A Study on Punjab Export Potential and Strategy
Sponsored
by
Punjab Small Industries & Export Corporation, Chandigarh
PROJECT TEAM
Rakesh Mohan Joshi
Ram Singh
Jaydeep Mukherjee
March, 2015
Indian Institute of Foreign Trade
(Deemed University)
B-21, Qutub Institutional Area, New Delhi
Preface
In the post liberalization era, the export sector of Indian economy made comprehensive
progress resulting in employment generation, speeding up the process of economic
development, bringing newer technologies, integrating Indian economy with global
economy in general and contributing to country foreign exchange reserves in particular.
Punjab, being an economically advanced state has attracted attention of investors,
industrialist, entrepreneurs, policy makers and agricultural scientists etc and accordingly
several studies are conducted in order to understand the nature of industries, factor
facilitating business, state innate strengths & factor endowments and suitability of business
models including sectoral studies looking at export potential of key products.
The various studies have however, neglected the issues related to exports prospects of
various sectors of Punjab’s economy. Therefore, there is a need for conduct of study to
assess, appraise and analyze the export prospects of Punjab and suggest the strategy for
exports to Punjab exporters. Accordingly, this study is commissioned at request of Punjab
Small Industries & Export Corporation (PSIEC), Chandigarh. The specific terms of reference
of the study are as follows.
a. To appraise the state’s strengths in key areas of economic activity i.e. agriculture,
industry and service sector, availability of natural resources and availability of trade
related infrastructure in the state.
b. To find out the potential sectors of exports from Punjab keeping in mind present
global environment and examining the various critical gaps that exists in factor
endowment for state for promoting exports.
c. To examine the regulatory, infrastructural and operational problems faced by
exporters in Punjab.
d. To devise the road map for potential sectors of exports for tapping global markets,
accessing new customers and executing exports orders effectively & efficiently and
suggesting the measures that can be taken in agricultural, industrial and services
sectors for faster export growth and employment.
e. To suggest & recommend the measures for boosting the exports, both merchandise
& services from Punjab including possible measures for improving and
strengthening the physical and institutional infrastructure of the state.
The study observes that the export sector of Punjab, even after enjoying innate competitive
advantages in several areas such as beverages, spirits & vinegar, residues & waste from the
food industry, organic chemicals, rubber & articles thereof, cotton, man-made staple fibres,
art of apparel & clothing access-knitted or crocheted, other made up textile articles, articles
of iron or steel, tool, implement, cutlery, spoon, nuclear reactors, boilers, vehicles of
tramway or rolling-stock, etc. is at an important crossroads and is awaiting for policy
interventions for growth, expansion and diversification.
We are highly thankful to Punjab Small Industries and Export Corporation, Chandigarh for
sponsoring the project study on “Punjab Export Potential and Strategy”. Special thanks to
Managing Director of PSIEC, Shri Amit Dhaka and Executive Director Shri Sanjeev Bawaji
for their enthusiasm and support for conduct of this study. We are thankful to various
export promotion councils especially EEPC, Textiles EPC, Wool & Wool Products EPC,
Capexil, Leather EPC, Handicrafts EPC, Cotton EPC, Pharmaxil EPC and FIEO for their whole
hearted support and help in sharing with their exporter’s directory for timely conduct of
survey and study. Special thanks to Shri Opinder Singh, EEPC Jalandhar for extending us
help in organization of stakeholders workshop at Jalandhar. We are thankful to DGCI&S,
Kolkata for sharing with us the export data of Punjab which helps us compiled this to its
conclusion. We are highly grateful to Dr. Surajit Mitra, Director IIFT for his guidance and
support in conceptualizing and implementing the research work.
New Delhi
Dr. Rakesh Mohan Joshi
Dr. Ram Singh
Dr. Jaydeep Mukherjee
TABLE OF CONTENTS:
Preface
Chapter 1: Introduction & Research Methodology
1.1 Introduction
1.2 Literature Review & Research Gaps
1.3 Terms Of Reference
1.4 Research Methodology
Chapter 2: Economic Profile of Punjab
2.1 Overview Of Punjab
2.2 Emerging Global Economic Scenario & Trade
2.3 Emerging Economic Scenario Of Punjab
2.4 Punjab Economic Profile: Sectoral Appraisal
2.4.1 Agriculture
2.4.2 Industries
2.4.3 Services
Chapter 3: Identification of Thrust Products for Punjab Exporters
3.1 Assessing Supply Side Capabilities For Thrust Products Of Exports From
Punjab
3.2 Understanding Demand Side Capacities Of Exportable Products
3.3 Revealed Competitive Advantage (RCA) Analysis Of Punjab’s Thrust Products
Chapter 4: Identification of thrust Markets for Punjab Exporters
4.1 Analysis Of Export Policy Regime For Thrust Products Of Punjab
4.2 Analysis Of World Import Demand (Value Wise) For Thrust Products Of Punjab
4.3 Analysis Of World Import Demand (Quantity Wise) For Thrust Products Of
Punjab
4.4 Identification Of Key Imports Markets For Thrust Products From Punjab
4.5 Analysis Of Key Competitors For Thrust Products By Punjab Exporters
4.6 Analysis Of Tariff Barriers Faced On Thrust Products By Punjab Exporters
4.7 Assessing Price Attractiveness of identified products in thrust markets
Chapter 5: Challenges for Exports from Punjab
5.1 Infrastructural Challenges
5.2 Operational Challenges
5.3 Regulatory Challenges
Chapter 6: Suggestions for Promoting Exports
6.1 For Exporters of Punjab
6.2 For Policy Makers of Punjab
6.3 For Trade Promotion Bodies
APPENDIX
TABLES & FIGURES
Table 1.1: Salient Features of Punjab Economy Vis a Vis Indian Economy
Figure 1.2: Economic Profile of Punjab
Table 1.3: Punjab Exports as Percentage of India’s Exports
Figure 1.4: Punjab Exports (INR - Crores) from 2008-09 to 2013-14
Figure 1.5: Research Framework for Study on Punjab Export Potential & Strategy
Table 1.6: Formula and Methodology for Calculation of Revealed Competitive
Advantage
Table 2.1: Snap shot of Socio-Economic Profile of Punjab
Table 2.2 Demographic Indicators of Punjab & India
Table 2.3: Significance of Punjab Agricultural Sector to Indian Economy
Table 2.4: Growth Pattern of Various Region in World Markets
Figure 2.5: India’s Exports, Imports and Trade Balance from 2011-12 to 2013-14
Figure 2.6: India’s Exports, Imports and Trade Balance from 2011-12 to 2013-14
(million US$)
Figure 2.7 Macro Economic Scenario of Punjab
Figure 2.8: Sub Sectors of Punjab GDP (in Rs. Crores) at constant prices of 2004-05
Figure 2.9: Sub–Sectoral Growth Trends (%) in Punjab Economy at constant (200405) Prices
Table 2.10: Punjab Contribution of Rice & Wheat to Central Pool
Table 2.11: Key Indicators of Punjab Agriculture Sector
Figure 1.12: Market Arrivals of Wheat & Paddy in Punjab
Table 2.13: Area under Major Agricultural Crops (In ‘000 Hectares)
Figure 2.14: Production of Agricultural Crops in Punjab (In '000 Metric Tonnes)
Figure 2.15: Production of Agricultural Crops in Punjab (In '000 Metric Tonnes)
Table 2.16: Area ('000 Hectare) under Fruits and Vegetables in Punjab
Table 2.17: Estimates of Meat Production, Yield Rates from Cattle and Buffalo in
Punjab (2012-2013)
Table 2.18: Production of Eggs in Punjab (2007-2008 to 2012-2013)
Table: 2.19: Productions and Per Capita Availability of Milk
Table 2.20: Trends in Production of Fisheries in Punjab and India (2004-2005 to
2012-2013)
Table: 2.21: Punjab Agro Exports as Percentage of Total Agro Production & Total
Exports
Table 2.22: No. of Small, Medium & Large Units in Punjab and their production from
2009-10 to 2013-14
Table 2.23: Employment and Investment Scenario in Industrial Sector of Punjab
from 2009-10 to 2013-14
Table 2.24: Foreign Direct Investment (FDI) Proposals Approved in Punjab
Table 2.25: Break up of Investment Intentions in Terms of [IEMs, FILED,
LOIs/DILs]1Issued in Punjab (2014-Upto April 2014) (Rs. in Crore)
Figure 2.26: Punjab Vs India- Industrial Growth Rate & Contribution to Economy
Figure 2.27: Annual Growth in IIP of Manufacturing sector Punjab V/S India
Table 2.28: Key Producible Products in State of Punjab
Table 2.29: Trends in Punjab Industrial Exports as Percentage of Total Exports
Table 2.30: Total No. of Companies in Punjab registered under Information
Technology Act & Company Act
Table 2.31: No. of Companies Registered in Punjab by Types of Ownership
Table 2.32: Number of Products Registered under Provisions of Geographical
Indication of Goods (Registration and Protection) Act, 1999 in Punjab (As on
30.11.2012)
Table 2.33: Distribution of Formal Approvals, Notified and Exporting
Special Economic Zones (SEZs) in Punjab (As on 20.06.2014)
Table 2.34: Number of Applications Received/Approved for Setting up of Export
Oriented Units (EOUs) in Punjab (2008-2009 to 2010-2011)
Figure 2.35: Growing Role of Services Sector in Punjab SGDP
Figure 2.36: Punjab Services Sector Growth Rate Surpass Total SGDP Growth rates
Figure 2.37: Punjab Vs India: Services Sector Growth Rate (% per Annum at 200405 Prices) from 2008-09 to 2013-14
Table 2.38: Growth Rate for 6 Sectors under Services Sector
Figure 3.1: Step By Step Procedure for Identification of Thrust Products for Exports
from Punjab
Table 3.2: Classification of Punjab's Top 80% Exports into High and Low-Growth
Products
Table 3.3: Punjab's Share in India's Exports
Table 3.4: World Import Demand for the Top 80% Exports of Punjab (Values Mn
USD)
Table 3.5: World Import Demand for the Top 80% Exports of Punjab (% of World's
Total Import
Table 3.6: Punjab and India's Share in Rising World Imports
Table 3.7: India's Share and Punjab's Position in Rising World Imports
Table 3.8: Punjab's Revealed Competitive Advantage in Rising World Imports
Figure 4.1: Different Phases of Analysis for Identification of Thrust Markets For
Identified Products Of Punjab
1
IEMs: Industrial Entrepreneur Memoranda filed for deli censed sector, LOIs: Letters of Intent issued, DILs: Direct Industrial Licenses granted, Prop. Inv:
Proposed Investment.
Table 4.2: Value Wise Import Demand for the Top 80% Exports of Punjab
Table 4.3: Quantity Wise Import Demand for the Top 80% Exports of Punjab
Table 4.4: Top 10 Importers in the World with Market Share (%) for the Top 80%
Exports of Punjab
Table 4.5: Top 10 Exporters (Competitors for Punjab Exports) to the World with
Market Share (%) for the Top 80% Exports of Punjab
Table 4.6: Applied Average Tariff on Identified Products by Top 10 importers
Table 4.7: Table 4.7: Nominal Protection Coefficient of India vis-à-vis Top 10
Importing Countries (2013)
Figure 5.1: Challenges of Punjab Exporters
Table 5.2-Railway Network (Route Kilometres) in Punjab (As on 31.03.2013)
Table 5.3: Length of National Highways in Punjab
(As on 24.07.2014)
Table 5.4: National Highways Which Will Improve Connectivity for External Trade
Table 5.5: Modal Choice Pattern of Punjab Exporters & Associated Challenges
Table 5.6: Actual Power Supply Position In Terms Of Energy Requirement Vis-À-Vis
Energy Availability Of Various States/ Systems During The Year 2013-14
Table 5.7: Consumer Category-wise Average Power Tariff in Punjab (2013-2014)
Table 5.8: Existing Infrastructure of Dry Ports in Punjab
Table 5.9: Time and Costs in Trading Across Borders for Punjab Exporters
Exhibit 5.10: VAT Refunds - Punjab Exporters Complains of Delay and Red-Tape
Table 5.11: Punjab Bicycle Industry faces Acute Labour Shortage
Table 5.12: Ludhiana (Punjab) Rank on Key Indicator for Ease of Doing Business in
India
Table 5.13: No. of Procedure, Take taken and Associated Costs for Starting a New
Business in Punjab
Table 5.14: Prevalent Tax Rates for Various Manufacturing, Trading and Services
Activities in Punjab
LIST OF ACRONYM
ARE-2:
Application for Claim of Rebate of Central Excise
AEZ:
Agri-Export Zones
ASI:
Annual Survey of Industries
ASEAN:
Association of South East Asian Nations
CONCOR:
Container Corporation of India
CAGR:
Compounded Average Growth Rate
BTP:
Bio Technology Parks of India
CFS:
Container Freight Stations
CSO:
Central Statistical Organization
CIF:
Cost Insurance & Freight
DGCI&S:
Director General of Commercial Intelligence & Statistics
DGFT:
Director General of Foreign Trade
EOU:
Export Oriented Units
EPC:
Export Promotion Councils
EEPC:
Engineering Export Promotion Council
EU:
European Union
EPCG:
Export Promotion Capital Goods
FOB:
Free on Board
FTA:
Free Trade Area
FDI:
Foreign Direct Investment
GCF:
Gross Capital Formation
GDP:
Gross Domestic Product
GADVASU:
Guru Angad Dev Veterinary and Animal Sciences University
GOI:
Government of India
HA:
Hectare
ITPO:
Indian Trade Promotion Organization
IGM:
Import General Manifest
ICD:
Inland Container Depot
IIP:
Index of Industrial Production
IT:
Information Technology
IIFT:
Indian Institute of Foreign Trade
INR:
Indian Rupees
ITC (HS):
International Trade Classification (Harmonized System)
IMF:
International Monetary Fund
KWH:
Kilo Watt
KM:
Kilo Metre
KGS:
Kilo Grams
LR:
Literacy Rate
LCS:
Land Custom Station
L&M:
Large & Medium
MW:
Mega Watt
MDA:
Market Development Assistance
MOSPI:
Ministry of Statistics & Plans Implementation
MKWH:
Million Kilo Watt
MAI:
Market Access Initiatives
MSME:
Micro, Small & Medium Enterprises
NA:
Not Available
NTB:
Non-Tariff Barriers
NDA:
National Democratic Alliance
NPC:
Nominal Protection Coefficient
NH:
National Highway
OECD:
Organization of Economic Cooperation & Development
PACF:
Punjab Agro Food grains Corporation
PAU:
Punjab Agricultural University
PSIEC:
Punjab Small Industries & Export Corporation
PPP:
Public Private Partnership
PSWC:
Punjab State Warehousing Corporation
RCA:
Revealed Competitive Advantage
SEZ:
Special Economic Zone
SGDP:
State Gross Domestic Products
SWOT:
Strengths, Weaknesses, Opportunities & Threat
SQ. KM:
Square Kilo Meters
TUFS:
Technology Up gradation Fund Scheme
WEO:
World Economic Outlook
R&D
Research & Development
RBI:
Reserve Bank of India
SSU:
Small Scale Units
STPI:
Software Technology Parks of India
USD:
US Dollars
UN:
United Nations
USA:
United States of India
WITS:
World International Trade Statistics
VAT:
Value Added Tax
A Study on Punjab Export Potential and Strategy
CHAPTER 1:
INTRODUCTION & METHODOLOGY
1.1 INTRODUCTION: Post liberalisation, the export sector of Indian economy made
comprehensive progress resulting in employment generation, speeding up the process
of economic development, bringing newer technologies, integrating Indian economy
with global economy in general and contributing to country foreign exchange reserves
in particular. This has helped India to service imports bill, debt bills, liberalise trade
policy regime, speed up the process of economic development and enhance economic
activity in all areas, i.e. manufacturing, trading and services. India’s exports has
although slowed down due to global economic downturn but has fairly done well in
comparison to similar developing countries. India’s exports for the financial year 201314 are US$ 325 billion in 2013-14, registering a growth rate of 8.33% from last financial
year. Imports for the period 2013-14 were $ 466 billion and witnessed a slower growth
as compared to last few years mainly due to curbs imposed on gold imports and
stabilization of oil prices in world markets. Exports as well imports has witnessed
positive growth trajectory in the year 2014 mainly due t o improvements in business
sentiments with change in government, lower oil prices and reduced gold imports. As a
result of these macroeconomic developments, there has been reduction in trade deficit
which has reached at alarming levels in year 2012-13. Policy makers has greater scope
to leverage policy instruments for future growth as there is lower pressure on current
account deficit, foreign exchange reserves and comparatively reduced volatility of
Indian rupee in international financial markets.
With change in guard at centre under NDA government, there is renewed focus on
improving business environment, attracting foreign investments, enhancing domestic
production and promoting exports. New regime strongly believe that states has to be
partner in India’s export growth story and accordingly it is desired to involve states for
export promotion with identification of products and markets suitable for exports
keeping in minds the economic profile of each state. Punjab is one such state that is
economically developed and can contribute to India’s growth story in addition to
improving its own economic profile in areas such as speedier industrialization,
promoting employments, generating additional economic activity and ensuring
balanced and sustainable socio-economic development of state.
The state of Punjab is located in North-Western part of the country and is a
economically advanced than other states of India on several economic parameters
(Table 1.1). The economic base of Punjab state is largely agricultural as it is one of the
most fertile regions on the earth. The region is ideal for wheat-growing, rice, sugar cane,
fruits and vegetables are also grown. Indian Punjab is called the “Granary of India” or
“India's bread-basket”. The salient features of Punjab Economy vis-a-vis Indian
economy (2012-13) can be summarised as under.
A Study on Punjab Export Potential and Strategy
Table 1.1: Salient Features of Punjab Economy Vis a Vis Indian Economy
Parameter
Punjab
State Of Economy
GSDP as percentage of all states of
3.4
India
Average GSDP growth rate Vs India
5.19%
Per capita GSDP ($)
1475
Physical Infrastructure
Installed Power capacity (MW)
7019
GSM Cellular Subscribers (No)
21452916
Broad Band Subscribers (No)
523508
National Highways Lengths (KM)
1557
Airports (no)
4
No. of Dry Ports (ICD/CFS/LCS)
6
Social Indicators
Literacy Rates (%)
76.7
Birth Rate ( Per 1000 Population)
17
Investment Scenario
FDI Equity Inflows ( $ Billions)
1.0
Outstanding Investments ( $ Billions)
116.7
Industrial Infrastructure
PPP Projects (no)
35
SEZ (no)
2
Agriculture Production
(000 Metric Tonnes)
Wheat
15169
Rice
11236
Cotton (bales of 170 Kg Each)
2006
Maize
475
Sugarcane
370
Oilseeds
84
Barley
47
Gram
3
India
100
5.00%
1302
173626
618284322
10737850
70934
133
268
74
22.5
132.9
7449
808
380
Million Metric tonnes
80.71
89.13
23.94
16.68
277.75
15.66
1.30
7.35
Source: Economic Survey of India/ Economic Survey of Punjab / India Brand Equity Fund (2012-13)
Punjab produces 20% of India's wheat, and 9% of India's rice. Similarly, Punjab
produces 2% of the world's cotton, 2% of world’s wheat and 1% of the world’s rice. The
state has essentially an agrarian economy with a lower industrial output as compared to
other states of India. A prominent feature of the industrial scenario of the Punjab is its
small sized industrial units. In the year 2013-14, there are nearly 194,000 small scale
A Study on Punjab Export Potential and Strategy
industrial units in the state in addition to 586 large and medium units. Ludhiana is an
important centre for industry. The state economy and important production bases of
the state can be summarized as under.
Figure 1.2: Economic Profile of Punjab
Economic Profile of Punjab
Machinery Industries
Agro Based Industries
Chemical Industries
Source: Punjab Industrial Review, United Nations Industrial Development Organization
Being in country hinterland, Punjab is in disadvantageous situation as far as external
sector engagement in terms of merchandize and services exports are concerned.
However, it has been the “entrepreneurship skills” and “innate commitment” of the
people of state which has been instrumental in progress of Punjab. Improvement in
relations Pakistan and recent opening of border routes for trade with Pakistan coupled
with setting up a dedicated integrated, round the clock trade check-post has opened
new vistas of opportunity for state of Punjab. Heralding this change are more and more
entrepreneurs, industrialists and investors with vision from across the globe. Punjab
export as percentage of India’s exports is tabled as under.
Table 1.3 : Punjab Exports as Percentage of India’s Exports
Year
Punjab
Exports (Rs.
Crore)
India’s
Exports
(Rs. Crores)
State’s Share
in India’s
Exports (%)
1980-81
1991-92
2009-10
162.17
900.81
12962
6711
32558
845533
2.41
2.76
1.53
2010-11 2011-12 2012-13 2013-14
19436
28256
35311
42729
1142921 1465959 1634318 1905011
1.70
1.92
2.16
2.24
Source: Director General of Commercial Intelligence & Statistics, Kolkata 2014
Punjab has been consistently trying to improve its exports both in merchandise as well
as services sector. Progress in merchandise sector has been good however the same has
not been achieved in case of services sector. The primary reason for low services sector
export has been the different factor endowment of state and lack of reasoned policy
interventions. The export of Punjab in recent four years is diagrammed as under:
A Study on Punjab Export Potential and Strategy
Figure 1.4: Punjab Exports (INR - Crores) from 2008-09 to
2013-14
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
Source: Director General of Commercial Intelligence, Kolkata 2014
1.2 LITERATURE REVIEW & RESEARCH GAPS: Punjab, being an economically
advanced state has attracted attention of investors, industrialist, entrepreneurs, policy
makers and agricultural scientists etc and accordingly several studies are conducted in
order to understand the nature of industries, factor facilitating business, state innate
strengths & factor endowments and suitability of business models including sectoral
studies looking at export potential of key products. Department of Planning,
Government of Punjab publishes the “Economic Survey of Punjab” each year which
provides vital information on the overall nature of economy and achievements in
different areas of economic and social activity. It also brings out important important
statistical abstract, statistical atlas, newsletters etc which throw light on emerging
challenges that economy of Punjab faces in changing global economic environment.
“Punjab Industrial Review” which was carried out by United Nations Industrial
Development Organization in 2007-08 in collaboration with Department of Industrial
Policy and Promotion appraise the industrial challenges that state of Punjab faces. The
report is more focussed to assess, appraise and analyze the factors that hinder Punjab
industrial growth, scan prospects and suggest way forward by conducting the SWOT
analysis of key sectors of Punjab economy. However, the report does not focus on the
issues related to external engagements of Punjab industries i.e. international trade.
Agro Economic Research Centre, (PAU – Ludhiana) study no. 30 entitled “State
Agricultural Profile- Punjab” carried by Jasdev Singh, D.K. Grover & Tejinder K. Dhaliwal
(2012)is scholarly work explaining important agricultural issues such as structure and
performance of Punjab agriculture, farm inputs management and natural resources
management. The study sheds important insights on challenges faced by Punjab
agricultural farmers and suggests way forward to address such challenges. This study
also completely neglect the issues related to export prospects of agro products and
address only domestic issues which are more structural than operational.
A Study on Punjab Export Potential and Strategy
Harpreet Singh & Manish Bansal (2013) in their research paper entitled “Major
problems and prospects of Food Industry of Punjab” scan the macro level issues affecting
the growth and development of Punjab. Even this paper does not include the issues
related to exports of processed foods from Punjab. Ashok Gulati (2002) in his research
paper entitled “Challenges to Punjab Agriculture in Globalizing World” raised the issues
related to traditional methods of agriculture suggested the ways and means for
modernization of Punjab agriculture in a changing global environment. Raj Kumar
Gautam & Raghbir Singh (2012)in their study entitled “Liberalization Impact on Small
Scale of Industries- An Empirical Evidence from Punjab” analysed the impact of various
liberalization polices in Punjab small scale industries and has suggested the way and
means for improving the efficiency of Punjab small scale industries.
The various studies discussed as above have neglected the issues related to exports
prospects of various sectors of Punjab economy in today’s globalizing world. Therefore,
there is need for conduct of study to assess, appraise and analyze the export prospects
of Punjab and suggest the strategy for exports to Punjab exporters. Accordingly, this
study is commissioned at request of Punjab Small Industries & Export Corporation
(PSIEC), Chandigarh.
1.3 TERMS OF REFERENCE: In this context, it will be worthwhile to explore the export
potential of state so that state can be brought under the export map of India and
contribute towards enhancing the country’s exports. In reference to that, the terms of
reference of study are as follows.
a. To appraise the state’s strengths in key areas of economic activity i.e. agriculture,
industry and service sector, availability of natural resources and availability of
trade related infrastructure in the state.
b. To find out the potential sectors of exports from Punjab keeping in mind present
global environment and examining the various critical gaps that exists in factor
endowment for state for promoting exports.
c. To examine the regulatory, infrastructural and operational problems faced by
exporters in Punjab.
d. To devise the road map for potential sectors of exports for tapping global
markets, accessing new customers and executing exports orders effectively &
efficiently and suggesting the measures that can be taken in agricultural,
industrial and services sectors for faster export growth and employment.
e. To suggest & recommend the measures for boosting the exports, both
merchandise & services from Punjab including possible measures for improving
and strengthening the physical and institutional infrastructure of the state.
1.4 RESEARCH METHODOLOGY: Research Methodology for the project is tree tier
which are to research, evaluate and to suggest the way forward for promotion of
exports from Punjab. Figure as under depict the research methodology used both at
primary level and secondary level with requisite research tools, questionnaire etc.
A Study on Punjab Export Potential and Strategy
Figure 1.5: Research Framework for Study on Punjab Export Potential & Strategy
•Suggestions:
•For Policy Makers
• For Exporters of Punjab
Step 3: Strategy
for Exportable
Products
Step 2: Evaluate
Export
Competetiveness
•Objectives:
•Export Competetiveness of Identified
products
•Research Technique :
• Revealed Competetive Analysis
•Nominal Protection Co-efficient (NPC)
Step1: Research
Secondary & Primary
Sources
•Objectives
•To find out exportable thrust products
•To find out thrust markets
•Research Techniques:
• Statistical Analysis for supply & demand
capabilities
Step 1: Step by Step Research Process: The purpose of identifying “Thrust Products”
is to identify potential trade opportunities that may arise for Punjab. For this a detailed
analysis needs to be carried out to identify specific products that Punjab can be
exported at competitive prices. The analysis involves:
a.
Statistical Analysis for Product wise export trends (HS 6 digit)of the top 80
percent of the exportable by Punjab to the rest of the world. The reference
period is 2009-10 to 2013-14. Identify those products that exhibit an increasing
export trend (if share of exports is increasing in at least 3 years) and those that
exhibit a decreasing trend or a stagnant growth (if share of exports is decreasing /
stagnant in at least 3 years). The analysis provides an assessment of the existing
export scenario of Punjab.
A Study on Punjab Export Potential and Strategy
b.
Examine the product wise export trends (HS 6 digit) of India to the world. The
reference period is 2009-10 to 2013-14. This analysis provides an assessment of
the supply capabilities of India.
c.
Examine the world import demand for the top 80% exports from Punjab as
part of the demand-side analysis. The reference period for analysis is taken as
2008-09 to 2013-14. Classify the products have been classified into two categories:
one that exhibit an increasing world import share (if share of world import
demand is increasing in at least 3 years) and those that exhibit a decreasing import
share (if share of world import demand is decreasing in at least 2 years).
d.
For the tariff lines for which the import demand from the world exhibits an
increasing trend, India's share in world's imports, Punjab's exports’ share in
India’s total exports and Punjab's share in world's imports will be examined.
Identify those products as Priority 1 export category for which India’s share in
world import demand is rising and Punjab’s share in India’s exports is also rising.
Products for which India’s share in world import demand is falling but Punjab’s
share in India’s exports is rising, constitute the Priority 2 export category
products from Punjab.
e.
Conduct competitiveness analysisof Punjab’s major exportable (in rising
world imports) using Revealed Competitive Advantage (RCA). For this
purpose, the RCA of India of the Punjab’s identified products will be calculated. The
reference period for this analysis is 2009-10 to 2013-14. A product will be defined
as export competitive if the RCA ratio is found to be greater than 1 for 3 years or
more during the reference period.
Table 1.6: Formula and Methodology for Calculation of Revealed Competitive
Advantage
The revealed comparative advantage is an index used in international economics for
calculating the relative advantage or disadvantage of a certain country/ state in a
certain class of goods or services as evidenced by trade flows. RCA = (Eij / Eit) / (Enj /
Ent)
WHERE:
E
Exports
i
Country index
n
Set of countries
j
Commodity index
t
Set of commodities
That is, the RCA is equal to the proportion of the country's exports that are of the class
under consideration (Eij / Eit) divided by the proportion of world exports that are of
that class (Enj / Ent).
A comparative advantage is “revealed” if RCA>1. If RCA is less than unity, the country is
said to have a comparative disadvantage in the commodity or industry.
A Study on Punjab Export Potential and Strategy
Identification of Thrust Export Destinations for Punjab: Once the thrust products
have been identified, the next step involves identifying the “Thrust Countries” for
Punjab’s identified exportable. The objective of this analysis is to examine the feasibility
of export market diversification for Punjab and at the same time compare the price
competitiveness with the competing countries. The analysis involves:
a. Identify the thrust export market for Punjab for each of the identified
exportable. The objective of this analysis is to examine the feasibility of export
market diversification for Punjab. The analysis involves the top 10 importing
countries for each of the identified exportable from Punjab thus suggesting the key
markets where the identified products from Punjab can be exported. The reference
period is 2013-14.The analysis provides an assessment of the existing export
destinationsfor Punjab for each of the identified product.
b. Identify the major competitors of India for each of the identified exportable.
For this, the top 10 exporting countries for each of the export interest item of
Punjab will be studied. The reference period is 2013-14.
c. An analysis of tariff barriers faced on thrust products by Punjab
exporterswill also be carried out.
Step 2- Step by Step Evaluation Process: Calculate Nominal Protection Coefficient
(NPC). For this purpose first take the FOB price of Punjab “Identified products” at
National level find out coefficient with comparing with prices of Identified products of
Punjab. Logistics cost at 12% has to be added in Punjab “identified products”.Nominal
protection coefficient is the ratio between the price realized for a “Identified product”
(FOB) at the time of export from the country and the price of “identified products” of
Punjab plus normal logistics cost to commonly used maritime port. A ratio > 1 indicate
that exports from state are not competitive and if it is < 1, it is considered that the same
are competitive.
Step 3- Strategy for Exportable Products: Specific cases of identified products shall be
developed by clearly listing the strengths, weakness, opportunities and threats for each
of the identified products. Strategy for border trade to Pakistan shall also be explained
by clearly listing the opportunities for border trade including the products areas that
are still under negative list for border trade. Cases will help exporters to understand the
issues involved in identified areas of exportable products from Punjab.
A Study on Export Potential and Strategy
CHAPTER 2:
ECONOMIC PROFILE OF PUNJAB
2.1 OVERVIEW OF PUNJAB: The state of Punjab is one of the most vibrant and dynamic
state in the whole of India. It is located in North Western part of the country and is called as
the “Land of Five Rivers”. The word ‘Punjab’ comprises of two words; “punj” meaning five
and “ab” meaning water, thus called as the land of five rivers. These five rivers are
Sutlej, Beas, Ravi, Chenab and Jhelum. Punjab is the land of great socio-economic prosperity
and has rich heritage & culture. The plains of Punjab, with their fertile soil and adequate
water supply, are naturally suited to be the ‘breadbasket’ or ‘granary of cereals’ for India.
The state has achieved tremendous growth after the independence primarily due to
success of the Green Revolution, however the economy of Punjab has faced several
challenges in two key areas of economic activity that is the challenges to its agricultural &
industrial sectors and as a result the economic growth in recent years has been slower than
expected potential. Punjab is an important state of India with higher economic and social
indicators in comparison to other key states. The snap shot of socio-economic profile of
Punjab and associated indicators is depicted in Table 2.1 as under:
Table 2.1: Snap shot of Socio-Economic Profile of Punjab
S. No.
1
2
Economic Description
Geographical Area
a. Rural Area
b. Urban Area
c. Area under Forests
Administrative Set Up
a. Divisions
b. Districts
c. Sub-Divisions
d. Tehsils
e. Sub-Tehsils
f. Blocks
g. Seats in Rajya Sabha
h. Lok Sabha Constituencies
i. Vidhan Sabha Constituencies
j. Towns $- Census 2011
k. Census Towns- 2011
l. Inhabited Villages -Census 2011
Unit
Sq. Km
Sq. Km
Sq. Km
Sq. Km
Status
50362
48265 (96%)
2097 (4%)
3050 (6%)
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
5
22
82
82
85
146
7
13
117
143
74
12581
A Study on Export Potential and Strategy
3
4
Table 2.1: Snap shot of Socio-Economic Profile of Punjab (contd.)
m. Zila Parishads
No.
22
n. Municipal Committees
No.
143
o. Improvement Trusts
No.
23
Population(Census-2011)
a. Total Population
Lakh
277.43
b. Male population
Lakh
146.39
(52.8%)
c. Female population
Lakh
131.04
(47.2%)
Rural Population 2011
Lakh
173.44
Percentage of rural to total population
%
62.52
Urban Population
Lakh
103.99
Percentage of urban to total population
%
37.48
Density
Per sq.km
551
a. Highest density(Ludhiana)
-do978
b. Lowest density(Sri Muktsar Sahib)
-do348
Literate and Educated Persons **
No.
18707137
a. Literacy(Total)
%
75.8
b. Male
%
80.4
c. Female
%
70.7
Sex ratio(Female per 1000 Males)
No.
895
a. Highest (Hoshiarpur)
No.
961
b. Lowest (Bathinda)
No.
868
c. Decennial growth rate 2001-2011
%
26.1
Poverty Estimates 2011-12
Poverty Line for 2011-12 Monthly Per
Capita
a. Rural
Rs.
1054
b. Urban
Rs.
1155
Population below Poverty Line 2011-12
%
8.26
a. Rural
%
7.66
b. Urban
%
9.24
Per Capita Income(at current prices)
a. 2011-12
Rs.
76895
A Study on Export Potential and Strategy
Table 2.1: Snap shot of Socio-Economic Profile of Punjab (contd.)
5
6
7
8
9
c. 2012-13
d. 2013-14
Per Capita Income (at constant 2004-05
prices)
a.
a. 2011-12
b. 2012-13
c. 2013-14
Agriculture(2012-13)
a. Net Area Sown
b. Total cropped area
c. Cropping Intensity***
Production of crops (2012-13)
a. Total cereals
b. Total pulses
c. Total food grains
d. Total oil seeds
Gross Area Irrigated
Energy(2012-13)
a. Consumption of Electricity
b. Per Capita Consumption of Electricity
c. Percentage of electrified villages to
total 12581 inhabited villages
Commercial Banks In Punjab
a. Scheduled Banks
b. Non-Scheduled Banks
Cooperation (2011-12)
a. Cooperative Societies
b. Membership
c. Working Capital
Animal Husbandry(2012-13)
a. Veterinary Hospitals
Rs.
Rs.
84526
92638
Rs.
Rs.
Rs.
46325
47834
49411
000 Hectare
000 Hectare
%
4134
7902
191
‘000’ M ton
"
"
"
000 Hectare
28490
12
28502
70
7771
MKWH
KWH
%
35742
1257
100
No.
No.
4700
26
No.
Lakh
Rs. Crore
19415
51.41
57127.17
No.
1367
A Study on Export Potential and Strategy
b. Permanent outlaying dispensaries No.
1485
and insemination units
c. Veterinary Hospitals under Zila
No.
582
Table 2.1: Snap shot of Socio-Economic Profile of Punjab (contd.)
10
11
Parishads
d. Area stocked with fish
e. Total live stock(Animal census-2007)
f. Total poultry(Live stock census-2007)
Factories Covered Under Annual Survey
Of Industries (ASI) 2011-12
a. No. of factories
b. Fixed Capital
c. No. of employees
d. Net value added
Miscellaneous (2012-13)
a. Post offices
b. Police Stations/Police Posts
c. Milk plants
d. Telephone connections
e. Telephone Exchanges
Hectare
Thousand
Thousand
11686.59
7331
18900
No.
Rs. Lakh
No.
Rs. Lakh
12593
3734564
600041
3293897
No.
No.
No.
No.
No.
3850
545
79
959661
1496
Source: Statistical Abstract of Punjab 2013 and accessed on December 13th, 2014
According to 2011 census, the population of Punjab stands at about 27 million, making it
the 15th most populated state in India. The state is spread over an area of about 50000 sq.
km. making it the 18th largest state in the country in terms of area. The density of
population per sq. Km. is about 550 which is inevitable given the opportunities of growth
and development in the state (refer appendix 2.1). The state has SGDP growth rate (at
current prices) of about 13% which is below the national average of 17%. The population
of the state is rising considerably due to rapid efforts towards development, progress and
resultant migration. The literacy rate in the state is about 73%, a figure that has improved
tremendously in the last few years due to the consistent efforts of the state government.
The sex ratio in Punjab leaves a lot to be desired as it lags behind the national average by a
lot of points. The statistics in the Punjab Census 2011 reveal facts that can be instrumental
in planning for a better development plan for the state. Table 2.2 as under gives key
demographic and their comparison with pan-India numbers.
A Study on Export Potential and Strategy
Table 2.2 Demographic Indicators of Punjab & India
1
2
3
4
5
6
7
8
Indicators
Geographical Area
Population
Decadal Growth Rate
Density of Population
Urban to Total Population
Sex Ratio
Literacy Rate (LR)
Death Rate
Unit
Lakh Sq. Km
Crore
Percentage
Population/Sq. Km.
Percentage
Females/1000 Males
Percentage
Per 1000 Mid-year Pop.
Punjab
0.50
2.77
13.88
550
37.48
893
76.7
6.8
India
32.87
121.02
17.64
382
31.16
940
74.04
7.1
Source: Punjab Statistical Atlas 2014 and accessed on December 13th, 2014
The present state of Punjab came into being after being organized into three smaller states;
these are Haryana, Himachal Pradesh and present day Punjab. It has witnessed another
division earlier at the times of independence when Punjab state was divided into India and
Pakistan. The geographical area of present Punjab is much smaller than what it used to be
before independence. This North-West state of Punjab is bordered by the Indian states
of Himachal Pradesh in the east, Haryana to the south and southeast, Rajasthan to the
southwest, the Pakistani province of Punjab to the west, and Indian state of Jammu and
Kashmir in the north. Most of the Punjab lies in an alluvial plain with many rivers and an
extensive irrigation canal system. The southwest of the state is semiarid, eventually
merging into the Thar Desert. The Shiwalik Hills extend along the north-eastern part of the
state at the foot of the Himalayas. Except in the north, where there are forested mountains
yielding salt and coal, the Punjab is a level alluvial plain, very fit for agricultural production.
There has been decline in rainfall in recent years and is also irregular, but extensive
irrigation systems using the waters of the great rivers have made possible enormous
agricultural production of key crops. The contribution of Punjab especially in agricultural
sectors is immense and same is evident from Table 2.3 as under:
Table 2.3: Significance of Punjab Agricultural Sector to Indian Economy
Item
Unit
Food Grain (000 tonne)
Production
Contribution to Central Pool
Wheat
(Lakh Tons)
2010-11
27846
2011-12
29085
2012-13
28502
2013-14
27801
102.1
109.6
128.3
108.97
A Study on Export Potential and Strategy
Rice
(Lakh Tons)
86.3
77.3
85.6
81.06
Share to Central Pool
Wheat
%
45.4
38.7
33.6
43.4
Table 2.3: Significance of Punjab Agricultural Sector to Indian Economy (contd.)
Rice
Net
Irrigated
Area
Cropping
Intensity
%
000 Hectare)
25.3
4070
22.1
4086
25.1
NA
29.3
NA
(Percent)
189.56
191.14
NA
NA
Source: Punjab Economic Survey 2013-14 and accessed on December 13th, 2014
Punjab is unambiguously one of the most wonderful states in India with regards to the
climate. The state has fabulous weather throughout the year which is also conducive for the
growth of a variety of crops. Wheat (by far the leading crop), millet, barley, cotton, and
sugarcane are grown, and there are extensive fruit orchards. The soil characteristics of
state of Punjab are influenced to a limited extent by the topography, vegetation and parent
rock. Punjab is divided into three distinct regions on the basis of soil types: south-western,
central, and eastern. Punjab's climate is characterized by extreme hot and extreme cold
conditions. Annual temperatures in Punjab range from 1 °C to 46 °C (min/max), but can
reach 49 °C in summer and 0 °C in winter.
Punjab is well connected by all modes of transport except water transport. It has one
international airport located in Amritsar and another airport located at Union Territory of
Chandigarh providing easy access for trade & logistics. The road and railway networks are
also excellent when compared to other competing states of India; however being located at
hinterland, away from maritime ports, put Punjab in disadvantageous position. Virtual
infrastructure in terms of telephony and internet access is also very good in Punjab. The
state of Punjab has 22 districts which comprise sub-divisions, tehsils and blocks (Table
2.1). These are Amritsar, Bathinda, Faridkot, Fatehgarh Sahib, Barnala, Fazilka, Firozepur,
Gurdaspur, Hoshiarpur, Jalandhar, Kapurthala, Ludhiana, Pathankot, Mansa, Moga,
Muktsar, Nawan Shehar, Patiala, Roop Nagar, Ajitgarh and Sangrur. Fazilka and Pathankot
are newly built districts in Punjab in 2013, as a result, total number of districts has become
22 comprising of 157 towns and 12,278 inhabited villages. The state capital of Punjab is
Chandigarh.
2.2 EMERGING GLOBAL ECONOMIC SCENARIO & TRADE: The macroeconomic indicators
of the economy of Punjab in context of present global economic scenario are positive and
economic growth in recent years has been good. However there are structural issues that
A Study on Export Potential and Strategy
need to be addressed by policy makers failing which benefits, arising out of changing
economic scenario at national level under new government and signs of revival in global
economy, cannot be reaped-out. As is evident from global economic clues, the global
macroeconomic scenario has shown signs of improvement during 2013-14 and is expected
to recover further in 2014-15 after a protracted period of economic slowdown due to subprime crisis and Euro area meltdown. The World Economic Outlook (WEO) update
released by the IMF in April 2014 has projected the global growth to strengthen from 3 per
cent in 2013 to 3.6 per cent in 2014 and further to 3.9 per cent in 2015, with advanced
economies contributing much of the impetus for growth recovery. The emerging market
and developing economies including India are projected to contribute more than twothirds of global growth, with growth expected to pick up gradually from 4.7 per cent in
2013 to about 4.9 per cent in 2014 and further to 5.3 per cent in 2015. The growth pattern
in various regions (Table 2.4) of the world is projected to be as under:
A Study on Export Potential and Strategy
Table 2.4: Growth Pattern of Various Region in World Markets
World
Advanced Economies
Euro Area
Other
Advanced
Economies
Newly Industrialized
Asian Economies
Emerging Market and
Developing
Economies
Central and Eastern
Europe
Commonwealth
of
Independent States
Developing Asia
ASEAN-5
Latin America and
the Caribbean
Middle
East
and
North Africa
Sub-Saharan Africa
2003
2011
2012
2013
2014
3.7
2.0
0.7
2.7
3.9
1.6
1.4
3.3
3.2
1.3
3.5
1.4
1.9
2.7
4.1
2.2
1.0
3.3
2003-2013
average
(GDP,
constant prices,
% change)
3.8
1.6
1.1
3.2
3.2
4.0
1.8
3.2
3.9
4.0
6.3
6.3
5.1
5.5
5.9
6.5
4.8
5.3
1.8
2.4
3.1
4.0
7.7
4.9
3.6
3.8
4.1
5.1
8.1
5.8
2.1
8.0
4.5
4.5
6.6
5.7
3.0
7.1
5.5
3.6
7.5
5.7
3.9
8.5
5.3
4.0
7.5
3.5
5.2
3.4
3.8
5.0
4.8
5.3
4.8
5.8
5.7
5.6
Source: Global Finance Magazine, 2014 and accessed on December, 13th 2014
In addition to improvements in global economic environment, India’s external sector
witnessed significant improvement during 2013-14 (Figure 2.5). With a pick-up in exports
and moderation in imports, trade deficit contracted significantly during the year as
compared to that in the preceding year. Some pick-up in economic growth of trade partner
countries coupled with depreciation of the Indian rupee helped India’s exports to grow in
2013-14. India’s exports started improving in July 2013, though the uptrend in exports was
temporarily abated in February and March 2014. It subsequently witnessed upward trends
in September-October (Figure 2.6) followed by again downward trends in November-
A Study on Export Potential and Strategy
December 2014. Exporters are keenly looking at announcement of new Foreign Trade
Policy for the period 2015-19. Imports also moderated since June 2013, largely driven by
fall in gold imports and lower non-oil non-gold imports reflecting slowdown in domestic
economic activities and decline in international prices of some commodities especially that
of metals and oil. This led to a narrowing of India’s trade deficit by about 28 per cent in
2013-14. In the light of these global and national economic developments, the
macroeconomic environment at external sector is favourable for exporters of Punjab to
expand and diversify their trade operations in international markets. The yearly trends in
India’s exports, imports and trade balance are given in Figure 2.5 as under:
Figure 2.5: India’s Exports, Imports and Trade Balance from 2011-12 to 2013-14
Source: Director General of Commercial Intelligence, Kolkata accessed at RBI database on 4 th Jan. 2015
India’s merchandise exports improved in 2013-14, although the pace of export growth was
largely uneven. After declining in Q1, exports recovered in Q2 and continued to grow in Q3
albeit at slower pace finally declining in Q4 during 2013-14. On cumulative basis, India’s
exports grew by 4.1 per cent to US$ 312.6 billion in 2013-14 as against a decline of 1.8 per
cent at US$ 300.4 billion in 2012-13. Moderation in merchandise imports which began in
June 2013 intensified further in Q3 of 2013-14 but the pace of decline moderated
marginally in Q4 of 2013-14. On cumulative basis, India’s merchandise imports at US$
450.1 billion recorded a decline of 8.3 per cent in 2013-14 as compared with a marginal
A Study on Export Potential and Strategy
increase of 0.3 per cent in 2012-13. In India, policy measures aimed at curbing gold
imports, as well as weaker domestic demand for non-oil non-gold imports, caused fall in
merchandise imports during the period. The month on month progress of India exports,
imports and trade balance is given in figure 2.6 as under:
Figure 2.6: India’s Exports, Imports and Trade Balance from 2011-12 to 2013-14
(million US$)
Source: Director General of Commercial Intelligence, Kolkata accessed at RBI database on 4 th Jan. 2015
2.3 EMERGING ECONOMIC SCENARIO OF PUNJAB: The political economics of Punjab
development plans is predominantly centered around the agriculture sector which
contributes far lesser than other sectors such as industrial and services, and as a result it is
having a low industrial output than expected potential. Lack of political will for promotion
of industrial sectors coupled with scarcity of the basic minerals including fuels, is the
principal cause for poor industrial progress. Even after lower sectoral contribution,
agriculture is considered as foremost constituent of the Punjab economy, primarily due to
large dependence of population on agriculture along with contribution it makes for cereals
and other crops for food grains needs of country. The state is world famous for its huge
production and productivity of wheat, rice and milk. The agro-based industries include
food products, beverages, cotton, wood as well as papers. The economic growth of Punjab
has been in line with national economic trends and achievements. Punjab economy grew at
around 6.5% in 2010-11 and 2011-12, witnessed a down trend in the year 2012-13 when
state GSDP grew merely at 4.63% and has again witnessed the upward trend in 2013-14
when state economy has grown by around 5.24%. In absolute terms, the state economy has
grown from Rs. 147670 Crores to Rs. 173221 crores at base of 2004-05. Gross State
Domestic Product at current prices is Rs. 317054 crores in 2013-14, which has grown from
A Study on Export Potential and Strategy
Rs. 256374 crores in 2012-13. Figure 2.7 as under depicts the macroeconomic scenario of
Punjab from 2010-11 to 2013-14.
Figure 2.7: Macro Economic Scenario of Punjab
Punjab GSDP (Rs. Crores) at Current & Punjab State Economic Growth at Current &
Constant Prices
Constant Prices
Source: Economic Survey of Punjab 2013-14
2.4 PUNJAB ECONOMIC PROFILE: SECTORAL APPRAISAL:
At constant prices (2004‐05) the GSDP from agricultural sector, which comprises mainly of
agriculture and livestock activities, has increased from Rs. 35905 crores in 2011‐12 to Rs.
35953 crores (Figure 2.8). During 2012‐13 the agricultural sector registered a growth rate
of 0.14 % as compared to 1.81 % in 2011‐12. According to estimates, it is expected to be Rs.
36113 crores in 2013‐14 showing a growth rate of 0.44 %.
Figure 2.8: Sub Sectors of Punjab GDP (in Rs. Crores) at constant prices of 2004-05
A Study on Export Potential and Strategy
Source: Economic Survey of Punjab 2013-14
At constant prices (2004‐05), the GSDP from the industrial sector which covers the
manufacturing, construction and electricity sectors has increased from Rs. 46520 crores in
2011‐12 to Rs. 47800 crores during 2012‐13 registering a growth rate of 2.75 % as
compared to 2.38 % in 2011‐12. As the figure 2.8 as above estimates, it has grown to Rs.
49017 crores in 2013‐14 showing a growth rate of 2.55 %. GSDP of services sector which
comprises of trade, transport, banking & insurance and public administration, etc.
increased from Rs. 74878 crores in 2011‐12 to Rs. 80835 crores during 2012‐13
registering a growth rate of 7.95 % as compared to 11.82 % in 2011‐12. As figure 2.8 above
indicates, it is expected to increase to Rs. 88091 crores in 2013‐14 showing a growth rate
of 8.98 %. The sectoral growth trends (in %) for Punjab economy from 2008-09 to 2013-14
at constant prices (2004-05) are depicted in Figure 2.9 as under:
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Figure 2.9: Sub–Sectoral Growth Trends (%) in Punjab Economy at constant (200405) Prices
Source: Economic Survey of Punjab 2014
The share of agriculture (proper) in GSDP at constant prices has declined from 21.19 % in
2004‐2005 to 12.84 % in 2013‐14. The share of primary sector which includes agriculture
and livestock has come down from 32.67 % in 2004‐2005 to 20.84 % in 2013‐14. The share
of secondary sector has increased from 24.74 % in 2004‐2005 to 28.30 % in 2013‐14. The
share of tertiary sector which comprises of services sector has increased from 42.59 % in
2004‐2005 to 50.86 % in 2013‐14. It is evident that the share of primary sector in GSDP is
constantly decreasing while that of secondary as well as tertiary sector is increasing. In the
light of above, sector by sector appraisal of Punjab’s economic profile is discussed as under.
2.4.1 AGRICULTURE: Agriculture sector has always remained central to the economic
development of the Punjab economy since independence. The unprecedented growth of the
agriculture sector in the state following the Green Revolution significantly contributed to
making it one of the richest states in the country. In 2013‐14, the sector contributed 20.83
% to the GSDP and as per census 2011, 36 % of total workers depends on it. At present, 82
% of the total geographical area of the State is under cultivation and the cropping intensity
is around 191 % with over 98 % of the cultivable area being under assured irrigation. The
State is amongst the highest ranking states in the country in terms of productivity of wheat
and rice. The State has highest yield of rice (3741 Kgs. per hectare) and second highest
yield of wheat (4898 Kgs. per hectare) after Haryana. The agricultural sector is
instrumental in ensuring national food security by consistently contributing a significant
percentage of wheat and rice to the Central Pool.
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Table 2.10: Punjab Contribution of Rice & Wheat to Central Pool
Year
2009‐10
2010‐11
2011‐12
2012‐13
2013‐14
Contribution of
Rice to Central
Pool
Central Pool
92.8
86.3
77.3
85.6
81.06
Punjab % share
of Rice to Central
Pool
the Central Pool
28.9
25.3
22.1
25.1
29.3
Contribution
of
Wheat to Central
Pool
Central Pool
107.3
102.1
109.6
128.3
108.97
Punjab % share
of Wheat
to
central Pool
Central Pool
42.2
45.4
38.7
33.6
43.4
Source: Ministry of Consumer Affairs, Govt. of India 2014
Punjab has contributed 43.4 % of wheat and 29.3 % of rice to Central Pool during the year
2013‐14. However, the hitherto vibrant agriculture sector of Punjab is now facing serious
challenges posed by deteriorating natural resource base due to monoculture of
wheat‐paddy crop rotation, stagnation in yields of principal crops, declining farm incomes
and rural indebtedness. Urgent initiatives are required to put the stagnating agricultural
economy of the state on fast track. Greater focus on R&D, crop diversification and rural
non‐farm activities are needed to restore the fast waning glory of this sector. The State
Government has taken a number of such initiatives in the recent past to address the
challenges faced by the sector. The key indicators of contribution of Agriculture sector of
Punjab are tabled as under:
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Table 2.11: Key Indicators of Punjab Agriculture Sector
2008‐09
Share of Agriculture & 26.66
allied in GSDP( at
constant prices)
Growth in GSDP in 2.03
Agriculture & allied
sector
Agriculture
1.89
Forestry & Logging
3.92
Fishing
9.49
GCF in agriculture as 6.21
percentage
of
agriculture GSDP
2009‐10
25.02
2010‐11
23.86
2011‐12
22.81
2012‐13
21.85
2013‐14
20.83
‐0.30
1.64
1.85
0.16
0.44
‐0.57
3.94
9.73
6.21
1.56
3.38
2.58
6.53
1.75
4.25
0.6
6.6
‐0.05
4.48
1.54
NA
0.21
4.66
3.79
NA
Source: Economic and Statistical Organization, Punjab 2014
The share of agriculture and allied sector in Punjab GSDP has been rapidly declining in the
recent years primarily due to higher average growth of industrial and services sector. The
share of Agriculture & Allied sector in the GSDP was 27.66 % in 2007‐08 and which has
decreased to 20.83 % in 2013‐14. The declining share represents the structural
transformation of the economy from agriculture to other sectors of the economy. The
agriculture sector in the state is showing signs of a serious slowdown over the past few
years. The growth rate agriculture (proper) has remained way below 2 % in all the years
from 2007‐08 to 2013‐14 with growth turning negative in 2009‐10 and 2012‐13. The
agriculture (proper) recorded a nominal growth of 0.21 % in 2013‐14 as compared to the
negative growth of ‐0.05 % in 2012‐13. Slow growth of the agriculture (proper) sector has
kept the overall growth of the agriculture and allied sectors low at 0.16 % in 2012‐13 and
0.44 % in 2013‐14. The growth in agriculture sector is slowing down as cropping intensity
and irrigation potential have already been fully exploited and the growth in productivity
has also reached a saturation point. Besides, farmers are not ready to take risk due to
assured returns of wheat & paddy and very few advances have taken place in R&D in this
sector. The market arrival of main cereals in Punjab is depicted as under:
A Study on Export Potential and Strategy
Figure 1.12: Market Arrivals of Wheat & Paddy in Punjab
Source: Ministry of Agriculture, Government of India 2014
The area under cultivation in the State was 41.34 lakh hectares in 2011‐12. Cropping
intensity which depicts the percentage of gross area sown to net area sown was 191
hectares in 2011‐12. Wheat and paddy covers the major portion of the gross cropped area
as area under these two crops has increased from 47 % in 1970‐71 to 80.64 % in 2012‐13.
Area under wheat has however decreased marginally from 35.27 lakh hectares in 2010‐11
to 35.12 lakh hectares in 2012‐13 and is expected to decline further to 34.70 lakh hectares
during 2013‐14. However, the area under Paddy has slightly increased from 28.14 lakh
hectares in 2011‐12 to 28.45 lakh hectares in 2012‐13. Table 2.13 as under depicts the area
under major agricultural crops in Punjab:
Table 2.13: Area under Major Agricultural Crops (In ‘000 Hectares)
ITEM
1990‐91 2000‐01 2010‐11 2011‐12 2012‐13
2013‐14
Rice
Wheat
Other Cereals
Pulses
Total Food grains
Oilseeds
Sugarcane
Cotton
2015
3273
237
143
5668
104
101
701
2773
3470
177
48
6468
88
96
505
2612
3408
203
54
6277
86
121
474
2826
3510
148
20
6504
56
70
483
2814
3527
146
20
6507
52
80
515
2845
3512
145
13
6515
52
83
481
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Source: Directorate of Land Records & Agriculture, Government of Punjab 2014
The total food grains production in Punjab has increased significantly over the last few
decades. In 1990‐91, the production of food grains was 192.18 lakh metric tons, which
increased to 285.02 lakh metric tons in 2012‐13 showing an increase of 48.31 %. The
production of food grains is likely to be 278.01 lakh metric tons in 2013‐14. Wheat and rice
played a major role in pushing up agricultural production in the State. The production of
rice has increased from 65.06 lakh metric tons in 1990‐91 to 113.74 lakh metric tons in
2012‐13 showing an increase of 74.82 %. The production of rice is expected to decline to
108.15 lakh metric tons in 2013‐14. Similarly, the production of wheat has increased from
121.59 lakh metric tons in 1990‐91 to 165.91 lakh metric tons during 2012‐13 registering
an increase of 36.45 %. Likely estimate of wheat for 2013‐14 is 163.00 lakh metric tons.
The production of pulses is likely to increase from 0.12 lakh metric tons in 2012‐13 to 0.49
lakh metric tons in 2013‐14.
Figure 2.14: Production of Agricultural Crops in Punjab (In '000 Metric Tonnes)
Source: Ministry of Statistics and Programme Implementation
Punjab agriculture is known for use of high yielding varieties. During 2012‐13, 100 % area
of wheat, rice and bajra and 96 % area of maize were under high yielding varieties. Due to
several challenges in crops such as rice, wheat and pulses, there is shifting trend towards
exploration of the agro business opportunities into non-tapped areas which assure
remunerative prices from certain crops like maize, sugarcane, farm forestry and cotton.
Following are the macro economic developments in production, sourcing and supply of
these crops in Punjab.
a. Maize: The state proposes to increase the area under maize from 1.4 lakh hectares
to 5.5 lakh hectares during the next 7‐8 years. Subsidy on various inputs like plant
A Study on Export Potential and Strategy
protection equipment, pesticides, weedicides, supply of hybrids seeds, bed planters
etc. would be provided.
Figure 2.15: Production of Agricultural Crops in Punjab (In '000 Metric Tonnes)
Source: Ministry of Statistics and Programme Implementation
b. Sugarcane: To make sugarcane equally or more profitable than other crops,
farmers would be encouraged to take up innovative technologies for sugarcane
through various interventions like demonstration on intercropping single bed
technique, farmer field schools, seed replacement programme, subsidy on
agricultural implements etc.
c. Farm‐Forestry: At least 2 lakh hectares area is proposed to be covered under farm
forestry in Punjab on a rotation cycle of 8 years by planting fast growing species like
eucalyptus, poplar, melia, gmelina etc.
d. Cotton: The promotion of cotton in the state is an integral part of crop
diversification. Various interventions would be undertaken to popularize cotton in
state viz. plant protection equipments, bio‐pesticides, distribution of weedicides, BT
seeds.
Farmers in Punjab are also shifting towards changing consumption patterns of households
towards high value horticulture product like vegetables & fruits, dairy products and animal
products, which has emerged as new profitable alternatives to farmers. The Punjab
Government is making special efforts to encourage crop diversification in the State. The
Government is also implementing a scheme to encourage crop diversification through
development of horticulture. Five citrus estates have been set up and new varieties of
citrus fruits are being supplied to the farmers. Emphasis is also being laid to support
A Study on Export Potential and Strategy
development of commercial dairy farming in the State. Capital assistance is being provided
on construction of animal housing and subsidy on insurance premium. The Punjab Agro
Food grains Corporation (PAFC) has been promoting diversification in the State through
contract farming. The PAFC has been successfully bringing increasing area under basmati,
Hyola, Sunflower, Malting Barley and Maize through contract farming. For this purpose it is
proposed to carry out the diversification programs for the following crops:
a. Horticulture: Due to favorable geo-climatic conditions, the horticulture can be a thrust
area for enhanced production of fruits, vegetables and flowers in Punjab. The area
under fruits increased from 0.68 lakh hectares in 1990‐91 to 0.72 lakh hectares in
2012‐13. Kinnow, orange, malta, lemon, guava, pear, mango and grapes are the main
fruits grown in Punjab. Total production reported under these fruits was 15.03 lakh
metric tonnes for the year 2012‐13.
Table 2.16: Area ('000 Hectare) under Fruits and Vegetables in Punjab
Source: Ministry of Agriculture, Government of India 2014
The total area under all vegetable crops has almost doubled during 1990‐91 to 2012‐13.
The area under vegetables has increased from 0.55 lakh hectares in 1990‐91 to 1.14 lakh
hectares in 2012‐13. Potato, with an area of 0.70 lakh hectares in 2011‐12 is the major
vegetable crop of the State. The state Government has laid special emphasis on the
diversification of agriculture through development of horticulture. To promote horticulture
in the State, the Government is also taking initiatives like strengthening of citrus estates,
establishment of litchi & pear estates and technology dissemination & training in
horticulture practices to farmers. State geo-climatic conditions also favors for production
and export of certain varieties of flowers and state government should endeavor to explore
A Study on Export Potential and Strategy
such possibilities for production and export of flowers and allied production for example,
bee-framing and honey from Punjab.
b. Animal Husbandry, Dairying and Fisheries: Punjab is one among the leading state of
India as far as the livestock sector is concerned and true to these expectations, this
sector has contributed 7.10 % to the GSDP at constant (2004‐05) prices in 2012‐13;
however with mellowed growth trend in 2013-14 with contribution of 6.83 % to the
GSDP. The state is also fast emerging a quality supplier of meat products due to
availability of different varieties of quality animals for meat production. The estimates
of meat production, yield rates from cattle and buffalo in Punjab and India are tabled as
under:
Punjab
India
Table 2.17: Estimates of Meat Production, Yield Rates from
Cattle and Buffalo in Punjab (2012-2013)
Cattle
Buffalo
Est.
of Av. An. Meat
Est.
of Av. An.
Slaughter Yld./
Production Slaughter Yld./
Animals
Animal
(000 Tns.)
Animals
animal
(in 000)
(kg)
(in 000)
(kg)
NA
NA
NA
795.79
153.46
3192.54
102.43
327.03
9015.96
122.43
Meat
Production
(000 Tns.)
122.12
1103.85
Source: Ministry of Agriculture, Government of India
Similarly, Punjab has growing trends in production of eggs and average annual growth
rate of eggs production in Punjab is higher than the national average.
State
Punjab
India
Table 2.18: Production of Eggs in Punjab
(2007-2008 to 2012-2013)
(Million Nos.)
2009-10
2010-11
2011-12
328.3
354.5
360.3
6024.4
6302.4
6645.0
2012-13
379.11
6977.0
Source: Ministry of Agriculture, Government of India
c. Dairy Sector Development for Trade: Punjab is one of the leading producers of milk
with dairy production of 26 million kg per day. It is also one among the top producer of
milk in India. The per capita availability of milk in the state is highest in the country
(Table 2.19). There are 79 milk plants and chilling centers in the State. Around 200
integrated Buffalo Development Centers have also been set up to cover about 1600
villages across the state so as to tap the potential of dairy sector. The State produced
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9724 thousand tonnes of milk in the year 2012‐13 which further increased to 10,014
thousand tonnes in 2013-14.
Table: 2.19: Productions and Per Capita Availability of Milk
Year
2009‐10
2010‐11
2011‐12
2012‐13
2013‐14
India
Milk
Production
Imports of ('000 ton)
Diary
Products
(US
Thousand
Dollar)1
In Punjab
51361808 9389
60885816 9423
74778376 9551
72438049 9724
82480718 10014
Per
capita
Availability of
milk
(grams
per day)
Per
capita
Availability of
milk
(grams
per day)
In Punjab
915
931
944
961
971
in India
273
281
290
N.A2.
N.A.
Source: Comtrade 2014 & National Dairy Development Board 2014
The per capita availability of milk in Punjab is also much higher as compared to the All
India level (Table 2.19). In order to develop the dairy sector into a lucrative alternative
to crop production and also as a thrust area for export promotion of value added dairy
products, Punjab government is laying special thrust on education and training of agrofarmers. It is the constant endeavor of state government to divert Punjab agro-farmers
towards commercial dairy farming with a special focus on improving quality of milk
and value addition at farm level by providing dairy entrepreneurship training and
assisting farmers in establishing commercially viable units of dairy farming. To
encourage large scale production of value added milk products which are suitable for
exports or may substitute the existing imports, Punjab Government has launched a new
scheme of mechanization of dairy farms which proposes to cater to mechanization
needs of both individual farmers and groups of small farmers. The table as under
India Diary Imports HS Code 0406 (Cheese and curd), 0402 (Milk and cream Concentrated) 0401 (Milk &
Cream Not Concentrated) 0405 (Butter & other fats) 0404 (Whey and natural milk products) and 0403
(Buttermilk & Yogurt)
1
2
Not Available
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depicts the possibilities of milk trade for exports and if not for exports for replacing the
India’s growing imports of dairy products.
d. Fisheries sector in Punjab: In Punjab, at present 11287 hectare area is under fish
culture and there are around 8000 fish farmers. The state is having the highest average
fish production of 6560 kg/ha against the national average of 3000 kg/ha. There are
868 kms of rivers and 4370 hectare reservoirs & 16585 kms of canals as notified water
areas. The farmers are rapidly adopting intensive fish culture in ponds and tanks on
modern scientific lines through composite fish culture of fast growing species. For
making fish culture more lucrative and attractive to farmers and for bringing more area
under fish culture, the main thrust of the State Government in recent years has been on
providing quality fish seed of cultural varieties of fish, adopting more suitable village
ponds under fish farming, providing opportunities for gainful self‐employment in rural
areas, providing better extension services at pond site, providing facilities of short term
training in fish farming and to arrange visits of fish farmers to other states and
developing saline/brackish water into fish farming. With a view to develop
professionally qualified human resource in fisheries through education and training in
fisheries, to conduct region specific research in fisheries and to provide advisory and
consultancy services, a college of fisheries has been established at GADVASU Campus at
Ludhiana. The production, growth trends in fisheries sector in Punjab along with all
India production are tabled as under:
Year
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
Table 2.20: Trends in Production of Fisheries in Punjab and
India (2004-2005 to 2012-2013)
Inland Fish production
Fish production Growth
India’s Production of Fish in
(In '000 tonne)
rate (%)
000 Tons
77.70
-7.11
6304.75
85.64
10.22
6571.62
86.70
1.24
6869.05
78.73
-9.19
7126832
86.21
9.50
NA
122.86
42.51
NA
97.04
-21.02
NA
97.62
0.60
NA
99.13
1.55
NA
Source: http://www.punjabstat.com/agriculture/2/fisheries/101/stats.aspx
Punjab producers exports significant volumes of agro products out of this huge agro
production. Our analysis of DGCI&S indicates that these exports are not regular which may
A Study on Export Potential and Strategy
be due to reasons such as changes in world demand, restrictions on exports of agro
products for supplementing domestic demands and uneven agro production patterns.
Analysis as under indicates that percentage contribution of agro products exports in
Punjab’s total production is increasing which is a healthy sign for an economy where more
than 50% population is dependent on agriculture. The key exportable products from
Punjab are falling under HS chapter code of 22, 23, 10, 07, 19, 20, 09, 07 and 12. Tables as
under indicates that volumes of agro exports from states of Punjab:
Table: 2.21: Punjab Agro Exports as Percentage of Total Agro Production & Total Exports
2009-10 2010-11 2011-12 2012-13
2013-14
Punjab Agro Exports ( Rs.
3698
3975
6390
10322
11098
Crores)
Sectoral Contribution of
34694
35267
35905
35953
36113
Agriculture in State GDP ( at
2004-05) Prices ( Rs.
Crores)
Punjab total Exports ( Rs.
12962
19436
28256
35311
42729
Crores)
Percentage of Agro exports
10.65
11.27
17.79
28.70
30.73
as Punjab Agro Sector (%)
Percentage of Punjab agro
28.52
20.45
22.61
29.23
25.97
products as Punjab total
exports (%)
Source: Director General of commercial Intelligence & Statistics, Kolkata 2014
2.4.2 INDUSTRIES: Industrialization plays a vital role in the economic development of an
economy and it particularly more relevant for state like Punjab where agricultural output
has been showing sign of slow down as it has already peaked to maximum possible level
and only enhanced R&D in agriculture sector can further help it grow. Rapid
industrialization is also a key driver of the structural change in the economy which
represents a rising share of industry and services in the GSDP as compared to agriculture.
Over the years Punjab has also witnessed an increase in the contribution of industry sector
in the GSDP thus reflecting its growing importance in the economy. Political economics of
state economic planning is also slowly and steadily shifting towards industry and services
and political masters has started realizing that agriculture alone cannot be way forward for
economic growth, employment generation and social well-being of state. The share of
industry in the GSDP has been consistently increasing and reached a high of 30.79 % in
2010‐11. With announcement of “Make in India campaign” by government of India, it is
high time that policy makers in Punjab shall endeavor to speed up the industrialization of
A Study on Export Potential and Strategy
state. Manufacturing which is the most dominant sector of the industry has also seen a
rapid increase in its share which reached to 20 % of the GSDP in 2013‐14. The State
Government has taken a number of significant initiatives during the year 2013-14 to
encourage industrial investments in the state. Table as under depict the number of
industrial units both in small scale and large & medium enterprises and their production in
(Rs. Crore) from 2008-09 to 2013-14.
Table 2.22: No. of Small, Medium & Large Units in Punjab and their production from
2009-10 to 2013-14
Year
Units (No.)
Production (Rs. Crore)
2009-10
2010-11
2011-12
2012-13
2013-14
SSU
164732
168000
151977
154421
160000
L&M
400
425
380
450
460
Total
165132
168425
152357
154871
160460
SSU
48000
54000
56184
62971
68000
L&M
70000
82000
92393
105000
125000
Total
118000
136000
148577
167971
193000
Source: Punjab Statistical Abstract 2014
Similarly, Punjab’s economy has witnessed the positive growth in employment generation
both in small scale units and large & medium enterprises. State witnessed the subdued
growth in investment in post sub-prime crisis scenario and this trend need to be reverted
by providing better regulatory and operational business environment so as to tap the full
potential of industry sector in Punjab. Table as under depicts the trends in employment
generation and investment both in small scale units and large & medium enterprises for the
period 2008-09 to 2013-14.
Table 2.23: Employment and Investment Scenario in Industrial Sector of Punjab from
2009-10 to 2013-14
Year
Employment (No.)
Investment (Rs. Crore)
SSU
L&M
Total
SSU
L&M
Total
2009-10
990000
225000
1215000
7300
33500
40800
2010-11
1020000
235000
1255000
8600
40000
48600
2011-12
1033553
238589
1272142
9815
50176
59991
2012-13
1077616
270000
1347616
11459
50000
61459
2013-14
1100000
290000
1390000
12000
55000
67000
Source: Source: Punjab Statistical Abstract 2014
A Study on Export Potential and Strategy
Unfortunately, where as the domestic investment has been flowing to industrial sector of
Punjab, the state economy has failed to attract foreign investments and table as under
depicts the grim scenario of foreign investment in industrial sector of Punjab for the period
2009-10 to 2011-12 (Table 2.24). Only notable FDI proposal for Punjab has been in the
year 2008-09 when it has two investment proposals worth Rs. 215796 crores only and
which was around 20 % of total investment flowing into India in the year 2008-09. Policy
makers of the state must endeavor to provide favorable business environment to attract
the foreign investors so as to speed-up the process of industrial development of key sectors
of state economy.
Table 2.24: Foreign Direct Investment (FDI) Proposals Approved in Punjab
State
2009-10
2010-11
2011-12 (April-August)
Fin.
FDI
FDI Fin.
FDI
FDI Fin.
FDI
FDI
(In Rs.) (In US$)
(In Rs.) (In US$)
(In Rs.) (In US$)
Punjab
0
0
0
0
0
0
0
0
0
India
162 86646.12 1828.15 152 377804.7 8292.59 72 192828.3 4341.41
Source: www.indiastat.org
In 2014, state government organized a Business Summit aimed at attracting investments in
state of Punjab. The event was well received by both domestic as well as global investors
and they have shown their interest for making investments in industrial sector of Punjab.
Punjab has attracted a total of 32 investment proposals which constitute around 4.27 % of
total proposal made for investments in India. Further, these investors have proposed to
invest around Rs. 1731 crores which constitute around 1.45 % of total proposed
investment in India. Table as under depicts the break-up of such investment intentions by
domestic as well global investors in economy of Punjab as well as that of India.
Table 2.25: Break up of Investment Intentions in Terms of [IEMs, FILED,
LOIs/DILs]3Issued in Punjab (2014-Upto April 2014) (Rs. in Crore)
State
No.
Percentage
Proposed Investments
Percentage
Punjab
32
4.27
1731
1.45
India
750
100.00
119177
100.00
Source: Ministry of Commerce & Industry, Govt. of India
IEMs: Industrial Entrepreneur Memoranda filed for deli censed sector, LOIs: Letters of Intent issued, DILs:
Direct Industrial Licenses granted, Prop. Inv: Proposed Investment.
3
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Although Punjab is a very small state in area and it is ranked at no. 18th in all India rank of
states by geographical area, economically, however, it is one amongst the leading states of
India. In certain sectors of industries, Punjab’s contribution to national economy is more
than 25 % and that of industrial exports is more than 50 %. Accordingly, it is important to
make an attempt to compare the growth rate of industrial sector of Punjab with that of
India’s industrial growth so as to understand growth trends & sectoral contribution at state
and national level. Table 2.26 as under depicts the growth rate of industry in Punjab vs
India and percentage contribution in respective SGDP/GDP for each year:
Figure 2.26: Punjab Vs India- Industrial Growth Rate & Contribution to Economy
Source: Statistical Abstract of Punjab
Industrial sector of Punjab has witnessed on an average higher growth in manufacturing
sector when compared to national average. The State Index of Industrial Production (IIP)
for selected registered manufacturing factories is compiled annually (Base 2004-05=100)
on the basis of responding 697 industrial units as per the methodology of CSO, MOSPI, GOI.
The manufacturing sector of Punjab grew by 2.6 % in 2012‐13 as compared to 1.3 % at the
National level. In the year 2013-14, the industrial sector of Punjab registered the growth
rate of 1.8 % while the national industrial average is below 1 %. Figure as under depicts
the trends in growth rate of industrial production of Punjab and India for the period 201011 to 2013-14.
A Study on Export Potential and Strategy
Figure 2.27: Annual Growth in IIP of Manufacturing sector Punjab V/S India
Source: Statistical Abstract of Punjab
While the industrial sector of Punjab is constantly growing, there remains, however,
untapped potential especially in engineering goods where Punjab products are
internationally competitive. Right political intervention in state economic planning can
catalyze the desired expansion and diversification in key industries. There are certain areas
where state has innate potential to grow as these market segments has growing demands
and socio-economic factors for production of such goods are favorable in economy of
Punjab. Few such items are listed as under where state entrepreneurs can focus their
attention for venturing out in international markets.
Table 2.28: Key Producible Products in State of Punjab
Items
Unit
2007-08 2008-09 2009-10
2010-11
Baby Food
Tonne
54
55
56
59
Desi Ghee
Tonne
47
49
50
61
Milk Powder
Tonne
60
65
67
68
Milk (All Kinds)
Litre
296
301
306
306
Instant Coffee
Kg.
4440
4440
4440
4440
Rice (All Kinds)
Tonne
2749
2820
2932
2944
Biscuits
Tonne
45
45
45
47
Sugar
Tonne
675
716
630
644
Vanaspati Ghee
Tonne
277
280
283
283
Mustard/Rape Seed Oil
Tonne
155
154
154
159
Cattle Feed
Tonne
191
204
209
209
Malted Food
Tonne
51
50
51
53
Country Wine
Litre
26994
28192
29445
30108
Indian Made Foreign Liquor
Litre
33690
37414
37692
37413
Beer
Litre
36502
41638
47496
47932
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Ginned & Pressed Tonne
Kapas
Cotton Yarn
Woollen Yarn
Cotton Cloth
Woollen Hosiery
Urea N Content Tonne
Cl. Ammonium Nitrate
Content
Cycle/Rickshaw Tyres
Cycle Tube
Bars & Rods
Ingot (All Kinds)
Angle Channel and Sections
Billets & Slabs
Joint & Rolls
C.I. Pipe and Fittings
Bolts & Nuts
Forgings
Complete Tractors Nos.
Cable (All Kinds)
T.V. Set (Colour)
Picture Tubes
Chassis for Matador
Mopeds
Bicycle (All Kinds)
Bicycle Handles
Foot Balls
Tonne
127
124
139
140
Kg.
Kg.
Metre
Nos.
Tonne
Tonne
10593
8036
3076
7578
893
67
110497
8089
31775
7013
949
67
10783
8591
32443
6893
965
67
11033
8591
31940
6842
965
76
Nos.
Nos.
Tonne
Tonne
Tonne
Tonne
Tonne
Tonne
Tonne
Tonne
Nos.
Km.
Nos.
Nos.
Nos.
Nos.
Nos.
Nos.
Nos.
11289
137282
930
337
102
267
62
84
27
62
57
28
15
389
3
32
4843
29436
23391
107812
138827
1206
347
95
192
61
86
26
57
59
28
15
389
2
29
4843
29473
24385
109488
135143
1281
345
97
184
56
71
25
62
65
28
15
389
2
26
4885
29539
21703
111589
135166
1272
345
95
187
59
73
25
62
68
28
15
389
3
26
4837
29836
21761
Source: Economic Adviser, Govt. of Punjab. (13643) assessed on the basis of Annual Survey of Industries with
base 1993-94
There has been decline in exports of industrial goods as a percentage of total exports which
has witnessed a growth trends in line with national averages. As far as exports of industrial
goods from Punjab are concerned, it exported goods worth Rs. 17430 crores in 2010‐11
and Rs. 21302 crores in the year 2011‐12. Further, industrial exports from Punjab have
increased to the tune of Rs. 24000 crores during the year 2012‐13. Industrial exports from
Punjab are estimated to be Rs. 26,000 crores in the financial year 2013‐14. Table as under
depicts the declining percentage of industrial exports from total exports of Punjab.
A Study on Export Potential and Strategy
Table 2.29: Trends in Punjab Industrial Exports as Percentage of Total Exports
2010-11
2011-12
2012-13
2013-14
Punjab Total Exports
19436
28256
35311
42729
Punjab Industrial
17430
21302
24000
26000
Exports
Industrial Exports as
90%
75%
67%
60%
Percentage of Total
Exports
Source: Director General of Commercial Intelligence & Statistics, Kolkata & Economic Survey 2013-14 Punjab
Punjab has around 740 registered companies under the Information Technology Act and
these are usually small and medium firms engaged in supplies of IT & IT enabled services
for the domestic markets. Punjab cannot attract the major IT companies as it is very
expensive to buy land in India which is also scare at prime locations of business. Similarly,
Punjab has around 11702 companies both from private and public sector engaged in
manufacturing and trading activities both for domestic as well foreign markets. Table as
under indicate the no. of registered companies under IT Act and Companies Act.
Table 2.30: Total No. of Companies in Punjab registered under Information
Technology Act & Company Act
Number of Registered IT
No. of Registered
Companies
Companies
Punjab
740
23107
India
NA
1215306
Source: Ministry of Corporate Affairs, Government of India (2012)
There are around 11702 companies which are directly engaged in commercial activities
and are operating in state of Punjab. This constitutes some 1.63 % of the total registered
companies in India. Ludhiana has maximum number of registered companies followed by
Jallandhar and Amritsar.
Table 2.31: No. of Companies Registered in Punjab by Types of Ownership
Public Limited
Private Limited
Total
Punjab
1547
10155
11702
India
59646
654909
714555
Source: Lok Sabha Unstarred Question No. 4402, dated on 03.05.2012.
In terms of registration of patents / geographical indications which is a vital sign of any
state economic progress and its prowess to protect the intellectual capital and leverage it
A Study on Export Potential and Strategy
as an asset in international markets, Punjab has lagged behind and there is only one
product registration for geographical indications out of total 170 such applicable filed by
firms all over the country. Table as under depicts the Punjab vs India’s number of
provisions for geographical indications of the goods.
Table 2.32: Number of Products Registered under Provisions of Geographical
Indication of Goods (Registration and Protection) Act, 1999 in Punjab
(As on 30.11.2012)
State
No. of Products Registered
Punjab
1
India
170
Source: Rajya Sabha Unstarred Question No. 2016, dated on 12.12.2012
In order to attract export oriented industries, the government of Punjab has enacted
Special Economic Zone Act, 2009 under which purchase of land for SEZ and first sale of plot
have been exempted from stamp duty and registration fee. Punjab government has been
aggressive off-late to facilitate export oriented industries and accordingly, it has proposed
to central government for setting up around 17 Special Economic Zones in the state, out of
which 8 proposals has formally been granted approval for Ministry of Commerce &
Industry, Government of India. Till the end of 2014, only two SEZ are functional and these
are being set up by Quark City and Ranbaxy. Recently a proposal for SEZ dedicated to needs
and requirements of Cycle Industry has also been mooted and is under stages of
operationalization.
Table 2.33: Distribution of Formal Approvals, Notified and Exporting Special
Economic Zones (SEZs) in Punjab (As on 20.06.2014)
State
Formal In-Principle
Notified
Exporting SEZs (Central Govt. +
Approvals
Approvals
SEZs
State Govt./Pvt. SEZs + Notified
SEZs under SEZ Act, 2005)
Punjab
8
0
2
2
India
566
41
388
185
Source: Ministry of Commerce & Industry, Govt. of India. (15754) accessed on www.indiastat.org
In addition to above, state has planned for cluster based development of certain industries
which can start their operations in SEZ areas due to variety of reasons. Accordingly, such
units are advised to set-up as export oriented units (EOU). It is unfortunate to note that
there has been decline in number of notified EOU from 2008-09 to period 2010-11. Table
as under is self-explanatory of declining number of EOU in state of Punjab.
A Study on Export Potential and Strategy
Table 2.34: Number of Applications Received/Approved for Setting up of Export
Oriented Units (EOUs) in Punjab (2008-2009 to 2010-2011)
State
2008-2009
2009-2010
2010-2011
Received
Approved
Received
Approved
Received
Approved
Punjab
2
1
1
0
1
1
India
269
221
172
141
146
119
Source: Lok Sabha Unstarred Question No. 1020, dated on 28.11.2011 accessed on www.indiastat.org
2.4.3 SERVICES: Punjab is one among few states of India which has lower share of services
sector when compared with national average of services sector contribution to Indian GDP.
There is a well evident and established pattern that when an economy moves from lower to
higher stages of economic development, there occur a shift from simpler to more modern
and sophisticated techniques of production on the one hand and such a shift is also
witnessed in production being driven from primary & secondary sector to that of services
sector. In fact the growth of services sector is considered as a pre-dominant factor while
defining the growth and developmental features of any economy. The status, pattern and
growth of services sector coupled with state of art technology have got its own implications
for the future developmental needs of any economy. It is an established fact that developed
economies world over enjoy a higher share of services sector in their respective GDPs. A
state like Punjab cannot remain untouched from these economic realities and it is
important for services sector also to be part of overall growth story of the state of Punjab.
Service sector has contributed to around 43 % to Punjab’s state economy in the year 200809 which has increased to around 51 % in 2013-14. In absolute figures, the contribution of
services sector in Punjab economy has grown from Rs 56322 crores to Rs. 88091 crores
which is a significant achievement as the other sector particularly agriculture sector has
already reached to tipping point and is slowing down in recent years. This sector plays a
leading role in the economy of India, and contributes to around 68.6 % of the overall
average GDP growth between 2002-03 and 2006-07. The size of services sector in Punjab
economy and its share in economy in depicted in the figure as under:
A Study on Export Potential and Strategy
Figure 2.35: Growing Role of Services Sector in Punjab SGDP
Source: Statistical Abstract of Punjab 2013-14
The growth rate of services sector in Punjab in recent years has been higher than other
sectors, i.e primary and secondary sectors. The growth rate of services sector in Punjab has
been 9.57 % in comparison to overall SGDP growth rate of 5.85 % in 2008-09. In the year
2011-12, the growth rate of services sector has been in double digits and it was measured
at 11.82 %. The services sector growth rate has been 7.95 % in 2012-13 and 8.98 % in
2013-14 respectively which is almost one and half times of Punjab overall economic
growth rates. It is evident from the discussion that state has ample potential for growth and
expansion of services sector and policy makers should aim to expand the export related
sectors of services so as to generate additional economic activity and employment for state
of Punjab. Figure as under depicts the trend in services sector growth and overall economy
of Punjab for the period 2008-09 to 2013-14.
A Study on Export Potential and Strategy
Figure 2.36: Punjab Services Sector Growth Rate Surpass Total SGDP Growth rates
Source: Statistical Abstract of Punjab 2013-14
From the years 2011-12 onwards, the services sector of Punjab has witnessed a pattern of
higher growth rate even than the national average. The growth rate of services sector of
Punjab was almost double the national average in the year 2011-12. The services sector
witnessed the growth rate of 7.75 % and 8.98 % in the year 2012-13 and 2013-14
respectively.
Figure 2.37: Punjab Vs India: Services Sector Growth Rate (% per Annum at 2004-05
Prices) from 2008-09 to 2013-14
Source: Statistical Abstract of Punjab 2013-14
A Study on Export Potential and Strategy
A growth pattern higher than the national average prompted us to investigate the
subsectors which has shown higher growth potential and has inherent advantages attached
to them so that same can also be considered for expansion and diversification of services
sector.
An analysis of 6 important sectors of services (transport, storage and
communication, Trade, Hotels & Restaurants, Real Estate, Ownership of Dwellings and
Pubic Administration) indicates that Punjab has higher growth pattern in 2 sectors in
2009-10. There were 3 sectors in 2010-11 which further grew to 5 sectors in the year
2011-12. Railway and banking and insurance were the key drivers for double digit growth
rate of services sector in Punjab in 2011-12 which registered the growth rate of 27.59 %
and 28.52 % respectively. Services sector growth rate in the year 2012-13 has been higher
than national averages and main contributor to this growth story were the sectors such as
storage, communication, Trade, Hotels & Restaurants, Banking & Insurance, Pubic
Administration and other services. Table as under depict the growth story of some of the
key sectors of services of Punjab and Indian economy.
Table 2.38: GROWTH RATE FOR FOR 6 SECTORS UNDER SERVICES SECTOR
Sector
2009-10
2010-11
2011-12
2012-13
2013-14
Punjab
India
Punjab
India
Punjab
India
Punjab
India
Punjab
Transport,
Storage &
Communication
Railways
7.44
14.8
4.34
12.6
10.8
9.4
5.05
6
5.67
8.6
0.54
8.8
-11.16
5.9
27.59
7.5
3.75
0.3
4.83
-
Transport by
other means
Storage
7.54
7.3
3.62
8.2
9.76
8.6
6.49
6.6
6.85
-
1.44
19.3
0.9
3.7
17.33
2.9
11.83
8.6
8.02
-
Communication
11.73
31.5
12.99
21.8
5.29
11.2
2.74
6.5
4.02
-
Trade, Hotels &
Restaurants
4
7.9
8.79
12
8.05
1.2
5.8
4.5
6.94
3.0
Banking &
Insurance
Real Estate,
Ownership of
Dwellings
Pubic
Administration
Other Services
15.77
11.4
18.92
14.9
28.52
12.9
13.34
11.8
16.48
12.9
4
8.3
3.81
5.9
4.17
9.9
3.8
10
3.93
4.6
9.76
17.6
5.49
-0.4
9.33
4.2
8.06
3.4
7.13
5.6
12.48
7.2
12
8.2
8.86
5.4
9.37
6.8
9.14
8.16
7.95
6.96
8.98
Sub Total of
8.62
10.5
9.44
9.67
11.82
6.57
Tertiary
Source: RBI, Ministry of Finance & Statistical Abstract of Punjab 2013-14
India
6.78
CHAPTER 3:
IDENTIFICATION OF THRUST PRODUCTS FOR PUNJAB EXPORTERS
Identification of key products that has potential for exporters is an important milestone for exporters, as it helps them identify the key
product segments, HS code wise and enable them to plan and strategize their business operations accordingly. The significance of
identifying “Thrust Products” is to identify potential trade opportunities that may arise for exporters of Punjab. For this a detailed
analysis has been carried out so as to identify specific products that Punjab exporters can tap at competitive prices in international
markets. Step by step, the analysis of potential thrust products is as depicted and discussed as under:
Figure 3.1: Step By Step Procedure for Identification of Thrust Products for Exports from Punjab
STEP 1: Assessing Supply Side Capabilities For Thrust
Products Of Exports From Punjab
STEP 2: Understanding Demand Side Opportunities Of
Exportable Products
STEP 3: Revealed Competitive Advantage (RCA) Analysis
Of Punjab’s Thrust Products
3.1ASSESSING SUPPLY SIDE CAPABILITIES FOR THRUST PRODUCTS OF EXPORTS FROM PUNJAB: Analysis of Punjab Exports indicates
that Punjab has diverse product basket of exportable products of 6481 tariff lines which is significant when compared with India’s
export basket of approx. 8600 tariff lines out of total tariff lines of approximately 11500. In order to understand the prime thrust
products, having regular frequency in exports, top 80% exports are identified which are mainly from 18 chapters of ITC (HS)
nomenclature. In order to assess the supply side capabilities, following analysis has been undertaken.
a. The product wise export trends (HS 6 digit)of the top 80 percent of the exportable by Punjab to the rest of the world has been
examined. There are a total of 67 tariff lines for Punjab at HS Code 6 digit disaggregation. The reference period is 2009-10 to
2013-14. The results are reported in Table 3.2. Products are identified as high growth or low growth exportable based on average
compound annual growth rate (CAGR) cut-off of 0.79 during the 5-year reference period. Most of the products classified under
cotton, man-made staple fibres and other made up textile articles, plastics, beverages, spirits and vinegar exhibit high export
growth, while the rest exhibit low export growth during the period under study. Semi-milled or wholly milled rice (HS 100630)
has the highest share in total exports from Punjab (21.7%) in 2013-14, followed bysingle yarn of combed fibres (HS520523 and
520524) and toilet linen and kitchen linen (HS 630260) with respective export shares of 5.4%, 2.9% and 3.8% in Punjab’s total
exports for 2013-14. The analysis provides an assessment of the existing export scenario of Punjab.
Table 3.2: Classification of Punjab's Top 80% Exports into High and Low-Growth Products
Product
Code (2
Digit)
Product
Descript
ion
Product
Code (6
Digit)
10
Cereals
100630
22
Beverag
es,
spirits
and
vinegar
Residue
s&
waste
from
220710
23
230400
Product
Description
2009-10
2010-11
2011-12
2012-13
2013-14
Share in Total
Exports
(2013-14)
CAGR
High/Low
Growth (Cut-Off
CAGR =0.790)
Semi-milled
or wholly
milled rice
Undenatured
ethyl alcohol
31894.62
Punjab's Exports (Million INR)
31046.95 42738.70
62161.43
92763.82
21.710
0.306
Low
64.61
142.61
363.02
1029.46
723.49
0.169
0.829
High
Oil-cake and
other solid
residues
570.46
186.45
65.51
922.30
1096.65
0.257
0.178
Low
29
the food
industr
y
Organic
chemica
ls
294190
294110
Other
Penicillins
and their
derivatives
Other organic
compounds
Cyclanic,
cyclenic or
cycloterpenic
Erythromycin
and its
derivatives
Other
2185.89
1586.19
1891.81
1994.41
3583.95
2076.42
3775.68
2858.70
6671.67
3665.74
1.561
0.858
0.322
0.233
Low
Low
2839.93
2064.01
9095.68
4127.83
2367.18
0.554
-0.044
Low
328.99
621.72
1262.81
3087.98
1865.90
0.437
0.543
Low
1243.61
1097.57
1940.91
1799.12
904.07
0.212
-0.077
Low
10.77
330.60
2201.08
3284.37
1310.77
0.307
2.321
High
392020
Of polymers
of propylene
154.77
835.50
2019.02
2248.25
2515.88
0.589
1.008
High
401150
Of a kind used
on bicycles
Of a kind used
on bicycles
Other
Single yarn of
combed fibres
413.01
1271.18
1876.21
2279.03
2299.65
0.538
0.536
Low
661.03
1376.35
2249.98
1955.30
1929.66
0.452
0.307
Low
266.16
5384.57
547.75
12492.63
1187.37
14740.08
1208.95
18282.02
1214.09
22863.26
0.284
5.351
0.461
0.435
Low
Low
294200
290611
294150
30
39
40
52
Pharma
ceutical
product
s
Plastics
and
articles
Rubber
and
articles
Cotton
300390
401320
401199
520523
520524
520512
520513
520514
520521
520532
520511
520932
520544
55
Manmade
staple
520299
550953
Single yarn of
combed fibres
Single yarn of
uncombed
fibres
Single yarn of
uncombed
fibres
Single yarn of
uncombed
fibres
Single yarn of
combed fibres
Multiple
(folded) or
cabled yarn
Single yarn of
uncombed
fibres
Dyed ( 3thread or 4thread twill)
Multiple
(folded) or
cabled yarn
Other
Other yarn, of
polyester
staple fibre
712.27
2600.85
4868.73
9185.86
12552.76
2.938
1.049
High
298.00
1643.96
2662.87
4525.26
7573.63
1.772
1.245
High
397.58
1724.87
2922.58
2588.65
3703.58
0.867
0.747
Low
26.93
109.35
874.45
1125.70
2237.78
0.524
2.019
High
1549.06
926.03
445.21
1151.74
1835.15
0.429
0.043
Low
56.45
293.11
214.71
827.80
1322.45
0.309
1.200
High
265.00
801.32
457.27
807.56
1216.24
0.285
0.464
Low
1.56
8.26
85.87
476.85
1008.00
0.236
4.042
High
86.30
690.55
649.46
850.34
1006.92
0.236
0.848
High
8.26
166.25
138.26
966.12
321.49
1998.19
254.15
2287.22
786.96
1888.99
0.184
0.442
2.124
0.836
High
High
fibres
550320
550932
550330
550130
61
Art of
apparel
&
clothing
access,
knitted
or
crochet
ed
610520
610990
610910
610510
610323
611120
611030
611020
610590
62
Art of
apparel
&
clothing
621490
Of polyesters
Containing 85
% or more by
weight
Acrylic or
modacrylic
Acrylic or
modacrylic
Of man-made
fibres
Of other
textile
materials
Of cotton
Of cotton
Suits :-- Of
synthetic
fibres
Of cotton
Of man-made
fibres
Of cotton
Of other
textile
materials
Of other
textile
materials
304.65
536.00
733.30
1229.97
1242.66
1239.27
1242.84
1002.46
1609.25
1303.83
0.377
0.305
0.516
0.249
Low
Low
335.64
540.83
809.26
295.43
861.44
0.202
0.266
Low
119.47
1808.01
624.72
38.36
701.21
0.164
0.556
Low
2608.56
6743.16
11517.19
5313.66
6904.51
1.616
0.276
Low
781.01
1666.00
2728.84
3536.24
5849.40
1.369
0.654
Low
3840.22
1105.06
334.92
4564.37
1076.04
315.45
6084.74
1350.88
370.28
5716.55
1880.88
928.13
4375.69
1805.76
1285.75
1.024
0.423
0.301
0.033
0.131
0.400
Low
Low
Low
365.43
282.46
621.04
253.53
589.01
427.05
759.88
795.39
1070.07
928.15
0.250
0.217
0.308
0.346
Low
Low
828.10
388.20
1203.48
1158.86
1081.82
1523.62
722.58
1159.05
858.56
796.29
0.201
0.186
0.009
0.197
Low
Low
205.49
376.92
673.28
1016.38
1438.79
0.337
0.627
Low
63
access,
not
knitted
or
crochet
ed
Other
made
up
textile
articles
630260
630492
630190
630299
73
Articles
of iron
or steel
730840
731815
731816
731819
730890
730791
732690
Toilet linen
and kitchen
linen
Not knitted or
crocheted
Other
blankets and
travelling
rugs
Of other
textile
material
Equipment
for scaffolding
Threaded
articles
Threaded
articles :Nuts
Threaded
articles :Other
Other
Flanges
Other
1131.57
6153.73
6771.58
8235.88
16204.66
3.792
0.945
High
1655.58
1476.88
3040.32
3790.44
1430.11
0.335
-0.036
Low
99.21
173.12
775.70
779.10
1103.64
0.258
0.826
High
505.43
1149.11
1226.16
1056.07
908.49
0.213
0.158
Low
1517.77
2298.74
2648.64
3996.80
4773.94
1.117
0.332
Low
860.89
1784.14
3311.49
3798.41
4277.74
1.001
0.493
Low
207.33
439.30
755.28
1678.93
3514.97
0.823
1.029
High
350.79
809.96
1587.24
2556.08
2837.29
0.664
0.686
Low
865.54
287.35
767.30
1512.39
898.66
1039.25
1882.38
1778.05
1323.78
2568.54
2458.96
1533.49
2786.87
2110.79
1752.22
0.652
0.494
0.410
0.340
0.646
0.229
Low
Low
Low
731822
82
Tool,
implem
ent,
cutlery,
spoon
820411
820570
820320
820559
84
85
87
Nuclear
reactors
, boilers
Electric
al
machin
eryy
equipm
ent
parts
thereof
Vehicles
o/t
railw/tr
840890
847290
Non-threaded
articles
Handoperated
spanners and
wrenches
Vices, clamps
and the like
Pliers
(including
cutting pliers)
Other hand
tools
(including
glazier
Other engines
Other
111.10
201.16
470.00
814.58
1051.56
0.246
0.754
Low
1867.71
2793.98
4709.95
6483.65
7035.58
1.647
0.393
Low
276.41
416.97
1291.07
2261.09
2074.65
0.486
0.655
Low
241.73
293.21
437.06
654.46
860.64
0.201
0.374
Low
51.59
42.39
64.69
667.07
846.82
0.198
1.013
High
280.77
231.98
468.07
434.96
625.29
561.52
663.17
711.83
1484.51
869.68
0.347
0.204
0.516
0.391
Low
Low
850421
Liquid
dielectric
transformers
280.19
566.32
630.56
1159.76
913.12
0.214
0.344
Low
870899
Other parts
and
accessories
2145.65
4383.79
6155.64
6622.12
7750.00
1.814
0.379
Low
amw
rollstock
870190
871200
871499
870880
871491
871496
871494
95
Toys,
games
&
sports
requisit
es
950699
Other
Bicycles and
other cycles
Other
Suspension
shockabsorbers
Frames and
forks
Pedals and
crank-gear
Brakes,
including
coaster
Other
663.37
883.26
1546.20
1289.91
3100.29
1915.24
4591.27
1957.04
6843.09
2449.60
1.601
0.573
0.792
0.290
High
Low
1514.29
177.58
1953.06
658.03
1858.56
1041.47
1649.50
1340.00
1947.62
1764.95
0.456
0.413
0.065
0.776
Low
Low
497.17
942.60
1427.47
1573.43
1670.11
0.391
0.354
Low
354.02
551.91
824.74
1019.24
1286.44
0.301
0.381
Low
179.96
326.79
633.74
725.78
820.95
0.192
0.461
Low
280.06
380.78
477.75
648.01
721.40
0.169
0.267
Low
Average CAGR
0.790
Source: We Analysis on the basis of DGCI&S data for Punjab Exports
b. Once the top 80 percent of the exportable by Punjab to the rest of the world has been identified, the product wise export trends
(HS 6 digit)of these products by India to the world has been examined. The reference period for analysis is again taken as 2009-10
to 2013-14. Based on Punjab’s share in India’s exports, the products have been classified into two categories: one that exhibit an
increasing export trend (if share of Punjab’s exports in India’s total exports is increasing in at least 3 years) and those that exhibit
a decreasing trend (if share of exports is decreasing in at least 2 years). The results are exhibited in Table 3.3. The analysis
suggests that most products classified under cotton, man-made staple fibres, art of apparel & clothing access, knitted or
crocheted and other made up textile articles, plastics, rubber and pharmaceutical products have exhibited an increasing export
trend during the reference period under consideration.
Table 3.3: Punjab's Share in India's Exports
Product Product
Code
Description
(2
Digit)
Product Code (6
Digit)
Product Description
Punjab's Share in India's Total Exports
2009-10 2010-11 2011-12 2012-13 2013-14
10
Cereals
100630
Semi-milled or
wholly milled rice
17.96
19.5
14.57
13.31
13.43
Increasing
/Decreasing
Share in India's
Exports
↓
22
Beverages,
spirits and
vinegar
220710
Undenatured ethyl
alcohol
10.59
6.79
6.35
9.52
4.54
↓
23
Residues
230400
Oil-cake and other
solid residues
0.56
0.16
0.04
0.54
0.43
↓
290611
Cyclanic, cyclenic or
cycloterpenic
Penicillins and their
derivatives
Erythromycin and its
4.66
5.72
5.83
10.07
6.49
↑
8.56
12.7
13.66
17.44
19.55
↑
29.08
19.41
19.65
18.31
7.86
↓
&waste from the
food industry
29
Organic
chemicals
294110
294150
derivatives
294190
Other
9.02
7.13
9.1
8.23
11.92
↑
294200
Other organic
1.74
1.34
4.84
1.96
1.65
↓
compounds
30
39
40
Pharmaceutical
products
Plastics and
articles
Rubber and
300390
Other
0.06
1.98
7.7
8.89
3.84
↑
392020
Of polymers of
propylene
Of a kind used on
2.42
8.17
13.66
13.06
10.75
↑
12.86
42.77
38.63
44.66
44.67
↑
401150
articles
bicycles
401199
Other
2.03
2.28
2.88
2.05
2.3
↑
401320
Of a kind used on
36.37
58.85
50.93
52.55
47.49
↑
bicycles
52
Cotton
520299
Other
0.94
5.4
9.14
5.3
10.29
↑
520511
Single yarn of
uncombed fibres
Single yarn of
uncombed fibres
Single yarn of
uncombed fibres
Single yarn of
uncombed fibres
Single yarn of
combed fibres
2.01
4.32
3.37
5.25
4.71
↑
9.36
14.54
18.66
18.79
12.76
↑
19.4
25.17
36.35
29.63
25.01
↑
3.78
7.92
24.97
7.04
4.25
↑
10.57
4.82
4.34
10.92
17.39
↑
520512
520513
520514
520521
520523
520524
520532
520544
520932
Single yarn of
combed fibres
Single yarn of
combed fibres
Multiple (folded) or
cabled yarn
Multiple (folded) or
cabled yarn
Dyed ( 3-thread or 4-
23.91
20.4
23.96
26.36
23.81
↑
5.77
8.37
13.62
16.77
15.69
↑
5.03
13.83
9.33
25.27
19.71
↑
5.25
26.19
17.8
18.63
17.51
↑
0.41
1.07
4.07
6.48
9.2
↑
thread twill)
55
Man-made
staple fibres
61
Art of apparel &
clothing access,
knitted or
crocheted
550130
550320
Acrylic or modacrylic
Of polyesters
62.65
2.57
56.98
4.69
35.36
5.72
4.79
5.81
66.23
5.49
↑
↑
550330
Acrylic or modacrylic
64.16
64.45
88.86
34.4
43.44
↓
550932
Containing 85 % or
more by weight
50.2
51.07
52.73
55.6
60.08
↑
550953
Other yarn, of
polyester staple fibre
Suits :-- Of synthetic
4.51
12.94
12.15
15
11
↑
22.04
14.59
23.6
28.41
21.96
↓
610323
fibres
610510
Of cotton
3.57
4.39
4.37
7.53
5.71
↑
610520
Of man-made fibres
56.2
67.44
50.76
32.51
32.27
↓
610590
Of other textile
19.21
36.87
27.46
20.46
13.41
↓
materials
610910
Of cotton
2.91
4.44
4.65
4.24
2.62
↓
610990
Of other textile
5.93
10.59
12.52
9.72
9.04
↑
materials
62
Art of apparel
& clothing
611020
Of cotton
7.21
13.4
9.86
9.49
7.68
↓
611030
611120
Of man-made fibres
Of cotton
25.23
1.39
24.25
2.63
28.6
1.77
32.51
2.07
31.64
2.2
↑
↑
621490
Of other textile
materials
1.02
1.76
2.39
3.06
2.79
↑
630190
Other blankets and
travelling rugs
Toilet linen and
kitchen linen, of
Of other textile
material
Not knitted or
6.26
9.1
19.6
17.92
20.68
↑
13.93
23.05
12.66
14.93
20.61
↑
41.32
40.94
36.52
32.89
23.71
↓
3.27
3.43
7.28
7.02
2.35
↑
access, not
knitted or
crocheted
63
Other made up
textile articles
630260
630299
630492
crocheted
73
Articles of iron
730791
Flanges
6.79
15.37
14.39
13.87
11.76
↓
730840
Equipment for
38.06
48.93
45.9
43.59
43.42
↓
or steel
scaffolding
730890
Other
5.8
9.29
9.14
7.97
8.15
↓
731815
Threaded articles:
screws
Threaded articles
:Nuts
Threaded articles
14.21
22.91
24.33
18.25
15.02
↓
17.48
24.2
20.54
17.24
13.97
↓
21.1
28.45
31.73
33.42
34.97
↑
731816
731819
:Other
82
Tool,
731822
732690
Non-threaded articles
Other
10.33
5.26
15.77
5.44
20.29
3.79
29.08
3.83
26.5
3.71
↑
↓
820320
Pliers (including
cutting pliers)
24.13
24.71
25.89
34.58
36.11
↑
820411
Hand-operated
spanners and
wrenches
Other hand tools
(including glazier
Vices, clamps and the
46.26
42.17
41.57
51.28
47.81
↑
3.77
1.99
1.85
16.01
17.9
↑
18.08
19.82
38.73
43.29
38.5
↓
3.3
4.22
2.61
2.15
6.2
↑
implement,
cutlery, spoon
820559
820570
like
84
Nuclearreactors,
840890
Other engines
85
87
boilers
847290
Other
5.32
13.41
12.81
16.12
22.22
↑
Electrical
machinery
equipment
parts thereof
Vehicles o/t
850421
Liquid dielectric
4.83
10.21
7.43
13
11.53
↑
railw/tramw rollstock
transformers
870190
Other
3.51
4.29
5.77
7.15
9.01
↑
870880
Suspension shockabsorbers
Other parts and
accessories
Bicycles and other
15.73
27.95
23.64
21.42
19.21
↓
3.87
5.17
4.55
3.2
3.36
↓
49.05
54.6
52.91
53.01
51.79
↑
870899
871200
cycles
871491
Frames and forks
53.63
66.49
60.96
47.91
40.45
↓
871494
Brakes, including
38.4
40.75
33.69
44.47
51.51
↑
coaster
95
Toys, games &
sports requisites
871496
871499
Pedals and crank-gear
Other
59.79
38.73
74.72
43.09
68.97
30.24
67.72
23.68
62.98
15.23
↓
↓
950699
Other
13.21
11.38
9.54
10.87
8.76
↓
Source: We Analysis on the basis of DGCI&S data for Punjab Exports
The analysis in Tables 3.2 and 3.3 provide an assessment of the supply capabilities of Punjab in terms of its exportable products.
3.2 UNDERSTANDING DEMAND SIDE CAPACITIES OF EXPORTABLE PRODUCTS: For the demand-side analysis, the world import demand
for the top 80% exports from Punjab has been examined. The world import values (in million USD) are reported in Table 3.4. The
reference period for analysis is again taken as 2008-09 to 2013-14. Based on share of world import demand, the products have been
classified into two categories: one that exhibit an increasing world import share (if share of world import demand is increasing in at
least 3 years) and those that exhibit a decreasing import share (if share of world import demand is decreasing in at least 2 years). The
results are exhibited in Table 3.5. The analysis suggests that out of a total of 67 tariff lines at 6-digit HS code, for 31 tariff lines, the share
of world import demand has exhibited an increasing trend. Interestingly for Punjab, products classified under cotton, man-made staple
fibres, art of apparel & clothing access, knitted or crocheted and other made up textile articles, rubber and articles of iron and steel have
exhibited an increasing world import demand trend during the reference period under consideration. For the rest of the analysis, the
focus has been on the tariff lines that exhibit rising world import demand.
Table 3.4: World Import Demand for the Top 80% Exports of Punjab (Values Mn. USD)
Product Code (2
Digit)
10
Product
Description
Cereals
Product Product
Code
Description
100630
Semi-milled
or wholly
World Imports
2008
14648.09
2009
2010
11254.23 12939.36
2011
15029.42
2012
2013
14025.07 11923.32
milled rice
22
23
Beverages,
spirits and
vinegar
Residues
&waste from the
food industry
220710
Undenatured
ethyl alcohol
5283.83
3985.67
4055.49
6206.05
6527.20
6335.29
230400
Oil-cake and
other solid
residues
24521.35
21903.82 23753.51
26060.92
27785.11 29370.55
29
Organic
290611
chemicals
294110
294150
Cyclanic,
cyclenic or
cycloterpenic
Penicillins
and their
derivatives
Erythromycin
416.44
349.10
468.72
810.48
1029.28
802.59
2059.61
1769.19
1857.27
1978.52
1856.63
1946.87
1103.32
962.62
944.71
1109.05
982.30
704.81
and its
derivatives
294190
Other
8231.18
9293.76
9969.64
13171.77
9713.65
9178.84
294200
Other organic
1289.33
1321.05
1666.65
1788.72
1921.61
1855.40
compounds
30
39
40
Pharmaceutical
products
Plastics and
articles
300390
Other
17355.28
14753.35 13285.54
8334.75
8485.76
6828.98
392020
Of polymers
of propylene
8976.98
7454.19
8705.69
10443.29
9676.14
9602.79
Rubber and
401150
Of a kind used
600.26
525.41
650.79
753.91
736.76
721.55
articles
on bicycles
401199
Other
4629.51
3415.97
4446.51
6479.86
8036.90
7575.24
401320
Of a kind used
278.82
238.98
271.64
318.90
330.06
305.77
319.43
250.87
350.00
598.89
503.50
493.63
on bicycles
52
Cotton
520299
Other
520511
520512
520513
520514
520521
520523
520524
520532
520544
Single yarn of
uncombed
fibres
Single yarn of
uncombed
fibres
Single yarn of
uncombed
fibres
Single yarn of
uncombed
fibres
Single yarn of
combed
fibres
Single yarn of
combed
fibres
Single yarn of
combed
fibres
Multiple
(folded) or
cabled yarn
Multiple
(folded) or
cabled yarn
682.15
643.02
967.75
1132.26
764.06
574.83
1551.33
1537.12
2264.34
2749.51
3105.59
3925.12
330.40
259.69
467.05
522.44
451.78
525.48
194.07
180.34
245.26
397.32
610.60
1061.50
442.03
335.10
623.76
750.22
143.49
122.77
930.37
804.69
1356.93
1315.47
1097.17
1161.67
829.45
777.97
1137.62
1109.16
1101.72
1014.81
336.86
280.04
376.61
378.60
290.38
277.39
364.46
286.74
381.12
353.06
267.00
119.83
520932
Dyed ( 3thread or 4-
1056.58
748.59
838.09
1018.69
851.46
602.78
1010.82
803.28
1155.19
1207.87
953.42
857.43
thread twill)
55
Man-made
550130
staple fibres
modacrylic
550320
Of polyesters
3804.18
2988.62
4011.30
5395.04
4549.83
4643.60
550330
Acrylic or
modacrylic
877.03
652.62
1184.94
1380.17
1003.25
1123.81
550932
Containing
85 % or more
by weight
Other yarn, of
polyester
staple fibre
Suits :-- Of
771.97
595.88
719.61
823.78
504.41
412.08
532.67
427.69
637.68
842.86
683.07
709.53
100.82
88.04
115.15
148.40
107.90
105.21
550953
61
Art of apparel &
clothing access,
knitted or
crocheted
Acrylic or
610323
synthetic fibres
610510
Of cotton
5902.22
5073.74
5592.20
6537.04
5746.19
5048.88
610520
Of man-made
fibres
Of other
1155.36
1013.88
1184.47
1575.73
1745.43
1644.37
230.22
155.00
182.36
250.13
213.20
199.33
610590
textile
materials
610910
Of cotton
24503.79
21402.60 23273.55
25604.32
22505.17 20868.67
610990
Of other
6648.76
6279.88
7595.36
9354.81
9917.40
10069.53
textile
materials
611020
Of cotton
25821.39
23174.31 23820.74
25071.57
21937.55 20668.34
611030
Of man-made
16308.62
15484.42 16688.66
19959.44
19580.95 18828.60
fibres
62
Art of apparel
& clothing
611120
Of cotton
5593.05
5158.84
5524.68
6412.29
5512.37
5060.58
621490
Of other
textile
materials
369.63
452.47
570.94
679.43
598.71
544.28
630190
Other
blankets and
travelling
rugs
Toilet linen
and kitchen
linen, of
Of other
textile
material
Not knitted or
245.43
196.64
266.05
306.66
322.01
276.58
4939.57
4218.04
4840.02
5374.44
5019.66
4949.42
106.63
89.98
104.72
113.29
95.63
97.10
692.01
598.38
685.75
669.58
571.10
585.57
access, not
knitted or
crocheted
63
Other made up
textile articles
630260
630299
630492
crocheted
73
Articles of iron
730791
Flanges
2817.38
1744.44
1779.68
2313.04
2365.62
2389.12
Equipment
5186.70
3393.10
3258.77
3989.55
3923.50
4119.57
or steel
730840
for scaffolding
730890
Other
28583.52
22359.11 22333.34
25657.28
26520.85 27892.24
731815
Threaded
articles:
screws
Threaded
articles :Nuts
15530.62
10994.40 14359.15
17215.80
16626.30 16643.03
4809.67
3322.73
4546.90
5595.15
5611.96
5676.20
731819
Threaded
articles :Other
2033.72
1493.97
1859.26
2241.96
2171.21
2133.33
731822
Nonthreaded
2251.27
1451.76
1929.03
2255.17
2231.52
2292.58
26629.31 31478.42
36442.86
36942.26 38511.52
731816
articles
82
Tool,
732690
Other
35762.82
820320
Pliers
(including
cutting pliers)
1192.38
854.30
1065.67
1227.47
1190.45
1169.42
820411
Handoperated
spanners and
wrenches
1227.08
822.16
1090.23
1296.21
1261.31
1219.07
implement,
cutlery, spoon
820559
820570
Other hand
tools
(including
glazier
Vices, clamps
3087.82
2305.86
2593.89
2828.50
2748.29
2741.27
607.26
430.76
546.47
643.26
703.57
705.47
Other engines
Other
11621.63
5161.59
7061.82
4138.55
10905.87
4481.36
14878.38
4785.91
12591.60 11071.60
6662.85 5787.13
Liquid
1514.91
1386.56
1418.51
1516.86
1504.43
and the like
84
Nuclear
reactors, boilers
85
87
Electrical
machinery
equipment
parts thereof
Vehicles o/t
840890
847290
850421
1532.74
dielectric
transformers
870190
Other
20583.49
14174.61 15040.36
18932.24
20075.80 20576.02
870880
Suspension
shockabsorbers
Other parts
and
accessories
Bicycles and
other cycles
Frames and
forks
10394.10
8138.12
11640.18
14173.53
14801.74 15464.86
89341.46
63362.37 78656.50
90278.30
86716.09 90733.25
6964.68
6362.71
7254.75
8140.04
8153.67
7631.39
1770.99
1496.91
1809.13
1996.59
2180.57
1943.55
railw/tramw rollstock
870899
871200
871491
871494
Brakes,
including
643.91
571.98
752.14
832.89
916.21
856.91
560.98
578.79
737.75
826.53
896.25
852.80
coaster
871496
Pedals and
crank-gear
95
Toys, games &
sports requisites
871499
Other
3834.62
3001.99
3562.38
4071.21
4405.82
3905.01
950699
Other
5088.80
4641.25
4954.55
5684.72
5588.04
5366.01
Source: WITS Database/ UN Comtrade 2014
Table 3.5: World Import Demand for the Top 80% Exports of Punjab (% of World's Total Import)
Product
Code (2
Digit)
10
Product
Description
Cereals
Product Product
Code
Description
100630
Semi-milled
or wholly
% Share of World Imports
2008
2009
2010
2011
2012
2013
0.0918
0.0919
0.0868
0.0845
0.0805
0.0714
Rising
/Falling
World Share
↓
0.0331
0.0326
0.0272
0.0349
0.0375
0.0380
↑
milled rice
22
Beverages,
spirits and
vinegar
220710
Undenatured
ethyl alcohol
23
Residues
230400
Oil-cake and
other solid
residues
0.1537
0.1789
0.1594
0.1465
0.1596
0.1760
↑
290611
Cyclanic,
cyclenic or
cycloterpenic
Penicillins
and their
derivatives
Erythromycin
0.0026
0.0029
0.0031
0.0046
0.0059
0.0048
↑
0.0129
0.0145
0.0125
0.0111
0.0107
0.0117
↓
0.0069
0.0079
0.0063
0.0062
0.0056
0.0042
↓
&waste from the
food industry
29
Organic
chemicals
294110
294150
and its
derivatives
294190
Other
0.0516
0.0759
0.0669
0.0740
0.0558
0.0550
↓
294200
Other organic
0.0081
0.0108
0.0112
0.0101
0.0110
0.0111
↑
compounds
30
Pharmaceutical
products
300390
Other
0.1088
0.1205
0.0891
0.0468
0.0487
0.0409
↓
39
Plastics and
articles
392020
Of polymers
of propylene
0.0563
0.0609
0.0584
0.0587
0.0556
0.0575
↓
40
Rubber and
401150
Of a kind used
0.0038
0.0043
0.0044
0.0042
0.0042
0.0043
↑
articles
on bicycles
401199
Other
0.0290
0.0279
0.0298
0.0364
0.0462
0.0454
↑
401320
Of a kind used
0.0017
0.0020
0.0018
0.0018
0.0019
0.0018
↓
on bicycles
52
Cotton
520299
Other
0.0020
0.0020
0.0023
0.0034
0.0029
0.0030
↑
520511
Single yarn of
uncombed
fibres
0.0043
0.0053
0.0065
0.0064
0.0044
0.0034
↓
520512
Single yarn of
uncombed
fibres
0.0097
0.0126
0.0152
0.0155
0.0178
0.0235
↑
520513
Single yarn of
uncombed
fibres
0.0021
0.0021
0.0031
0.0029
0.0026
0.0031
↑
520514
Single yarn of
uncombed
fibres
Single yarn of
combed
fibres
0.0012
0.0015
0.0016
0.0022
0.0035
0.0064
↑
0.0028
0.0027
0.0042
0.0042
0.0008
0.0007
↓
520521
520523
520524
520532
520544
520932
Single yarn of
combed
fibres
Single yarn of
combed
fibres
Multiple
(folded) or
cabled yarn
Multiple
(folded) or
cabled yarn
0.0058
0.0066
0.0091
0.0074
0.0063
0.0070
↑
0.0052
0.0064
0.0076
0.0062
0.0063
0.0061
↓
0.0021
0.0023
0.0025
0.0021
0.0017
0.0017
↓
0.0023
0.0023
0.0026
0.0020
0.0015
0.0007
↓
Dyed ( 3thread or 4-
0.0066
0.0061
0.0056
0.0057
0.0049
0.0036
↓
0.0063
0.0066
0.0077
0.0068
0.0055
0.0051
↓
thread twill)
55
Man-made
550130
staple fibres
Acrylic or
modacrylic
550320
Of polyesters
0.0238
0.0244
0.0269
0.0303
0.0261
0.0278
↑
550330
Acrylic or
modacrylic
0.0055
0.0053
0.0079
0.0078
0.0058
0.0067
↑
550932
Containing
85 % or more
by weight
0.0048
0.0049
0.0048
0.0046
0.0029
0.0025
↓
550953
61
Art of apparel &
clothing access,
knitted or
crocheted
610323
Other yarn, of 0.0033
polyester
staple fibre
Suits :-- Of
0.000632
0.0035
0.000719
0.0043
0.0047
0.0039
0.0043
0.000772 0.000834 0.000620 0.000630
↑
↑
synthetic fibres
610510
Of cotton
0.0370
0.0414
0.0375
0.0367
0.0330
0.0303
↓
610520
Of man-made
fibres
0.0072
0.0083
0.0079
0.0089
0.0100
0.0099
↑
610590
Of other
0.0014
0.0013
0.0012
0.0014
0.0012
0.0012
↓
textile
materials
610910
Of cotton
0.1536
0.1748
0.1561
0.1439
0.1292
0.1251
↑
610990
Of other
0.0417
0.0513
0.0510
0.0526
0.0570
0.0603
↑
textile
materials
611020
Of cotton
0.1619
0.1893
0.1598
0.1409
0.1260
0.1239
↓
611030
Of man-made
0.1022
0.1265
0.1120
0.1122
0.1125
0.1128
↑
fibres
62
Art of apparel
& clothing
611120
Of cotton
0.0351
0.0421
0.0371
0.0360
0.0317
0.0303
↓
621490
Of other
textile
materials
0.0023
0.0037
0.0038
0.0038
0.0034
0.0033
↑
630190
Other
blankets and
travelling
rugs
Toilet linen
and kitchen
linen, of
Of other
textile
material
Not knitted or
0.0015
0.0016
0.0018
0.0017
0.0018
0.0017
↑
0.0310
0.0345
0.0325
0.0302
0.0288
0.0297
↓
0.0007
0.0007
0.0007
0.0006
0.0005
0.0006
↓
0.0043
0.0049
0.0046
0.0038
0.0033
0.0035
↓
access, not
knitted or
crocheted
63
Other made up
textile articles
630260
630299
630492
crocheted
73
Articles of iron
730791
Flanges
0.0177
0.0143
0.0119
0.0130
0.0136
0.0143
↑
730840
Equipment
0.0325
0.0277
0.0219
0.0224
0.0225
0.0247
↓
or steel
for scaffolding
730890
Other
0.1792
0.1826
0.1498
0.1442
0.1523
0.1671
↓
731815
Threaded
articles:
screws
Threaded
articles :Nuts
0.0974
0.0898
0.0963
0.0968
0.0955
0.0997
↑
0.0301
0.0271
0.0305
0.0314
0.0322
0.0340
↑
731819
Threaded
articles :Other
0.0127
0.0122
0.0125
0.0126
0.0125
0.0128
↑
731822
Nonthreaded
0.0141
0.0119
0.0129
0.0127
0.0128
0.0137
↓
731816
articles
82
Tool,
732690
Other
0.2242
0.2175
0.2112
0.2048
0.2122
0.2308
↓
820320
Pliers
(including
cutting pliers)
0.0075
0.0070
0.0071
0.0069
0.0068
0.0070
↓
820411
Handoperated
spanners and
wrenches
0.0077
0.0067
0.0073
0.0073
0.0072
0.0073
↑
implement,
cutlery, spoon
820559
820570
Other hand
tools
(including
glazier
Vices, clamps
0.0194
0.0188
0.0174
0.0159
0.0158
0.0164
↓
0.0038
0.0035
0.0037
0.0036
0.0040
0.0042
↑
and the like
84
Nuclear
reactors, boilers
85
87
Electrical
machinery
equipment
parts thereof
Vehicles o/t
840890
847290
Other engines
Other
0.0728
0.0324
0.0577
0.0338
0.0732
0.0301
0.0836
0.0269
0.0723
0.0383
0.0663
0.0347
↓
↑
850421
Liquid
0.0095
0.0113
0.0095
0.0085
0.0086
0.0092
↓
dielectric
transformers
870190
Other
0.1290
0.1158
0.1009
0.1064
0.1153
0.1233
↓
870880
Suspension
shockabsorbers
Other parts
and
accessories
Bicycles and
other cycles
0.0652
0.0665
0.0781
0.0797
0.0850
0.0927
↑
0.5600
0.5176
0.5277
0.5074
0.4980
0.5437
↓
0.0437
0.0520
0.0487
0.0458
0.0468
0.0457
↓
railw/tramw rollstock
870899
871200
871491
Frames and
forks
0.0111
0.0122
0.0121
0.0112
0.0125
0.0116
↓
871494
Brakes,
including
0.0040
0.0047
0.0050
0.0047
0.0053
0.0051
↑
0.0035
0.0047
0.0049
0.0046
0.0051
0.0051
↑
coaster
871496
Pedals and
crank-gear
95
Toys, games &
sports requisites
871499
Other
0.0240
0.0245
0.0239
0.0229
0.0253
0.0234
↓
950699
Other
0.0319
0.0379
0.0332
0.0320
0.0321
0.0322
↓
Source: Author(s) analysis based on WITS Data, 2014
For the 31 tariff lines for Punjab for which the import demand from the world exhibits an increasing trend, India's share in world's
imports, Punjab's exports’ share in India’s total exports and Punjab's share in world's imports have been reported in Table 3.6. For the
16 tariff lines, for which India’s share in world import demand is rising, Punjab’s share in India’s exports is also rising for all products
except for undenatured ethyl alcohol (HS220710). These products constitute the top priority (Priority 1) export products from Punjab.
For the remaining 15 tariff lines, for which India’s share in world import demand is falling, Punjab’s share in India’s exports is however
rising for all products except for rubber articles of a kind used for bicycles (HS401150). These products constitute the Priority 2 export
category products from Punjab. The above analyses are reported in Table 3.7.
Table 3.6: Punjab and India's Share in Rising World Imports
India's Share in World's Imports
Product
Code
220710
230400
290611
Product
Description
Undenatured
ethyl alcohol
Oil-cake and
other solid
residues
Cyclanic,
cyclenic or
cycloterpenic
Share of Punjab's Exports in India's Total Exports
Punjab's Share in World's Imports
2009
2010
2011
2012
2013
2009
2010
2011
2012
2013
2009
2010
2011
2012
2013
0.249
0.746
0.559
0.863
1.250
10.587
6.786
6.348
9.521
4.542
0.022
0.050
0.079
0.193
0.128
5.868
5.708
8.214
5.854
6.249
0.564
0.162
0.040
0.543
0.431
0.035
0.011
0.003
0.041
0.042
58.197
57.076
60.724
61.660
56.419
4.660
5.725
5.828
10.069
6.494
1.263
1.902
2.116
3.668
2.610
8.328
8.555
9.457
10.198
9.705
1.742
1.335
4.836
1.963
1.650
2.882
1.776
6.905
2.626
1.433
6.901
5.678
5.267
5.428
5.193
12.860
42.770
38.626
44.659
44.675
1.054
2.800
3.379
3.782
3.579
401150
Other organic
compounds
Of a kind
used on
bicycles
401199
Other
5.641
4.898
5.258
4.637
4.172
2.032
2.281
2.876
2.050
2.297
0.104
0.177
0.249
0.184
0.180
520299
Other
Single yarn of
uncombed
fibres
Single yarn of
uncombed
fibres
Single yarn of
uncombed
fibres
Single yarn of
combed
fibres
6.095
12.127
10.084
15.972
17.359
0.945
5.400
9.144
5.301
10.292
0.044
0.566
0.729
0.617
1.790
5.072
10.173
10.277
11.502
18.148
9.361
14.538
18.656
18.788
12.764
0.260
1.041
1.315
1.782
2.167
14.198
16.257
16.318
21.243
23.292
19.404
25.168
36.349
29.626
25.006
2.052
5.295
7.597
7.006
7.914
7.375
11.647
17.213
37.950
51.078
3.782
7.918
24.974
7.044
4.250
0.200
0.639
2.989
2.254
2.367
47.485
55.020
44.756
49.911
52.774
23.911
20.403
23.965
26.364
23.810
8.971
13.199
15.216
20.373
22.099
294200
520512
520513
520514
520523
550320
610323
Of polyesters
Acrylic or
modacrylic
Other yarn,
of polyester
staple fibre
Suits :-- Of
synthetic
fibres
610520
Of man-made
fibres
550330
550953
610910
610990
611030
621490
630190
730791
731815
731816
731819
Of cotton
Of other
textile
materials
Of man-made
fibres
Of other
textile
materials
Other
blankets and
travelling
rugs
Flanges
Threaded
articles:
screws
Threaded
articles :Nuts
Threaded
articles
:Other
6.819
6.428
5.781
5.511
6.398
2.571
4.690
5.725
5.808
5.487
0.137
0.262
0.313
0.334
0.389
0.601
0.742
1.371
0.646
0.434
64.163
64.452
88.857
34.400
43.441
0.689
0.654
0.796
0.360
0.861
12.858
16.596
23.511
25.550
21.197
4.514
12.943
12.155
15.003
10.996
0.521
2.172
3.219
4.094
2.989
0.501
0.780
0.905
0.433
0.368
22.037
14.588
23.602
28.414
21.957
5.100
3.928
3.388
10.517
13.722
1.056
0.828
1.005
0.947
1.108
56.195
67.437
50.762
32.511
32.268
3.449
8.162
9.925
3.722
4.715
6.660
6.523
6.695
5.732
5.876
2.911
4.444
4.648
4.238
2.622
0.241
0.281
0.323
0.311
0.235
1.567
1.661
1.466
1.341
1.489
5.925
10.595
12.522
9.718
9.038
0.167
0.314
0.396
0.436
0.652
0.542
0.496
0.398
0.459
0.466
25.233
24.249
28.600
32.507
31.637
0.024
0.022
0.029
0.050
0.055
33.488
31.836
33.316
31.686
30.395
1.022
1.763
2.385
3.056
2.786
0.609
0.946
1.346
2.076
2.968
9.094
4.543
3.024
2.420
2.180
6.264
9.095
19.602
17.922
20.679
0.676
0.933
3.435
2.958
4.480
6.592
5.693
6.919
8.734
7.759
6.786
15.373
14.394
13.874
11.760
0.221
0.724
1.044
1.271
0.992
1.725
1.679
2.128
1.935
1.827
14.215
22.911
24.331
18.253
15.018
0.105
0.178
0.261
0.279
0.289
1.230
1.104
1.110
1.223
1.172
17.485
24.197
20.536
17.239
13.972
0.084
0.139
0.183
0.366
0.695
1.031
1.256
1.338
1.488
1.469
21.100
28.451
31.733
33.421
34.973
0.315
0.625
0.961
1.439
1.493
820411
Handoperated
spanners and
wrenches
8.482
8.480
9.313
9.357
8.826
46.255
42.168
41.566
51.279
47.805
3.046
3.674
4.934
6.285
6.480
820570
Vices, clamps
and the like
3.261
3.512
3.601
3.176
2.932
18.081
19.820
38.728
43.293
38.497
0.860
1.094
2.726
3.929
3.302
1.453
1.144
1.187
0.827
0.671
5.319
13.407
12.807
16.121
22.219
0.075
0.139
0.159
0.131
0.169
0.573
0.588
0.723
0.868
0.928
15.727
27.948
23.639
21.419
19.211
0.029
0.081
0.100
0.111
0.128
0.828
0.826
0.622
0.569
0.488
38.401
40.748
33.685
44.465
51.511
0.422
0.623
1.033
0.969
1.076
1.751
1.204
1.166
0.791
0.845
59.794
74.719
68.971
67.718
62.982
0.820
1.073
1.355
1.390
1.694
847290
871494
Other
Suspension
shockabsorbers
Brakes,
including
coaster
871496
Pedals and
crank-gear
870880
Source: DGCI&S, Kolkata, WITS Database & UN Comtrade
Table 3.7: India's Share and Punjab's Position in Rising World Imports
Product Code
220710
230400
290611
Product Description
Undenatured ethyl
alcohol
Oil-cake and other solid
residues
Cyclanic, cyclenic or
India's Rising Share
in World's Imports
Product
Product Description
Code
India's Falling Share in
World's Imports
Increasing/Decreasing
Increasing/ Decreasing
Share of Punjab in
India's Exports
Share of Punjab in India's
Exports
↓
401150
Of a kind used on bicycles
↓
↑
401199
Other
↑
↑
550320
Of polyesters
↑
cycloterpenic
294200
520299
520512
520513
520514
520523
Other organic compounds
Other
Single yarn of
uncombed fibres
Single yarn of
uncombed fibres
Single yarn of
uncombed fibres
Single yarn of combed
↑
↑
↑
610323
610910
610990
Suits :-- Of synthetic fibres
Of cotton
Of other textile materials
↑
↑
↑
↑
611030
Of man-made fibres
↑
↑
621490
Of other textile materials
↑
↑
630190
Other blankets and
travelling rugs
Threaded articles :Nuts
↑
↑
↑
fibres
550330
Acrylic or modacrylic
↑
731816
550953
Other yarn, of polyester
↑
820411
Of man-made fibres
Flanges
Threaded articles:
screws
Threaded articles :Other
↑
↑
↑
820570
847290
871494
Hand-operated spanners
and wrenches
Vices, clamps and the like
Other
Brakes, including coaster
↑
871496
Pedals and crank-gear
Suspension shockabsorbers
↑
staple fibre
610520
730791
731815
731819
870880
Source: Author’s Analysis
↑
↑
↑
↑
↑
3.3 REVEALED COMPETITIVE ADVANTAGE (RCA) ANALYSIS OF PUNJAB’S THRUST PRODUCTS: Finally, competitiveness analysis of
Punjab’s major exportable (in rising world imports) has been carried out using Revealed Competitive Advantage (RCA). The process of
RCA which is vital econometric tool for assessing exportable products competitiveness has been explained in table 1.6. For this purpose,
the RCA of India for the Punjab’s identified products has been calculated. The reference period for this analysis is again 2009 to 2013. A
product will be defined as export competitive if the RCA ratio is found to be greater than 1 for 3 years or more during the reference
period. The results are reported in Table 3.8. Interestingly for Punjab all the 31 tariff lines are been found to be export competitive.
Table 3.8: Punjab's Revealed Competitive Advantage in Rising World Imports
Product
Product Description Product
Code (2 Digit)
Code (6 Digit)
Product
Description
RCA
2009
2010
2011
2012
2013
Competitive/NonCompetitive
22
Beverages, spirits
and vinegar
220710
Undenatured
ethyl alcohol
1.293
2.194
3.390
6.872
4.161
Competitive
23
Residues &waste
230400
Oil-cake and
other solid
residues
Cyclanic,
cyclenic or
2.394
0.621
0.157
1.550
1.382
Competitive
from the food
industry
29
Organic chemicals
290611
104.090
116.995 111.791 169.390
95.073
Competitive
44.029
Competitive
cycloterpenic
40
Rubber and articles
294200
Other organic
compounds
90.615
53.790
164.586
59.526
401150
Of a kind used
69.718
142.299 134.958 125.467 109.602 Competitive
on bicycles
40
401199
Other
7.009
8.963
11.123
7.897
7.006
Competitive
52
Cotton
520299
Other
3.317
33.666
40.359
32.450
77.955
Competitive
520512
Single yarn of
uncombed
fibres
Single yarn of
uncombed
fibres
Single yarn of
uncombed
fibres
Single yarn of
15.940
50.769
51.390
65.626
74.596
Competitive
105.748
230.372 251.550 206.200 230.871 Competitive
13.308
32.156
625.849
583.080 531.918 544.577 487.386 Competitive
520513
520514
520523
158.201 107.235
86.494
Competitive
combed fibres
55
Man-made staple
550320
Of polyesters
10.064
14.168
14.504
13.087
13.711
Competitive
550330
Acrylic or
modacrylic
50.126
49.629
48.587
16.441
35.975
Competitive
550953
Other yarn, of
polyester
staple fibre
Suits :-- Of
26.866
77.603
97.425
98.797
66.395
Competitive
33.978
24.542
20.958
43.899
50.925
Competitive
209.237
374.708 408.561 147.109 144.387 Competitive
15.552
13.986
fibres
61
Art of apparel &
clothing access,
knitted or crocheted
610323
synthetic fibres
610520
Of man-made
fibres
610910
Of cotton
13.797
13.148
8.003
Competitive
610990
63
73
9.941
13.818
14.785
14.307
16.723
Competitive
63.852
57.211
196.825 147.892 209.520 Competitive
Other made up
textile articles
630190
Articles of iron or
730791
Flanges
14.450
37.257
43.878
44.330
33.222
Competitive
731815
Threaded
articles:
screws
Threaded
articles :Nuts
Threaded
articles
:Other
Handoperated
7.854
9.770
11.947
11.180
10.207
Competitive
6.447
8.091
9.076
15.778
25.517
Competitive
21.833
32.035
41.380
50.950
47.030
Competitive
226.088
200.552 225.965 244.303 217.901 Competitive
steel
and travelling
rugs
731816
731819
82
Of other
textile
materials
Other blankets
Tool, implement,
cutlery, spoon
820411
spanners and
wrenches
84
Nuclear reactors,
boilers
847290
Other
4.904
7.000
6.962
5.289
5.381
Competitive
87
Vehicles o/t
870880
Suspension
shockabsorbers
Brakes,
1.970
4.272
4.589
4.455
4.533
Competitive
27.611
32.557
45.053
37.359
37.807
Competitive
railw/tramw rollstock
871494
including
871496
coaster
Pedals and
crank-gear
Source: Author’s Analysis Based on DGCI&S data for Punjab Exports
52.072
53.167
56.913
50.482
54.443
Competitive
CHAPTER 4:
IDENTIFICATION OF THRUST MARKETS FOR PUNJAB EXPORTERS
In the previous chapter, a detailed analysis has provided major lead for identification of ‘Thrust Products’ for exports from state of
Punjab. It is important to identify the key for imports for state of Punjab for these thrust products. The analysis is carried out at 6 digit
level of ITC (HS) codes as trade nomenclature among countries has been harmonized up to this level only. The analysis of major thrust
markets revolves around 7 phases which are important for any exporters to scan, appraise and assess the potential for exports for his
products in international markets. The first and foremost is the understanding of prevailing export regime to identify if products are not
allowed for exports (prohibited) by Government of India regulations or is under restricted category for exports or is under canalized
category or is notified under ‘minimum export price’ and ‘restricted on export quantity’. Our analysis of current ITC (HS) code second
schedule will guide exporters of Punjab whether to engage in this commodity for exports or not. Second important aspects is to analyze
whether the world demand for the identified products is expanding or not as it will help exporters to decide the future line of their
business to expand, diversify, divest and withdraw. Thirdly, it is important to understand whether such market is expanding quality
wise also, hence is sustainable for export operations in the long run. Fourth phase of the analysis is vital as it provides the list of
percentage-wise demand of Punjab thrust products in top 10 imports of the world, thus helping exporters to understand where the
export opportunities for their products lies in. Fifth phase explains the key competitors for the thrust products of Punjab exporters.
Sixth phase lists the level of tariff barriers that exporters of Punjab may face in these identified markets and seventh phase lists the nontariff barriers that exporters of Punjab may face for identified thrust products in identified thrust markets. Figure 4.1 as under depict
the different phases of analysis of identification of thrust markets for identified thrust products of Punjab.
Figure 4.1: Different Phases of Analysis for Identification of Thrust Markets for Identified Products of Punjab
Analysis of Export Policy
Regime for Thrust Product
of Punjab
Analysis of Tariff Barriers
Faced on Thrust Products
by Punjab Exporters
Analysis of World Import
Demand (Value Wise) for
Thrust Products of Punjab
Analysis of Key Competitors
for Thrust Products by
Punjab Exporters
Analysis of World Import
Demand (Quantity Wise)
for Thrust Products of
Punjab
Identification of Key
Imports Markets for Thrust
Products from Punjab
Assessing Price
Attractiveness of Identified
Products in Thrust Markets
4.1: Analysis of Export Policy Regime for Thrust Products of Punjab: Second Schedule of ITC (HS), 2012 (Export Policy) regulates the
exports of merchandize from India. DGFT, regulatory for foreign trade in India, has power to regulate the export trade regime for any
product exported from India. Broadly, there exist four categories of regulation however there exist other ways of regulation of exports. If
the goods are listed as “Free” in the Export Licensing Schedule may also be exported without an export licence as such but they are
subject to conditions laid out against the respective entry. The fulfilment of these conditions can be checked by authorized officers in the
course of export. The prohibited items are not permitted to be exported. An export licence is not granted to any exporter in the normal
course for goods in the prohibited category. The prohibited items are not permitted to be exported. An export licence will not be given in
the normal course for goods in the prohibited category. Export through STE(s) is permitted without an Export Licence through
designated STEs only as mentioned against an item and is subject to conditions in para 2.11 of Foreign Trade Policy 2009-14. An
analysis of Export Policy Schedule indicates that exports of identified thrust products such as Basmati Rice (Dehusked (Brown), semi
milled, milled both in either par-boiled or raw condition and Paddy (of Basmati Rice in husk) (HS code falling under tariff lines
10063010 10063090) is although allowed ‘free’ for trade but has several restrictions on the manner of export trade (refer Appendix
4.1). Similarly, tariff line (Derivatives, extracts and formulations) falling under sub-heading of HS code 300390 are subject to the
provisions of Wile Life (Protection) Act, 1972 and CITES (Appendix 4.2). Identified thrust products under sub-heading 5205 (all tariff
lines) are subject to condition as specified by DGFT which stipulates that the contracts for export of cotton yarn shall be registered with
the Directorate General of Foreign Trade prior to shipment. Clearance of cotton yarn consignments shall be given by Customs after
verifying that the contracts have been registered (Appendix 4.3). Identified thrust product of Vintage motor cars, parts and components
thereof manufactured prior to 1.1.1950 (HS Code 8708) are ‘restricted’ for exports and shall be subject to “Special License for Restricted
Exports” under procedure as prescribed under Foreign Trade Policy (Appendix 4.4). Further, an analysis of second schedule of Custom
Tariff Act 1975 (Export Tariff) indicates that none of the identified products attract export duty except basmati rice which attracted the
export duty at the rate of Rs. 12,000 per tons.
4.2 Analysis of World Import Demand (Value Wise) for Thrust Products of Punjab: In the previous chapter, the product wise export
trends (HS 6 digit) of the top 80 percent of the exportable by Punjab to the rest of the world has been identified. The world import
demand for these export products from Punjab has also been examined and the same has been reproduced again in Table 4.2. A careful
look at the Table suggests that products with HS codes 520512, 520513, 520514,290611 and 401199 have exhibited a high import
demand growth based on average compound annual growth rate (CAGR) cut-off of 0.2 during the 5-year reference period of 2009-2013.
Since HS codes 520512, 520513, 520514 and290611 have also been identified as Priority 1 export product from Punjab and HS 401199
as Priority 2 export product from Punjab (refer to Table 3.7 in the previous Chapter), Punjab has a strong case in terms of increasing its
exports for these products.
Product Code
(6 Digit)
100630
220710
230400
290611
294110
294150
294190
294200
300390
392020
401150
401199
401320
520299
520511
520512
520513
520514
520521
520523
520524
Table 4.2: Value Wise Import Demand for the Top 80% Exports of Punjab
Value of World Imports in Million USD
Product Description
2009-10 2010-11
2011-12
2012-13
2013-14
Semi-milled or wholly milled rice,
Undenatured ethyl alcohol
Oil-cake and other solid residues,
Cyclanic, cyclenic or cycloterpenic
Penicillins and their derivatives w
Erythromycin and its derivatives; s
Other
Other organic compounds.
Other
Of polymers of propylene
Of a kind used on bicycles
Other
Of a kind used on bicycles
Other
Single yarn, of uncombed fibres :-Single yarn, of uncombed fibres :-Single yarn, of uncombed fibres :-Single yarn, of uncombed fibres :-Single yarn, of combed fibres :-- M
Single yarn, of combed fibres :-- M
Single yarn, of combed fibres :-- M
11.219
3.986
21.903
0.349
1.769
0.963
9.294
1.321
14.757
7.455
0.525
3.416
0.239
0.251
0.643
1.537
0.260
0.180
0.335
0.805
0.778
12.914
4.056
23.754
0.469
1.857
0.945
9.970
1.667
13.287
8.706
0.651
4.447
0.272
0.350
0.968
2.264
0.467
0.245
0.624
1.357
1.138
15.062
6.207
26.064
0.811
1.987
1.110
13.184
1.789
8.347
10.459
0.757
6.489
0.320
0.599
1.136
2.777
0.532
0.397
0.751
1.329
1.117
14.150
6.535
28.452
1.049
1.883
0.989
9.745
1.935
8.638
9.735
0.741
8.058
0.334
0.505
0.766
3.131
0.461
0.611
0.144
1.124
1.111
12.615
6.190
31.065
0.842
2.100
0.726
9.486
1.923
8.056
10.032
0.741
7.766
0.317
0.519
0.774
4.075
0.556
1.114
0.140
1.290
1.431
CAGR of World
Demand (2009-2013)
0.030
0.116
0.091
0.246
0.044
-0.068
0.005
0.098
-0.140
0.077
0.090
0.228
0.073
0.199
0.048
0.276
0.210
0.576
-0.196
0.125
0.165
Table 4.2: Value Wise Import Demand for the Top 80% Exports of Punjab (contd.)
520532
520544
520932
550130
550320
550330
550932
550953
610323
610520
610590
610910
610990
611020
611030
611120
621490
630190
630260
630299
630492
730791
Multiple (folded%) or cabled yarn, o
Multiple (folded%) or cabled yarn, o
Dyed :-- 3-thread or 4-thread twill
Acrylic or modacrylic
Of polyesters
Acrylic or modacrylic
Containing 85 % or more by weight o
Other yarn, of polyester staple fib
Suits :-- Of synthetic fibres
Of man-made fibres
Of other textile materials
Of cotton
Of other textile materials
Of cotton
Of man-made fibres
Of cotton
Of other textile materials
Other blankets and travelling rugs
Toilet linen and kitchen linen, of
Other :-- Of other textile material
Not knitted or crocheted,
Other :-- Flanges
0.280
0.287
0.749
0.803
2.989
0.653
0.596
0.428
0.088
1.014
0.155
21.412
6.284
23.177
15.486
5.159
0.453
0.197
4.218
0.090
0.598
1.745
0.377
0.381
0.838
1.155
4.011
1.185
0.720
0.638
0.115
1.184
0.182
23.279
7.598
23.822
16.689
5.525
0.571
0.266
4.840
0.105
0.686
1.780
0.380
0.353
1.023
1.208
5.406
1.381
0.826
0.856
0.151
1.576
0.253
25.631
9.354
25.072
19.960
6.416
0.680
0.309
5.380
0.114
0.670
2.314
0.291
0.267
0.865
0.953
4.572
1.010
0.507
0.694
0.109
1.750
0.228
22.586
9.955
21.966
19.597
5.523
0.600
0.329
5.035
0.097
0.572
2.379
0.355
0.265
0.829
0.914
4.853
1.138
0.491
0.757
0.111
1.796
0.226
23.194
11.053
23.313
21.060
5.853
0.580
0.298
5.205
0.102
0.613
2.446
0.061
-0.020
0.026
0.033
0.129
0.149
-0.047
0.153
0.059
0.154
0.098
0.020
0.152
0.001
0.080
0.032
0.064
0.109
0.054
0.033
0.006
0.088
Table 4.2: Value Wise Import Demand for the Top 80% Exports of Punjab (contd.)
730840
730890
Equipment for scaffolding,
Other
3.395
22.363
3.259
22.335
3.999
25.673
3.950
27.018
4.391
29.346
0.066
0.070
731815
Threaded articles :-- Other screws
10.995
14.359
17.225
16.673
17.207
0.118
731816
731819
731822
732690
820320
820411
820559
820570
840890
847290
850421
870190
870880
870899
871200
871491
871494
871496
871499
950699
Threaded articles :-- Nuts
Threaded articles :-- Other
Non-threaded articles :-- Other
Other
Pliers (including cutting pliers%),
Hand-operated spanners and wrenches
Other hand tools (including glazier
Vices, clamps and the like
Other engines
Other
Liquid dielectric transformers :-Other
Suspension shock-absorbers
Other parts and accessories :-- Oth
Bicycles and other cycles (includin
Other :-- Frames and forks, and par
Other :-- Brakes, including coaster
Pedals and crank-gear, an
Other
Other
3.323
1.494
1.452
26.633
0.855
0.822
2.307
0.431
7.063
4.139
1.388
14.178
8.139
63.443
6.367
1.497
0.572
0.579
3.003
4.642
4.547
1.859
1.929
31.480
1.066
1.090
2.594
0.546
10.906
4.481
1.420
15.042
11.641
78.611
7.256
1.809
0.752
0.738
3.563
4.955
5.598
2.244
2.256
36.480
1.233
1.301
2.839
0.644
14.880
4.816
1.523
18.944
14.185
90.214
8.148
1.998
0.835
0.828
4.080
5.699
5.625
2.182
2.239
37.022
1.201
1.271
2.769
0.706
12.627
6.703
1.570
20.264
14.833
86.969
8.194
2.185
0.922
0.899
4.431
5.602
5.833
2.258
2.339
39.726
1.228
1.268
2.878
0.731
11.781
6.520
1.608
21.005
15.770
92.009
8.133
2.146
0.887
0.888
4.106
5.629
0.151
0.109
0.127
0.105
0.095
0.114
0.057
0.141
0.136
0.120
0.037
0.103
0.180
0.097
0.063
0.094
0.116
0.113
0.081
0.049
Source: We calculation based on the data collected from UN Comtrade (WITS)
4.3 Analysis of World Import Demand (Quantity Wise) for Thrust Products of Punjab: In order to understand the quantity wise growth
trends in identified thrust products in world market, an analysis of top 80% exports of Punjab has been carried out (Table 4.3). For
example, HS code 1000630 (rice) indicates the value wise market expansion at CAGR of 3 % and quantity wise that of 34%, indicating
the expansion of demand for low priced rice products in the world markets. Similarly, demand for HS code 290611 (drug) is
expanding at higher rate value wise than quantity wise, which may be due to increasing input costs or moving up to higher priced
segments of this products. The demand for HS code 550330 (Acrylic or modacrylic made–ups) witnessed registered higher growth
value wise than quantity wise, which may again be due factors such as supply-demand disequilibrium, increasing production costs
and scaling up of product to higher priced segments. Similarly, the world demand for HS code 731816 (Threaded articles: Nuts) is
expanding faster quantity wise than value wise in which Punjab exporters have revealed competitive advantage, thus showing
increased prospects for exporters of Punjab for this products.
Product
Code
(6 Digit)
Table 4.3: Quantity Wise Import Demand for the Top 80% Exports of Punjab
Product Description
Quantity of World Imports (Million Units)
Unit
2009-10
2010-11
2011-12
2012-13
2013-14
5
Years
CAGR
100630
Semi-milled or wholly milled rice,
Kg
15881.432 18476.537 19342.577
19468.09
60088.5
0.3449
220710
230400
290611
294110
294150
294190
294200
300390
Undenatured ethyl alcohol
Oil-cake and other solid residues,
Cyclanic, cyclenic or cycloterpenic
Penicillins and their derivatives w
Erythromycin and its derivatives; s
Other
Other organic compounds.
Other
Liter
Kg
Kg
Kg
Kg
Kg
Kg
Kg
5459.105 5532.048 7168.464
55259.255 58537.193 60297.257
26.577
27.535
29.603
38.213
48.29
46.299
4.945
137.425
6.491
48.868
69.297
66.601
115.212
152.387
135.433
137.483
623.657
160.151
6432.318
54810.54
32.535
46.199
5.588
64.302
127.918
155.464
7324.82
57115.4
40.504
49.022
5.011
62.797
145.201
161.726
0.0605
0.0066
0.0879
0.051
0.0026
0.0514
0.0473
0.033
Table 4.3: Quantity Wise Import Demand for the Top 80% Exports of Punjab (contd.)
392020
401150
401199
401320
520299
520511
520512
520513
520514
520521
520523
Of polymers of propylene
Of a kind used on bicycles
Other
Of a kind used on bicycles
Other
Single yarn, of uncombed fibres :-Single yarn, of uncombed fibres :-Single yarn, of uncombed fibres :-Single yarn, of uncombed fibres :-Single yarn, of combed fibres :-- M
Single yarn, of combed fibres :-- M
Kg
Item
Item
Item
Kg
Kg
Kg
Kg
Kg
Kg
Kg
2343.523
159.085
51.165
249.105
272.706
309.835
711.99
102.509
74.058
119.506
279.48
2825.83
184.406
65.297
279.094
312.9
387.87
814.52
145.31
79.072
162.629
372.202
2866.499
212.591
69.932
297.991
296.82
327.205
729.308
117.574
96.947
147.622
261.259
2823.744
148.511
84.379
246.588
325.272
276.939
1065.503
124.936
178.471
80.138
287.089
4093.94
181.8
67.933
290.772
5173.05
305.379
1486.94
166.501
327.663
57.088
476.786
0.118
0.027
0.0583
0.0314
0.801
-0.002
0.158
0.101
0.346
-0.137
0.112
520524
520532
520544
520932
550130
550320
550330
550932
Single yarn, of combed fibres :-- M
Multiple (folded%) or cabled yarn,
Multiple (folded%) or cabled yarn,
Dyed :-- 3-thread or 4-thread twill
Acrylic or modacrylic
Of polyesters
Acrylic or modacrylic
Containing 85 % or more by weight
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
253.936
107.536
75.191
95.924
391.282
2226.757
289.068
167.818
284.926
116.038
85.834
105.761
418.668
2672.796
409.649
175.592
204.745
85.223
57.87
104.145
382.465
3252.079
393.696
171.116
273.893
79.47
66.881
78.559
325.823
2357.882
303.966
109.285
391.467
102.777
146.483
180.899
322.833
2801.18
356.1
107.913
0.09
-0.009
0.142
0.135
-0.038
0.046
0.042
-0.084
550953
610323
610520
610590
610910
610990
611020
611030
Other yarn, of polyester staple fib
Suits :-- Of synthetic fibres
Of man-made fibres
Of other textile materials
Of cotton
Of other textile materials
Of cotton
Of man-made fibres
Kg
Item
Item
Item
Item
Item
Item
Item
178.05
18.649
206.034
24.261
8108.493
1457.36
4572.95
2444.08
221.919
19.696
218.135
29.442
7924.241
1754.581
4551.107
2447.539
221.725
24.901
279.879
39.616
8717.423
2181.98
4319.148
2882.241
217.439
10.974
235.511
35.017
6277.792
1732.988
3509.007
2232.333
240.079
20.157
297.816
38.848
7629.2
2414.11
4059.26
3014.73
0.061
0.015
0.076
0.098
-0.012
0.106
-0.023
0.042
Table 4.3: Quantity Wise Import Demand for the Top 80% Exports of Punjab (contd.)
611120
621490
630190
Of cotton
Of other textile materials
Other blankets and travelling rugs
Kg
Item
Kg
266.329
181.182
60.764
289.438
221.601
89.707
278.469
226.622
184.601
255.605
178.317
90.162
463.167
199.109
115.837
0.117
0.019
0.137
630260
630299
630492
730791
Toilet linen and kitchen linen, of
Other :-- Of other textile material
Not knitted or crocheted,
Other :-- Flanges
Kg
Kg
Kg
Kg
684.903
19.375
68.2
592.852
758.387
25.165
77.834
690.181
668.001
20.82
59.915
807.562
675.616
17.657
53.355
867.568
1026.81
22.099
68.872
1023.94
0.084
0.026
0.001
0.115
730840
730890
731815
731816
731819
731822
732690
820320
820411
820559
820570
840890
847290
850421
870190
870880
870899
871200
871491
Equipment for scaffolding, shutteri
Other
Threaded articles :-- Other screws
Threaded articles :-- Nuts
Threaded articles :-- Other
Non-threaded articles :-- Other
Other
Pliers (including cutting pliers%),
Hand-operated spanners and wrenches
Other hand tools (including glazier
Vices, clamps and the like
Other engines
Other
Liquid dielectric transformers :-Other
Suspension shock-absorbers
Other parts and accessories :-- Oth
Bicycles and other cycles (includin
Other :-- Frames and forks, and par
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Kg
Item
Item
Item
Item
Kg
Kg
Item
Kg
1272.335
8396.978
3666.201
1034.729
339.824
276.271
6109.273
164.379
101.466
332.889
78.301
18.716
615.561
121.889
5.144
1104.02
6621.721
61.456
125.287
1541.503
9320.829
7551.205
2192.385
508.846
670.393
8499.702
113.655
149.245
338.737
72.073
32.144
359.344
100.833
56.371
1787.264
9482.003
101.873
167.527
2314.553
11348.568
5232.705
1575.196
480.885
528.4
9733.535
119.064
163.042
264.459
69.93
12.123
177.862
86.026
17.575
1807.512
9519.988
68.659
179.502
2710.22
12257.61
5216.653
1569.171
455.353
387.434
43121.54
91.945
125.038
239.803
73.967
3.51
164.606
67.183
1.419
1219.69
7107.574
61.89
157.043
3122.59
28629.2
8153.18
3546.98
693.149
689.472
22667.6
182.905
258.429
408.192
132.666
2.329
295.523
125.941
2.007
2300.17
10935.3
56.362
178.806
0.196
0.278
0.173
0.279
0.153
0.2
0.299
0.021
0.205
0.041
0.111
-0.34
-0.136
0.006
-0.171
0.158
0.105
-0.017
0.073
Table 4.3: Quantity Wise Import Demand for the Top 80% Exports of Punjab (contd.)
871494
871496
871499
950699
Other :-- Brakes, including coaster
Pedals and crank-gear, an
Other
Other
Kg
Kg
Kg
Item
55.79
61.68
285.741
744.952
65.125
80.235
384.032
695.035
78.083
104.18
409.95
542.346
61.275
76.603
404.424
483.295
70.818
91.213
495.878
510.732
0.048
0.081
0.116
-0.072
Source: We calculation based on the data collected from UN Comtrade (WITS)
Appendix 4.5 at the end provides the details for commodity specific analysis to Punjab exporters to understand the international
markets scenario of thrust products they want to trade in international markets.
4.4 Identification of Thrust Markets for Thrust Products from Punjab: Once the thrust products have been identified, the next step
involves identifying the “thrust markets” for Punjab’s identified exportable. The objective of this analysis is to examine the feasibility
of export market diversification for Punjab. The analysis involves the top 10 importing countries for each of the identified exportable
from Punjab thus suggesting the key markets where the identified products from Punjab can be exported. The reference period is
2013-14. The importing countries along with the percentage share in total imports are reported in Table 4.4. A careful analysis of the
Table suggests that across 67 tariff lines, the major importing countries are USA (55 products), the EU countries, namely, Germany
(52), France (48), Italy (42), Netherland (31), Spain (26) and UK (11), Japan (41), China (36), Canada (23), Russia (23) and Hong
Kong (23). The analysis provides an assessment of the existing and potential export destinations for exporters of Punjab for each of
the identified product.
HS 6 digit
100630
220710
230400
290611
294110
294150
Table 4.4: Top 10 Importers in the World with Market Share (%) for the Top 80% Exports of Punjab
Product
Top 10 importing countries in the World (%)
Description
Semimilled or
wholly
milled rice
Undenatur
ed ethyl
alcohol
Oil-cake
and other
solid
residues,
Cyclanic,
cyclenic or
cycloterpe
nic
Penicillins
and their
derivatives
Erythromy
cin and its
derivatives
Saudi
Arabia
(10.9%)
China
(6.8%)
USA
(5.6%)
South
Africa
(5.2%)
Malaysia
(4.0%)
Japan
(3.8%)
Benin
(3.2%)
France
(2.9%)
Yemen
(2.8%)
Cote
d'Ivoire
(2.8%)
USA
(24.8%)
Germany
(13.4%)
Japan
(7.2%)
UK
(4.8%)
Sweden
(2.7%)
Italy
(2.6%)
Jamaica
(2.5%)
France
(2.5%)
Belgium
(2.2%)
Netherla
nds
(7.6%)
Indonesia
(6.4%)
Netherlan
ds
(12.1%)
Vietnam
(5.8%)
France
(5.4%)
German
y
(5.3%)
Thailand
(5.1%)
Japan
(3.4%)
Italy
(3.2%)
Poland
(3.0%)
Korea
(3.0%)
China
(35.6%)
USA
(14.0%)
Singapore
(6.9%)
German
y
(4.9%)
Thailand Indonesi
(3.9%)
a
(3.1%)
Brazil
(2.9%)
Hong
Kong
(2.5%)
France
(2.2%)
Japan
(2.2%)
India
(14.9%)
Italy
(12.1%)
Austria
(8.5%)
Belgium
(7.9%)
USA
(5.3%)
Spain
(2.9%)
France
(2.9%)
Japan
(17.4%)
India
(15.3%)
Italy
(10.3%)
UK
(6.6%)
USA
(4.6%)
Belgium
(2.2%)
Croatia
(2.1%)
Netherla Thailand Portugal
nds
(3.0%)
(3.0%)
(4.3%)
Singapor Australi
Mexico
e
a
(2.4%)
(3.3%)
(2.4%)
Table 4.4: Top 10 Importers in the World with Market Share (%) for the Top 80% Exports of Punjab (contd.)
294190
Other
Italy
(16.1%)
Germany
(10.3%)
France
(7.5%)
USA
(7.4%)
294200
Other
organic
compound
s.
Other
India
(58.1%)
Jordan
(4.2%)
USA
(3.8%)
Saudi
Arabia
(2.7%)
USA
(24.1%)
Belgium
(14.3%)
Ireland
(8.1%)
Of
polymers
of
propylene
Of a kind
used on
bicycles
Other
German
y
(8.3%)
USA
(7.9%)
German
y
(14.1%)
USA
(20.4%)
USA
(12.5%)
300390
392020
401150
401199
401320
Of a kind
used on
bicycles
Switzerl
and
(6.6%)
Japan
(2.1%)
Belgium
(6.1%)
China
(6.0%)
India
(5.2%)
Japan
(3.0%)
German
y
(2.1%)
Vietnam
(2.0%)
Italy
(1.7%)
France
(1.4%)
Italy
(5.0%)
Spain
(3.4%)
Tunisia
(3.2%)
China
(3.1%)
Mexico
(2.4%)
Japan
(2.4%)
China
(5.6%)
Belgium
(5.3%)
France
(4.8%)
UK
(4.2%)
Italy
(3.8%)
Netherla
nds
(2.6%)
Poland
(3.2%)
Mexico
(3.0%)
Netherla
nds
(2.9%)
USA
(10.1%)
Italy
(5.7%)
France
(5.0%)
Japan
(4.5%)
Brazil
(4.3%)
Mexico
(4.2%)
UK
(3.1%)
Spain
(2.5%)
Australia
(11.6%)
Russia
(7.0%)
Netherla
nds
(5.4%)
Canada
(6.7%)
Chile
(5.8%)
Brazil
(3.7%)
Brazil
(6.8%)
France
(5.5%)
Mexico
(5.2%)
South
Africa
(3.2%)
Netherla
nds
(4.0%)
China
(2.8%)
Germany
(10.6%)
Indonesi
a
(4.8%)
Japan
(4.7%)
Colombi
a
(2.6%)
Poland
(2.4%)
Italy
(4.7%)
Spain
(2.6%)
Netherla
nds
(2.9%)
Netherla
nds
(1.4%)
Table 4.4: Top 10 Importers in the World with Market Share (%) for the Top 80% Exports of Punjab (contd.)
520299
Other
China
(29.3%)
Germany
(13.5%)
Italy
(7.9%)
Belgium
(7.1%)
France
(6.4%)
520511
Single yarn,
of
uncombed
fibres :-Single yarn,
of
uncombed
fibres :-Single yarn,
of
uncombed
fibres :-Single yarn,
of
uncombed
fibres :-Single yarn,
of combed
fibres :-- M
Single yarn,
of combed
fibres :-- M
China
(40.9%)
Hong
Kong
(13.5%)
Malaysia
(3.5%)
China
(68.6%)
Turkey
(3.9%)
Dominica
n
Republic
(11.9%)
Hong
Kong
(3.2%)
China
(36.6%)
El
Salvador
(9.1%)
China
(89.4%)
Sri
Lanka
(28.6%)
China
(20.8%)
520512
520513
520514
520521
520523
Netherla Thailand
nds
(3.1%)
(3.6%)
German
El
y
Salvador
(2.0%)
(2.0%)
Switzerl
and
(3.1%)
Pakistan
(1.9%)
USA
(2.9%)
Egypt
(3.5%)
Hong
Kong
(4.7%)
Turkey
(2.0%)
Mexico
(2.9%)
Russia
(2.6%)
Korea
(2.1%)
El
Guatema
Salvador
la
(1.9%)
(1.6%)
Japan
(1.3%)
Portugal
(1.3%)
Korea
(8.5%)
Turkey
(7.3%)
Hong
Kong
(4.3%)
Guatema
la
(4.1%)
Portugal
(3.7%)
Spain
(2.4%)
Peru
(2.4%)
Colombi
a
(2.0%)
Hong
Kong
(4.7%)
Russia
(1.5%)
Japan
(1.1%)
Korea
(0.5%)
Indonesi
a
(0.4%)
Portugal
(0.4%)
Turkey
(0.4%)
Sri
Lanka
(0.2%)
Italy
(0.2%)
Hong
Kong
(11.7%)
Korea
(10.8%)
Malaysia
(11.1%)
China
(5.4%)
Israel
(3.3%)
Vietnam
(1.6%)
Italy
(3.9%)
Peru
(3.8%)
Philippi
nes
(1.7%)
Vietnam
(3.5%)
Guatema
la
(1.6%)
Indonesi
a
(3.2%)
Hong
Kong
(7.4%)
Mauritiu
Egypt
s
(10.0%)
(11.1%)
Portugal Guatema
(6.1%)
la
(5.1%)
Turkey
(3.4%)
Sri
Lanka
(1.8%)
Table 4.4: Top 10 Importers in the World with Market Share (%) for the Top 80% Exports of Punjab (contd.)
520524
520532
520544
520932
550130
550320
550330
Single yarn,
of combed
fibres :-- M
Multiple
(folded%)
or cabled
yarn, o
Multiple
(folded%)
or cabled
yarn, o
Dyed :-- 3thread or
4-thread
twill
Acrylic or
modacrylic
Of
polyesters
China
(41.1%)
Hong
Kong
(28.5%)
China
(20.3%)
Korea
(3.9%)
Turkey
(2.9%)
Portugal
(2.2%)
Japan
(2.1%)
Italy
(2.1%)
France
(1.3%)
Portugal
(11.3%)
Turkey
(8.9%)
Korea
(7.0%)
German
y
(4.5%)
Russia
(3.5%)
Belgium
(2.9%)
Hong
Kong
(54.8%)
Italy
(13.8%)
China
(3.6%)
Mauritiu
s
(2.7%)
Portugal
(2.4%)
Japan
(2.3%)
Turkey
(1.9%)
Croatia
(1.6%)
Korea
(1.6%)
France
(1.5%)
Hong
Kong
(19.9%)
Mexico
(13.0%)
Indonesia
(5.2%)
Tunisia
(5.1%)
Morocco
(4.8%)
German
y
(3.6%)
Sri
Lanka
(3.6%)
China
(2.8%)
Vietnam
(2.8%)
Romania
(2.4%)
China
(19.6%)
USA
(13.0%)
Turkey
(14.5%)
Vietnam
(8.6%)
Indonesia
(9.7%)
Germany
(8.5%)
USA
(9.2%)
China
(4.9%)
Italy
(4.9%)
Turkey
(4.3%)
Kenya
(3.4%)
Russia
(4.3%)
Pakistan
(3.3%)
Italy
(4.1%)
India
(3.1%)
Spain
(3.3%)
Egypt
(2.6%)
Mexico
(3.2%)
China
(42.3%)
Turkey
(10.9%)
USA
(8.2%)
India
(5.4%)
Romania
(5.4%)
Indonesi
a
(4.5%)
Indonesi
a
(5.1%)
Acrylic or
modacrylic
Spain
(3.8%)
Italy
(3.6%)
Pakistan Romania
(3.0%)
(1.6%)
Hong
Kong
(21.2%)
Indonesi Germany
a
(1.1%)
(1.2%)
Italy
Spain
(2.4%)
(2.1%)
Nepal
(1.3%)
Table 4.4: Top 10 Importers in the World with Market Share (%) for the Top 80% Exports of Punjab (contd.)
550932
550953
610323
610510
610520
610590
610910
Containing
85 % or
more by
weight o
Other yarn,
of
polyester
staple fib
Suits :-- Of
synthetic
fibres
Of cotton
Korea
(13.7%)
Hong
Kong
(9.4%)
France
(7.3%)
Russia
(7.0%)
Poland
(5.3%)
Argentin
a
(3.9%)
Ethiopia
(3.6%)
Italy
(3.5%)
USA
(2.9%)
Austria
(2.8%)
Korea
(9.8%)
Turkey
(9.3%)
El
Salvador
(8.4%)
Portugal
(6.4%)
Colombi
a
(6.3%)
Egypt
(5.2%)
Japan
(4.5%)
China
(4.0%)
Spain
(3.4%)
USA
(2.8%)
Japan
(20.3%)
Italy
(12.3%)
Israel
(6.6%)
Belgium
(5.8%)
Russia
(4.7%)
Spain
(4.7%)
Kuwait
(3.9%)
China
(3.2%)
Brazil
(2.9%)
Germany
(2.7%)
USA
(25.1%)
Germany
(9.4%)
France
(7.0%)
Italy
(6.0%)
Japan
(5.7%)
Spain
(4.4%)
UK
(2.6%)
USA
(45.8%)
Japan
(14.3%)
Canada
(3.3%)
France
(2.4%)
Portugal
(10.8%)
Singapore
(9.3%)
USA
(5.5%)
Malaysia
(3.5%)
China
(3.4%)
Germany
(13.2%)
France
(6.4%)
Japan
(5.4%)
Netherla
nds
(4.4%)
Belgium
(4.0%)
German
y
(2.6%)
Hong
Kong
(3.6%)
Italy
(2.5%)
USA
(19.0%)
Hong
Kong
(2.6%)
Hong
Kong
(3.7%)
Italy
(4.8%)
Brazil
(2.5%)
France
(12.4%)
Australi
a
(2.8%)
South
Africa
(3.9%)
Spain
(4.8%)
Netherla
nds
(2.4%)
UK
(2.1%)
Belgium
(2.3%)
Of manmade
fibres
Of other
textile
materials
Of cotton
Hong
Kong
(7.2%)
Germany
(4.3%)
Belgium
(2.0%)
Canada
(2.3%)
Table 4.4: Top 10 Importers in the World with Market Share (%) for the Top 80% Exports of Punjab (contd.)
610990
611020
611030
611120
621490
630190
630260
Of other
textile
materials
Of cotton
German
y
(13.4%)
USA
(38.8%)
USA
(13.2%)
Japan
(11.5%)
France
(7.1%)
Spain
(5.5%)
Belgium
(3.7%)
Italy
(3.6%)
Germany
(8.8%)
Japan
(5.7%)
France
(4.7%)
Italy
(3.4%)
Spain
(3.2%)
Of manmade
fibres
Of cotton
USA
(25.1%)
Japan
(15.3%)
Hong
Kong
(7.3%)
Germany
(9.9%)
France
(6.7%)
Spain
(4.1%)
Italy
(3.2%)
USA
(31.0%)
France
(8.5%)
Germany
(6.6%)
Italy
(5.0%)
Spain
(4.6%)
Japan
(3.7%)
Canada
(2.9%)
Of other
textile
materials
Other
blankets
and
travelling
rugs
Toilet linen
and
kitchen
linen, of
German
y
(12.9%)
Saudi
Arabia
(21.2%)
France
(11.3%)
Japan
(9.1%)
USA
(8.9%)
Hong
Kong
(4.9%)
Hong
Kong
(4.9%)
Spain
(4.9%)
Netherla
nds
(3.3%)
Netherla
nds
(2.9%)
Canada
(3.0%)
Italy
(4.5%)
UK
(3.0%)
Belgium
(3.0%)
Algeria
(5.8%)
Jordan
(5.2%)
India
(5.2%)
Vietnam
(3.1%)
USA
(3.0%)
Qatar
(2.7%)
German
y
(2.7%)
USA
(38.4%)
Japan
(13.5%)
Germany
(6.5%)
France
(5.0%)
Canada
(2.8%)
Italy
(2.5%)
Russia
(2.4%)
Australi
a
(2.3%)
Hong
Kong
(3.1%)
Canada
(2.7%)
Canada
(2.3%)
Belgium
(2.1%)
Belgium
(2.5%)
Russia
(2.3%)
Saudi
Arabia
(2.7%)
Netherla
nds
(2.9%)
Yemen
(2.6%)
Netherla
nds
(2.6%)
Switzerl
and
(2.4%)
Netherla
nds
(2.5%)
Spain
(2.3%)
Netherla
nds
(2.1%)
Table 4.4: Top 10 Importers in the World with Market Share (%) for the Top 80% Exports of Punjab (contd.)
630299
630492
730791
730840
730890
731815
731816
Other :-- Of
other
textile
material
Not knitted
or
crocheted,
Other :-Flanges
France
(13.2%)
Germany
(9.8%)
Italy
(5.2%)
Panama
(4.7%)
USA
(4.5%)
Russia
(3.8%)
Singapor
e
(3.4%)
Algeria
(3.0%)
Spain
(2.7%)
Belgium
(2.5%)
USA
(39.6%)
Germany
(9.8%)
Japan
(6.0%)
France
(4.1%)
India
(2.8%)
Canada
(2.6%)
Italy
(2.5%)
Korea
(6.6%)
Germany
(6.3%)
Canada
(5.6%)
Japan
(3.8%)
USA
(6.1%)
Saudi
Arabia
(4.7%)
Singapor
e
(3.1%)
Japan
(3.0%)
Malaysia
(2.6%)
Germany
(7.5%)
Saudi
Arabia
(4.3%)
Switzerl
and
(4.2%)
Netherla
nds
(2.3%)
Thailand
(3.0%)
Sweden
(1.9%)
USA
(15.1%)
Australi
a
(2.4%)
Mexico
(3.0%)
Canada
(2.8%)
Austria
(2.7%)
Russia
(2.5%)
Australia
(7.3%)
USA
(6.7%)
Korea
(6.2%)
Japan
(4.2%)
France
(3.7%)
Norway
(3.2%)
Russia
(3.1%)
Germany
(9.6%)
China
(8.0%)
Mexico
(7.0%)
Canada
(4.4%)
Saudi
Arabia
(4.1%)
France
(4.3%)
Thailand
(2.9%)
Brazil
(2.8%)
Netherla
nds
(2.5%)
Switzerl
and
(2.8%)
Japan
(2.5%)
China
(9.0%)
Germany
(9.0%)
Mexico
(6.9%)
Canada
(5.7%)
Japan
(3.7%)
France
(3.5%)
Thailand
(3.5%)
Brazil
(2.6%)
Equipment Singapor
for
e
scaffolding, (8.1%)
shutteri
Other
German
y
(7.5%)
Threaded
USA
articles :-- (12.9%)
Other
screws
Threaded
USA
articles :-- (17.5%)
Nuts
France
(4.0%)
Netherla
nds
(2.4%)
Table 4.4: Top 10 Importers in the World with Market Share (%) for the Top 80% Exports of Punjab (contd.)
731819
731822
732690
820320
820411
820559
820570
Threaded
articles :-Other
Nonthreaded
articles :-Other
Other
Pliers
(including
cutting
pliers%),
Handoperated
spanners
and
wrenches
Other hand
tools
(including
glazier
Vices,
clamps and
the like
German
y
(9.0%)
USA
(11.7%)
France
(6.4%)
Spain
(4.4%)
USA
(4.3%)
Russia
(4.0%)
Belgium
(3.9%)
Italy
(3.3%)
China
(2.9%)
Indonesi
a
(3.2%)
Netherla
nds
(2.9%)
Saudi
Arabia
(2.9%)
Czech
Republic
(2.8%)
Brazil
(2.7%)
China
(11.0%)
Mexico
(7.0%)
German
y
(6.4%)
Thailand
(5.4%)
Canada
(3.2%)
Vietnam
(3.2%)
USA
(8.5%)
USA
(17.0%)
Germany
(8.0%)
Germany
(7.4%)
Mexico
(5.9%)
France
(4.8%)
Thailand
Korea
(5.7%)
(5.2%)
Canada Netherla
(4.7%)
nds
(3.6%)
France
(4.5%)
Belgium
(3.2%)
China
(4.3%)
Mexico
(3.1%)
Japan
(3.5%)
Russia
(3.0%)
Russia
(3.2%)
Austria
(2.5%)
Egypt
(2.9%)
Italy
(2.5%)
USA
(19.3%)
Germany
(7.5%)
Russia
(5.2%)
Canada
(5.2%)
France
(4.3%)
China
(4.0%)
Japan
(3.3%)
Mexico
(2.8%)
Netherla
nds
(2.8%)
Italy
(2.5%)
USA
(15.1%)
Germany
(6.9%)
France
(6.1%)
Canada
(5.0%)
Russia
(3.9%)
Singapor
e
(3.2%)
Austria
(3.2%)
Switzerl
and
(2.8%)
Netherla Denmark
nds
(2.6%)
(2.7%)
USA
(19.2%)
Russia
(8.5%)
Canada
(7.1%)
Thailand
(6.7%)
German
y
(6.7%)
Singapor
e
(3.0%)
Australi
a
(3.0%)
Japan
(2.7%)
France
(2.6%)
Belgium
(2.4%)
Table 4.4: Top 10 Importers in the World with Market Share (%) for the Top 80% Exports of Punjab (contd.)
840890
847290
850421
870190
870880
870899
871200
Other
engines
Other
USA
(20.9%)
USA
(12.7%)
Germany
(5.4%)
Japan
(6.4%)
France
(4.8%)
Russia
(5.3%)
USA
(16.6%)
China
(17.6%)
Hong
Kong
(9.2%)
Russia
(7.1%)
Liquid
dielectric
transforme
rs :-Other
Suspension
shockabsorbers
Other parts
and
accessories
:-- Oth
Bicycles
and other
cycles
(includin
Korea
(3.9%)
Singapor
e
(5.1%)
UK
(3.6%)
Italy
(3.5%)
German
y
(4.4%)
France
(2.9%)
Brazil
(3.4%)
China
(3.6%)
Belgium
(2.7%)
France
(3.3%)
Canada
(2.6%)
India
(3.1%)
Turkey
(2.3%)
Turkey
(2.9%)
Algeria
(5.3%)
German
y
(5.0%)
Saudi
Arabia
(2.9%)
Canada
(2.7%)
Japan
(2.6%)
Mexico
(2.2%)
USA
(14.8%)
France
(10.8%)
Canada
(7.1%)
UK
(3.7%)
Belgium
(3.6%)
Poland
(3.3%)
Italy
(2.6%)
Russia
(7.7%)
China
(4.8%)
UK
(3.3%)
Belgium
(3.0%)
Australi
a
(2.5%)
Poland
(2.6%)
Spain
(2.1%)
Germany
(8.5%)
German
y
(6.8%)
Mexico
(8.3%)
USA
(20.3%)
Canada
(10.1%)
USA
(16.8%)
Spain
(12.4%)
Germany
(7.7%)
Mexico
(4.3%)
France
(4.2%)
Canada
(3.8%)
UK
(3.3%)
China
(3.2%)
Italy
(2.9%)
Thailand
(2.9%)
USA
(19.8%)
Japan
(10.7%)
Germany
(9.2%)
Netherla
nds
(5.4%)
France
(4.6%)
Belgium
(4.3%)
Australi
a
(3.4%)
Spain
(3.4%)
Canada
(3.0%)
Switzerl
and
(2.5%)
France
(2.5%)
Table 4.4: Top 10 Importers in the World with Market Share (%) for the Top 80% Exports of Punjab (contd.)
871491
871494
871496
871499
950699
Other :-German
USA
Frames
y
(10.4%)
and forks
(17.1%)
Other :-Singapor Germany
Brakes,
e
(14.3%)
including
(18.0%)
coaster
Pedals and Singapor Germany
crank-gear,
e
(13.7%)
an
(21.1%)
Other
German Netherlan
y
ds
(11.6%) (10.3%)
Other
USA
Canada
(30.9%)
(7.7%)
Hong
Kong
(9.3%)
China
(8.7%)
Netherla
nds
(8.1%)
Netherla
nds
(6.5%)
Italy
(5.3%)
France
(3.7%)
Japan
(2.8%)
Spain
(2.7%)
Portugal
(2.3%)
Russia
(2.1%)
USA
(5.2%)
Italy
(4.2%)
Brazil
(3.4%)
France
(2.7%)
Poland
(2.4%)
Japan
(2.4%)
USA
(8.7%)
Netherla
nds
(6.0%)
China
(7.1%)
China
(6.0%)
Italy
(4.6%)
Spain
(2.5%)
France
(2.4%)
Brazil
(2.1%)
Japan
(2.0%)
France
(4.9%)
USA
(4.9%)
Italy
(4.0%)
Spain
(2.9%)
Belgium
(2.7%)
German
y
(5.0%)
Japan
(4.7%)
Belgium
(2.9%)
Indonesi
a
(4.3%)
Australi
a
(2.8%)
Netherla
nds
(2.5%)
Russia
(2.4%)
Switzerl
and
(2.2%)
Singapore
(8.5%)
France
(5.4%)
Source: We calculation based on the data collected from UN Comtrade (WITS)
4.5 Analysis of Key Competitors’ for Thrust Products by Punjab Exporters: Once the top 10 importing countries for each of the
identified exportable from Punjab has been identified, the analysis revolves around identifying the major competitors of India for
these products. For this, the top 10 exporting countries for each of the 67 export interest item of Punjab has been studied. The
reference period is 2013-14. The exporting countries along with the percentage share in total exports are reported in Table 4.5. A
careful analysis of the Table suggests that across 67 tariff lines, India with 55 products is competing with China (61), Germany (49),
Italy (44), USA (39), France (35), Spain (30) and Belgium (30). However, out of 55 products; India’s share in total exports for the
following 27 tariff lines is very low (less than 10%): HS codes 220710, 230400, 294190, 300390, 401150, 401199, 550130, 550320,
550330, 550932, 610323, 610510, 610910, 610990, 730791, 730840, 731815, 731816, 731819, 731822, 820320, 850421, 8701090,
871491, 871494, 871496 and 871499. It is interesting to note here that out of these 27 tariff lines, 5 (HS Codes 230400, 550330,
730791, 731815 and 731816) constitutes the Priority 1 exports for Punjab, i.e., the world import demand for these products are
rising, India’s share in total world import demand is increasing and Punjab’s share in India’s total exports is also increasing. Another 8
tariff lines (HS codes 401199, 550320, 610323, 610910, 610990, 731816, 871494 and 971496) exist which constitutes the Priority 2
exports for Punjab, i.e., the world import demand for these products are rising, India’s share in total world import demand is
decreasing but Punjab’s share in India’s total exports is also increasing (refer to Table 3.7 in the previous Chapter). The above analysis
provides an assessment of the major competing export destinations for Punjab for each of the identified product.
Table 4.5: Top 10 Exporters (Competitors for Punjab Exports) to the World with Market Share (%) for the Top 80% Exports of
Punjab
HS 6 digit
Product
Description
100630
Semi-milled
or
wholly
milled rice,
Undenatured
ethyl alcohol
of an alc
Oil-cake and
other solid
residues,
Cyclanic,
cyclenic or
cycloterpenic
220710
230400
290611
Top 10 Exporting countries to the World (%)
India
(36.4%)
Thailand
(18.8%)
Vietnam
(13.2%)
Pakistan
(8.4%)
USA
(6.2%)
Italy
(2.6%)
Uruguay
(2.0%)
Australia
(1.5%)
Cambodia
(1.2%)
Belgium
(1.1%)
Brazil
(27.2%)
France
(9.6%)
USA
(8.5%)
Netherlands
(8.3%)
Belgium
(5.9%)
Hungary
(4.3%)
Pakistan
(4.0%)
Spain
(3.0%)
India
(2.6%)
Germany
(2.6%)
Argentina
(34.1%)
Brazil
(21.7%)
USA
(12.8%)
India
(9.1%)
Netherlands
(7.1%)
Paraguay
(3.0%)
Germany
(2.6%)
China
(2.0%)
Bolivia
(2.0%)
Belgium
(1.0%)
India
(41.7%)
China
(20.4%)
Germany
(16.5%)
Japan
(7.5%)
Singapore
(7.0%)
USA
(2.6%)
France
(1.3%)
Netherlands
(1.0%)
UK
(0.6%)
Paraguay
(0.4%)
29411
0
Penicillins
and
their
derivatives
w
China
(35.9%)
Spain
(13.0%)
India
(10.4%)
Austria
(7.1%)
Singapore
(6.8%)
Belgium
(6.6%)
Italy
(5.4%)
Netherlands
(4.1%)
Mexico
(2.6%)
France
(2.5%)
29415
0
Erythromyc
in and its
derivatives;
s
Other
USA
(48.3%)
China
(21.9%)
India
(14.9%)
Singapore
(4.7%)
Spain
(3.4%)
Malaysia
(1.7%)
Netherlands
(1.6%)
Thailand
(0.8%)
Germany
(0.6%)
France
(0.5%)
Switzerla
nd
(23.2%)
India
(77.2%)
China
(17.7%)
India
(7.8%)
Italy
(7.7%)
Belgium
(7.3%)
Ireland
(6.1%)
Netherlands
(4.9%)
USA
(4.8%)
Japan
(3.2%)
Korea
(3.2%)
USA
(6.7%)
China
(4.1%)
Germany
(1.9%)
Italy
(1.3%)
Korea
(1.1%)
UK
(0.8%)
France
(0.7%)
Singapore
(0.7%)
Finland
(0.5%)
Israel
(31.6%)
USA
(11.7%)
Spain
(8.1%)
India
(4.7%)
Germany
(4.0%)
France
(3.9%)
Ireland
(3.7%)
Belgium
(3.4%)
Netherlands
(3.4%)
Germany
(12.1%)
Italy
(10.3%)
Belgium
(7.0%)
China
(6.6%)
Switzerlan
d
(4.0%)
USA
(5.4%)
Turkey
(3.5%)
Japan
(3.4%)
Netherlands
(3.2%)
Mexico
(3.1%)
France
(2.8%)
China
(31.5%)
Germany
(15.3%)
Thailand
(10.5%)
India
(7.6%)
France
(3.0%)
Sri Lanka
(2.8%)
Vietnam
(2.5%)
China
(12.2%)
India
(12.2%)
USA
(8.5%)
Thailand
(7.4%)
Belarus
(4.4%)
Germany
(5.2%)
Italy
(3.3%)
France
(2.7%)
Sri Lanka
(2.4%)
Vietnam
(2.3%)
Netherlands
(2.1%)
Serbia
(1.1%)
India
(21.7%)
Turkey
(13.4%)
Pakistan
(9.9%)
Belgium
(8.8%)
Indonesia
(5.9%)
Brazil
(2.6%)
Czech
Republic
(2.4%)
Vietnam
(5.2%)
Czech
Republic
(2.4%)
France
(2.3%)
Netherlands
(2.0%)
Italy
(2.4%)
Japan
(37.5%)
China
(53.1%)
Indones
ia
(14.2%)
India
(8.8%)
Indones
ia
(8.0%)
German
y
(11.2%)
USA
(3.6%)
France
(3.4%)
Italy
(3.0%)
29419
0
29420
0
30039
0
39202
0
40115
0
40119
9
40132
0
52029
9
Other
organic
compounds
.
Other
Of
polymers of
propylene
Of a kind
used
on
bicycles
Other
Of a kind
used
on
bicycles
Other
52051
1
52051
2
52051
3
52051
4
52052
1
52052
3
52052
4
52053
2
52054
4
Single yarn,
of
uncombed
fibres :-Single yarn,
of
uncombed
fibres :-Single yarn,
of
uncombed
fibres :-Single yarn,
of
uncombed
fibres :-Single yarn,
of combed
fibres :-- M
Single yarn,
of combed
fibres :-- M
Single yarn,
of combed
fibres :-- M
Multiple
(folded%)
or cabled
yarn, o
Multiple
(folded%)
or cabled
India
(40.9%)
Pakistan
(21.9%)
China
(12.8%)
USA
(4.0%)
Turkey
(3.1%)
Vietnam
(2.9%)
Spain
(2.8%)
Italy
(1.7%)
Indonesia
(1.4%)
Ethiopia
(1.0%)
Pakistan
(37.6%)
USA
(18.8%)
India
(17.4%)
Vietnam
(10.9%)
Indonesia
(3.2%)
China
(2.9%)
Turkey
(2.5%)
Mexico
(0.7%)
Thailand
(0.6%)
Azerbaijan
(0.6%)
USA
(31.7%)
India
(26.3%)
Pakista
n
(9.7%)
Turkey
(7.4%)
Indonesia
(6.2%)
Vietnam
(6.1%)
China
(2.3%)
Mexico
(2.2%)
El Salvador
(1.3%)
Guatemala
(1.3%)
India
(58.0%)
Vietnam
(28.6%)
Indones
ia
(6.6%)
China
(4.0%)
Turkey
(0.8%)
Pakistan
(0.8%)
Thailand
(0.5%)
Azerbaijan
(0.2%)
Germany
(0.1%)
Korea
(0.1%)
India
(68.5%)
China
(8.2%)
Pakistan
(4.1%)
Egypt
(3.3%)
El Salvador
(1.4%)
Italy
(1.1%)
Turkey
(0.9%)
Indonesia
(0.9%)
USA
(0.5%)
India
(58.8%)
China
(8.1%)
Thailan
d
(7.9%)
USA
(7.9%)
Korea
(7.1%)
Turkey
(4.0%)
Pakistan
(2.6%)
Indonesia
(2.3%)
Germany
(1.1%)
Malaysia
(0.8%)
Italy
(0.7%)
India
(50.3%)
China
(30.2%)
Korea
(3.7%)
Indonesia
(2.5%)
Vietnam
(2.3%)
Thailand
(2.3%)
Turkey
(2.1%)
Pakistan
(1.4%)
Germany
(0.9%)
Greece
(0.7%)
Pakistan
(37.5%)
Nigeria
(21.0%)
India
(13.4%)
China
(12.6%)
Vietnam
(3.8%)
Belgium
(2.0%)
Germany
(1.8%)
Turkey
(1.7%)
Ethiopia
(0.9%)
Czech
Republic
(0.7%)
China
(45.2%)
Egypt
(21.8%)
India
(18.1%)
Italy
(3.4%)
Pakistan
(3.2%)
Turkey
(2.1%)
Indonesia
(1.2%)
Belgium
(1.1%)
Germany
(0.6%)
Thailand
(0.6%)
52093
2
55013
0
55032
0
55033
0
55093
2
55095
3
61032
3
61051
0
61052
0
61059
0
61091
0
61099
yarn, o
Dyed :-- 3thread or 4thread twill
Acrylic or
modacrylic
China
(27.7%)
Pakistan
(16.2%)
USA
(11.7%)
India
(10.6%)
Germany
(5.7%)
Japan
(4.5%)
Spain
(3.7%)
Italy
(3.2%)
Thailand
(2.8%)
Korea
(1.3%)
Japan
(39.5%)
Thailand
(16.3%)
Belarus
(10.6%)
Korea
(6.0%)
Spain
(3.2%)
Peru
(3.0%)
Mexico
(2.5%)
Brazil
(2.4%)
India
(1.8%)
Of
polyesters
Acrylic or
modacrylic
Containing
85 % or
more
by
weight o
Other yarn,
of polyester
staple fib
Suits :-- Of
synthetic
fibres
Of cotton
Korea
(26.2%)
Japan
(46.4%)
China
(33.1%)
China
(24.8%)
Thailand
(17.3%)
Turkey
(16.2%)
Portuga
l
(11.5%)
India
(8.2%)
Korea
(6.9%)
Indones
ia
(14.2%)
Thailand
(7.9%)
Portugal
(6.8%)
Romania
(5.3%)
USA
(3.8%)
Egypt
(6.3%)
India
(3.2%)
Ireland
(3.8%)
Belarus
(5.3%)
Thailand
(2.9%)
Malaysia
(3.5%)
India
(2.7%)
Italy
(2.6%)
Vietnam
(2.7%)
China
(2.1%)
Belarus
(2.6%)
Indonesia
(2.6%)
Spain
(1.9%)
Spain
(2.5%)
Belgium
(2.4%)
Peru
(0.8%)
Bulgaria
(2.4%)
USA
(31.5%)
India
(17.6%)
Vietnam
(12.7%)
Indonesia
(11.2%)
China
(9.2%)
Malaysia
(3.0%)
Thailand
(2.3%)
Turkey
(2.3%)
Pakistan
(1.7%)
Belgium
(1.3%)
China
(86.4%)
India
(6.6%)
Italy
(1.6%)
Turkey
(0.6%)
Netherlands
(0.5%)
Vietnam
(0.4%)
Portugal
(0.2%)
Thailand
(0.2%)
Pakistan
(0.2%)
China
(28.6%)
India
(7.4%)
Pakistan
(5.5%)
Vietnam
(5.5%)
Italy
(5.3%)
Turkey
(4.3%)
Peru
(4.1%)
Guatemala
(3.9%)
France
(3.6%)
Of
manmade fibres
Of
other
textile
materials
Of cotton
China
(39.5%)
Pakistan
(34.9%)
India
(12.8%)
Cambodia
(12.8%)
Morocc
o
(1.7%)
German
y
(6.0%)
Vietnam
(10.7%)
India
(10.3%)
Belgium
(4.7%)
Indonesia
(6.3%)
Thailand
(3.1%)
Portugal
(4.6%)
Indonesia
(2.5%)
Italy
(3.1%)
Germany
(1.8%)
Kenya
(2.2%)
Jordan
(1.8%)
Vietnam
(2.1%)
El Salvador
(1.6%)
China
(1.8%)
China
(20.3%)
China
India
(8.7%)
Turkey
Turkey
(8.3%)
German
Germany
(6.0%)
India
Guatemala
(4.0%)
Philippine
s
(5.9%)
Spain
(4.8%)
Belgium
Vietnam
(4.0%)
Vietnam
Cambodia
(3.9%)
Spain
Netherlands
(3.7%)
Italy
Belgium
(3.7%)
France
Italy
(3.5%)
Mexico
Of
other
0
61102
0
61103
0
61112
0
62149
0
63019
0
63026
0
63029
9
63049
2
73079
1
73084
0
textile
materials
Of cotton
(34.1%)
(10.8%)
China
(48.3%)
Vietnam
(6.8%)
Of
manmade fibres
Of cotton
China
(58.6%)
China
(45.9%)
India
(51.7%)
Germany
(5.3%)
India
(12.1%)
China
(18.6%)
India
(28.9%)
Morocco
(10.7%)
China
(45.8%)
India
(13.7%)
Pakistan
(19.9%)
India
(17.6%)
India
(66.1%)
China
(15.1%)
China
(26.3%)
Germany
(19.7%)
Italy
(21.0%)
China
(18.8%)
Of
other
textile
materials
Other
blankets
and
travelling
rugs
Toilet linen
and kitchen
linen, of
Other :-- Of
other
textile
material
Other
:-Not knitted
or
crocheted,
Other
:-Flanges
Equipment
for
y
(5.4%)
German
y
(5.4%)
Vietnam
(3.9%)
France
(4.3%)
Italy
(10.3%)
(5.3%)
(4.7%)
(3.9%)
(3.3%)
(3.1%)
(2.3%)
(2.1%)
Turkey
(5.1%)
Italy
(3.7%)
Indonesia
(3.5%)
Spain
(3.0%)
Belgium
(2.3%)
France
(1.9%)
Turkey
(3.6%)
Germany
(3.3%)
Germany
(2.5%)
Netherlan
ds
(3.9%)
Italy
(3.6%)
Thailand
(3.1%)
France
(2.2%)
Spain
(3.5%)
Turkey
(2.7%)
Spain
(1.4%)
Belgium
(2.5%)
Sri Lanka
(2.5%)
Madagascar
(1.3%)
France
(2.0%)
Spain
(2.3%)
Denmark
(1.2%)
Netherlands
(1.7%)
Vietnam
(1.9%)
Netherlands
(1.1%)
Indonesia
(1.6%)
Netherlands
(1.8%)
Turkey
(0.8%)
Pakista
n
(7.6%)
Vietnam
(5.8%)
Indonesia
(5.8%)
South Africa
(5.0%)
China
(3.8%)
Belgium
(3.1%)
Turkey
(3.0%)
USA
(2.2%)
Pakista
n
(11.8%)
Egypt
(12.9%)
Turkey
(9.4%)
Portugal
(3.5%)
Vietnam
(2.7%)
Germany
(1.7%)
Belgium
(1.7%)
Netherlands
(0.8%)
Colombia
(0.8%)
China
(11.3%)
Cambodia
(5.3%)
Turkey
(5.1%)
Spain
(4.5%)
France
(4.4%)
Italy
(3.8%)
Lithuania
(1.9%)
German
y
(3.7%)
Turkey
(2.7%)
Lithuania
(2.1%)
Portugal
(1.3%)
Poland
(0.9%)
Pakistan
(0.9%)
Belgium
(0.8%)
France
(0.6%)
Korea
(9.3%)
Austria
(7.7%)
India
(8.1%)
Spain
(6.6%)
Germany
(6.6%)
Italy
(5.8%)
Spain
(6.0%)
Korea
(5.4%)
USA
(5.5%)
Poland
(3.4%)
Japan
(2.1%)
India
(2.8%)
Singapore
(1.9%)
Turkey
(2.6%)
Romania
(1.3%)
South Africa
(2.5%)
73089
0
73181
5
73181
6
73181
9
73182
2
73269
0
82032
0
82041
1
82055
scaffolding,
shutteri
Other
China
(23.6%)
Germany
(9.1%)
Korea
(5.8%)
Poland
(5.1%)
Italy
(4.1%)
Belgium
(3.7%)
USA
(3.5%)
Netherlands
(3.3%)
Spain
(3.3%)
Threaded
articles :-Other
screws
Threaded
articles :-Nuts
Threaded
articles :-Other
Nonthreaded
articles :-Other was
Other
Germany
(18.0%)
China
(14.5%)
Japan
(12.0%)
USA
(10.4%)
Italy
(8.1%)
France
(4.4%)
Korea
(2.9%)
Netherlands
(2.7%)
India
(2.2%)
Czech
Republic
(3.1%)
Switzerland
(2.1%)
China
(18.0%)
Germany
(15.9%)
Japan
(15.4%)
USA
(12.8%)
India
(6.1%)
France
(5.9%)
Italy
(3.2%)
Netherlands
(3.2%)
Korea
(3.2%)
Canada
(2.1%)
China
(21.5%)
Germany
(15.5%)
USA
(7.4%)
France
(5.4%)
Italy
(4.9%)
India
(4.0%)
Belgium
(3.6%)
Vietnam
(3.2%)
Spain
(2.5%)
China
(18.6%)
Germany
(17.1%)
Japan
(15.7%)
Switzerlan
d
(6.2%)
USA
(11.9%)
France
(4.1%)
Italy
(3.5%)
India
(3.1%)
UK
(2.4%)
Netherlands
(2.2%)
Belgium
(1.8%)
China
(15.7%)
Germany
(13.3%)
USA
(9.0%)
Italy
(7.8%)
France
(3.9%)
Korea
(3.6%)
Thailand
(3.4%)
Poland
(3.1%)
Austria
(2.8%)
Pliers
(including
cutting
pliers%),
Handoperated
spanners
and
wrenches
Other hand
China
(43.0%)
Germany
(17.9%)
USA
(9.9%)
Netherlan
ds
(2.6%)
Belgium
(2.6%)
Czech
Republic
(3.7%)
Sweden
(2.3%)
Switzerland
(2.3%)
Spain
(2.2%)
India
(2.1%)
Japan
(1.9%)
China
(34.1%)
India
(14.7%)
USA
(13.7%)
Germany
(13.4%)
Netherlan
ds
(2.2%)
Japan
(2.2%)
Italy
(1.9%)
France
(1.8%)
UK
(1.8%)
Belgium
(1.7%)
China
Germany
USA
France
Singapore
Austria
Italy
Switzerland
Spain
Israel
9
82057
0
tools
(including
glazier
Vices,
clamps and
the like
Other
engines
(24.2%)
(12.5%)
(11.9%)
(6.5%)
(4.4%)
(3.8%)
(3.8%)
(3.6%)
(2.4%)
(2.1%)
China%)
(21.2%)
USA
(18.1%)
India
(11.4%)
Singapore
(3.5%)
Italy
(3.5%)
Belgium
(2.7%)
Thailand
(2.0%)
Canada
(1.7%)
Japan
(1.6%)
USA
(23.4%)
Japan
(19.2%)
China
(6.6%)
France
(6.3%)
Italy
(6.0%)
Mexico
(5.3%)
UK
(3.1%)
Sweden
(2.7%)
Finland
(2.5%)
Korea
(8.0%)
Thailand
(6.5%)
Japan
(5.2%)
Singapore
(4.9%)
USA
(3.8%)
Netherlands
(1.9%)
Italy
(1.7%)
China
(5.3%)
France
(5.0%)
Belarus
(4.8%)
India
(4.8%)
Spain
(4.6%)
Canada
(4.3%)
Brazil
(3.2%)
84729
0
Other
China
(31.6%)
Germany
(13.5%)
85042
1
Liquid
dielectric
transforme
rs
Other
Mexico
(10.8%)
USA
(6.7%)
German
y
(13.4%)
German
y
(12.4%)
Hungar
y
(9.3%)
Turkey
(6.3%)
Germany
(22.3%)
Germany
(17.2%)
USA
(11.3%)
USA
(13.8%)
Italy
(10.6%)
China
(13.1%)
France
(7.7%)
Japan
(8.0%)
Japan
(7.1%)
Mexico
(6.4%)
UK
(4.6%)
Canada
(5.8%)
Austria
(4.4%)
Spain
(5.1%)
Belarus
(4.2%)
Belgium
(3.8%)
India
(4.1%)
Poland
(3.7%)
Brazil
(2.5%)
Korea
(3.1%)
Korea
(13.7%)
USA
(10.9%)
Italy
(6.6%)
France
(6.0%)
Japan
(6.0%)
Spain
(5.4%)
Mexico
(5.3%)
China
(4.6%)
Thailand
(3.0%)
China
(43.3%)
Netherlan
ds
(9.7%)
German
y
(9.2%)
German
y
(7.6%)
Cambodia
(4.9%)
Belgium
(3.7%)
Italy
(3.5%)
Spain
(2.5%)
Portugal
(2.4%)
Indonesia
(1.9%)
France
(1.9%)
China
(61.5%)
USA
(11.2%)
Italy
(5.9%)
Vietnam
(5.2%)
Netherlan
ds
(3.7%)
India
(3.1%)
Germany
(2.4%)
Belgium
(1.4%)
France
(0.8%)
Spain
(0.7%)
84089
0
87019
0
87088
0
87089
9
87120
0
87149
1
Suspension
shockabsorbers
Other parts
and
accessories
Bicycles
and other
cycles
(includin
Other
:-Frames and
forks, and
par
87149
4
87149
6
87149
9
95069
9
Other
:-Brakes,
including
coaster
Other
:-Pedals and
crank-gear,
an
Other
Malaysia
(18.3%)
Singapore
(18.2%)
China
(18.2%)
Japan
(18.1%)
Germany
(5.4%)
Italy
(4.1%)
Spain
(3.3%)
India
(2.4%)
UK
(1.8%)
Vietnam
(1.5%)
Singapore
(19.7%)
Malaysia
(19.3%)
China
(17.1%)
Japan
(15.7%)
Germany
(4.3%)
Netherlands
(4.1%)
France
(3.0%)
Italy
(3.0%)
India
(2.7%)
Spain
(1.7%)
China
(17.7%)
China
(37.7%)
Singapore
(17.7%)
USA
(9.6%)
Germany
(5.0%)
Italy
(4.0%)
India
(4.4%)
Czech
Republic
(3.2%)
France
(4.0%)
Netherlands
(3.0%)
Romania
(2.8%)
Spain
(2.1%)
Japan
Italy
Indonesia Netherlands
(13.9%)
(7.6%)
(5.3%)
(5.0%)
Other
German
Canada
France
Belgium
y
(4.6%)
(4.4%)
(4.1%)
(5.5%)
Source: We calculation based on the data collected from UN Comtrade (WITS)
4.6 Analysis Of Tariff Barriers Faced On Thrust Products By Punjab Exporters: With waves of global economic liberalization and
harmonized trade policy regime under World Trade Organization, applied tariff for merchandize trade has been reduced by
participating countries significantly however there still exists such tariff barriers particularly in underdeveloped and select developing
countries of the world. An analysis of top 80% exports of Punjab indicates that products such as bicycle parts-other (HS code 401199),
staple yarn dyed-3-thread or 4-thread twill (HS code 520932), other yarn containing 85 % or more by weight (HS code ),other yarn, of
polyester staple (550953), suits (textiles item) falling under HS code 610323,610520, 610590, 610910, 610990, 611020, 611030,
611120, 621490, 630190, 630260, 630299, 630492, other threaded items falling under HS code 731819, 731822, 732690 and hand tool
falling under HS code 820320, 820411 attract duty more than 5% which is considered higher as there exist other duties such as
Countervailing Duty, Value Added Tax (Special Addition Duty of Customs) and different cess and levies which makes product relatively
expensive in international markets. With most of the identified thrust markets (Table 4.4), India does not have free trade/ preferential
trade agreements except Japan1, South Korea2, Sri Lanka, Nepal3Thailand, Vietnam, , Malaysia, Indonesia, Singapore and Philippines4,.
1
With Japan, India has separate Comprehensive Economic Cooperation Agreement.
With South Korea also, India has Comprehensive Economic Cooperation Agreement
3
With Srilanka, India has Free Trade Agreement and other agreement SAFTA again cover Sri Lanka in addition to Nepal.
2
Exporters of thrust products from Punjab can leverage Certificate of Origin for availing duty preference or duty exemption subject to
fulfillment of rules of origin as mandated under signed agreements (refer footnote(s)) with these countries.
HS 6 digit
100630
220710
230400
290611
294110
294150
294190
294200
300390
392020
401150
401199
401320
520299
520511
520512
520513
520514
4
Table 4.6: Applied Average Tariff on Identified Products by Top 10 importers
Product Description
Average Applied
Tariff Rate5 (Top 10 Importer Countries)
Semi-milled or wholly milled rice,
Undenatured ethyl alcohol
Oil-cake and other solid residues,
Cyclanic, cyclenic or cycloterpenic
Penicillins and their derivatives w
Erythromycin and its derivatives; s
Other
Other organic compounds.
Other
Of polymers of propylene
Of a kind used on bicycles
Other
Of a kind used on bicycles
Other
Single yarn, of uncombed fibres :-Single yarn, of uncombed fibres :-Single yarn, of uncombed fibres :-Single yarn, of uncombed fibres :--
5.2
2.5
0.0
1.5
0.0
0.0
0.0
2.5
0.0
4.2
0.0
7.7
0.0
0.0
3.0
3.8
5.0
3.5
Countries such as Malaysia, Vietnam, Indonesia, Singapore, and Thailand are covered under India-Asean FTA. Additional India has FTA with Thailand and CECA with
Singapore.
5
Note: The data corresponds to the average applied tariff maintained by Top 10 importers in 2013. No information is available for 610510.
520521
520523
520524
520532
520544
520932
550130
550320
550330
550932
550953
610323
610520
610590
610910
610990
611020
611030
611120
621490
630190
630260
630299
630492
730791
730840
Single yarn, of combed fibres :-- M
Single yarn, of combed fibres :-- M
Single yarn, of combed fibres :-- M
Multiple (folded%) or cabled yarn, o
Multiple (folded%) or cabled yarn, o
Dyed :-- 3-thread or 4-thread twill
Acrylic or modacrylic
Of polyesters
Acrylic or modacrylic
Containing 85 % or more by weight o
Other yarn, of polyester staple fib
Suits :-- Of synthetic fibres
Of man-made fibres
Of other textile materials
Of cotton
Of other textile materials
Of cotton
Of man-made fibres
Of cotton
Of other textile materials
Other blankets and travelling rugs
Toilet linen and kitchen linen, of
Other :-- Of other textile material
Not knitted or crocheted,
Other :-- Flanges
Equipment for scaffolding, shutteri
2.5
4.2
3.0
3.0
2.0
7.3
2.9
3.7
3.3
8.3
8.1
7.5
11.4
13.0
8.3
7.0
5.4
8.4
6.3
5.7
7.8
14.6
8.4
6.3
2.7
4.0
730890
731815
731816
731819
731822
732690
820320
820411
820559
820570
840890
847290
850421
870190
870880
870899
871200
871491
871494
871496
871499
950699
Other
Threaded articles :-- Other screws
Threaded articles :-- Nuts
Threaded articles :-- Other
Non-threaded articles :-- Other
Other
Pliers (including cutting pliers%),
Hand-operated spanners and wrenches
Other hand tools (including glazier
Vices, clamps and the like
Other engines
Other
Liquid dielectric transformers :-Other
Suspension shock-absorbers
Other parts and accessories :-- Oth
Bicycles and other cycles (includin
Other :-- Frames and forks, and par
Other :-- Brakes, including coaster
Pedals and crank-gear, an
Other
Other
4.0
2.1
0.0
5.2
6.9
7.8
8.4
7.0
1.7
3.3
1.1
0.7
6.7
0.0
1.7
0.6
4.0
2.8
2.5
3.0
4.2
4.0
Source: We calculation based on TRAINS database accessed from WITS
4.7 Assessing Price Attractiveness of Top 80% Products from Punjab: In order to assess the price competiveness of Punjab thrust
products in international markets, nominal protection co-efficient analysis is carried out which will help us understand how the logistics
costs affect the competiveness of identified thrust products exported from Punjab in the international markets. Accordingly, NPC
analysis is carried out between the import prices (CIF value) of identified thrust products of key importers with that average export
price of (FOB) value of Indian exporters. The formula for the analysis is:
CIF Value of Punjab identified products in top 10 Importers
Nominal Protection Co-efficient:
FOB value of Punjab identified products for Indian exports plus 12% logistics costs
CIF value (import price) of top 10 importers of the world is also taken out and is tabled in appendix 4.3 indicating the average import
price of identified thrust exportable products from Punjab. Similarly; FOB value (export price) of Punjab identified thrust products is
taken out from all India average of export price (appendices 4.2) of same products. 12% logistics costs is added to FOB price of Punjab
identified thrust products in order to measure the price competitiveness of Punjab thrust products in international markets. Logistics
cost is the cost of transporting these goods from an Indian port to ports of identified key thrust markets. A ratio more than 1 (>1)
indicates that Punjab products are uncompetitive in key thrust markets due to high logistics costs and a ration less than 1 (<1) indicates
that Punjab identified products are competitive in international markets. Table 4.7 as under depicts the result of analysis and which
provides interesting results. Out of total entries of 660 (66 tariff sub-heading and 10 countries matrix), the data for NPC analysis is
available for only 431 tariff sub-heading. Market is found to be uncompetitive in 228 cases and found competitive in 403 cases of NPC
analysis of Punjab identified thrust products. In order to understand sector specific results, international markets are found to be
uncompetitive in majority of the cases for agricultural products and are found to be competitive for majority of engineering,
automobiles and hand tool products.
Product
Code (6
Digit)
100630
220710
Table 4.7: Nominal Protection Coefficient of India vis-à-vis Top 10 Importing Countries (2013)
Saudi Arabia
China
United States
South Africa
Malaysia
Japan
Benin
France
Yemen
Cote d'Ivoire
0.79
1.75
0.69
1.63
1.51
1.21
1.60
0.73
1.04
1.49
Competitive
Uncompetiti
ve
Competitive
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetitive
Competitive
Uncompetitive
Uncompetiti
ve
United States
Germany
Netherlands
Japan
United
Kingdom
Sweden
Italy
Jamaica
France
Belgium
230400
290611
294110
294150
294190
294200
1.18
0.90
0.96
1.18
1.00
0.90
0.98
0.90
1.06
0.99
Uncompetiti
ve
Competitive
Competitive
Uncompetiti
ve
Uncompetiti
ve
Competitive
Competitive
Competitive
Uncompetitive
Competitive
Netherlands
Indonesia
Vietnam
France
Germany
Thailand
Japan
Italy
Poland
South Korea
1.15
1.12
1.09
1.14
1.10
1.12
1.04
1.15
1.11
1.14
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetitive
Uncompetiti
ve
Uncompetitive
Uncompetiti
ve
China
United States
Singapore
Germany
Thailand
Indonesia
Brazil
Hong Kong
France
Japan
1.15
1.32
1.02
1.11
0.92
0.99
1.08
0.94
0.98
0.78
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Competitive
Competitive
Uncompetitive
Competitive
Competitive
Competitive
India
Italy
Austria
Belgium
United States
Netherlands
Thailand
Portugal
Spain
France
1.71
0.22
1.03
0.23
0.47
1.30
1.32
0.08
0.87
0.81
Uncompetiti
ve
Competitive
Uncompetiti
ve
Competitive
Competitive
Uncompetiti
ve
Uncompetitive
Competitive
Competitive
Competitive
Japan
India
Italy
United
Kingdom
United States
Singapore
Australia
Mexico
Belgium
Croatia
0.21
2.00
0.17
0.40
0.87
0.23
0.25
1.01
0.10
4.45
Competitive
Uncompetiti
ve
Competitive
Competitive
Competitive
Competitive
Competitive
Uncompetiti
ve
Competitive
Uncompetiti
ve
Italy
Germany
France
United States
Switzerland
Belgium
China
India
Japan
Netherlands
0.41
0.15
0.20
1.05
0.17
0.25
0.14
1.64
0.35
0.52
Competitive
Competitive
Competitive
Uncompetiti
ve
Competitive
Competitive
Competitive
Uncompetiti
ve
Competitive
Competitive
India
Jordan
United States
Saudi Arabia
Japan
Germany
Vietnam
Italy
France
Netherlands
300390
392020
401150
401199
401320
1.72
0.55
5.66
17.12
0.05
5.48
Uncompetiti
ve
Competitive
Uncompetiti
ve
Uncompetiti
ve
Competitive
Uncompetiti
ve
United States
Belgium
Ireland
Italy
Spain
Tunisia
0.27
0.08
0.14
0.11
1.04
Competitive
Competitive
Competitive
Competitive
Germany
United States
China
0.67
0.72
Competitive
Quantity Not
Found
2.03
2.95
17.20
Uncompetiti
ve
Uncompetitive
Uncompetiti
ve
China
Netherlands
Mexico
Japan
0.46
0.07
0.91
0.99
0.30
Uncompetiti
ve
Competitive
Competitive
Competitive
Competitive
Competitive
Belgium
France
United
Kingdom
Italy
Poland
Mexico
Netherlands
0.55
0.73
0.71
0.77
0.90
0.84
0.89
0.87
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Germany
United States
Italy
Netherlands
France
Japan
Brazil
Mexico
United
Kingdom
Spain
0.59
0.37
0.79
0.46
0.52
0.59
1.30
1.28
0.18
0.65
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Uncompetitive
Uncompetiti
ve
Competitive
Competitive
United States
Australia
Russian
Federation
Canada
Chile
Indonesia
Brazil
South Africa
China
Colombia
4.14
0.16
0.53
0.85
0.21
Quantity Not
Found
5.47
0.12
0.13
0.57
Uncompetiti
ve
Competitive
Competitive
Competitive
Competitive
Uncompetitive
Competitive
Competitive
Competitive
United States
Germany
Brazil
France
Mexico
Japan
Italy
Netherlands
Spain
Poland
0.88
1.02
1.50
0.93
1.56
1.02
1.12
0.90
0.84
1.15
Competitive
Uncompetiti
Uncompetiti
Competitive
Uncompetiti
Uncompetiti
Uncompetitive
Competitive
Competitive
Uncompetiti
520299
520511
520512
520513
520514
520521
ve
ve
ve
ve
China
Germany
Italy
1.31
1.03
Uncompetiti
ve
ve
Belgium
France
Hong Kong
Netherlands
Thailand
Switzerland
United States
0.98
1.03
1.01
1.54
0.78
1.12
0.72
1.05
Uncompetiti
ve
Competitive
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Competitive
Uncompetiti
ve
Competitive
Uncompetiti
ve
China
Hong Kong
Dominican
Republic
Malaysia
Egypt, Arab
Rep.
Turkey
Germany
El Salvador
Pakistan
Sri Lanka
1.43
1.34
1.22
0.91
1.47
1.62
1.31
1.33
0.89
1.22
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Competitive
Uncompetiti
ve
Uncompetiti
ve
Uncompetitive
Uncompetiti
ve
Competitive
Uncompetiti
ve
China
Turkey
Hong Kong
Mexico
Russian
Federation
South Korea
El Salvador
Guatemala
Japan
Portugal
1.08
1.06
1.00
1.13
1.45
0.98
1.03
0.83
0.96
0.97
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Competitive
Uncompetitive
Competitive
Competitive
Competitive
China
El Salvador
South Korea
Turkey
Hong Kong
Guatemala
Portugal
Spain
Peru
Colombia
0.98
1.02
1.01
1.01
1.12
0.92
1.05
1.05
1.10
0.97
Competitive
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Competitive
Uncompetitive
Uncompetiti
ve
Uncompetitive
Competitive
China
Hong Kong
Russian
Federation
Japan
South Korea
Indonesia
Portugal
Turkey
Sri Lanka
Italy
1.12
1.12
1.46
1.01
0.82
0.69
0.92
0.82
1.00
0.85
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Competitive
Competitive
Competitive
Competitive
Uncompetitive
Competitive
Sri Lanka
Hong Kong
Malaysia
Mauritius
Egypt, Arab
Rep.
China
Israel
Philippines
Vietnam
Guatemala
520523
520524
520532
520544
520932
550130
0.94
0.61
1.02
0.77
1.04
1.08
1.35
1.04
0.94
0.90
Competitive
Competitive
Uncompetiti
ve
Competitive
Uncompetiti
ve
Uncompetiti
ve
Uncompetitive
Uncompetiti
ve
Competitive
Competitive
China
South Korea
Hong Kong
Portugal
Guatemala
Italy
Peru
Vietnam
Turkey
Indonesia
1.09
0.98
1.00
1.01
0.88
0.84
1.10
0.97
1.05
1.00
Uncompetiti
ve
Competitive
Uncompetiti
ve
Uncompetiti
ve
Competitive
Competitive
Uncompetitive
Competitive
Uncompetitive
Uncompetiti
ve
China
Hong Kong
South Korea
Turkey
Portugal
Japan
Italy
France
Indonesia
Germany
1.11
1.06
0.96
0.98
0.98
0.83
0.84
0.61
1.28
0.88
Uncompetiti
ve
Uncompetiti
ve
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Uncompetitive
Competitive
Hong Kong
China
Portugal
Turkey
South Korea
Germany
Russian
Federation
Belgium
Italy
Spain
0.99
1.27
1.06
1.12
1.11
0.85
0.99
0.97
0.90
0.88
Competitive
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Competitive
Competitive
Competitive
Competitive
Competitive
Hong Kong
Italy
China
Mauritius
Portugal
Japan
Turkey
Croatia
South Korea
France
1.02
0.62
1.20
1.18
0.91
0.93
0.82
113.21
1.02
0.62
Uncompetiti
ve
Competitive
Uncompetiti
ve
Uncompetiti
ve
Competitive
Competitive
Competitive
Uncompetiti
ve
Uncompetitive
Competitive
Hong Kong
Mexico
Indonesia
Tunisia
Morocco
Germany
Sri Lanka
China
Vietnam
Romania
2.20
1.11
1.46
0.99
1.49
1.27
1.11
1.34
1.11
1.00
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Competitive
Uncompetiti
ve
Uncompetiti
ve
Uncompetitive
Uncompetiti
ve
Uncompetitive
Uncompetiti
ve
China
Turkey
Indonesia
United States
Romania
Italy
Kenya
Pakistan
India
Egypt, Arab
Rep.
550320
550330
550932
550953
610323
1.05
0.99
0.97
0.59
0.90
0.96
0.49
1.17
0.97
1.11
Uncompetiti
ve
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Uncompetiti
ve
Competitive
Uncompetiti
ve
United States
Vietnam
Germany
China
Indonesia
Turkey
Russian
Federation
Italy
Spain
Mexico
1.04
0.96
0.98
0.94
1.07
1.02
1.07
0.96
0.95
0.91
Uncompetiti
ve
Competitive
Competitive
Competitive
Uncompetiti
ve
Uncompetiti
ve
Uncompetitive
Competitive
Competitive
Competitive
China
Turkey
United States
India
Indonesia
Spain
Italy
Pakistan
Romania
Nepal
0.82
1.05
0.65
1.10
1.04
0.65
0.65
1.16
0.97
1.88
Competitive
Uncompetiti
ve
Competitive
Uncompetiti
ve
Uncompetiti
ve
Competitive
Competitive
Uncompetiti
ve
Competitive
Uncompetiti
ve
South Korea
Hong Kong
France
Russian
Federation
Poland
Argentina
Ethiopia(exclud
es Eritrea)
Italy
United States
Austria
1.45
1.14
0.65
1.31
0.94
0.90
2.49
0.76
0.96
0.54
Uncompetiti
ve
Uncompetiti
ve
Competitive
Uncompetiti
ve
Competitive
Competitive
Uncompetitive
Competitive
Competitive
Competitive
South Korea
Turkey
El Salvador
Portugal
Colombia
Egypt, Arab
Rep.
Japan
China
Spain
United States
1.11
1.24
1.18
1.02
1.10
1.48
0.89
1.13
1.00
0.98
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Competitive
Uncompetiti
ve
Uncompetitive
Competitive
Japan
Italy
Israel
Belgium
Russian
Federation
Spain
Kuwait
China
Brazil
Germany
0.84
1.11
1.61
1.05
0.40
2.43
0.33
0.70
0.86
0.84
610520
610590
610910
610990
611020
611030
Competitive
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Competitive
Uncompetiti
ve
Competitive
Competitive
Competitive
Competitive
United States
Japan
Germany
Canada
Australia
Hong Kong
Brazil
France
United
Kingdom
Belgium
1403.40
924.41
924.41
1072.61
1594.60
1103.37
2567.25
755.96
492.82
1028.43
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetitive
Uncompetiti
ve
Uncompetitive
Uncompetiti
ve
France
Portugal
Singapore
United States
South Africa
Hong Kong
Malaysia
China
Germany
Italy
0.34
0.62
1.16
0.63
2.38
0.37
1.08
0.06
0.62
0.35
Competitive
Competitive
Uncompetiti
ve
Competitive
Uncompetiti
ve
Competitive
Uncompetitive
Competitive
Competitive
Competitive
United States
Germany
France
Japan
Spain
Italy
Netherlands
Belgium
Hong Kong
Canada
1.83
0.66
0.95
0.66
1.13
0.89
0.88
1.14
0.84
1.16
Uncompetiti
ve
Competitive
Competitive
Competitive
Uncompetiti
ve
Competitive
Competitive
Uncompetiti
ve
Competitive
Uncompetiti
ve
Germany
United States
Japan
France
Spain
Belgium
Italy
Netherlands
Hong Kong
Canada
0.66
1.88
0.66
0.72
1.02
0.72
0.71
0.73
1.14
1.01
Competitive
Uncompetiti
ve
Competitive
Competitive
Uncompetiti
ve
Competitive
Competitive
Competitive
Uncompetitive
Uncompetiti
ve
United States
Germany
Hong Kong
Japan
France
Italy
Spain
Netherlands
Canada
Belgium
1.90
0.71
1.21
0.71
0.82
0.74
1.05
0.74
1.21
0.77
Uncompetiti
ve
Competitive
Uncompetiti
ve
Competitive
Competitive
Competitive
Uncompetitive
Competitive
Uncompetitive
Competitive
United States
Japan
Germany
France
Hong Kong
Spain
Italy
Canada
Belgium
Russian
Federation
611120
621490
630190
630260
630299
1.60
0.73
0.73
0.96
1.32
1.09
0.89
1.11
0.94
0.91
Uncompetiti
ve
Competitive
Competitive
Competitive
Uncompetiti
ve
Uncompetiti
ve
Competitive
Uncompetiti
ve
Competitive
Competitive
United States
France
Germany
Italy
Hong Kong
Spain
Japan
Canada
Saudi Arabia
Netherlands
0.23
0.19
0.20
0.20
0.23
0.32
0.16
0.17
1.09
0.28
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Uncompetitive
Competitive
Germany
France
Japan
United States
Spain
Italy
United
Kingdom
Belgium
Netherlands
Switzerland
0.78
0.72
0.78
1.20
0.88
0.94
0.27
0.82
0.85
0.78
Competitive
Competitive
Competitive
Uncompetiti
ve
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Saudi Arabia
Algeria
Jordan
India
Vietnam
United States
Qatar
Germany
Yemen
Netherlands
4.87
6.54
2.65
Quantity Not
Found
Quantity Not
Found
1.77
3.05
1.64
6.50
1.75
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetitive
Uncompetiti
ve
Uncompetitive
Uncompetiti
ve
United States
Japan
Germany
France
Canada
Italy
Russian
Federation
Australia
Spain
Netherlands
0.76
0.61
0.58
0.58
0.82
0.65
0.98
0.76
0.65
0.86
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
France
Germany
Italy
Panama
United States
Russian
Federation
Singapore
Algeria
Spain
Belgium
0.33
0.50
0.25
0.89
0.34
1.07
0.56
3.39
0.47
0.49
Competitive
Competitive
Competitive
Competitive
Competitive
Uncompetiti
ve
Competitive
Uncompetiti
ve
Competitive
Competitive
630492
730791
730840
730890
731815
731816
United States
Germany
Japan
France
India
Canada
Italy
Australia
Netherlands
Sweden
2.11
1.79
1.56
1.99
1.56
1.68
2.00
2.50
3.10
1.58
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetitive
Uncompetiti
ve
Uncompetitive
Uncompetiti
ve
United States
South Korea
Germany
Canada
Saudi Arabia
Japan
Singapore
Mexico
Thailand
Malaysia
0.93
1.10
0.87
0.71
0.52
1.14
0.70
0.57
0.57
1.02
Competitive
Uncompetiti
ve
Competitive
Competitive
Competitive
Uncompetiti
ve
Competitive
Competitive
Competitive
Uncompetiti
ve
Singapore
Germany
United States
Saudi Arabia
Switzerland
France
Japan
Canada
Austria
Russian
Federation
0.50
0.76
0.72
0.78
0.51
0.66
0.82
0.69
0.68
0.69
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Germany
Australia
United States
South Korea
Japan
Saudi Arabia
France
Norway
Russian
Federation
Switzerland
0.76
0.50
0.70
0.99
1.09
1.01
0.97
0.57
0.66
0.66
Competitive
Competitive
Competitive
Competitive
Uncompetiti
ve
Uncompetiti
ve
Competitive
Competitive
Competitive
Competitive
United States
Germany
China
Mexico
Canada
France
Thailand
Brazil
Netherlands
Japan
0.86
0.64
0.30
3.33
3.50
0.54
0.43
0.47
0.66
0.89
Competitive
Competitive
Competitive
Uncompetiti
ve
Uncompetiti
ve
Competitive
Competitive
Competitive
Competitive
Competitive
United States
China
Germany
Mexico
Canada
Japan
France
Thailand
Brazil
Netherlands
1.82
0.64
1.47
27.26
6.32
1.15
1.05
0.87
1.03
2.06
Uncompetiti
ve
Competitive
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetitive
Competitive
Uncompetitive
Uncompetiti
ve
731819
731822
732690
820320
820411
820559
Germany
France
Spain
United States
Russian
Federation
Belgium
Italy
China
Netherlands
Czech
Republic
0.28
0.43
0.31
0.29
0.88
0.61
0.42
0.11
0.50
0.36
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
United States
China
Mexico
Germany
Thailand
Canada
Vietnam
Indonesia
Saudi Arabia
Brazil
0.54
0.10
0.93
0.27
0.15
0.80
Quantity Not
Found
0.16
0.21
0.28
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
United States
Germany
Mexico
Thailand
South Korea
France
China
Japan
Russian
Federation
Egypt, Arab
Rep.
0.91
1.05
20.51
0.41
0.93
0.95
0.35
1.34
0.55
0.35
Competitive
Uncompetiti
ve
Uncompetiti
ve
Competitive
Competitive
Competitive
Competitive
Uncompetiti
ve
Competitive
Competitive
United States
Germany
France
Canada
Netherlands
Belgium
Mexico
Russian
Federation
Austria
Italy
0.20
0.22
0.22
0.20
0.21
0.22
0.20
0.40
0.14
0.22
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
United States
Germany
Russian
Federation
Canada
France
China
Japan
Mexico
Netherlands
Italy
0.31
0.45
0.79
0.31
0.32
0.40
0.38
0.68
0.28
0.49
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
United States
Germany
France
Canada
Russian
Federation
Singapore
Austria
Switzerland
Netherlands
Denmark
Quantity Not
Found
0.50
0.43
Quantity Not
Found
0.75
Quantity Not
Found
0.28
0.15
0.55
0.19
820570
Competitive
Competitive
United States
Russian
Federation
Canada
Thailand
Germany
Quantity Not
Found
0.48
Quantity Not
Found
0.16
0.57
Competitive
Competitive
Competitive
840890
847290
850421
870190
870880
Competitive
Competitive
Competitive
Competitive
Competitive
Singapore
Australia
Japan
France
Belgium
Quantity Not
Found
0.72
0.67
0.74
0.66
Competitive
Competitive
Competitive
Competitive
United States
China
Germany
France
South Korea
Italy
Brazil
Belgium
Canada
Turkey
0.31
0.16
Quantity Not
Found
0.26
Quantity Not
Found
0.27
0.20
0.11
0.16
0.25
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
United States
Hong Kong
Japan
Russian
Federation
Singapore
Germany
China
France
India
Turkey
0.15
0.07
Quantity Not
Found
0.12
0.09
Quantity Not
Found
0.01
0.01
0.02
0.0005
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
United States
Russian
Federation
Algeria
Germany
United
Kingdom
France
Saudi Arabia
Canada
Japan
Mexico
0.13
0.05
0.18
0.03
0.10
0.48
0.03
0.11
0.03
567.07
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Uncompetiti
ve
United States
France
Canada
Germany
United
Kingdom
Belgium
Poland
Italy
Australia
Spain
0.53
0.31
0.34
0.42
0.30
0.48
0.32
0.45
0.39
0.35
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
United States
Canada
Germany
Mexico
Russian
Federation
China
United
Kingdom
Belgium
Poland
France
Competitive
870899
871200
871491
871494
871496
871499
0.59
0.58
0.81
0.58
0.72
0.72
0.76
0.78
0.78
0.90
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
United States
Spain
Germany
Mexico
France
Canada
United
Kingdom
China
Italy
Thailand
0.55
1.31
0.75
0.47
0.75
0.50
0.76
0.49
0.65
0.70
Competitive
Uncompetiti
ve
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
United States
Japan
Germany
Netherlands
France
Belgium
Australia
Spain
Canada
Switzerland
0.48
0.43
Quantity Not
Found
0.20
0.29
0.16
0.27
0.19
0.26
0.08
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Germany
United States
Hong Kong
Netherlands
Italy
France
Japan
Spain
Portugal
Russian
Federation
3.33
1.96
4.48
3.08
9.07
4.07
3.96
6.74
9.05
24.94
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetitive
Uncompetiti
ve
Uncompetitive
Uncompetiti
ve
Singapore
Germany
China
Netherlands
United States
Italy
Brazil
France
Poland
Japan
Quantity Not
Found
0.07
0.08
0.07
0.05
0.16
0.54
0.10
0.15
0.13
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Singapore
Germany
United States
Netherlands
China
Italy
Spain
France
Brazil
Japan
Quantity Not
Found
0.05
0.03
0.09
0.12
0.12
0.08
0.09
0.39
0.09
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Netherlands
Singapore
China
France
United States
Indonesia
Italy
Spain
Belgium
Germany
950699
0.09
0.16
Competitive
Competitive
United States
Canada
Quantity Not
Found
Quantity Not
Found
Quantity Not
Found
0.13
0.09
0.07
0.61
0.13
0.16
0.08
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
Competitive
France
Germany
Japan
Belgium
Australia
Netherlands
Russian
Federation
Switzerland
Quantity Not
Found
Quantity Not
Found
Quantity Not
Found
Quantity Not
Found
Quantity Not
Found
Quantity Not
Found
11.55
(Uncompetitiv
e)
Quantity Not
Found
A Study on Punjab Export Potential and Strategy
CHAPTER 5:
CHALLENGES FOR EXPORTS FROM PUNJAB
In order to corroborate the secondary finding as analysed in Chapters 3 & 4 respectively
for identification of thrust products and thrust markets for Punjab exporters, it is
important to understand the infrastructural, operational and regulatory problems they
face while exporting their goods in international markets. Accordingly, a structured
questionnaire (Appendix 5.1) is prepared so as to find out the responses and feedback
of associated stakeholders i.e. exporters of different products of Punjab and associated
export promotion agencies. Total of around 1000 exporters1 were contacted and there
feedback was sought on various challenges faced by them while exporting the goods
from Punjab. A statistical analysis of exportable products by assessing the supply side
capabilities, demand side capacities and revealed competitive advantages of Punjab
export basket indicates that exports from several important sectors such as beverages,
spirits and vinegar, residues & waste from the food industry, organic chemicals, rubber
and articles, cotton, man-made staple fibres, art of apparel & clothing access, knitted or
crocheted, other made up textile articles, articles of iron or steel, tool, implement,
cutlery, spoon, nuclear reactors, boilers, vehicles for railway /tramway and rollingstock etc are competitive in international markets. Similarly, analysis of thrust markets
also provides scope for expansion and diversification of these sectors. Primary survey
was aimed at finding out the main obstacles and challenges that hinders the growth and
expansion of exports from Punjab. One of the most important feedbacks received from
industrialist and exporters is that they find it tough to expand their business in Punjab
as land prices are very high and they are looking for states which offer low costs land.
As land prices are high, costs of registration of land also costs them more vis-a-vis other
states as circle rates (fixed by revenue department) are high. An excise duty exempt
state(s) such as Himachal Pradesh and Uttarakhand were their main preferences;
however, some exporters particularly from engineering sector indicated that they
prefer coastal states such as Orissa, Andhra Pradesh and Maharashtra as more
competitive due to real-time, abundant and low cost availability of their key inputs for
such exportable products. It also reduces their inward as well as outward shipment
costs at the time of procurement of key inputs and at the time of exports. In order to
understand the challenges for growth, expansion and diversification of export sector
from Punjab, the challenges faced by exporters are structured into three broad
categories these are infrastructural, operational and regulatory.
Research Division, IIFT acknowledges its thanks to FIEO, EEPC, Textiles EPC, Wool & Wool Products
EPC, Leather EPC, Handicrafts EPC, Chemical & Allied products EPC, Sport Goods EPC for their support for
conduct of primary questionnaire. IIFT also extends thanks to PSIEC for their support and involvement in
collection of data in timely manner.
1
A Study on Punjab Export Potential and Strategy
Figure 5.1: Challenges of Punjab Exporters
Infrastructural Challanges
Operational Challanges
•Railways Network for External
Trade
•Road Network for External
Trade
•International Airports for
External Trade
•Availability, Affordability and
Quality of Power Supplies
•Dry ports and Warehousing
Infrastructure for External
Trade
•Losing Opportunity of
Border Trade with Pakistan
•Rising Logistics Cost
•Issues of Market Access
•Issues of Product
Compliance
•Higher Cost of Financing of
Export Operations
•Lack of Testing & Inspection
Facilities
•Competition From Low cost
Chinese Products
•Migratory Labour
Regulatory Challanges
• Challanges for Starting a
Business
• Red-Tape in Dealing with
Construction Permits
•Issues for Registering
Property
•Prevailing Tax Regime &
System
5.1 INFRASTRUCTURAL CHALLENGES FOR PUNJAB EXPORTERS: There is a general
perception in minds of exporters that Punjab is disadvantageously located at western
border and is not that attractive for future expansion and diversification in comparison
to the states of peninsular of India. State needs to have better infrastructure especially
that of roads, rail, airports and power as improvements in these will have direct impact
in reduction of transport costs for exports and imports. In fact, state needs to address
the problems associated with infrastructure for external trade with greater enthusiasm
as large presence of small scale units in Punjab necessitates the demand for improved
and developed infrastructural support services.
Even though agriculture contributes far less in State GDP, it is at centre of state
economic planning as more than 65 % population is directly dependent for agriculture
and acquiring fertile land from Punjab farmer will be a challenge for any government. In
fact, this makes industrial investment in Punjab relatively uncompetitive. State should
acquire unused land, if not possible, then preferably unfertile but not at logistically
disadvantageous locations and enunciate a transparent policy of making it available for
industrialization expansion in key sectors having export potential. With present
stringent Land Acquisition Bill, 2012, it will be a challenge for any state, but it can be a
facilitator in the process of “acquiring” land by private developers. In terms of physical
& virtual infrastructure, Punjab seems to be a better than most of the states of India, but
this impression seems deceptive when examined at interaction with Punjab exporters.
The major challenges in key areas of infrastructure in Punjab are discussed as under:
A Study on Punjab Export Potential and Strategy
a.
Railways Network for External Trade: Punjab has approx. 3,700 kilometres of
railway track (Table 5.2) and is well connected to major maritime ports of the
country. Being on western front and exposed to recurrent tensions with
Pakistan, there has been special attention of Ministry of Railways to ensure last
mile connectivity to key town of Punjab. Almost 93 % of total railway network is
under broad gauge but unfortunately there has not been any noteworthy
extension of the track network in recent years except the proposed freight
corridors which will connect Punjab exporters to two important maritime ports
in Western and Eastern border.
Table 5.2-Railway Network (Route Kilometres) in Punjab
(As on 31.03.2013)
State
Punjab
India
Route Kilometres
3726
65000
Source: www.punjabstat.com
Punjab exporters has expressed their deep interest and enthusiasm as proposed
freight corridors will not only provide outward export clearance at faster speed
and lower cost but ensure timely and cost effective supplies of key inputs used in
exportable material which will make their products even more competitive in
global markets. Exporters want the Punjab government to give highest priority in
taking up the matters related to delays in start of work at both eastern as well
western freight corridor so as to minimize the disadvantages related to
locational disadvantage for Punjab exporters. During interaction with exporters,
following are some of the challenges expressed by Punjab exporters for railway
services.
i.
ii.
iii.
iv.
v.
b.
Inadequate supply of railway rakes which affect their timely
shipments to various destinations.
Traditional and inadequate storage space at railway stations
Inordinate delay in transportation of loaded railway rakes/ stuffed in
containers to gateway ports for subsequent shipment causing delays.
Labour union at godowns, railway stations, warehouses and ports are
dictating their terms & condition, thus affecting stevedoring
operations.
Lower use of material handling equipments at railway stations,
godowns thus causing delays and transport hazards to goods.
Road Network for External Trade: Total road network for state of Punjab
seems impressive at more 84193 Kms (Appendix 5.5) however it is not adequate
for roads (highways) needed for heavy movements for externally traded cargo
from key industrial clusters of Punjab. The total lengths of national highways in
Punjab is 2136 km. (Table 5.3) and conditions of these roads in better if
A Study on Punjab Export Potential and Strategy
compared with other parts of the country. Table as under lists the major
highways and total highway network of Punjab.
Table 5.3: Length of National Highways in Punjab(As on 24.07.2014)
State
National Highway Number
Punjab
Total
Length
(In Km)
1, 1A, 10, 15, 20, 21, 22, 64, 70, 71, 72, 95, 2136.15
103
A
New,
503 Ext. New , 703 New 703A New & 754
New
Source: Lok Sabha Unstarred Question No. 2218, dated on 24.07.2014.
Exporters has requested for expansion, lane-extension (widening) and
improvement in quality of existing roads. An analysis of highways of Punjab
corroborates the fact that major highways are yet to be widened into four lanes
and six lanes which will improve the speed of plying heavy loads container
trucks, ensure fuel efficiency and above all reduce time of transport for both
imports and exports. Around 60% of these national highways are still two lanes
and remaining four lanes. Policy makers of Punjab should take necessary steps to
eliminate the bottlenecks that exists in widening of national highways in Punjab.
Following are the national highways where problems exists and bottlenecks’
needs to be addressed for improving the quality roads for external trade.
Table 5.4: National Highways Which Will Improve Connectivity For External
Trade






Widening of Pathankot-Jammu Section of NH-1A,
Widening of Mukerian-Pathankot Section of NH-1A,
Widening of Bhogpur-Mukerian Section of NH-1A
Widening of Pathankot-Amritsar section of NH-15
Widening of Ludhiana Talwandi section of NH-95
Widening of Panipat-Jalandhar section of NH-1
Note: National Highway Authority has already started process for widening of these roads and state
government should address challenges in acquisition of land and critical gaps in funding of these projects
for timely completion
Exporters realise that existing road infrastructure of Punjab is certainly not
adequate for realising the innate potential of Punjab industry and strengthening,
widening and extending the road networks especially that of national highways
will help complement the construction of the dedicated freight corridor by the
railways and improve the inter-state network of the national highways. This will
also enhance the investment attractiveness of Punjab, which to an extent will
A Study on Punjab Export Potential and Strategy
neutralize the locational disadvantage and help Punjab exporters to tap the
global markets in more effective manner.
c.
International Airports for External Trade: In today’s globalized world, the
needs of airborne trade cannot be underestimated as there are certain kinds of
cargo which can be traded only through air transports due to their inherent
nature, criticality, minimizing inventory and working capital employed. There
has been a healthy growth of air cargo traffic from India and Punjab contributes
handsomely (Table 5.5) in this air cargo traffic. As Punjab has only one
international airport, having limited access to prime international destinations,
exporters of Punjab are in a disadvantageous position as they have to route their
airborne cargo through Delhi International Airport. Modal choice pattern for
Punjab exporters is found as under:
Table 5.5: Modal Choice Pattern of Punjab Exporters & Associated Challenges
Area of Exports
% of Air Transport as
Exit Airport
Modal Choice
Textiles, Made-ups & Allied
10-20%
New Delhi
Articles
Engineering Goods
5-7%
New Delhi/ Amritsar
Sports Goods
Below 10%
New Delhi
Leather & Allied Articles
15-20%
New Delhi / Amritsar
Amritsar International Airport also lacks in some of the key facilities needed for
cargo handling for international shipments (Appendix 5.6) and as a result
exporters prefer to move their cargo via Delhi International Airport. This is
corroborated by the fact that Amritsar International Airport has total covered
areas of 2256 sq. m. of air cargo terminal and annual holding capacity is 60,833;
however only 70% of air cargo areas and below 50% of holding capacity is
actually utilized in 2013-142. However, up-gradation of Chandigarh International
Airport has provided access to international markets and increased domestic
connectivity to exporters of adjoining district including exporters from state of
Himachal Pradesh. As exit of goods from Delhi result in higher transport and
logistics costs, exporters has requested for creation of dedicated “Air Customs
Station” in line with existing dry ports such as Inland Container Deport and
Container Freight Stations. As exporters, during the interaction disclosed that
this will result in reduction of time in custom clearance, logistics costs, and
documentation and help reduced pilferage, thefts and other losses.
d.
Availability, Affordability and Quality of Power Supplies: Punjab exporters
has complained about the power supplies to state industry. Our analysis
2International
Airport Authority of India
A Study on Punjab Export Potential and Strategy
indicates that as for as availability of power services in Punjab is concerned, it is
adequately available at the moment, rather Punjab is better placed in availability
of power supplies vis-à-vis competing other states of India. Table 5.6 as under
depict the actual power supply in terms of energy requirements vis-a-vis
availability in Chandigarh, Punjab and Northern States of India and it is clear
from the table that power is adequately available for Punjab exporters.
Table 5.6: Actual Power Supply Position In Terms Of Energy Requirement Vis-ÀVis Energy Availability Of Various States/ Systems During The Year 2013-14
Region / State / System
Chandigarh
Punjab
Northern Region
All India
Requirement
(MU)
1,574
47,821
309,463
1,002,257
Availability
(MU)
1,574
47,084
290,880
959,829
Surplus(+) / Deficit(-)
(MU)
(%)
0
0.0
-737
-1.5
-18,583
-6.0
-42,428
-4.2
Source: Central Electricity Authority 2014
Further diagnosis of the problem elucidates that power services for commercial
as well as for industrial sector are affordable and in fact are lesser priced than all
India average. Power tariff in Punjab are affordable and are lower for all sectors
except domestic sector where they are a little higher than all India average.
Table 5.7: Consumer Category-wise Average Power Tariff in Punjab (2013-2014)
State
Punjab
India
Domestic
424.23
407.84
Commercial
616.84
764.00
(In Paise/Kwh)
Agri./
Indusirrig.
trial
0.00
586.68
183.06 625.89
Rly.
Tractn.
613.79
663.85
Outside
State
43.25
325.01
Overall
Average
367.03
479.84
Note: Figures are Annual plan Projection.
Source: Power & Energy Division, Planning Commission, Govt. of India. (ON494)
During the interaction with exporters, it is found that it is the quality of power
services that is a major challenge as sudden power fluctuation, lower power
voltage and power line faults are the major areas of concerns for Punjab
exporters.
e.
Dry ports and Warehousing Infrastructure for External Trade: Even though,
Punjab has robust warehousing infrastructure which comprises of around 115
warehouses under the administrative control of Punjab State Warehousing
Corporation (PSWC) with a total storage capacity of 63.38 lakh MTs, but
exporters complained that they face operational problems in booking of storage
space and fumigation of cargo. In addition to this, Central Warehousing
Corporation has strong warehouse network of 26 warehouses which are utilized
A Study on Punjab Export Potential and Strategy
at 100% efficiency. PSWC also maintains a network of 8 dry ports out of total 10
dry ports based in Punjab. These are:
S.No
1
2
3
4
5
6
7.
8
Table 5.8: Existing Infrastructure of Dry Ports in Punjab
Name of CFS/ICD/LCS
Ownership
Districts
Chhehretta
PSWC
Amritsar
Dappar
PSWC
SAS Nagar
Jullundhar
PSWC
Jullundhar
Ludhiana
PSWC
Ludhiana
Bathinda
PSWC
Bathinda
Air Cargo Complex-Rajasansi
Amritsar
Amritsar Railway Station
Amritsar
Attari -Amritsar
Amritsar
Source: PSWC, CWC, Department of Commerce, GOI
Following are specific problems expressed by Punjab exporters while dealing
with these warehouses and dry ports in Punjab.
i.
ii.
iii.
iv.
Custom Official always give priority to Public warehouses for booking
the bonded cargo even if exporter can avail the same area of space
from private warehouse at comparatively lower cost and associated
documentation.
It takes time to process and submit the “space certificate” in certain
cases especially when import shipments of key inputs, catalysts and
ingredients are needed for production of exportable goods.
There are cases of pilferage and custom charge duty for these goods
even if the theft, pilferage, loss have occurred in the bonded
warehouse area.
Procedure for inspection, sorting, grading, cleaning, stuffing and destuffing of bonded warehouses cargo needs to be simplified.
5.2 OPERATIONAL CHALLENGES FOR PUNJAB EXPORTERS: One of the key
challenges for Punjab exporters is poor operational environment of business as it
impacts their strengths in key areas of exports and render available economic
opportunities untapped. Punjab industrial environment has been affected by the fiscal
concessions granted by the Government of India to the neighbouring hill states as it has
led to a movement of industrial units away from Punjab to these states, for example, to
shifting of textiles and hand tool industry to neighbouring Himachal Pradesh and
Jammu region of J&K. State industry suffers from problem of labour as locals are either
economically well-off or “self-complacent” with what they have and as a result industry
has to depend on migratory labour from Uttar Pradesh, Bihar and West Bengal. If, state
economic resources are already under crunch, there is no need to announce repeatedly
various industrial packages, subsidies and sops as it leads to lack of trust and confidence
among prospective investors. Due to vitiating political &diplomatic relations with
A Study on Punjab Export Potential and Strategy
Pakistan, the opportunity of border trade still remained untapped and euphoria created
regarding this without significant progress on transparent, open and stable trade
regime has affected the expansion, diversification and other business plans of Punjab
exporters. Various operational problems that exporters of Punjab face are discussed as
under:
a. Losing Opportunity of Border Trade with Pakistan: Exporters of Punjab
especially that of engineering, textiles & apparel, agro products, leather,
pharmaceuticals & drugs, wool &woollen items, etc. are of opinion that the
euphoria created in 2011-12 regarding the growing trade opportunities with
Pakistan cannot be realised until stability, trust and confidence in political,
diplomatic and economic ties between two countries can be achieved. India’s
stand on grant of ‘Most Favoured Nation’ or ‘Non-Discriminatory Market Access’
has not been taken seriously by Pakistan even after repeated reminders and
present trade regime under “negative list” doesn’t offer viable trade
opportunities. More so, relaxed and predictable visa regime, transparent banking
and payment settlement including issues of coverage of risks, both transport and
credit, should also be addressed on priority. Ease in transport and predictable
transportation regime with certainty of frequency in case of road transport is
must for tapping the trade opportunities both in exports and imports with
Pakistan. There is a sense of disappointment among exporters that same has not
been achieved knowing the fact that there exists a $10 billion trade opportunity
between two countries out of which only $2 billion is formally exchanged. If
Government of India can take necessary steps on its part and convince Pakistan
for mutually benefitting economic ties, traders as well as service providers of
Punjab will be major beneficiary of any such initiatives.
b. Rising Logistics Cost: Exporters of Punjab has complained about the rising cost
of transport which has increased as high as Rs. 15,000 for JNPT even after fall in
oil prices in recent months. Logistics service providers such as CONCOR may take
week(s) for onward transport even after timely custom clearance. Even
container operators charge exorbitant prices for “Container In& out” for export
of cargo. Shipping lines deliver containers at their sister dry port concerns which
charge higher cargo handling charges. Exporters feel that they are clearly at
disadvantage while competing with exporters based on coastal states due to high
logistics costs for export operations from Punjab.
Punjab, being a hinterland state has locational disadvantages in trading across
border and is naturally ranked behind the maritime states of India. It is ranked at
no. 12th in ease in trading across borders and time taken for exports is around 21
days involving a cost of $ 1105 (20 feet container) which is higher than the
national average. Similarly time for imports is 25 days involving the costs of
$1154 thus affecting the supplies of key importable inputs needed for textiles,
A Study on Punjab Export Potential and Strategy
chemical, hand tool and engineering industries of Punjab. Table 5.9 as under
depicts the time and costs involved at various stages of export and import
procedure involving important steps such as documents preparation custom
clearance, port & terminal handling and inland transportation for Punjab
exporters and importers.
Table 5.9: Time and Costs in Trading Across Borders for Punjab Exporters
Nature of Export Procedures
Documents preparation
Customs clearance and inspections
Ports and terminal handling
Inland transportation and handling
Totals
Nature of Import Procedures
Documents preparation
Customs clearance and inspections
Ports and terminal handling
Inland transportation and handling
Totals
Duration (days)
9
5
3
4
21
Duration (days)
10
3
6
6
25
US$ Cost
213
13
175
705
1,105
US$ Cost
233
16
200
705
1,154
c. Issues of Market Access: Analysis of identified thrust markets indicates (Table
4.4- top ten importers for Punjab’s top 80% products) that India does not have
any preferential or free trade agreements for major buyers of top 80% exports
from state of Punjab. Punjab exporters face tariff barriers in key markets of
Europe, North America and Australia. 95% of Punjab exporters responded that
Europe and North America are the key markets for their exportable products and
they do not enjoy any tariff preference in these countries. Phasing out of GSP
scheme which used to offer them non-reciprocal tariff preference is cited as
another reason for affecting their export prospects in these developed countries’
markets.
Exporters complained that the existing schemes for promoting market access for
Indian exporters has outlived its relevance as existing schemes such as MDA
grant assistance to exporters only once for each continent and max number of
such assistance cannot be more than 5. Exporters feel that Export Promotion
Bodies should allow them to choose markets from one continent only but 5
times. Similarly, grant under the MAI is available to associations/ federations /
chambers and research studies, business campaigns etc.; only big exporters are
able to make use of it and small exporters have rarely heard of the same.
Exporters demand for extension of list of “Focus Product Scheme” so as to
include more products from Punjab as these are produced by small exporters
and also fulfil the criteria of freight disadvantages that are associated with
Punjab exporters.
A Study on Punjab Export Potential and Strategy
d. Higher Cost of Financing of Export Operations: Exporters complain about
rising cost of export financing, both at pre-shipment and post shipment level
which makes their exportable products priced-out vis-a-vis their competitors
from China and other countries. Exporters demand that cost of export financing
should be pegged at par with Chinese exporters to make them competitive in
international markets. In addition to this, banks take lot of time in processing of
pre-shipment finance due to their “centralized operations” thus affecting their
working capital needs at critical time of export orders execution. Exporters
demand for continuation of “Interest Subvention Scheme” so as to neutralize the
impact of high cost of financing of export transactions.
e. Issues with Taxation Authorities: Exporters face lot of problems especially
when dealing with taxation authorities be it central taxes such as central excise,
customs and services tax or state level taxation authorities such as VAT officials.
Government of Punjab levies higher rates of value added tax on goods such as
yarn, and as a result, traders procure such items from other states such as
Gujarat, Uttar Pradesh and Rajasthan which do not impose any tax on yarn,
thereby affecting local industry. Exporters of bicycle particularly are facing
challenges of “Inverted Duty Structure”, thus resulting in cheap imports of
bicycle parts from ASEAN countries and China. Bicycles exporters have
demanded for an urgent review of India’s existing FTA(s) affecting their industry
and has requested for imposition of anti-dumping duty so as to address the
problem of cheap imports of bicycles and components from China.
Exhibit 5.10: VAT Refunds - Punjab Exporters Complains of Delay and Red-Tape
During the course of primary survey, exporters of Punjab have complained that state
government is making “inordinate” delay in paying VAT refunds. Exporters has
complained that there are no ‘timely disbursements of VAT refunds’ despite the fact that
state VAT department has rolled-out ‘rating scheme’ in this regard. Majority of the
exporters claimed that the cash flow of various industry verticals, including light
engineering sector, auto parts, hand tools, textiles & apparel had been hit due to delay in
tax refund, while some of the large exporters informed that they are fed up with the
state’s “snail paced” refund system. During the interaction with the engineering
exporters at Jalandhar in association with EEPC, various hand tool exporters informed
that they are facing problems with regard to VAT refunds as there is a long delay in
payment of such refunds by the excise and taxation department, which adversely affect
their working capital requirements. Exporters have been questioning the rationale of
the launch of “Star Rating” scheme which is advertised as one stop solution to VAT
refund problems by state agency. Exporters complain that if state government does not
have funds for processing the refund claims which are more than Rs. 100 crores, then
what is the rationale for opting for the scheme as it has the provision of heavy penalty.
A Study on Punjab Export Potential and Strategy
Exporters are demanding that penalty clause should be removed, as in case of wrong
VAT even unintentionally, has provision for slapping penalty from 200 per cent to 500
per cent of tax refund. Under the star rating scheme, dealers or tax assesses, having 5
star rating will be given VAT refund within 15 days, followed by 4 star rating dealers to
get refunds within 25 days, 3 star dealers will get within 30 days and 2 star to get
refunds within 45 days. Dealers, other than star rating dealers, would get VAT refunds
within 60 days. Exporters informed that average VAT refund pendency even after
highest star rating is more than 90 days and in some cases it may take even years.
Exporters also face problems from custom department as sometimes their
shipment are destined to gateway ports at CIF terms but importers apply for
transhipment bond with Indian customs for delivery to dry port located near
factory and business premises. Custom official does not send the Sub-Manifest
(Important custom documents which is part of IGM filed by shipping co. at
gateway port) to destined dry ports thus affecting custom clearance process at
dry port (ICD/CFS) in Punjab. Traders has to pay additional fee for seeking
amendment in IGM, thus adding costs in addition to important time lost in trade
process. Similarly, central excise officials take lot of time in processing of ARE-2
for claim of duty rebate under rule 18 of Central Excise Rules 2002 and may
sometimes engage in corrupt practices for clearance of rebate claims.
f. Lack of Testing & Inspection Facilities: Keeping in mind the export
performance of Punjab, there is lack of testing labs and export inspection
infrastructure and Punjab exporters has to send their cargo for testing and
inspection to other places, causing delay in manufacturing and export
operations. In fact, EIC approved inspection services are available only for honey
and milk products and major areas of exports such as sport goods, engineering
items, vulcanized rubber products, wool & wool products, textiles and allied
articles, basmati rice, etc. lack the required testing and inspection agencies.
Engineering exporters based in Jalandhar in particular demanded for setting up
of a testing lab & inspection agency at Jalandhar itself. Exporters, in fact
demanded that existing sub office of Export Inspection Council may kindly be
upgraded with lab at par with what the exporters of Ludhiana already have. In
addition to this, exporters complained that even existing labs do not have
requisite manpower to handle their business requirements resulting in waiting
time of sometimes weeks, thus affecting their export operations.
g. Competition from Low Cost Chinese Products: Exporters complained about
the low cost Chinese products entering Indian markets and thus affecting their
business operations. Bicycles &bicycles part manufactures in particular are most
affected from penetration of Chinese bicycles and parts in Indian markets.
h. Migratory Labour: Industry of Punjab is dependent on migrant labour due to
shortage of local labour and these migrant labour are completely unskilled when
they arrive from other states like UP, Bihar, West Bengal and Orissa. They have
A Study on Punjab Export Potential and Strategy
to be trained for work in textiles, bicycle, hand tool, sport goods and leather
article work. They work for some months of a year after which they leave for
native place or may switch from one place to another for better wages, thus
affecting the business operations of exporters. More so, they are looked upon
more as problem by local people, occasionally referred as “Dirty, Dangerous and
Difficult outsiders”. Key export sectors of Punjab cannot survive their business
operations without labour migration which unfortunately is characterised by
temporary tenure, poor working condition, and at times physical and verbal
abuses and human rights violation of engaged labour and as a result, industry
has to offer them sops such as accommodation, mobile phone, bicycle and
television with dish TV network, thus increasing the cost of business operations
and making their product unattractive in international markets.
Table 5.11: Punjab Bicycle Industry faces Acute Labour Shortage
India is world’s second largest bicycle producer after China accounting for about 10
percent of global bicycle production and with an estimated market size worth $1.5
billion. Indian bicycle industry produces about 15 million finished bicycles annually.
The bicycle industry is one among the key sectors of Punjab exports and is facing
serious crisis of labour shortage and around 55-60 percent of total labour engaged are
from states of Bihar, Uttar Pradesh and West Bengal. There are around 5000 small and
big manufactures of cycles and cycle parts and they are offering free-sops like free
accommodation, gas connection, mobile phone and bicycle to these labourers in order
to retain them which add additional costs to their business. Sometimes, cycle
manufactures has to pay commission to agents in order to hire the new recruits from
different backward states. In addition to this, there are organized labour contractors’
services and they charge high commission for bringing labour. Exporters complained
that wages has also gone up significantly in last 5 years; coupled with low costs Chinese
imports of bicycles and cycles parts, their business profit has just halved in last five
years.
5.3 REGULATORY CHALLENGES FOR PUNJAB EXPORTERS: During the course of
interaction with exporters and associated stakeholders, it is found that Punjab is not
among attractive destination for industrial investments for both local as well as foreign
investors. Punjab is ranked at no. 7th in ease of starting a new business and dealing with
construction permits, 11th in ease of norms for registering property, 4th in enforcing
contracts and unfortunately 12th in trading across borders. Due to long distance
involved from main maritime ports, Punjab is not considered as an attractive
destination for investments and business in spite of the fact that people of Punjab are
full of innate entrepreneurial talent and enthusiasm for business as they know how to
handle various kinds of risks associated in business mainly due to their history &
culture. However, exporters in today’s Punjab feel that state administrative machinery
is inefficient, promote red-tape and administrative delays. Their approach towards
A Study on Punjab Export Potential and Strategy
business promotion & industrialization is apathetic as political masters incentivize
more to agricultural sectors than industries. State government has introduced the
‘single window clearance system’ for multiple approvals from the state government but
unfortunately it has not worked in favour of industry and export sector. Table as under
indicate the rank of Punjab vis-a-vis other states of India in ease of doing business. The
story at ground seems more pessimistic than what this table speak about.
Table 5.12: Ludhiana (Punjab) Rank on Key Indicator for Ease of Doing Business
in India
Starting a
Business
7
Dealing with
Construction
Permits
7
Registering
Property
Paying
Taxes
11
1
Trading Enforcing Resolving
Across Contracts Insolvency
Borders
12
4
2
Source: World Bank Report 2014
a. Challenges for Starting a Business: In order to start an export business in
Punjab, one has to take around 12 licenses (Appendix 5.1) from various
authorities for starting a domestic business and 7 additional licenses for exports
& imports from central authorities. The cumulative time taken for taking
procedural licenses for domestic business is around 35-50 days involving
significant costs as well. Similarly, licenses and approvals from central
authorities may require around 90 days with approximate costs of Rs. 2500030,000. Appendix 5.1 as appended indicate the approximate costs& time
involved in starting a new business in Punjab. Table as under depicts the number
of formalities, time taken and associated costs for state of Punjab and compare it
with countries of South Asia and OCED.
Table 5.13: No. of Procedure, Take taken and Associated Costs for Starting a New
Business in Punjab
Indicator
Ludhiana
South Asia
OECD
Procedures (number)
12.0 7.9
4.8
Time (days)
33.0 16.0
9.2
Cost (% of income per capita)
48.0 14.6
3.4
Paid-in min. capital (% of income per capita)
0.0 14.2
8.8
b. Red-Tape in Dealing with Construction Permits: The costs and time taken in
dealing with construction permits is also at higher side. There are around 17
procedural formalities that a businessman in Punjab has to complete in order to
start construction work; however, average procedural formalities for a lesser
developed countries of South Asia is just 14 and that of OCED countries is 12
only. Permissions and approvals for start of construction work may require
around 143 days and as a result there is sub-standard allied infrastructure for
export promotion. For example, the warehousing costs in Punjab are higher as
A Study on Punjab Export Potential and Strategy
compared to other states in India. Cost and time involved in dealing with
construction permits in Punjab is appended in Appendix 5.2.
c. Issues for Registering Property: Punjab is ranked at 11th in ease in
registration of property in the state and it may take 67 days’ time in completing
the whole process of property registration which is layered at four stages
involving significant costs (Appendix 5.3). Even after proclaimed success of
Punjab Business Summit, investors has not shown any enthusiasm for
investments and prime reason for reluctance of business houses is that land is
extremely expensive coupled with high cost of registration. Prominent business
houses which are allotted land has complained about high cost of property
registration in Punjab.
d. Prevailing Tax Regime & System: Ease in payment of taxes is the only
parameter where Punjab ranked one of the best among Indian cities; however
tax rate as percentage of total profits are much higher at 67.6 %, in fact, far
higher than the lower developed countries of South Asia. Table 5.14 as under
depict the number of taxes involved in export chain, frequency (number) of
payments, mechanism for payments, time required (in hours) and rate of taxes,
nature of tax base and applicable taxes rates (% of profits). Central taxes are
neutralized through duty neutralization schemes such as Advance Authorisation,
duty Free Import Authorisation and Duty Drawback, it is unfortunate to note that
state taxes are not refunded with, thus making exports from Punjab unattractive
in international markets vis-a-vis their competitors. During course of interaction
with exporters especially that of textiles and engineering sectors, exporters
informed that it is easier for them to do business in states such as Maharashtra,
Tamil Nadu, Gujarat and Orissa especially in ease in handling the state taxes.
Table 5.14: Prevalent Tax Rates for Various Manufacturing, Trading and Services
Activities in Punjab
Statutory Tax Base
Total
Tax Or Mandatory Payme Mechanis Time
Contribution
nts
m Of
(Hours Tax Rate
Tax
(Numb Payments )
Rate (%
er)
Profit)
Central Sales Tax
12
Corporate Income
Tax
Social Security
Contributions
Stamp Duty
Employee's State
Insurance
Contribution
1
12
0
12
112
Online
Filing
Purchase Price
22.98
47
2%
Against
Form C
30.00%
Taxable Profits
19.92
96
12.00%
Gross Salaries
13.54
10.00%
4.75%
Transaction Value
Gross Salaries
6.06
4.64
A Study on Punjab Export Potential and Strategy
Dividend Tax
1
14.00%
Property Tax
1
Income Surcharge
0
Range
From 12%
10.00%
Fuel Tax
1
Fringe Benefit Tax
4
Tax On Insurance
Contracts
1
Vehicle Tax
(Pollution)
Education Fees
1
0
Paid
Jointly
Secondary &
Higher Education
Fees
Environment Tax
Tax On Interest
0
Paid
Jointly
State VAT
12
CENVAT (Excise
Duty)
Municipal
Business Tax
Municipal
Employee Tax
Totals:
1
0
0
Paid
Jointly
Online
Filing
Dividend
Distributions
Property Area
3.45
On All Federal Taxes
0.94
6% + INR
3.25 Per
Liter
Fuel Consumption
0.51
30.00%
Value Of Specified
Corporate Expenses
(Usually 20%)
0.26
12.36%
Insurance Premium
0.26
INR
2,500
2.00%
Per Vehicle In Use
0.13
All Federal Taxes
Including The
Surcharge
All Federal Taxes
Including The
Surcharge
0.01
1.00%
Withheld
Online
Filing
1.91
0.01
20.00%
Interest Income
0.00
0.00
12.50%
Value Added
0.00
16.48%
Value Added
0.00
0
0.00
0
0.00
59
255
67.6
In today’s globalised era, businesses throughout the world prefer a low cost availability
of land, friendly investment climate, lesser bureaucratic red-tape, and transparent and
quick decision-making and low transactions costs for business operations. As our
statistical analysis concludes that Punjab has competitive advantages in exports of
goods such as beverages, spirits and vinegar, residues & waste from the food industry,
organic chemicals, rubber and articles, cotton, man-made staple fibres, art of apparel &
clothing access, knitted or crocheted, other made up textile articles, articles of iron or
A Study on Punjab Export Potential and Strategy
steel, tool, implement, cutlery, spoon, nuclear reactors, boilers, vehicles for railway
/tramway and rolling-stock etc, it can enhance economic opportunities for the state
exporters by implementing a favourable regulatory framework thus enabling them
compete better in international markets.
CHAPTER 6:
SUGGESTIONS FOR PROMOTING EXPORTS FROM PUNJAB
The export sector of Punjab, even after enjoying innate competitive advantages in
several areas such as beverages, spirits & vinegar, residues & waste from the food
industry, organic chemicals, rubber & articles thereof, cotton, man-made staple fibres,
art of apparel & clothing access-knitted or crocheted, other made up textile articles,
articles of iron or steel, tool, implement, cutlery, spoon, nuclear reactors, boilers,
vehicles of tramway or rolling-stock, etc. is at an important crossroads and is awaiting
for policy interventions for growth, expansion and diversification. State exporters have
shown a great resentment for operational challenges they face in running their business
in Punjab. Accordingly, there are suggestions for both policy makers and exporters of
Punjab.
6.1 Suggestions for Improving the Operational Business Environment:State
administration has to address the problems/bottlenecks in each of the identified ‘thrust
products’ and ‘thrust markets’so as to promote the exports from the state. Policy
makers of Punjab should address the following challenges so as to provide good
operating environment for business as state exporters have a feeling that they have
some of unaddressable problems/challenges for doing business in Punjab. These are
locational disadvantages resulting in high cost of logistics, migrant unskilled labour and
associated unrests, scale disadvantages of their sizes, etc. However, there are some
addressable problems which should be taken care of by state administration. These are:
a. State exporters have lot of resentment for claim of Vat refunds. Exporters
reported a huge backlog of vat refunds which affect their working capital
requirements. State administration should address these concerns of exporters
with immediate priority and enthusiasm.
b. State exporters complained of departmental harassments which affect their
working and business operations. State administration need to sensitize the
officers/ executives of various state departments about the benefits that exports
bring to the state. Training workshops for such state departments on issues
related to export imports may be conducted in order to familiarize them about
the documentation and procedural formalities that an exporter has to complete
in order to export.Hence they should be cooperated on completion of state
specific compliance related to various departments,for example, labour,
electricity, vat, etc.
c. State has adequate electricity to fulfil the needs of industry and cost per unit is
also not uncompetitively priced (Tables 5.6 & 5.7).However there are plenty of
problems expressed by state exporters on quality of power services. There are
power fluctuations, line disruptions, untimely repair & maintenance of lines,
lower voltage etc. These need to be addressed.
d. Punjab does not have any state of art “exhibition cum trade fair centre”. Other
states of India like Tamil Nadu and Karnataka have set-up state of art exhibition
e.
f.
g.
h.
i.
j.
k.
l.
cum trade fair centres in collaboration with ITPO. The projects are funded under
ASIDE Scheme (state component). Administration of Punjab should explore such
opportunity to set-up a state of art exhibition cum trade fair centre at Ludhiana.
State
should
endeavour
to
set-up
dedicated
export
enclaves
(SEZ/EOU/STPI/BTP) in the identified thrust products. Similarly, Apparel
Parkas implemented for Ludhiana apparel exporters should have physical
structure according to specifications desired by international buyers as well as
by national brands and at par with the best trade parks globally. This will help
offset the challenges of fragmented nature of Punjab textiles and apparel
industry which comprises of large number of small sized units. Availability of
large variety of products at one place will make it one of the most sought-out
destination for sourcing of textiles, made-ups and garments.
Agriculture Export Zones as set-up in various parts of Punjab has not
contributed in terms of infrastructure support and marketing assistance to
Punjab exporters. AEZ should be strengthened for promoting exports of agroprocessed products from Punjab.
State has large presence of micro, small and medium enterprises which are
lacking on issues related to identification of key product segments, key markets,
product compliances, quality issues, cultural sensitivities of international
buyers, modes of entry, foreign business alliances, export import procedure &
documentation, EXIM finance & international banking procedure and managing
international logistics. State should have a dedicated foreign trade training
institute to provide training and other assistance to state exporters.
Ludhiana & Jalandhar are major hubs for business in the state of Punjab.
However, exporters from both the states depend on Delhi International Airport
for international consignments as flights from Amritsar & Chandigarh have
limited air transport connectivity. An air customs station in Ludhiana as well as
in Jalandhar should be set-up in order to cater to specialized needs of air-borne
cargo on similar lines of a dry port (ICD/CFS).
State should impress upon on central government for improving relations with
Pakistan, as this will open up plethora of trade and business opportunities for
state exporters.
Testing and calibration lab for engineering exporters of Punjab should be set-up.
Existing Hand Tool Training Institute should be up-graded so as to fulfil
technical gaps in advanced areas.
Courses aimed at skill development & training of unskilled migrant labour
should be launched under the existing MSME training center for fulfilling the
manpower requirements of labour intensive industries such as bicycle, textiles
& apparel, engineering goods, hand tools, auto components, rubber & plastics
and leather products.
Hand tool exporters need a dedicated state of art forging & lathe centre at
Jalandhar so as to design newer and innovative products with changing pattern
of world import demand.
m. Successful completion of ‘dedicated freight corridor’ as proposed and under
implementation can change the business landscape of Punjab. State should
constantly endeavour to address the challenges in successful and timely
implementation of proposed corridor.
n. State should identify the unused land and prioritize to give it to sectors
identified as potential growing sectors (thrust products-Table 3.8) for the state
economy.
Suggestions for Punjab Exporters: State exporters should plan and strategize to harness
their underlying strengths in identified thrust products and state government should
constantly encourage Punjab exporters to tap larger share in international markets. Our
analysis of identification of thrust products in Chapter 3 concludes several tariff
subheading where exporters from Punjab have enjoyed supply-side capabilities and
demand-side capacities. 28 specific subheading falling under 12 chapters of ITC(HS)
nomenclature are identified as key thrust products and state should address all the
problems associated with these sectors in order to enable them garnering increased
share in international markets. For ease of understanding for a common man, these
identified thrust products are grouped into 6associated businesssectors.These are:
a.
b.
c.
d.
e.
f.
Agriculture
Drugs & Pharma
Rubber & Plastics Products
Cotton, Textiles & Apparel
Engineering, Hand Tool and Auto Components
Bicycles & Bicycles parts
:
:
:
:
:
:
(ITC HS Chapter 1-24)
(ITS HS Code 29-30)
(ITC HS Code 39-40)
(ITC HS Code 52-63)
(ITC HS Code 73-85)
(ITC HS code 87)
In the light of our analysis under various chapters, following suggestions are made for
enhancing and facilitating the growth, expansion and development of export sector of
Punjab for products falling under the these sectors.
6.1 Cotton, Textiles, Apparel and Made-ups: State of Punjab is a major grower of cotton
among few Indian states and has a long established history of cottonspinning and
weaving industry. For majority of tariff lines researched in Chapter 3, Punjab’s share in
India’s textiles exports is constantly increasing. Following are suggestions for growth,
expansion and diversification of cotton, textiles and apparel export sector of Punjab.
a. Punjab exporters should be encouraged for expansion and diversification of their
production capacities where world demand is expanding (see Table 3.5). State
exporters should be encouraged to invest in expanding sectors;alternatively
foreign investments should be invited so as to advance the manufacturing chain
of cotton to finished products as many of the cotton based products (sub-heading
falling under chapter 52) are exported as raw material. Hence, state exporters
should be encouraged to expand into downstream activities for manufacture of
textiles made-ups, apparel and home furnishing.
b. Tariff sub-heading under certain HS code for cotton, textiles, made-ups and
apparel has shown a rising trend of Punjab exports in India’s exports’ share thus
c.
d.
e.
f.
g.
indicating state has supply capabilities in these areas. These codes are 520299,
520512, 520513, 520514, 520523, 550330, 550953, 550320, 610323, 610910,
610990, 611030, 621490, and 630190. State exporters should be encouraged to
consolidate their position further in these areas of exports.
World import demand for certain HS code falling under textiles and apparel
sector is expanding. Accordingly, Punjab exporters should be encouraged to
explore the increased export opportunities in these segmentsas Punjab exports
has witnessed a significant expansion in world imports of certain textiles and
apparel segments. These are HS codes for various types of yarns 520299, 520512,
520513, 520514, and520523, HS codes of textiles made-ups 550320, 550330,
and 550953, and HS codes of apparel610323, 610520, 610990, 611030, 621490,
and 630190.
Punjab textiles and apparel exporters should prioritize their exports strategy of
textiles and apparel around the following HS codes 520299, 520512, 520513,
520514, 520523, 550330, 550953 and 610520 as the share of Punjab as well as
that of India in these segments has witnessed a rising trends in the last five years
(2009-14). Exporters of Punjab should prioritize these segments of textiles,
made-ups and apparel as Priority 1 exports. HS code falling under 550320,
610323, 610910, 610990, 611030, 621490 and 630190 are Priority 2 exports
where the Punjab’s share in world imports in rising, however that of India is
declining.
Rising share of state textile products manufactured through acrylic or modacrylic
or of polymers is praiseworthy but state textiles industry should find some
balance with man-made fibre where share of Punjab textiles (of made-ups)
exports is declining in India’s textiles exports basket. This will enable them to
achieve sustainable growth, expansion and development in the globally
expanding sectors of (world demand) of manmadeand blended textiles.
State textiles exporters have to invest in technological advancements so as to
enable themselves for mass production at lower cost for international markets.
State exporters should be encouraged for up-gradation of their business through
central schemes such as “Technological Fund Up-gradation Scheme” (TUFS) and
Zero Duty Export Promotion Capital Goods Scheme. For enhancing the
production capacities of state exporters, number of textiles parks should be
multiplied as it will help in expansion and consolidation of state textiles industry.
Cluster based approach can be used so as to attract MSMEs of textiles sectors at
one location, thus ensuring pooling of limited available resources, i.e. land, labour
and capital. International buyers also like to visit such places where they can find
variety of products at one place, additionally this will significantly offset the scale
disadvantages attached to their small and medium sizes. State government can
extend its support by making land available and other required infrastructure for
expansion of textiles industry in Punjab either by itself or through PPP model.
State has large presence of small scale units in textiles, made-ups and apparel
sector which needs modernization of their production techniques and practices.
Textiles & Wool EPC should take exporters’ trade delegation to countries such as
China, Turkey, Vietnam and Bangladesh where manufactures have introduced
cost effective and innovative production techniques. This will help them enhance
their scale, quality and design capabilities thus making their products attractive
for exports.
6.2 Agricultural Products and Processed Foods: Punjab is an agriculturally advanced
state with dedicated surplus in many areas of agro-production. State exports significant
volumes of Basmati Rice, Honey, fruits, vegetables, processed foods, beverages &
vinegar and value added milk products. While the sectoral contribution of agriculture in
the economy is decreasing, that of agro exports as percentage of total agro production is
risingand has remained stagnant as percentage of exports (Table 2). This indicates that
state agro exporters are increasingly looking-up at international markets and also
scaling-up its agro value chain towards value added products (Table 3.8). Following are
the suggestions for growth, expansion and development of agriculture and agroprocessed foodexports from Punjab.
a. The key sectors for agro exports promotion from Punjab are wheat, basmati &
non-basmati rice, other cereals, oilseeds& their value added products,cotton,
fruit, vegetables, milk, honey, meal & offal and other animal husbandryproducts.
Export earnings from such sectors percolates to rural agro farmers, directly or
indirectly thus resulting in employment generation and improvement in living
standards of people employed.
b. Our analysis in Chapter 3 indicates that undenatured ethyl alcohol (HS code
220710) and Oil-cake and other solid residues (HS code 230400) enjoy revealed
competitive advantage in international markets and world demand for these
products is increasing in world market.Hence exporters of such agro products
should be encouraged to tap their strengths in international
markets.Additionally, exports of undenatured ethyl alcohol (HS code 220710)
from Punjab, although have a low export base, needs attentionas world demand
for the same is rising coupled with the fact the Punjab as well as India’s share of
exports in world import market is increasing. Exporters of Punjab should
consider it a Priority 1 exports so as to leverage their innate strengths in
international market.
c. Exporters of cereals from Punjab shall explore the export opportunities in
markets such as Saudi Arabia (10.9%), China (6.8%), USA (5.6%), South Africa
(5.2%), Malaysia (4.0%), Japan (3.8%), Benin (3.2%), France (2.9%), Yemen
(2.8%), Cote d'Ivoire (2.8%) as these are largest importers of cereals. Similarly,
largest importers of undenatured ethyl alcohol (HS code 220710) are USA
(24.8%), Germany (13.4%), Netherlands (12.1%), Japan (7.2%), UK (4.8%),
Sweden (2.7%), Italy (2.6%), Jamaica (2.5%), France (2.5%), Belgium (2.2%)
and that of Oil-cake and other solid residues (HS code 230400) are Netherlands
(7.6%), Indonesia (6.4%), Vietnam (5.8%), France (5.4%), Germany (5.3%),
Thailand (5.1%), Japan (3.4%), Italy (3.2%), Poland (3.0%), Korea
(3.0%).Exporters of Punjab has RCA advantages in these agricultural sub-sectors
and should be encouraged to make use of available export opportunities in
international markets.
d. DGCI&S data shows that agriculture sectors do not have consistency of ‘exports
orders’ and one of the reason told by agro exporters is that of missing link
between sellers and buyers of such products. Associated export promotion
councils/ state agro marketing board should work not only for the development
of agro-based industries but facilitate Punjab’s agro products exporters with
longer-term contractual arrangements for purchase of produce by key
international buyers, i.e., large retail multinationals.
e. The focus should be on regular and dedicated exports volumes each year and
same can be achieved by dedicated agro productions for exports of the identified
crops from state’s Agri-Export Zones. For promoting exports of processed agro
products, it is important to have nexus between industry and agriculture as this
can help disseminate best technology and best agro production practices among
Punjab farmers on the one hand and orienting Punjab agro products industry
towards exports on the other.
f. Availability of post harvest infrastructure and ease in logistics is important for
promoting agriculture and agro-products exports. Policy makers should attract
investments in logistics sectors including cold chains, warehouses, reefer vans,
bins & panels, etc. Improved agro infrastructure not only facilitate the agro
exports but reduce the waste, decay and losses associated with perishable agro
products.
6.3 Drug & Pharmaceuticals: Ranbaxy-Daichiisone of the largest Indian pharmaceutical
company situated in Punjab. Additionally, Punjab has good strength of small and
medium enterprises located in the state. Drug and Pharma industry has mellowed
export growth in recent years; however their share in India’s total drug and pharma
exports is rising both for organic chemicals and pharmaceuticals. There is a need for
expansion of export basket of drug and pharma products and investments are needed
for both domestic and foreign firms for enlarging the drug &pharmaceutical production
in Punjab. Following are the suggestions for growth, expansion and development of
drug & pharma exporters of Punjab.
a. State exporters should explore the possibilities for increased exports in HS codes
290622 (Cyclanic, cyclenic or cycloterpenic) and 294200 (other organic
compounds) where the world demand is expanding. Additionally, India’s as well
as Punjab’s share is rising in world imports, thus issues related to supply side
constraints should be addressed for these sectors. Additionally, drug & pharma
products falling under HS code 290611 (Cyclanic, cyclenic or cycloterpenic) and
294200
(Other organic compounds) indicate revealed competitive
advantage for these products.Exporters of Punjab should strategize to explore
available export opportunities in these segments.
b. Exports of drugs falling under HS code 294200 (Other organic compounds) is
expanding in world market and that of Punjab has witnessed a declining trend
except for the year 2011-12 when it witnessed a huge jump of 6.90% of world
imports. Drug & pharma industry in association with policy makers, should
address the challenges & problems as world import demand for this segment has
exhibited continuity.
c. Punjab exporters should be encouraged to tap the growing opportunities for
trade with expanding world imports demand for drug & pharma segments such
as HS codes 290611(Cyclanic, cyclenic or cycloterpenic), 294190
(Othercompounds) and294200 (Other organic compounds).
d. Average exports growth rate of tariff lines falling under chapter 29 (sub-heading
294190, 294110, 294200, 290611 and 294150) has been lower than average
growth rate of Punjab. The possible reasons can be supply side constraints which
need to be addressed by Punjab drug & pharma industry in association with
policy makers of Punjab.
e. Exporters of Cyclanic, cyclenic or cycloterpenic (HS code 290611) should explore
world markets such as China (35.6%), USA (14.0%), Singapore, (6.9%), Germany
(4.9%), Thailand (3.9%), Indonesia (3.1%), Brazil (2.9%), Hong Kong (2.5%),
France (2.2%) and Japan (2.2%), as these are largest markets for these products.
f. Prime export destinations for other compounds (HS code 300390) are USA
(24.1%), Belgium (14.3%), Ireland (8.1%), Italy (5.0%), Spain (3.4%), Tunisia
(3.2%), China (3.1%), Netherlands (2.6%), Mexico (2.4%) and Japan, (2.4%) and
these destinations should be explored by Punjab drug & pharma exporters.
g. There is huge demand for Penicillin, Other organic compounds(HS code
294200)Erythromycin and its derivatives(HS code 294150) and their
derivatives (HS code 294110) within India which is the largest importer for
penicillin and second largest importer for erythromycin. Manufacturers of these
drugs should expand their production capabilities along with strengthening the
supply networks of raw materials needed for it. They should cater only high
priced segments of these drugs for exports.
h. Feedback of Punjab exporters indicates that there is a shortage of manpower for
the drug and pharma sector.Universities & colleges should be encouraged to
launch the courses aimed at promoting the research & development of this
sector.
6.4 Rubber & Rubber Articles: With large industrial base for bicycle industry, there is
naturally a demand for rubber base products used in the cycle industry. Following
factors should be considered in Punjab exports strategy for promotion of rubber &
rubber articles.
a. Rubber products falling under HS code 401150, 401199 and 401320 (items of a
kind used on bicycles) are witnessing an expansion in world import demand,
accordingly exporters of these products from Punjab should be encouraged to
tap respective segments of plastic products in international markets.
b. Average growth rate in exportsof plastics & articles thereof (HS code 302020)
has been higher than average export growth rate of Punjab.However, products
falling under chapter head rubber & articles thereof (HS codes 401150, 401320,
and 401199) has been low than that of Punjab’s average growth rate but their
share in India’s exports is growing. Our interaction with exporters indicated that
they are shifting some of their operations to other states due to availability of
low cost labour, raw material (iron & steel) and logistics costs. Policy makers of
Punjab need to address these issues and make efforts to retain bicycles industry
in Punjab.
c. As world demand for rubber &articles thereof is increasing, Punjab exporters
should be encouraged to tap growing world imports demand for these products.
d. India’s exports share in world imports demand of rubber & plastics has shown a
declining trend. Punjab exporters are having a revealed competitive advantage
for these products. Accordingly, issues related to greater market access for these
products should be taken up with central government so as enhance the
prospects of Punjab exports further.
e. Prime export destinations for exports of rubber & articles thereof and plastics &
articles thereof are USA, Germany, France, UK, Japan, Netherlands, Italy, Spain,
Australia, Brazil, Russia, South Africa, Mexico, Poland, China, Canada, Chile and
Columbia, etc. (Table 4.4) and exporters should strategize to find out suitable
segments to tap these markets for exports of rubber and plastics products and
articles thereof.
f. Punjab exporters of rubber & plastics have complained about the cheap Chinese
imports affecting their exports as well the prospects in domestic markets. As
rubber and plastics industry supports the growing needs of bicycles and other
industrial segments, their concerns for inflow of cheap Chinese products should
be accordingly addressed with.
g. For supplies of quality rubber and plastics material, there is a need for
technological up-gradation of existing industry. This will help in forward
integration for manufacture of finished products thereby increasing exports
prospects of higher priced-value added productsfurther.
h. Testing lab & inspection facilities for the exporters of rubber & plastics products
should be made available so as to cut down their costs & time related to
inspection from distant places.
6.5Engineering Products, Hand Tool & Auto Component Industry: Punjab is one amongst
the few states of India where there is large scale presence of successful MSMEs in
engineering, hand tool and auto component sector. With opening up of these sectors for
foreign investments, there exists a series of original equipment manufacturers in the
states like Maharashtra, Tamil Nadu and Gujarat having advantages of being close to
maritime ports, required raw material, low labour costs and directly linked to large
firms dealing in engineering and auto manufacturing sector. Punjab exporters of
engineering goods, hand tools and auto-component can strategize in following manner
to offset these disadvantages and can explore increased export prospects for
themselves.
a. Majority of engineering goods, hand tool and auto components items exported
from Punjab has witnessed a slower growth pattern than average growth rate of
Punjab exports for the period 2009-14. The only exception are treaded nuts (HS
code 731816) and other hand tools including glazier (HS code 820559) which
witnessed higher growth pattern. World import demand for majority of these
exportable has been expanding (Table 3.5) but India’ share in world imports for
majority of these tariff lines is declining. However, Punjab’s exports of
engineering goods, hand tool and auto component has indicated a revealed
competitive advantage for engineering, hand tool and auto component sector.
This helps us to conclude that there are market access issues for Indian (read
Punjab) exporters of engineering goods, hand tool and auto components. Policy
makers at central level should address the market access issues so as to promote
the exports of engineering, hand tool and auto-components.
b. Prime destinations for engineering, hand tools and auto components are USA,
Germany, Singapore, France, Japan, Canada, South Korea, Saudi Arabia, Mexico,
Thailand, Malaysia, Switzerland, Austria, Russia, Brazil, Norway, Netherlands,
China, Belgium, Czech Republic, Italy, Indonesia and Egypt (Table 4.4) and
exporters of Punjab should focus on these markets for increasing their export
prospects.
c. Majority of the exports firms in engineering, hand tool and auto components are
small size firms which do not have the capacity to cater to demand of large and
organized buyers of these goods. India is fast emerging as regional automobile
manufacturing hub. There is a significant domestic demand in addition to
growing world demand. State government should attract the foreign investments
and large scale manufacturers with modern technology so as to reap the scale
and scope of growing world demand and domestic sales.
d. Small sized manufacturers & exporters of engineering goods and auto
component informed that large portion of their sales cater to lower value
segments or is used for replacements. They do not have tie-up with large
automobile manufacturers thereby catering to scattered and fragmented low
value and replacement markets. State exporters need to scale-up their value
chain so as to cater to high value segments and to large companies for dedicated
export sales.
e. Export Inspection Agency should set-up a full fledged office for testing and
inspection of exportable cargo in cost effective manner and on real time basis for
the exporters of hand tool and auto components. Exporters of hand tools
informed that modern technical testing equipment can greatly improve their
product quality and competitiveness and same should be done for Punjab hand
tool exporters.
f. Engineering, hand tool and auto component manufacturers of Punjab are facing a
stiff competition from low cost Chinese products which are cost effective and
offer value for money to end-use customers. Engineering Export Promotion
Council (EEPC) should guideand facilitate Punjab exporters to forge
technological and commercial linkages with companies from countries such as
China, Taiwan, South Korea and Thailand. This will improve the production
capabilities of Indian manufactures and will enable them to explore greater
export prospects in newer markets, wider segments with improved technology
and at lower costs.
g. Dedicated training institutes for skill up-gradation of migrant manpower for
manufacturers of engineering goods, hand tools and auto-component should be
set-up by the state. Existing such institutes should be up-graded so as to provide
training to migrant manpower who works only for few months and left home
back. This will cut-down the costs of industry in training the migrant workforce
and will generate employment opportunities for those seeking to work in this
sector.
6.6Bicycles & Bicycle Components : In case of Bicycles and Bicycles components export
(ITC Chapter 87)Punjab has contribute more than 50% share in India’s total exports as
Punjab is an established centre for the manufacture of bicycles& components thereof. It
has large number of small and few large manufacturers of bicycles. There are large
number of small bicycle components manufacturers who occasionally exports as well.
India is the world’s largest manufacturer of bicycles after China and does not figure
even amongst the top ten exporters. Following strategies can be used by Punjab
exporters for promotion of bicycles exports in international markets.
a. HS codes 870880 (Suspension shock-absorbers), 871494 (Brakes, including
coaster) and 871496 (Pedals and crank-gear) are found competitive for exports
through RCA analysis (Table 3.8) and also have expanding world import
demand. Exporters of Punjab should consolidate their position in these segments
in international markets.
b. Suspension shock-absorbers (HS code870880) have rising share in exports from
Punjab as well as from India, coupled with increasing world import demand. This
segments is categorised as Priority 1 exports from Punjab and offer great trading
opportunities for Punjab bicycle exporters. For HS codes 871494 (brakes
including coaster) and 871496 (pedals and crank gear), India’s share in world
market is declining, however that of Punjab is rising.These are categorised as
Priority 2 exports for Punjab exporters.
c. World import demand is rising for sub-headings (HS code) such as 8708809
(Suspension shock-absorbers), 871200 (Bicycles and other cycles),
871491(Frames and forks), 871494 (Brakes, including coaster) and
871496(Pedals and crank-gear) and declining for sub-headings such as 870190
(Bicycles parts-other), 870899 (Other parts and accessories) and 871499 (other
parts). Exporters are advised to consolidate their operations in growing
segments to further their export prospects.
d. Bicycle exportsfrom Punjab has rising share in India’s exports in sub-heading
870190 (other), 870880 (suspension shock absorbers), 871200 (Bicycles and
other cycles), 871294 (Brakes, including coaster) and 871496 (Pedals and
crank-gear) indicating supply strengths of Punjab exporters and exhibit
declining share for sub-heading 870899 (other parts and accessories), 871491
(frames & forks) and 871499 (others). Punjab exporters should consolidate their
business operations in areas of their supply strengths for exports.
e. Key importers of exportable bicycles items from Punjab are USA, France,
Germany, Canada, UK, Belgium, Poland, Italy, Australia, Spain, Mexico, Russia,
China, Thailand, Japan, Switzerland, Portugal, Netherlands, Hong Kong, Brazil,
Singapore and Indonesia. Exporters of bicycles and part thereof are encouraged
to tap these markets more aggressively.
f. Exporters have complained about the inverted duty structure and cheap Chinese
imports affecting their industry. Duty imposed domestically is higher on
imported items coming from China through South East Asian countries with
which India has signed a Free Trade Agreement. Bicycle industry of Punjab not
only brings precious foreign exchange to the country but promotes great
employment opportunities. Industry should be protected from such dangers of
cheap outside imports resulting due to inverted duty structure or cheap Chinese
imports routing through other countries. For direct cheap Chinese imports, issue
related to dumping by Chinese exporters should be probed and if found on merit,
anti-dumping duty should be imposed by central government.
APPENDIX 2.1: MACRO SOCIO-ECONOMIC INDICATORS OF PUNJAB VIS A VIS TOP 20 STATES OF
INDIA
S. No.
Indicator
1
Total population (in thousand-2011)
2
Geographical Area (In thousand Sq. Kms)
3
Density of Population( Per Sq. Km)-2011
4
Percentage to urban population to total population-2011
5
Decadal Growth rate in population in India-2011
6
Sex ratio-2011
7
Literacy rate(Total)-2011
8
Literacy rate(Female)-2011
9
Intensity of cropping
10
Percentage of net irrigated area to net area sown
11
Percentage of Gross irrigated area to Gross area sown
12
Average Yield of Food Grains (Kg. / Hect.)
13
Average Yield of Food Rice (Kg. /Hect.)
14
Average Yield of Food Wheat (Kg. /Hect.)
15
Percentage contribution of rice to central pool
16
Percentage contribution of Wheat to central pool
17
Consumption of Fertilizers Per Hectare (Kg.)
18
Percentage of Area Under forest to Total reporting area
19
No. of Primary Schools Per Lakh Population
20
No. of Middal Schools Per Lakh Population
21
Pupil- Teacher Ratio (Primary School)
22
Pupil- Teacher Ratio (Middle School)
23
Dropout Rate (I-V)
24
Dropout Rate (I-VIII)
25
Life Expectancy (Female)
26
Life Expectancy (Male)
27
Infant Mortality Rate
28
Birth Rate-2011
29
Death Rate-2011
30
Per Capita Net State Domestic Product at Current Prices 2013-14
31
Per Capita Net State Domestic Product at (Rs) Constant Prices-2013-14
32
Percentage of population below poverty line
33
Percentage of Electrified Villages to Total Inhabited villages
34
Per Capita of consumption of electricity (KWH) (Utility)
35
No. of Registered Motor Vehicles Per Lakh of Population
36
No. of Post Offices Per lakh of population
37
Credit -Deposit amount Ratio-2012
38
No. of scheduled commercial banks Per Lakh of population -2012
39
Human Development Index 2012-13
Source: Statistical Atlas of Punjab
Rank
15
18
6
6
15
18
8
5
1
1
1
1
1
1
1
1
19
19
14
17
12
2
1
1
3
3
14
17
9
6
8
4
1
1
4
7
6
2
3
Year
200708
200809
200910
201011
201112
Appendix- 2.2 ANNUAL SURVEY OF INDUSTRIES ( FACTORY SECTOR)
(Value in ` Ten Million, others
in number)
Numbe Fixed Work
Total Wages
Total
r of
ing Product Invest Number
Persons
to
ive
ed
of
Capita Capit
Capital Capita
Engaged Work Emolum
Factori
l
al
l Worker
ers
ents
es
s
146385 84513 3169 116208 12801 819811
10452535
51030 105443
2
53
5
26
0
155321 10559 3112 136719 15351 877674
11327485
59772 129441
66
33
9
78
5
158877 13521 3877 173992 19330 915780
11792055
68941 147007
84
45
8
54
2
211660 16070 6203 222736 23935 990197
12694853
85646 183296
07
63
9
80
0
217554 19495 5887 253834 28400 104383
13429956
99856 214733
51
94
5
95
65
Table 2.3 : ANNUAL SURVEY OF INDUSTRIES ( FACTORY SECTOR)
(Value in ` Ten Million,
others in number)
Year
Materi
Total
Tota
Net
Rent
Inte
Gross
Fuel
als
Inputs
s
Cons
Prod
l
Value
Paid
rest
Fixed
Mate
Semi
Finis
Consu
ucts
Outp
For
Pai
Capita
rials,
Finis
hed
med
and
ut
Adde
Fixed
d
l
Fuels
hed
d
Asset
Forma
s
tion
ume
By-
d
prod
Addition in Stock of
Total
Goo
ds
ucts
200
1521
20659
266148
2863
3272
5277
8-09
62
82
6
148
798
66
200
1616
24090
303585
3306
3733
5921
9-10
00
96
3
142
036
201
1954
30204
385108
4083
0-11
24
41
4
201
2424
37419
1-12
38
19
9758
686
22594
1974
9094
6798
3563
80
7
7
1200
733
26830
5323
1902
2128
9354
14
5
18
1
9
2
3
4
4676
7045
1349
880
28365
7742
2707
5774
1622
718
217
76
3
21
5
6
8
5
49
479866
5032
5776
8367
1619
120
34382
6342
1745
3941
6320
6
090
024
03
5
656
4
5
1
8
8
TABLE 2.3: MILL PRODUCTION OF COTTON YARN
State/Union
Territory
State
Andhra Pradesh
Arunachal Pradesh
Assam
Bihar
Chhattisgarh
Goa
Gujarat
Haryana
Himachal Pradesh
Jammu & Kashmir
Jharkhand
Karnataka
Kerala
Madhya Pradesh
Maharashtra
Manipur
Meghalaya
Mizoram
Nagaland
Orissa
Punjab
Rajasthan
Sikkim
Tamil Nadu
Tripura
Uttarakhand
Uttar Pradesh
West Bengal
Union Territory:
A & N. Island
Chandigarh
Dadra & N Haveli
Daman & Diu
Delhi
Lakshadweep
Puducherry
TOTAL
2010-11
2011-12
194
164
119
79
9
1
43
28
205
270
2
497
116
1545
35
41
17
257
159
155
55
7
1
35
24
207
257
1
480
114
1216
34
36
10
76
75
1
0
4
3
3446
3126
Source: Office of the Textile Commissioner, Ministry of
Textiles
(Mn. Kg.)
2012-13
(P)*
295
187
163
64
8
1
35
23
264
298
2
575
134
1341
40
40
8
85
0
4
3567
Table 2.4 : STATEWISE PRODUCTION OF COTTON CLOTH (MILL CLOTH)
State/
Union Territory
Himachal Pradesh
Gujarat
Karnataka
Kerala
Madhya Pradesh
Maharashtra
Punjab
Rajasthan
Tamil Nadu
Uttar Pradesh
D &N Haveli
Puduchery
Others
Total
2007-08
2008-09
..
415950
3670
Nil
55400
173740
160470
58230
108050
12190
Nil
10510
250370
1248580
47762
409791
2328
Nil
69355
139247
169107
48014
91574
4281
272957
5120
Nil
1259536
2009-10
2010-11
(in 000
Sq.Mtr.)
2011-12
2012-13
45331
52130
82736
84732
482361
513394
505573
472329
2161
2235
1388
2176
Nil
Nil
Nil
Nil
102950
110356
108821
119231
152005
160998
172487
205497
167576
178498
189139
126980
49868
61200
52753
45309
102023
107554
80568
75271
629
197
2853
5050
357823
414772
527135
878104
2420
2649
618
1580
Nil
Nil
Nil
Nil
146514
1603983
172407
2016259
7
1
Source: Office of the Textile Commissioner, Ministry of Textiles
Note: 1. Statewise break up for decentralised sector is not available
2. All India figures are in million sq.metres and statewise figures are in '000 sq.meters.
3. Production of mill sector is exclusiive of production of weaving units.
4. Production of decentralised sector is inclusiive of production of weaving units.
Table 4.1: Expansion In World Demand ( Value & Quantity Wise For Top 80% Exports
Of Punjab)
Product Code Product Description
Value wise
Quantity
CAGR of
wise CAGR
(6 Digit)
World
of World
Demand
Import
(2009-2013)
Demand
(2009-13)
100630
Semi-milled or wholly milled rice,
0.030
0.3449
220710
Undenatured ethyl alcohol
0.116
0.0605
230400
Oil-cake and other solid residues,
0.091
0.0066
290611
Cyclanic, cyclenic or cycloterpenic
0.246
0.0879
294110
Penicillins and their derivatives w
0.044
0.051
294150
Erythromycin and its derivatives; s
-0.068
0.0026
294190
Other
0.005
0.0514
294200
Other organic compounds.
0.098
0.0473
300390
Other
-0.140
0.033
392020
401150
401199
401320
520299
520511
520512
520513
520514
520521
520523
520524
520532
520544
520932
550130
550320
550330
550932
550953
610323
610520
610590
610910
610990
611020
611030
611120
621490
630190
630260
630299
630492
730791
730840
730890
731815
731816
731819
731822
732690
820320
820411
Of polymers of propylene
Of a kind used on bicycles
Other
Of a kind used on bicycles
Other
Single yarn, of uncombed fibres :-Single yarn, of uncombed fibres :-Single yarn, of uncombed fibres :-Single yarn, of uncombed fibres :-Single yarn, of combed fibres :-- M
Single yarn, of combed fibres :-- M
Single yarn, of combed fibres :-- M
Multiple (folded%) or cabled yarn, o
Multiple (folded%) or cabled yarn, o
Dyed :-- 3-thread or 4-thread twill
Acrylic or modacrylic
Of polyesters
Acrylic or modacrylic
Containing 85 % or more by weight o
Other yarn, of polyester staple fib
Suits :-- Of synthetic fibres
Of man-made fibres
Of other textile materials
Of cotton
Of other textile materials
Of cotton
Of man-made fibres
Of cotton
Of other textile materials
Other blankets and travelling rugs
Toilet linen and kitchen linen, of
Other :-- Of other textile material
Not knitted or crocheted,
Other :-- Flanges
Equipment for scaffolding, shutteri
Other
Threaded articles :-- Other screws
Threaded articles :-- Nuts
Threaded articles :-- Other
Non-threaded articles :-- Other
Other
Pliers (including cutting pliers%),
Hand-operated spanners and wrenches
0.077
0.090
0.228
0.073
0.199
0.048
0.276
0.210
0.576
-0.196
0.125
0.165
0.061
-0.020
0.026
0.033
0.129
0.149
-0.047
0.153
0.059
0.154
0.098
0.020
0.152
0.001
0.080
0.032
0.064
0.109
0.054
0.033
0.006
0.088
0.066
0.070
0.118
0.151
0.109
0.127
0.105
0.095
0.114
0.118
0.027
0.0583
0.0314
0.801
-0.002
0.158
0.101
0.346
-0.137
0.112
0.09
-0.009
0.142
0.135
-0.038
0.046
0.042
-0.084
0.061
0.015
0.076
0.098
-0.012
0.106
-0.023
0.042
0.117
0.019
0.137
0.084
0.026
0.001
0.115
0.196
0.278
0.173
0.279
0.153
0.2
0.299
0.021
0.205
820559
820570
840890
847290
850421
870190
870880
870899
871200
871491
871494
871496
871499
950699
Other hand tools (including glazier
Vices, clamps and the like
Other engines
Other
Liquid dielectric transformers :-Other
Suspension shock-absorbers
Other parts and accessories :-- Other
Bicycles and other cycles
Other :-- Frames and forks, and par
Other :-- Brakes, including coaster
Pedals and crank-gear, an
Other
Other
0.057
0.141
0.136
0.120
0.037
0.103
0.180
0.097
0.063
0.094
0.116
0.113
0.081
0.049
0.041
0.111
-0.34
-0.136
0.006
-0.171
0.158
0.105
-0.017
0.073
0.048
0.081
0.116
-0.072
APPENDICES 4.2: F.O.B PRICE OF TOP PUNJAB'S EXPORTS (USD/ UNIT)
Product Code
(6 Digit)
Product Description
100630
Semi-milled or wholly milled
rice,
Undenatured ethyl alcohol
Unit
F.O.B Price of Top Punjab's Exports (USD/ Unit)
2009
2010
2011
2012
2013
Kg
1.1190
0.9168
0.8370
0.6120
0.7674
Litre
0.8069
0.7138
0.8497
0.8576
0.7823
Kg
0.3997
0.3932
0.4022
0.4764
0.5507
Kg
8.1819
N.Q
29.4555
33.6836
20.5607
Kg
40.2679
34.1956
3.1308
33.3730
34.3896
Kg
102.8849
189.7748
137.6024
129.4733
126.0738
294190
Oil-cake and other solid
residues,
Cyclanic, cyclenic or
cycloterpenic
Penicillins and their
derivatives w
Erythromycin and its
derivatives; s
Other
Kg
93.7635
N.Q
86.9525
111.9391
125.5213
294200
Other organic compounds.
Kg
26.1581
N.Q
48.8321
48.1682
39.9056
300390
Other
Kg
13.6671
N.Q
20.2394
29.5220
21.4457
392020
Of polymers of propylene
Kg
2.2781
3.1809
2.7476
2.4068
2.4362
401150
Of a kind used on bicycles
Item
2.0755
4.6715
2.6429
2.6360
2.5713
401199
Other
Item
103.7958
81.3189
176.1124
186.1364
182.4736
401320
Of a kind used on bicycles
Item
0.7177
1.0674
1.1090
1.1284
1.1326
520299
Other
Kg
1.0355
1.0232
1.5016
1.2915
1.3212
520511
Single yarn, of uncombed
fibres :-Single yarn, of uncombed
fibres :-Single yarn, of uncombed
fibres :-Single yarn, of uncombed
fibres :-Single yarn, of combed fibres
:-- M
Single yarn, of combed fibres
:-- M
Single yarn, of combed fibres
:-- M
Multiple (folded%) or cabled
yarn, o
Kg
2.4480
2.1109
3.8458
3.1303
3.2122
Kg
2.0899
2.2807
3.1943
2.7064
2.7616
Kg
2.2738
2.3321
3.7103
3.1650
3.3031
Kg
2.9308
2.6732
3.7750
3.2614
3.4037
Kg
2.5202
2.5859
4.1978
3.5185
3.6439
Kg
2.4017
3.0638
4.1288
3.4097
3.5601
Kg
2.8731
3.3460
4.5450
3.7027
3.8398
Kg
2.2401
2.7452
3.9184
3.2505
3.4265
220710
230400
290611
294110
294150
520512
520513
520514
520521
520523
520524
520532
520544
Kg
3.3761
5.7714
5.2415
4.2161
4.3934
Kg
11.3753
10.9642
10.0288
13.0491
12.5150
550130
Multiple (folded%) or cabled
yarn, o
Dyed :-- 3-thread or 4-thread
twill
Acrylic or modacrylic
Kg
1.8711
N.Q
2.8839
2.2498
2.3276
550320
Of polyesters
Kg
1.1186
1.2101
1.8848
1.5864
1.5497
550330
Acrylic or modacrylic
Kg
2.1574
2.0480
2.9114
2.6975
2.5691
550932
Kg
3.0623
4.5751
4.4745
4.4013
4.7591
Kg
2.1008
2.2677
3.6709
2.9952
3.0661
610323
Containing 85 % or more by
weight o
Other yarn, of polyester staple
fib
Suits :-- Of synthetic fibres
Item
6.4998
4.8334
6.6785
5.7565
5.2013
610520
Of man-made fibres
Item
6.9887
8.7211
8.2735
6.7043
6.9168
610590
Of other textile materials
Item
5.8134
N.Q
7.2748
6.3080
6.0949
610910
Of cotton
Item
2.8925
5.0137
3.5419
3.1119
2.9624
610990
Of other textile materials
Item
4.4467
7.4603
4.8455
4.5505
4.0472
611020
Of cotton
Item
4.0957
11.2660
6.9951
6.9633
6.5376
611030
Of man-made fibres
Item
5.6645
12.5632
9.2934
7.2681
6.8385
611120
Of cotton
Kg
5.4461
30.8526
6.5652
6.8277
4.3083
621490
Of other textile materials
Item
2.1821
2.9134
2.7364
2.7596
3.0426
630190
Kg
8.9732
9.4035
8.6257
9.0617
10.1828
Kg
6.5477
8.8436
3.7500
4.0359
4.8532
Kg
4.6896
15.8969
5.8707
5.5333
4.9873
630492
Other blankets and travelling
rugs
Toilet linen and kitchen linen,
of
Other :-- Of other textile
material
Not knitted or crocheted,
Kg
14.2424
14.4439
15.4828
18.4263
20.5146
730791
Other :-- Flanges
Kg
1.9375
5.3415
2.0257
2.0040
2.1045
730840
Equipment for scaffolding,
shutteri
Other
Kg
1.1545
2.6691
1.3660
1.4590
1.4795
Kg
1.9540
2.8228
1.6837
1.8869
1.8967
Kg
1.0523
6.5574
0.5780
2.0990
2.2778
731816
Threaded articles :-- Other
screws
Threaded articles :-- Nuts
Kg
1.6595
8.2985
2.4690
3.6246
5.6640
731819
Threaded articles :-- Other
Kg
1.3928
6.4762
1.1697
2.1054
2.1311
731822
Non-threaded articles :-Other
Other
Kg
2.5275
N.Q
2.8716
2.3280
1.9737
Kg
2.9318
5.4432
2.9771
3.4578
3.9206
Kg
3.3645
23.1655
2.2459
3.1925
3.3591
Kg
2.3546
11.0928
2.5854
3.0946
3.4666
Kg
4.1935
11.3683
3.7883
4.7218
4.6864
820570
Pliers (including cutting
pliers%),
Hand-operated spanners and
wrenches
Other hand tools (including
glazier
Vices, clamps and the like
Kg
2.2002
6.9665
2.6139
3.8009
3.4434
840890
Other engines
Item
1167.1639
N.Q
597.7115
1414.2905
1221.1096
847290
Other
Item
7.3157
N.Q
3.3311
3.0122
2.1731
850421
Item
71.9417
7205.4532
2847.6497
1096.8418
148.5900
870190
Liquid dielectric transformers
:-Other
Item
10020.2187
27351.7461
10445.6267
9884.5186
11893.2057
870880
Suspension shock-absorbers
Kg
4.6733
8.9702
4.8183
4.7934
5.0646
870899
Other parts and accessories :-Oth
Bicycles and other cycles
(includin
Other :-- Frames and forks,
Kg
4.4428
8.6411
0.1775
5.7048
6.0741
Item
34.5165
228.2567
43.4870
43.3990
39.8645
Kg
N.Q
56.0404
61.6959
66.5026
76.1562
520932
550953
630260
630299
730890
731815
732690
820320
820411
820559
871200
871491
and par
871494
Kg
1.0304
18.3988
1.7649
1.6286
1.7931
871496
Other :-- Brakes, including
coaster
Pedals and crank-gear, an
Kg
0.7355
N.Q
0.7432
0.7605
1.1416
871499
Other
Kg
0.9567
N.Q
1.2690
1.5075
1.8644
950699
Other
Item
3.8294
N.Q
4.7466
4.5626
4.6114
APPENDICES 4.3 C.I.F IMPORT PRICE OF TOP IMPORTING COUNTRIES IN 2013
Product
Code (6
Digit)
100630
220710
230400
290611
294110
294150
294190
294200
300390
Unit
/
C.I.F
Pric
e
Kg
China
C.I.F
Saudi
Arabia
1.09
South
Africa
0.53
Malaysia
Japan
Benin
France
Yemen
0.49
United
States
1.25
0.57
0.71
0.54
1.17
0.83
Cote
d'Ivoire
0.58
Lite
r
United
States
Germa
ny
Netherla
nds
Japan
Sweden
Italy
Jamaica
France
Belgium
C.I.F
0.74
0.98
0.91
0.74
United
Kingdo
m
0.88
0.98
0.89
0.98
0.82
0.89
Kg
Indone
sia
0.55
Vietnam
France
Japan
Italy
Poland
0.56
0.54
German
y
0.56
Thailand
C.I.F
Nether
lands
0.54
0.55
0.59
0.54
0.56
South
Korea
0.54
Kg
China
German
y
20.76
Indonesia
Brazil
Japan
25.09
23.17
21.41
Hong
Kong
24.52
France
19.96
Singapo
re
22.52
Thailand
C.I.F
United
States
17.47
23.47
29.69
Kg
India
Italy
Austria
Belgium
Portugal
Spain
France
22.57
172.06
37.24
164.77
Netherlan
ds
29.72
Thailand
C.I.F
United
States
81.20
29.10
473.05
44.06
47.44
Kg
Japan
India
Italy
United
States
Singapore
Australia
Mexico
Belgium
Croatia
C.I.F
667.98
70.72
851.50
United
Kingdo
m
351.23
162.02
626.11
557.71
139.50
1368.18
31.75
Kg
Italy
France
India
Japan
694.49
Switzerl
and
831.57
China
344.41
United
States
133.89
Belgium
C.I.F
Germa
ny
964.15
568.50
989.20
85.70
404.11
Netherla
nds
271.48
Kg
India
Jordan
Germany
Vietnam
Italy
France
25.98
81.92
Saudi
Arabia
2.61
Japan
C.I.F
United
States
7.90
889.03
8.15
N.Q
22.07
15.17
Netherla
nds
2.60
Kg
United
States
89.48
Belgiu
m
311.82
Ireland
Italy
Spain
Tunisia
China
Mexico
Japan
172.64
219.59
23.05
51.78
342.85
Netherla
nds
26.33
24.36
78.91
United
States
3.80
China
Belgium
France
Poland
Mexico
4.96
3.74
3.83
United
Kingdom
3.54
Italy
C.I.F
Germa
ny
4.07
3.02
3.25
3.07
Netherla
nds
3.14
Ite
m
C.I.F
Germa
ny
4.86
United
States
7.82
Italy
Netherla
nds
6.22
France
Japan
Brazil
Mexico
Spain
5.54
4.86
2.21
2.25
United
Kingdom
15.69
Ite
m
United
States
Austral
ia
Canada
Chile
Indonesia
Brazil
South
Africa
China
Colombia
C.I.F
49.36
239.39
976.54
N.Q
37.34
1660.68
1582.82
361.20
Ite
m
United
States
1243.0
1
Germa
ny
Russian
Federati
on
389.22
Brazil
France
Mexico
Japan
Italy
Netherla
nds
Spain
Poland
C.I.F
392020
401150
401199
401320
Top 10 Importing Countries
Kg
3.64
4.44
520299
520511
520512
520513
520514
520521
520523
520524
520532
520544
C.I.F
1.45
1.25
0.85
1.36
0.81
1.25
1.13
1.41
1.52
1.10
Kg
China
Italy
Belgium
France
1.13
1.52
1.43
1.46
Hong
Kong
0.96
Netherlan
ds
1.89
Thailand
C.I.F
Germa
ny
1.43
Switzerla
nd
2.07
United
States
1.41
Kg
China
Hong
Kong
Malaysia
Egypt
Turkey
Germany
El
Salvador
Pakistan
Sri Lanka
C.I.F
2.52
2.68
Dominic
an
Republic
2.95
3.93
2.44
2.22
2.74
2.71
4.06
2.95
Kg
China
Turkey
Hong
Kong
Mexico
South
Korea
El
Salvador
Guatema
la
Japan
Portugal
C.I.F
2.88
2.92
3.10
2.73
Russian
Federati
on
2.13
3.15
3.02
3.75
3.23
3.20
Kg
China
South
Korea
Turkey
Hong
Kong
Guatemal
a
Portugal
Spain
Peru
Colombia
C.I.F
3.79
El
Salvad
or
3.64
3.66
3.65
3.29
4.03
3.52
3.52
3.38
3.81
Kg
China
Hong
Kong
Japan
South
Korea
Indonesia
Portugal
Turkey
Sri Lanka
Italy
C.I.F
3.42
3.41
Russian
Federati
on
2.61
3.77
4.66
5.52
4.13
4.66
3.79
4.46
Kg
Hong
Kong
6.71
Malaysia
Mauritiu
s
5.29
Egypt
China
Israel
3.94
3.78
3.02
Philippin
es
3.94
Vietnam
C.I.F
Sri
Lanka
4.32
Guatemal
a
4.52
Kg
China
Peru
Vietnam
Turkey
3.96
Guatema
la
4.52
Italy
3.67
Hong
Kong
3.99
Portugal
C.I.F
South
Korea
4.07
4.73
3.63
4.10
3.81
Kg
China
Portugal
Japan
Italy
France
4.38
4.40
5.16
5.12
7.11
Indonesi
a
3.36
Germany
3.88
South
Korea
4.47
Turkey
C.I.F
Hong
Kong
4.07
Kg
Hong
Kong
China
Portugal
Turkey
South
Korea
Germany
Belgium
Italy
Spain
C.I.F
3.86
3.03
3.63
3.42
3.46
4.54
Russian
Federatio
n
3.88
3.94
4.25
4.34
Kg
Hong
Kong
4.84
Italy
China
Portugal
Japan
Turkey
Croatia
4.09
5.43
5.27
5.97
0.04
South
Korea
4.80
France
8.00
Mauritiu
s
4.17
Mexico
Indonesi
a
9.62
Tunisia
Morocco
Germany
Sri Lanka
China
Vietnam
Romania
C.I.F
Hong
Kong
6.36
14.19
9.42
11.06
12.64
10.46
12.64
14.03
Kg
China
Turkey
Italy
Kenya
Pakistan
India
Egypt
2.49
2.62
United
States
4.39
Romania
C.I.F
Indonesi
a
2.70
2.90
2.71
5.27
2.23
2.68
2.35
Kg
United
States
Vietna
m
German
y
China
Indonesi
a
Turkey
Italy
Spain
Mexico
C.I.F
1.67
1.80
1.77
1.85
1.62
1.70
Russian
Federatio
n
1.62
1.81
1.82
1.90
Kg
China
Turkey
India
Italy
Pakistan
Romania
Nepal
3.49
2.73
Indonesi
a
2.76
Spain
C.I.F
United
States
4.44
4.44
4.41
2.48
2.97
1.53
Kg
South
Korea
Hong
Kong
France
Poland
Argentina
United
States
Austria
3.67
4.67
8.17
5.66
5.93
Ethiopia(
excludes
Eritrea)
2.14
Italy
C.I.F
Russian
Federati
on
4.06
6.97
5.56
9.89
Kg
South
Korea
3.08
Turkey
Portugal
Colombi
a
3.14
Egypt,
Arab Rep.
2.32
Japan
China
Spain
2.77
El
Salvador
2.90
3.85
3.05
3.45
United
States
3.51
Japan
Italy
Israel
Belgium
Russian
Federati
on
Spain
Kuwait
China
Brazil
Germany
C.I.F
520932
550130
550320
550330
550932
550953
Kg
C.I.F
610323
Ite
m
12.64
3.98
2.62
3.36
1.32
4.32
Indonesi
a
3.98
4.90
7.95
610520
610590
610910
610990
611020
611030
611120
621490
630190
C.I.F
6.90
5.24
3.61
5.54
14.56
2.39
17.90
8.32
6.77
6.90
Ite
m
C.I.F
United
States
0.01
Japan
Canada
Hong
Kong
0.01
France
0.00
0.01
United
Kingdom
0.02
Belgium
0.01
Australi
a
0.00
Brazil
0.01
German
y
0.01
Ite
m
C.I.F
France
Singapo
re
5.89
United
States
10.89
South
Africa
2.87
Hong
Kong
18.28
Malaysia
China
Germany
Italy
20.10
Portug
al
11.04
6.32
108.69
11.04
19.58
Ite
m
C.I.F
United
States
1.81
Germa
ny
5.06
France
Japan
Spain
Italy
Belgium
5.06
2.92
3.71
2.90
Hong
Kong
3.97
Canada
3.48
Netherlan
ds
3.78
Ite
m
C.I.F
Germa
ny
6.92
United
States
2.41
Japan
France
Spain
Belgium
Italy
6.27
4.45
6.30
6.39
Hong
Kong
3.97
Canada
6.92
Netherla
nds
6.21
Ite
m
C.I.F
United
States
3.86
Germa
ny
10.28
Hong
Kong
6.03
Japan
France
Italy
Spain
Canada
Belgium
10.28
8.89
9.86
6.94
Netherla
nds
9.83
6.05
9.53
Ite
m
United
States
Japan
German
y
France
Hong
Kong
Spain
Italy
Canada
Belgium
C.I.F
4.78
10.55
10.55
7.98
5.79
7.01
8.61
6.87
8.12
Russian
Federati
on
8.44
Kg
France
Hong
Kong
20.84
Spain
Japan
Canada
25.18
German
y
24.35
Italy
C.I.F
United
States
20.61
14.98
31.09
29.00
Saudi
Arabia
4.42
Netherla
nds
17.45
Ite
m
C.I.F
Germa
ny
4.34
France
Japan
Spain
Italy
4.34
3.87
3.62
United
Kingdom
12.45
Belgium
4.71
United
States
2.84
4.14
Netherla
nds
3.99
Switzerla
nd
4.34
Kg
Saudi
Arabia
2.34
Algeria
Jordan
India
Vietnam
Qatar
Germany
Yemen
1.74
4.30
N.Q
N.Q
United
States
6.45
3.74
6.94
1.75
Netherla
nds
6.51
Kg
United
States
Japan
German
y
France
Canada
Italy
Australia
Spain
Netherla
nds
C.I.F
7.15
8.98
9.38
9.43
6.60
8.42
Russian
Federatio
n
5.52
7.13
8.34
6.29
Kg
France
Germa
ny
Italy
Panama
United
States
Singapore
Algeria
Spain
Belgium
C.I.F
17.01
11.27
22.78
6.26
16.65
Russian
Federatio
n
5.20
9.90
1.65
11.82
11.48
Kg
United
States
10.90
Germa
ny
12.82
Japan
France
India
Canada
Italy
Australia
Sweden
14.74
11.56
14.72
13.69
11.49
9.20
Netherla
nds
7.41
United
States
2.52
South
Korea
2.14
German
y
2.71
Canada
Japan
Singapore
Mexico
Thailand
Malaysia
3.30
Saudi
Arabia
4.56
2.06
3.39
4.16
4.10
2.30
Kg
Singap
ore
Germa
ny
United
States
Saudi
Arabia
Switzerl
and
France
Japan
Canada
Austria
C.I.F
3.32
2.18
2.29
2.13
3.26
2.52
2.01
2.42
2.43
Russian
Federati
on
2.39
Kg
Germa
ny
Austral
ia
United
States
South
Korea
Japan
Saudi
Arabia
France
Norway
Switzerla
nd
C.I.F
2.79
4.22
3.03
2.15
1.95
2.11
2.20
3.72
Russian
Federati
on
3.23
Kg
United
States
2.95
Germa
ny
3.98
China
Mexico
Canada
France
Thailand
Brazil
Japan
8.47
0.77
0.73
4.72
5.95
5.45
Netherla
nds
3.89
United
States
3.49
China
Mexico
Canada
Japan
France
Thailand
Brazil
9.87
German
y
4.30
0.23
1.00
5.53
6.03
7.27
6.19
Netherla
nds
3.08
Germa
ny
France
Spain
United
States
Russian
Federati
Belgium
Italy
China
Netherla
nds
Czech
Republic
C.I.F
630260
630299
630492
C.I.F
730791
Kg
C.I.F
730840
730890
731815
C.I.F
731816
Kg
C.I.F
731819
Kg
24.36
0.01
2.87
4.48
14.54
3.21
2.86
on
731822
C.I.F
8.41
5.56
7.77
8.21
2.72
3.90
5.63
21.71
4.81
6.65
Kg
United
States
4.07
China
Mexico
Thailand
Canada
Vietnam
2.37
14.29
2.77
N.Q
Indonesi
a
13.87
Saudi
Arabia
10.50
Brazil
22.33
German
y
8.06
Kg
United
States
Germa
ny
Mexico
Thailand
South
Korea
France
China
Japan
Egypt
C.I.F
4.85
4.17
0.21
10.64
4.74
4.63
12.53
3.28
Russian
Federati
on
8.02
Kg
United
States
Germa
ny
France
Canada
Netherla
nds
Belgium
Mexico
Austria
Italy
C.I.F
19.05
17.37
17.14
19.05
17.50
17.46
19.15
Russian
Federati
on
9.38
27.74
16.98
Kg
United
States
Germa
ny
Canada
France
China
Japan
Mexico
Netherla
nds
Italy
C.I.F
12.56
8.66
Russian
Federati
on
4.93
12.56
12.26
9.77
10.08
5.70
13.78
7.87
Kg
United
States
Germa
ny
France
Canada
Singapore
Austria
Switzerla
nd
Netherla
nds
Denmark
C.I.F
N.Q
10.44
12.08
N.Q
Russian
Federati
on
7.04
N.Q
18.99
35.56
9.47
28.33
Kg
United
States
Canada
Thailand
German
y
Singapore
Australia
Japan
France
Belgium
C.I.F
N.Q
Russia
n
Federa
tion
8.03
N.Q
24.40
6.79
N.Q
5.36
5.73
5.22
5.89
Ite
m
C.I.F
China
France
South
Korea
N.Q
Italy
Brazil
Belgium
Canada
Turkey
8769.8
3
Hong
Kong
German
y
N.Q
5014.77
6930.84
8548.01
5407.70
Ite
m
United
States
4443.5
0
United
States
India
Turkey
C.I.F
16.66
32.83
N.Q
Ite
m
United
States
C.I.F
1242.7
2
United
States
Russia
n
Federa
tion
3463.7
4
France
C.I.F
732690
820320
820411
820559
820570
840890
847290
850421
870190
Ite
m
870899
871200
871491
871494
Russian
Federati
on
19.73
Singapo
re
Germany
China
27.07
N.Q
336.16
394.12
131.05
5258.40
Algeria
German
y
United
Kingdo
m
France
Saudi
Arabia
Canada
Japan
Mexico
946.38
6389.75
1668.44
347.72
6389.21
1528.80
6389.82
0.29
Canada
German
y
Belgium
Poland
Italy
Australia
Spain
27648.57
42122.59
United
Kingdom
34473.9
1
Poland
38177.10
China
29441.8
5
Belgium
7.84
7.44
7.24
7.31
6.32
China
Italy
Thailand
13.82
10.53
9.70
Switzerla
nd
551.87
24968.
60
United
States
43642.
55
Canada
39016.7
7
German
y
31893.9
3
Mexico
C.I.F
9.67
9.83
6.97
9.83
United
Kingdo
m
43786.6
8
Russian
Federati
on
7.86
Kg
Spain
German
y
9.04
Mexico
France
Canada
C.I.F
United
States
12.30
14.53
9.07
13.66
United
Kingdom
8.91
Ite
m
C.I.F
United
States
93.55
Japan
Netherla
nds
226.69
France
Belgium
Australia
Spain
Canada
103.54
German
y
N.Q
155.77
272.23
168.30
231.92
169.12
Kg
Germa
ny
United
States
Hong
Kong
Netherla
nds
Italy
France
Japan
Spain
Portugal
C.I.F
25.60
43.51
19.05
27.67
9.41
20.94
21.57
12.66
9.42
Russian
Federati
on
3.42
Kg
Singap
ore
Germa
ny
China
Netherla
nds
United
States
Italy
Brazil
France
Poland
Japan
C.I.F
870880
12.70
12982.1
1
France
Japan
5273.55
7.80
Kg
5.20
France
871496
C.I.F
N.Q
28.26
25.50
27.69
40.58
12.59
3.73
19.59
13.40
15.93
Kg
Singap
ore
N.Q
Germa
ny
23.32
United
States
42.42
Netherla
nds
14.46
China
Italy
Spain
France
Brazil
Japan
10.68
10.79
15.93
13.82
3.26
14.78
Nether
lands
12.89
Singapo
re
N.Q
China
France
Italy
Spain
Belgium
16.65
24.20
United
States
28.67
Indonesia
C.I.F
Germa
ny
22.10
3.45
16.53
13.27
25.71
Ite
m
United
States
Canada
France
German
y
Japan
Belgium
Australia
Netherla
nds
Switzerla
nd
C.I.F
N.Q
N.Q
N.Q
N.Q
N.Q
N.Q
N.Q
N.Q
Russian
Federati
on
0.45
C.I.F
871499
950699
Kg
N.Q
APPENDICES: 5.1- TIME AND ASSOCIATED COSTS IN STARTING A NEW BUSINESS IN PUNJAB
No.
Procedure
Time to
Associated Costs
Complete
1
Obtain director identification number (DIN) 1 day
INR 100
online from the Ministry of Corporate Affairs
portal (National)
2
Obtain digital signature certificate online
3 days
INR 1,500
from private agency authorized by the
Ministry of Corporate Affairs (National)
3
Reserve the company name online with the
2 days
INR 500
Registrar of Companies (ROC) (National)
4
Stamp the company documents at the State
1 day
INR 1,515 (INR 500 for MOA + INR
Treasury (State)
1,000 for AOA for a share capital
above 100,000 + INR 15 for stamp
paper for declaration in Form 1)
5
Get the Certificate of Incorporation from the 5 days
INR 13,700 (filing fee on MOA:
Registrar of Companies, Ministry of
INR 12,400 + filing fee on AOA:
Corporate Affairs (National)
INR 200 + filing fee on Form 1:
INR 200 + filing fee on Form 18:
INR 200 + filing fee on Form 32:
INR 200 + POA from 5
subscribers: INR 500)
6
Make a seal (Private)
1 day
INR 350 (costs starts at INR 350
for seal, depending on number of
words to be engraved)
7
Obtain a Permanent Account Number (PAN) 15 days
INR 67 (INR 60 application fee +
from an authorized franchise or agent
12.36% service tax + INR 5 for
appointed by the National Securities
application form, if not
Depository Ltd. (NSDL) or the Unit Trust of
downloaded)
India (UTI) Investors Services Ltd., as
outsourced by the Income Tax Department
(National)
8
Obtain a Tax Account Number (TAN) for
14 days
INR 57 (INR 50 application fee +
income taxes deducted at the source from an
12.36% service tax)
authorized franchise or agent appointed by
the National Securities Depository Ltd.
(NSDL), as outsourced by the Income Tax
9
10
11
12
Department (National)
Register with the Office of Inspector, Shops,
and Establishment Act (State/Municipal)
Register for Value-Added Tax (VAT) at the
Commercial Tax Office (State)
Register with Employees' Provident Fund
Organization (National)
Register for medical insurance at the
regional office of the Employees State
Insurance Corporation (National)
15 days
INR 100
15 days
INR 2,175 (INR 2000 registration
fee + INR 25 Court fee + INR 150
stamp paper)
No cost
10 days
APPENDICES: 5.2 TIME AS ASSOCIATED COSTS FOR DEALING WITH CONSTRUCTION PERMITS
IN PUNJAB
No. Procedure
Time to
Associated Costs
Complete
1 Obtain land-use certificate from the Chief
15 days
INR 20,165 (fees for the certificate
Town Planners Office in Ludhiana
of INR 1,815 per 100 square
(Municipal)
yards)
2 Obtain building-plan approval from Ludhiana 40 days
INR 70,000 (INR 5 per square
Municipal Corporation (Municipal)
foot)
3 Receive inspection by the Ludhiana Municipal 1 day
No cost
Corporation during construction of
foundation (Municipal)
4 Receive inspection by the Ludhiana Municipal 1 day
No cost
Corporation during the construction of plinth
(Municipal)
5 Apply for a "no-objection certificate" (NOC)
1 day
No cost
from the Fire Department (Municipal)
6 Receive a "no-objection certificate" (NOC)
3 days
No cost
from the Fire department (with inspection)
(Municipal)
7 File a completion certificate and apply for an 1 day
No cost
occupancy permit at Ludhiana Municipal
Corporation (Municipal)
8 Receive Inspection from the Ludhiana
1 day
No cost
Municipal Corporation (Municipal)
9 Obtain occupancy permit from the Ludhiana
30 days
No cost
Municipal Corporation (Municipal)
10 Apply for permanent electricity connection at 1 day
INR 50 (application form INR 50)
Punjab State Electricity Board (PSEB) (State)
* Apply for permanent water and sewerage
1 day
INR 1,000 (connection fee of INR
11 connections at the Punjab Water Supply and
500 for water + INR 500 for
Sewerage Board (PWSSB) (State)
sewerage)
* Apply for phone connection at Bharat
1 day
INR 500 (flat installation charge)
12 Sanchar Nigam Limited (BSNL) (National)
* Obtain a test report by an electricity
1 day
No cost
13 contractor listed with PSEB (State)
*
14
*
15
Receive an on-site inspection by water and
1 day
sewerage provider (PWSSB) (State)
Obtain permanent electricity connection from 45 days
PSEB (State)
* Obtain permanent water and sewerage
30 days
16 connections from PWSSB (State)
* Obtain phone connection (with inspection)
5 days
17 from the BSNL (National)
* Takes place simultaneously with another procedure.
No cost
INR 168,500 (connection fee of
INR 1,000 per kW + metering
equipment INR 28,500)
No cost
No cost
APPENDICES 5.3: TIME AND ASSOCIATED COSTS FOR REGISTERING A PROPERTY IN PUNJAB
No. Procedure
Time to
Associated Costs
Complete
1 Check for encumbrances at the 5 days
INR 7,000 (including lawyer fees)
office of the Subregistrar of
Assurances (State)
2 The final sale deed is prepared 1 day
INR 10,500 (lawyer fees)
by the buyer or his lawyer
(Private)
3 Stamp, execute, and register
1 day
INR 197,990 (INR 10,000 for registration fees +
the final sale deed at the
9% of the property value for stamp duty, which
Subregistrar’s Office (State)
includes 3% of the property value for
development charges)
4 Apply to the Circle Revenue
60 days
INR 6,500 (including lawyer fees)
Office for mutation of the
property title (State)
APPENDICES 5.4: COST TO EXPORTS AND IMPORTS FROM LUDHIANA (PUNJAB)
Indicator
Ludhiana
India
South Asia
Documents to export (number)
8
8
Time to export (days)
21.0
33.4
Cost to export (US$ per container)
1,105.3
1,922.9
Cost to export (deflated US$ per container)
..
1,922.9
Documents to import (number)
9
9
Time to import (days)
25.0
34.4
Cost to import (US$ per container)
1,154.3
2,117.8
Cost to import (deflated US$ per container)
..
2,117.8
OECD
4
10.5
1,080.3
1,080.3
4
9.6
1,100.4
1,100.4
APPENDIX 5.5: ROAD LENGTH IN RELATION TO AREA AND POPULATION IN PUNJAB (AS ON
31ST MARCH, 2011)
State
Total
Road
Length
(In km.)
Area
(In Km)
Population* Road
Length
(2011)
(In Km)
(In ' 000)
Per
Per
one
100
Lakh
of
sq. km. Population
of
Area
Total
Length of
National
Highways
(In Km.)
Punjab
84193
50362
27704
167.18 303.90
1557
India
3790342 3287240 1210193
115.30 313.20
70934
(Excluding
JRY
Roads)
India
4690342 3287240 1210193
142.68 387.57
70934
(Including
JRY
Roads)
Note:
Population
as
per
Census
of
Source : Ministry of Road Transport and Highways, Govt. of India (ON291)
National
Highways
(In km.)
Per Per
one
100 Lakh
of
sq.
Population
km.
of
Area
3.09 5.62
2.16 5.86
2.16
5.86
India
APPENDIX 5.6: FACILITIES ESTABLISHED BY AAI AT AIR CARGO TERMINAL
Intl Air Cargo Terminal all regulatory/facilitating agencies under one roof
Exclusive storage processing & examination areas for import, export & TP Cargo
Exclusive unaccompanied baggage unit
ETV system having built in ULD weighing facility
Cargo Apron for freighter
X-ray screening
Radioactive material shed
Hazardous Cargo shed
Live Animal Shed
Cold Storage / Walk in Coolers
State of Art Centre for Perishable Cargo
Weigh Scale
CCTV monitoring
Restaurant/canteen
Post Office
Bank
Amritsar
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
2011
Strong room for valuable cargo
PA system with channel music
Vehicle Parking
Photocopier
Bonded Trucking facilities
Exclusive Public waiting lounge
Seissor Lift(for ULD movement)
Automated Storage & Retrieval System
Explosive Trace Detector (ETD)
Yes
Yes
Yes
APPENDIX 5.7 : LIST OF WAREHOUSES IN PUNJAB MAINTAINED BY CENTRAL WAREHOUSING
CORPORATION
Abohar-I
Abohar-II
Ajitwal
Amritsar
Amritsar ACC
Amritsar Bd
Bhatinda
Bhogpur
Chanalon
Fazilka
Garshankar
Gurdaspur
Hoshiarpur
Ludhiana
Mandi Gobindgarh
Mansa
Moga-I
Moga-II
Mohali
Muktsar
Nabha
Nabha BD
Pathankot BD
Ropar
Sirhind
Chandigarh
APPENDIX 5.8: LIST OF EXISTING TESTING & INSPECTION FACILITIES BY EIC IN PUNJAB
No
Name and Contact Details
Scope Of Approval
MILK PRODUCTS
1
M/s Chanakya Dairy Products Skimmed Milk Powder (SMP) , Ghee,Additional Facilities:Limited.
Whole Milk Powder(WMP) and Paneer
2
3
4
M/s Crown Milk Specialities
Pvt. Ltd.
M/s Best Milk Products Pvt.
Ltd.
M/s Punjab State Cooperative Milk producers''''''''
Federation Limited
5
M/s Jagatjit Industries Ltd.
6
M/s Ludhiana District Co-Op.
Milk Producers Union Ltd,
M/s Bhatinda District Co-Op
Milk Producers Union Ltd,
M/s. Nestle India Ltd.
7
8
SMP, Ghee, Acid and Rennet Casein, De-mineralized Whey
Powder and Butter(Salted & White)
Skimmed Milk Powder, Whole Milk Powder, White Butter ,
Dairy Whitener & Ghee.
UHT Products (Plain Milk: Toned Milk, Double Toned Milk,
Fermented Milk Products: Sweetened flavoured Lassi,
Namkeen Lassi, Sweetened flavoured milk : Rose Milk,
Elachi Milk)
Skimmed Milk Powder, Whole Milk Powder & Ghee
Skimmed Milk Powder(SMP), Whole Milk Powder(WMP)
andGhee,
Skimmed Milk Powder(SMP), Whole Milk Powder(WMP)
andGhee,
Skimmed Milk Powders(SMP), Whole Milk Powder (WMP) ,
Milk Mixes, Ghee, Condensed Milk(SCM) AMF(Anhydrous
Milk Fat), Follow up Formula- Complementary Food
9
M/S Milk Foods Ltd.
10
M/s Milk Food Ltd.
HONEY
1
Little Bee Impex
2
3
M/s Kejriwall Bee Care India
Pvt. Ltd.
M/s Shakti Apifoods Private
Limited
Ghee, Skimmed Milk Powder, Whole Milk Powder, Dairy
Whitener, Casein, Demineralised Whey Powder, Lactose,
Whey Protein Concentrate
Skimmed Milk Powder Ghee, Dairy Whitener/Dairy
Creamer
Honey (Establishment for all countries including EU)
Honey (Establishment for all countries including EU)
Honey (Establishment for all countries other than EU)