A PROJECT REPORT

ON
COMPOSITION AND DIRECTION OF INDIA'S FOREIGN TRADE
Submitted for partial fulfilment of the requirements for the award of the degree
of
BACHELOR OF BUSINESS ADMINISTRATION
BY
SHALINI
(1810101070)

Under the guidance of

DR. HITENDRA SHUKLA

(ASSOCIATE PROFESSOR)
Invertis University, Bareilly,

INVERTIS UNIVERSITY, BAREILLY (UP)

SESSION 2018-2021

1
 CERTIFICATE

TO WHOM IT MAY CONCERN

This is to certify that SHALINI student of BBA-VI th Semester in our Institute has
Successfully completed his project work entitled to “COMPOSITION AND DIRECTION
OF INDIA'S FOREIGN TRADE” for the partial fulfilment of degree of Bachelor of
Business Administration for the session 2018-2021.

Dr. Manish Gupta MRS. SHILPI DIXIT DR. HITENDRA SHUKLA

(Dean Management) (HOD,BBA) (Associate Professor)

2
 Student Declaration

I SHALINI a Bonafide student of BBA in Invertis University, Bareilly would like to declare
that the project entitled “COMPOSITION AND DIRECTION OF INDIA'S FOREIGN
TRADE” submitted by me in partial fulfilment for the requirement in Degree of Bachelor of
Business Administration, is my original work.

Place: Bareilly

Date: Signature of the candidate

3
 ACKNOWLEDGEMENT
Preservation, inspiration and motivation have played a key role in any venture. In the present
world of cutthroat competition project is likely a bridge between theoretical and practical
working, willingly I have prepared this project.

I feel highly delighted with the way dissertation report on the topic “COMPOSITION AND
DIRECTION OF INDIA'S FOREIGN TRADE” has been completed.

I express my utmost gratitude and indebtedness to god and to all who have contributed in
some way or the other and been linked with the project from day one.

I express my sincere gratitude to DR. HITENDRA SHUKLA without whose guidance,

keen interest and regular encouragement my project would not been compiled.

From the core of my heart, I express my sincere thanks to MRS. SHILPI DIXIT (Head of
Department of BBA ) Mr. Tarun Gupta and Invertis
University for encouragement and guidance.

I am extremely grateful to my parents, and all my friends for their unconditional

support and ready assistance.

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 Table of contents
S.no. Particulars Page no.

1 Title Page 1

2 Certificate 2

3 Declaration 3

4 Acknowledgement 4

5 Table of Content 5

6 List of Table 6

7 List of Figure 7

8 Chapter-1 Introduction 8-13

9 Chapter-2 Literature Review 14-18

10 Chapter-3 Research Objective, Research Methodology 19-21

and Research Design

11 Chapter-4 Data Interpretation and Analysis 21-32

12 Chapter-5 Research Findings 33-35

13 Limitation/Conclusion 36

14 References 37

16 Project guide comments 38

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 LIST OF TABLES

S.no. Name of Table Page

no.
4.1 India’s Export to Whole world 23

4.2 India’s Import with Whole world 24

4.3 India’s Export to All countries 25

4.4 India’s Import with all countries 26

4.5 India’s Import Products 27

4.6 India’s Import with Brazil 28

4.7 India’s Export with Brazil 29

4.8 India’s Import to USA 30

4.9 India’s Export to USA 31

4.10 India’s Export & Import with China 32

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 LIST OF FIGURES

S.no. Name of Figure Page

no.
4.1 Graphical Representation of India’s Export to Whole world 23

4.2 Graphical Representation of India’s Import with Whole 24

world
4.3 Graphical Representation of India’s Export to All countries 25

4.4 Graphical Representation of India’s Import with all countries 26

4.5 Graphical Representation of India’s Import Products 27

4.6 Graphical Representation of India’s Import with Brazil 28

4.7 Graphical Representation of India’s Export with Brazil 29

4.8 Graphical Representation of India’s Import to USA 30

4.9 Graphical Representation of India’s Export to USA 31

4.10 Graphical Representation of India’s Export & Import with 32

China

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 CHAPTER I

INTRODUCTION

8
Composition of trade means a study of the goods and services of imports and exports of a
country. In other words, it tells about the commodities of imports and the commodities of
exports of a country. Therefore it indicates the structure and level of economic
development of a country. Developing countries export raw materials, agricultural products
and intermediate goods; developed countries export finished goods, machines, equipments
and technique.

Direction of trade means a study of the countries to whom the exports are made and from
whom the imports are made.

9
Composition of Imports of India-
Imports of India may be divided into three parts namely capital goods, raw materials and
consumer goods.

Imports of capital goods

Capital goods include metals, machines and equipments, appliances and transport
equipments, and means of communications. These goods are essential for industrial
development of the country. Imports of these goods amounted to Rs.356 crore in 1960-61
which increased to Rs.26, 532 crore in 1997-98.

Imports of raw materials and intermediate goods

It includes the imports of cotton, jute, fertilizer, chemicals, crude oil etc. A number of raw
materials and intermediate goods have to be imported during the process of economic
development. If amounted to Rs.527 crore in 1960-61 which increased to Rs.13, 966 crore
in 1985-86. Petroleum products include crude oil, petrol and lubricating oil. Imports of
these products have ever been increasing. In 1960-61, imports of these products amounted
to Rs.69 crore which increased to Rs.30, 538 crore in 1997-98. Import of petroleum
products constitutes about 23 percent of our total imports. Fertilizers are an important input
for agriculture. Chemical products are an important input for industrial development. The
import of these products is continuously increasing in India. In 1960-61 import of these
items amounted to Rs.88 crore only which increased to Rs.3755 crore in 1997-98.

Imports of consumer goods

It includes the import of food grains, electrical goods, medicines, paper etc., India faced an
acute shortage of food grains till the end of Third Five Year Plan. As a result, India had to
import food grains in large quantities. Import of food grains in 1960-61 was 3748 thousand
tonnes (Rs.181 crore). In 1997-98 it was 1399 thousand tones.
Now India has achieved self-reliance in food production.

10
 Direction or sources of imports of India
Sources of imports of India have undergone several important changes during the planning
period. Some important facts are as follows:

At the beginning of economic planning, we were importing from selected countries only.
Now the picture has changed. We import different goods and services from different
countries of the world. At present we get our imports from almost all the countries of the
world. For the purchase of machines and equipments, we depend mainly on OECD
(Organization for Economic Cooperation and Development) countries and East European
countries. For the supply of food grains and petroleum products, we depend on OPEC (Oil
Producing and Exporting Countries) countries. The OECD countries supply largest part of
our imports. In 1997-98 out of the total imports of Rs.1,51,553 crore, the imports of
Rs.75,593 crore were made (49.9%) from these countries. Other important suppliers of our
imports are USA, Belgium, Germany, Japan and Britain.

Composition of exports of India

Exports of India may be divided into two parts I) Exports of traditional items and ii)
Exports of non-traditional items

Exports of traditional items

It includes the exports of tea, coffee, jute, jute products, iron ore, species, animal skin,
cotton, fish, fish products, mineral products etc. At the beginning of the planning era, their
items contributed about 80 percent of out total exports. Gradually, the contribution of these
items is declining and that of non-traditional items is increasing.
At present the contribution of traditional items is about 18.8% in our total exports.

Non-traditional items
It includes the export of sugar, engineering goods, chemicals, iron and steel electrical goods,
leather products, gems and jewellery. There is a significant change in the pattern of exports
of India during recent years. India has started to export a number of non-traditional items to
a number of countries of the world. Contribution of these items is gradually increasing in
total exports of India and shows a declining trend during some years also. Some facts to
illustrate the changes are given below:

11
Agriculture and allied products which constituted 20.4 percent of total exports in
1996-97, decreased to 18.8 percent in 1999-2000. ii) Ores and minerals which constituted
3.5 percent of total exports in 1996-97, decreased to 3 percent in 19992000. iii)
Manufactured good which contributed 73.4 percent of total exports in 199697, increased to
75.7 percent in 1999-2000. iv) Crude and petroleum products constituted 1.4 percent of total
exports in 1996-97 but decreased to 1.0 percent in
1999-2000. v) With regard to other items of exports which constituted 1.2 percent in 1996-
97 increased to 1.3 percent in 1999-2000.

Direction of exports of India

During the planning era, several important charges have taken place in the destination of
exports of India. At present, we deal with about 180 countries including many developed
countries. Our major exports are directed towards the following countries:

OECD countries (Belgium, France Germany, U.K. North America, Canada, USA, Australia
and Japan). Our exports which constituted percent of the total exports in 1990-91 increased
to 55.7 percent in 1999-2000.

OPEC countries (Iran, Iraq, Kuwait, Saudi Arabia etc.). Our exports which constituted 5.6
percent of the total exports in 1990-91 increased to 10.0 percent in 1999-2000.

Eastern Europe (GDR, Romania, Russia etc.). Our exports which constituted 17.9 percent in
1990-91 decreased to 3.1 percent in 1999-2000.

Other LDC's (Africa, Asia, Latin America). Our exports onstitute 16.8 per cent in 1990-91,
increased to 28.2 percent in 1999-2000.

To sum up, during the last five decades, significant changes have been observed in the
volume, composition and direction of India's trade. Most of these changes have been in
consonance with the development needs of the economy.

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BRICS" is a grouping acronym that refers to the countries of Brazil, Russia, India, China
and South Africa. U is typically rendered as "the BRICs" or "the BRIC countries" or
alternatively as the "Big Four". The BRICS group has existed as a concept since 2001 Jim
O'Neill'''^, a Goldman Sachs economist in his paper , identified the alliance of Brazil,
Russia. India and China as rising economic powers. The paper predicted that the BRIC
nations combined would assume an inexorably imperative part in the global economy.
Another paper by Goldman Sachs^'^in 2003 supported the prior findings. The paper has
argued that since the BRIC countries are the most fast developing emerging economies in
the world, it is anticipated that in the coming years, the BRIC economies could turn into a
significant power driving the global economy. With the inclusion of South Africa in the
group, the BRIC expanded to BRICS.

BRICS countries account for a share of about 30 % of the world GDP in PPP terms in
2013. This is expected to rise significantly in the near future. Significant positive changes
have taken place in all the BRICS countries over the last two decades (1990-2010). The
economic size in nominal terms (US dollars) has increased manifold. The increasing trend
in GDP is reflected further by a significant increase in per capita income over the last two
decades. These have brought inperceptive changes about the potential and importance of
BRICS in reshaping the globaleconomic order.' The BRICS now increasingly recognized
as engine of the global recoveryprocess and occupy a significant place in global economic
policy making.

13
 Chapter II

LITERATURE REVIEW

14
2. LITERATURE REVIEW

2.1. Aggarwal Raj' (1999) in his book "Indian Foreign Trade" analyzed composition and
direction of Indian Foreign Trade for the period 1994-96. Significant variations in the
growth rates of exports of different categoriesbrought about a proclaimed change in the
composition of India's exports during April-September 1996 contrasted with the relating
period in 1995. An increment has been seen in the share of primary products in total exports
while decline in the share of manufactured goods over the years from 78.1 percent in 1994-
95 to 73.5 percent in April-September, 1996. The share of crude oil and petroleum products,
ores and minerals, and others stayed pretty much unaltered. High growth was seen in the
imports of manufactures and newsprint, paper board, fertilisers, edible oils, and capital
goods during the period under study. An increase of 29 percent has been registered in
imports of pearls, valuable and semi valuable stones in 1995-96. However, a sharp decrease
has been observed in the imports of cereals and transport equipment. Rapid growth in POL
imports account for increase in total imports bill. The study gives a clear indication towards
diversification in the direction of India's foreign trade during the study period.

2.2. Alessandrini Michele, Fattouh Bassam and Scaramozzino Pasquale^(2007) in their work
"The changing pattern of foreign trade specialization in Indian manufacturing" examined
that since the mid-1980s, products with low-technology commanded the categories for
which India showed the largest level of trade specialization. By difference, high-technology
items were transcendent among the categories for which India was import-subordinate.
Essentially, India encountered a change in the level of specialization in probably the most
element divisions of global trade.

2.3. Bhat T.P" (2011) in his study "Structural Changes in India's Foreign Trade" made an
analysis of changes in India's foreign trade structure. The study reveals that in the post-
reform period increase in imports being more than the increase in exports resulted in
tremendous deficits in India's current account. Till 1995-96, little changes took place in
India's export composition yet some critical changes have happened in the later years. The

15
movement has not been radical. The export of agriculture and related products declined
while share of clothing chemicals and engineering products increased; then again, these
movements are not extensive. Food products, precious jewellery and textile products keep
on representing a large portion of India's merchandise exports. This structure shows early
phases of industrialization. India's trade in manufacturing experienced constrained basic
changes over the last two decades and it is still in view of customary complementarities

2.4. Chandran Sarath^'* (2010) in his work "Trade Complementarity and Similarity between
India and ASEAN Countries in the context of the RTA" used Trade Intensity Index(Til) and
Revealed Comparative Advantage (RCA) Index to see trade complementarity and Similarity
between India and ASEAN countries. India had advantage in some manufactured items like
chemicals, iron and steel, gems / jewellery and can export them to many ASEAN countries.
ASEAN has comparative advantage in Electrical and Electronic components and India can
import them from ASEAN.

2.5. Das and Pradhan^' (2014) in their paper "India-Gulf Trade Relations" analyzed
comparative advantage of India with the Gulf region using the SITC Classification. The
RCA 24 analysis suggests that India and the Gulf countries do not compete in many areas of
merchandise trade except the petroleum and chemical sectors, and thus that there are
potential economic benefits to be gained from specialization following bilateral trade
liberalization.

2.6. Dikshit Pratima^^(2002) in her work "Dynamics of Indian Export Trade" studied the
structural changes in direction of India's exports for the period 1960-61 to 1998-99. The
striking feature of direction of Indian exports was, that in spite of all efforts to diversify the
directional content of exports, 50 percent of the exports still went to the developed countries
including the East European countries and of this, U.S.A was the biggest partner. India's
exports to the developing countries has been growing steadily and exports to the countries of
S-E Asian countries- Indonesia, Malaysia, Hong Kong, South Korea, Singapore, Thailand
and Taiwan constituted 11.1 percent of the total exports in 1991-92, which increased to 15.6
percent in 199596. Apart from the structural change in India's exports with reference to their

16
direction to various countries, there has been a structural change in the commodity
composition of exports to these countries. The basic reason for this change could be the
change in the structure of output with the growing importance of the secondary sector and
decline in that of the primary sector as a concomitant of the process of industrialization and
economic development.

2.7. Economic Survey"'^ (2008-09) explained the changes in the directional pattern of
India's trade during the decade. In terms of export destination. United States was the top
destination accounting for 12.0 per cent of India's total exports in 2008-09 (April-February),
followed by UAE (10.8 per cent), China (5.1 per cent), Singapore (4.8 percent), Hong Kong
(3.7 per cent) and U.K. (3.6 percent). Region-wise, over half of India's exports were to Asia
(including ASEAN). During 2008-09 (April-February), exports to Asia (including ASEAN)
grew by 6.9 percent, to Europe by 10.2 per cent and to the United States by (-) 1.6 per cent.
India's merchandise exports to South Asian countries declined by 5.2 per cent. In 2008-09
(AprilFebruary), Asia and ASEAN continued to be the major source of India's imports
accounting for 61.7 per cent of total imports. Country-wise, imports from UAE and China
recorded high growth of 39.1 per cent and 13.3 per cent respectively.

2.8. Hazra Pralay and Sirohi Smita"*^ (2007) through their study "Capitalizing on Trade
Prospects in Asian Markets for Exports of Indian Dairy Products" examined the export of
India's dairy products in the Asian market. The analysis was based on HS-4 and -8 digit
level 25 data of the India's export to 40 Asian countries during 1991-2004. The paper also
examined the import demand and relative price elasticity of the Indian dairy products. The
consumption of milk and milk products as well as the import of dairy products increased in
Asia. In recent years Indian dairy product export increased and found market especially in
South and East Asia and in the Gulf region. Prominent and emerging new markets were
China, South Korea, Lebanon, Myanmar, Israel and Iran. To capitalize the trade prospects in
Asia, there was a need for a comprehensive strategy for increased production of quality
dairy products and intensification of efforts for diversifying the export basket of dairy
products.

17
2.9. H. Mane Vinod'*' (2011) through his study "Direction and Composition Of India's
Foreign Trade" analyzed India's direction and composition of foreign trade especially after
1991. India's major exports included manufacturing and engineering goods. There has been
a gradual increase in India's export and imports trade and also an increase in trade deficit.
India's exports with Asia and ASEAN countries accounts for more than fifty percent of total
Indian export. India's total import trade are about sixty percent from these countries. As far
as India's composition of foreign trade is concerned it has undergone major changes after
independence. India's economy in its earlier phase was agricultural economy. India's major
requirement used to be food grains. With rapid industrialization, the composition of India's
imports changed in favour of chemicals, fertilizers and machinery that were essentially
required for the developmental purposes. In the composition of export agricultural products
like tea, spices, and other raw materials were sold. India now exports machinery chemicals
and marine products. Thus, it could be said that India now exports the same items which
once were imported.

2.10. Kaur Amandeep^* (2012) in her study "Pattern of India's Foreign Trade In Pre And
Post Reform Era: An Empirical Investigation" made an empirical study for India's foreign
for the period 1960-2010. India's share in world's exports has shown an increasing trend. Its
share was only 0.5 percent in 1991. During the period from 1991 to 1997 its share
continuously rose from 0.5 percent to 0.62 percent and period of 2009-10 its share rose to
1.25 percent. This increase implies that Indian exports have become more competitive in the
global trade. Similarly, India's share in world imports has also shown an increasing trend.
The composition of India's trade has shown a significant change. The exports of tea, coffee,
spices, tobacco, leather, iron and ore, petroleum and chemicaJ products have shown an
increasing trend. The imports of 26 petroleum and crude products, fertilizers, paper boards,
textile yam, transport equipment have increased significantly. Food products and consumer
goods imports have shown a declining trend.

18
 CHAPTER III

RESEARCH OBJECTIVES /
RESEARCH METHODOLOGY / RESEARCH
DESIGN.

19
 3. RESEARCH OBJECTIVES / METHODOLOGY / DESIGN.

3.1. OBJECTIVES OF THE STUDY-

3.1.1. To study the trends and composition of India's trade with the rest of BRICS
countries.
3.1.2. To analyze the trade complementarity between India and rest of BRICS countries.

3.2. RESEARCH METHODOLOGY

This study is based on secondary data. The required data have been collected from various
sources i.e. UN COMTRADE (United Nations Commodity Trade Statistics Database)
accessed through World Integrated Trade Solutions (WITS), Directorate General of
Commercial Intelligence and Statistics (DGCI&S), Ministry of Commerce and Industries-
Government of India, Export Import Bank of India, Economic Survey Reports of various
years-Government of India and Reserve Bank of India. The time series data for the period
I99I-2013, on both aggregate and disaggregate level, country-wise as well as commodity
group-wise, have been collected as per SITC (Standard International Trade Classification)
Rev 3 classification.""The data include merchandise export-import of India with rest of the
BRICS countries and also the merchandise trade data of all BRICS countries with the world.

3.3.Research Design
Research design is the framework of research methods and techniques chosen by a
researcher. The design allows researchers to hone in on research methods that are suitable
for the subject matter and set up their studies up for success.
In this project I used Descriptive research design.

3.4.Data Collection
The relevant data will be collected from Secondary sources.

20
3.4.1. Sources of collection of secondary data
• Articles • Annual Reports
• Internet, etc.

3.4.2. Duration of the study

For the achieve objective researcher will be taken from year 2010-2020.

21
 CHAPTER IV
DATA ANALYSIS

22
Table 4.1 India’s Export to Whole world(2009-2020)

Year Total Export(Billion $)

2009 176.76$

2010 220.40$

2011 301.48$

2012 289.56$

2013 336.61$

2014 317.54$

2015 264.38$

2016 260.32$

2017 294.36$

2018 322.49$

2019 323.25$

2020 275.48$

Fig 4.1 Graphical Representation of India’s Export to Whole world(2009-2020)

23
Data Reporting: The above graph shows that in 2010 export was 220.40 Billion Dollar and
in 2020 was 275.48 Billion Dollar.

Data Interpretation: On the basis of above table 4.1 observed that the growth of export of
India is overall 50 Billion Dollar.
Table 4.2 India’s Import To whole world.
Year Total Export(Billion $)
2009 266.40$

2010 350.02$

2011 462.40$

2012 488.97$

2013 466.04$

2014 459.36$

2015 390.74$

2016 356.70$

2017 444.052$

2018 507.615$

2019 478.88$

2020 367.98$

Fig 4.2 Graphical Representation of India’s Import with Whole world(2009-2020)

24
Data Reporting: The above graph shows that in 2010 import was 350.02 Billion Dollar and
in 2020 was 367.98 Billion Dollar.

Data Interpretation: On the basis of above table 4.2 observed that the growth of import of
India is overall 128 Billion Dollar.

4.3 India’s export to all countries

Countries Total Export(%)
United 15.3%
states
United 11.3%
Arab
Emirates
Hong Kong 5.1%

China 3.7%

Singapore 3.5%

United 3.1%
Kingdom
Germany 2.6%

Bangladesh 2.5%

Other 52.9%

Fig 4.3 Graphical Representation of India’s Export with all other countries(2009-2020)

Data Reporting: The above graph shows that India mainly export to United States of
America.

25
Data Interpretation: On the basis of above table 4.3 observed that USA and UAE are the
main Business partner of India. Who import products from India.

Table 4.4 India’s import with all countries

Countries Total Export(%)

China 12.76%

Saudi Arab 7.02%

U Arab 6.03%

Switzerlan 4.795
d
USA 4.53%

Iraq 3.61%

Qatar 3.51%

Kuwait 3.4%

Nigeria 3.35%

Fig 4.4 Graphical Representation of India’s Import with all other countries(2009-2020)

26
Data Reporting: The above graph shows that India mainly import from China however
Galwani Ghati clash will impact on it.

Data Interpretation: On the basis of above table 4.4 observed that China, Saudi Arab, USA
are the main exporter for India.
4.5 India’s imports products
Products Total Import(%)
Electronics 7%

Gold 6%

Jewellery stones 5%
Machinery 5%

Chemicals 6%
Plastics
Coal 4%

Transport 3%
Equipment’s
Crude 37%

Other 22%

Fig 4.5 Graphical Representation of India’s Importing products with all other
countries(2009-2020)

Data Reporting: The above graph shows that India mainly import Crude Oil from different
countries and electronics has a big part in it.

27
Data Interpretation: On the basis of above table 4.5 observed that India is a lot more
dependent on other countries for crude oil and other electronics equipment’s.

Table 4.6 India Import with brazil

Year India’s Export to

Brazil(Billion $)
2010 0.5$
2011 2.2$
2012 3.5$
2013 1.7$
2014 3.2$
2015 1.3$
2016 1$
2017 1.4$
2018 1.5$
2019 1.7$

Fig 4.6 Graphical Representation of India’s Import with Brazil (Mainly crude oil)

Data Reporting: The above graph shows that India has great relation with brazil and import
a major amount of crude oil.

28
Data Interpretation: On the basis of above table 4.6 observed that India is increasing the
import with brazil from 0.5 Billion Dollar to 1.7 Billion Dollar in 2020.

Table 4.7 India’s Export to Brazil (2010-2020)

Year India’s Export to

Brazil(Billion $)
2010 2.5$
2011 3.2$
2012 5.5$
2013 3.3$
2014 4.8$
2015 3.7$
2016 3.2$
2017 4.5$
2018 3.8$
2019 2.7$

Fig 4.7 Graphical Representation of India’s Export with Brazil

Data Reporting: The above graph shows that India export to brazil little more than brazil.

Data Interpretation: On the basis of above table 4.7 observed that India’s export to brazil is
varying alternatively.

29
Table 4.8 India Import from USA

Year India’s Import from

USA(Billion $)
2010 33$
2011 37$
2012 42$
2013 43$
2014 47$
2015 46$
2016 48$
2017 51$
2018 57$
2019 60$
2020 54$

Fig 4.8 Graphical Representation of India’s Import with USA

Data Reporting: The above graph shows that India increasing its importing with USA.

30
Data Interpretation: On the basis of above table 4.8 observed that India’s import with USA
in 2010 was 33 Billion Dollar and in 2020 was 54 Billion Dollar.

Table 4.9 India Export to USA

Year India’s Export to

USA(Billion $)
2010 12$
2011 23$
2012 24$
2013 22$
2014 20$
2015 20$
2016 20$
2017 18$
2018 33$
2019 35$
2020 26$

Fig 4.9 Graphical Representation of India’s Export with USA

Data Reporting: The above graph shows that day by day India is increasing its exporting
capacity with USA Mainly from 2018.

Data Interpretation: On the basis of above table 4.9 observed that India’s export to USA
has been increased drastically. From 12 billion dollar to 35 billion dollar.

31
Table 4.10 India’s Export Import with China

Data Reporting: The above graph shows that China is our important share holder in Indian
import but from 2015 India is becoming independent from China’s imports.

Data Interpretation: On the basis of above table 4.10 observed that India’s import with
china was 43 billion dollar and after 2015 was 25 Billion dollar.

32
 CHAPTER-V

RESEARCH FINDINGS

33
1. The trend in total trade has shown the significant rise in terms of both India's exports and
imports with other BRICS countries. India's exports to other BRICS countries have risen almost 429
times, from US$ 71.517 million in 1991 to touch US$ 30690.09 million in 2013. India's total imports
from other BRICS countries have also risen from US$ 219.89 million in 1991 to US$ 66633.16 million
in 2013, showing a 303 times rise. The imports being more than the exports India has a negative
trade balance with BRICS.
2. The share of India's exports in BRICS total imports increased from 0.31 percent in 1991 to
1.18 percent in 2013 while share of India's imports in BRICS total exports increased from 0.7
percent in 1991 to 2.17 percent in 2013. On the other hand, the share of BRICS countries in India's
total exports has ranged from 0.4 percent to 9.1 percent and the share of BRICS countries in India's
total imports has ranged from 1.12 percent to 14.30 percent for the study period. Further, the sub
period analysis reveals that in the first decade of reforms (1991-2000), India's trade with other
BRICS countries was not very high; it is only during the second decade of reforms (2001-2013) that
India's trade with other BRICS countries gained a momentum.
3. Considering India's export/ import with BRICS only, country-wise analysis shows that in
2013, within BRICS group, approx. 53 percent of Indian exports go to China followed by Brazil with
20 percent share, South Africa by 19 percent share and Russia by less than 8 percent share. India's
imports within BRICS group are also dominated by China with 78 percent share. South Africa
accounts for U percent share of India's imports within BRICS group. Brazil and Russia's share in
India's imports within BRICS group is 5.75 percent and 5.72 percent respectively. Except Brazil, India
has a negative trade balance with all other BRICS countries.
4. At a more disaggregated level, it has been observed that in 2013, top 10 sub-sections
having comparative advantage in India's merchandise exports are rice, cotton, pearls/ precious
stones, Jute/bast fibre raw and spices, Synth org colour agents. Cine film developed, Veg text fibre
except cotton/jute, Textile yam and Crustaceans molluscs.

34
Research scope
The present study assesses the trends in trade and competitiveness between India and rest of the
BRIGS countries. The results indicate a complementarity in export and import products which can
provide opportunities for enhanced India-BRICS trade. However, to maximize the gains from trade,
it is essential to examine the tariff structure among them. Further, in order to fully realize the trade
potential for Indian products in rest of the BRIGS countries, the competition from the world market
also need to be examined. The scope of the study is limited to merchandise trade. The scope of
trade in services between India and rest of the BRIGS countries should also be examined

35
 Conclusion
BRICS trade bloc is an emerging feature of world trade. BRICS countries are among the
biggest and fastest growing emerging markets. In recent years, trade and investment among
BRICS economies are growing. Since it is anticipated that, BRICS group would assume an
inexorably imperative and persuasive part in the global economy, India should focus on
expansion of IndiaBRICS trade to be a significant part of the power that would drive the
global economy in future. The present study has been taken from India's perspective. Trade
volume between India and other BRICS countries has increased significantly in the past. The
growing trade suggests a promising future for trade cooperation. However, there still exists
enormous undiscovered potential that must be tapped. In order to analyze the scope of trade
expansion, it is essential to assess the opportunities that exist between India and the other
BRICS countries. The main focus in this study is to examine the trends and composition of
India's foreign trade with rest of the BRICS countries. To identify the potential areas for
further trade expansion, the study has also examined the complementarity in the trade
structure of India's exports with rest of the BRICS countries imports. The main aim of this
chapter is to highlight the main findings of the study and give pragmatic suggestions.

36
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 PROJECT GUIDE COMMENT

1. Number of Visits by student (Minimum 5 visits

required) –

2. Sincerity of student -
a. Very good
b. Average
c. Poor

3. Quality of work done –

a. Very Good
b. Average
c. Poor

4. Ability to learn
a. Very Good
b. Average
c. Poor

5. Any other –

Project Guide Name & Signature -

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39