TRADE ANALYSIS OF KEY STATISTICAL DATA OF INDIA Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Trade Analysis of Key Statistical Data of India Case Study Solution

Overview of Trading in India:

In this discussion, I would explain the overall exports and imports of India and how they affect the economy. The foreign exports in India have accounted for around 48.8% in the GDP during the year 2015. India exports are significantly increasing during the past six years but there is also an overall rise in the imports due to the scarcity of resources and technology.

The economic conditions of India are that the CPI (Consumer Price Index) has been reported around 131.4 and is increasing from the past few years. The inflation rate of India is 2.18% in the year 2017 which has decreased from last year. The GDP of India has decreased during the year 2016 – 2017 to 7.11% and the major reason isdue to heavy imports. Overall comparing the economic conditions of India from the past years, it is said that the country’s economy has been on a rise and is going at a steady pace due to improvement in technology, imports and exports.

Exports

The exports from India during the year 2017 increased by 3.9% mainly due to the sales of engineering products, petroleum and other organic and inorganic chemicals. The overall value of the goods which had been shipped in the year 2016 was worth $ 261 billion and the top 10 exports of India accounted for 59.4%. The overall exports of India are 289,565 million whereas the number of total products is 4,460 and the number of partners for trading is 221.Below is the following information regarding exports of India. The top five exporting products for India are:

Raw Materials
Intermediate goods
Consumer Goods
Capital Goods

Key Trading Partner

The total number of partners for exporting its products are 221 but the top 5 main exporting countries of India are:

United States
United Arab Emirates
Hong Kong
China
United Kingdom

These are the main countries with which India deals for exporting its goods and is able to generate huge revenue.

United States:The United States is one of the major exporting countries for India, as it has conducted an overall trading of $37,171 million during the years 2015 – 2017. In the year 2016, India was considered as the 18^th largest exporter of theU.S. Most of the exports were related to agricultural products as India is considered as the 21^st largest exporter of agricultural goods. It shipped around $1.3 billion worth goods to the US in 2016. The top products and services which are shipped to India are jewelry, precious stones ($ 7.0 billion), machinery ($2.0 billion), electrical machinery and minerals each worth $1.2 billion and other products.

United Arab Emirates: UAE is also the largest importer of Indian goods as the trade between these countries began years back with cotton and dry fruits. It is estimated that UAE would become the largest exporter of goods in the year 2030. UAE has also suggested investing in India for creating better growth which would lead to better exports to UAE. The overall exports of goods and services conducted by India in UAE are around $35,781 million. Most of the products which are exported to UAE are the agricultural goods ($1.4 billion), precious stones and jewelry ($1.2 billion), intermediate goods ($1.0 billion) and textiles and clothing ($4 million).

Hong Kong:Hong Kong is ranked among the top 3 exporters of Indian goods and services and the total worth of the products which have been shipped to the country is $12,147 million. The products and services shipped to Hong Kong are jewelry and precious stones ($15.4 billion), raw hides and skins ($22.5 billion), minerals and oil ($20.8 billion) and electronic equipment ($10.3 billion). In creating better relations Hong Kong and India have established companies in other countries and also are sharing knowledge regarding technology.

China:The 4^th largest exporter of India is China. The overall exports of goods and services to China are worth $9,577 million. The top products which are shipped to China are the raw materials ($1.6 million), intermediate goods ($6 million), textiles and clothing ($2.2 million), metals ($1.6 million) and other products. On the other hand,China’s exports in India had been fairly low in the past years but due to increasing steel consumption, India has received a major boost inChina’sexports.

United Kingdom:The United Kingdom is the 5^th largest importer of Indian goods and services. During the year 2015, India had exported goods worth $8,891 million to the UK. The main products which are shipped to the UKare the agricultural goods worth $5.6 million, textiles, and clothes of $2.4 million, intermediate goods of $1.3 million and capital goods of$1.2 million. However,due to Brexit in which the UK exited the European Union has deeply affected the exports of India. The exit of UK has been causing unfavorable exchange rate movements.

Importing:

The exports of India during the year 2017 have shown to be significantly increasing comparatively to the past years but also the imports of India are also found to be increasing. In the year 2015, the total imported products and services which had been shipped to India were around $390,745 million. The total number of products which are imported by India is about 4313 and the number of partners from which India imports are 215. The reason for the imports to be high compared to exports is because of scarcity of resources in the country. The top five importing products for India are: