MICRO ECONOMICS

(STUDY ON INDIAS TRADE AND MARKET ANALYSIS)

General overview of the Trade scenario in India:

India Trade Last Previous Highest Lowest Unit

Exports 24014.62 24635.09 30541.44 59.01 USD Million

Imports 37856.30 37884.28 45281.90 117.40 USD Million

Capital Flows 23.54 -19.06 766.97 -271.47 USD Million

EXPORTS (Market Share & Competitor Analysis):

Exports from India increased 8.32 percent year-on-year to 24014.62 USD Million in May of 2017. Exports
in India averaged 4877.72 USD Million from 1957 until 2017, reaching an all time high of 30541.44 USD
Million in March of 2013.
India is one if the biggest refined product exporters in Asia with almost 20% accounted for by petroleum.
Other exports are as shown in the diagram:

Export items as a percentage of total export

13% 20%

10% Petroleum
Engineering goods
Chemical and Pharmaceutical products
10% 19% Gems and Jewellery
Agricultural
Textile

14% Others
14%

India's export partners (percentage of total export)

12%
UAE
12% USA
Singapore
4% China
59% Hong Kong
5% Netherlands
Others
4% 4%
10 Yr Trend: (in USD millions)

80,000.00

70,000.00

60,000.00 Organic Chemicals

Pharmaceuticals
50,000.00
Mineral Fuels & Oils
40,000.00
Jewellery & Precious stones
30,000.00 Machinery, nuclear reactors, boilers
20,000.00 Vehicles

10,000.00 Plastics

0.00
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

Major Competitors in the export market:

Export Item Market leaders

1. Organic Chemicals USA, Germany, China, Japan, Netherlands
2. Pharmaceutical Germany, Switzerland, USA, Belgium, UK
3. Mineral Fuels, Mineral Oils and UAE, Singapore, USA, Kenya, Turkey, Brazil
products
4. Pearls, Precious and semi-precious China, Switzerland, USA, Italy, Hong Kong, UK
stones
5. Machines China, Germany, Japan
6. Vehicles Germany, Japan, USA, Canada, UK, South
Korea

IMPORTS (Market Share & Competitor Analysis):

Imports in India fell to 37856.30 USD Million from 37884.28 USD Million and Exports went down to
24014.62 USD Million from 24635.09 USD Million in Apr 2017.
India is heavily dependent on import in crude oil accounting for about 34% of the total inbound. Other
imports are shown in the figure

India's Import partners (percentage of total import)

China
11% 7% UAE
8%
Saudi Arabia
Switzerland
7% USA
Others
62%
5%
.
 Import items as a percentage of total import
Crude Oil
Gold and Silver
32%
34% Machinery
Electronics

5% Pearls, precious and semi precious stones

Others
12%
7%
10%

10 Yr Trend: (in USD millions)

2,00,000.00
1,80,000.00
1,60,000.00
Organic Chemicals
1,40,000.00
Pharmaceuticals
1,20,000.00
Mineral Fuels & Oils
1,00,000.00
Jewellery & Precious stones
80,000.00
Machinery, nuclear reactors, boilers
60,000.00
Electronics
40,000.00
Plastics
20,000.00
0.00
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

Balance of Trade:
Indias balance of trade value is ranked the lowest in the world at around -USD 13841.70
10 Yr Trend: (in USD millions)

1,40,000.00

1,20,000.00 Organic Chemicals

1,00,000.00 Pharmaceuticals
Mineral Fuels & Oils
80,000.00
Jewellery & Precious stones
60,000.00
Machinery, nuclear reactors, boilers
40,000.00
Electronics
20,000.00 Vehicles
0.00 Plastics
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
-20,000.00

CHALLENGES: (Import & Export)

Oil:
1. Import: Rising Oil prices and increasing demand.
2. Export: Multilateral trade agreements signed among various nations that India is not a part of

Jewellery:
3. Dependence on imports
4. Lack of financial support
5. Fluctuation in exchange rates
6. Cheaper Competition (China)
7. Changing customer trends

Plastics:
1. Addressing Environmental Myths
2. Technology needs
3. Price pressure

Organic Chemicals:
1. India's high inflation rate and rising prices
2. Weakening business and consumer sentiment
3. Complicated access to lending
4. Lack of adequate facilities at ports and railways
5. R&D Infrastructure and funding
6. Low capacity utilisation
7. Shortage of skilled workforce

Pharmaceuticals:
1. Compliance issues and good manufacturing practices
2. Highly fragmented industry
3. Low margin of profits due to government pricing policies Drug Price Control Order
4. Low input for research and development due to pricing norms
5. Stronger IP regulations
Machinery:
1. Capital
2. R&D short fall
3. Technology gap between leader and developing country
4. Supply-chain Issues
5. Payments and taxation Issue
6. Procurement Issues

Vehicles:
1. Poor road infrastructure
2. Shortage of localisation opportunities
3. High tariff rates on import
4. Government policies towards foreign investments and joint ventures.

BIBLIOGRAPHY:

http://www.trademap.org

https://swarajyamag.com/economy/challenging-times-for-indias-exports

http://atlas.media.mit.edu/en/visualize/tree_map/hs92/import/ind/show/2709/2011/

http://commerce.gov.in/EIDB.aspx

https://tradingeconomics.com/india/imports-by-category

By ,

Karan Muralidharan , Karthik Mehta, Karan Kapur, Mridul Nagar & Chirag Malani