
should focus on for expanding production to enhance its export performance. The
analysis approaches the product list from the two angles of requirements of importing
nations and significance in India’s export profile. It also indicates which products can be
targeted specifically in the market of USA which is among the top ten importing nations.
4
5
Refer Table-2
Refer Table- 9
Page | 3
C) SIGNIFICANCE OF THE STUDY:
The current pattern of International Trade, which over the past few decades have
coalesced around the concept of Global Value Chain (GVC) is under strain. The world’s
two largest trading nations, the US and China are engaged in disputes that are
challenging the nature of global trade altogether. With these shifting dynamics, corporate
choices about investment destinations are likely to be repositioned. India is uniquely
positioned to capture some of the migration in the foreign direct investment. With the
increasing globalization in order to become completely self-reliant in the near future
India needs to fill its pocket with foreign exchange which can be possible by enhancing
trade with USA because the currency of USA i.e. US Dollar is considered as a standard
currency for exchange in any market. It has been witnessed that India is having very less
trade with USA over a long period of time. The idea of boosting the trade among two
nations will not only benefit USA but also help India to become self-reliant in the near
future. It had been observed that India’s bilateral trade with USA were limited in those
products in which India had been doing maximum trade with other countries so the
significance of the study was to identify the specific product line in which the trade was
lacking between the two major countries.
Page | 4
III) RESEARCH METHODS AND PROCEDURES:
A) RESEARCH DESIGN:
The research since aimed at identifying the key product lines where the bilateral trade
between the two Economic Giants lacked i.e. identifying the products where the trade
between the two countries lacked so that we are able to focus on the respective
products and increase the trade with USA for that specific product. The researched had
been designed in the following manner:
i)
Summarizing Current US India Trade Relation
ii)
Time Series Analysis of:
a) India's Export of Product to World
b) India's Export of Product to USA
c) India's Import of Product from World
d) India's Import of Product from USA
e) India's Export of Services to World
f) India's Import of Services from World
iii)
Identification of USA’s top 15 imports from the world (at 2-digit level)
iv)
For each of these 15 short-listed product categories (at 2-digit level),
identification of the top 4 products at 4-digit level
v)
For these products (at 4-digit level):
a) Determination of India’s global export share
b) Determination of India’s share in US imports
c) Determination of India’s global export rank
d) Determination of India’s rank in US import
Note*- This exercise has been undertaken for 2018
vi)
vii)
Identification of India’s Top 15 Imports from the World and USA
Identification of India’s Top 15 Exports to the World and USA
Note*-This exercise has been done simultaneously for both 2-digit & 4-digit HS Code and
from the perspective of India and USA to be able to neglect the errors committed due to
Adjusted and Non-Adjusted Figures.
viii)
Comparing the Export Import of Top 15 Products (2 Digit HS Code) classified
into top five, 4-digit HS Code of India with respect to World and USA and
vice-a-versa.
IN ORDER TO GET BETTER RESULTS, WE HAVE CONSIDERED A TIME LAG OF
11 YEARS.
B) DATA COLLECTION, PROCEDURE AND INSTRUMENTS USED FOR
DATA ANALYSIS:
The research involved the collection of data through secondary sources and screening
and filtering in such a way that we are able to compare the datapoints between the two
countries thus easing out the analysis of the data. The Data has been collected through
the Online Market Analysis Tool- ITC Trade Map (US Census). The filtered data have
been summarized and analyzed through Excel.
Page | 5
We have chosen the US Census as our Data Point for the Trade of Goods between
the two countries because it provides unadjusted data while on the other side, we
have used data set provided by BEA for Trade of Services between the two
countries which provides the adjusted data set, this has been done due to the
unavailability of data at the US Census.
2) We have found that the difference between the adjusted trade and unadjusted trade
ranges from 0.1-0.8 percent, hence considering as the stochastic error we have taken
a combination of both the data points.
1)
Page | 6
IV) DATA ANALYSIS AND FINDINGS:
Note*- The internship involved multiple researches, so the Data Analysis and
the findings have been specified separately for each research as follows:
1) It has been noticed that there was a significant fall in Exports (12.93%) and Imports
(5.13%) to and from USA in 2009, which had been recovered the very next year with an
approximate rise of 32.29% in Exports and 12.13% rise in Imports but percentage
increase in Imports has been reported more than increase in Exports has been witnessed
during 2018, with 8.39% rise in Exports and 19.23% rise in Imports.6
2) India’s Export of Goods to World in 2008 accounted for 182 USD Bn though it included
only 11.77% as a share of USA with an amount equivalent to 21 USD Bn which has
considerably grown to 52 USD Bn, hence leading to a CAGR (Compounded Annual
Growth Rate) of 5.9% (2008-18) with respect to World and 9.2% with respect to USA .7
India's Export to World v/s USA for Products
USD BILLION
India's Export to World
400
350
300
250
200
150
100
50
0
337
India's Export to USA
318
296
323
264
260
42
46
52
2016
2017
2018
42
43
40
2013
2014
2015
Years
Further it had been observed that in 2008 India’s Import from World accounted for 316
USD Bn where USA had a share of 7.75% in India’s total Import with an amount
equivalent to 24 USD Bn which has increased to 33 USD Bn in 2018, thus leading to a
CAGR of 2.9% with respect to USA and 4.9% with respect to World.8
6
Refer Table-2
Refer Table-3
8
Refer Table- 3
7
Page | 7
India's Import to World v/s USA for Products
USD BILLION
600
462
500
400
489
508
466
459
391
350
316
444
357
266
300
200
100
24
16
19
23
24
23
20
20
20
24
33
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
0
YEARS
India's Import from World
India's Import from USA
Thus, we can comment that Increase in Exports to USA is considerably growing at a
faster pace with respect to world. The total trade of India with USA had been reported
498 USD Bn with respect to world and 46 USD Bn with respect to USA in 2008 which
had been seen increasing over a period of Time 831 USD Bn (World- 2018) and 84 USD
Bn (USA- 2018) hence leading a CAGR of 5.3% and 6.3% respectively.
USD BILLION
India's total trade of Products wrt World v/s USA
900
800
700
600
500
400
300
200
100
0
764
779
803
831
777
740
655
570
498
617
443
46
35
43
55
61
65
63
61
62
70
84
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
YEARS
Total Trade from World (A+C)
Total Trade from USA (B+D)
3) Trade of Services by India with respect to World accounted for 106 USD Bn (Export)
and 88 USD Bn (Import) thus leading a CAGR of 6.3% and 6.4% respectively.9 Data sets
for India’s Trade in Services with USA were not available hence we had to neglect this
because India is least involved in trade of Services with USA over a long period of time.
9
Refer Table- 4
Page | 8
USD BILLION
India's Export-Import of Services with World
200
180
160
140
120
100 106
88
80
60
40
20
0
2008
184
139
93
81
117
115
2009
2010
149
146
130
127
125
2011
2012
2013
157
128
2014
156
124
2015
162
154
134
2016
2017
YEARS
India's Export to World
India's Import from World
4) While considering 2-digit HS Code we had been able to analyze that India had been
consistently dealing in trade with USA and in all the similar products over a period of
time. HS Code 71, 27, 84, 85, 29 are the top five products in which India deals in
respective figures 168.6, 65, 52.4, 43.2, 22.6 Bn (Imports from the World) and 7, 6.7, 4,
1.8, 1.7, 1.6 USD Bn (Imports from USA) and HS Codes like 71, 30, 84, 27, 87 have
been reported as Top 5 Exports to USA 10.5, 5, 3.7, 3.1, 2.8, 2.5 USD Bn for USA)
followed by 27, 71, 84, 87, 29 have been reported as the top 5 Exports to the world.10
5) FOCUS PRODUCTS:
The focus list of products primarily includes sectors where manufacturing capacity can be
enhanced. The list may be divided into two parts: The first part covers products where
India is already performing well as a global exporter; The second part includes potential
products where capacities need to be enhanced.
A) Achievers:
In certain products at the 4-digit level, India has already established itself as a leading
exporter in the top importing countries. Characterized by high exported values and high
world market shares, the top performing products at the HS 2-digit level enjoy ranks of 15 for at least one of the top ten importing nations. The categories include natural or
cultured pearls, apparel and clothing accessories, copper and articles thereof and
pharmaceutical products.
The exported value in 2017 for all these products exceeded US$ 1 billion and India’s
share of exports in the world 1.67%11, respectively. The top performing products under
these categories at the HS 4-digit level include:
• jewellery and precious metals (7113);
10
Refer – TABLE- 5, 6, 7, 8
11
Based on calculations from International Trade Centre Data
Page | 9
• women’s blouses excluding knitted or crocheted (6206);
• refined copper (7403);
• women’s/girl’s suits, jackets, blazers, dresses (6204) and
• medicaments pertaining to therapeutic uses (3004).
As stated earlier, the study looks at potential exports where manufacturing capacity can
be enhanced and therefore the category of diamonds (7102), ferro alloys (7202) and iron
ores (2601) have been excluded, despite ranking as top Indian exports to the top
importing nations of the world along with high world export shares and high exported
value.
B) Aspirers:
Even though India ranks among the top 10 sources in these products, there is potential to
do much better and capture greater market shares. While most of these products have
significant export values, the world market shares for some of these are on the lower side.
Therefore, if scaled up, India has the potential of becoming a global leader in the exports
of these categories.
The aspirer group primarily includes the HS 2-digit level categories of vehicles, apparel
and clothing accessories (knitted), iron and steel, organic chemicals, plastics, apparel and
clothing accessories (not knitted) and machinery and appliances.
Specific products under this category at the 4-digit level with significant export value of
over $1 billion and export shares above 1.67% are:
• tractor accessories and motor vehicles (8708);
• knitted or crocheted T-shirts (6109);
• flat-rolled products of iron or non-alloy steel (7208);
• cyclic hydrocarbons (2902);
• heterocyclic compounds (2933);
• flat-rolled products of iron or non-alloy steel (7210);
• polyacetals (3907);
• men’s or boy’s suits (6203); and
• parts suitable for use solely or principally with internal combustion (8409).
Products with export value less than US$1 billion and low export shares (less than
1.68%) but among top 10 importers to at least one of the top importing nations are:
• plates, sheets (3920);
• parts suitable for use solely or principally with internal combustion piston (8409);
• pharmaceutical preparations (3006);
• articles for the conveyance or packaging of goods (3923);
• furniture and parts thereof (9403); and
• jerseys, pullovers (6110).
As these products are already a top import in the top importing nations, they can do
significantly better if manufacturing is scaled up along with better promotion and
marketing activities.
Page | 10
Products with export value less than US$1 billion, low export shares and not a top import
are:
• women's or girls' suits, ensembles (6104);
• jerseys, pullovers (6110); and
• sulphonamides (2935).
Special focus should be on expanding the production of the categories belonging to
apparel and clothing accessories as India enjoys competitive advantage both in terms of
raw materials and costs along with skilled manpower in these sectors.
C) Products where capacities need to be enhanced:
There are certain products where India despite exporting significant values (over US$
500 million) has not been able to capture greater market shares, thus not appearing in the
list of products identified as top exports above. The export value demonstrates that the
country enjoys the capability to produce and export these items but has not made inroads
into key markets. These include the items as below:
• motor cars and motor vehicles (8703);
• turbojets, turbo propellers (8411);
• telephone sets (8517);
• structures and parts such as bridges etc. (7308);
• motor vehicles for transport of goods (8704);
• insulated wire (8544);
• electrical apparatus (8536) and
• articles of plastic (3926).
Products such as telephone sets (mobile phones), motor cars and vehicles and turbo jets
are some of the top exported items globally and India needs to expand capacities in their
production urgently to enhance its export presence. Lack of effective marketing strategies
could be a potential reason for the poor performance of these products in the top
importers.
Page | 11
V)
CURRENT POLICY REGIME:
The Foreign Trade Policy (FTP) 2015-2020 governs all export and import related
activities and aims to enhance the country’s exports and their expansion in foreign
markets. Under the current FTP, the Government introduced the Merchandise Exports
from India Scheme (MEIS), replacing five other similar incentive schemes, including
Focus Products and Focus Market Schemes and Market Linked Focus Product Scheme.
The objective of the scheme is to enhance the export competitiveness of certain focus
products in the global market by offsetting infrastructural inefficiencies and bringing
down associated costs of these products.12 Countries are sectioned into three groups with
different incentive structure for each group. Focus products eligible for incentives are
given at the 8-digit level. The range of products and countries is vast, with the original
list of 2015 including almost 5,000 tariff lines which has been further expanded several
times.
However, the MEIS scheme being subject to elimination following India’s increased per
capita income, a different export promotion strategy is to be developed.
To enhance competitiveness of MSME exports, the Government of India increased the
interest equalization rate from 3% to 5% under the Interest Equalization Scheme on Pre
and Post Shipment Rupee Export Credit. Additionally, with effect from January 2, 2019,
merchant exporters have also been included, allowing the equalization rate of 3% per
annum for export of products covered under 416 tariff lines identified under the
scheme.13
With the objective of establishing a robust ‘Quality Ecosystem’ in India and enhancing
the ‘Brand India’ label, the Government of India launched the Indian National Strategy
for Standardization (INSS). The INSS is the result of a broad consensus arrived over
several consultations through national and regional conclaves held between 2014 to 2017
that included the participation of experts and stakeholders from Union and State
Governments, industry, and regulatory bodies, among others. With the intent of
positioning standards as a key driver of all economic activities, the INSS provides a
vision for India to become a global leader in standards setting and developing global best
practices. Enhancing the competitiveness of Indian goods and services in domestic
international markets through standard setting is a key priority of the INSS. 14
Under GST, the issue of liquidating pending input tax refund for exporters has also been
addressed effectively, with 93% of the refunds processed as of 31st July 2018.15 The
remaining refunds mainly comprise those that pertain to manual filing by tractor
exporters. Therefore, these would need to be taken up by the jurisdictional officers for
bulk filing and should be processed expeditiously.
Given this backdrop of the current policy regime of the country and based on the paper’s
findings related to India’s export potential in certain products, several measures are
suggested in the next section for enhancing the competitiveness of Indian exports.
12
https://www.eepcindia.org/MEIS/about-MEIS-scheme.aspx
http://dgft.gov.in/sites/default/files/Trade%20Notice%20No%2045%20dt%2001022019_0.pdf
14 Indian National Strategy for Standardization, INSS, Department of Commerce, Ministry of Commerce & Industry
15 http://pib.nic.in/newsite/PrintRelease.aspx?relid=181374
13
Page | 12
VI) RECOMMENDATIONS:
A focused export strategy must be devised, based on two streams. First, domestic
manufacturing of the identified products should be aggressively promoted. Second,
marketing of these products in the top importing markets must be taken up strongly.
Below are some policy recommendations for bolstering Indian exports in general and for
products with significant export potential, as identified in this paper.
A) Promoting domestic production
1) Industrial Clusters:
Industrial clusters are known to have some advantages in promoting the growth of a
particular sector or industry (Exim Bank, 2014) and are established as an effective
means of industrial development. Enterprises can significantly benefit from the
common activities and facilities that industrial clusters offer such as management
expertise and effective marketing techniques, skilled labor, availability of financing
tools, lower costs etc.
Therefore, to build competitiveness of the identified products with export potential,
strengthening industrial clusters where these goods are manufactured is critical along
with related infrastructure and port connectivity. Common competitiveness centers
must be created at industrial clusters to provide holistic competitiveness solutions and
comprehensive services to industry.
For example, the capital goods segment at present has a limited number of Common
Facility Centers and players have to invest in services such as testing and machining
facilities, raising overall manufacturing costs (Exim Bank, 2014). Industrial clusters
can be very useful in such situations which can lower costs due to manufacturing
consolidation and therefore, development and upgradation of clusters for high export
potential products must be a top priority of the Government.
The small and medium sized enterprises can also benefit significantly from industrial
clusters. The Ministry of MSME introduced the cluster development approach for
enhancing the productivity and capacity building of the Micro and Small Enterprises
(MSEs) with the objectives of setting up of common facility centers, upgrading
infrastructure and supporting the sustainability and growth of these enterprises.
However, these schemes often suffer from poor implementation and design, shortage
of funds and lack of strategic focus. Thus, a higher budget must be allocated for
cluster development of enterprises and measures must be in place for their effective
implementation.
2) Integrating with Global Value Chains: Participating and integrating into global
value chains (GVC) is key for high export growth as well as higher growth prospects
for emerging economies. According to the United Nations, there appears to be a
positive correlation between participation in GVCs and GDP per capita growth rates,
with the fastest growing GVC participation economies growing 2% points above the
average (UNCTAD, 2013).
However, India’s integration is only partial in the GVC and with respect to only
certain products. As per World Trade Organization’s (WTO) trade in value added
Page | 13
data, India’s total GVC participation stands only at around 43.1%.16 Additionally, the
foreign value-added content of India’s exports has declined almost 9 percentage
points between 2012 and 2016, from 25.1% in 2012 to 16.1% in 2016 as per the
OECD’s Trade in Value Added Indicator (TIVA).17
For example, the Indian textile and clothing industry, although relatively better
integrated into GVCs, is linked at the lower end of the supply chain as it imports
fewer inputs used in production of textiles but exports inputs such as dyes and cotton
in large amounts to many countries. India should effectively target the shares of many
East Asian and South East Asian countries in the textile and clothing industry, which
have now moved up the value chain by specializing in capital intensive products
(Gupta, 2015).18
Adopting an integrated value-chain approach is critical for establishing global
linkages which would require multi-faceted interventions. These include establishing
logistics and infrastructure support, skill development incentives, awareness on export
promotion, marketing of products as well as better understanding of GVCs.
Reviewing taxation policies is also important and issues such as inverted duty
structures must be addressed.
Foreign direct investments (FDI) are an important model for participation in GVCs.
Key multinational companies could be invited to invest in significant terms in these
identified products.
At the same time, focus must also be on indigenous production and design for higher
revenues and profits, especially for the products with high export potential. The small
and medium sized enterprises must be given the requisite support in terms of better
infrastructure, skilled workforce, knowledge etc. so that they can develop their own
products and move up the value chain.
3) Facilitating Special Economic Zones (SEZ) and Coastal Economic Zones (CEZ):
The revival and revamping of SEZ policy is a critical component for boosting Indian
manufacturing exports. The Special Economic Zones (SEZ) policies must be
reframed to create and extend broad based support to industry clusters that cater to
exports as well as domestic markets. Tax incentives such as a onetime 100% income
tax deduction for a period of 10 years must be in place without a sunset clause i.e.
irrespective of the date of establishment of a unit. To incentivize exporters to make
further investments and expand operations, minimum alternate tax must be removed
for all units.
At the same time, efforts must be in place to make India’s policy more WTO
compliant with the help of schemes that cater to the needs of the Indian exporters,
particularly for sectors with significant export potential. Other incentives must also be
introduced such as interest subvention schemes for maintaining interest rate parity,
duty free provision for capital goods, schemes rebating indirect taxes on operations
and provision of free incoming and outgoing warehousing facilities.
16
Trade in Value Added and Global Value Chains: Statistical Profiles https://www.wto.org/english/res_e/statis_e/ miwi_e/IN_e.pdf
Trade in Value Added: OECD http://www.oecd.org/industry/ind/TIVA-2018-India.pdf
18
9 http://wtocentre.iift.ac.in/workingpaper/workingpaper33.pdf
17
Page | 14
For example, in the chemicals sector, the import duties on feedstock and
intermediates must be suitably calibrated to incentivize domestic manufacturing of the
identified products. Petroleum and petrochemical investment regions should be fasttracked.
The creation of Coastal Economic Zones (CEZ) with incentives and facilities similar
to those in SEZs must be facilitated to further boost exports. These would help in
attracting investments and in turn boost both exports and domestic production.
Fourteen CEZs have been identified along the coastline of the country in the National
Perspective Plan of the Agartala Programme.19 These must be fast-tracked with
appropriate policy interventions in place.
4) Trade and Investment Agreements: Trade and investment agreements must be
strengthened to develop strong value chains and sourcing of raw materials and
intermediate inputs from partner countries for manufacturing.
Among the top ten importing nations, India has Comprehensive Economic
Partnership Agreements (CEPA) only with Japan and South Korea. In the last few
years, India’s trade deficit has widened despite additional market access provided by
these trading partners.
Therefore, the trade agreements need to be used more effectively to leverage market
access opportunities. Issues such as inverted duty structures, higher capital costs,
investments etc. which might be affecting India’s trade position need to be examined
and addressed to boost bilateral trade. As an example, Japan presents a huge
opportunity for the Indian pharmaceutical industry.
India at present is party to thirteen Free Trade Agreements (FTAs) and there are
ongoing negotiations with seven more including a Regional Comprehensive
Partnership (RCEP) with ASEAN and six other Asian nations. The EU is a market
with huge potential, particularly in areas such as textiles. The ongoing negotiations
may be concluded in a time bound manner in close consultation with industry. The
Bilateral Investment Treaties (BITs) with respect to taxes and investments must also
be reevaluated and amended to facilitate investments. A favorable and stable policy
environment for foreign participation in the identified sectors should be the objective.
5) Standards and Certifications: The standards and compliances under the emerging
mega regional trade agreements such as Comprehensive and Progressive Agreement
for Trans-Pacific Partnership, RCEP, and others is much higher than those in the
Indian market.
Lack of standards and certifications have adversely impacted the export
competitiveness of many industries, including sectors such as chemicals,
pharmaceuticals and medical devices. Mandatory standards for manufacturing with
adequate testing and certification bodies and harmonizing Indian standards with
global standards will contribute to enhancing export competitiveness. A National
Standards Mission can be instituted for fast tracking standards setting in line with
international benchmarks.
19
Potential for Enhancing Exports from Andhra Pradesh, Exim Bank Research Brief, Exim Bank, 2017
Page | 15
Mandatory standards must be established for both producers and sellers across the
value chain, at par with global standards. For boosting MSME exports, a Government
agency may be set up which provides guidance and raises awareness on standards and
certifications for exports and also helps MSMEs in finding potential customers in
certain key markets.
6) Technology and Innovation: For enhancing competitiveness in exports of the
specified products, initiatives must be undertaken such as building robust and secure
digital infrastructure, early use of technology in schools, simplifying the patent
process, incubation centers in tier-2 and tier-3 cities, setting up of centers of
excellence to handhold companies in technology development, among others.
Capacities need to be enhanced for products such as motor cars and motor vehicles
(8703), turbojets, turbo propellers (8411), structures and parts such as bridges etc
(7308), which have significant export values but very low global shares.
MSMEs must also be supported for adopting Industry 4.0 to facilitate exports.
Training and guiding exporters on advanced manufacturing technologies and adopting
modern technology-based methods of marketing for exploring and capturing new
markets are further necessary steps.
Production in sectors with future potential such as electric vehicles, certain biological
and new medical technology equipment, etc. can also be strategized in advance for
stepping up with the help of targeted incentives.
7) Boosting Hi-tech Exports: India’s share in some of the world’s top imports in
categories such as electrical machinery, mechanical appliances, optical and surgical
apparatus continues to be very low. Some of these sectors also cover hi-tech products
and with the advent of Industry 4.0, global trade in these products is expected to
increase further. Thus, there is also a need to build competencies in hi-tech products.
At present, there are no specific policies that are designed for promoting the
manufacturing of the hi-tech sectors in which India has high export potential.
B) Market Promotion:
Promotion and marketing of the identified products in the top ten importing nations is
required in a systematic and strategic manner.
1) Non-tariff Barriers: There is a need to explore why Indian exports and their shares have
not expanded in the top importing nations despite large export values. For example,
India’s export share of pharmaceutical products as a percentage of Japan’s total imports
is a meagre 0.22%. This is despite the fact that India is one of the leaders in terms of
highest number of drug approvals granted by the US Food and Drug Administration
(USFDA).
Complying with extensive product requirements and trade regulations poses significant
challenges for exporters. The global environment has undergone major changes in the last
few years and an increasing trend towards protectionist policies, especially among the
advanced economies have altered trade dynamics. New standards relating to environment
and health are being introduced, resulting in hurdles to trade. Regulatory concerns and
Page | 16
pricing pressures in the global markets are significantly impacting India’s exports as well.
These non-tariff barriers need to be identified in the specific destination countries and
taken up with the respective governments.
2) Tailored Export Strategies for Top Markets: There is a need to develop specific
export strategies that target the top ten importers. The strategies must be designed taking
into consideration the external environment of the particular export market to promote the
identified exports with potential, with the help of dedicated offices tasked with promotion
of such products. Special emphasis must be placed on markets such as the US, UK, Hong
Kong and Italy, where India has substantial export shares (Table 1).
The strategies should also incorporate skilling and training of workers with respect to
specialized knowledge about the focus market including specific exports for promotion,
language training, marketing knowledge etc.
3) Policies: For expanding the market share of Indian product portfolio, the brand building
initiatives must be well integrated with India’s commercial missions abroad through
structured engagements with diplomats. To incentivize greater marketing of products
overseas, income tax deduction on marketing expenses should be doubled.
Products with significant export potential, as identified in this paper, must be brought
under the ambit of the MEIS scheme as long as it is applicable and greater emphasis must
be placed on boosting these specific products and their efficient promotion and marketing
in the top global markets. Accordingly, the Export Promotion Councils (EPCs), set up
with the objective to promote and develop Indian exports, should actively take up the
promotion and marketing of the identified products.
Page | 17
VII) CONCLUSION:
Exports is a direct component of a country’s Gross Domestic Product. Thus, boosting
exports is key for achieving higher growth and economic prospects. India is the fastest
growing major economy in the world and is expected to grow at the rates of 7.3% in 2019
and 7.5% in 2020, according to International Monetary Fund’s World Economic Outlook
April 2019 Report, at rates much higher than global growth rates. However, despite
achieving impressive growth over the last few years, India’s share of exports in the world
remain low, around 1.68%. It is therefore imperative for India to establish a focused
export led strategy that aims to enhance the competitiveness of products in which it has
significant export potential, for fueling further growth as well as sustaining the high
growth it has achieved so far. While a key focus should be to develop competencies in
products where India has a natural comparative advantage, it is also important to develop
competitiveness in the top globally traded commodities, where India has the potential to
expand production and target the top international markets as key export destinations.
India’s export share in the world’s top importing nations is significantly low, which puts
it far behind in the league of worlds’ leading exporters. Thus, it is imperative to identify
products where India has a competitive edge and expand production to step up India’s
global share in key markets.
Through an extensive branching exercise, this paper developed a matrix of potential
products where India has significant capacities to step up production, considering a
combination of factors including world export shares and export values. Some key
products identified are in the sectors of apparel and clothing, organic chemicals,
machinery and mechanical appliances, pharmaceutical products, among others. A focused
export strategy along with appropriate policy interventions and incentives must be in
place to boost the production of identified products in the country. At the same time,
marketing and branding policies must be realigned for these products, keeping in mind
the increasingly uncertain nature of the external environment, characterized by rising
protectionist tendencies and changing global trade dynamics.
Page | 18
VIII) REFFRENCES:
Exim Bank (2017). Potential for Enhancing Exports from Andhra Pradesh. Exim
Bank.
Cuaresma, J., & Worz, J. (2005). On Export Composition and Growth. Review of
World Economics, Vol. 141, 33-49.
International Monetary Fund (2019). World Economic Outlook: Growth
Slowdown, Precarious Recovery. Washington, DC: International Monetary Fund.
Gupta, N. (2015). India's Textile and Clothing Industry in Global Value Chains
and its Linkages with other Asian Countries. Centre for WTO Studies,
CWS/WP/200/33.
Exim Bank (2014). India's Hi-Tech Exports: Potential Markets and Key Policy
Interventions, Occasional Paper No. 164. Export-Import Bank of India.
Confederation of Indian Industry (2018). Aiming for the Big League.
Confederation of Indian Industry. Confederation of Indian Industry (2018).
Reform Agenda for Sustained Growth - Suggestions. New Delhi: Confederation of
Indian Industry .
Ministry of Commerce and Industry, Government of India (2018). Indian National
Strategy for Standardization: Evolving A Quality Ecosystem. Ministry of
Commerce and Industry, Government of India.
Ministry of Micro, Small and Medium Enterprises, Government of India (2018).
Unlocking the potential of MSME exports. Ministry of Micro, Small and Medium
Enterprises, Government of India.
UNCTAD. (2013). Global Value Chains and Development: Investment and Value
Added Trade in the Global Economy. United Nations.
Page | 19
IX)
ANNEX
TABLE- 1
INDIA’S RANK IN US’s Perspective
Unit: US Dollar thousand
USA Total
USA's Export to
India's
%
Year
Export
India
Rank
Change Difference
2018 1,66,40,55,581
3,31,20,080
13
1.990%
0.329%
2017 1,54,62,72,961
2,56,88,862
13
1.661%
0.170%
2,16,35,671
2016 1,45,10,23,530
13
1.491%
0.063%
2015 1,50,18,45,864
2,14,51,880
13
1.428%
0.094%
2014 1,61,97,42,900
2,16,07,499
13
1.334%
-0.049%
2013 1,57,75,87,300
2,18,11,337
13
1.383%
Source*- International Trade Statistics
TABLE – 2
TIME SERIES ANALYSIS OF TRADE OF GOODS AND SERVICES
Year
Units 2009 2010
Exports from India to USA
USD 21,33 29,68
Goods
Mn
6
3
Service USD 12,22 14,71
s
Mn
2
1
USD 33,55 44,39
Total
Mn
8
4
Percentage
Change
12.93 32.29
Imports into India from USA
USD
16,48 19,34
Goods Mn
0
5
Service USD
10,32
s
Mn
9,977
2
USD
26,45 29,66
Total
Mn
7
7
Percentage
Change
-5.13 12.13
Unit: USD Million
2011 2012 2013 2014
2015
2016
2017
2018
36,33
8
17,37
6
53,71
4
40,67
3
18,77
3
59,44
6
41,98
1
20,38
7
62,36
8
45,52
6
22,43
1
67,95
7
44,90
2
24,65
9
69,56
1
46,12
0
25,81
7
71,93
7
48,69
7
28,13
6
76,83
3
54,51
6
28,76
1
83,27
7
20.99
10.67
4.92
8.96
2.36
3.42
6.81
8.39
21,68
9
11,78
0
33,46
9
22,19
5
12,30
8
34,50
3
21,91
3
13,31
8
35,23
1
21,62
5
15,32
5
36,95
0
21,51
5
18,54
5
40,06
0
21,68
0
20,61
6
42,29
6
25,72
4
23,74
8
49,47
2
33,18
3
25,80
0
58,98
3
12.82
3.09
2.11
4.88
8.42
5.58
16.97
19.23
Page | 20
TABLE-3
TIME SERIES ANALYSIS OF BILATERAL TRADE OF INDIA WITH US AND
WORLD
Unit: USD Billion
Denotation
Particulars
A
India's Export to World
B
India's Export to USA
C
India's Import from World
D
India's Import from USA
Total Trade from World
E
(A+C)
Total Trade from USA
F
(B+D)
2008 2015 2016 2017 2018
182 264 260 296 323
21
40
42
46
52
316 391 357 444 508
24
20
20
24
33
CAGR
5.9%
9.2%
4.9%
2.9%
498
655
617
740
831
5.3%
46
61
62
70
84
6.3%
TABLE-4
INDIA'S EXPORT-IMPORT OF SERVICES WITH WORLD
Particulars
India's Export to World
India's Import from
World
Total Trade from World
(G+H)
Unit: USD Billion
CAGR 2008 2018
2017
0
6.30%
UNITS
USD Bn
2008
106
2014
157
2015
156
2016
162
2017
184
USD Bn
88
128
124
134
154
0
6.40%
USD Bn
194
285
280
296
338
0
6.40%
Page | 21
TABLE-5
India's imports from United States of America
Value in
Value
Product
Product label
2018
in 2018
code
USD'000
USD'Bn
Natural or cultured pearls,
precious or semi-precious
7.0
stones, precious metals, metals
'71
clad ...
6953158
'27
Mineral fuels, mineral oils and
products of their distillation;
bituminous substances; mineral
...
'84
Machinery, mechanical
appliances, nuclear reactors,
boilers; parts thereof
'85
Electrical machinery and
equipment and parts thereof;
sound recorders and
reproducers, television ...
1800914
'29
Organic chemicals
1733751
6.7
6717262
4.0
3965042
1.8
1.7
Page | 22
TABLE- 6
India's imports from World
Product
code
'27
'71
'85
'84
'29
Product label
Value in 2018
Value
in 2018
USD'Bn
Mineral fuels, mineral
oils and products of
their distillation;
bituminous
substances; mineral ...
168590362
168.6
65026825
65.0
52399600
52.4
43231921
43.2
22578514
22.6
Natural or cultured
pearls, precious or
semi-precious stones,
precious metals,
metals clad ...
Electrical machinery
and equipment and
parts thereof; sound
recorders and
reproducers, television
...
Machinery,
mechanical
appliances, nuclear
reactors, boilers; parts
thereof
Organic chemicals
Page | 23
TABLE- 7
India's Exports to USA
Exported
value
Value
in 2018
USD'Bn
'71
Natural or cultured pearls,
precious or semi-precious
stones, precious metals,
metals clad ...
10483327
10.5
'30
Pharmaceutical products
5024360
5.0
'84
Machinery, mechanical
appliances, nuclear
reactors, boilers; parts
thereof
3713422
3.7
3053595
3.1
2848684
2.8
Product
Product label
code
'27
'87
Mineral fuels, mineral oils
and products of their
distillation; bituminous
substances; mineral ...
Vehicles other than
railway or tramway rolling
stock, and parts and
accessories thereof
Page | 24
TABLE- 8
India's Exports to world
Product
Product label
code
'27
'71
Mineral fuels, mineral
oils and products of
their distillation;
bituminous
substances; mineral ...
Natural or cultured
pearls, precious or
semi-precious stones,
precious metals,
metals clad ...
Exported
value
Value in
2018
USD'Bn
48293170
48.29317
40096394 40.096394
'84
Machinery,
mechanical
appliances, nuclear
reactors, boilers; parts
thereof
'87
Vehicles other than
railway or tramway
rolling stock, and parts 18238905 18.238905
and accessories
thereof
'29
Organic chemicals
20403920
20.40392
17742505 17.742505
Page | 25
HS
Code
Table- 9 India’s share in world’s top imports
Category
World’s
India’s
Imported
Exported
Value in
Value in
2017 (US$
2017 (US$
billion)
billion)
85 Electrical machinery and
equipment and parts thereof;
sound recorders and
reproducers, television . . .
84 Machinery, mechanical
appliances, nuclear reactors,
boilers; parts thereof
87 Vehicles other than railway or
tramway rolling stock, and
parts and accessories thereof
71 Natural or cultured pearls,
precious or semi-precious
stones, precious metals, metals
clad . . .
39 Plastics and articles thereof
90 Optical, photographic,
cinematographic, measuring,
checking, precision, medical or
surgical . . .
30 Pharmaceutical products
29 Organic chemicals
72 Iron and steel
73 Articles of iron and steel
India’s
share
(%)
2,745.96
8.8
0.32
2134.19
16.65
0.78
1460.53
16.23
1.11
654.95
610.61
42.57
5.93
6.5
0.97
571.72
561.67
413.22
383.75
291.61
2.89
12.9
13.57
11.7
6.66
0.5
2.3
3.28
3.05
2.28
Page | 26
Table -10: India's Global Export Share
Sno
2 Digit
HS
Code
4 Digit
HS Code
1
84
'8471
'8528
Particulars
Automatic data-processing machines and units
thereof; magnetic or optical readers, machines
...
Parts and accessories (other than covers,
carrying cases and the like) suitable for use
solely ...
Turbojets, turbopropellers and other gas
turbines
Printing machinery used for printing by means
of plates, cylinders and other printing
components ...
Telephone sets, incl. telephones for cellular
networks or for other wireless networks; other
...
Electronic integrated circuits; parts thereof
Monitors and projectors, not incorporating
television reception apparatus; reception
apparatus ...
'8544
Insulated "incl. enamelled or anodised" wire,
cable "incl. coaxial cable" and other insulated ...
'8473
'8411
'8443
2
3
4
85
87
27
'8517
'8542
0.05
38
0.18
27
2.64
11
0.12
33
0.34
0.03
23
35
0.05
46
0.68
32
0.94
21
1.24
20
'8708
'8704
Motor vehicles for the transport of goods, incl.
chassis with engine and cab
0.96
22
'8701
Tractors (other than tractors of heading 8709)
1.65
16
0.00
-
5.96
0.10
5
45
0.28
33
3.54
11
0.46
18
1.22
18
'2709
'2716
30
Rank
in World
Motor cars and other motor vehicles principally
designed for the transport of persons, incl. ...
Parts and accessories for tractors, motor
vehicles for the transport of ten or more
persons, ...
'8703
'2710
'2711
5
%
Share
Petroleum oils and oils obtained from
bituminous minerals, crude
Petroleum oils and oils obtained from
bituminous minerals (excluding crude);
preparations containing ...
Petroleum gas and other gaseous hydrocarbons
'3002
Electrical energy
Medicaments consisting of mixed or unmixed
products for therapeutic or prophylactic uses,
put ...
Human blood; animal blood prepared for
therapeutic, prophylactic or diagnostic uses;
antisera ...
'3006
Pharmaceutical preparations and products of
subheadings 3006.10.10 to 3006.60.90
'3004
Page | 27
6
90
'3005
Wadding, gauze, bandages and the like, e.g.
dressings, adhesive plasters, poultices,
impregnated ...
0.67
25
'9018
Instruments and appliances used in medical,
surgical, dental or veterinary sciences, incl. ...
0.61
26
0.21
28
0.25
31
0.42
30
0.85
24
0.23
38
0.28
24
2.59
5
0.75
28
1.46
20
0.89
17
1.70
17
20.04
1
0.0001
136
12.00
2
0.07
26
3.08
7
3.20
9
'9021
'9027
'9031
7
94
'9403
'9401
'9405
'9404
8
39
'3926
'3923
'3924
'3920
9
71
'7102
'7108
'7113
'7110
10
29
'2933
'2934
Orthopaedic appliances, incl. crutches, surgical
belts and trusses; splints and other fracture ...
Instruments and apparatus for physical or
chemical analysis, e.g. polarimeters,
refractometers, ...
Measuring or checking instruments, appliances
and machines not elsewhere specified in
chapter ...
Furniture and parts thereof, n.e.s. (excluding
seats and medical, surgical, dental or veterinary
...
Seats, whether or not convertible into beds, and
parts thereof, n.e.s. (excluding medical, ...
Lamps and lighting fittings, incl. searchlights
and spotlights, and parts thereof, n.e.s;
illuminated ...
Mattress supports (excluding spring interiors
for seats); articles of bedding and similar
furnishing, ...
Articles of plastics and articles of other
materials of heading 3901 to 3914, n.e.s.
Articles for the conveyance or packaging of
goods, of plastics; stoppers, lids, caps and other
...
Tableware, kitchenware, other household
articles and toilet articles, of plastics (excluding
...
Plates, sheets, film, foil and strip, of noncellular plastics, not reinforced, laminated, ...
Diamonds, whether or not worked, but not
mounted or set (excluding unmounted stones
for pick-up ...
Gold, incl. gold plated with platinum,
unwrought or not further worked than semimanufactured ...
Articles of jewellery and parts thereof, of
precious metal or of metal clad with precious
metal ...
Platinum, incl. palladium, rhodium, iridium,
osmium and ruthenium, unwrought or in semimanufactured ...
Heterocyclic compounds with nitrogen heteroatom[s] only
Nucleic acids and their salts, whether or not
chemically defined; heterocyclic compounds
(excluding ...
Page | 28
11
61
'2935
Sulphonamides
2.16
11
'2902
Cyclic hydrocarbons
Jerseys, pullovers, cardigans, waistcoats and
similar articles, knitted or crocheted (excluding
...
Women's or girls' suits, ensembles, jackets,
blazers, dresses, skirts, divided skirts, trousers,
...
T-shirts, singlets and other vests, knitted or
crocheted
Women's or girls' slips, petticoats, briefs,
panties, nightdresses, pyjamas, négligés,
bathrobes, ...
8.03
4
0.61
23
1.57
15
5.23
5
4.33
4
1.38
15
2.13
16
1.98
14
1.38
19
3.48
8
2.02
11
7.29
3
9.12
2
0.22
29
0.05
39
0.68
22
0.94
9
2.03
14
0.23
21
'6110
'6104
'6109
'6108
12
73
'7326
Screws, bolts, nuts, coach screws, screw hooks,
rivets, cotters, cotter pins, washers, incl. ...
Articles of iron or steel, n.e.s. (excluding cast
articles)
'7308
Structures and parts of structures "e.g., bridges
and bridge-sections, lock-gates, towers, ...
'7318
'7304
13
62
'6204
'6203
'6205
'6206
14
95
'9503
'9504
'9506
'9505
15
88
'8803
'8802
Tubes, pipes and hollow profiles, seamless, of
iron or steel (excluding products of cast iron)
Women's or girls' suits, ensembles, jackets,
blazers, dresses, skirts, divided skirts, trousers,
...
Men's or boys' suits, ensembles, jackets,
blazers, trousers, bib and brace overalls,
breeches ...
Men's or boys' shirts (excluding knitted or
crocheted, nightshirts, singlets and other vests)
Women's or girls' blouses, shirts and shirtblouses (excluding knitted or crocheted and
vests)
Tricycles, scooters, pedal cars and similar
wheeled toys; dolls' carriages; dolls; other toys;
...
Video game consoles and machines, articles for
funfair, table or parlour games, incl. pintables,
...
Articles and equipment for general physical
exercise, gymnastics, athletics, other sports, ...
Festival, carnival or other entertainment
articles, incl. conjuring tricks and novelty jokes,
...
Parts of aircraft and spacecraft of heading 8801
or 8802, n.e.s.
Powered aircraft "e.g. helicopters and
aeroplanes"; spacecraft, incl. satellites, and
suborbital ...
Page | 29
'8805
'8804
Aircraft launching gear (excluding motor
winches for launching gliders); deck-arrestor or
similar ...
Parachutes, incl. dirigible parachutes and
paragliders, and rotochutes; parts thereof and
accessories ...
0.64
12
0.15
34
Table- 11: India's Share in US Imports
Sno
1
2 Digit
HS
Code
84
4 Digit
HS
Code
3
4
85
87
27
%
Share
Rank
in USA
0.020
30
0.269
15
0.391
20
'8411
Automatic data-processing machines and units
thereof; magnetic or optical readers, machines
...
Parts and accessories (other than covers,
carrying cases and the like) suitable for use
solely ...
Turbojets, turbopropellers and other gas
turbines
'8443
Printing machinery used for printing by means
of plates, cylinders and other printing
components ...
0.048
31
'8517
'8542
Telephone sets, incl. telephones for cellular
networks or for other wireless networks; other
...
Electronic integrated circuits; parts thereof
0.207
0.043
19
26
'8528
Monitors and projectors, not incorporating
television reception apparatus; reception
apparatus ...
0.014
27
'8544
Insulated "incl. enamelled or anodised" wire,
cable "incl. coaxial cable" and other insulated ...
0.333
17
'8703
Motor cars and other motor vehicles principally
designed for the transport of persons, incl. ...
0.663
12
'8708
Parts and accessories for tractors, motor
vehicles for the transport of ten or more
persons, ...
1.753
7
'8704
Motor vehicles for the transport of goods, incl.
chassis with engine and cab
0.000
-
'8701
Tractors (other than tractors of heading 8709)
2.577
6
'2709
Petroleum oils and oils obtained from
bituminous minerals, crude
0.170
26
'2710
'2711
Petroleum oils and oils obtained from
bituminous minerals (excluding crude);
preparations containing ...
Petroleum gas and other gaseous hydrocarbons
4.915
0.000
4
32
'8471
'8473
2
Particulars
Page | 30
5
6
7
30
90
94
'2716
Electrical energy
0.000
-
'3004
Medicaments consisting of mixed or unmixed
products for therapeutic or prophylactic uses,
put ...
8.800
4
'3002
Human blood; animal blood prepared for
therapeutic, prophylactic or diagnostic uses;
antisera ...
0.188
20
'3006
Pharmaceutical preparations and products of
subheadings 3006.10.10 to 3006.60.90
2.327
12
'3005
Wadding, gauze, bandages and the like, e.g.
dressings, adhesive plasters, poultices,
impregnated ...
1.115
11
'9018
Instruments and appliances used in medical,
surgical, dental or veterinary sciences, incl. ...
0.815
19
'9021
Orthopaedic appliances, incl. crutches, surgical
belts and trusses; splints and other fracture ...
0.116
29
'9027
Instruments and apparatus for physical or
chemical analysis, e.g. polarimeters,
refractometers, ...
0.349
26
'9031
Measuring or checking instruments, appliances
and machines not elsewhere specified in
chapter ...
0.705
21
'9403
Furniture and parts thereof, n.e.s. (excluding
seats and medical, surgical, dental or veterinary
...
1.633
9
0.528
14
1.085
6
'9405
Seats, whether or not convertible into beds, and
parts thereof, n.e.s. (excluding medical, ...
Lamps and lighting fittings, incl. searchlights
and spotlights, and parts thereof, n.e.s;
illuminated ...
'9404
Mattress supports (excluding spring interiors
for seats); articles of bedding and similar
furnishing, ...
5.612
4
'3926
Articles of plastics and articles of other
materials of heading 3901 to 3914, n.e.s.
0.428
21
'3923
Articles for the conveyance or packaging of
goods, of plastics; stoppers, lids, caps and other
...
1.654
11
'3924
Tableware, kitchenware, other household
articles and toilet articles, of plastics (excluding
...
0.509
11
'3920
Plates, sheets, film, foil and strip, of noncellular plastics, not reinforced, laminated, ...
2.333
12
'9401
8
39
Page | 31
9
10
11
12
13
71
29
61
73
62
'7102
Diamonds, whether or not worked, but not
mounted or set (excluding unmounted stones
for pick-up ...
38.115
1
'7108
Gold, incl. gold plated with platinum,
unwrought or not further worked than semimanufactured ...
0.000
62
'7113
Articles of jewellery and parts thereof, of
precious metal or of metal clad with precious
metal ...
20.876
1
'7110
Platinum, incl. palladium, rhodium, iridium,
osmium and ruthenium, unwrought or in semimanufactured ...
0.049
18
'2933
Heterocyclic compounds with nitrogen heteroatom[s] only
3.166
6
'2934
'2935
Nucleic acids and their salts, whether or not
chemically defined; heterocyclic compounds
(excluding ...
Sulphonamides
5.672
0.824
4
6
'2902
Cyclic hydrocarbons
2.941
7
'6110
Jerseys, pullovers, cardigans, waistcoats and
similar articles, knitted or crocheted (excluding
...
3.374
6
'6104
Women's or girls' suits, ensembles, jackets,
blazers, dresses, skirts, divided skirts, trousers,
...
2.071
9
'6109
T-shirts, singlets and other vests, knitted or
crocheted
4.371
10
'6108
Women's or girls' slips, petticoats, briefs,
panties, nightdresses, pyjamas, négligés,
bathrobes, ...
4.401
6
'7318
Screws, bolts, nuts, coach screws, screw hooks,
rivets, cotters, cotter pins, washers, incl. ...
2.065
8
'7326
Articles of iron or steel, n.e.s. (excluding cast
articles)
2.462
8
'7308
Structures and parts of structures "e.g., bridges
and bridge-sections, lock-gates, towers, ...
1.506
10
'7304
Tubes, pipes and hollow profiles, seamless, of
iron or steel (excluding products of cast iron)
1.358
19
'6204
Women's or girls' suits, ensembles, jackets,
blazers, dresses, skirts, divided skirts, trousers,
...
5.332
4
'6203
Men's or boys' suits, ensembles, jackets,
blazers, trousers, bib and brace overalls,
breeches ...
2.977
8
Page | 32
14
95
'6205
Men's or boys' shirts (excluding knitted or
crocheted, nightshirts, singlets and other vests)
8.285
5
'6206
Women's or girls' blouses, shirts and shirtblouses (excluding knitted or crocheted and
vests)
18.860
2
0.365
10
0.136
20
0.363
18
1.318
2
'9503
'9504
'9505
Articles and equipment for general physical
exercise, gymnastics, athletics, other sports, ...
Festival, carnival or other entertainment
articles, incl. conjuring tricks and novelty jokes,
...
'8803
Parts of aircraft and spacecraft of heading 8801
or 8802, n.e.s.
0.910
18
'8802
Powered aircraft "e.g. helicopters and
aeroplanes"; spacecraft, incl. satellites, and
suborbital ...
0.000
-
'8805
Aircraft launching gear (excluding motor
winches for launching gliders); deck-arrestor or
similar ...
1.090
6
'8804
Parachutes, incl. dirigible parachutes and
paragliders, and rotochutes; parts thereof and
accessories ...
0.254
24
'9506
15
88
Tricycles, scooters, pedal cars and similar
wheeled toys; dolls' carriages; dolls; other toys;
...
Video game consoles and machines, articles for
funfair, table or parlour games, incl. pintables,
...
Page | 33