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EU-India Trade: On a Growth Curve
Trade between the EU and India is on the rise. The EU is India's largest trading partner accounting for 23.72 per cent of India's exports and 16.69 per cent of total Indian imports. ICFDC.com takes a look at how India-EU trade has grown.
The EU is India's largest trading partner, accounting for 23.72 per
cent of India's exports and 16.69 per cent of total Indian imports in
the year 2004-05. Since 1991, trade between the EU and India has seen
remarkable growth and this has been sustained in the 1990s and in the
initial years of the new millennium. The year 2004 saw an increase in
EU-India trade of 17 per cent, from €28.4 billion in 2003 to
€33.2 billion. EU exports to India increased to €17 billion in 2004
from €14.5 billion in 2003, an impressive growth rate of 17.8 per cent
against a growth rate of just 1.7 per cent in 2003. EU imports also
increased from €13.9 billion in 2004 to €16.2 billion in 2004,
registering a growth of 16.1 per cent.
During January-October 2004, major EU imports from India included
textiles and clothing (28.18 per cent), engineering goods (12.09 per
cent), gems and jewelry (11.07 per cent), leather and leather goods
(9.38 per cent), chemical and allied products (8.87 per cent), metal
and metal products (8.14 per cent), agriculture and allied products
(6.58 per cent) and transport equipment (4.35 per cent).
During the same period, that is January-October 2004, Indian imported
from the EU the following items: engineering goods (35.56 per cent),
gems and jewelry (33.3 per cent), chemicals and allied products (8.31
per cent), metal and metal products (7.61 per cent), agriculture and
allied products (9 per cent) and transport equipment (4.29 per cent).
The following table indicates the trade trends between EU and India
over a four year period from 2001 to 2004.
EU-India Trade
Year
|
Imports
|
% change
|
Share of total EU Imports
|
Exports
|
% change
|
Share of total EU Exports
|
Balance
|
Imports+Exports
|
2000
|
12802
|
-
|
1.29
|
13626
|
-
|
1.59
|
824
|
26427
|
2001
|
13405
|
4.7
|
1.36
|
12894
|
-5.4
|
1.44
|
-512
|
26299
|
2002
|
13594
|
1.4
|
1.44
|
14271
|
10.7
|
1.58
|
676
|
27865
|
2003
|
13976
|
2.8
|
1.49
|
14516
|
1.7
|
1.65
|
540
|
28492
|
2004
|
16223
|
16.1
|
1.58
|
17013
|
17.2
|
1.77
|
790
|
33236
|
Source: Eurostat
(figures in Million Euros)
India ranks 14th among EU's major trading partners on the exports
front. EU's exports to India touched €17013 million in 2004 which was
1.8 per cent of the total share of EU's exports compared to
€14235 million which was 1.45 per cent of total share of EU's exports.
USA is the largest trading partner in terms of EU exports, with a share
of 24.3 per cent of all EU exports, amounting to €223912 million in
2004. The other major partners include Switzerland (€74960 million),
which is 7.79 per cent share of all EU exports. China has a 5 per cent
share with total EU exports to China amounting to €48039 million. This
is nearly three times of EU exports to India.
On the imports front, EU's major partners are USA (€157443 million),
which is 15.3 per cent of all EU imports. China is at the second spot
with the EU importing goods valued at €126737 million, or 12.3 per cent
share of all EU imports. India is ranked at No. 13 with EU importing
goods from India valued at 16233 million, just 1.6 share of total EU
imports.
The following table indicates India's trade - exports as well as
imports - with some of its major trading partners vis-a-vis EU. The
trends are for two years, 2003-04 and 2004-05 (April - January). The
table indicates both percentage changes and share in India's exports
and imports with its trading partners.
India's Exports (US $ Million)
|
2004-05
|
% change
|
%share
|
2003-04
|
% change
|
% share
|
EU
|
13305.5
|
22.73
|
21.73
|
10841.6
|
15.95
|
21.02
|
USA
|
10949.5
|
20.7
|
17.29
|
9072
|
-0.25
|
18.19
|
UAE
|
5583.1
|
43.75
|
8.82
|
3883.8
|
42.87
|
7.79
|
China
|
3442.9
|
57.8
|
5.44
|
2181.8
|
47.07
|
4.37
|
Hong Kong
|
2836.1
|
12.76
|
4.48
|
2515.2
|
25.3
|
5.04
|
India's Total Exports
|
63312.6
|
26.92
|
100
|
49883.1
|
16.35
|
100
|
India's Imports (US $ Million)
|
2004-05
|
% change
|
% share
|
2003-04
|
% change
|
% share
|
EU
|
14211.1
|
21.07
|
16.39
|
11738
|
14.04
|
18.79
|
China
|
5491.6
|
70.7
|
6.33
|
3217.1
|
38.42
|
5.15
|
USA
|
5077.9
|
26.42
|
5.86
|
4016.7
|
14.6
|
6.43
|
Switzerland
|
4672.1
|
69.33
|
5.39
|
2759.2
|
42.92
|
4.42
|
Australia
|
3014.4
|
51.22
|
3.48
|
1993.4
|
72.55
|
3.19
|
South Korea
|
2632.3
|
31.91
|
3.04
|
1995.5
|
85.9
|
3.19
|
Japan
|
2425.5
|
16.72
|
2.80
|
2078.1
|
34.64
|
3.33
|
India's Total Imports
|
86701.3
|
38.76
|
100
|
62485
|
38.76
|
100
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[icfdc.com
,4 July 2005]
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