TRADE STATISTICS

1)Soham Majumder(MD2121)

2)Somnath Bera(MD2122)

3)Soumyadipta Ghosh(MD2123)

4)Spandan Ghoshal(MD2124)

5)Sreejit Roy(MD2125)
Introduction to Trade Statistics
Trade statistics are a key source of information for governments, businesses, and analysts to understand the
patterns and trends in international trade. These statistics can provide insight into the economic performance
of countries, the competitiveness of industries, and the demand for goods and services.

To collect trade statistics, governments and international organizations use various methods and sources of
data. Some of the most common methods include customs declarations, import and export statistics, and
surveys of businesses.
Administrative Sources

 The customs data are the basic data source for the weights and the unit value approach of compiling the
import and export price indices for goods. The customs data are used to decompose the value flows in foreign
trade statistics into price and quantity factors as well as providing value weights for compiling indices as
weighted averages of price relatives.

 Many countries use an international transactions recording system (ITRS) to collect data for their balance
of payments statistics. In principle the ITRS covers both goods and services trade, but is in practice mostly
used for the compilation of data on trade in services. However, it could be primarily used as a source for
compiling weights for imports and exports indices mainly for services.

Other administrative data: Exports and imports data for services transactions typically are not collected by
customs sources. Services data may be collected by several agencies that focus on specific industries such as
transportation or tourism.
Merchandise Trade
Commercial Services
Direction of Trade Statistics
 Overall, trade statistics are a valuable source of information for governments,

businesses, and analysts to understand the patterns and trends in international trade. By

using standardized systems like the HS codes and collecting data from various sources,

such as customs declarations, import and export statistics, and surveys of businesses,

governments and international organizations can ensure that trade statistics are reliable

and comparable across countries.

India top Imports and Exports(merchandise)
 Export Statistics of India

India is a major exporter of a variety of goods, including textiles, engineering goods, and petroleum products.

[F.Y – 2020/21
Source – india-briefing.com]
 Top exports

The top exports of India are:

 Refined petroleum,

 Packaged Medicaments,

 Diamonds,

 Rice,

 Jewellery,

exporting mostly to United States, China, UAE, Hong Kong, and Germany.
 Import Statistics of India
In addition to exporting a wide range of goods, India also imports a variety of goods, including capital
goods, crude oil, and electronic goods.

[F.Y – 2021
Source –statista.com]
 Top imports

The top imports of India are:

 Crude petroleum (mainly from Middle East),

 Gold,

 Coal Briquettes,

 Diamonds,

 Petroleum Gas,

importing mostly from United States, China, UAE, Saudi Arabia, and Iraq.
Import and Export of Petroleum

 India is one of the largest importers of crude oil but at the same time it is also one of the biggest
exporter(10th) of refined oil.

 Export price of refined oil is determined by the global supply/demand.

 Price of domestic refined oil is higher than the export price largely due to more than 100% taxes
levied by the Center and states.
Trade Balance in India
 Trade Balance

A country's trade balance is the difference between the value of its

exports and the value of its imports. A trade surplus indicates that a
country is exporting more than it is importing, while a trade deficit
indicates that a country is importing more than it is exporting.
 Trade Balance in India(Statistics)
Factors such as global demand for India's exports and fluctuations in commodity prices have had an impact on
the country's trade balance. India has a larger trade deficit than China but a smaller trade deficit than the United
States.

*www.macrotrends.net
India’s trade in Services
 India’s Trade in Services
 India's top export markets for commercial services include the United States,
the United Kingdom, the United Arab Emirates, Singapore, and Canada. Its
main exports in the sector include computer and information services, travel
and tourism, transportation and storage services, and financial services.
 India's top import markets for commercial services include the United States,
the United Kingdom, Singapore, Germany, and France. Its main imports in the
sector include computer and information services, travel and tourism, and
financial services.
 India’s Trade in Services
 India has a significant and growing trade in services sector. According to data
from the World Trade Organization (WTO), India's exports of commercial
services increased from $28.3 billion in 2005 to $217.7 billion in 2019, while its
imports of commercial services increased from $23.2 billion in 2005 to $183.8
billion in 2019.
 The Indian government has taken a number of steps to promote the growth and
development of the country’s trade in services sector. These include liberalizing
the foreign investment regime in various service sectors, promoting the
development of infrastructure and logistics, and encouraging the development
of new technologies and innovations in the sector. The government has also
sought to negotiate trade agreements with other countries and regions to
facilitate the flow of trade in services between India and other countries.
India’s Top 10 Major Partners
 Trade Agreements
1. The South Asian Free Trade Area (SAFTA) - The South Asian Free Trade Area
(SAFTA) is the free trade arrangement of the South Asian Association for
Regional Cooperation (SAARC). The agreement came into force in 2006,
succeeding the 1993 SAARC Preferential Trading Arrangement. SAFTA signatory
countries are Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan
and Sri Lanka.
 The ASEAN–India Free Trade Area (AIFTA) is a free trade area among the ten
member states of the Association of Southeast Asian Nations (ASEAN) and the
Republic of India. In the financial year 2017–18, Indo-ASEAN bilateral trade grew
by almost 14%.
 Trade Agreements
 Comprehensive Economic Partnership Agreement (CEPA) - This is a free trade
agreement between India and Japan that aims to reduce tariffs and other
barriers to trade between the two countries, and to promote economic
cooperation and integration. The comprehensive trade pact between India and
Japan aims to nearly double bilateral trade to $25 billion by 2014. Japan exports
mainly machinery, electronics, iron and steel products to India, while India
exports mainly oil, iron ore and chemical products to Japan.
 The India-South Korea Comprehensive Economic Partnership Agreement (CEPA) -
This is a free trade agreement between India and South Korea that aims to
reduce tariffs and other barriers to trade between the two countries, and to
promote economic cooperation and integration.
 Trade Agreements
 Besides the above there are few examples of trade agreements those are
following:
 India-Australia Comprehensive Economic Cooperation Agreement (CECA)
 India-Canada Comprehensive Economic Partnership Agreement (CEPA)
 
 The India-United States Trade Agreement (IUSTA)
 India-European Union Free Trade Agreement (FTA)
The impact of the Covid-19 Pandemic and Ukraine Russia
 
conflict on International Trade in India
 Impact of COVID-19 on International Trade in India

•The export of goods and services accounted for 19.74% and import accounted for 23.64 % of
Gross Domestic Product (GDP) of India during the pre-COVID- 19 era.
•The advent of COVID- 19 brought disruption in the global import-export market and curtailed free
trade between countries.
•India, a developing economy in Asia, has been increasing its role in international trade and the
global value chain, according to the World Trade Statistical Review 2019.
•But the impact of COVID-19 on trade in India is estimated to be 348 million dollars and India falls
under the category of 15 most-affected economies of the world as per the United Nations Report.
•According to data from the Department of Commerce, India's total merchandise exports declined
by 16.3% in 2020 compared to the previous year.
 Impact of COVID-19 on International Trade in India

 This was due to the decline in demand for many goods and services as a result of the pandemic and
the lockdown measures implemented to contain the spread of the virus.

 However, India's total merchandise imports also declined by 23.5% in 2020 compared to the
previous year, due in part to the decline in global demand and the disruptions to supply chains.

 India's trade deficit, which is the difference between exports and imports, also narrowed in 2020.
The country's trade deficit was $137.8 billion in 2020, compared to $178.4 billion in 2019.
 Impact of COVID-19 on International Trade in India

*source EXIM Analytics Dashboard

 Impact of COVID-19 on International Trade in India

Some of the goods that were particularly affected include:

 Industrial and consumer products: Demand for many industrial and consumer products declined due to the economic
downturn and the disruption to supply chains caused by the pandemic. This included products such as automobiles,
electronics, and textiles.

 Agricultural products: The pandemic disrupted the transportation of agricultural products and led to a decline in
demand for some products due to the economic downturn. This included products such as grains, fruits, and vegetables.

 Energy products: The decline in global economic activity and the fall in oil prices due to the pandemic led to a decline
in demand for energy products such as oil and natural gas.

 Services: Many service sectors were also affected by the pandemic, including the tourism, travel, and hospitality
industries, which saw a decline in demand due to the restrictions on travel and the closure of borders.
Impact of COVID-19 on International Trade in India

Export/Import of Industrial/Consumer Products

(Electronics, Automobiles & Textiles)
 Impact of COVID-19 on International Trade in India
 Since International trade has curtailed, its great time to encourage domestic products and producers and
boost domestic production, by implementing the theory of protectionism.
 The theory of Protectionism aims to increase exports and decrease imports by imposing various kinds of
trade barriers so that the domestic industries can get a fair chance to fight with international products and
services.
 India was a protectionist country until the 1990s. But in the late 20th century India opened its market for
international trade as a part of the Liberalisation, Privatisation, and Globalisation (LPG) model.
 Several steps are taken in this regard i.e. 
 The boycott of Chinese goods and the banning of some Chinese mobile applications.
 On May 11, 2020, the idea of Atma Nirbhar Bharat was announced by our Hon'ble Prime Minister. The vision aims
to increase India's production capacity for goods and is not just about 'Make in India' but also about production for
the world.
Impact of Russia-Ukraine conflict on Indian trade
 On 24 February 2022, Russia invaded Ukraine in a major escalation of the Russo-Ukrainian War, which

began in 2014.

 Trade with Russia and Ukraine is a small portion of India’s overall cross-border trade. However,

specific commodities traded between the countries are important.

 84% per cent of India’s sunflower oil imports came from Ukraine, while 13 per cent of India’s tea

exports went to Russia.

Impact of Russia-Ukraine conflict on Indian trade

Export/Import of Tea in Russia which dropped during the

beginning of the invasion
Impact of Russia-Ukraine conflict on Indian trade

Export/Import of Vegetable Oils in/from Ukraine

 Impact of Russia-Ukraine conflict on Indian trade
 Joined together, Russia and Ukraine have a 25 per cent offer in the worldwide food market. Ukraine is
one of the world's top wheat exporters.

  A prohibition on cargo from Russia likewise implies more open doors for Indian exporters of nuts,
confectionary, leafy foods. As the cost of these products are arriving at new highs, it opens up new
business sectors for Indian farmers and exchanges.

 Infact export demand for Indian wheat, corn, and spices has seen a significant rise after Russia
invaded Ukraine.
Impact of Russia-Ukraine conflict on Indian trade

Export of Wheat from India

Impact of Russia-Ukraine conflict on Indian trade

Import/Export from/in Russia of all Tradable goods

Challenges faced by Indian trade
 Despite its strong position in global trade, India faces a number of challenges

that can impact its ability to trade effectively.

 In the following slides, we will take a closer look at some of the challenges

facing Indian trade.

• Infrastructural challenges: India’s large and diverse geography, combined with

infrastructural inefficiencies make it difficult to develop and maintain a reliable

transportation and logistics network. This leads to delays and higher costs for moving

goods around the country. For example, the average turnaround time (time between

arrival and departure of a vessel) at Indian ports is around 60 hours, compared to 12

hours of China. Thus, rental costs increase, deliveries are delayed, resulting in

increase of the cost of the end product. This also makes ‘made in India’ products less

competitive in the global markets.

Skilled labour shortages: Although India has a large and growing population, there are

shortages of skilled labour in certain sectors, which makes it difficult for businesses to

find the workers they need. As an economy develops, further emphasis is put on

specialised sectors. Otherwise, the economy will stagnate. As India moves forward,

more emphasis should be put on training such skilled labours.

Competition from other countries: India faces competition from other countries in many

sectors, including manufacturing, services, and agriculture. This can make it difficult for

Indian businesses to compete on a global scale. One sector India has figured out is IT. The

problem is, however, India ambitions to move to tertiary sector directly from primary

sector. This contradicts the tried and tested path through manufacturing (as followed by

Britain, China, or, more recently, Bangladesh).

Limited access to finance: Many small and medium-sized businesses in India

struggle to access the financing they need to grow and expand. This can limit

their ability to invest in new technologies and equipment, and to take advantage

of new opportunities.
Regulation and bureaucracy: India has a complex regulatory environment, which can

make it difficult for businesses to navigate and comply with the necessary rules and

regulations. This can lead to delays and added costs for businesses.
Thank You