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155 CHAPTER CHAPTER CHAPTER CHAPTER – 4 INDIA’S TRADE WITH INDIA’S TRADE WITH INDIA’S TRADE WITH INDIA’S TRADE WITH SAARC COUNTRIES SAARC COUNTRIES SAARC COUNTRIES SAARC COUNTRIES – COUNTRIWISE ANALYSIS COUNTRIWISE ANALYSIS COUNTRIWISE ANALYSIS COUNTRIWISE ANALYSIS
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CHAPTER CHAPTER CHAPTER CHAPTER –––– 4444

INDIA’S TRADE WITH INDIA’S TRADE WITH INDIA’S TRADE WITH INDIA’S TRADE WITH

SAARC COUNTRIES SAARC COUNTRIES SAARC COUNTRIES SAARC COUNTRIES ––––

COUNTRIWISE ANALYSISCOUNTRIWISE ANALYSISCOUNTRIWISE ANALYSISCOUNTRIWISE ANALYSIS

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CHAPTER – 4

India’s Trade with Saarc countries: Country wise Analysis

This Chapter presents a detailed descriptive analysis of each

member country’s socio, economic and political background of the

SAARC group and India’s trade relations with them.

Indo-Bangla Trade Relations:

Geographical features:

Bangladesh is a low-lying area with 147570sq. k.m. It is

located in South Asia with a largely marshy jungle coastline of 710

kilometers (440 mi.) on northern littoral of the Bay of Bengal.

Bangladesh’s alluvial soil is highly fertile but vulnerable to flood

and drought. Bangladesh has a subtropical monsoonal climate

characterized by heavy seasonal rainfall, moderately warm

temperatures, and high humidity. Natural calamities, such as

floods, tropical cyclones, tornadoes, and tidal bores affect the

country almost every year. Bangladesh also is haunted by major

cyclones on an average of 16 times a decade.

Urbanization is happening fast, and it is estimated that only

30 per cent of the population entering the labor force in the future

will be absorbed into agriculture, although many will likely find

other kinds of work in rural areas. The Sundarbans, an area of

coastal tropical jungle in the southwest and the Chittagong Hill

tracts on the southeastern border with Burma and India, are the

least densely populated.

The area that is now Bangladesh has a rich historical and

cultural past, combining Dravidian, Indo-Aryan, Mongol/Mughul,

Arab, Persian, Turkic, and west European cultures. Majority

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residents of Bangladesh, about 98 per cent of whom are ethnic

Bengali speak Bangla.

ECONOMY

Being one of the world’s poorest and most densely populated

countries, Bangladesh has stepped up its efforts major to meet the

food needs of its increasing population, by augmenting domestic

production. The land is devoted mainly to rice and jute cultivation

Wheat production has also increased in recent years the country

has attained self-sufficiency in rice production. However, 10 to 15

per cent of the population suffers from high nutritional risk and

erratic monsoon, with high degree occurrence of floods. Although

improving Bangladesh has yet to imports its infrastructure to

support transportation, communications, and energy supply.

Bangladesh’s industrial base is weak with limited reserves of coal

and oil. The country’s main endowments include its vast human

resource base, rich agricultural land, relatively abundant water,

and substantial reserves of natural gas, which can be items of

exchange among the Saarc countries.

Moves towards Market Economy

Bangladesh-began its exercise in the direction of raising the

country’s new industrial capacity and rehabilitating the economy

after he violent events of 1971recovery from the static economic

model adopted by its early leadership, Bangladesh drove its

economy out of the clutches of inefficient public sector to the result

oriented private sector in late 1975, by gradually increasing the

scope to private sector participation in the economy, since 1975; of

course major portions of the banking and jute sector, are kept

remain under government control.

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Investors viewed favorably steps taken by the interim government

to address corruption, governance, and infrastructure issues,

though most believed it was too early to assess the long-term

impact of those developments.

Predominance of Agriculture:

For majority, agriculture is the main source of livelihood in

Bangladesh in spite of often volatile weather conditions. After rice

and jute, maize and vegetables follow in importance. Expanded

irrigation facilities have, encouraged some wheat producers

switched to cultivation of maize which is used mostly as poultry

feed. Because of Bangladesh’s fertile soil and normally ample water

supply, rice can be grown and harvested three times a year in

many areas. Due to a number of factors, Bangladesh’s labor-

intensive agriculture has achieved steady increases in food grain

production despite the often unfavorable weather conditions.

Under employment remains a serious problem and a growing

concern for Bangladesh’s agricultural sector, Finding alternative

sources of employment will continue to be a challenge problem for

future economy.

Garment export – base

The country’s ready-made garment industry, which made

rapid strides, provides employment to millions of people however;

the country could still done better in expanding garment exports

accounting for more than three-fourths of all exports, even the

country’s cash crop, and jute.

The U.S. and the European Union (EU) market imports

significant amounts of garments and knitwear from Bangladesh.

Bangladesh also has established Export Processing Zones in

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Chittagong (1983), Dhaka (1994), Comilla (2000), Mongla (2001),

Iswardi (2005), Uttara (2006), and Karnafully (2007).

It is suggested that Bangladesh should privatize state-owned

enterprises deregulate and promote foreign investment in high-

potential industries like energy and telecommunications.

Bilateral Relations with India:

India and Bangladesh are good neighbours. Geographic,

cultural, historic, and commercial ties are strong, and both

countries recognize the importance of good relations. In the

Bangladesh’s struggle for independence from Pakistan in 1971,

India helped in gaining independence of Bangladesh, and furnished

relief and reconstruction aid during the post war period.

Notwithstanding the development that India and Bangladesh

have witnessed in recent years, the two countries together still

contain a large number of extremely poor people living on one

dollar a day, this is the real challenge posed before the two

countries. Although they are situated in a region endowed with

vast resources, they have failed to convert these resources into

productive and collective wealth in an accelerating manner.

Together India and Bangladesh boast a total population of

more than 1 billion, and their rapid domestic economic

development has demonstrated broad prospects for cooperation.

India and Bangladesh are still characterized by a low level of

economic integration, despite the fact that their economies are

complementary to a large extent and stand to benefit substantially

from economic integration. However, compared with their strength,

there still exists much potential for developing trade and economic

relations between the two countries.

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Indo-Bangladesh relations are often strained and many Bangladesh

feel India likes to play “big brother” to smaller neighbors, including

Bangladesh. Bilateral relations warmed in 1996, due to a softer

India’s foreign policy and the new Awami League government. A 30-

year water-sharing agreement for the Ganges river was signed in

December 1996, after an earlier bilateral water-sharing agreement

for the Ganges River lapsed in 1988. Bangladesh is not happy with

the proposed Indian River Linking Project, which the government

says could turn many parts of Bangladesh into a desert. Indian

army maintains a strong presence in the Hill Tracts. Arms

smuggling and reported opium crop cultivation are concerns in this

area. Occasional exchanges of fire between the two countries flare

up and seriously disrupt bilateral relations. Much to Bangladesh’s

displeasure, India’s erected a barbed-wire fence is an irritant in the

bilateral relations of both the countries.

Former Prime Minister Khaleda Zia of Bangla, however,

visited the Indian capital in March 2006 and reviewed bilateral

relations with her Indian counterpart*. Two agreements viz., the

Revised Trade Agreement and the Agreement on Mutual

Cooperation for Preventing Illicit Drug Trafficking in Narcotic Drugs

and Psychotropic Substances and Related Matters-were signed

between the two countries during this visit. The then Indian

Foreign Minister Pranab Mukherjee met with the Chief Adviser in

Dhaka on February 26, 2007. Mukherjee invited Ahmed to the

April 3-4, 2007, SAARC summit in Delhi, and both sides pledged to

put Bangladesh-India relations on “an irreversible higher

trajectory.

Improving relations with India became a priority with the

return of the Awami League government in January 2009. The new

Prime Minister Hasina herself travelled to New Delhi in January

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2010 and signed several agreements to further strengthen their

bilateral relationship. India plays an important role in

Bangladesh’s trade since the independence and since nineties,

Indo-Bangla trade increased tremendously.

The importance of Bangladesh to India’s trade can be

understood from the fact that Bangla contributed 0.74 per cent in

1990, 1.59 percent in 1995, per cent and 1.40 per cent of India’s

global exports in 2010-11.

Trend, Structure and Current Picture of Indo - Bangladesh

Trade:

One of the important features of Indo-Bangladesh bilateral

trade to be mentioned is that a large volume of informal or

unrecorded trade, both in commodities and services, occurs every

year, and it is growing despite unilateral or regional or multilateral

trade liberalization in these two countries. The official data on

trade in services between these nations are, in fact, not available at

all. Under this situation of data paucity with regard to illegal trade

and trade in services, our current analysis will depend on mostly

on the official trade data in commodities.

Historical Development of Indo-Bangla Trade Relations

Bangladesh and India signed the ‘Treaty of Friendship’

Cooperation and Peace on March 19, 1972 in Dhaka for 25 years.

In the agreement, fish, raw-jute, newsprint and naphtha were

identified as the principal exports of Bangladesh to India. Bangla’s

major import items from India introduced were cement, coal,

machinery and unmanufactured tobacco. The trade between the

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two nations was limited to government level.1 This agreement also

provided border trade between Bangladesh and neighboring Indian

states; and within 16 kilometers of both countries border, free

trade was allowed for certain commodities2.

The first trade agreement of 1972 was replaced by another

trade agreement for three years. This agreement was signed on

July 5, 1973 and became effective from 28 September, 1973. This

agreement provided for a system of balanced trade and payment

arrangement and most favored nation treatment to both the

Countries.

Share of Indo-Bangladesh trade in Indo-SAARC Trade (Table 4.2)

It is evident from table 4.2 that the member country, which

registered the largest percentage share in Indo-SAARC trade, was

Bangladesh. India’s exports to Bangladesh amounted to Rs. 2024

crores in 1994-95, contributing the highest percentage share to

Indo-SAARC trade with 53.05 per cent. The exports to Bangladesh

being amounted Rs. 3529 crores in 1995-96, contributed the

highest ever percentage share to Indo-SAARC trade with 61.32 per

cent in 1995-96. But, in 1998-99, the percentage share was

recorded at 59.29 per cent, (see table 4.2). Since then, the

percentage share exhibited decreasing trend through out the study

period. The lowest percentage share was observed in 2006-07 with

25.16 per cent. With regard to India’s export growth rate with

Bangladesh, the following observation have been noted.

1 Madan, D.K., Indo-Bangladesh Economic Relations and SAARC, (New Delhi: Deep and Deep Pubication), 1996.

2 Hasan, M.K., Trade with India and Trade Policies of Bangladesh, in F.E. Cookson and A.K.M.S. Alam (Eds) Towards Greater sub –regional Economic Cooperation. 2002, chapter 10, 349-401.

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Between 1994-95 and 2000-01, India’s exports to

Bangladesh had been doubled as the exports worth of Rs. 2024

crores in 1994-95, went up to Rs. 4272 crores in 2000-2001 over

1994-95. However, the compound growth rate of exports recorded

in respect of Bangladesh was not as high as had been registered in

respect of India’s compound growth rate of exports with SAARC,

which was recorded at 130.93 per cent in 2000-01 over 1994-95.

Between 2001-02 and 2005-06, the compound growth rate of

exports, recorded in respect of Bangladesh, was not as large as had

been registered in the previous phase i.e., from 1994-95 to 2000-

01. The compound growth rate of exports, registered during second

phase was 54.16 per cent in 2005-06 over 2001-02. Also, this

compound growth rate of exports, recorded in respect of

Bangladesh, was far lesser than the compound growth rate of

exports, registered in respect of SAARC; the compound growth rate

recorded in respect of SAARC was 154.20 per cent in 2005-06 over

that of 2001-02.

But, the above trend, recorded in II phase was reversed, as

the compound growth rate of exports recorded at 120.13 per cent

in 2010-11 in respect of Bangladesh, far higher than the

compound growth rate of exports, registered at 97.76 per cent in

2010-11 over 2006-07, in respect of exports to other SAARC

Nations.

Share of India’s imports from Bangladesh in the overall India’s

imports from SAARC.

India had substantial trade relations with Bangladesh during

the recent decade. According to table 4.3 the imports from

Bangladesh as a proportion of imports from SAARC had been

registered at 21.62 per cent in 1994-95. The highest percentage

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share of imports from Bangladesh had been recorded at 33.44 per

cent in 1995-96 and the least percentage share was recorded at

6.25 per cent in 2004-05.

When we considered the growth rate of imports in respect of

Bangladesh, the highest annual growth rate of imports was

recorded at 139.6 per cent in 1995-96 over 1994-95, as the

imports from Bangladesh worth of Rs. 120 crores in 1994-95, had

gone up to 287 crores in 1995-96. Negative annual growth rates of

imports had been observed during 1996-97 with 22.99 per cent,

14.47 per cent in 1997-98, 23.16 per cent in 2001-02 and 25.21

per cent in 2004-05 and with 15.08 per cent in 2009-10. (See table

4.3).

With regard to compound growth in 2000-01, the imports

from Bangladesh had been more than doubled when compared to

1994-95. When we considered the compound growth rate of

imports in respect of SAARC nations during the same period, it

was, registered at 283.42 per cent in 2000-01 over 1994-95.

During 2001-02 and 2005-06, the imports from Bangladesh

had been almost doubled with the compound growth rate of

imports being registered at 99.29 per cent in 2005-06 over 2001-

02. When the compound growth rate of imports was considered in

respect of SAARC during the same period, it was registered at

129.53 per cent in 2005-06 over 2000-01 (more than doubled).

Between 2006-07 and 2010-11, the compound growth rate of

India’s imports in respect of Bangladesh was recorded at 81.62 per

cent in 2010-11 over 2006-07. But, the compound growth rate of

imports, recorded in respect of SAARC was at 34.80 per cent only.

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India’s balance of trade with Bangladesh

It is evident from the table 4.4 that India’s exports to

Bangladesh have always surpassed the values of imports. While

the values of exports to Bangladesh were in thousands of crores,

imports from Bangladesh were just in hundreds. Thus, the ±

balance of trade has always been in favour of India. However, the

annual growth rate in balance of trade with Bangladesh had been

widely fluctuating with erratic trends. The ups and downs in the

growth rate could be witnessed in table 4.4.

The Indo-Bangla trade deficit has been increasing

exponentially since the recent past. The data show that compared

to 1994-95, trade deficit is more than three times in 2004-05 and

seven and half times in 2010-11 when compared to 1994-95 (see

table 4.4). Between 1983 and 2003, according to an IMF study, the

trade deficit was increased by 46 times.3

The importance of India in Bangladesh’s trade

India plays an important role in Bangladesh’s trade since

independence. Recently especially in 1990’s, Bangladesh trade with

India increased tremendously. The table 4.5 compares the growth

rates of India’s trade with Bangladesh, with that of SAARC

countries and with world for the period from 1994-95 to 2010-11.

It could be observed from table 4.5 that the annual growth rate of

India’s trade with Bangladesh during 1995-96 was much higher

than those with SAARC and the world. For example during 1998-

99, while annual growth rate of India’s trade with SAARC and the

world were 31.58 per cent and 11.89 per cent respectively, but with

Bangladesh this was 43.06 per cent. During 2000-2001, the

3 IMF (2004). Direction of Trade Statistics Year book, Washington D.C.

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growth rates with the world, SAARC and Bangladesh were 15.91

per cent, 40.84 per cent and 49.83 per cent respectively. The

growth rate of India’s trade with Bangladesh increased very

significantly during 2007-08. While the growth rates with world

and the SAARC were 18.11 per cent and 30.82 per cent

respectively, the growth rate with Bangladesh was at 52.11 per

cent during the same period. During 2008-09 and 2009-10,

negative growth rates recorded consecutively with Bangladesh, and

also with the world during 2009-10. However, these figures turned

into convincingly positive in 2010-11. (See table 4.5).

From the table 4.1, it is observed that Bangladesh’s share in

India’s global trade both exports and imports has decreased from

1.67 per cent in 1995-96 to 1.08 per cent in 2002-03 and further

to 0.65 per cent in 2010-11. It is also discouraging that both Indo-

Bangladesh export share and import share have been showing

declining trend in India’s global exports and global imports.

The share of Indo-Bangladesh’s trade in Indo-SAARC trade

also, is not impressive as the trend recorded in respect of Indo-

SAARC trade, displaying a decreasing trend throughout the years.

(see table 4.5). The important feature is that the share of Indo-

Bangladesh’s import trade in India’s global imports slightly went

up from 0.10 per cent in 2007-08 to 0.12 per cent in 2010-11(see

Table 4.1).

INDO-SRI LANKA TRADE RELATIONS:

The area of Srilanka in 65,610 sq.k.m which is about the size

of West Virginia, The population of Sri Lanka is 21.3 millions. The

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annual growth rate is 0.9 per cent.4 The languages, spoken in

Srilanka are Simhala and Tamil. The natural resources available

are limestone, graphite, mineral sands, gems and phosphate.5

PROFILE

Sri Lanka is ethnically, linguistically, and religiously diverse.

Sinhalese make up 74% of the population and are concentrated in

the densely populated southwest. Sri Lankan Tamils, citizens

whose south Indian ancestors have lived on the island for

centuries, comprise about 0.9 per cent of the population.

Indian Tamils, a distinct ethnic group, represent about 5 per

cent of the population. The British brought them to Sri Lanka in

the 19th century as tea and rubber plantation workers, and they

remain concentrated in the “tea country” of south-central Sri

Lanka. In accordance with a 1964 agreement with India, Sri Lanka

granted citizenship to 230,000 “stateless” Indian Tamils in 1988.

Under the pact, India granted citizenship to the remainder, some

200,000 of whom now live in India.

Other minorities include Mulsims (both Moors and Malays),

at about 7 per cent of the population; Sizable minorities of both

Sinhalese and Tamils are Christians, most of whom are Roman

Catholic. The 1978 constitution-while assuring freedom of religion-

grants primacy to Buddhism. Tamils and most Muslims speak

Tamil. Use of English has declined since independence Both

Sinhala and Tamil are official languages.

4 Various Reports of Bureau of South and Central Asian Affairs, 2010.

5 Ibid.

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HISTORY

The actual origins of the Sinhalese are shrouded in myth.

Most believe they came to Sri Lanka from northern India during the

6th century BC. Buddhism arrived from the subcontinent 300 years

later and spread rapidly.

Sri Lanka Economy

Sri Lanka is a lower-middle income developing nation. When

compared to India, Bangladesh and Pakistan, Sri Lanka is ahead

with 91 per cent literacy rate in local languages and life

expectancy of 75 years rank well above those of India.

Like many countries in South Asia Sri Lanka shifted away

from a socialist orientation and opened its economy to foreign

investment with aggressive economic reform under the UNP-led

government that ruled from 2002 to 2004.

The economic situation in Sri Lanka received a jolt in 2009

due to the global recession. In the recent past, it was hindered by

large scale hostilities between the government and the LTTE, high

government expenditure, inflation and interest rates. Exports fell

by about 13.5%. In 2008, trade and current accounts recorded

large deficits due to high oil and commodity prices, and an

unsuccessful effort by the government to defend the Sri Lankan

rupee drained Sri Lanka’s exchange reserves, forcing it to turn to

the International Monetary Fund (IMF) in early 2009 for assistance.

The economic strategy as outlined by President Rajapaksa

namely “Mahinda Chintana” (Mahinda’s Thoughts), guides

government economic policy, Presently with a focus on poverty

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alleviation and steering investment to backward areas; The small

and medium enterprise (SME) sector; promotion of agriculture etc.

The government has also drafted a 10-year long term development

framework to accelerate growth to strengthen big infrastructure

projects in the country. The government is not for privatization of

state enterprises, including “strategic” enterprises such as state-

owned banks, airports and electrical utilities. Instead, it plans to

retain ownership and management of these enterprises and make

them profitable.

The service sector comprising telecom, trading, transport,

and financial services is the largest component of Sri Lanka’s GDP

at around 60 per cent. Financial scarcities arose with the rise in

hostilities, and defense expenditures expansion of public sector

employment, and the expenses associated with the jumbo cabinet

and growing information technology sector, especially information

technology training and software development.

Sri Lanka’s GDP comprises 30 per cent of its volume from

Industry accounts. Like in India, agriculture production of GDP

has lost its relative importance to the Sri Lanka economy in recent

decades with only about 12 per cent of GDP. Sri Lanka gets its

earnings from rice, cereals, tea, rubber, and coconut.

Foreign Trade and Foreign Assistance

Sri Lanka’s exports (mainly apparel, tea, rubber, gems and

jewellery) were estimated at $7.0 billion and imports (mainly oil,

textiles, food, and machinery) were estimated at $9.6 billion for

2009. The trade deficit of Sri Lanka was financed primarily by

remittances from Sri Lankan expatriate workers, foreign aid and,

from public borrowings. Sri Lanka must diversify its exports

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beyond garments and tea. The tea industry is challenged by a

shortage of plantation labor and by growing competition.

Exports to the United States, Sri Lanka’s most important single-

country market, were estimated to be around $1.54 billion for

2009, or 22% of total exports. For many years, the United States

has been Sri Lanka’s biggest market for garments, taking almost

50% of total garment exports. India is Sri Lanka’s largest source of

imports, accounting for over 20 per cent of imports.

Iran is a major lender to Sri Lanka and has provided

infrastructure project loans and an interest-free credit facility for

oil imports. Iran assistance for modernization of Sri Lanka’s only

oil refinery has come forth though no firm commitments are in

place. China has also become a major lender for infrastructure

projects, such as a new port and a coal power plant.

Sri Lanka has traditionally been an important export market

for India and is the second largest trading partner in the region

after Bangladesh (See table 4.22). The bilateral trade is carried out

in accordance with the provisions of the Trade Agreement signed in

1961. The trade is in freely convertible currencies and on MFN

basis. Both the countries are the signatories of WTO, SAARC and

Bangkok Agreement. Within the frame work of SAARC Preferential

Trading Agreement and the Bangkok Agreement, mutual

preferential trade concessions are extended to each other.

India and Sri Lanka have signed a Free Trade Agreement on

28th December, 1998 under which tariff on a large number of items

would be phased out within an agreed time frame.6 While India

would reduce the tariff to zero in three years, Sri Lanka would do

6 Reeta Mathur. International Economics, (Jaipur: Sub Lime Publications, 2002) p. 245.

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so in eight years.7 Two sides will maintain negative Lists of items

on which no duty concessions are given, where protection to local

industry in considered necessary.

INDO-SRI LANKA RELATIONS:

Bilateral relations between Sri Lanka and India have been

generally friendly, but were affected by the Sri Lankan civil war and

by the failure of Indian intervention during the Sri Lankan civil

war. India is Sri Lanka’s only neighbor, separated by the Palk

Strait; both nations occupy a strategic position in South Asia and

have sought to build a common security umbrella in the Indian

Ocean.

India - Sri Lanka relations have undergone a qualitative and

quantitative transformation in the recent past. Political relations

are close, trade and investments have increased dramatically,

structural linkages are constantly being augmented, defense

collaboration has increased and there is a general, broad-based

improvement across all sectors of bilateral cooperation. India

was first country to respond to Sri Lanka’s request for assistance

after the tsunami in December 2004. In July 2006, India evacuated

430 Sri Lankan nationals from Lebanon, first to Cyprus by Indian

Navy ships and then to Delhi and Colombo by special Air India

flights.

There exists broad consensus within the Sri Lankan polity on

the primacy of India in Sri Lanka’s external relations matrix. Both

the major political parties in Sri Lanka, the Sri Lanka Freedom

Party and the United Nationalist Party have contributed to the

rapid development of bilateral relations in the last ten years. Sri

7 Ibid., p.256

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Lanka has supported India’s candidature to the permanent

membership of the UN Security Council.

SHARE OF INDO-SRI LANKAN EXPORT TRADE IN INDO -

SAARC EXPORT TRADE:

As indicated by table 4.6, the exports worth of Rs. 2163.5

crores in 1999-2000 as compared to Rs. 1151.1 crores in 1994-95,

reflecting a compound growth rate of 87.95 per cent. On the other

hand, the overall exports to SAARC nations were worth of Rs. 6043

crores in 1999-2000 as compared to Rs. 3815 crores in 1994-5,

contributing the compound growth rate at 50.40 per cent in 1999-

2000 over 1994-95. (See table 4.6).

Between 2000-2001 and 2005-06, there was a remarkable

growth in the compound growth rate of exports with 206.51 per

cent in 2005-06 over 2000-01; in the same way, substantial

compound growth rate of exports had been recorded in respect of

overall exports to SAARC countries with 178.79 per cent in 2005-

06 over 2000-01.

The compound growth rates, which displayed tremendous

records during above period of study, had not been observed

during the last phase of study period that was between 2006-07

and 2010-11.

The compound growth rate of exports, which was registered

at 97.76 per cent in respect of Indo-SAARC trade was more

encouraging than the compound growth rate of exports recorded at

80.02 per cent in 2010-11 over 2006-07, in respect of Sri Lanka. It

was also noteworthy that two consecutive annual negative growth

rates of exports were noted with 4.22 per cent in 2008-09 and also

with 5.44 per cent in 2009-10. In respect of Indo-SAARC trade

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also, negative annual growth rates had been witnessed with 0.89

per cent in 1997-98 and with 14.46 per cent in 1999-2000.

The share of India’s exports to Sri Lanka as a proportion of

overall exports to SAARC stood at 30.17 per cent in 1994-95. But,

it was declined to 23.35 per cent in 1995-96. During 1997-98, the

percentage share went up to 30.37 per cent as compared to 28.05

per cent in the previous year. The highest percentage share of

exports with Sri Lanka was registered at 36.49 per cent in 2005-

06. (See table 4.6.). This percentage share, however, came down to

25.95 per cent in 2009-10, before it slightly picked up to 31.74 per

cent at the end of 2010-11. The annual growth rates, which were

thus negative during 2008-09, 2009-10, increased to 78.55 per

cent in 2010-11 over the previous year.

Share of India’s imports from Sri Lanka in Indo-SAARC import

Trade (Table 4.7)

It is evident from table 4.7 that India’s imports from Sri

Lanka have displayed a fluctuating trend through out the study

period.

Between 1994-95 and 1990-2000, the imports from Sri

Lanka were almost doubled with 98.65 per cent in 1999-2000

where as during the same period, in respect of Indo-SAARC trade

there was a remarkable growth in compound growth rate, having

been recorded at 210.45 per cent in 1999-2000 over 1994-95. (see

Table 4.7).

Between 2000-2001 and 2003-04, the imports from Sri

Lanka, which amounted Rs. 205.6 crores in 2000-01 went up

tremendously to Rs. 894.9 crores in 2003-04, contributing a

remarkable growth in the compound growth rate at 335.26 per

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cent. When we considered the same period in respect of Indo-

SAARC trade, the compound growth rate was just recorded at

44.40 per cent in 2003-04 over 2000-01.

The notable feature during 2002-03 and 2003-04 was that,

the imports from Sri Lanka were more than doubled, with the

Annual growth rate of imports being registered at 103.57 per cent

in 2003-04 over 2002-03.

Between 2004-05 and 2010-11, the compound growth rate of

imports was just recorded at 18.17 per cent in 2010-11 over

2004—05. Further, it was also observed that there were two

negative annual growth rates being recorded at 16.74 per cent in

2006-07 and the other one at 36.09 per cent in 2008-09. But, the

trend was different, if the same period was considered in respect of

Indo-SAARC trade. The imports were more than doubled with the

compound growth rate of imports being registered at 115.39 per

cent in 2010-11 over 2004-05. However, there were two negative

consecutive annual growth rates being registered at 2.78 per cent

in 2008-09 and 5.17 per cent in 2009-10 consecutively.

It was observed that the exports in respect of Sri Lanka have

surpassed the imports through out the study period stretching

from 1994-95 to 2010-11, displaying a favourable balance of trade.

(See table 4.8).

INDO – NEPAL TRADE RELATIONS

Area, People, Religion and Languages:

Nepal with an area of 147.181 sq. k.m. shares borders with

China and India. The capital is Kathmandu. The population of

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Nepal is about 29.3 million with an annual population growth rate

of 2.132 per cent.8

Religion is important in Nepal; the Kathmandu Valley alone

has more than 2,700 religious shrines which attract a large

number of tourists. According to the 2011 census, Nepal is roughly

81% Hindu. Buddhists account for about 11% of the population.

The interim constitution, promulgated on January 15, 2007,

declared the country a “secular state”.

Nepali is the official language, although over 100 regional

and indigenous languages are spoken throughout the country.

Derived from Sanskrit, Nepal is similar to Hindi and is spoken by

about 90% of the population (although often as a second or third

language). Many Nepalese in government and business also speak

Hindi and English.

Economy, Trade and foreign relations:

Nepal ranks among the world’s poorest countries, with a per

capita income of around $427 in 2009. Based on national

calorie/GNP criteria, an estimated 55% of the population is below

the poverty line of $1.25 per day. An isolated, agrarian society until

the mid-20th century9, Nepal entered the modern era in 1951

without schools, hospitals, roads, telecommunications, electric

power, industry, or a civil service. The country has, however, made

progress toward sustainable economic growth since the 1950s and

is committed to a program of economic liberalization.

Agriculture remain Nepal’s principal economic activity,

employing over 73% of the population and providing 34% of GDP.

8 Ibid. 9 Ibid.

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Because of Nepal’s dependence on agriculture, the magnitude of

the annual monsoon rain strongly influences economic growth.

In 2009-2010 Nepal’s exports decreased by 6% and imports

grew by 187% in FY when compared to 2007-2008. Exports

constrained by political turmoil and a poor investment climate were

also impacted by the worldwide financial crisis. According to the

revised estimations of the Central Bureau of Statistics, GDP growth

increased marginally to 3.72% in 2005-2006 and slipped to 3.19%

in 2006-2007. In 2009 GDP grew by about 4.7%.

In addition to a growing trade deficit, Nepal faced a balance

of payments (BOP) deficit of $36 million for the first time in 2009-

2010. Nepal receives substantial amounts of external assistance

from India, the United Kingdom, the United States, Japan, and the

European Union (EU).

With eight of the world’s ten highest mountain peaks-

including Mt. Everest at 8,848 m (29,000 ft)-Nepal is a tourist

destination for hikers and mountain climbers. However, the

decade-long insurgency and a global economic slowdown

threatened the tourism industry. But 2007 witnessed a renewed

wave of tourism. Since the political parties and Maoists brokered a

comprehensive peace agreement in November 2006, renewed

tourist arrivals have given relief to the tourism-based hotel,

trekking, mountaineering, and aviation industries during the later

years and in 2011 Nepal celebrated its Year of Tourism.

Swift rivers flowing south through the Himalayas have

massive hydroelectric potential to service domestic power needs

and growing demand from India. Only about 1% to 2% of Nepal’s

hydroelectric potential is currently tapped. Several hydroelectric

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projects, the Kali Gandaki A (144 megawatts-MW), and a number

of private projects were planned and some completed.

Population pressure on natural resources is increasing.

Overpopulation is already straining the middle hill areas,

particularly the Kathmandu Valley, resulting in the decline of forest

cover. Progress has been achieved in education, health, and

infrastructure, a countrywide primary education system is under

development, and Tribhuvan University has several campuses.

Kathmandu is linked to India and nearby hill regions by an

expanding highway network.

FOREIGN RELATIONS

Nepal’s association with India traditionally has been very

close. Because of strong cultural, religious, linguistic, and

economic ties, India and Nepal restored trade relations in 1990

after a break caused by India’s security concerns over Nepal’s

relations with China.

Nepal played an active role in the formation of SAARC and is

also the headquarters of its secretariat. Nepal is also a signatory of

the agreement on South Asian Free Trade Area (SAFTA), which

came into force on January 1, 2006. A SAFTA Tariff Liberalization

Program (TLP) was scheduled to be implemented from July 1, 2006.

All member countries, except for Nepal, whose TLP started on

August 1, 2006, reduced tariffs for each other∗∗∗∗

* On July 1, 2006, Pakistan officially toughened its stance of not trading with India under the SAFTA

arrangements and did not announce TLP for India. Due to the stalemate between India and Pakistan, the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation free Trade Agreement (BIMSTEC), which was initially scheduled to come into force on July 1, 2006, was deferred indefinitely. The BIMSTEC Summit scheduled for February 8, 2007 in India was also deferred due to political instability in member states, including Nepal, but eventually took place in November 2008. On international issues, Nepal follows a non-aligned policy and often votes with the Non-Aligned Movement in the United Nations. Nepal participates in a number of UN specialized agencies and is a member of the World Trade Organization, World Bank, International Monetary Fund, Colombo Plan, and Asian Development Bank

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Indo – Nepal Economic Relations

Economic relationship between Nepal and India is unique.

There are historical, geographical, cultural, linguistic, ethnic, social

and family links between people living in India and Nepal.

Institution relating to government and the economic activities are

also more or less similar. Therefore, the trade and other related

relationship between Nepal and India has its own significance.

Trade relationship between these two countries often goes beyond

the economic reason significantly influenced by the social-ethical

norms and values. Research and studies reveal that both the

countries have comparative cost advantages in trading amongst

themselves for several reasons. Historic trade relations,

geographical proximity, identical culture, similar agriculture

productions are cited few examples quite repeatedly. Economical

transport cost is seen as another important factor determining the

volume of trade between these countries. In view of the rising

energy costs, it often considered that the transport costs are likely

to rise so that the transport cost advantage to both these countries

trading with each other is likely to increase in future. This would

further increase the potential for trade between these countries.1

Timilsina (2000), on the other hand, notes that the economic

cooperation between Nepal and India is based on the movements of

goods and services across Nepal-India border of about 1,600 km.

The movement is free and spontaneous. This movement further

accelerated by the movement of people for economic pursuits,

social and marriage relations. The cultural ties and non-existence

of visa system have created better environment for the conduction

of free trade between the two countries.

Indo-Nepal trade has its own importance for the economic

development of both these countries. Trade relation with India is

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rather crucial to Nepal particularly due to her land-locked

geographic characteristics. Trade statistics show an increasing

trend of trade in both the exports and imports. However, it is

noteworthy that the trade balance is not in favour of Nepal. As

such, it does not present a convincing picture in the macro-

economic performance of Nepal. Both the countries have realized

the significance of bilateral trade. Trade with India is likely to play

further a key role in trade and industrial fronts in the future as

well. Trade and transit treaties held between the two countries are

continuously reflecting the fact. These treaties have increasingly

guided the trade direction, more specifically in the case of Nepal.

ECONOMIC LIBERALIZATION IN NEPAL

Nepal opened up its economy in the early 1990s with the

adoption of economic reform package. The reform measures have

since covered all sectors of the economy including trade and

investment, fiscal and monetary policies, financial and capital

markets and other economic and social sectors. The import

licensing system and quantitative restrictions were eliminated and

tariff rates and structure were reduced and rationalized to make

the trade sector competitive. The trade weighted nominal rate of

protection declined from about 90 per cent in the early 1980s to

about 31 per cent in 1994. Similarly, the average rate of protection

has declined from about 111 per cent in 1989 to 16 per cent in

1992. In a similar manner, the number of slabs subject to

protection fell from more than 100 in the 1980s to 5 in 1996.

Additional measures initiated to promote international trade

include the introduction of a bonded warehouse, duty-drawback

scheme, initiation of the multi-modal facility (dry port) and an

export-processing zone.

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A new bilateral trade treaty signed with India in 1996

supported the trade reform program of Nepal. The treaty allows

Nepal to export manufactured products to India free of customs

duty and quantitative restrictions. Similarly, in order to improve

the environment for investment, the Industrial Enterprise act, 1992

and the Foreign Investment and Technology Transfer Act (1992)

wee enacted in line with the open, liberal and market-oriented

policy. These Acts have further improved investment incentives. No

license is required for the establishment, expansion and

modernization of industries except for a few related with defense,

public health and environment. In short, the environment was

made more conducive to larger inflows of foreign direct investment

(FDI).

Financial sector reforms have also been carried out to

support the trade and industrial reforms. Interest rates were

deregulated and joint-venture banks were allowed to open up.

Nepal also included full convertibility of the Nepalese rupees on the

current account. The overvalued Nepalese currency was also

corrected to improve export competitiveness of the country.

Share of India’s exports to Nepal in Indo-SAARC export trade

It is evident from the table 4.9 that Nepal emerged as the

third largest trading partner of India after Bangladesh and Sri

Lanka during the study period. Indo-Nepal relations in trade and

other related matters are governed by the bilateral treaties of trade

and transit and agreement for cooperation and also to control the

unauthorized trade. The treaty of transit was renewed on 5th

January, 1999.10 Its validity has been made automatically

extendable for a period of seven years at a time, unless either party

10

Reeta Mathur, Op. cit. p. 243.

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give it to the other, a written notice, six months in advance, of its

intention to terminate the treaty, while the modalities of transit

routes, conditions of transit, customs arrangements as contained

in the protocol and memorandum to the treaty shall be reviewed

and modified every seven years, or earlier if warranted, to meet the

changing conditions before the automatic renewal and such

changes would be the integral part of the treaty.

Though, under the international conventions, Nepal, being a

landlocked country, India is obliged to provide only one transit

route to facilitate Nepal’s trade with third countries and 15 transit

routes have been provided through the Indian territory and more

such routes can be added to the list with mutual agreement.

India’s trade with Nepal has been substantial during the last

decade. According to table 4.9, India’s exports to Nepal during

2000-01 amounted to Rs. 643.4 crores, as compared to Rs. 377

crores in 1994-95, reflecting the compound growth rate of exports,

registered at 70.66 per cent in 2000-01 over 1994-95. But, when

the same period is considered in respect of overall exports to

SAARC nations, the exports were more than doubled with the

compound growth rate being registered at 130.93 per cent in 2000-

01 over 1994-95.

The period between 2001-02 and 2005-06 was observed to be

noteworthy as the annual growth rates of exports displayed a

remarkable performance with 58.96 in 2001-02, 65.78 per cent in

2002-03 and 81.39 per cent in 2003-04, which ultimately resulted

in the tremendous increase in compound growth rate of exports at

272.25 per cent in 2005-06 over 2001-02. (See table 4.9). On the

other hand, the compound growth rate of exports was registered at

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154.20 per cent, in respect of Indo-SAARC export trade during the

same period.

Between 2006-07 and 2010-11 also, a better trend could be

observed with regard to exports in respect of Nepal. The compound

growth rate of exports was recorded at 131.24 per cent in 2010-11

over 2006-07 in respect of Nepal. When the Indo-SAARC trade was

considered during the same period, the compound growth rate of

exports was registered at 97.76 per cent in 2010-11 over 2006-07.

the present trend is encouraging and this can be further enlarged if

export potential to that country is further identified and tapped.

The per cent share of exports to Nepal as a proportion of

exports to SAARC countries was significant. The share of exports to

Nepal was 9.88 per cent in 1994-95. However, it sharply increased

to 10.55 per cent in 1997-98. As the annual growth rate of exports

in respect of Nepal was negative by 18.45 per cent in 1998-99, the

percent share was less with 7.29 per cent in 1998-99. Another

negative annual growth rate recorded in 2000-01 at 1.82 per cent

resulted in the less percentage share of exports at 7.30 per cent in

respect of Nepal. The highest percent share of exports was observed

at 18.43 per cent in 2008-09. Hence, it is observed that the share

of exports to Nepal as a proportion of over all exports to SAARC

had been impressive and this upward trend in percentage share is

visible through out the study period.

Share of India’s imports from Nepal in Indo-SAARC import

trade

According to table 4.10, the imports from Nepal amounted

Rs. 817.4 crores in 1999-2000 as compared to 114.9 in 1994-95,

reflecting a tremendous compound growth rate at 611.40 per cent

in 1999-00 over 1994-95. When we consider the Indo-SAARC

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import trade during the same period, the compound growth rate of

imports was recorded at 210.45 per cent in 1999-2000 and 1994-

95.

As two consecutive negative annual growth rates had been

registered between 2000-01 and 2005-06, with 19.67 per cent in

2002-03, and 3.61 per cent in 2003-04, the compound growth rate

of imports was recorded just at 44.31 per cent in 2005-06 over

2000-01. On the other hand, there was a remarkable growth in

respect of Indo-SAARC trade with 194.03 per cent, being recorded

in 2005-06 over 2000-01.

Between 2006-07 and 2010-11, the compound growth rate,

recorded in respect of Indo-Nepal import trade was 56.72 per cent

in 2010-11 over 2006-07 with regard to Indo-SAARC import trade

during the same period, the compound growth rate of imports was

registered at 34.80 per cent in 2010-11 over 2006-07.

The share of imports from Nepal as a proportion of imports

from SAARC nations was very significant. The percent share of

imports from Nepal during 1994-95 was registered at 20.70 per

cent. The highest per cent share of imports in respect of Nepal was

recorded at 62.27 per cent in 2001-02 and the least per cent share

was registered at 19.16 per cent in 1995.96.

When we observe the balance of trade in respect of Nepal,

adverse balance of trade had been registered during the period

from 1998-99 to 2001-02 and the favourable balance of trade was

witnessed with rest of the period. (See table 4.11).

INDO-BHUTAN TRADE RELATION

The area of Bhutan is 46,500 sq. k.m. The capital city of

Bhutan is Thimpu. The population of Bhutan is 6, 72,425 and the

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annual growth rate of population is 2.082 per cent with a density of

the population in 45 per sq. k.m.

ECONOMY

Bhutan’s economy, one of the world’s smallest and least

developed, is based on hydroelectricity, tourism, agriculture, and

forestry.

Bhutan’s tenth five-year plan (2008-2013) focuses on ways to

manage the country’s new-found wealth with special emphasis on

three development areas: rural, regional and private-sector. India

has pledged to support and plan and promised to double the

amount of aid given to Bhutan in the previous five-year plan.

January 2004, as a member of the South Asian Association

for Regional Cooperation (SAARC), Bhutan also joined the South

Asian Free Trade Agreement (SAFTA).

Bhutan hosted the SAARC summit in Thimphu in April

2010. In February 2004 Bhutan joined the Bangladesh, Indian,

Myanmar, Singapore, and Thailand Economic Cooperation Forum

(BIMSTEC). Bhutan has applied for membership in the World

Trade Organization and is in the process of developing clear legal

and regulatory systems designed to promote business development.

INDIA-BHUTAN BILATERAL RELATIONS

Diplomatic relations between India and Bhutan were

established in 1968 with the appointment of a resident

representative of India in Thimphu. Before this our relations with

Bhutan were looked after by our Political Officer in Sikkim. The

basic framework of India - Bhutan bilateral relations is the Treaty

of Friendship and Cooperation of 1949 between the two countries,

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which was updated and signed during the visit to India of His

Majesty Jigme Khesar Namgyel Wangchuck in February 2007.

The updated India-Bhutan Treaty not only reflects the

contemporary nature of our relationship but also lays the

foundation for their future development in the 21st century. The

Treaty provides, amongst other things, for perpetual peace and

friendship, free trade and commerce, and equal justice to each

other’s citizens. India’s bilateral political relations with Bhutan

India’s have matured over the years and are characterized by close

trust and understanding and extensive cooperation in the field of

economic development, particularly in the mutually beneficial

sector of hydroelectric power.

Agreements/MOUs

India and Bhutan have signed many agreements and MOUs

during the last few decades. During the visit of His Majesty Jigme

Khesar Namgyel Wangchuck in December 2009, twelve (12)

MOUs/Agreements in areas of hydropower, IT, health/medicine,

narcotics, civil aviation, agriculture and environment were signed

A major step towards this was made when the 336 MW Indo-

Bhutan Friendship Project was commissioned at Chukha. This

hydropower-harnessing project constitutes 30 per cent of Bhutan’s

annual revenue and it’s export to India reached 75.2 per cent in

1998. Bhutan also enjoys 90 per cent of it’s trade with India and

will export more hydropower to India in the coming years.

SAARC

The Kingdom attaches great importance to SAARC. Ever

since the inception of SAARC, Bhutan has firmly supported and

promoted the activities, and worked towards making the South

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Asian Region self-reliant. This is in consistent with its policy of

developing friendly relations with all the neighboring countries. It

has also displayed a keen interest in economic cooperation and

various peacemaking efforts in South Asia.

Reflecting growing congruence in their relationship, India

and Maldives today decided to intensify bilateral cooperation in

diverse fields including trade, commerce, security, combating

piracy and terrorism as well as enhancing people-to-people contact

GOI has issued notification allowing Bhutanese passengers duty

free access at Indian airports, as well as exempting exports to

Bhutan from any export bans in India on some essential items

subject to limits.

Economic Cooperation

Mutually beneficial economic inter-linkages between India

and Bhutan have been an important element in our bilateral

relations. India continues to be the largest trade and development

partner of Bhutan. Planned development efforts in Bhutan began

in the early 1960s. The first Five Year Plan (FYP) of Bhutan was

launched in 1961. Since then, India has been extending financial

assistance to Bhutan’s FYPs. So far, nine Five Year Plans of

Bhutan have been completed.

Some of the major projects in Bhutan carried out with Indian

assistance in the past include 1020 MW Tala Hydroelectric Project,

336 MW Chukha Hydroelectric Project, 60 MW Kurichhu

Hydroelectric Project, Penden Cement Plant, Paro Airport, Bhutan

Broadcasting Station, Major Highways, Electricity Transmission

and Distribution System, Indo-Bhutan Microwave Link,

Exploration of Mineral Resources, and Survey and Mapping.

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Trade with India

India is not only Bhutan’s main development partner but

also its leading trade partner. A free trade regime exists between

India and Bhutan. The India-Bhutan Trade and Commerce

Agreement which expired in March 2005, has been renewed for a

period of 10 years. Currently, the major items of exports from

Bhutan to India are electricity (from Tala, Chikha and Kurichhu

Hydroelectric Project), base metals and articles, minerals, vegetable

fat and oils, alcoholic beverages, chemicals, cement, timber and

wood products, cardamom, fruit products, potatoes, oranges and

apples, raw silk, spices, processed food and animal products,

chemicals, wood, plastic and rubber. The Agreement on Trade and

Commerce also provides for duty free transit of Bhutanese

merchandise for trade with third countries. Sixteen exit/entry

points in India identified in the Protocol for Bhutan’s third country

trade are: Jaigaon, Chamurchi, Ulta Pani, Hathisar (Gelephu),

Darranga, Kolkata, Haldia, Dhubri, Raxaul, Panitanki,

Changrabandh, Phulbari, Dawki, New Delhi, Chennai and Mumbai.

Of these, Kolkata, Haldia, Mumbai and Kolkata are the air routes

and Raxaul is the rail route. The others are the designated road

routes.

India is not only Bhutan’s main development partner but

also its largest trade partner. During 2010, imports from India

were of the order of Rs. 2930 crores and constituted 75% of

Bhutan’s total imports. Bhutan’s exports to India in 2010

amounted to Rs. 2600 crores and constituted 90% of its total

exports. Total trade in 2010 grew by about 26% from 2009.

Trade Talks

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The India Bhutan Bilateral Trade Talks were held in New Delhi on 18-19 August 2011∗.

At the request of RGOB, Gol has agreed to the use of Dalu

LCS (land custom station) and Ghasuapara LCS (both in

Meghalaya) as additional exit/entry points for Bhutan’s trade with

Bangladesh. Ghusuapara LCS will be used only as exit point for

Bhutan for the present till the necessary infrastructure in place for

it to be used as entry point also. In addition, 4 entry/exit points for

India-Bhutan bilateral trade viz., Upper Khogla (West Bengal),

Dalmore or Birpara (West Bengal). Bokajuli (Assam) and Rangapani

(Assam) would also be notified by government of India.

Share of India’s exports to Bhutan in Indo-SAARC export trade

There are bilateral trade agreements of which provides for

free trade and commerce, between India and Bhutan. Commercial

transactions are carried out in Indian rupees and Bhutanese

regulations. India provides unhindered transit facilities to

landlocked Bhutan to facilitate her trade with third countries.

It is evident from table 4.12 that India’s exports to Bhutan

were very insignificant and less substantial. According to table

4.12, India’s exports to Bhutan which amounted Rs. 34.80 crores

in 1994-95, went up to Rs. 36.20 contributing the least compound

growth rate at 4.02 per cent in 2001-02 over 1994-95. On the other

hand there was a remarkable growth in respect of India’s exports to

SAARC, with the compound growth rate of exports being recorded

at 153.26 per cent in 2001-02 over 1994-95.

* The Bhutanese delegation was led by Mr. Sonam P. Wangdi, Director General, Department of Trade

and included representatives from Ministries of Economic Affairs, Finance and Foreign Affairs. Indian delegation was led by Joint Secretary, Ministry of Commerce and included representatives from Ministries of Commerce, External Affairs and Finance.

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Between 2002-03 and 2006-07 also, not much growth was

noticed in respect of India’s exports to Bhutan. The compound

growth rate of exports was recorded just at 37.7 per cent in 2006-

07 over 2003-04. But, in respect of Indo-SAARC trade, similar

trend had been repeated with exports being doubled, contributing

the compound growth by 122.04 per cent in 2006-07 over 2003-04.

The trends in exports, which were observed during the two

earlier phases, in respect of Bhutan, had not been repeated

between 2007-08 and 2010-11. The items which India exported to

Bhutan during this period were more than doubled with the

compound growth rate being recorded at 104.73 per cent in 2010-

11 over 2007-08. Similar change in respect of Indo-SAARC trade

had been witnessed during the same period. The remarkable trends

n exports, observed in respect of Indo-SAARC trade during the

earlier two phases had not been repeated in this last phase of the

study period. The compound growth rate of exports, recorded in

respect of Indo-SAARC trade was 49.52 per cent in 2010-11 over

2007-08.

When we considered the percentage share of exports to

Bhutan in Indo-SAARC export trade, the following facts have been

noticed.

According to table 4.12, India’s exports to Bhutan, as a

proportion of exports to SAARC nations was less than 1 per cent

during period from 1994-95 to 2001-02 except 1996-97.

From 2002-03 onwards, there was a slight increase in

percentage share, in respect of Indo-SAARC export trade. Highest

percentage of share was recorded at 2.16 per cent in 2003-04.

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Share of India’s imports from Bhutan in Indo-SAARC import

trade

It is evident from table 4.13 that India’s import trade from

Bhutan also was insignificant. India’s imports from Bhutan during

1999-2000 amounted Rs. 78.1 crores as compared to 57.4 crores

in 1994-95, reflecting a compound growth rate at 36.06 per cent in

1999-2000 over 1994-95. On the other hand, there was a

remarkable growth, in respect of Indo-SAARC import trade with the

compound growth rate of imports being recorded at 210.45 per

cent in 1999-2000 over 1994-95.

Between 2000-01 and 2005-06, there was a tremendous

growth, in respect of Indo-Bhutan import trade, with the

compound growth rate of imports being registered at 307.67 per

cent in 2005-06 over 2000-01. Similar trend can be noticed in

respect of Indo-SAARC import trade with the compound growth

rate of imports being recorded at 194.03 per cent in 2005-06 over

2000-01.

The export trend which was registered in the earlier phase

with both Indo-Bhutan import trade and Indo-SAARC import trade

had not been observed during the last phase of the study period

i.e., 2006-07 act 2010-11. The compound growth rate of imports,

recorded in respect of Indo-Bhutan import trade was at 43.32,

while that of the compound growth rate, recorded in respect of

Indo-SAARC import trade was at 34.80 per cent in 2010-11 over

2006-07.

The share of imports from Bhutan as a proportion of overall

imports from SAARC was also less substantial. The percentage

share of imports in respect of Bhutan was recorded at 10.34 per

cent in 1994-95. However, this percentage share went up to 13.97

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per cent in1996-97; but declined to 5.74 per cent in 1997-98 and

further decreased to at 1.32 per cent in 1998-99. The percentage

share of imports, recorded in respect of Bhutan in 2010-11 was at

9.97 per cent.

Balance of trade with Bhutan

It is evident from the table 4.14 that the trade balance

between India and Bhutan was not in favour of India as India’s

imports from Bhutan outweighed the exports to that country.

Excepting the year 1998-99 as the years from 2002 to 2005, India

had always trade deficit with Bhutan.

INDO-PAKISTAN TRADE

The area of Pakistan is 803.943 sq. k.m. almost twice the

size of California. The capital city of Pakistan is Islamabad. The

other cities are Ravalpindi, Karachi, Lahore, Faisalabad and

Hyderabad. The population of Pakistan is 16,77,62,040 with an

annual growth rate of 1.81 per cent.

Economy

Pakistan had a GDP growth rate of 2.7 per cent. Its Per

capita GDP was $2600 by the end of 2009. Pakistan has natural

resources like arable land, natural gas, substantial hydropower

potential, coal, iron ore, copper, salt, limestone. Its agriculture:

products-are wheat, cotton, rice, sugarcane, eggs, fruits,

vegetables, milk, beef, and mutton.

Industrial sector comprises and apparel, food processing,

pharmaceuticals, construction materials, shrimp, fertilizer, and

paper products. Pakistan foreign trade amounted to $17.87 billion.

at the end of 2009. Textiles (garments, bed linen, cotton cloth, and

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yarn), rice, leather goods, sports goods, carpets, rugs, chemicals

and manufactures are the major export items. Major partners are

U.S. 16%, United Arab Emirates 11.7%, Afghanistan 8.6% U.K.

4.5%, and China 4.2%. Imports are worth arround-$28.31 billion.

Major import items are petroleum, petroleum products, machinery,

plastics, paper and paper board, transportation equipment, edible

oils, pulses, iron and steel, tea. Major partners in Pakistan imports

are China 14.1%, Saudi Arabia 12%, U.A.E. 11.2%, Kuwait 5.4%,

India 4.8%, U.S. 4.7%, and Malaysia 4.1%.

ECONOMY

The World Bank considers Pakistan a low-income country.

GDP is around $166 billion at the official exchange rate. The

population numbered some 167 million in 2008 with a 1.81%

growth rate. Not more than 55.0% of adults are literate, and life

expectancy is about 64 years. In 2008-2009, the GDP growth rate

was 3.7%, and unemployment was estimated at 14%. Year-over-

year consumer price inflation averaged 13.6% in 2009. Main

inflation drivers include food and utility prices. Low levels of

spending in the social services and high population growth have

contributed to persistent poverty and unequal income distribution.

Pakistan’s extreme poverty and underdevelopment are key

concerns, especially in rural areas. The country’s economy remains

vulnerable to internal and external shocks due to internal security

concerns and the global financial crises.

Industry

Pakistan’s manufacturing sector accounts for about 25% of

GDP. Cotton textile production and apparel manufacturing are

Pakistan’s largest industries, accounting for about 51.4% of total

exports. Other major industries include food processing, beverages,

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construction materials, clothing, and paper products.

Manufacturing sector growth has slowed in the recent years due to

energy shortages and capacity constrains. However, the sector is

forecast to grow 5.5% for FY 2010. Despite government efforts to

privatize large-scale units, the public sector continues to account

for a significant proportion of industry. The government seeks to

diversify the country’s industrial base and bolster export

industries. Net foreign investment in Pakistani industries is only

0.5% of GDP, Pakistan’s search for additional foreign direct

investment has been hampered by concerns about the security

situation, domestic and regional political uncertainties, and

questions about judicial transparency.

Foreign Trade

Weak world demand for its exports and domestic political

uncertainty has contributed to Pakistan’s high trade deficits. In

major imports, which fell to $28.4 billion in 2009, include

petroleum products, edible oil, wheat, chemicals, fertilizer, capital

goods, industrial raw materials, and consumer products. Energy

imports account for nearly 30% of Pakistan’s imports, and the total

gap between electricity supply and demand in Pakistan is over

4,800 megawatts (MW). The ongoing energy crisis and security

concerns, together with a decline in global demand, have hampered

Pakistan’s textile-reliant export base. Pakistan’s exports continue

to be dominated by cotton textiles and apparel, despite government

diversification efforts.

FOREIGN RELATIONS

After September 11, 2001, Pakistan’s prominence in the

international community increased significantly, as it pledged its

alliance with the U.S. in countering terrorism efforts and made a

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commitment to eliminate terrorist camps on its territory.

Historically, Pakistan has had difficult and volatile relations with

India, long-standing close relations with China, extensive security

and economic interests in the Persian Gulf, and wide-ranging

bilateral relations with the United States and other Western

countries. It expresses a strong desire for a stable Afghanistan.

Trade cooperation between India and Pakistan was a direct

outcome of the partition of Indian sub-continent on August 14,

1947. At that time, India and Pakistan were highly dependent on

each other for trade. Thereafter, both resorted to deliberate

measures to minimize their trade dependence on each other.

India’s share in Pakistan’s global exports and imports was 23.6 per

cent and 50.6 per cent, respectively, in 1948-49. These shares

went down to 1.3 per cent and 0.06 per cent in 1975.76. Similarly,

Pakistan’s share in India’s global exports and imports was 2.2 per

cent and 1.1 per cent respectively, in 1951-52. These shares went

down to 0.02 per cent and 0.4 per cent, in 1975-76, and 0.7 per

cent and 0.13 per cent in 2005-06. This shows that the trade

between these two neighboring countries has been much below the

potential.

Economic Structure of India and Pakistan

Before we discuss the potentialities of trade between India

and Pakistan, it would be better to have a glance at the economic

structure of India and Pakistan. India and Pakistan are the

neighboring and developing countries of the SAARC region. India is

comparatively larger in terms of her size, population, GDP etc.,

Since partition, relations between Pakistan and India have

been characterized by rivalry and suspicion. Although many issues

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divide the two countries, the most sensitive one since

independence has been the status of Kashmir.∗∗∗∗

In fact, the period between 1965 and 1971 witnessed two

wars between India and Pakistan. Immediately after the war,

Pakistan imposed official embargo on her trade with India. The

trade relations between the two neighboring countries remained

suspended for nine years and created problems for both the

countries. Both were forced to import many items from the world

market at much higher prices. The same could have been imported

from each other at much lower prices involving substantially lower

transport and transshipment costs.

In July 1972, following the 1971 Indo-Pakistan war, which resulted

in the creation of an independent Bangladesh, President Zulfiqar

Ali Bhutto and the then Indian Prime Minister Indira Gandhi met

in the hill station of Shimla and agreed to a line of control in

Kashmir. Both leaders endorsed the principle of settlement of

bilateral disputes through peaceful means. In 1974, Pakistan and

India agreed to resume postal and telecommunications linkages

and to enact measures to facilitate travel. Trade and diplomatic

relations were restored in 1976 after a hiatus of 5 years.

The resumption of trade relations between them took place with

the signing of bilateral trade agreement on January 23, 1975. But

∗∗∗∗ At the time of partition, the princely state of Kashmir, though ruled by a Hindu king, had an

overwhelmingly Muslim population. When the king hesitated in acceding to either Pakistan or India in 1947, some of his Muslim subjects revolted in favor of joining Pakistan. In

exchange for military assistance in containing the revolt, the Kashmir ruler offered his allegiance to India. Indian troops occupied the eastern portion of Kashmir, including its capital, while the western part came under Pakistani control India submitted this dispute to the United Nations on January 1, 1948. One year later, the UN arranged a cease-fire along a line dividing Kashmir but leaving the northern end of the line not demarcated and the Valley of Kashmir (with the majority of the population) under Indian control. India and Pakistan agreed to a UN-supervised plebiscite to determine the State’s future. This plebiscite has not occurred because the main precondition, withdrawal of both nations’ forces from Kashmir, has failed to take place. Pakistan has since fought three wars with India on Kashmir issue, in 1948, 1965, and the Kargil conflict in 1999.

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the flow of trade was restricted to government levels. This trade

agreement expired on January 22, 1978 and thereafter trade has

continued without any agreement. In July 1982, Pakistan declared

a list of 40 items in which private sectors of the two countries

could trade11. The mutual trade has grown significantly since

1989, when Pakistan expanded the list of approved imports from

India to 571 items, and further enhanced it to 600 items on July

17, 2000, and 1075 items on November 3, 2006. But this list is

just 10 per cent of the total number of classified tariff lines, and

does not include items like consumer durables, computer software,

textiles machinery, automobiles, two wheelers, cars etc.,

Share of India’s exports to Pakistan in Indo-SAARC trade

The role of external sector, mainly of trade, assumes

significance in the development of India and Pakistan economies

since the partition in 1947. Foreign trade registered a phenomenal

increase in India and Pakistan during 1950-51 to 2010-11.

India’s trade with Pakistan is constrained by the

discriminatory policy adopted by Pakistan against imports from

India. While we accord MFN treatment to imports from Pakistan,

they allow their private sector to import only selected items from

India. Despite bilateral discussions and our diplomatic demarches

in this regard, Pakistan is yet to allow its trade with India on free

trade and MFN basis.

According to table 4.15, India’s exports to Pakistan during

1999-2000, amounted Rs. 402.8 crores, as compared to Rs. 179.70

crores in 1994-95, reflecting a compound growth rate at 124.15 per

cent in 1999-2000 over 1994-95. On the other hand, the

11 Ranjit Singh Ghuman, Indo-Pakistan Trade Cooperation and Saarc, Peace and Democracy in

South Saia, Volume 2, Nos.1& 2 p.72

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compound growth rate of exports recorded in respect of Indo-

SAARC export trade was at 58.40 per cent in 1999-2000 over

1994-95.

Between 2000-01 and 2005-06, remarkable growth had been

witnessed in respect of both Indo-Pakistan export trade and Indo-

SAARC trade. The compound growth rate of exports, recorded in

respect of Indo-Pak export trade was at 257.53 per cent in 2005-06

over 2000-01, while it was registered at 178.79 per cent, in respect

of Indo-SAARC trade during the same period.

Between 2006-07 and 2010-11, the compound growth rate of

exports, recorded in respect of Indo-SAARC export trade was higher

than the compound growth rate of exports recorded, in respect of

Indo-Pak export trade. The compound growth rate of exports,

recorded in respect of Indo-Pak export trade was at 72.21 per cent,

while it was at 97.70 per cent in 2010-11 over 2006-07, in respect

of Indo-SAARC export trade.

With regard to India’s share of exports to Pakistan in Indo-

SAARC export trade, it was observed that the percentage share was

not only less substantial but also insignificant. The percentage

share of exports stood well below 10 per cent till 2003-04.

Thereafter, the percentage share exhibited an upward trend. The

highest percentage share was recorded at 20.86 per cent in 2006-

07.

Share of India’s imports from Pakistan in Indo-SAARC import

trade.

The imports from Pakistan had exhibited a fluctuating trend

through out the study period. According to table 4.16, the imports

from Pakistan during 1999-2000 amounted Rs. 295.6 crores as

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compared to 165.6 crores in 1994-95, contributing a compound

growth rate at 78.50 per cent in 1999-2000 over 1994-95.

On the other hand, the compound growth rate of exports was

very high at 210.45 per cent in respect of Indo-Pak import trade

during the same period.

The period between 2000-01 and 2005-06, was very

encouraging for exports in respect of Indo-Pak import trade as well

as Indo-SAARC import trade. The compound growth rate of

imports, recorded in respect of Indo-Pak import trade was at

171.79 per cent, while that of the compound growth rate, recorded

in respect of Indo-SAARC trade was at 194.03 per cent in 2005-06

over 2000-01.

The rate at which, the compound growth, recorded in respect

of Indo-Pak import trade, was very low at 3.83 per cent in 2010-11

over 2006-07. But, it was a little bit batter in respect of Indo-

SAARC import trade, with the compound growth rate being

recorded at 34.80 per cent in 2010-11 over 2006-07.

India’s balance of trade with Pakistan

India’s exports to Pakistan were higher as compared to her

imports. The balance of trade was unfavorable to India during

1979-93, but it became favorable during 1993-2006, except

1998=99, when India imported a large quantity of sugar from

Pakistan.

It is evident from the table 4.17 that the balance of trade

with Pakistan had been favorable to India through out the study

period except 1998-99 with the adverse balance of trade being

registered at Rs. 462.8 crores. Balance of trade had exhibited an

upward trend from 2002-03 onwards.

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Gains from mutual trade to India and Pakistan

It is gainful to India and Pakistan to promote mutual trade

as both are neighboring countries and can have trade by land

route, which would save a lot in terms of transportation and

transshipment costs. At present, major portion of trade between

India and Pakistan is through the ports of Karachi and Mumbai.

From economic point of view, it is illogical to confine trade to ports

only, when a large common land border is shared by both the

countries. Land route is cheaper, faster and safe. In fact, there is a

need to open up more trade traffic by Wagha/Attari and

Hussainiwala check posts. Besides, there are other land trade

routes in Kashmir, Rajasthan and Gujarat. All these trade routes

were operational on the eve of partition. There is an immediate

need to revive and strengthen these land trade routes. The

infrastructure, including the customs clearance, needs to be

strengthened at all border check posts in order to promote trade. It

would also help a smooth and speedy trade of the agricultural and

perishable commodities from both sides of the border. It would

greatly facilitate the movement of high bulk, low value cargo.

Pakistan’s allowing imports of onions, garlic, potatoes, tomatoes,

meat and livestock through Wagha border in July 2005 is a

welcome step in this regard.

India has a cost advantage over Pakistan in engineering

goods, bicycles, agriculture products, tyres, textiles machinery,

plastics, transport equipments, tea, leather goods, etc., The

difference in the price of Suzuki Mehran 800/Maruti 800 at Lahore

(Pakistan) and Amritsar (India) is about Indian Rs one lac. Pakistan

imports about 8 lakh tyres and 45 lakh ton diesel per annum,

which could be had from India. Pakistan can gain from the import

of agricultural produce like wheat, spices, tea and other edibles to

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meet the production shortfalls at competitive prices. Further the

current price of bicycles in Pakistan is 20 per cent higher than that

in Ludhiana (Indian Punjab). During 2004, Paksitan was the fifth

largest tea importer in the world after USA, U.K., Russian fed., and

Japan, and India was the fourth largest tea exporter in the world

after Sri Lanka, Kenya and China. But Pakistan has never

imported more than 4.5 per cent of its total tea requirements from

India. Pakistan imports tea from Kenya and Rawanda at high cost.

According to Indian Tea Association, India can meet one-fifth tea

requirements of Pakistan. But Pakistan imposes 49 per cent excess

duty on the import of Indian tea, in addition to 20 per cent basic

duty. The other items of cost advantageous to Pakistan from India

are iron ores and sewing machines. India can also benefit from

Pakistan by importing sugar refined, almonds, etc., Pakistan has

excess capacity of 3000 MW electricity which can be easily given to

northern Indian states if the required arrangements are done.

Prices of mutual trade items between the two countries are also

competitive.

It is estimated that the unofficial trade between India and

Pakistan stands at more than US $ 2 bn annually. Much of the

trade between them is in respect of banned items like tyres,

medicines, cosmetics, viscose fibers, textile machinery, chemicals,

ayurvedic medicines, cashew nuts, etc., It has been routed through

third country like Afghanistan. Dubai, Hong Kong, Singapore and

Gulf States. This tortuous route costs both India and Paksitan

dearly in terms of foreign exchange outflows, as well as third party

trading commissions. The lack of land route is also the reason for

unofficial trade. It appears from the high volume of unofficial trade

that there exists tremendous trade potential between the two

countries. Though there is no restriction on the import of goods

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from Pakistan to India, Pakistan has placed several restrictions on

imports from India.

It the prices of various items which they have been importing

from each other, are either competitive or lower than the world

prices Rock salt, surgical instruments, oil cake, ayurvedic and

unani herbs, foreign cotton, sugar, degressed wool, denim, etc.,

were the major items in which India gained from her imports from

Pakistan during 2004-05. India had net actual gains worth US$

486.3 lakhs for imports from Pakistan during this period. The

major items of India’s import from Pakistan were cane moles of

sugar, and dates fresh/soft/hard, sugar moles, oil cake, foreign

cotton, naphtha, solvent crude, raisins and sultanas, etc.,

Iron ores, cutch extracts, bidi leaves, vegetable seeds, tea

black, ginger, ayurvedic and unani herbs, polypropylene, etc., were

the major items in which Pakistan gained from her imports from

India during 2004-05. Pakistan had net actual gains worth US$.

India, Pakistan to hold talks for trade in petroleum products

India and Pakistan have agreed to constitute a joint group of

experts regarding trade in petroleum products. Besides, the two

countries have come to a broad under-standing on possible grid

connectivity between Amritsar and Lahore to enable trade of up to

500 MW of power.

Both sides also agreed to continue efforts to remove

impediments to bilateral investments. They also agreed to push for

further liberalization of the business visa arrangements during

2012. India also welcomed the decision taken by Pakistan to

accord Most Favoured Nation (MFN) status to India and to the

mandate given for full normalization of the bilateral trade relations.

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NEW TRADE REGIME12

On developing infrastructure for trade through the Attari-

Wagah land route, they agreed that all infrastructure construction

would be completed and trade be made fully operational by

February, 2012. This time-line would coincide with Pakistan’s

announcement of a small negative list of items.

All items other than those on the negative list shall be freely

exportable from India to Pakistan. The new trading regime will be

applicable to all trade through the land route after the

infrastructure at Attari-Wagah is commissioned.

It was also agreed that software body Nasscom will

coordinate with Pakistan Software Export Development Board to

facilitate a road show for Pakistani IT companies at Bangalore,

Hyderabad and other Indian IT hubs in February 2012.

India welcomes Pakistan move to shift to negative list regime

India has welcomed the Pakistan Government’s decision to

ease trade with India by shifting from a Positive List Regime to a

small Negative List for trade with India. This decision will mark a

dramatic shift in the line that can be traded, as it would mean that

now almost 90 per cent items can be traded with Pakistan as

opposed to 17 per cent earlier.13

But the latest move will permit India to export around 6,800

items to Pakistan. At present, Pakistan’s positive list allows imports

of only about 1,950 items from India.

12 ---India, Pak to hold talks for trade in petroleum products, Business Line, Nov.16, 2011. 13

---India welcomes Pakistan move to shift to negative list regime, Business Line, March 1, 2012

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This development reaffirms the commitment of both

Governments for trade normalization as per the roadmap drawn

during the visit of Pakistan Commerce, Minister during 2011.

There is reiteration of commitment that the negative list will be

phased out by the end of 2012. This move will open massive

opportunities for Indian exports to Pakistan

Direct exports from India to Pakistan will cut down the cost

and will benefit consumers in Pakistan, adding that the move will

gradually pave the way for Most Favored Nation status to India.

Dismantling will increase official trade between the two

countries to cross $6 billion by 2014. Direct trade between India

and Pakistan constitutes less than one per cent of their respective

global trades.

Trade impasse can be overcome

Border disputes or political bickering need not be deterrents

for the promotion of trade relations between the countries if one

takes a clue from the burgeoning commercial relationship between

China and Taiwan∗.

The same holds for Indo-Pakistan trade relations, which

cannot plausibly ever resolve issues relating to Kashmir or

terrorism. What they can do, nevertheless, is to keep these

disputes in a separate ‘we-shall-agree-to-disagree’ box, and go

ahead doing business as the Chinese and the Taiwanese today are:

Annual bilateral trade between the two has crossed $150 billion,

∗∗∗∗ Trade has the potential for bringing people together and creating the mutual economic

benefits flowing from such engagements. The best example here is the commercial pact signed between China and Taiwan in June 2010, which, by no means, ends disputes over the latter’s independent-nation claims. But by opening up its huge market to the product of farmers and fishermen in Taiwan, China has certainly earned more goodwill than through an earlier muscular foreign policy that bordered on the belligerent.

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compared with the paltry $2.7 billion official figure for India and

Pakistan in 2010-11.14

It is in this light that one must appreciate the conscious

steps, especially since 2011, taken by India and Pakistan to

‘normalize’ trade with one another. Pakistan, on its part, has

decided to accord Most Favored Nation (MFN) status to India,

Technically, it means treating imports from India on a par with

that from other countries, Pakistan currently maintains a ‘positive

list’ of 1,945, goods that alone are importable from India. This is to

be replaced by a ‘negative list’ of some 700 items, which, too, is

supposed to be phased out as part of the plan to grant MFN status

to India by end-2012.15

India should, in any case, keep its side of the bargain by

addressing Pakistani concerns over non-tariff barriers on cement,

textiles, surgical instruments and leather imports. There is no

reason for India to not iron out wrinkles in its product certification

and testing standard procedures, notwithstanding Pakistani

intransigence on meeting trade commitments under the World

Trade Organization (WTO).

On the contrary, it lends more credibility to India’s position

at various international forums. Denial of MFN status is something

that India can easily raise at the WTO’s Dispute Settlement Body.

By not doing so, India has already scored a moral victory-a fact

acknowledge even by some Pakistani commentators.

Some heartening developments:

India’s trade sops to Pakistan: In a move to help promote

trade and bilateral ties with Pakistan, Indian government is set to 14 Editorial, Commerce with Pakistan, Business Line,, Feb.17, 2012 15

Loc.cit.

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slash 30% items or 254 products from the sensitive list under the

SAFTA.16

The demand for reciprocity on MFN has been pending since

1996. Promising to grant MFN by the end of the year 2012,

Pakistan has notified a negative list, where trade will not be

permitted, instead of the earlier system of a small positive list of

products that reduced trade to a trickle between the two

neighbors17.India has decided to unilaterally grant preferential

access to an additional 30 per cent items from Pakistan to help

speed up improvement in trade ties following a breakthrough

achieved in May 2011.

India desires a quick progress on expanding the list of

products from Pakistan that can be traded through the land route,

especially the Attari-Wagah border. The gate will have the capacity

to handle about 600 trucks a day and is expected to increase trade

from the present $2.7 billion (Rs 13,880 crores). The opening of

the new gate is expected to reduce processing time, paving the way

for enhanced people-to-people contact and expansions of trade bet-

ween the two countries. At present Pakistan allows only 137 items

to be imported from India through the land route out of around

6,000 tradable items.18

INDO-MALDIVES TRADE

The area of Maldives is 298 sq. k.m. The capital city of

Maldives is Male. Here, the climate is hot and humid. The

population of Maldives is 3.14,000. The growth rate is 1.66 per

16

Sidhartha & Rajeev, India to offer fresh trade sops to Pakistan to strengthen ties, Times of India,

August 18,2012. 17

Loc.cit. 18 Asit Ranjan Mishra, Pakistan may soon free up trade via land route with India, Mint, Sep.4,

2012.

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cent. The GDP is $1.48 billion and the growth rate is 4.8 per cent.

The per capita GDP is around $4770 by the end of 2009.

Over the years, the Maldives had received economic

assistance from multilateral development organizations, including

the UN Development Program (UNDP), Asian Development Bank,

and the World Bank. Individual donors-including Japan, India,

Australia, and European and Arab countries (including Islamic

Development Bank and the Kuwaiti Fund)-also have contributed.

In a bid to promote exports, the U.S. Government restored the

Generalized System of Preferences (GSP) trade program to the

Maldives in December 2009. The United States seeks to provide

various other assistance efforts to defend against climate change,

prevent drug use, and enhance U.S. investment. The Maldives

became a member of the International Labor Organization in 2009.

Diversifying beyond tourism and fishing, reforming public

finance, and increasing employment are the major challenges

facing the government. Over the longer term Maldivian authorities

worry about the impact of erosion and possible global warming on

their low-lying country.

Tourism dominant economy

In recent years, Maldives has successfully marketed its

natural assets for tourism like beautiful picturesque, unpolluted

beaches on small coral islands, diving in blue waters abundant

with tropical fish, and glorious sunsets. Tourism now brings in

about $600 million a year. Tourism and related services

contributed 29% of GDP in 2010. But its indirect contribution is

much higher. As a result, tourism is the catalyst for growth. Since

the first resort was established in 1972, more than 95 islands have

been developed, with a total capacity of some 23,600 beds.

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Maldives has embarked on an ambitious tourism expansion plan;

several resorts are under construction.

Fishing: This sector employs about 11% of the labor force. The

fisheries industry, including fish processing, traditionally

contributes about 7% of GDP. Due to a drastic drop in the fish

catch, the industry’s contribution to GDP has declined in the

recent years it was only about 4% in 2008 and 3% in 2009. More

than 40% of fish production is exported, largely to Sri Lanka,

Japan, Hong Kong, Thailand, and the European Union. Ninety per

cent of all marine product exports comprises fresh, chilled, frozen,

dried, salted, and canned exports.

Sectoral Contributions

Agriculture: Poor soil and scarce arable land have historically

limited agriculture of a few subsistence crops, such as coconut,

banana, breadfruit, papayas, mangoes, taro, betel, chilies, sweet

potatoes, and onions. Almost all food, including staples, has to be

imported. Agriculture provides about 2.0% of GDP.

Manufacturing: The manufacturing sector provides less than 7%

of GDP. Traditional industry consists of boat building and

handicrafts, while modern industry is limited to a few tuna

canneries, a bottling plant, and a few enterprises in the capital

producing PVC pipe, soap, furniture, and food products.

Thus it is clear that tourism and fishing form the backbone

of the Maldivian economy. More than 700,000 tourists visit

annually. Fishing remains an important part of economy as well.

The Maldivian economy made a remarkable recovery, with a

rebound in tourism and post-tsunami reconstruction.

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The Maldives had a merchandise trade deficit of under $300

million until 2003. Since then the trade deficit has reached an

unprecedented $780 millions in 2010. The balance of payments

recorded a surplus of about $50 million. Tourism was expected to

continue to grow in 2011.

Maldives Relations with India

India enjoys a considerable influence over Maldives’ foreign

policy and provides extensive security co-operation especially after

the Operation Cactus in 1998 during which India repelled Tamil

Mercenaries who invaded the country. As founder member in 1985

of the South Asian association for Regional Cooperation SAARC,

the Maldives has taken the lead in calling for a South Asian Free

Trade Agreement, the formulation of a Social Charter, the initiation

of informal political consultations in SAARC frums, the lobbying for

greater action on environmental issues, the proposal of numerous

human rights measures such as the regional convention on child

rights and for setting up a SAARC Human Rights Resource Centre.

The Maldives is also an advocate of greater international profile for

SAARC such as through formulating common positions at the UN.

India has started the process to bring the island country into

India’s security grid. The move comes after the moderate Islamic

nation approached New Delhi in Jan 2012 over fears that one of its

island resorts could be taken over by terrorists given its lack of

military assets and surveillance capabilities. India has also agreed

for the following things.

• India will permanently base two helicopters in the country to

enhance its surveillance capabilities and ability to respond

swiftly to threats.

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• Maldives has coastal radars on only two of its 26 atolls. India

will help set up radar on all 26 for seamless coverage of

approaching vessels and aircraft.

• The coastal radar chain in Maldives will be networked with

the Indian coastal radar system. India has already

undertaken a project to install radars along its entire

coastline. The radar chains of the two countries will be

interlinked and a central room in India’s Coastal Command

will get a seamless radar picture.

• The Indian Coast Guard (ICG) will carry out regular Dornier

sorties over the island nation to look out for suspicious

movements or vessels. The Southern Naval Command will

overlook the inclusion of Maldives into the Indian security

grid.

• Military teams from Maldives will visit the tri-services

Andaman Nicobar Command (ANC) to observe how India

manages security and surveillance of the critical island

chain.

Share of India’s exports to Maldives in Indo-SAARC export

trade

Indo-Maldives trade is regulated in terms of bilateral trade

agreement signed in 1981. It is evident from the table 4.18 that

India’s exports to Maldives have been less substantial through out

the study period.

According to table 4.18, India’s exports to Maldives during

1999-2000 amounted to Rs. 31.60 crores as compared to Rs. 48.30

crores in 1994-95, reflecting a negative compound growth rate of

exports at 34.57 per cent in 1999-2000 over 1994-95. On the other

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hand India’s exports to SAARC countries registered a positive

compound growth of exports during the same period with 58.40 per

cent in 1999-2000 over 1994-95.

Owing to a tremendous annual growth rate of exports

recorded in respect of Maldives at 255.69 per cent in 2000-01 over

the previous year a positive compound growth rate was registered

between 2000-01 and 2004-05. A compound growth rate of exports

had been recorded at 90.30 per cent in 2004-05 over 2000-01.

India’s export trade in respect of SAARC also had been encouraging

during the same period with the compound growth rate of exports

being recorded at 126.48 per cent in 2004-05 over 2000-01.

Similar trend had been repeated in respect of Indo-SAARC trade

during the period 2005-06 and 2010-11 with the compound growth

rate of exports registered at 135.71 per cent in 2010-11 over 2005-

06 as against the compound growth rate of exports recorded in

respect of Indo-Maldives export trade, at 61.76 per cent in 2010-11

over 2005-06.

When we considered the percentage share of exports to

Maldives in Indo-SAARC export trade, it was very insignificant.

This percentage share of exports was very high at 1.52 in 2008-09,

whereas it was recorded least at 0.52 per cent in 1999-2000.

Share of India’s imports from Maldives in Indo-SAARC import

trade

It was observed from table 4.19 that the export trade with

Maldives was very insignificant period except 2010-11, which

recorded a percentage share at 1.57 per cent.

According to table 4.19, India’s imports from Maldives during

1999-2000 amounted to Rs. 1.4 crores as compared Rs. 0.7 crores

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in 1994-95, contributing the compound growth rate of exports at

142.85 per cent. On the other hand, the compound growth rate of

imports, recorded in respect of Indo-SAARC import trade, during

the same period was at 210.45 per cent in 1999-2000 over 1994-

95.

Between 2000-01 and 2004-05, the compound growth rate of

imports, recorded in respect of Indo-Maldives import trade was at

200 per cent in 2004-05 over 2000-01, whereas it was at 100.61

per cent in respect of Indo-SAARC import trade during the same

period.

Between 2005-06 and 2010-11, there was a huge growth in

respect of Indo-Maldives import trade. The imports from Maldives,

which amounted to Rs. 13.8 crores in 2006-07 went up abnormally

to Rs. 144.5 in 2010-11, contributing a tremendous compound

growth rate at 1542.04 per cent in 2010-11 over 2006-07. But the

compound growth rate of imports, recorded in respect of Indo-

SAARC import trade was just at 46.95 per cent in 2010-11 over

2006-07.

Balance of trade with Maldives

It was observed from the table 4.20 that India’s balance of

trade with Maldives had been favourable through out the study

period, but with less magnitude. Hence, it is felt that effective

measures have to be adapted to increase the trade between India

and Maldives.

INDIA-AFGHAN RELATIONS

Bilateral relations between India and Afghanistan have been

traditionally strong and friendly. While India was the only South

Asian country to recognize the Soviet-backed Democratic republic

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of Afghanistan in the 1980s, its relations were diminished during

the Afghan civil wars and the rule of the Islamist Taliban in the

1990s. India aided the overthrow of the Taliban and became the

largest regional provider of humanitarian and reconstruction aid.

The new democratically elected Afghan government

strengthened its ties with India in wake of persisting tensions and

problems with Pakistan, which was suspected of continuing to

shelter and support the Taliban. India pursues a policy of close

cooperation to bolster its standing as a regional power and contain

its rival Pakistan, which it maintains is supporting Islamic

militants Kashmir and other parts of India. India is the largest

regional investor Afghanistan, having committed more than US$

2.2 billion for reconstruction purposes.

The area of Afghanistan is 65, 2238 sq. k.m. with dry climate

cold winters and hot summers. The population of Afghanistan is

28.4 millions. The main languages spoken are Dari and Pashto. Its

GDP is around $27billions with a growth rate of GDP at 22.5% and

per capita income at $800 by the end of 2010.

ECONOMY

In the 1930s, soon after its independence in 1919

Afghanistan embarked on a modest economic development

program. The government founded banks; introduced paper

money; established a university; expanded primary, secondary, and

technical schools; and sent students abroad for education. The

1979 Soviet invasion and ensuing civil war destroyed much of the

country’s limited infrastructure and disrupted normal patterns of

economic activity. Gross domestic product fell substantially

because of loss of labor and capital and disruption of trade and

transport. Continuing internal strife hampered both domestic

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efforts at reconstruction as well as international aid efforts.

However, Afghanistan’s economy has grown at a fast pace since the

fall of the Taliban in 2001, albeit from a low base. GDP growth

exceeded 12% in 2007 and 2.4% in 2008; growth for 2009-2010

was 22.5%. Despite these increases, unemployment remains

around 40% and factors such as corruption, security, and shortage

of skilled workers constrains development and the conduct of

business in the country.

Agriculture

Majority of Afghan population (i.e, 85%) dependent on

agriculture and allied businesses for their livelihoods. Opium

poppy production and the opium trade continue to have a

significant monetary share of the country’s agricultural economy.

The major food crops produced are: corn, rice, barley, wheat,

vegetables, fruits, and nuts. The major industrial crops are: cotton,

tobacco, madder, castor beans, and sugar beets. Agricultural

production is constrained by an almost total dependence on erratic

winter snows and spring rains for water.

Trade and Industry

Afghanistan is endowed with natural resources, including

extensive deposits of natural gas, petroleum, coal, copper,

chromite, talc, barites, sulfur, lead, zinc, iron ore, salt, and

precious and semiprecious stones. Unfortunately, ongoing

instability in certain areas of the country, remote and rugged

terrain, and an inadequate infrastructure and transportation

network have made mining these resources difficult, and there

have been a few serious attempts to further explore or exploit

them.

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The most important resource has been natural gas, first

tapped in 1967. At their peak during the 1980s, natural gas sales

accounted for $4300 million a year in export revenues (56% of the

total). Ninety percent of these exports went to the Soviet Union to

pay for imports and debts. However, during the withdrawal of

Soviet troops in 1989, Afghanistan’s natural gas fields were capped

to prevent sabotage by the mujahidin. Restoration of gas

production has been hampered by internal strife and the

disruption of traditional trading relationships following the collapse

of the Soviet Union. In addition, efforts are underway to create

Reconstruction Opportunity Zones (ROZs) in order to stimulate

badly needed jobs in underdeveloped areas where young men are

lured into illicit and destabilizing activities.

Share of India’s exports to Afghanistan in Indo-SAARC export trade

Afghanistan, being added to the regional grouping at the

behest of India on November 13, 2005, became a member on April

3, 2007. So, trade with Afghanistan could begin from 2005-06

onwards, as a member of the SAARC group.

According to table 4.21, India’s exports to Afghanistan,

amounted to Rs. 631.6 crores in 2005-06. The exports in 2006-07,

went up to Rs. 822.3 crores contributing the annual growth rate of

exports at 30.19 per cent in 2006-07 over the previous year. The

exports, which amounted Rs. 1001.9 crores in 2007-08, increased

to Rs. 1823.4 crores in 2008-09, reflecting the highest annual rate

at 81.99 per cent in 2008-09 over the previous year. During 2010-

11, the exports came down to Rs. 1875.7 crores from 2203.6 crores

in 2009-10, resulting the negative annual growth rate at 14.88 per

cent in 2010-11 over the previous year.

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When we considered the compound growth rate of exports, it

was recorded at 196.97 per cent in 2010-11 over 2005-06.

With regard to percentage share of exports to Afghanistan in

Indo-SAARC export trade, it was observed that the percentage

share was registered at 2.57 per cent in 2005-06. The highest

percentage share was recorded at 5.56 per cent during 2008-10.

Share of India’s imports from Afghanistan in Indo-SAARC

import trade

The imports from Afghanistan, which amounted to Rs. 258.7

crores in 2005-06, came down to Rs. 156.1 crores, reflecting a

negative annual growth rate at 39.66 per cent in 2006-07 over the

previous year. The imports which amounted to Rs. 156.1 crores in

2006-07, increased tremendously to Rs. 439.8 crores, contributing

the highest annual growth rate of imports at 181.74 per cent in

2007-08 over the previous year. During 2010-11, the imports came

down to 557.6 crores from Rs. 590.4 per cent in 2009-10, reflecting

a negative annual growth rate at 5.55 per cent in 2010-11 over the

previous year (see table 4.22).

When we considered the compound growth rate of imports in

respect of Indo-Afghanistan import trade, it was observed that the

compound growth rate of imports had been registered at 115.53

per cent in 2010-11 over 2005-06.

When we considered the percentage share of imports, in

respect of Afghanistan, it was observed that the percentage share

of imports, recorded in 2009-10 was the highest with 7.53 per cent

(see table 4.22).

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With regard to balance of trade, in respect of Afghanistan, it

was observed that the balance of trade had been favourable to

India through out the study period from 2005-06 to 2010-11.

Countries wise Composition of Indo – Saarc trade:

Composition of India’s exports to Nepal (Table 4.23)

The export basket of India, in respect of Nepal composed of

the various commodities namely drugs, pharma and fine

chemicals, transport equipment, machinery and instrument coal,

manufactures of mentals, tobacco, un-manufactured, non-basmati

rice, spices, readymade garments, cotton yarn fabric made ups,

natural silk yarn fabric made ups, inorganic/organic agro

chemicals, plastic and linolean products, Glass/glass

ware/ceramics/cement/, primary/semi finished iron and steel,

paints/enamels/vanishes, paper/word products, Electronic goods,

carpets handmade, cosmetics/toilet/, non-ferrous metals, sugar,

machine tools, rubber manufactured products, iron & steel bar

rods, fresh vegetables, fresh fruits, dairy products, residual

chemicals & allied products, petroleum & crude products, man-

made stable fibre and oil meals.

Among those products mentioned above, the item of export,

which stood first in terms of export to Nepal, was transport

equipment. According to table 4.23, the exports of transport

equipment, which amounted to US $29.97 mn in 1994-95, slightly

came down to US $29.20 mn in 1999-2000, reflecting the lowest

negative compound growth rate at 2.56 in 1999-2000 over 1994-

95. But, between 2000-01 and 2004-05, there was a tremendous

growth in exports to Nepal, with the compound growth rate being

recorded at 321.74 per cent in 2004-05 over 2000-01. During

2005-06 and 2009-10 also, the exports of transport equipment to

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Nepal were high, with the compound growth rate of exports being

recorded at 177.76 per cent in 2009-10 over 2005-06.

The next item of export to Nepal, which stood second, in

terms of exports to Nepal, was primary/semi finished iron and

steel. According to table 4.23, the exports, which amounted to US

$4.40 millions in 1994-95, slightly went up to US $4.74 mn,

registering a compound growth rate at 7.72 per cent in 1998-99

over 1994-95. But, between 1999-2000 and 2004-05, the exports

to Nepal were very high with the compound growth rate registered

recorded remarkably at 1092-45 per cent in 2004-05 over 1999-

2000. During 2005-06 and 2009-10 also, exports were high with

the compound growth of exports being recorded substantially in

respect of Nepal, at 444.63 per cent in 2009-10 over 2005-06.

The next item of export, which recorded third place in the

export basket of India, in respect of Nepal was machinery and

instruments. According to table 4.23, the exports of machinery and

instruments amounted to US $ 12.16 million during 1999-2000, as

compared to US $19.02 mn 1994-95 reflecting a negative

compound growth rate at 36.07 per cent in 1999-2000 over 1994-

95.

Unlike the above trend, the exports were very high during

2000-01 and 2004-05, with the compound growth rate being

registered at 204.39 per cent in 2004-05 over 2000-01. Between

2005-06 and 2009-10 also, similar trend had been repeated with

the exports being increased tremendously from US $34.21 mn in

2005-06 to US $126.78 mn, reflecting a compound growth rate at

270.59 per cent.

The next item of export that occupies fourth place in the

export basket of India was glass/glass ware/ceramics/cement.

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According to table 4.23, the exports of this product were, worth US

$3.75 million in 1998-98, as compared to US $4.61 mn, yielding a

negative compound growth rate at 18.65 per cent in 1998-99 over

1994-95.

Unlike the trend in exports, observed in the earlier phase,

the exports to Nepal, during 1999-2000 and 2003-04, were very

high, which increased from US $6.79 mn in 1999-2000 to US

$37.68 mn in 2003-04, contributing a remarkable compound

growth rate at 454.93 per cent in 2003-04 over 1999-2000.

Between 2004-05 and 2009-10 also, the exports to Nepal were

high, with the compound growth rate being registered at 158.35

per cent 2009-10 over 2004-05.

It was noteworthy that the product namely petroleum &

crude products, which was not exported before 2003-04, emerged

as a star performer in terms exports to Nepal, occupying a

remarkable share in the export basket, at 22.68 per cent in 2003-

04, which in turn increased to 31.12 per cent in 2004-05 and

further to 44.38 per cent in 2005-06. With regard to growth rate

also, substantial increase had been noted in respect of this

product, with the compound growth rate being recorded at 132.59

per cent in 2009-10 over 2003-04.

The other products, which registered a significant share in

India’s exports basket in respect of Nepal in 2009-10, included

drugs, pharma & fine chemicals (5.48%), manufacture of metals

(2.77%), plastic & linolean products (2.76%), paper/wood products

(3.07%), and the products with insignificant share in 2009-10

included coal, (0.96%), tobacco unmanufactured (1.02%), Non-

basmathi rice ()1.14%), spices (1.65%), paints/enamels/varnishers

(0.60%), and Non-ferrous metals (0.92%).

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Composition of India’s exports to Sri Lanka-Product-wise

(Table 4.24)

It is evident from table 4.24 that the commodity, which

occupied a major share in the export basket of India, in respect of

Sri Lanka was transport equipment. It can also be observed that

the percentage share, which this product recorded at 25.02 per

cent in 1994-95, exhibited a declining trend through out the study

period with 17.87 per cent in 1998-99, with 14.63 per cent in

2002-03 and with 13.79 per cent in 2009-10.

With regard to growth rate, it was witnessed that the exports

of transport equipment, which amounted to US $84.05 mn during

1994-95, came down to US $64.50 mn in 1999-2000, reflecting a

negative compound growth rate at 23.25 per cent in 1999-2000

over 1994-95.

Between 2000-01 and 2003-04, positive compound growth

rate was registered at 87.54 per cent in 2003-04 over 2000-01, as

the exports went up to US $148.27 mn in 2003-04, from US $

79.06 mn 2000-01. During the last phase of the study period, the

compound growth rate of exports was recorded at 24.84 per cent in

2009-10 over 2004-05.

The next item of export from the export basket of India, in

respect of Sri Lanka was cotton yarn fabrics, made ups.

According to table 4.24, the exports of cotton yarn in respect

of Sri Lanka amounted to US $73.69 mn in 1999-2000 compared

to US $ 77.42 mn in 2000-01 slightly went up to 87.06 mn in

2004-05, contributing a compound growth rate at 12.45 per cent in

2004-05 over 2000-01 (see table 4.25).

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During 2005-06 and 2009-10, the exports of cotton yarn

fabrics displayed an upward trend, with the exports, worth of US

$107.47 mn in 2005-06, registered at US $ 193.33 mn in 2009-10,

reflecting a compound growth rate at 82.68 per cent in 2009-10

over 2005-06.

The next item of export, in 2009-10 over 2005-06 in the

composition of exports, in respect of Sri Lanka was drugs, pharma

and fine chemicals.

According to table 4.24, the exports of drugs. Amounted to

US $31.13 mn in 1999-2000, as compared to US $22.06 mn in

1994-95, reflecting a compound growth rate 41.11 in 1999-2000

over 1994-95. But, it was a little bit higher with 61.70 per cent, as

recorded in 2004-05 over 2000-01, where as the compound growth

rate was a little bit lower with 57.78 per cent in 2009-10 over

2005-06.

The next item of export, whose share occupies 4th place in

India’s export basket, in respect of Sri Lanka was machinery &

instruments. According to table 4.26, the exports of machinery and

instruments amounted to US $37.47 mn in 1999-2000, as

compared to US $24.82 mn in 1994-95, contributing a compound

growth rate at 50.96 per cent in 1999-2000 over 1994-95. Between

2000-01 and 2004-05, the compound growth rate was registered at

65.73 per cent in 2004-05 over 2000-01. During the last phase of

the study period, the compound growth rate of exports, in respect

of Sri Lanka, was recorded at 21.11 per cent in 2009-10 over

2005-06.

It was noteworthy that the product, namely petroleum and

crude products were not exported before 2003-04. But, it could

register a remarkable percentage share from, 33.63 per cent in

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2005-06 to 41.84 per cent in 2007-08 and stood at 26.19 per cent

in 2009-10. With regard to growth rate also, the exports being

doubled, with the compound growth rate being recorded at 102.89

per cent in 2009-10 over 2003-04.

The other commodities, which registered an insignificant

share in India’s export basket, in respect of Sri Lanka included

finished iron & steel (3.79%), manufacture of metals (2.04%),

paper/wood products, (2.95%), man-made yarn fabrics (3.63%),

plastic & linoleum products (2.34%), fresh vegetables (2.10%),

spices (2.48%) oil meals (2.05%), cosmetics (2.28%), glass (1.00%)

pulses (0.59%), RMG of cotton including accessories (0.65%),

organic/inorganic agro chemicals (1.73%), Electronic goods (1.16%)

iron & steel bar rods (0.49%), Rubber manufacture products

(0.71%), marine products (0.74%) and paints/enamels/vanishes

(0.53%) at the end of 2009-10.

Composition of India’s exports to Bangladesh-Product wise

(Table 4.25)

Composition of India’s exports to Bangladesh included the

commodities such as cotton yarn, fabrics, manufactures of metals,

man-made yarn fabrics, spices, fresh fruits electronic goods,

paper/wood products, glass/glass wares, non-Basmati rice,

transport equipment and so on.

Among those commodities, the product, which occupied

major share in India’s composition of exports to Bangladesh is

cotton yarn fabrics and made ups.

According to table 4.25, the exports of cotton yarn to

Bangladesh in 1999-2000 amounted to US $157.20mn as

compared to US $254.30mn in 1994-95, reflecting a negative

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compound growth rate of exports to Bangladesh at -38.18 per cent

in 1999-2000 over 1994-95. Between 2000-01 and 2004-05 also,

the exports of this product, worth of US $217.32mn in 2000-01

decreased to US $208.12 in 2004-05, contributing another negative

compound growth rate at 4.2 per cent in 2004-05 over 2000-01.

But, the trend between 2005-06 and 2009-10 was reversed with

the positive compound growth rate of exports, being recorded at

15.32 per cent in 2009-10 over 2005-06. (Based on CMIE – Reports

– September-2010)

The other commodity, whose share occupies second place in

India’s composition of exports of Bangladesh, was transport

equipment. According to table 4.25, the exports of transport

equipment to Bangladesh during 1999-2000 amounted to US

$40.49 as compared to US $54.15 in 1994-95, reflecting a negative

compound growth rate of exports at 25.23 per cent in 1999-2000

over 1994-95.

Between 2000-01 and 2004-05 also, similar trend in exports

had been observed in respect of this item. The exports, worth of US

$61.59 in 2000-01 decreased to US $58.71 in 2004-05, resulting

another negative compound growth rate of exports at 4.67 per cent

in 2004-05 over 2000-01.

But, between 2005-06, and 2009-10, unlike the above earlier

two trends in exports, positive higher compound growth rate of

exports was recorded in respect of Bangladesh at 204.27 per cent

in 2009-10 over 2005-06 as the exports in 2005-06, worth of US

$80.06 went up to US $243.60 in 2009-10 in respect of transport

equipment.

The next product that occupies a substantial share in India’s

composition of exports to Bangladesh was fresh vegetables.

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According to table 4.25, the percentage share of this product

in India’s composition of exports to Bangladesh was very low with

variations between 0.34 per cent and 2.36 per cent till 2003-04.

From 2003 - 04 onwards, an upward trend was noticed in respect

of export of this product to Bangladesh and this trend continued

till 2009-10, at which the higher percentage share was recorded

with 10.45 per cent, keeping the product at third place in terms of

exports after cotton yarn with percentage share at 12.11 per cent

and transport equipment with percentage share at 10.48 per cent

in 2009-10.

The exports of fresh vegetable to Bangladesh, which

amounted to US $1.96 in 1994-95, went up to US $14.25 in 1999-

2000, contributing a tremendous growth rate of exports at 627 per

cent in 1999-2000 over 1994-95.

Similar trend had also been repeated in respect of

composition of exports to Bangladesh between 2000-01 and 2004-

05. The exports of fresh vegetables to Bangladesh, worth of US

$9.74 mn in 2000-01 increased to US $68.03 mn in 2004-05,

contributing a compound growth rate of exports at 598.45 per cent

in 2004-05 over 2000-01.

Between 2005-06 and 2009-10 also, a substantial growth

rate had been observed in respect of exports to Bangladesh, with

the compound growth rate of exports having registered at 10.45 per

cent in 2009-10 over 2005-06.

The product that occupies fourth place in respect of

composition of exports to Bangladesh was oil meals (see table

4.26). It could be observed that the percentage share of oil meals

was very low with below one per cent till 1998-99. Since 1999-2000

onwards, an upward trend had been witnessed in respect of

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exports to Bangladesh and this increasing trend was continued

with 5.88 per cent in 2004-05, 6.19 per cent in 2006-07 and

ultimately reached the highest percentage share with 8.24 per cent

in 2009-10, (see table 4.25).

With regard to growth rate of exports in respect of

Bangladesh, it was observed that the exports of oil meals, which

amounted to US $0.43 mn in 1994-95, went up to US $1.79 mn in

1998-99, reflecting a substantial growth rate of exports with

316.27 in 1998-99 over 1994-95..

Between 1999-2000 and 2005-06 also, same trend in exports

had been repeated with the exports, with of US $7.08 in 1999-

2000, being increased to US $28.45 mn 2005-06, contributing a

compound growth rate at 301.34 per cent in 2005-06 over 1999-

2000.

During the last phase of the study period also, the exports of

oil meals were more than doubled with 136.15 per cent in 2009-10

over 2006-07.

The other major item of export, whose share occupies fifth

place in the composition of India’s exports to Bangladesh was

cotton raw including waste. According to table 4.25, this product

was not exported before 1997-98. The exports of cotton raw

including waste, which amounted to US $13.99 mn in 1997-98

went up to US $24.42 mn in 2003-04, reflecting a compound

growth rate 74.54 per cent in 2003-04 over 1997-98. But, in the

very next year, the exports fell to US $5.88 mn in 2004-05 from US

$24.42 mn in 2003-04, resulting in a negative annual growth rate

at 18.54 per cent in 2004-05 over the previous year. Between

2005-06 and 2009-10, the trend in exports displayed an increasing

trend.

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The other commodities, which recorded a better share, in

respect of composition of exports to Bangladesh, in 2009-10,

included drugs, pharma (3.88%), coal (2.98%), finished iron & steel

(5.38%), man-made yarn 4.49%, organic/inorganic agro chemicals

(2.21%), spices (2.06%) and other cereals (5.20%).

The commodities, which recorded insignificant share in

India’s export basket to Bangladesh included manufacture of

metals (1.26%), paper/wood products (0.80%), processed minerals

(0.74%), fresh fruits (1.69%), Dyes (0.96%), rubber manufactures

products (1.37%), marine products (0.64%), plastic (1.97%),

electronic goods (0.82%), poultry & diary products (0.76%) and

residual chemicals (0.78%).

Composition of India’s exports to Pakistan (Table 4.26)

After independence, India and Pakistan signed a stand still

agreement under which goods from one country to another were

exempted from customs duty19. Between 1965 and 1875 there was

trade embargo between the two countries. A trade protocol (Simla

Agreement) was signed for lifting trade embargo with effect from

December 7, 1974. India accorded MFN status to Pakistan in 1996

and in the same year Pakistan increased its positive list of 600

items that could be imported from India20. The present positive list

of Pakistan specifies 1075 items which are importable from India.

The rest of the items are through allowed for imports into Pakistan

from India but only against a specific import permit or license,

while then items are freely importable from rest of the world.

Despite signing of the SAFTA, exports from India to Pakistan

are governed by the positive list of imports as Pakistan’s bilateral

19

Ranjit Singh, Op.cit., p.28 20 Naizil Ali, M., Foreign Trade Pattern of Pakistan,Karachi Chamber of Commerce & Industry,

1996, p.130

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import policy for India suspends SAPTA. Currently, this issue is

being discussed at various levels of SAARC meetings. Meanwhile,

in order to enhance the economic and commercial cooperation,

secretary level talks are now being held between India and

Pakistan.

Major Commodities Traded

Country India’s export

commodities

India’s import

commodities

Pakistan

Organic chemicals,

cotton, plastics, and

articles there of, rubber

and articles there of, iron

& steel, Sugar, and sugar

confectionery, edible

vegetables, mineral fuels

etc.,

Edible vegetables, cotton,

edible fruits & nuts, organic

chemicals, sugar & sugar

confectionary, copper, and

articles there of, man-made

staple fibres, lead and

articles, there of, wool and

woven fibres etc.,

Source: DGCI & S Data, Government of India.

Composition of exports of Pakistan: - (Table 4.26)

According to table 4.28, it was observed that the commodity

namely dyes & intermediates occupies first place in the export

basket of India in respect of Pakistan.

The exports of dyes and intermediates, which amounted to

US $6.76 millions in 1994-95, went up to US $11.06 mn in 1998-

99, reflecting a compound growth rate at 63.61 per cent in 1998-99

over 1994-95.

Between 1999-2000 and 2002-2003, the exports in respect of

Pakistan were doubled, with the exports, amounted to US $18.73

mn in 2002-03 as compared to US $9.31 mn in 1999-2000,

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contributing a compound growth rate at 101.18 per cent in 2002-

03 over 1999-2000. But, the growth rate was very high between

2003-04 and 2009-10, as the exports increase substantially from

US $69.55 million in 2003-04 to US $261.64 mn in 2009-10,

yielding a compound growth rate at 276.18 per cent in 2009-10

over 2003-04.

The next item of export, which stood second in the export

basket of India, in respect of Pakistan was oil meals.

The exports of oil meals in 1998-99 amounted to US $24.48

mn as compared to US $14.11 mln in 1994-95, contributing a

compound growth rate at 73.49 per cent in 1998-99 over 1994-95.

But, the growth rate, recorded between 1999-2000 and 2003-04,

was lesser than the earlier one, as the exports which amounted to

US $19.81 mln in 1999-2000, slightly went up to US $26.26 mn in

2003-04, contributing a compound growth rate at 32.56 per cent in

2003-04 over 1999-2000. However, the growth rate, recorded

during 2004-05 and 2009-10 was much higher than the earlier

ones as the exports were doubled, with the compound growth rate

being recorded at 104.71 per cent in 2009-10 over 2004-05.

The next item of export, which stood third in the export

basket of India, in respect of Pakistan was drugs pharma and fine

chemicals. The exports of drugs amounted to US $7.68 mln in

1997-98 as compared to US $1.52 mln in 1994-95, reflecting a

substantial compound growth rate at 405.26 per cent in 1997-98

over 1994-95.

The compound growth rate of exports in respect of Pakistan,

between 1998-99 and 2003-04, was recorded at 76.29 per cent in

2003-04 over 1998-99 and it was just recorded at 29.87 per cent in

2009-10 over 2004-05.

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It was noteworthy that, the product, namely man made yarn

fabrics, made ups, which was not exported before 2003-04,

exhibited a tremendous percentage share with 14.52 per cent in

2008-09 and with 28.14 per cent in 2009-10. It is also worthy

mentioning that the annual growth rate export of this product, in

respect of Pakistan was at 121.81 per cent in 2009-10 over 2008-

09.

There was also another product, which emerged as a star

performer in terms of percentage share with 21.91 per cent in

2006-07 and with 24.73 per cent in 2007-08.

Some products, namely gems and jewellery, processed

vegetables, and cotton entered the exports front.

The products, which registered an insignificant share of

export, in respect of Pakistan in 2009-10 were, inorganic/organic

agro chemicals (2.78%), plastic (2.58%), rubber manufactured

products (2.26%), spices (1.36%), Tea (1.26%), manufacture of

metals (1.35%), machinery & instruments (1.90%), Primary/Semi

finished iron & steel (0.56%), paper/wood products (0.42%) and

fruits and vegetable seeds (0.57%).

Conclusion:

It is evident from the foregone analysis that the Saarc countries

have been able to sustain their existence as an important group in

South Asia for trade and economic cooperation. This is inspite of

intra-regional political bickering and other economic

apprehensions. Geographic, cultural, historic and commercial ties

are strong among the Saarc excepting Indo-Pak relations. All the

countries have witnessed positive trade trends. However, intra-

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229

regional trade among the Saarc countries is comparatively lower to

the intraregional trade in respect of EU, ASEAN, etc.

India has favourable balance of trade with almost all other

regional partners in the Saarc region. A large number of goods

ranging from agricultural to manufacturing sectors are traded

among these countries. There is a realization that there is a

shortfall in the quantum of intra-regional trade among the Saarc

countries and all these countries have started deliberations to step

up the trade on part with other intraregional trade as in case of

Asean, EU, etc. The recent moves by Pakistan in easing out the list

of items and extension of MFN treatment to India - all will help

pave the way for improvement in Saarc relations.

------------

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Table 4.1

SHARE OF INDIA – BANGLADESH TRADE IN INDIA’S GLOBAL TRADE VISAVIS INDO – SAARC TRADE

(Rs. in crores) Year 1995-96 1998–99 2002-03 2007-08 2010-11

Global Exports of India 1,06,353 1,39,753 2,55,137 6,55,864 11,57,475 Global Imports of India 1,22,678 1,78,332 2,97,206 10,12,312 16,05,315 India’s Exports of SAARC 5,755 7,065 13,184 38,720 57,893 India’s Imports of SAARC 858 1,959 2,478 8,501 9,195 Exports to Bangladesh 3,529 4,189 5,691 11,743 16,215 Imports to Bangladesh 287 263 300 1,035 1,878 Share of Indo-Bangladesh’s trade in India’s Global Trade

1.67 1.39 1.08 0.76 0.65

Share of Indo-Bangladesh’s export in India’s Global Exports

3.32 2.99 2.23 1.79 1.40

Share of Indo-Bangladesh’s import in India’s Global Imports

0.23 0.14 0.10 0.10 0.12

Share of Indo-Bangladesh’s in Indo-SAARC trade

57.70 49.34 38.25 27.06 26.96

Share of Indo-Bangladesh’s Exports in Indo-SAARC exports

61.32 59.29 43.16 30.32 28.01

Share of Indo-Bangladesh’s Imports in Indo-SAARC imports

33.44 13.42 12.11 12.17 20.42

Source : Direction of Trade statistics year book IMF various years and authors calculation in Journal of Applied Business & Economics

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Table 4.2 SHARE OF INDO – BANGLADESH EXPORTS IN INDO – SAARC

EXPORT TRADE

Year

India’s export to

Bangladesh (Rs. in crores)

Growth Rate (%)

India’s export to

SAARC (Rs. in crores)

Growth Rate (%)

1994 - 1995 2024

(53.05) -- 3815 --

1995 - 1996 3529

(61.32) 74.36 5755 50.85

1996 - 1997 3085

(51.07) -12.58 6041 4.97

1997 - 1998 2923

(48.82) -5.25 5987 0.89

1998 - 1999 4189

(59.29) 43.31 7065 18.00

1999 - 2000 2757

(45.62) -34.18 6043 -14.46

2000 - 2001 4272

(48.49) 54.95 8810 45.79

2001 - 2002 4780

(49.47) 11.89 9662 9.67

2002 - 2003 5691

(43.17) 19.06 13184 36.45

2003 - 2004 7999

(41.97) 40.56 19061 44.58

2004 - 2005 7329

(36.73) -8.38 19953 4.68

2005 - 2006 7369

(30.00) 0.55 24561 23.09

2006 - 2007 7366

(25.16) -0.04 29274 19.18

2007 - 2008 11743 (30.32)

59.42 38720 30.27

2008 - 2009 11319 (29.16)

-3.61 38821 0.26

2009 - 2010 11501 (29.01)

1.61 39648 2.13

2010 - 2011 16215 (28.01)

40.99 57893 46.07

Note : Figures in brackets indicate the percentage share in the overall exports to SAARC.

Source : RBL Bulletins of various years and DGCI & S

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232

Figure 4.1 (a) SHARE OF INDO – BANGLADESH EXPORTS IN INDO – SAARC

EXPORT TRADE

0

10000

20000

30000

40000

50000

60000

19

94

-95

19

95

-96

19

96

-97

19

97

-98

19

98

-99

19

99

-20

00

20

00

-01

20

01

-02

20

02

-03

20

03

-04

20

04

-05

20

05

-06

20

06

-07

20

07

-08

20

08

-09

20

09

-10

20

10

-11

Year

Export

s T

rade

Bangladesh

SAARC

Figure 4.1 (b) ANNUAL GROWTH RATE OF INDO – BANGLADESH EXPORT

TRADE AND INDO – SAARC TRADE

-40

-20

0

20

40

60

80

1995-9

6

1996-9

7

1997-9

8

1998-9

9

1999-2

000

2000-0

1

2001-0

2

2002-0

3

2003-0

4

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

2009-1

0

2010-1

1

Year

Gro

wth

rate

Export to Bangladesh

Export to SAARC

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Table 4.3 SHARE OF INDIA’S IMPORTS FROM BANGLADESH IN INDIA’S

OVERALL IMPORTS FROM SAARC

Year

India’s imports from Bangladesh

(Rs. in crores)

Growth Rate (%)

India’s imports from SAARC

(Rs. in crores)

Growth Rate (%)

1994 - 1995 120

(21.62) -- 555 --

1995 - 1996 287

(33.44) 139.16 858 54.59

1996 - 1997 221

(25.75) -22.99 858 --

1997 - 1998 189

(21.69) -14.47 871 1.51

1998 - 1999 263

(13.42) 39.15 1959 124.91

1999 - 2000 339

(19.67) 28.89 1723 -12.05

2000 - 2001 367

(17.24) 8.26 2128 23.51

2001 - 2002 282

(10.34) -23.16 2726 28.10

2002 - 2003 300

(12.10) 6.38 2478 -9.09

2003 - 2004 357

(11.61) 19.00 3073 24.01

2004 - 2005 267

(6.25) -25.21 4269 38.92

2005 - 2006 562

(8.98) 110.48 6257 46.57

2006 - 2007 1034

(15.15) 83.98 6821 9.01

2007 - 2008 1035

(12.17) 0.09 8501 24.63

2008 - 2009 1419

(17.16) 37.10 8265 -2.78

2009 - 2010 1205

(15.37) -15.08 7837 -5.17

2010 - 2011 1878

(20.42) 55.85 9195 17.32

Note : Figures in brackets indicate the percentage share in the overall exports to SAARC.

Source: RBL Bulletins of various years and DGCI & S.

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Figure 4.2 (a) SHARE OF INDIA’S IMPORTS FROM BANGLADESH IN INDIA’S

OVERALL IMPORTS FROM SAARC

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Year

1994-9

5

1995-9

6

1996-9

7

1997-9

8

1998-9

9

1999-2

000

2000-0

1

2001-0

2

2002-0

3

2003-0

4

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

2009-1

0

2010-1

1

Year

Imp

ort

s T

rad

eIndia's imports to Bangladesh

India's imports from SAARC

Figure 4.2 (b) SHARE OF INDIA’S IMPORTS FROM BANGLADESH IN INDIA’S

OVERALL IMPORTS FROM SAARC

-40

-20

0

20

40

60

80

100

120

140

160

1995-9

6

1996-9

7

1997-9

8

1998-9

9

1999-2

000

2000-0

1

2001-0

2

2002-0

3

2003-0

4

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

2009-1

0

2010-1

1

Year

Imp

ort

s T

rad

e

India's imports to Bangladesh

India's imports from SAARC

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Table 4.4 INDIA’S TRADE WITH BANGLADESH – EXPORTS, IMPORTS

AND TRADE BALANCE (Rs. in crores)

Year Exports to Bangladesh

Growth Rate

Imports from

Bangladesh

Growth Rate

Balance of Trade

1994 - 1995 2024 -- 120 -- 1904 1995 – 1996 3529 74.36 287 139.16 3242 1996 – 1997 3085 -12.58 221 -22.99 2864 1997 - 1998 2923 -5.25 189 -14.47 2734 1998 - 1999 4189 43.31 263 39.15 3926 1999 - 2000 2757 -34.18 339 28.89 2418 2000 - 2001 4272 54.95 367 8.26 3905 2001 - 2002 4780 11.89 282 -23.16 4498 2002 - 2003 5691 19.06 300 6.38 5391 2003 - 2004 7999 40.56 357 19.00 7642 2004 - 2005 7329 -8.38 267 -25.21 7062 2005 - 2006 7369 0.55 562 110.48 6807 2006 - 2007 7366 -0.04 1034 83.98 6332 2007 - 2008 11743 59.42 1035 0.09 10708 2008 - 2009 11319 -3.61 1419 37.10 9900 2009 - 2010 11501 1.61 1205 -15.08 10296 2010 - 2011 16215 40.99 1878 55.85 14337

Source: RBL Bulletins of various years.

Figure 4.3 INDIA’S TRADE WITH BANGLADESH – EXPORTS, IMPORTS

AND TRADE BALANCE

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

19

94

-95

19

95

-96

19

96

-97

19

97

-98

19

98

-99

19

99

-20

00

20

00

-01

20

01

-02

20

02

-03

20

03

-04

20

04

-05

20

05

-06

20

06

-07

20

07

-08

20

08

-09

20

09

-10

20

10

-11

Year

Ind

ia's

tra

de

wit

h B

an

gla

de

sh

Exports to Bangladesh

Imports from Bangladesh

Balance of Trade

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Table 4.5 GROWTH OF INDIA’S TRADE WITH BANGLADESH IN SAARC &

IN GLOBAL PERSPECTIVE’S (Rs. in crores)

Year India’s

trade with Bangladesh

Growth Rate

India’s trade with

SAARC

Growth Rate

India’s trade with

World

Growth Rate

1994-1995 2144 -- 4370 -- 1,72,645 --

1995-1996 3816 77.99 6613 51.32 2,29,031 32.66

1996-1997 3306 -13.36 6899 4.32 2,57,736 12.53

1997-1998 3112 -5.87 6858 -0.59 2,84,277 10.29

1998-1999 4452 43.06 9024 31.58 3,18,085 11.89

1999-2000 3096 -30.46 7766 -13.94 3,74,797 17.83

2000-2001 4639 49.83 10938 40.84 4,34,444 15.91

2001-2002 5062 9.11 12388 13.26 4,54,217 4.55

2002-2003 5991 18.35 15662 26.43 5,52,343 21.60

2003-2004 8356 39.47 22134 41.32 6,52,473 18.12

2004-2005 7596 -9.09 24222 9.43 8,76,403 34.32

2005-2006 7931 4.41 30818 27.23 11,16,827 27.43

2006-2007 8400 5.91 36095 17.12 14,12,285 26.45

2007-2008 12778 52.11 47221 30.82 16,68,174 18.11

2008-2009 12738 -0.31 47086 -0.28 22,15,191 32.79

2009-2010 12706 -0.25 47485 0.84 22,09,270 -0.26

2010-2011 18093 42.39 67088 41.28 27,62,790 25.05

Source : Direction of trade statistics of IMF.

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Table 4.6 SHARE OF INDIA’S EXPORTS TO SRI LANKA IN INDO – SAARC

EXPORT TRADE

Year

India’s exports to

with Sri Lanka

(Rs. in crores)

Growth Rate (%)

Indo - SAARC Exports

(Rs. in crores)

Growth Rate (%)

1994 - 1995 1151.1 (30.17)

-- 3815 --

1995 - 1996 1343.8 (23.35)

16.74 5755 50.85

1996 - 1997 1694.8 (28.05)

26.12 6041 4.97

1997 - 1998 1818.2 (30.37)

7.28 5987 -0.89

1998 - 1999 1839.0 (26.03)

1.14 7065 18.00

1999 - 2000 2163.5 (35.80)

17.65 6043 -14.46

2000 - 2001 2924.5 (33.19)

35.17 8810 45.79

2001 - 2002 3008.9 (31.14)

2.89 9662 9.67

2002 - 2003 4457.1 (33.81)

48.13 13184 36.45

2003 - 2004 6061.9 (31.80)

36.00 19061 44.58

2004 - 2005 6349.6 (31.82)

4.75 19953 4.68

2005 - 2006 8963.9 (36.49)

41.17 24561 23.09

2006 - 2007 10206.4 (34.87)

13.86 29274 19.18

2007 - 2008 11374.3 (29.38)

11.44 38720 30.27

2008 - 2009 10893.5 (28.06)

-4.22 38821 0.26

2009 - 2010 10289.6 (25.95)

-5.44 39648 2.13

2010 - 2011 18373.1 (31.74)

78.55 57893 46.07

Note : Figures in brackets indicate the percentage share in the overall exports to SAARC.

Source: RBI Bulletins of various years and DGCI & S.

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238

Figure 4.6 (a) SHARE OF INDIA’S EXPORTS TO SRI LANKA IN INDO – SAARC

EXPORT TRADE

0

10000

20000

30000

40000

50000

60000

70000

1994-9

5

1995-9

6

1996-9

7

1997-9

8

1998-9

9

1999-2

000

2000-0

1

2001-0

2

2002-0

3

2003-0

4

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

2009-1

0

2010-1

1

Year

Exp

ort

s T

rad

e

INDO - Srilanka Exports Trade

INDO - SAARC Export Trade

Figure 4.6 (b) ANNUAL GROWTH RATES OF INDO – SRILANKA EXPORT

TRADE & INDO – SAARC EXPORTS

-20

0

20

40

60

80

100

0 2 4 6 8

10

12

14

16

18

Year

Exp

ort

s T

rad

e

Exports to Srilanka

Exports to SAARC

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Table 4.7 SHARE OF INDIA’S IMPORTS FROM SRILANKA IN INDO –

SAARC IMPORT TRADE (Rs. in crores)

Year Indian

Imports from Srilanka

Growth Rate (%)

Indo - SAARC imports

Growth Rate (%)

1994 - 1995 96.5

(17.38) -- 555

1995 - 1996 138.6 (16.15)

43.63 858 54.59

1996 - 1997 160.3 (18.68)

15.66 858

1997 - 1998 112.3 (12.89)

-29.94 871 1.51

1998 - 1999 158.5 (8.09)

41.14 1959 124.91

1999 - 2000 191.7 (11.12)

20.95 1723 -12.05

2000 - 2001 205.6 (9.66)

7.25 2128 23.51

2001 - 2002 321.3 (11.78)

56.27 2726 28.10

2002 - 2003 439.6 (17.74)

36.82 2478 -9.09

2003 - 2004 894.9 (29.12)

103.57 3073 24.01

2004 - 2005 1700.2 (39.82)

89.99 4269 38.92

2005 - 2006 2557.7 (40.87)

50.43 6257 46.57

2006 - 2007 2129.6 (31.22)

-16.74 6821 9.01

2007 - 2008 2540.9 (29.88)

19.39 8501 24.63

2008 - 2009 1623.7 (19.64)

-36.09 8265 -2.78

2009 - 2010 1850.0 (23.60)

13.94 7837 -5.17

2010 - 2011 2009.2 (21.85)

8.60 9195 17.32

Note : Figures in brackets indicate the percentage share in the overall exports to SAARC.

Source: RBI Bulletins of various years and DGCI & S.

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240

Figure 4.7 (a) SHARE OF INDIA’S IMPORTS TO SRI LANKA IN INDO – SAARC

IMPORTS TRADE

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

1994-9

5

1995-9

6

1996-9

7

1997-9

8

1998-9

9

1999-2

000

2000-0

1

2001-0

2

2002-0

3

2003-0

4

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

2009-1

0

2010-1

1

Year

Imp

ort

s T

rad

e

INDO - Srilanka imports

INDO - SAARC imports

Figure 4.7 (b) ANNUAL GROWTH RATES OF INDO – SRILANKA IMPORT

TRADE & INDO – SAARC IMPORTS

-40

-20

0

20

40

60

80

100

120

140

0 2 4 6 8

10

12

14

16

18

Year

Imp

ort

s T

rad

e (

Gro

wth

rate

)

Imports from Srilanka

Imports from SAARC

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Table 4.8 INDIA’S TRADE WITH SRILANKA – EXPORTS, IMPORTS AND

TRADE BALANCE (Rs. in crores)

Year Exports to Srilanka

Growth Rate(%)

Imports to Srilanka

Growth Rate(%)

Balance of Trade

1994 - 1995 1151.1 -- 96.5 -- 1054.6 1995 - 1996 1343.8 16.74 138.6 43.63 1205.2 1996 - 1997 1694.8 26.12 160.3 15.66 1534.5 1997 - 1998 1818.2 7.28 112.3 -29.94 1705.9 1998 - 1999 1839.0 1.14 158.5 41.14 1680.5 1999 - 2000 2163.5 17.65 191.7 20.95 1971.8 2000 - 2001 2924.5 35.17 205.6 7.25 2718.9 2001 - 2002 3008.9 2.89 321.3 56.27 2687.6 2002 - 2003 4457.1 48.13 439.6 36.82 4017.5 2003 - 2004 6061.9 36.00 894.9 103.57 5167.0 2004 - 2005 6349.6 4.75 1700.2 89.99 4649.4 2005 - 2006 8963.9 41.17 2557.7 50.43 6406.2 2006 - 2007 10206.4 13.86 2129.6 -16.74 8076.8 2007 - 2008 11374.3 11.44 2540.9 19.39 8833.4 2008 - 2009 10893.5 -4.22 1623.7 -36.09 9269.8 2009 - 2010 10289.6 -5.44 1850.0 13.94 8439.6 2010 - 2011 18373.1 78.55 2009.2 8.60 16363.9

Source: RBI Bulletins of various years and DGCI & S.

Figure 4.8

SHARE OF INDIA’S EXPORTS, IMPORTS & BALANCE OF TRADE TO SRI LANKA

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

1994-9

5

1995-9

6

1996-9

7

1997-9

8

1998-9

9

1999-2

000

2000-0

1

2001-0

2

2002-0

3

2003-0

4

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

2009-1

0

2010-1

1

Year

Exp

ort

s,

Imp

ort

s &

Bala

nce T

rad

e Exports to Srilanka

Imports from Srilanka

Balance of Trade

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Table 4.9 SHARE OF INDIA’S EXPORTS TO NEPAL IN INDO – SAARC

EXPORTS TRADE – EXPORTS (Rs. in crores)

Year India’s exports

to Nepal

Growth

Rate(%)

Indo - SAARC

exports

Growth

Rate(%)

1994 - 1995 377.0 (9.88)

3815

1995 - 1996 535.4 (9.30)

42.01 5755 50.85

1996 - 1997 588.3 (9.73)

9.88 6041 4.97

1997 - 1998 631.5 (10.55)

7.34 5987 -0.89

1998 - 1999 515.0 (7.29)

-18.45 7065 18.00

1999 - 2000 655.8 (10.84)

27.24 6043 -14.46

2000 - 2001 643.4 (7.30)

-1.82 8810 45.79

2001 - 2002 1022.8 (10.59)

58.96 9662 9.67

2002 - 2003 1695.6 (12.86)

65.78 13184 36.45

2003 - 2004 3075.8 (16.14)

81.39 19061 44.58

2004 - 2005 3339.0 (16.73)

8.56 19953 4.68

2005 - 2006 3807.4 (15.50)

14.03 24561 23.09

2006 - 2007 4201.4 (14.35)

10.35 29274 19.18

2007 - 2008 6063.5 (15.66)

44.32 38720 30.27

2008 - 2009 7153.6 (18.43)

17.98 38821 0.26

2009 - 2010 7251.3 (18.29)

1.37 39648 2.13

2010 - 2011 9715.3 (16.78)

33.98 57893 46.07

Note : Figures in brackets indicate the percentage share in the overall exports to SAARC.

Source : RBI Bulletins of various years and DGCI & S.

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243

Figure 4.9 (a) SHARE OF INDIA’S EXPORTS TO NEPAL IN INDO – SAARC

EXPORT TRADE

0

10000

20000

30000

40000

50000

60000

70000

1994-9

5

1995-9

6

1996-9

7

1997-9

8

1998-9

9

1999-2

000

2000-0

1

2001-0

2

2002-0

3

2003-0

4

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

2009-1

0

2010-1

1

Year

Exp

ort

s T

rad

e

Exports to Nepal

Exports to SAARC

Figure 4.9 (b) ANNUAL GROWTH RATES OF INDO – NEPAL EXPORTS TRADE

& INDO – SAARC EXPORTS

-40

-20

0

20

40

60

80

100

0 2 4 6 8

10

12

14

16

18

Year

Exp

ort

s T

rad

e (

Gro

wth

rate

)

Exports to nepal

Exports to SAARC

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Table 4.10 SHARE OF INDIA’S IMPORTS FROM NEPAL IN INDO – SAARC

IMPORT TRADE

(Rs. in crores)

Year India’s imports

from Nepal Growth Rate (%)

Indo - SAARC import Trade

Growth Rate (%)

1994 - 1995 114.9 (20.70)

- 555 -

1995 - 1996 164.4 (19.16)

43.08 858 54.59

1996 - 1997 227.5 (26.51)

38.38 858

1997 - 1998 353.6 (40.59)

55.42 871 1.51

1998 - 1999 609.4 (31.10)

72.34 1959 124.91

1999 - 2000 817.4 (47.44)

34.13 1723 -12.05

2000 - 2001 1165.3 (54.76)

42.56 2128 23.51

2001 - 2002 1697.6 (62.27)

45.68 2726 28.10

2002 - 2003 1363.6 (55.02)

-19.67 2478 -9.09

2003 - 2004 1314.4 (42.77)

-3.61 3073 24.01

2004 - 2005 1553.9 (36.39)

13.96 4269 38.92

2005 - 2006 1681.7 (26.87)

8.22 6257 46.57

2006 - 2007 1384.5 (20.29)

-17.67 6821 9.01

2007 - 2008 2527.3 (29.72)

82.54 8501 24.63

2008 - 2009 2255.7 (27.29)

-10.74 8265 -2.78

2009 - 2010 2146.5 (27.38)

-4.84 7837 -5.17

2010 - 2011 2169.8 (23.59)

1.09 9195 17.32

Note : Figures in brackets indicate the percentage share in the overall exports to SAARC.

Source: RBI Bulletins of various years and DGCI & S.

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245

Figure 4.10 (a) SHARE OF INDIA’S IMPORTS TO NEPAL IN INDO – SAARC

IMPORTS TRADE

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

1994-9

5

1995-9

6

1996-9

7

1997-9

8

1998-9

9

1999-2

000

2000-0

1

2001-0

2

2002-0

3

2003-0

4

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

2009-1

0

2010-1

1

Year

Imp

ort

s T

rad

e

Imports from Nepal

Imports from SAARC

Figure 4.10 (b) ANNUAL GROWTH RATES OF INDO – NEPAL IMPORTS TRADE

& INDO – SAARC IMPORTS

-40

-20

0

20

40

60

80

100

120

140

0 2 4 6 8

10

12

14

16

18

Year

Imp

ort

s T

rad

e (

Gro

wth

rate

)

Imports from Nepal

Imports from SAARC

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Table 4.11 INDIA’S TRADE WITH NEPAL – EXPORTS, IMPORTS AND

TRADE BALANCE (Rs. in crores)

Year Exports to

Nepal Growth Rate(%)

Imports from Nepal

Growth Rate(%)

Balance of Trade

1994 - 1995 377.0 -- 114.9 -- 262.1 1995 - 1996 535.4 42.01 164.4 43.08 371.0 1996 - 1997 588.3 9.88 227.5 38.38 360.8 1997 - 1998 631.5 7.34 353.6 55.42 277.9 1998 - 1999 515.0 -18.45 609.4 72.34 -94.4 1999 - 2000 655.8 27.24 817.4 34.13 -161.6 2000 - 2001 643.4 -1.82 1165.3 42.56 -521.9 2001 - 2002 1022.8 58.96 1697.6 45.68 -674.8 2002 - 2003 1695.6 65.78 1363.6 -19.67 332.0 2003 - 2004 3075.8 81.39 1314.4 -3.61 1761.4 2004 - 2005 3339.0 8.56 1553.9 13.96 1785.1 2005 - 2006 3807.4 14.03 1681.7 8.22 2125.7 2006 - 2007 4201.4 10.35 1384.5 -17.67 2816.9 2007 - 2008 6063.5 44.32 2527.3 82.54 3536.2 2008 - 2009 7153.6 17.98 2255.7 -10.74 4897.8 2009 - 2010 7251.3 1.37 2146.5 -4.84 5104.8 2010 - 2011 9715.3 33.98 2169.8 1.09 7545.5

Source : RBI Bulletins of various years and DGCI & S.

Figure 4.11 (a) SHARE OF INDIA’S EXPORTS TO NEPAL IN INDO – SAARC

EXPORT TRADE

-2000

0

2000

4000

6000

8000

10000

12000

1994-9

5

1995-9

6

1996-9

7

1997-9

8

1998-9

9

1999-2

000

2000-0

1

2001-0

2

2002-0

3

2003-0

4

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

2009-1

0

2010-1

1

Year

Exp

ort

s,

Imp

ort

s &

Bala

nce T

rad

e

Exports to Nepal

Imports from Nepal

Balance of Trade

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247

Table 4.12 SHARE OF INDIA’S EXPORTS TO BHUTAN IN INDO – SAARC

EXPORT TRADE (Rs. in crores)

Year India’s

exports to Bhutan

Growth Rate(%)

India’s total to SAARC

Growth Rate(%)

1994 - 1995 34.80 (0.91)

-- 3815 --

1995 - 1996 57.50 (0.99)

-65.22 5755 50.85

1996 - 1997 78.00 (1.29)

-35.65 6041 4.97

1997 - 1998 49.50 (0.83)

-36.53 5987 0.89

1998 - 1999 40.20 (0.57)

-18.78 7065 18.00

1999 - 2000 32.80 (0.54)

-18.40 6043 -14.46

2000 - 2001 4.90 (0.06)

-85.06 8810 45.79

2001 - 2002 36.20 (0.37)

638.77 9662 9.67

2002 - 2003 189.00 (1.43)

422.09 13184 36.45

2003 - 2004 411.20 (2.16)

117.56 19061 44.58

2004 - 2005 380.00 (1.90)

-0.08 19953 4.68

2005 - 2006 439.10 (1.79)

15.55 24561 23.09

2006 - 2007 260.20 (0.89)

-40.74 29274 19.18

2007 - 2008 348.90 (0.90)

34.80 38720 30.27

2008 - 2009 508.80 (1.31)

45.82 38821 0.26

2009 - 2010 560.90 (1.41)

10.24 39648 2.13

2010 - 2011 714.30 (1.23)

27.34 57893 46.07

Note : Figures in brackets indicate the percentage share in the overall exports to SAARC.

Source: RBI Bulletins of various years and DGCI & S.

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248

Figure 4.12 (a) SHARE OF INDIA’S EXPORTS TO BHUTAN IN INDO – SAARC

EXPORT TRADE

0

10000

20000

30000

40000

50000

60000

70000

1994-9

5

1995-9

6

1996-9

7

1997-9

8

1998-9

9

1999-2

000

2000-0

1

2001-0

2

2002-0

3

2003-0

4

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

2009-1

0

2010-1

1

Year

Exp

ort

s T

rad

e

Exports to Bhutan

India’s total exports to SAARC

Figure 4.12 (b) ANNUAL GROWTH RATES OF INDO – BHUTAN EXPORT

TRADE & INDO – SAARC EXPORTS

-200

-100

0

100

200

300

400

500

600

700

0 2 4 6 8

10

12

14

16

18

Year

Exp

ort

s T

rad

e (

Gro

wth

rate

)

Exports to Bhutan

India's total exports to SAARC

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249

Table 4.13 SHARE OF INDIA’S IMPORTS FROM BHUTAN IN INDO – SAARC

IMPORT TRADE (Rs. in crores)

Year

India’s imports

from Bhutan

Growth Rate(%)

India’s total imports from

SAARC

Growth Rate(%)

1994 - 1995 57.4

(10.34) -- 555 --

1995 - 1996 116.2 (13.54)

102.43 858 54.59

1996 - 1997 119.9 (13.97)

3.18 858 --

1997 - 1998 50.0 (5.74)

-58.29 871 1.51

1998 - 1999 25.8 (1.32)

-48.40 1959 124.91

1999 - 2000 78.1 (4.53)

202.71 1723 -12.05

2000 - 2001 96.4 (4.53)

23.43 2128 23.51

2001 - 2002 114.1 (4.19)

18.36 2726 28.10

2002 - 2003 155.6 (6.28)

36.37 2478 -9.09

2003 - 2004 240.7 (7.83)

54.69 3073 24.01

2004 - 2005 319.0 (7.47)

32.53 4269 38.92

2005 - 2006 393.0 (6.28)

23.19 6257 46.57

2006 - 2007 640.0 (9.38)

62.84 6821 9.01

2007 - 2008 782.6 (9.21)

22.28 8501 24.63

2008 - 2009 687.9 (8.32)

-12.01 8265 -2.78

2009 - 2010 723.0 (9.23)

5.10 7837 -5.17

2010 - 2011 917.3 (9.97)

26.87 9195 17.32

Note : Figures in brackets indicate the percentage share in the overall exports to SAARC.

Source: RBI Bulletins of various years and DGCI & S.

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250

Figure 4.13 (a) SHARE OF INDIA’S IMPORTS FROM BHUTAN IN INDO – SAARC

IMPORT TRADE

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

1994-9

5

1995-9

6

1996-9

7

1997-9

8

1998-9

9

1999-2

000

2000-0

1

2001-0

2

2002-0

3

2003-0

4

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

2009-1

0

2010-1

1

Year

Imp

ort

s T

rad

e

Imports from Bhutan

India's total imports from SAARC

Figure 4.13 (b) ANNUAL GROWTH RATES OF INDO – BHUTAN IMPORT TRADE

& INDO – SAARC IMPORTS

-100

-50

0

50

100

150

200

250

0 2 4 6 8

10

12

14

16

18

Year

Imp

ort

s T

rad

e (

Gro

wth

rate

)

Imports From Bhutan

India's total imports from SAARC

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251

Table 4.14 INDIA’S TRADE BALANCE WITH BHUTAN

(Rs. in crores)

Year Exports to

Bhutan Growth Rate(%)

Imports FROM Bhutan

Growth Rate(%)

Balance of Trade

1994 - 1995 34.80 -- 57.4 -- -22.6 1995 - 1996 57.50 -65.22 116.2 102.43 -58.7 1996 - 1997 78.00 -35.65 119.9 3.18 -41.9 1997 - 1998 49.50 -36.53 50.0 -58.29 -0.5 1998 - 1999 40.20 -18.78 25.8 -48.40 14.4 1999 - 2000 32.80 -18.40 78.1 202.71 -45.3 2000 - 2001 4.90 -85.06 96.4 23.43 -91.5 2001 - 2002 36.20 638.77 114.1 18.36 -77.9 2002 - 2003 189.00 422.09 155.6 36.37 33.4 2003 - 2004 411.20 117.56 240.7 54.69 170.5 2004 - 2005 380.00 -0.08 319.0 32.53 61.0 2005 - 2006 439.10 15.55 393.0 23.19 46.1 2006 - 2007 260.20 -40.74 640.0 62.84 -379.8 2007 - 2008 348.90 34.80 782.6 22.28 -433.7 2008 - 2009 508.80 45.82 687.9 -12.01 -179.1 2009 - 2010 560.90 10.24 723.0 5.10 -162.1 2010 - 2011 714.30 27.34 917.3 26.87 -20.3

Source : RBI Bulletins of various years and DGCI & S.

Figure 4.14 SHARE OF INDIA’S EXPORTS, IMPORTS & TRADE BALANCE IN

INDO – SAARC TRADE

-600

-400

-200

0

200

400

600

800

1000

1994-9

5

1995-9

6

1996-9

7

1997-9

8

1998-9

9

1999-2

000

2000-0

1

2001-0

2

2002-0

3

2003-0

4

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

2009-1

0

2010-1

1

Year

Exp

ort

s,

Imp

ort

s &

Bala

nce T

rad

e

Exports to Bhutan

Imports from Bhutal

Balance of Trade

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252

Table 4.15 SHARE OF INDIA’S EXPORTS TO PAKISTAN IN INDO – SAARC

EXPORT TRADE (Rs. in crores)

Year India’s

export to Pakistan

Growth Rate(%)

Indo - SAARC export Trade

Growth Rate(%)

1994 - 1995 179.7 (4.71)

-- 3815 --

1995 - 1996 257.0 (4.46)

43.02 5755 50.85

1996 - 1997 558.1 (9.24)

117.16 6041 4.97

1997 - 1998 532.0 (8.89)

-4.67 5987 -0.89

1998 - 1999 446.4 (6.32)

-16.09 7065 18.00

1999 - 2000 402.8 (6.67)

-9.76 6043 -14.46

2000 - 2001 853.5 (9.69)

111.89 8810 45.79

2001 - 2002 686.8 (7.11)

-19.53 9662 9.67

2002 - 2003 997.7 (7.57)

45.26 13184 36.45

2003 - 2004 1318.5 (6.92)

32.15 19061 44.58

2004 - 2005 2341.2 (11.73)

77.57 19953 4.68

2005 - 2006 3051.5 (12.42)

30.34 24561 23.09

2006 - 2007 61.06.9 (20.86)

100.13 29274 19.18

2007 - 2008 7827.4 (20.22)

28.17 38720 30.27

2008 - 2009 6532.5 (16.83)

-16.54 38821 0.26

2009 - 2010 7461.0 (18.82)

14.24 39648 2.13

2010 - 2011 10516.6 (18.17)

40.95 57893 46.07

Note : Figures in brackets indicate the percentage share in the overall exports to SAARC.

Source: RBI Bulletins of various years and DGCI & S.

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253

Figure 4.15 (a) SHARE OF INDIA’S EXPORTS TO PAKISTAN IN INDO – SAARC

EXPORT TRADE

0

10000

20000

30000

40000

50000

60000

70000

1994-9

5

1995-9

6

1996-9

7

1997-9

8

1998-9

9

1999-2

000

2000-0

1

2001-0

2

2002-0

3

2003-0

4

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

2009-1

0

2010-1

1

Year

Exp

ort

s T

rad

e

Exports to Pakistan

Exports to SAARC

Figure 4.15 (b) ANNUAL GROWTH RATES OF INDO – PAKISTAN EXPORT

TRADE & INDO – SAARC EXPORTS

-40

-20

0

20

40

60

80

100

120

140

0 2 4 6 8

10

12

14

16

18

Year

Exp

ort

s T

rad

e (

Gro

wth

rate

)

Exports to Pakistan

Exports to SAARC

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254

Table 4.16 SHARE OF INDIA’S IMPORTS FROM PAKISTAN IN INDO –

SAARC IMPORT TRADE (Rs. in crores)

Year India’s

import from Pakistan

Growth Rate (%)

Indo - SAARC import Trade

Growth Rate (%)

1994 - 1995 165.6 (29.84)

-- 555 --

1995 - 1996 150.9 (17.59)

-8.87 858 54.59

1996 - 1997 128.4 (14.97)

-14.91 858 --

1997 - 1998 165.2 (18.97)

28.66 871 1.51

1998 - 1999 909.2 (46.41)

450.36 1959 124.91

1999 - 2000 295.6 (17.16)

-67.48 1723 -12.05

2000 - 2001 292.5 (13.73)

-1.04 2128 23.51

2001 - 2002 308.8 (11.33)

5.57 2726 28.10

2002 - 2003 217.1 (8.94)

-29.69 2478 -9.09

2003 - 2004 264.9 (8.62)

22.01 3073 24.01

2004 - 2005 426.7 (9.99)

61.07 4269 38.92

2005 - 2006 795.0 (12.71)

86.31 6257 46.57

2006 - 2007 1462.7 (21.44)

83.98 6821 9.01

2007 - 2008 1158.7 (13.63)

-20.78 8501 24.63

2008 - 2009 1668.4 (20.18)

43.98 8265 -2.78

2009 - 2010 1304.6 (16.65)

-21.81 7837 -5.17

2010 - 2011 1518.8 (16.51)

16.41 9195 17.32

Note : Figures in brackets indicate the percentage share in the overall exports to SAARC.

Source: RBI Bulletins of various years and DGCI & S.

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255

Figure 4.16 (a) SHARE OF INDIA’S IMPORTS FROM PAKISTAN IN INDO –

SAARC IMPORT TRADE

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

1994-9

5

1995-9

6

1996-9

7

1997-9

8

1998-9

9

1999-2

000

2000-0

1

2001-0

2

2002-0

3

2003-0

4

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

2009-1

0

2010-1

1

Year

Imp

ort

Tra

de

Imports from Pakistan

Imports from SAARC

Figure 4.16 (b) ANNUAL GROWTH RATES OF INDO – PAKISTAN IMPORTS

TRADE & INDO – SAARC IMPORTS

-200

-100

0

100

200

300

400

500

0 2 4 6 8

10

12

14

16

18

Year

Imp

ort

Tra

de (

Gro

wth

rate

)

Imports from Pakistan

Imports from SAARC

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256

Table 4.17 INDIA’S TRADE WITH PAKISTAN – EXPORTS, IMPORTS AND

TRADE BALANCE (Rs. in crores)

Year Exports to Pakistan

Growth Rate(%)

Imports from

Pakistan

Growth Rate(%)

Balance of Trade

1994 - 1995 179.7 -- 165.6 -- 14.1 1995 - 1996 257.0 43.02 150.9 -8.87 106.1 1996 - 1997 558.1 117.16 128.4 -14.91 429.7 1997 - 1998 532.0 -4.67 165.2 28.66 366.8 1998 - 1999 446.4 -16.09 909.2 450.36 -462.8 1999 - 2000 402.8 -9.76 295.6 -67.48 107.2 2000 - 2001 853.5 111.89 292.5 -1.04 561.0 2001 - 2002 686.8 -19.53 308.8 5.57 378.0 2002 - 2003 997.7 45.26 217.1 -29.69 780.6 2003 - 2004 1318.5 32.15 264.9 22.01 1053.6 2004 - 2005 2341.2 77.57 426.7 61.07 1914.5 2005 - 2006 3051.5 30.34 795.0 86.31 2256.5 2006 - 2007 61.06.9 100.13 1462.7 83.98 4644.2 2007 - 2008 7827.4 28.17 1158.7 -20.78 6668.7 2008 - 2009 6532.5 -16.54 1668.4 43.98 4864.1 2009 - 2010 7461.0 14.24 1304.6 -21.81 6156.4 2010 - 2011 10516.6 40.95 1518.8 16.41 8997.8

Source: RBI Bulletins of various years. Figure 4.17

INDIA’S TRADE WITH PAKISTAN – EXPORTS, IMPORTS AND TRADE BALANCE

-2000

0

2000

4000

6000

8000

10000

12000

19

94

-95

19

95

-96

19

96

-97

19

97

-98

19

98

-99

19

99

-20

00

20

00

-01

20

01

-02

20

02

-03

20

03

-04

20

04

-05

20

05

-06

20

06

-07

20

07

-08

20

08

-09

20

09

-10

20

10

-11

Year

Ex

po

rts

, Im

po

rts

& B

ala

nc

e T

rad

e

Exorts to Pakistan

Imports from Pakistan

Balance of Trade

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257

Table 4.18

SHARE OF INDIA’S EXPORTS TO MALDIVES IN INDO – SAARC EXPORTS TRADE

(Rs. in crores)

Year India’s

exports to Maldives

Growth Rate(%)

Indo - SAARC exports Trade

Growth Rate(%)

1994 - 1995 48.30 (1.27)

3815

1995 - 1996 52.50 (0.91)

8.69 5755 50.85

1996 - 1997 36.80 (0.61)

-29.90 6041 4.97

1997 - 1998 32.50 (0.54)

-11.68 5987 -0.89

1998 - 1999 35.30 (0.50)

8.61 7065 18.00

1999 - 2000 31.60 (0.52)

-10.48 6043 -14.46

2000 - 2001 112.40 (1.28)

255.69 8810 45.79

2001 - 2002 128.20 (1.33)

14.05 9662 9.67

2002 - 2003 152.90 (1.16)

19.26 13184 36.45

2003 - 2004 194.60 (1.02)

27.27 19061 44.58

2004 - 2005 213.90 (1.07)

9.91 19953 4.68

2005 - 2006 299.20 (1.22)

39.88 24561 23.09

2006 - 2007 311.00 (1.06)

3.94 29274 19.18

2007 - 2008 360.60 (0.93)

15.95 38720 30.27

2008 - 2009 590.30 (1.52)

63.69 38821 0.26

2009 - 2010 378.50 (0.95)

-35.88 39648 2.13

2010 - 2011 484.00 (0.84)

27.87 57893 46.07

Note : Figures in brackets indicate the percentage share in the overall exports to SAARC.

Source: RBI Bulletins of various years and DGCI & S.

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258

Figure 4.18 (a) SHARE OF INDIA’S EXPORTS TO MALDIVES IN INDO – SAARC

EXPORT TRADE

0

10000

20000

30000

40000

50000

60000

70000

1994-9

5

1995-9

6

1996-9

7

1997-9

8

1998-9

9

1999-2

000

2000-0

1

2001-0

2

2002-0

3

2003-0

4

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

2009-1

0

2010-1

1

Year

Exp

ort

s T

rad

e

Exports to Maldives

Exports to SAARC

Figure 4.18 (b) ANNUAL GROWTH RATES OF INDO – MALDIVES EXPORT

TRADE & INDO – SAARC EXPORTS

-100

-50

0

50

100

150

200

250

300

0 2 4 6 8

10

12

14

16

18

Year

Exp

ort

s T

rad

e (

Gro

wth

rate

)

Exports to Maldives

Exports to SAARC

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259

Table 4.19 SHARE OF INDIA’S IMPORTS FROM MALDIVES IN INDO –

SAARC IMPORT TRADE (Rs. in crores)

Year India’s

imports from Maldives

Growth Rate(%)

Indo - SAARC imports Trade

Growth Rate(%)

1994 - 1995 0.7

(0.13) -- 555 --

1995 - 1996 0.6

(0.07) -14.28 858 54.59

1996 - 1997 0.6

(0.07) -- 858 --

1997 - 1998 0.9

(0.10) 50.00 871 1.51

1998 - 1999 0.2

(0.01) -77.70 1959 124.91

1999 - 2000 1.7

(0.09) 750.00 1723 -12.05

2000 - 2001 0.9

(0.04) -47.05 2128 23.51

2001 - 2002 1.9

(0.07) 111.11 2726 28.10

2002 - 2003 1.6

(0.06) -15.78 2478 -9.09

2003 - 2004 1.7

(0.06) 6.25 3073 24.01

2004 - 2005 2.7

(0.06) 58.82 4269 38.92

2005 - 2006 8.8

(0.14) 225.92 6257 46.57

2006 - 2007 13.8 (0.20)

56.81 6821 9.01

2007 - 2008 16.7 (0.19)

21.01 8501 24.63

2008 - 2009 17.9 (0.21)

7.18 8265 -2.78

2009 - 2010 17.1 (0.21)

-4.46 7837 -5.17

2010 - 2011 144.5 (1.57)

745.02 9195 17.32

Note : Figures in brackets indicate the percentage share in the overall exports to SAARC.

Source: RBI Bulletins of various years and DGCI & S.

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260

Figure 4.19 (a) SHARE OF INDIA’S IMPORTS TO MALDIVES IN INDO – SAARC

IMPORTS TRADE

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

19

94

-95

19

95

-96

19

96

-97

19

97

-98

19

98

-99

19

99

-20

00

20

00

-01

20

01

-02

20

02

-03

20

03

-04

20

04

-05

20

05

-06

20

06

-07

20

07

-08

20

08

-09

20

09

-10

20

10

-11

Year

Imp

ort

s T

rad

e

Imports from Maldives

Imports from SAARC

Figure 4.19 (b) ANNUAL GROWTH RATES OF INDO – MALDIVES IMPORTS

TRADE & INDO – SAARC IMPORTS

-200

-100

0

100

200

300

400

500

600

700

800

0 2 4 6 8

10

12

14

16

18

Year

Imp

ort

s T

rad

e (

Gro

wth

rate

)

Imports from Maldives

Imports from SAARC

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261

Table 4.20 INDIA’S TRADE WITH MALDIVES – EXPORTS, IMPORTS AND

TRADE BALANCE (Rs. in crores)

Year Exports to Maldives

Growth Rate(%)

Imports from

Maldives

Growth Rate(%)

Balance of Trade

1994 - 1995 48.30 0.7 -- 47.6 1995 - 1996 52.50 8.69 0.6 -14.28 51.9 1996 - 1997 36.80 -29.90 0.6 -- 36.2 1997 - 1998 32.50 -11.68 0.9 50.00 31.6 1998 - 1999 35.30 8.61 0.2 -77.70 35.1 1999 - 2000 31.60 -10.48 1.7 750.00 29.9 2000 - 2001 112.40 255.69 0.9 -47.05 111.5 2001 - 2002 128.20 14.05 1.9 111.11 123.6 2002 - 2003 152.90 19.26 1.6 -15.78 151.3 2003 - 2004 194.60 27.27 1.7 6.25 192.9 2004 - 2005 213.90 9.91 2.7 58.82 211.2 2005 - 2006 299.20 39.88 8.8 225.92 290.4 2006 - 2007 311.00 3.94 13.8 56.81 297.2 2007 - 2008 360.60 15.95 16.7 21.01 343.9 2008 - 2009 590.30 63.69 17.9 7.18 572.4 2009 - 2010 378.50 -35.88 17.1 -4.46 361.4 2010 - 2011 484.00 27.87 144.5 745.02 339.5

Source : RBI Bulletins of various years and DGCI & S. Figure 4.20

INDIA’S TRADE WITH MALDIVES – EXPORTS, IMPORTS AND TRADE BALANCE

0

100

200

300

400

500

600

700

19

94

-95

19

95

-96

19

96

-97

19

97

-98

19

98

-99

19

99

-20

00

20

00

-01

20

01

-02

20

02

-03

20

03

-04

20

04

-05

20

05

-06

20

06

-07

20

07

-08

20

08

-09

20

09

-10

20

10

-11

Year

Ex

po

rts

, Im

po

rts

& B

ala

nc

e T

rad

e

Exports to Maldives

Imports from Maldives

Balance of Trade

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262

Table 4.21 SHARE OF INDIA’S EXPORTS TO AFGHANISTAN IN INDO –

SAARC EXPORT TRADE (Rs. in crores)

Year India’s

export to Afghanistan

Growth Rate(%)

Indo - SAARC exports Trade

Growth Rate(%)

1994 - 1995 -- -- 3815

1995 - 1996 -- -- 5755 50.85

1996 - 1997 -- -- 6041 4.97

1997 - 1998 -- -- 5987 -0.89

1998 - 1999 -- -- 7065 18.00

1999 - 2000 -- -- 6043 -14.46

2000 - 2001 -- -- 8810 45.79

2001 - 2002 -- -- 9662 9.67

2002 - 2003 -- -- 13184 36.45

2003 - 2004 -- -- 19061 44.58

2004 - 2005 -- -- 19953 4.68

2005 - 2006 631.6 -- 24561 23.09

2006 - 2007 822.3 30.19 29274 19.18

2007 - 2008 1001.9 21.84 38720 30.27

2008 - 2009 1823.4 81.99 38821 0.26

2009 - 2010 2203.6 20.85 39648 2.13

2010 - 2011 18373.1 -14.88 57893 46.07

Source: RBI Bulletins of various years and DGCI & S.

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263

Figure 4.21 (a) SHARE OF INDIA’S EXPORTS TO MALDIVES IN INDO – SAARC

EXPORT TRADE

0

10000

20000

30000

40000

50000

60000

70000

19

94

-95

19

95

-96

19

96

-97

19

97

-98

19

98

-99

19

99

-20

00

20

00

-01

20

01

-02

20

02

-03

20

03

-04

20

04

-05

20

05

-06

20

06

-07

20

07

-08

20

08

-09

20

09

-10

20

10

-11

Year

Ex

po

rts

Tra

de

Exports to Afghanistan

Export to SAARC

Figure 4.21 (b) ANNUAL GROWTH RATES OF INDO – MALDIVES EXORT

TRADE & INDO – SAARC IMPORTS

-20

-10

0

10

20

30

40

50

60

0 2 4 6 8

10

12

14

16

18

Year

Exp

ort

s T

rad

e (

Gro

wth

rate

)

Exports to Afghanistan

Exports to SAARC

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264

Table 4.22 INDIA’S TRADE WITH AFGHANISTAN – EXPORTS, IMPORTS

AND TRADE BALANCE (Rs. in crores)

Year Exports to

Afghanistan Growth Rate(%)

Imports to Afghanistan

Growth Rate(%)

Balance of Trade

1994 - 1995 -- -- -- -- -- 1995 - 1996 -- -- -- -- -- 1996 - 1997 -- -- -- -- -- 1997 - 1998 -- -- -- -- -- 1998 - 1999 -- -- -- -- -- 1999 - 2000 -- -- -- -- -- 2000 - 2001 -- -- -- -- -- 2001 - 2002 -- -- -- -- -- 2002 - 2003 -- -- -- -- -- 2003 - 2004 -- -- -- -- -- 2004 - 2005 -- -- -- -- -- 2005 - 2006 631.6 -- 258.7 -- 327.9 2006 - 2007 822.3 30.19 156.1 -39.66 666.2 2007 - 2008 1001.9 21.84 439.8 181.74 562.1 2008 - 2009 1823.4 81.99 592.5 34.72 1230.9 2009 - 2010 2203.6 20.85 590.4 -0.35 1313.2 2010 - 2011 18373.1 -14.88 557.6 -5.55 1318.1

Source : RBI Bulletins of various years and DGCI & S.

Figure 4.22 INDIA’S TRADE WITH AFGHANISTAN – EXPORTS, IMPORTS

AND TRADE BALANCE

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

19

94

-95

19

95

-96

19

96

-97

19

97

-98

19

98

-99

19

99

-20

00

20

00

-01

20

01

-02

20

02

-03

20

03

-04

20

04

-05

20

05

-06

20

06

-07

20

07

-08

20

08

-09

20

09

-10

20

10

-11

Year

Ex

po

rts

, Im

po

rts

& B

ala

nc

e T

rad

e

Export to Afghanistan

Imports from Afghanistan

Balance of Trade

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265

Table-4.23 Composition of India’s Exports to Nepal

Product wise – Year wise

Year

1994-

95

1995-

96

1996-

97

1997-

98

1998-

99

1999-

00

2000-

01

2001-

02

2002-

03

2003-

04

2004-

05

2005-

06

2006-

07

2007-

08

2008-

09

2009-

10

All commodities Growth Rate

106.90

144.7 (35.36)

148.51 (2.63)

157.12 (5.79)

110.37 (-29.37)

141.15 (27.88)

127.19 (-9.89)

189.88 (49.29)

244.25 (28.63)

620.21 (153.96)

698.02 (12.52)

809.86 (16.02)

871.91 (7.66)

414.42 (62.22)

1481.94 (4.77)

1502.14 (1.36)

Drugs, Pharma & Fine Chemicals

15.23 (14.25)

18.71 (12.93)

22.62 (15.23)

25.54 (16.26)

23.76 (21.50)

27.03 (19.04)

29.06 (22.84)

31.75 (16.72)

34.67 (14.19)

35.08 (5.33)

47.80 (6.85)

52.54 (6.49)

58.07 (6.68)

73.94 (5.23)

77.97 (5.26)

82.3 (5.48)

Transport equipment

29.97 (28.09)

22.96 (15.87)

24.09 (16.22)

25.34 (16.13)

18.31 (16.59)

29.20 (20.69)

15.41 (12.12)

48.16 (25.36)

45.71 (18.71)

58.56 (9.44)

64.99 (9.31)

56.51 (6.98)

58.25 (6.68)

112.98 (7.99)

99.19 (6.69)

156.96 (10.45)

Machinery & Instruments

19.02 (17.79)

27.49 (18.99)

14.93 (10.05)

17.80 (11.33)

16.10 (14.59)

12.16 (8.16)

11.14 (8.76)

18.88 (9.94)

20.18 (8.26)

28.11 (4.53)

33.91 (4.86)

34.21 (4.22)

44.69 (5.13)

81.67 (5.77)

98.95 (6.67)

126.78 (8.44)

Coal

4.27 (3.99)

4.58 (3.17)

7.42 (4.99)

4.74 (3.02)

5.48 (4.97)

5.17 (3.66)

6.00 (4.72)

5.92 (3.12)

8.26 (3.38)

8.33 (1.34)

7.99 (1.14)

11.75 (1.45)

10.48 (1.20)

12.64 (0.89)

9.79 (0.66)

14.42 (0.96)

Manufactures of metals

2.24 (2

2.89 (1

3.06 (2

5.58 (3

3.88 (3

4.53 (3

4.77 (3

6.78 (3

9.08 (3

11.74 (1.

16.73

17.72

19.17

29.44

29.53 (1.

41.58 (2.

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266

Year

1

994-95

1

995-96

1

996-97

1

997-98

1

998-99

1

999-00

2

000-01

2

001-02

2

002-03

2

003-04

2

004-05

2

005-06

2

006-07

2

007-08

2

008-09

2

009-10

.09)

.99)

.06)

.55)

.52)

.21)

.75)

.57)

.72)

89)

(2.39)

(2.19)

(0.11)

(2.08)

99)

77)

Tobacco unmanufactured

4.88 ()4.57

6.00 (4.15)

6.44 (4.34)

7.02 (4.47)

3.57 (3.57)

4.80 (3.40)

4.70 (3.69)

5.54 (2.92)

4.51 (1.85)

5.35 (0.86)

6.79 (0.97)

6.21 (0.77)

6.62 (0.76)

10.72 (0.76)

13.40 (0.90)

5.26 (1.02)

Non-basmati rice

6.74 (4.66)

2.63 (1.77)

0.05 (0.03)

0.06 (0.05)

6.88 (4.87)

4.17 (3.28)

1.45 (0.76)

2.64 (1.08)

11.38 (1.83)

4.49 (0.64)

34.66 (3.84)

33.49 (3.84)

60.93 (4.31)

6.21 (0.42)

17.08 (1.14)

Spices

2.22 (2.08)

3.00 (2.07)

3.32 (2.23)

3.54 (2.25)

2.44 (2.21)

3.84 (2.72)

4.17 (3.28)

4.89 (2.57)

8.28 (3.39)

13.67 (2.20)

13.23 (1.89)

11.63 (1.44)

18.08 (2.07)

30.65 (2.17)

40.75 (2.74)

24.72 (1.65)

Man made yarn fab made ups

3.13 (2.93)

6.87 (4.75)

7.50 (5.05)

7.44 (4.74)

2.11 (1.91)

1.12 (0.79)

3.83 (3.01)

2.76 (1.45)

1.57 (0.64)

4.18 (0.67)

Cotton yarn fab made ups

1.27 (1.19)

2.58 (1.78)

5.21 (3.51)

4.65 (2.96)

4.49 (4.07)

3.92 (2.78)

3.58 (2.81)

6.09 (3.21)

9.05 (3.71)

29.93 (4.83)

21.19 (3.04)

18.58 (2.29)

18.53 (2.13)

49.00 (3.46)

24.52 (1.65)

31.26 (2.08)

Natural silk yarn fab made ups

0.05

0.01

0.01

0.01

3.53 (2.78)

Inorgal orgal Agro chemicals

1.67 (1.56)

2.23 (1.54)

2.89 (1.95)

3.23 (2.12)

2.17 (1.97)

3.20 (2.27)

3.29 (2.59)

4.47 (2.35)

5.66 (2.32)

8.76 (1.41)

20.92 (2.9

11.61 (1.4

11.84 (1.3

20.22 (2.9

19.71 (1.33)

24.01 (1.59)

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267

Year

1

994-95

1

995-96

1

996-97

1

997-98

1

998-99

1

999-00

2

000-01

2

001-02

2

002-03

2

003-04

2

004-05

2

005-06

2

006-07

2

007-08

2

008-09

2

009-10

9) 3) 6) 9)

Plastic & Linolean products

0.98 (0.89)

0.98 (0.68)

1.63 (1.07)

2.09 (1.33)

2.04 (1.85)

2.97 (2.10)

2.86 (2.25)

5.45 (2.35)

6.25 (2.56)

11.13 (1.82)

15.25 (2.18)

15.53 (1.92)

23.66 (2.71)

44.38 (3.14)

45.49 (3.06)

41.51 (2.76)

Glass/glass warel ceramics/cement

4.61 (4.31)

6.34 (4.38)

8.55 (5.76)

5.49 (3.49)

3.75 (3.39)

6.79 (4.81)

2.86 (2.25)

6.91 (3.64)

12.14 (4.94)

37.68 (6.07)

46.94 (6.72)

43.32 (5.34)

51.37 (5.89)

60.17 (4.25)

55.46 (3.74)

121.27 (8.07)

Spices & beverage

0.05

0.16 (0.11)

0.10 (0.06)

0.18 (0.11)

0.05

0.04 (0.02)

2.62 (2.06)

Primary/semifini iron & steel

4.40 (4.12)

13.75 (9.50)

16.66 (11.22)

21.35 (13.59)

4.74 (4.29)

3.05 (2.16)

2.41 (1.89)

6.19 (3.26)

32.45 (13.29)

70.72 (11.40)

36.37 (5.21)

25.59 (3.16)

27.98 (3.21)

71.35 (5.04)

134.94 (9.11)

139.37 (9.28)

Paints/enamels/varnishes

1.04 (0.97)

1.15 ()0.79

1.50 (1.01)

2.11 (1.34)

1.04 (0.94)

0.96 (0.68)

2.31 (1.82)

3.00 (1.58)

3.01 (1.23)

3.73 (0.60)

4.23 (0.61)

4.25 (0.52)

4.07 (0.47)

6.27 (0.44)

6.74 (0.45)

9.04

(0.60)

Paper/wood products

3.83 (3.58)

5.91 (4.08)

6.00 (4.04)

5.76 (3.67)

4.86 (4.40)

5.14 (3.64)

2.29 (1.80)

8.32 (4.38)

8.50 (3.48)

15.23 (2.46)

18.34 (2.63)

16.53 (2.04)

14.87 (1.71)

23.14 (1.64)

28.80 (1.94)

46.06 (3.07)

Electronic Goods

0.69 (0.65)

1.81 (1.25)

1.03 (1.33)

1.33 (0.85)

1.28 (1.16)

3.07 (2.17)

2.23 (1.75)

4.30 (3.63)

3.63 (1.49)

7.74 (1.25)

7.46 (1.07)

8.34 (1.03)

9.75 (1.12)

23.47 (1.6

21.84 (1.47)

26.01 (1.73)

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268

Year

1

994-95

1

995-96

1

996-97

1

997-98

1

998-99

1

999-00

2

000-01

2

001-02

2

002-03

2

003-04

2

004-05

2

005-06

2

006-07

2

007-08

2

008-09

2

009-10

6)

Carpets handmade

0.03

0.73 (0.49)

0.02

0.01

2.05 (1.61)

Cosmetics/Toiletrim

2.10 (1.96)

1.93 (1.33)

3.71 (2.49)

3.05 (1.94)

2.62 (2.37)

2.12 (1.50)

1.85 (1.45)

3.44 (1.81)

5.55 (2.27)

8.54 (1.38)

11.43 (1.64)

13.16 (1.62)

12.45 (1.43)

16.43 (1.16)

16.68 (1.13)

21.37

(1.42)

Miscellanioun processed items

2.70 (2.53)

3.55 (2.45)

3.80 (2.56)

3.94 (2.51)

2.25 (2.04)

3.35 (2.37)

1.84 (1.45)

5.57 (2.93)

4.89 (2.00)

10.20 (1.64)

12.32 (1.76)

12.05 (1.49)

12.78 (1.47)

17.54 (1.24)

29.46 (1.98)

31.03

(2.06)

Non-ferrous metals

0.38 (0.35)

1.46 (1.01)

1.09 (0.73)

0.83 (0.53)

0.22 (0.19)

0.56 (0.39)

1.53 (1.20)

0.22 (0.04)

1.44 (0.21)

0.23 (0.03)

0.67 (0.07)

16.06 (1.14)

13.56 (0.92)

18.27 (0.92)

Sugar

1.18 (0.79)

0.03

0.05

0.08

1.22 (0.96)

Basmatirice

0.02

0.03

0.02

3.80 (2.69)

1.07 (0.84)

RMG of cotton including accessories

0.20 (0.18)

0.22 (0.15)

0.17

0.25 (0.16)

0.16 (0.14)

0.30 (0.21)

1.04 (0.82)

Machino tools

0.23

0.40

0.11

0.80

0.44

1.74

0.86

Contd Next page

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269

Year

1

994-95

1

995-96

1

996-97

1

997-98

1

998-99

1

999-00

2

000-01

2

001-02

2

002-03

2

003-04

2

004-05

2

005-06

2

006-07

2

007-08

2

008-09

2

009-10

(0.22)

(0.28)

(0.51)

(0.39)

(1.23)

(0.67)

Rubber manufactured products

1.06 (0.99)

1.40 (0.97)

0.77 (0.52)

0.81 (0.52)

1.36 (1.23)

1.90 (1.35)

0.86 (0.67)

2.49 (0.31)

3.41 (1.39)

4.65 (0.75)

5.30 (0.76)

6.49 (0.80)

8.44 (0.97)

10.34 (0.73)

10.31 (0.69)

11.65 (0.78)

Iron & steel bar rod

0.76 (0.71)

1.49 (1.03)

1.37 (0.92)

1.81 (1.15)

1.04 (0.94)

0.43 (0.30)

0.81 (0.64)

1.60 (0.84)

6.13 (2.51)

5.59 (0.90)

3.45 (0.49)

3.44 (0.42)

2.13 (0.24)

9.58 (0.68)

11.44 (0.77)

31.07

(2.07`)

Fresh vegetables

0.36 (0.23)

0.11 (0.09)

0.03

0.35 (0.28)

0.84 (0.44)

1.74 (0.71)

8.87 (1.43)

7.99 (1.44)

8.12 (1.00)

9.68 (1.11)

14.09 (0.99)

13.87 (0.93)

19.71 (1.31)

Fresh fruits

0.10 (0.06)

0.29 (0.26)

0.01

0.04 (0.03)

0.14 (0.07)

1.31 (0.54)

5.20 (0.84)

7.87 (1.13)

6.18 (0.76)

7.18 (0.82)

11.35 (0.80)

11.71 (0.79)

9.92 (0.66)

Others ores & minerals

0.35 (0.22)

0.36 (0.32)

0.72 (0.51)

0.61 (0.48)

0.84 (0.44)

0.6

6 (0.27)

3.08 (0.49)

6.36 (0.91)

5.85 (0.72)

7.84 (0.89)

12.07 (0.85)

12.00 (0.80)

16.30

(1.09)

Processied minerals

0.82 (0.53)

0.41 (0.37)

0.67 (0.47)

0.48 (0.38)

0.61 (0.32)

1.19 (0.49)

3.04 (0.49)

Dairy products

0.10 (0.0

0.33 (0.2

0.67 (0.3

0.79 (0.3

2.81 (0.45)

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270

Year

1

994-95

1

995-96

1

996-97

1

997-98

1

998-99

1

999-00

2

000-01

2

001-02

2

002-03

2

003-04

2

004-05

2

005-06

2

006-07

2

007-08

2

008-09

2

009-10

7) 6) 5) 2) Residual Chemicals & allied products

0.59 (0.38)

0.73 (0.66)

1.33 (0.94)

0.64 (0.50)

2.60 (1.37)

2.48 (1.02)

2.20 (0.35)

Petroleum & crude products

140.71 (22.68)

217.20 (31.12)

359.39 (44.38)

373.68 (42.86)

514.68 (36.39)

575.33 (38.85)

327.28 (21.79)

Other commodities

56.92 (9.18)

50.21 (7.19)

20.05 (2.48)

25.05 (2.87)

47.02 (3.13)

41.36 (2.79)

47.02 (3.13)

Manmade staple fibre

0.39 (0.06)

0.01

0.19

0.52 (0.06)

12.68 (0.89)

10.14 (0.68)

20.00 (1.33)

Oil meals

0.27 (0.17)

0.15 (0.13)

0.11 (0.07)

0.38 (0.29)

0.22 (0.12)

0.46 (0.19)

4.90 (0.79)

6.51 (0.93)

3.90 (0.48)

8.45 (0.96)

10.28 (0.73)

18.89 (1.27)

16.27 (1.08)

Other cereals

1.67 (0.27)

1.30 (0.19)

1.83 (0.23)

2.12 (0.26)

11.33 (0.80)

3.90 (0.26)

14.43 (0.96)

Sources: CMIE Reports –(Centre for Monitoring Indian Economy), compiled from various issues

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271

Table-4.24 Composition of India’s Exports to Sri Lanka

Product wise – Year wise

Year

1994-

95

1995-96

1996-

97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

All commodities

335.84

353.08

379.52

409.86

404.87

461.11

602.80

537.62

719.56

1226.95

1329.62

1912.16

2102.32

2620.35

2167.44

2108.09

Transport equipment

84.05 (25.02)

74.76 (21.17)

54.36 (14.32)

57.16 (13.95)

72..36 (717.87)

64.50 (13.99)

79.06 (13.12)

49.71 (9.25)

105.25 (14.63)

148.27 (12.08)

232.82 (17.51)

319.14 (16.69)

361.07 (17.17)

375.60 (14.33)

256.23 (11.82)

290.67 (13.79)

Cotton yarn fabrics, made ups

54.85 (16.33)

54.36 (15.39)

57.41 (15.13)

65.46 (15.97)

67.46 (16.73)

73.69 (15.98)

77.42 (12.8 )

70.36 (13.09)

79.24 (11.01)

84.28 (6.87)

87.06 (6.55)

107.47 (5.62)

128.16 (6.09)

151.98 (5.79)

175.90 (8.12)

196.33 (9.31)

Machinery & instruments

24.82 (7.39)

23.70 (6.71

32.06 (8.45)

36.68 (8.95)

34.64 (8.56)

37.47 (8.13)

43.60 ()7.23

41.48 (7.45)

53.61 (7.45)

51.20 (4.17)

72.26 (5.43)

85.35 (4.46)

91.72 (4.36)

92.80 (3.54)

94.16 4.34()

103.37 (4.09)

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272

Year

1994-

95

1995-96

1996-

97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

)

Prim & semi finished iron & steel

17.45 (5.19)

20.43 (5.79)

22.33 (5.88)

25.88 (6.31)

16.01 (3.95)

20.00 (4.34)

38.67 (6.42)

28.06 (5.22)

35.60 (4.95)

75.80 (6.18)

40.19 (3.02)

108.95 (5.69)

107.13 (5.09)

126.14 (4.81)

89.39 (4.12)

79.87 (3.79)

Glass/Glass warel ceramics/cement

25.07 (7.46)

18.00 (5.09)

10.97 (2.89)

9.44 (2.30)

6.47 (1.59)

10.20 (2.21)

38.60 (6.40)

37.24 (6.93)

36.61 (5.09)

10.34 3.28()

32.12 (2.42)

32.95 (1.73)

33.49 (1.59)

20.26 (0.77)

19.85 (0.92)

21.13

(1.00)

Drugs, pharma & fine chemicals

22.06 (6.57)

24.71 (6.99)

24.79 6.53()

27.83 (6.79)

34.42 (8.50)

31.13 (6.75)

38.02 (6.30)

32.12 (5.97)

46.88 (6.52)

50.43 (4.11)

61.48 (4.62)

69.39 (3.63)

89.40 (4.25)

81.22 (3.09)

99.89 (4.62)

104.49 (5.19)

Manufacture of metals

17.49 (5.21)

15.42 (4.3

18.87 (4.97)

23.41 (5.71)

27.01 (6.67)

25.69 5.57(

37.21 (6.17)

24.88 (4.63)

33.77 (4.69)

39.83 3.25()

44.15 (3.32)

50.69 (2.65)

46.93 (2.23)

40.13 (1.53)

50.31 (2.34)

43.02 (2.04)

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273

Year

1994-

95

1995-96

1996-

97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

7)

)

Paper/wood products

11.59 (3.45)

18.32 (5.19)

17.74 (4.76)

17.80 (4.34)

14.87 (3.67)

22.18 (4.81)

32.48 (5.39)

29.13 (5.42)

35.09 (4.88)

39.37 (3.21)

43.97 (3.31)

63.07 (3.29)

64.61 (3.07)

68.06 (2.59)

68.27 (3.15)

62.14 (2.95)

Pulses

3.80 (1.13)

7.21 (2.04)

9.76(2.57)

26.22 (6.39)

21.08 (5.21)

29.82 (6.47)

26.56 (4.41)

2.86 (0.23)

23.12 (1.74)

30.77 (1.61)

13.56 (0.65)

10.10 (0.39)

9.55 (0.44)

12.41 (0.59)

Man made yarn fabrics, made ups

6.04 (1.79)

5.97 (1.69)

8.74 (2.30)

9.82 (2.39)

15.14 (3.74)

23.30 (5.05)

26.28 (5.05)

24.49 (4.56)

34.05 4.73()

51.33 (4.18)

50.22 (3.78)

63.53 (3.32)

59.32 (2.82)

69.51 (2.65)

73.04 (3.37)

76.60 (3.63)

Plastic & linoleum products

10.18 (3.03)

11.32 3.21()

12.68 (3.34)

16.76 (4.09)

14.11 (3.49)

15.61 (3.39)

23.89 (3.96)

20.72 (3.85)

22.74 (3.16)

34.46 (2.81)

42.43 (3.19)

51.14 (2.67)

55.96 (2.66)

51.37 (1.96)

48.42 (2.23)

49.32 (2.34)

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274

Year

1994-

95

1995-96

1996-

97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

Fresh vegetables

10.84 (3.23)

13.68 (3.87)

17.80 (4.69)

13.16 (3.21)

8.85 (2.19)

14.25 (3.09)

19.83 (3.29)

13.95 (2.59)

16.50 2.29()

18.92 1.54()

17.12 (1.29)

23.13 (1.21)

32.35 (1.54)

28.32 (1.08)

41.36 (1.91)

44.37 (2.10)

RMG of cotton including accessories

1.23 (0.37)

1.36 (0.36)

3.00 (0.79)

5.16 (1.26)

4.85 (1.19)

14.23 (3.08)

16.97 (2.82)

11.82 (2.19)

13.84 (1.92)

23.97 (1.95)

16.00 (1.20)

17.22 (0.90)

17.69 (0.84)

14.26 (0.54)

14.89 0.69()

13.62 (0.65)

Inorganic/organic agro chemicals

5.01 (1.49)

9.38 (2.66)

9.33 (2.46)

9.97 (2.43)

10.85 (2.68)

10.58 2.29()

14.72 (2.44)

13.02 (2.42)

18.68 (2.59)

22.32 (1.82)

27.94 (2.10)

32.39 (1.69)

29.51 (1.40)

40.49 (1.54)

41.55 (1.92)

36.41 (1.73)

Spices

6.67 (1.98)

11.32 (3.21)

7.49 (1.97)

3.68 (0.89)

5.51 (1.36)

11.32 (1.245)

13.03 (2.16)

14.25 (2.65)

17.28 (2.40)

19.54 (1.59)

16.56 (1.25)

19.70 (1.03)

31.77 (1.51)

40.24 (1.54)

43.97 (2.03)

52.35 (2.48)

Oil 7. 1 10 1 8. 9 1 1 1 2 2 2 2 4 4 4

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275

Year

1994-

95

1995-96

1996-

97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

meals 61 (2.27)

1.52 (3.26)

.41 (2.74)

3.56 (3.31)

81 (2.18)

.48 (2.06)

0.08 (1.67)

2.44 (2.13)

3.13 (1.82)

7.24 (2.22)

3.15 (1.74)

2.48 (1.18)

6.21 (1.25)

5.78 (1.75)

0.27 (1.86)

3.18 (2.05)

Electronic Goods

2.51 (0.74)

1.99 (0.56)

5.06 (1.33)

4.16 (1.01)

5.23 (1.29)

6.80 (1.47)

9.81 (1.63)

7.10 (1.32)

10.97 (1.52)

17.61 (1.52)

18.34 (1.38)

18.73 (0.98)

20.71 (0.99)

17.60 (0.37)

21.21 (0.98)

24.52 (1.16)

Iron & steel bar rods

8.53 (2.54)

8.14 (2.30)

4.54 (1.19)

5.23 (1.28)

3.36 (0.83)

5.53 (1.19)

7.50 (1.24)

3.66 (0.68)

7.74 (1.08)

16.58 (1.35)

11.79 (0.89)

9.69 (0.51)

8.53 (0.41)

12.31 (0.47)

16.09 (0.74)

10.54 (0.49)

Sugar

25.24 (6.65)

2.89 (0.71)

0.04

0.04

7.44 (1.23)

62.94 (11.7)

74.87 (10.4)

53.96 (4.39)

Cosmetics/toilet tries

2.59 (0.77

3.15

2.68 (0.71

4.04

5.31 (1

4.08

6.38

8.65

7.08

8.96 (0

11.03

14.89

18.64

18.55

32.38

48.13

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276

Year

1994-

95

1995-96

1996-

97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

) (0.89)

) (0.99)

.31)

(0.88)

(1.06)

(1.61)

(0.98)

.73)

(0.83)

(0.78)

(0.89)

(0.71)

(1.49)

(2.28)

Rubber manufacture products

4.40 (1.31)

4.37 (1.24)

6.58 1.73()

8.57 (2.09)

5.85 (1.44)

4.25 (0.92)

5.80 (0.96)

4.78 (0.89)

5.50 (0.76)

9.99 (0.81)

6.98 (0.52)

12.47 (0.65)

14.05 (0.67)

15.40 (00.59)

17.27 (0.79)

14.88 (0.71)

Miscellaneous processed items

2.40 (0.71)

5.90 (1.67)

3.72 (0.98)

6.48 (1.58)

4.55 (1.12)

3.87 (0.87)

4.50 (0.75)

5.74 (1.07)

6.79 (0.94)

17.05 (1.39)

6.92

(0.52)

9.44 (0.49)

11.55 (0.54)

12.90 (0.49)

17.26 (0.79)

12.21 (0.58)

Marine products

2.62 (0.78)

3.38 (0.95)

6.61 (1.74)

5.76 (1.41)

4.27 (1.05)

4.33 (0.94)

3.74 (0.62)

3.51 (0.29)

5.24 (0.39)

6.35 (0.33)

6.76 (0.32)

6.76 (0.26)

7.12 (0.33)

15.66 (0.74)

Paints/enamels/varnishes

1.08 (0.32)

1.21 (0.

1.04 (0.27)

1.97 (0.4

2.45 (0.61)

2.48 (0.5

3.33 (0.5

3.61 (0.6

4.39 (0.6

5.20 (0.42)

5.17 (0.38)

7.02 (0.37)

7.37 (0.35)

9.90 (0.38)

10.57 (6.49)

11.12 (0.53)

Contd Next page

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277

Year

1994-

95

1995-96

1996-

97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

34)

8) 4) 5) 7) 1)

RMG of man made fibres

0.12

0.32

0.3

0.72

1.30 (0.32)

4.25 (0.92)

3.13 (0.52)

RMG of wool

0.03

0.01

0.15

0.1

2.79 (0.46)

2.05 (0.38)

5.07 (0.70)

8.28 (0.6)

Machine tools

1.09 (0.32)

1.11 (0.31)

1.25 (0.33)

1.10 (0.26)

2.52 (0.62)

2.81 (0.61)

2.37 (0.39)

Gems & jewellery

0.95(0.28)

1.31 (0.37)

1.39 (0.37)

0.55

1.36 (0.34)

3.11 (0.67)

2.29 (0.38)

1.29 (0.24)

1.40 (0.19)

4.14 (0.34)

Tea

0.76 (0.23

0.73

3.37 (0.89

3.01

2.13 (0

1.81

1.98

2.51

2.75

3.68 (0

6.34 (0

6.29 (0

8.06 (0

14.95

16.12

19.16

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278

Year

1994-

95

1995-96

1996-

97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

) ) (0.73)

.53)

(0.39)

(0.33)

(0.47)

(0.38)

.29)

.49)

.33)

.38)

(0.57)

(0.74)

(0.91)

Wheat

5.35 (0.99)

17.43 (2.43)

44.28 (3.61)

Non-ferrous metals

0.4

0.39

0.75

0.81

1.54 (0.29)

8.36 (1.16)

20.04 (1.63)

24.45 (1.84)

44.92

(2.35)

50.34 (2.39)

61.57 (2.35)

51.34 (2.37)

46.42 (2.20)

Residual chemicals & allied products

2.64 (0.64)

3.08 (0.76)

3.16 (0.69)

3.57 (0.59)

4.37 (0.81)

4.48 (0.62)

5.44 (0.44)

5.85

(0.44)

12.03 (0.63)

16.25 (0.77)

13.77 (0.55)

8.26 (0.38)

8.11 (0.38)

Other cereals

0.35

0.17

0.28

1.02 (0.17)

0.36 (0.07)

0.46

5.29 (0.43)

Petroleum & crude products

272.18 (2

308.26 (2

623.85 (3

702.43 (3

1096.37

730.72 (3

552.25 (2

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279

Year

1994-

95

1995-96

1996-

97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

.118)

3.18)

2.63)

3.41)

(41.87)

3.17)

6.19)

Non-basmati Rice

0.6

57.50 (4.32)

0.63 (0.03)

0.30 (0.01)

39.60 (1.51)

6.76 (0.31)

6.19 (0.29)

Other commodities

31.16 (2.34)

48.48 (2.53)

48.45 (2.30)

44.42 (1.69)

64.99 (2.99)

104.62 (4.96)

Total 335.84

353.08

379.52

409.82

404.87

461.11

602.80

537.62

719.56

1226.95

1329.62

1912.16

2102.32

2620.35

2167.44

2108.09

Growth rate

5.34%

7.49

7.98%

-1.2

13.89

30.72

-10.81

33.84

70.31

8.36%

43.81

9.04

24.62

-17.28

2.74

Sources: CMIF Reports

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280

Table-4.25 Composition of India’s Exports to Bangladesh

Product wise – Year wise

1994-95

1995-96

1996-

97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

All commodities Growth rate

577.02

98082 (09.92)

79078 (-19.37)

745.68 (-5.17)

946.40 (26.9)

604.10 (-36.16)

936.46 (55.01)

915.14 (-2.27)

1038.14 (13.44)

1595.51 (53.638)

1106.62 (-30.64)

1266.48 (14.44)

1310.41 (3.46)

2011.31 (53.48)

196171 (-2.46)

2323.96 (18.46)

Cotton yarn fabrics, made ups

254.30 (44.07)

277.41 (28.82)

337.19 (42.64)

273.60 (36.96)

123.40 (13.04)

157.20 (26.02)

217.32 (23.21)

166.41 (18.18)

138.68 (13.36)

173.01 (10.84)

208.12 (18.81)

243.92 (19.26)

226.65 (17.68)

373.56 (18.57)

323.57 (16.49)

281.43 (12.11)

Machinery & instruments

38.76 (6.72)

45.62 (4.65)

55.89 (7.07)

47.29 (6.34)

36.03 (3.81)

24.88 (4.12)

66.71 (7.12)

73.33 (8.01)

41.47 (3.99)

91.73 (5.73)

71.04 (6.42)

73.39 (5.79)

59.18 (4.52)

95.47 4.75()

181.66 (9.26)

88.89 (3.82)

Non-Basmati rice

28.25 (4.89)

284.51 (29.01)

40.96 (5.18)

96.96 (13.00)

533.74 (56.39)

83.53 (13.83)

65.22 (6.96)

16.89 (1.85)

114.95 (11.07)

192.13 (12.04)

Transport equip

54.1

86.3

66.68

34.6

25.0

40.4

61.5

78.3

57.4

76.3

58.7

80.0

92.2

137.

165.

243.

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281

1994-95

1995-96

1996-

97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

ment 5 (9.38)

9 (8.84)

(8.43)

7 (4.65)

0 (2.64)

9 (6.70)

9 (6.58)

9 (8.57)

0 (5.53)

8 (4.79)

1 (5.31)

6 (6.32)

1 (7.04)

98 (6.86)

91 (8.46)

60 (10.48)

Glass/glass warel ceramics/cement

35.76 (6.19)

29.91 (3.05)

33.53 ()4.24

41.35 (5.54)

24.21 (2.56)

23.00 (3.81)

38.90 (4.15)

20.71 (2.26)

13.02 (1.25)

22.71 (1.42)

Manufactures of metals

9.78 (1.69)

11.25 (1.15)

12.15 (1.54)

13.17 (1.77)

12.70 (1.34)

14.24 (2.36)

32.17 (3.43)

34.22 (3.74 )

22.79 (2.19)

101.45 (6.36)

86.78 (7.84)

60.76 (4.79 )

34.61 (2.64)

36.06 (1.79)

37.57 (1.92)

29.45 (1.26)

Drugs, pharma & fine chemicals

11.16 (1.93)

13.95 (1.42)

16.15 (2.04)

21.52 (2.89)

23.86 (2.52)

21.58 (3.57)

30.24 (3.23)

26.79 (2.93)

35.28 (3.39)

41.82 (2.62)

54.15 (4.89)

65.19 (5.15)

71.61 (5.46)

76.87 (3.825)

88.08 (4.49)

90.18 (3.88)

Coal

23.58 (4.09)

23.40 (2.39)

14.88 (1.88)

18.94 (2.54)

27.24 (2.88)

22.05 3.65()

29.97 (3.20)

42.56 (4.65)

44.39 (4.28)

48.63 (3.05)

43.06 (3.89)

47.65 (3.76)

57.79 (4.41)

53.38 (2.65)

61.62 (3.14)

69.15 (2.98)

Prim & semi finished iron &

20.12 (3.4

31.64 (3.2

39.08 (4.94)

34.49 (4.6

16.50 (1.7

32.78 (5.4

27.23 (2.9

27.73 (3.0

62.01 (5.9

67.49 (4.2

41.52 (3.7

79.21 (6.

71.90 (5.4

76.98 (3.8

85.97 (4.3

123.96 (5

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282

1994-95

1995-96

1996-

97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

steel 9) 3) 3) 4) 3) 1) 3) 7) 3) 5) 25)

8) 3) 8) .33)

Wheat

3.53 (0.61)

22.87 (2.33)

9.67 (1.22)

25.83 (2.76)

86.27 (9.43)

96.83 (9.33)

189.26 (11.86)

Man-,ade uarm fabrocs, made ups

9.99 (1.73)

9.80 (0.99)

14.85 (1.88)

15.39 (2.06)

13.66 (1.44)

14.02 (2.32)

23.77 (2.54)

15.99 (1.75)

26.69 (2.54)

29.20 (1.83)

39.57 (3.58)

59.81 (4.72)

48.73 (3.72)

46.75 (2.32)

73.95 (3.77)

103.38 (4.49)

Inorganic/organic/agro chemicals

4.74 (0.82)

11.94 (1.21)

6.83 (0.86)

6.44 (0.86)

5.62 (0.59)

7.30 (1.21)

22.82 (2.43)

19.06 (2.08)

17.15 (1.65)

29.68 (1.85)

32.63 (2.94)

27.69 (2.19)

30.00 (2.29)

48.23 2.39()

56.42 2.88()

51.56 (2.21)

Paper/wood products

19.55 (3.38)

25.32 (2.58)

21.62 (2.73)

10.94 (1.47)

7.98 0.84()

10.29 (1.70)

22.02 (2.35)

30.94 (3.38)

23.32 (2.25)

19.41 (1.21)

19.13 (1.73)

19.58 (1.55)

20.75 (1.58)

27.10 (1.35)

32.82 (1.67)

18.60 (0.80)

Oil meals

0.43 (3.38)

25.32 (2.58)

21.62 (2.73)

10.94 (1.47)

7.98 (0.84)

10.29 (1.70)

22.02 (2.35)

30.94 (3.38)

23.32 (2.25)

19.41 (1.21)

19.13 (1.73)

19.58 (1.55)

20.75 (1.58)

27.10 (1.35)

32.82 (1.67)

18.60 (0.80)

Pulses 0.0

0.18

1.1

0.1

19.

18.

21.

27.

27.

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283

1994-95

1995-96

1996-

97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

3 (0.02)

2 (0.15)

0 18 (3.17)

01 (1.92)

61 (2.36)

55 (2.65)

36 (1.71)

Spices

2.15 (0.37)

13.02 ()1.32

2.20 (0.28)

2.65 (0.36)

4.31 (0.46)

10.91 (1.81)

15.54 (1.66)

10.57 (1.16)

10.34 (0.99)

13.64 (0.85)

16.94 (1.53)

10.60 (0.84)

38.35 (2.92)

49.43 (2.46)

27.04 (1.38)

47.77 (2.06)

Processed minerals

6.48 (0.41)

6.28 (0.57)

7.76 (0.61)

12.64 (0.96)

10.35 (0.51)

14.91 (0.76)

17.14 (0.74)

Fresh fruits

7.01 (1.21)

9.63 (0.98)

11.45 (1.45)

11.08 (1.49)

7.81 (0.83)

12.24 (2.03)

15.15 (1.62)

24.43 (2.67)

13.07 (1.26)

24.20 (1.52)

23.27 (2.10)

29.26 (2.07)

31.77 (2.42)

32.64 (1.62)

45.26 (2.31)

39.45 (1.69)

Miscellaneous processed items

1.20 (0.21)

4.40 (0.45)

3.21 (0.41)

2.25 (0.30)

2.83 (0.29)

5.00 (0.80)

14.73 (1.57)

Dyes intermediates etc.,

11.48 (1.99)

11.22 (1.14)

16352 (2.09)

14.49 (1.94)

12.06 (1.27)

11.89 (1.97)

14.00 (1.49)

14.10 (1.54)

15.39 (1.48)

21.31 (1.34)

14.85 (1.34)

16.94 (1.34)

20.70 (1.58)

30.11 (1.49)

31.45 (1.60)

22.48 (0.96)

Rubber

10.

21.

24.1

18.

15.

12.

13.

16.

17.

33.

17.

16.

13.

32.

36.

31.

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284

1994-95

1995-96

1996-

97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

manufactureal products

23 (1.77)

74 (2.21)

5 (3.05)

77 (2.52)

88 (1.68)

70 (2.10)

22 (1.41)

32 (1.78)

71 (1.71)

40 (2.09)

655 (1.59)

02 (1.26)

85 (1.06)

53 (1.62)

44 (1.86)

80 (1.37)

Sugar

4.69 (0.59)

0.03

0.02

0.08

10.94 (1.17)

37.87 (4.14)

67.84 (6.53)

31.61 (1.98)

Marine products

0.54 (0.09)

1.59 (0.16)

3.17 (0.40)

2.24 (0.30)

3.35 (0.35)

7.97 (1.32)

10.73 (1.15)

0.41

1.48 (0.13)

0.33

1.48 (0.11)

1.58 (0.08)

6.77 (0.35)

14.81 (0.64)

Fresh vegetables

1.96 (0.34)

5.37 (0.55)

10.34 (1.31)

7.07 (0.95)

3.88 (0.41)

14.25 (2.36)

9.74 (1.04)

16.67 (1.82)

11.23 (1.08)

59.68 (3.74)

68.03 (6.15)

62.35 (4.92)

70.60 (5.39)

105.12 (5.23)

162.52 (8.28)

242.79 (10.45)

Plastic & linoleum products

3.41 (0.59)

3.94 (0.40)

5.37 (0.68)

9.43 (1.26)

7.87 (0.83)

9.83 (1.63)

9.56 (1.02)

18.57 (2.03)

29.98 (2.98)

34.46 (2.16)

35.29 (3.19)

35.52 (2.80)

40.24 (3.07)

34.41 (1.71)

46.30 (2.36)

45.75 (1.97)

Electronic goods

15.28 (2.64)

19.44 (1.98)

16.80 (2.12)

17.70 (2.37)

8.17 (0.86)

10.73 (1.78)

9.24 (0.99)

27.00 (2.95)

27.53 (2.65)

37.88 (2.37)

21.44 (1.93)

30.33 (2.39)

41.29 (3.15)

31.30 (1.56)

32.75 (1.67)

19.18 (0.82)

Contd Next page

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285

1994-95

1995-96

1996-

97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

Poultry & dairy products

3.10 (0.54)

3.89 (0.39)

2.28 (0.29)

3.32 (0.45)

3.37 (0.36)

5.69 (0.94)

9.17 (0.98)

3.36 (0.21)

24.35 (2.20)

16.85 (1.33)

10.61 (0.81)

33.03 (1.64)

12.70 (0.65)

17.80 (0.76)

Alluminium other then products

2.03 (0.35)

1.66 (0.17)

10.22 (1.29)

3.57 (0.48)

4.48 (0.47)

4.41 (0.73)

7.50 (0.80)

11.82 (1.29)

7.88 (0.76)

19.42 (1.22)

26.22 (2.37)

14.79 (1.17)

10.79 (0.82)

10.63 (0.53)

18.61 (0.95)

26.91 (1.16)

Machine tools

1.97 (0.34)

3.00 (0.31)

2.02(0.25)

3.16 (0.42)

1.79 (0.19)

1.26 (0.21)

7.40 (0.79)

7.43 (0.81)

2.67 (0.26)

8.77 (0.55)

Cosmetics/toilets

2.53 (0.43)

6.96 (0.71)

8.42 (1.06)

4.25 (0.57)

2.92 (0.31)

1.99 (0.33)

4.26 (0.45)

Other cereals

0.08

0.31

3.08 (0.33)

12.02 (1.31)

7.78 (0.75)

34.18 (2.14)

33.41 (3.02)

42.22 (3.33)

48.02 (3.66)

42.8 (2.14)

23.99 (1.22)

120.95 (5.20)

Other ores & minerals

9.07 (1.21)

6.35 (0.67)

11.11 (1.83)

11.18 1.19()

19.07 (2.08)

11.39 (1.09)

18.85 ()1.18

17.15 (1.15)

21.49 (1.69)

30.31 (2.31)

32.82 (1.63)

43.28 (2.21)

45.68 (1.96)

Resid 2. 2. 2. 3. 6. 5. 7. 5. 7. 6. 8. 1 1

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286

1994-95

1995-96

1996-

97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

ual chemicals & allied products

48 (0.33)

09 (0.22)

21 0.37()

41 (0.36)

27 (0.68)

53 (0.53)

79 (0.49)

68 (0.51)

35 (0.58)

66 (0.51)

21 (0.41)

2.31 (0.63)

8.09 (0.78)

Petroleum & crude products

12.99 (0.81)

39.40 (3.56)

96.97 (7.65)

70.98 (5.41)

162.59 (0.08)

78.65 (4.01)

60.36 (2.59)

Cotton raw including waste

13.99 (1.88)

2.09 (0.22)

0.04

2.13 (0.23)

0.42

0.17

24.42 (1.53)

5.88 (0.53)

48.57 (3.83)

45.82 (3.49)

273.13 (13.73)

80.22 (4.09)

173.63 (7.47)

Non ferrous metals

2.73 (0.37)

4.99 (0.53)

4.17 (0.69)

6.11 (0.05)

2.73 (0.17)

4.99 (0.45)

4.17 (0.33)

6.11 (0.47)

7.41 (0.36)

7.66 (0.39)

27.57 (1.19)

Other commodities

21.49 1.34()

24.59 (2.22)

19.25 (1.51)

15.65 (1.19)

32.89 (1.63)

68.80 (3.51)

60.06 (2.58)

Source: CMIE. Report – July 2001-Centre for Monitering Indian Economy.

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288

Table-4.26 Composition of India’s Exports to Pakistan

Product wise – Year wise

Year

1994-

95

1995-

96

1996-

97

1997-

98

1998-

99

1999-

00

2000-

01

2001-

02

2002-

03

2003-

04

2004-

05

2005-

06

2006-

07

2007-

08

2008-

09

2009-

10

Total exports Growth Rate

48.74

70.05 (43.72)

153.12 (118.58)

136.41 (-10.9)

99.66 (-26.94)

88.39 (-11.31)

180.12 (103.78)

136.78 (-24.06 )

165.53 (21.02)

283.30 (71.15)

484.41 (70.99)

597.13 (23.27)

907.14 (51.92)

1801 (98.54)

1338.03 (-25.71)

1531.97 (14.49)

Sugar

89.89 (58.71)

35.75 (26.20)

0.09 (0.09)

56.69 (31.47)

42.89 (31.36)

6.40 (3.86)

3.75 (1.32)

Inorganic/orfa Agro chemicals

0.43 (0.88)

3.45 (4.92)

3.08 (2.01)

3.12 (2.28)

2.24 (2.24)

2.42 (2.73)

20.61 (11.44)

6.78 (4.98)

16.33 (9.86)

18.12 (6.39 )

18.7 (3.85)

10.64 (1.78)

8.85

(0.98)

22.64 (1.25)

33.94

(2.54)

42.69 (2.78)

Drugs, pharmas fine chemicals

1.52 (3.12)

3.03 (4.33)

2.86 (1.87)

7.68 (5.63)

14.34 (14.38)

16.69 (18.88)

18.38 (10.20)

18.46 (13.49)

21.95 (13.26)

25.28 (8.92)

57.55 (11.88)

45.32 (5.98)

54.24 (5.98)

103.65 (5.76)

81.22 (6.07)

74.74 (4.88)

Oil meals

14.11 (28.

24.69 (35.25

18.39 (12.

18.95 (13.

24.48 (24.

19.81 (22.

18.29 (10.

4.42 (3.23)

7.44 (4.49)

26.26 (9.2

42.83 (8.8

53.55 (8.9

66.22 (7.2

93.70 (5.2

97.27

(7

87.68 (5.7

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289

Year

1

994-95

1995-

96

1996-

97

1

997-98

1

998-99

1

999-00

2000-

01

2

001-02

2

002-03

2

003-04

2

004-05

2

005-06

2

006-07

2

007-08

2008-

09

2009-

10

95)

) 01)

89)

56)

41)

51)

7) 4) 7) 9) 0) .27)

2)

Plastice/indoleum products

0.11 (0.23)

0.22 (0.31)

0.17 (0.11)

2.52 (1.85)

0.56 (0.56)

2.51 (2.84)

14.03 (7.79)

22.19 (16.22)

27.56 (16.65)

6.78 (2.39)

38.42 (7.93)

45.33 (7.59)

108.10 (11.92)

90.69 (5.04)

48.21

(3.60)

39.55 (2.58)

Dyes & intermediates

6.76 (13.87)

10.44 (14.90)

10.58 (6.91)

9.90 (7.21)

11.06 (11.09)

9.31 (10.54)

8.31 (4.61)

7.40 (5.41)

18.73 (11.65)

69.55 (24.55)

149.52 (30.87)

174.34 (29.19)

244.86 (26.99)

419.68 (23.29)

283.30 (21.12)

261.64 (17.07)

Rubber manufactured products

0.14 (0.29)

0.13 (0.19)

0.21 (0.14)

9.04 (6.62)

6.50 (6.52)

6.83 (7.72)

8.02 (4.45)

8.18 (5.98)

13.61 (8.22)

14.34 (5.06)

28.95 (5.98)

41.75 (6.99)

38.77 (4.27)

47.76 (2.65)

34.87 (2.61)

34.67 (2.26)

Spices

3.38 (6.93)

9.76 (13.93)

11.89 (7.76)

9.54 (6.99)

12.88 (12.92)

11.18 (12.65)

7.70 (4.27)

3.24 (2.36)

3.54 (2.14)

2.36 (0.83)

9.60 (1.98)

8.00 (1.34)

5.25 (0.58)

22.83 (1.27)

40.68

(3.04)

20.95 (1.36)

Tea

1.81 (3.71)

0.32 (0.45)

0.18 (0.12)

6.49 (4.75)

0.90 (6.90)

0.44 (0.49)

7.18 (3.99)

3.03 (2.21)

4.19 (2.53)

6.54 (2.30)

5.65 (1.16)

7.34 (1.13)

17.13 (1.89)

8.05 (0.45)

14.32 (1.07)

19.23 (1.26)

Other cerea

0.20

1.96

1.56

1.21

7.21

28.8

10.9

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290

Year

1

994-95

1995-

96

1996-

97

1

997-98

1

998-99

1

999-00

2000-

01

2

001-02

2

002-03

2

003-04

2

004-05

2

005-06

2

006-07

2

007-08

2008-

09

2009-

10

ls (0.07)

(0.40)

(0.26)

(0.13)

(0.41)

7 (2.16)

6 (0.71)

Iron ore

4.89 (10.03)

5.91 (8.44)

3.60 (2.35)

8.94 (6.55)

6.16 (6.18)

1.64 (1.85)

2.75 (1.53)

4.74 (3.46)

16.38 (9.89)

8.42 (2.97)

Enameh varnishes

2.33 (4.78)

2.29 (3.27)

3.03 (1.98)

2.23 (1.63)

2.96 (2.97)

2.97 (3.36)

2.48 (1.38)

1.70 (1.24)

1.84 (1.11)

2.00 (0.71)

Manufactures of metals

0.99 (2.03)

0.80 (1.14)

1.43 (0.93)

9.67 (7.09)

1.62 (1.63)

1.37 (1.55)

2.00 (1.11)

1.76 (1.29)

2.85 (1.72)

5.89 (2.08)

8.72 (1.80)

11.38 (1.90)

18.19 (2.01)

25.89 (1.44)

30.78

(2.03)

20.69 (1.35)

Machibery & Instruments

1.18 (2.42)

1.08 (1.54)

1.94 (1.27)

1.99 (1.46)

2.15 (2.16)

1.45 (1.64)

1.78 (0.99)

2.92 (2.13)

3.68 (2.22)

2.83 (0.99)

5.41 (1.12)

6.93 (1.16)

13.10 (1.44)

29.40 (1.63)

44.76

(3.35)

29.13 (1.90)

Primary/semi fine iron & steel

0.07 (0.14)

0.32 (0.46)

0.62 (0.40)

1.38 (1.01)

0.79 (0.79)

1.66 (1.89)

1.42 (0.79)

0.28 (0.20)

6.80 (4.10)

4.96 (1.75)

11.43 (2.36)

22.74 (3.81)

15.41 (1.69)

8.54 (0.47)

5.98 (0.45)

8.63 (0.56)

Paper/wood products

1.01 (2.0

1.33(1.89)

1.22 (0.7

1.18 (0.8

1.04 (1.0

0.90 (1.0

0.89 (0.4

0.45 (0.3

1.24 (0.7

3.05 (1.0

2.82 (0.5

7.86 (1.3

4.28 (0.4

6.73 (0.3

7.12 (0.5

6.46 (0.4

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291

Year

1

994-95

1995-

96

1996-

97

1

997-98

1

998-99

1

999-00

2000-

01

2

001-02

2

002-03

2

003-04

2

004-05

2

005-06

2

006-07

2

007-08

2008-

09

2009-

10

7) 9) 6) 4) 2) 9) 3) 5) 8) 8) 2) 7) 7) 3) 2)

Fruits/vegetables seeds

0.83 (1.70)

2.39 (3.41)

1.09 (0.71)

1.25 (0.92)

2.27 (2.28)

1.44 (1.62)

0.81 (0.45)

0.75 (0.55)

1.94 (1.17)

1.13 (0.39)

2.25 (0.46)

4.43 (0.74)

06.01 (0.66)

9.58 (0.53)

5.79 (0.43)

8.68 (0.57)

Pulses

0.50 (0.36)

2.15 (2.16)

0.61 (0.69)

0.75 (0.42)

0.20 (0.42)

5.11 (1.05)

19.20 (3.21)

9.26 (1.02)

34.82 (1.93)

23.75

(1.77)

19.48 (1.27)

RMG of cotton

0.03 (0.02)

0.06 (0.06)

0.05 (0.06)

0.12 (0.06)

0.37 (0.42)

2.29 (1.38)

0.54 (0.19)

Shellac

0.14 (0.28)

0.12 (0.17)

0.04 (0.02)

0.28 (0.21)

0.08 (0.08)

0.57 (0.64)

0.73 (0.41)

0.38 (0.28)

0.58 (0.35)

0.66 (0.23)

Electronic goods

0.43 (0.88)

1.87 (2.67)

0.15 (0.09)

0.16 (0.12)

0.26 (0.26)

0.40 (0.45)

0.56 (0.31)

Guargum meal

0.10 (0.14)

1.45 (0.95)

0.82 (0.60)

0.56 (0.56)

0.11 (0.12)

0.51 (0.28)

0.06 (0.04)

0.09 (0.05)

0.74 (0.26)

Frerro allows

0.03 (0.0

0.18 (0.1

0.18 (0.1

0.22 (0.2

0.50 (0.2

0.65 (0.4

0.31 (0.1

1.89 (0.6

5.23 (1.0

5.74 (0.9

11.27 (1

20.99 (1

24.81 (1

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292

Year

1

994-95

1995-

96

1996-

97

1

997-98

1

998-99

1

999-00

2000-

01

2

001-02

2

002-03

2

003-04

2

004-05

2

005-06

2

006-07

2

007-08

2008-

09

2009-

10

6) 3) 8) 5) 7) 7) 8) 7) 8) 6) .24)

.16)

.85)

Basmatirice

0.01 (0.01)

1.23 (0.43)

Mica

0.40 (0.26)

Non-basmati rice

0.03 (0.02)

0.01 (0.01)

0.42 (0.23)

Glass/glass ware ceramic/cemetn

7.54 (15.47)

0.98 (1.39)

0.53 (0.35)

0.09 (0.07)

0.24 (0.24)

0.42 (0.48)

0.40 (0.22)

0.44 (0.32)

0.50 (1.15)

Alluminium other than product

0.03 (0.06)

0.09 (6.13)

0.05 (0.03)

0.09 (0.07)

0.46 (0.52)

0.32 (0.18)

Cir & coir manufacture

0.26 (0.53)

0.22 (0.31)

0.13 (0.08)

0.24 (0.18)

0.16 (0.16)

0.27 (0.31)

0.27 (0.15)

Fresh vegetables

0.39 (0

0.32 (0.46

0.18 (0

0.13 (0

1.20 (1

0.01 (0

0.26 (0

0.20 (0

0.92 (0

7.74 (1

25.63

32.08

69.60

38.60

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293

Year

1

994-95

1995-

96

1996-

97

1

997-98

1

998-99

1

999-00

2000-

01

2

001-02

2

002-03

2

003-04

2

004-05

2

005-06

2

006-07

2

007-08

2008-

09

2009-

10

.80)

) .12)

.09)

.20)

.01)

.14)

.07)

.19)

.29)

(2.82)

(1.78)

(5.20)

(2.52)

Cosmetics/toilet rich

0.36 (0.74)

0.24 (0.34)

0.40 (0.26)

0.34 (0.25)

0.34 (0.34)

0.26 (0.29)

0.21 (0.12)

0.38 (0.28)

0.72 (0.43)

0.63 (0.22)

0.99 (0.20)

2.18 (0.36)

3.39 (0.37)

4.59 (0.25)

17.80 (1.33)

17.74 (1.16)

Gems & jewellery

0.03 (0.04)

0.01 (0.01)

0.06 (0.04)

0.46 (0.46)

0.02 (0.02)

0.16 (0.08)

Cotton raw including waste

0.02 (0.02)

40.50 (14.29)

10.22 (2.11)

45.33 (7.9)

198.76 (21.91)

445.48 (24.73)

83.20

(6.21)

228.61 (14.92)

Cotton yarn fabrics, made ups

0.30 (0.22)

0.51 (0.51)

0.71 (0.81)

0.11 (0.06)

0.85 (0.62)

1.18 (0.71)

9.75 (3.44)

6.56 (1.35)

16.09 (2.69)

8.38 (0.92)

10.31 (0.57)

11.07

(0.82)

10.62 (0.69)

Residual chemicals & allied products

0.51 (1.84)

1.09 (1.09)

1.10 (1.24)

2.83 (1.57)

2.78 (2.03)

3.58 (2.16)

2.69 (0.95)

4.20 (0.87)

6.11 (1.02)

9.34 (1.03)

19.94 (1.03)

26.23

(1.96)

17.70 (1.15)

Processed vegetables

0.01

0.01 (0

0.48 (0

0.01 (0

0.47 (0

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294

Year

1

994-95

1995-

96

1996-

97

1

997-98

1

998-99

1

999-00

2000-

01

2

001-02

2

002-03

2

003-04

2

004-05

2

005-06

2

006-07

2

007-08

2008-

09

2009-

10

.01)

.35)

.01)

.17)

Other ores minerals

0.58 (0.43)

0.64 (0.64)

2.28 (2.58)

0.02 (0.01)

1.02 (0.76)

1.44 (0.87)

1.37 (0.48)

Iron & stell bar/rods

0.43 (0.31)

1.66 (1.67)

0.27 (0.31)

0.15 (0.08)

0.15 (0.11 )

0.26 (0.16)

0.42 (0.82)

0.82 (0.17)

4.12 (0.69)

3.38 (0.37)

16.70 (0.92)

13.70

(1.02)

7.28 (0.48)

Man made yarn fabrics, made ups

0.16 (0.06)

0.11 (0.02)

1.87 (0.31)

1.22 (0.13)

31.01 (1.72)

194.37 (14.52)

431.15 (39.14)

Other commodities

17.22 (6.07)

6.36 (1.31)

15.84 (2.65)

10.88 (1.19)

16.84 (0.94)

21.81 (1.63)

28.50 (1.86)

Non-ferrpis metals

0.07 (0.02)

0.36 (0.07)

0.61 (0.10)

8.61 (0.95)

16.64 (0.92)

9.30 (0.69)

14.24 (0.93)

Ground nuts

0.09 (0.02)

1.24 (0.21)

2.31 (0.25)

0.78 (0.04)

2.21 (0.16)

13.57 (0.8

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295

Year

1

994-95

1995-

96

1996-

97

1

997-98

1

998-99

1

999-00

2000-

01

2

001-02

2

002-03

2

003-04

2

004-05

2

005-06

2

006-07

2

007-08

2008-

09

2009-

10

8) Miscellanious processed items

0.07 (0.02)

0.64 (0.13)

2.88 (0.48)

0.46 (0.05)

0.43 (0.02)

9.56 (0.71)

7.60 (0.49)

Man made staple fibre

0.06 (0.02)

0.35 (0.07)

5.36 (0.89)

1.55 (0.17)

1.21 (0.06)

3.93 (0.29)

7.07 (0.46)

Petroleum & crude products

0.02 (0.02)

59.46 (12.27)

21.73 (3.64)

16.38 (1.81)

252.83 (14.04)

69.58 (5.20)

7.81 (0.50)

Source: CMIE: Report, compiled from various issues.