Indian Import Data, Indian Import Ports, India Import Custom Duty
Indian Import Data: India Custom Data Seair Exim Solution Along with studying global demands of goods/services Indian Import Data details, Daily lists of Indian ports like jnpt, Delhi, Chennai,nahava sheva, Mumbai. India Import Data provided by SEAIR EXIM.
Broad Outline• India’s increased presence in the global economy accompanied by increasing integration with the developing Asia.• Other than with China , integration with the most dynamic segment of the region-South East Asia- has increased rapidly in the last few years.• But has India’s presence made a significant impact on developing Asian countries’ trade? If yes, where?• What is the nature of integration where India has a large presence?• What is the impact of India’s investment on developing Asia?
India’s Increasing Presence in the Global Economy India Relative to the World (Percentage Shares) 1985 1995 2000 2005 2006 Exports of goods and services (Constant 2000 US$)India 0.4 0.7 0.7 1.07 1.05 Imports of goods and services (constant 2000 US$)India 0.49 0.81 0.81 1.00 GDP (Constant 2000 US$)India 1 1.3 1.4 1.8 1.9 GDP, PPP (Constant 2005 international $)India 2.6 3.3 3.7 4.4 4.5
Trends in the direction of trade: Evidence of greater Integration with developing Asia Share of Indias imports Share of Indias exports60.0 60.055.0 50.050.045.0 40.040.035.0 30.030.0 20.025.020.0 10.015.010.0 0.0 1998 1999 2000 2001 2002 2003 2004 2005 2006 1998 1999 2000 2001 2002 2003 2004 2005 2006 Industrial countries Asian developing countries Industrial countries Asian developing countriesIndia’s integration with developing Asia evident in bothexports and import trends.
Pattern of Integration with Developing AsiaIncreasing importance of China and South-East Asia inIndia’s exports and imports.South Asia’s role much smaller- especially in India’simports.Integration with China, SE Asia dominating aspect ofintegration with dev. Asia
India’s Presence in South-East Asian countries’ TradeIncrease in India’s presence in South-East Asiancountries’ trade, especially in recent years.But India has not yet made a big impact in overall tradeof the countries of this region- accounts for maximum 3%of trade
India’s Presence in South Asian countries’ TradeIndia relatively more important for South Asiancountries.Significant increase in India’s share in the case of SriLanka, Nepal and Pakistan.India’s importance for Bangladesh more or less constant
Nature and Pattern of South AsianCountries’ Integration with India: Bangladesh and Sri Lanka
India’s Share in Bangladeshs Export and ImportBilateral trade doubled from 1998 to 2006. Large informaltrade implies integration with India more than that shown byrecorded trade.But, in both, India more important as a source of importsand less as a market for Bangladesh’s exports.
Reasons for Ballooning Trade Deficit Bangladesh’s trade regime more liberal in terms of the length of time, the coverage of items and pace, compared to India. Level of tariffs and other protective duties on imports in India, higher than in Bangladesh even in 2001 (Islam, 2004). Between 1985 to 1999, 50% appreciation of the Taka vis-à-vis the Rupee (World Bank, 2006), compared to its value in mid 1980s. Bangladesh’s exports heavily biased towards textiles and ready made garments. India is itself an exporter of similar products and hence a competitor.
Other reason: Ineffectiveness of SAPTA/SAFTA Restrictions contained in the trade agreements SAPTA & SAFTA (e.g. limited product coverage, existence of negative list, restrictive rules of origin) Also, the preferences accorded by India not much effective - are limited in terms of products that are of Bangladesh’s export interests. Para-tariff and non-tariff barriers, including restrictive rules of origin Rules of Origin (ROO) hinder Bangladesh’s exports to India. Quota fixed for textile exports by Bangladesh to India under trade agreement recently (since 2007) yet to be fully utilised.
Composition of Bangladesh’s Imports from India: 1998-2003 and 2004-2006• Basic necessities like cereal & other food items form a large part of imports in both periods.• Other imports: intermediate goods, (cotton yarn, petroleum products, etc.), machinery, vehicles etc.
Some Salient Features: Disaggregated data• Shift towards import of raw cotton and machines for processing textile fibres• India is one of the top-3 suppliers of textile machineries to Bangladesh in the world.• Bangladesh depends on imports of input and machinery for its textiles exports• It seems Bangladesh has been able to effectively use trade with India -by sourcing the required inputs and capital goods - in sustaining export of its most important foreign exchange earner - textiles and ready- made garments (RMG).
Composition of Bangladesh’s Export to India: 1998-2003 and 2004-2006• India is an important market for Bangladesh’s export of chemical fertilisers (urea), and its input ; anhydrous ammonia• Since 2004, of the important markets-Australia, USA, France, etc. India the single largest market• India accounted for nearly 88% of Bangladesh’s export of urea in 2007, from 10% in 1998.
Nature of Integration: ShallowSome diversification in Bangladesh’s exports to India. ButIndia not a large market in overall exports.Integration confined to mainly cross-border trade. Someincrease in investment-but sporadic and not given rise tomuch trade-investment nexus yet.Some change has begun. FDI Inflow in Bangladesh (US $ Million)FDI 2000 2005 2006India 8.4 2.7 1Global Total 578.6 845.3 490.3India’s share (%) 1.45 0.32 0.20
India’s increasing importance for Sri Lanka• In 1996, India replaced Japan as the largest source of imports to Sri Lanka.• India-Sri Lanka FTA (ISLFTA) implemented in 2000 and duty free access to Indian market by 2003 in many products.• India has become even more important both as a destination for Sri Lanka’s exports as well as a source of imports by Sri Lanka.• Growing importance of India in Sri Lanka’s exports: from 16th in 2000, 3rd largest export destination since 2003.• Growth in export earnings to India has far outstripped total export earnings for the country since 2001 and helped reduce
India’s Share in Sri Lankas Export and Import20.0 10.0 9.118.0 9.0 17.316.0 16.5 17.3 8.014.0 13.8 7.0 7.012.0 6.0 11.110.0 9.5 5.0 5.0 8.0 4.0 3.6 6.0 3.0 4.0 2.0 1.5 2.0 1.1 1.0 0.0 0.0 1999 2001 2003 2004 2002 2005 Indias Share in Sri Lankas Import from World Indias Share in Sri Lankas Export to World
Composition of Sri Lanka’s Exports to India: 1999-2002 and 2003-2005•Visible shift from agricultural to manufacturing goods.•Refined copper products and vansapati, main drivers of exportgrowth in period 2003-2005.•Some diversification in exports, rise of exports of electrical,electronic equipment - electric conductors and memory chips,between the two sub-periods
Strengths and weaknesses of Sri Lanka’s export success• Momentum in Sri Lanka’s exports to India, spilled over to items in India’s ‘negative list’-plastics, rubber articles, textile articles (Weerakoon, 2008)• New products –ceramics, value-added tea entered Sri Lanka’s exports to India (Kelegama, Mukherjee, 2007).• But, export success driven mainly by 2 commodities- copper articles and vanaspati• Likely to be more of ‘trade deflection’. The recently signed ASEAN-India FTA could pose challenge to Sri Lanka’s exports of these products to India.
Investment links in Trade• Integration with India has lead to inflow of FDI, in copper products, vanaspati, cement, automobile components, chemicals, electrical equipments.• India now 5th largest investor- accounts for 6% p.a.• Indian investment with a view to buy back for the duty free Indian market, has contributed to exports also.• Increased diversion of investment towards• --services• -within manufacturing towards, machinery and transport equips.• Growing opportunity for intra-industry links- joint ventures already in tyres, plans to set us automobile assembly operations (Kelegama, 2009).
Composition of India’s outward FDI and India’simportance in FDI Inflows in select developing Asian countries •Developed countries, together with Channel Islands (22%) and Mauritius (8%) accounted for 70% of India’s outward FDI between 2003-2007. •Within developing Asia, more developed countries like Singapore and Hong Kong together accounted for another 8%. •Therefore, barring countries like, Sri Lanka and Nepal, India’s share in other dev. Asian countries is meager. •Increase in India’s investment in Indonesia, Thailand, China in 2007, although very small share.
Some Tentative Observations: Possibilities of Future IntegrationIndia’s integration with SE economies is in a nascentphaseThe high rate of growth in trade (and investment tosome extent), in the last few years, perhaps indicatesstrong potential for future integration.In this, India-ASEAN FTA is also expected to play animportant role.But India-ASEAN FTA could pose significant challengefor Sri Lanka –India integration. That could also alterthe nature and pattern of integration witnessed thusfar.
Some Tentative Observations: Possibilities of Future Integration-contd.• The global financial crisis and recession in the Northern markets, also highlight the need for diversification of export markets. Recent trade info, shows the initial signs of this happening.• A lot however, depends on whether India can sustain its high growth path in the aftermath of the global crisis. Given increasing protectionism in the major markets of India’s exports, thin chances of exports reaching the heights it had witnessed earlier. In this scenario, India has to depend even more on domestic demand to spur growth. Whether or not that can happen is open to debate.