- Over the last ten years, India’s merchandise trade (on customs basis) increased manifold from US$ 195.1 billion in 2004-05 to US$ 764.6 billion in 2013-14 helping India’s share in global exports and imports improve from 0.8% and 1.0% respectively in 2004 to 1.7% and 2.5% in 2013. Its ranking amongst the leading exporters and importers improved from 30 and 23 in 2004 to 19 and 12 respectively in 2013.
- In 2014-15 (April-January), imports grew by 2.2% to US$ 383.4 billion as compared to US$ 375.3 billion in 2013-14 (April-January). The value of petroleum, oil, and lubricants (POL) imports, which accounted for 36.6% of India’s total imports in 2013-14, declined by 7.9% in 2014-15 (April- January) as a result of decline in the price of international crude petroleum products.
- The share of gold and silver imports in India’s total imports was 11.4% in 2012- 13 and 7.4% in 2013-14.
- Manufactured goods constituted the bulk of exports—over 63% in recent years— followed by crude and petroleum products (including coal) with 20% share and agriculture and allied products with 13.7% share. After crossing US $ 300 billion in 2011- 12, there has been significant deceleration in growth rates of exports which is somewhat a global phenomenon as global trade volumes have not picked up significantly since the 2011 Eurozone crisis.
- Growth in exports of petroleum and agriculture and allied products which were in positive territory for the last four years turned negative in 2014-15 (April-January). During 2014-15 (April-January), some sectors like transport equipment; machinery and instruments; manufactures of metals; and ready-made garments registered positive growth in exports.
- Shares of India’s exports to Asia and Africa have increased from 47.9% and 6.7% respectively in 2004-05 to 49.4% and 9.9% respectively in 2013-14.
- In 2014-15 (April-January), trade deficit increased marginally by 1.6% to US$ 118.4 billion as against US$ 116.5 billion in 2013-14 (April- January).
- The widening of the current account deficit (CAD) in 2011-12 and 2012-13 owed to elevated levels of imports and its financing had implications in terms of larger outgo as investment income in the invisibles account.
- With net capital flows remaining higher than the CAD, there was net accretion of US$ 18.1 billion to India’s foreign exchange reserves (on BoP basis) in H1 of 2014- 15 as against a drawdown of US$ 10.7 billion in H1 of 2013-14.
- Among the major economies with a CAD, India is the second largest foreign exchange reserve holder after Brazil. India’s foreign exchange reserves at US$ 2 billion as on 6 February 2015 mainly comprised foreign currency assets amounting to US$ 305.0 billion, accounting for about 92.5% of the total.
- India’s external debt stock increased by US$ 13.7 billion (3.1%) to US$ 455.9 billion at end-September 2014 over the end-March 2014 level.