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Import Summary ReportIndiaApril 2015
India
1
DisclaimerThe Import Summary Report has been prepared by Saudi Exports (Saudi Export Development Authority) as a part of its continuous publication on countries. The purpose of this study is to provide a high-level view of global import based on available public information. Its analysis, perceptions and anticipations are subject to personal judgment. Saudi Exports is not liable for any consequences caused by the understanding and interpretation of any part of this report. In general, the information in the report presents a broad view of the imports to the country. Saudi exporters are encouraged to carry out further studies for any potential opportunities identified in this report.
ContentsDisclaimer
1. Imports Overview
2. Non-oil Imports
3. Industry Import Profiles
3.1 Consumer Products
3.2 Machine Equipment and Parts
3.3 Chemicals and Petrochemicals
3.4 Building Materials
3.5 Textiles
3.6 Packaging
Appendix
3
4
5
5
6
8
9
10
11
13
2
For comments and queries please contact:
Telephone: +966 11 874 2000Fax: +966 11 874 2002Email: [email protected] of Saudi ArabiaP.O. Box 75169, Riyadh 11578
Saudi Export Development Authoritywww.saudiexports.sa
• India’s GDP has grown at 7.5% annually from 2009 to 2013. This high growth has led to a steady rise in domestic consumption, leading to growth in India’s imports by 15% over the past 5 years.
• While India primarily imports crude oil, which constitute 40% of total imports, it also imports non-oil products primarily in consumer products, machine equipment, building materials, chemicals & petrochemicals, textiles, and packaging products categories in good quantity.
• Though KSA currently occupies a small portion of India’s non-oil import segment, the imports from Kingdom has seen a rapid growth of 25% in past few years.
This report looks into the India’s non-oil import market vis-à-vis Kingdom’s share in the non-oil imports. It also outlines the import potentials in certain industries such as consumer products, building materials, machine equipment, textile, packaging and petrochemicals.Import of services by India are not part of this Import Summary Report.
Summary
3
1. Imports Overview
According to International Monetary Fund1, India is the 10th largest economy in the world and 3rd largest in Asia after China and Japan. Between 2009 and 2013, the country’s real Gross Domestic Product (GDP) grew at a cumulative annual growth rate (CAGR) of 7.5% to 5.47 trillion SAR2. India ranks second in terms of economic growth among the major emerging markets of Brazil, Russia, India, China, and South Africa (BRICS). India is the 10th largest importer in the world3. Figure 1 shows distribution of India’s imports in the last 5 years. Petroleum products (crude oil, chemicals and petrochemicals) have been India’s biggest import items for a long time. In 2013, oil accounted for 40% of the total imports rising from 31% in 2009. Chemicals and Petrochemicals have also seen a similar rise whereas their contribution has remained steady at 8%.
Figure 2 shows country wise breakup of India’s import portfolio. Among its partner countries, China is the biggest contributor to Indian imports, supplying 11% of total imported goods, primarily in building materials, chemicals & petrochemicals, machine equipment, and consumer products segments. China is followed by Saudi Arabia in total imports. The Kingdom accounts for 8% of the total imported products, which are mainly made of Crude oil, and Chemicals and Petrochemicals. India also has several trade agreements (refer to Appendix 1) with many of the surrounding countries (including China, Sri Lanka, Bangladesh etc.), developing and least developed countries that grants them with preferential tariff treatments.
1 Report for Selected Countries and Subjects, World Economic Outlook, IMF, October 20142 GDP (constant 2005 US$), The World Bank3 WTO Press Release 2013, World Trade Organization, 10th April 20134 Trade Map Database, International Trade Center
2009 2010 2011 2012 2013310
83
606
416
107
790
590
132
1,012999
Oil OthersChemicals & Petrochemicals
56% Others
11% China
8% Saudi Arabia
7% United Arab Emirates
5% Switzerland
5% USA
4% Iraq
4% Kuwait
Figure 1: Import4 growth in India
Figure 2: Total Imports to India by country (2013)
100% = 1,747 billion SAR
in billion SAR
1,313
1,7341,834
1,748
696
139
999 919
691
138
56%
4%4%
5%
5%
7%
8%
11%
15%
4
2. Non-oil Imports
Apart from oil, India imports Consumer Products, Machine Equipment, Building Materials, Chemicals & Petrochemicals, and Textiles. A strong domestic demand for these products witnessed the non-oil imports to grow by 11% annually from 689 billion SAR in 2009 to 1,057 billion SAR in 2013 (Figure 3)
Figure 4 shows country wise breakup of India’s non-oil imports. China leads the segment with 18% of total imports. It is followed by Switzerland which accounts for 9% of non-oil supply. USA and UAE occupy the next two positions.
5 Trade Map Database, International Trade Center
2009 2010 2011 2012 2013
Consumer Products
Building Materials
Machine Equipment
Others**Textiles, Packaging etc.
Chemicals & Petrochemicals
45% Others
18% China
9% Switzerland
7% USA
7% United Arab Emirates
5% Germany
4% South Korea
4% Japan
1% Saudi Arabia
Figure 3: Non-oil products Imported by India
Figure 4: Non-oil Imports to India by country (2013)5
in billion SAR
100% = 1,057 billion SAR45%
18%
9%
7%
7%
176374 279 332 279
205259 248
107139
13875
9383
231
897 314
1,137
309
1,057
256
12792
295
1,144
1818363
186
689
4%5%
4%1%
11%
5
3. Industry Import Profiles3.1 Consumer Products
Consumer products contributes 16% to India’s overall imports in 2013. India imports a diverse set of consumer products ranging from jewelry to food & dairy products to toiletries and consumer durables. In the past 5 years, India’s imports of consumer products have increased by 12% annually.Figure 6 shows the distribution of India’s imports of consumer products over the past 5 years. Due to growing demand and limited production capacity, precious metals and jewelry have the largest share in this segment. Imports of precious metals and jewelry registered a total of 254 billion SAR in 2013. Apart from jewelry, India also imports Heating, Ventilating and Air Conditioning (HVAC) products, Consumer Durables, Food and Dairy products and toiletries.
Though non-oil products contribute only 10% of the total imports from KSA, the segment has seen a staggering growth. Figure 5 shows that non-oil import from KSA more than doubled in last 5 years. In non-oil imports from KSA, Chemicals and Pharmaceuticals contributed 10.6 billion SAR in 2013 i.e. 3/4th of the total. The growth in the past 5 years in non-oil imports emphasize the need to explore opportunities in non-oil commodities particularly in building materials, consumer products, machine equipment, packaging, and textiles.
6 Trade Map Database, International Trade Center
2009
2009
2010
2010
2011
2011
2012
2012
2013
2013
Chemicals and Petrochemicals
Precious Metals and jewelry
Others
Others*
50% Scrap Material
91% Precious Metals & Jewelry
11% Consumer Products
2% Others
22% Others
2% Consumer Durables
1% Machine Equipments & parts
2% HVAC
13% Building Material
2% Food & dairy products
1% Packaging
1% Toiletries products
1% Textiles
Figure 5: Non-oil products imported by India from KSA6
*Others include Tobacco, Cigars, Candles, Matches, and Stationary Items etc.
Figure 6: Consumer Products Imports to India
in billion SAR
in billion SAR
100% = 3.2 billion SAR
100% = 278 billion SAR
4.4
1.25.6
2.7
10.9
1.9
9.1
3.0
13.6 13.8
8.2 7.2
10.6 10.6
50%
91%
22%
2% 2%2%1%2%
13%
11%
1%1%1%
١٦٠٢٥٨ ٢٥٤
٣٥٢ ٣٠٧١٥175
٢١279
٢٤
278٢٢374
٢٥332
Expa
ndin
g 20
13 im
port
s fu
rthe
r
25%
12%
6
Figure 7 shows country wise breakup of India’s imports of consumer products. Supply of imported consumer goods is fairly distributed with the top 5 countries contributing only 37% of the total imports. Switzerland is the major contributor to consumer products imports to India. Along with jewelry, India imports watches and consumer durables from Switzerland. India also imports precious metals and jewelry from the UAE, Belgium and South Africa, which are all primary producers of precious metals.
7 Trade Map Database, International Trade Center8 Trade Map Database, International Trade Center
62.7% Others
15.4% Switzerland
10.1% UAE
5.6% Belgium
3.5% China
2.6% South Africa
0.1% KSA
Figure 7: Consumer Products imports to India by country7
100% = 278 billion SAR
62.7%
0.1%2.6%
3.5%
5.6%
10.1%
15.4%
KSA accounts for a small portion of consumer products imported by India. However, imports of precious metals and jewelry produced in KSA is increasing. As shown in Appendix (table 9) Saudi exporters have significant price advantage over the major suppliers of jewelry products to India.
98.2% Precious Metals & Jewelry
0.4% Others
0.3% Food & dairy products
1.0% Toiletries
Figure 8: Consumer products Imported by India from KSA8
100% = 357 million SAR
98.2%
0.4%
1.0%
0.3%
Precious Metals and jewelry Others*
2009 2010 2011 2012 2013
in million SAR
Expa
ndin
g 20
13 im
port
s fu
rthe
r
6
25
173
350
272941
3.2 Machine Equipment and PartsMachine Equipment and Parts contribute 14% of India’s overall imports. Products in this segment include electronics & mechanical engines, electrical batteries and water pumps among others. In the past 5 years India’s imports of machine equipment and parts have increased by 8% annually.Due to a flourishing manufacturing sector in India, demand for electronics items and mechanical engines & parts have increased steadily. Import in both these categories have grown by 9% annually which is in line with the overall growth in this segment. Apart from electronics and mechanical engines, India also imports tools, electrical batteries, air pump, water pumps as shown in figure 9.
71%
41 29 27
198
356
7
42% Electronics Items
25% Mechanical Engines & Parts
10% Tools
6% Electrical Batteries
3% Air Pump
2% Water Pumps
12% Others
Electronic Items
Tools
Mech. Engines & Parts
Others*
2009 2010 2011 2012 2013
in billion SAR
Expa
ndin
g 20
13 im
port
s fu
rthe
r
43
181
20
44
74
48
204 62
254
59
248
64
259
21
27 2528
5466 6168
81101 10398
100% = 248.1 billion SAR
*Others include Anchors, Conveyor belts, printing machines etc.
Figure 9: Machine Equipment & Parts Constituents by World Imports9
Figure 11: Machine Equipment Imports to India from KSA11
9 Trade Map Database, International Trade Center10 Trade Map Database, International Trade Center11 Trade Map Database, International Trade Center
Figure 10 shows country wise breakup of India’s imports in machine equipment. Supply of imported machine equipment and parts is fairly concentrated with the top 5 countries contributing 66% of the total imports.China is the major contributor of machine equipment and parts imports to India. Along with electric items and mechanical engines & parts, India also imports electrical batteries from China. India primarily imports hydraulic pumps from Germany and USA.
35% China
78% Air Pump
78%
8%
6%6% 1%
42%
25%
10%
6%3%
2%12%
1%
34% Others
8% Electronics
9% Germany
6% Mech. Engines & Parts
9% USA
6% Tools
7% Japan
1% Elect. Batteries
6% South Korea
1% Others
0.01% KSA
Figure 10: Machine Equipment & Parts Imports to India – by Country10
100% = 248.1 billion SAR
34%
7% 9%
9%
35%
6%
0.01%
As shown in figure 11, KSA holds very small share of consumer products imports. However, imports of KSA machine equipment and parts is increasing at a good pace in the last 5 years. The tariff rates for goods imported from KSA in this segment are relatively low in comparison to other industries (Tables 12-17).
2009 2010 2011 2012 2013
in million SAR
Expa
ndin
g 20
13 im
port
s fu
rthe
r
173
Electronic Items
Tools
Mech. Engines & Parts
Others*
63
34
2
53
108
72
176
48
410 36
28
71
4 6 13 331
100% = 35.6 million SAR
8%
42%
8
Fertilizers
Polymers
Organic Chemicals
Others*
2009 2010 2011 2012 2013
in billion SAR
Expa
ndin
g 20
13 im
port
s fu
rthe
r
١٤
83١٩
١0٩
١٥
٢٢
٣٠4٣
٢٤ ٢٥
٢٧
135
٢٤
139
٢٢
138
٢٣ 28 ٣٠
٥٠ ٥٥ ٦١
٣٥ ٣٢ ٢٥
3.3 Chemicals and PetrochemicalsChemicals and Petrochemicals contribute 14% of India’s non-oil imports. To sustain economic growth, demand for organic chemicals and petrochemicals have increased steadily. Imports in both these categories have doubled in past 5 years. Apart from Fertilizers, polymers, and organic chemicals, India also imports photographic chemicals, chemical residues etc. as shown in figure 12.
KSA accounts for 7% of total chemicals and petrochemicals imports to India. Imports of KSA organic chemicals and petrochemical products are increasing by 25% in last 5 years. Tables 18-21 show that Saudi has a price advantage over the top suppliers of chemicals and petrochemicals to India.
Figure 13 shows country wise breakup of India’s imports in Chemicals and Petrochemicals. Supply of chemicals and petrochemicals is slightly concentrated, with top 5 countries accounting for half of the total imports.China is the major contributor to chemicals and petrochemicals import to India. Along with organic chemicals and fertilizers, India also imports inorganic chemicals and rare earth & radioactive compounds from China.
Figure 12: Chemicals and Petrochemicals Imports to India12
Figure 13: Chemicals and Petrochemicals Imports to India – by country13
12 Trade Map Database, International Trade Center13 Trade Map Database, International Trade Center14 Trade Map Database, International Trade Center
2009 2010 2011 2012 2013
in billion SAR
Expa
ndin
g 20
13 im
port
s fu
rthe
r
Fertilizers
Polymers
Organic Chemicals
Inorganic Chemicals
1.1
1.8
2.6 3.0
2.50.6
4
1.3
81.3
11
1.3
11
0.9
7
2.4
4.4
4.8 4.8
45%
28%15%
12%3.8
0.71.9 1.50.3
44% Organic Chemicals
45% Organic Chemicals
21% Polymers
28% Polymers
14% Inorganic Chemicals
12% Inorganic Chemicals
18% Fertilizers
15% Fertilizer
3% Others
100% = 10.6 billion SAR
21%
18%
14%3%
44%
50% Others
23% China
7% KSA
7% USA
7% South Korea
6% Singapore
50%
23%
7%
7%
7%6%
100% = 138.4 billion SAR
Figure 14: Chemicals and Petrochemicals Imports to India from KSA14
100% = 138.4 billion SAR
14%
24%
9
3.4 Building MaterialsIn building materials, India imports electric wires, pipes & tubes, lifts and glass and ceramics. In the past 5 years, India’s imports of building materials have increased by 7% annually.To fuel the growth in India’s infrastructure sector, demand of building materials have increased steadily. While the growth in bars and rods have been slow, electric wires and pipes and tubes have witnessed a growth of 9% between 2009 and 2014 as shown in figure 15.
Figure 16 shows country wise breakup of India’s import in building materials. China is the major contributor to products imported in this segment. Along with iron and steel articles, India also imports cement & plaster, plastic pipes and tubes from China. India imports iron ore and glass and ceramics products from Japan.
Figure 15: Building Materials Imported by India15
32% Bars & Rods
4% Cement & Plaster
17% Electric Wires
4% Bricks
15% Metal Sheets
4% Glass & Ceramics
13% Pipes & Tubes
1% Paper Board
5% Paints & Dyes
5% Others
13%17%
15%
5%4%
4%1%
4% 5%
32%
Bars & Rods
Pipes & Tubes
Electric Wires
Others*
2009 2010 2011 2012 2013
in billion SAR
Expa
ndin
g 20
13 im
port
s fu
rthe
r
19
63
810
25
٢٣
75 ٢٩
92
٣٣
93
٣٢
83
١٠١٣ ١٣
١١1١
1٤ 1٤1٤
٣١ ٣٥ ٣٣ ٢٧
100% = 83.2 billion SAR
100% = 83.2 billion SAR
15 Trade Map Database, International Trade Center16 Trade Map Database, International Trade Center17 Trade Map Database, International Trade Center
40% Others
25% China
11% Japan
10% South Korea
8% Germany
5% USA
1% KSA
Figure 16: Building Materials Imports to India by country16
40%
25%
11%
10%8%
5%1%
As shown in figure 17, KSA holds a small share in this segment. However, import of building materials produced in KSA is increasing at steady rate over the past 5 years.
35% Paints & Dyes
29% Bars & Rods
10% Metal Sheets
3% Pipes & Tubes
15% Glass & Ceramics
7% Cement & Plaster
1% Others29%
15%
10%
7%3% 1%
35%100% = ٤١٠.٧ million SAR
2009 2010 2011 2012 2013
in million SAR
Expa
ndin
g 20
13 im
port
s fu
rthe
r
Bars & Rods
Glass & Ceramics
Paints & Dyes
Others
٤٨295 ٤٧
379١٢٣
419
٨٧
411
٧٠658
4
٤
٦
٦٩ ٥٨ ٦٣
٨٤
32 ٢٥٩١١٩ ١٤٣
١١٩ ١١٨
٤٩٨
Figure 17: Building Materials Imports to India from KSA17
7%
9%
10
48% Fabrics
31% Wool
6% woolen
1% Carpets
14% Others
48%
58%
30%
7% 5%
31%
6%1%
14%
100% = ٢٢.٥ billion SAR
3.5 TextilesTextile is one of the fastest growing import segment. India import products spanning from cloths and fabrics to carpets to hand-woven tapestries. In the past 5 years India’s imports of Textiles have increased by 15% annually.Due to growing domestic market for imported clothing materials, demand of fabrics and cloths have increased steadily. Imports in both these categories have grown by 16%, higher than overall segment’s growth. Apart from fabrics and cloths, India also imports wool, carpets, animal yarn etc. as shown in figure 18.
18 Trade Map Database, International Trade Center19 Trade Map Database, International Trade Center20 Trade Map Database, International Trade Center
Fabrics Others*Cloths
2009 2010 2011 2012 2013
in billion SAR
Expa
ndin
g 20
13 im
port
s fu
rthe
r
212 4
17 4
205
225
23
45
6 6 7
6 810 11 11
*Others include Animal yarn, cotton waste, footwear and headgears etc.
Figure 18: India’s Imports of Textiles18
Figure 19 shows country wise breakup of India’s import in textile segment. Supply for imported textile products is highly concentrated with China alone supplying 45% of total imports.Along with impregnated materials, India also imports textile articles, yarn and fabrics for industries from China. India primarily imports clothing, textile articles, rags, and floor coverings from USA and Australia.
45% China
5% USA
4% Bangladesh
3% Australia
3% Japan
0.2% KSA
40% Others
Figure 19: India’s Import of Textile Products by Country1٩
Figure 20: India’s Import of Textile Products from KSA20
100% = ٢٢.٥ billion SAR
40%
3%
4%
5% 45%
3%0.2%
As shown in figure 19, KSA holds a small share in this segment. Imports of woolen cloths and fabrics from KSA have increased at a CAGR of 33% in the past 5 years.
2009 2010 2011 2012 2013
in million SAR
Fabrics
Cloths
Wool
Others
Expa
ndin
g 20
13 im
port
s fu
rthe
r
٤
٤
٨١٢ ١٣
٢13
٣30
٥
39 ٥46
٣42
٦
١٨
١٤ ١٥
٢٤
١ ٥١٢ ١٤
٢
58% woolen
30% Cloths
7% Carpets
5% Fabrics
15%
33%
100% = 4٢.2 million SAR
11
51% Plastic Sheets & Films
31% Boxes & Cartons
8% Caps & Lids
5% Cans, Tanks & drums
5% Others
51%
31%
8%
5%5%
100% = 13.2 billion SAR
3.6 Packaging
In Packaging, India imports products ranging from plastic sheets and films to aluminum and cargo containers. Over the past 5 years India’s imports of packaging materials have increased by 13% annually.
Plastic Sheets & Films
Caps & Lids
Boxes & Cartons
Others*
2009 2010 2011 2012 2013
in billion SAR
Expa
ndin
g 20
13 im
port
s fu
rthe
r
*Others include sacks, bags, aluminum containers, cargo containers etc.
Figure 21: India’s Import of Packaging Materials21
21 Trade Map Database, International Trade Center22 Trade Map Database, International Trade Center
4.13.83.9
3.02.6
1.10.90.9
0.70.6
1.313.2
1.312.2
1.312.1
1.29.7
1.08.1
6.76.26.04.83.9
Figure 22 shows country wise breakup of India’s imports of packaging products. Supply of imported packaging products is fairly concentrated with top 5 countries contributing to close to 54% of total import demand.China is the major contributor to packaging products import to India. Along with containers, India also imports paper based products such as boxes and cartons from China. India imports packaging machinery from Germany and Italy.
46% Others
24% China
12% USA
8% Germany
6% South Korea
4% Italy
0.3% KSA
Figure 22: India’s Imports of Packaging Materials22
100% = 13.2 billion SAR
46%
24%
8%12%
6%
4%0.3%
13%
12
79% Plastic Sheets & Films
16% Caps & Lids
3% Boxes & Cartons
2% Cans, Tanks & drums
79%
16%
3% 2%
100% = 39.8 million SAR
As shown in figure 23, KSA holds a small share in this segment. Demand for KSA’s packaging material is increasing over the last 5 years especially for plastic sheets and films, which have witnessed growth of more than 50% during this period.
23 Trade Map Database, International Trade Center
Plastic Sheets & Films
Caps & Lids
Boxes & Cartons
Others
2009 2010 2011 2012 2013
in million SAR
Expa
ndin
g 20
13 im
port
s fu
rthe
r
Figure 23: Packaging Imports to India from KSA23
12
5
11
27
33
29
241
25
251
30
263
61
39
312919
95
6%
13
Currently the import tariffs are governed by the Export Import (EXIM) policy of 2009-2014. India’s import tariffs are relatively high in agricultural sector compared to international standards. For non-agricultural goods, India has made considerable progress in restructuring tariffs. The Indian customs classification on tariff items follow the Harmonized Commodity Description and Coding System (Harmonized System or HS). It uses 6 digits HS codes to identify import items.
India has several trade agreements with many of the surrounding countries that grants them with more preferential tariff treatments. It has to be stressed that those agreements have been notified to the World Trade Organization. The list below which was obtained from the International Trade Center and represents the current active trade agreements of India as follow:
Appendix
Appendix Trade Agreements
14
Table 1: Trade agreements
Tariff Preferential Agreements Countries
Preferential tariff for Afghanistan Bilateral
Preferential tariff for GSTP countries
Mozambique, Nicaragua, Nigeria, Pakistan, Peru, Philippines, Qatar, Romania, Serbia, Montenegro, Singapore, Sri Lanka, Sudan, Tanzania, United Republic of Thailand, Trinidad and Tobago, Tunisia, Uruguay, Venezuela, Viet Nam, Zimbabwe
Preferential tariff for SAFTA(LDC) countries Bangladesh, Bhutan, Maldives, Nepal
Preferential tariff for Bangladesh Bilateral
Preferential tariff for APTA countries Bangladesh, China, Republic of Korea, Sri Lanka
Preferential tariff for GSTP(LDC) countries Bangladesh, Benin, Guinea, Haiti, Mozambique, Sudan, United Republic of Tanzania
Preferential tariff for Bhutan Bilateral
Preferential tariff for Least Developed CountriesCambodia, Ethiopia, Lao People's Democratic Republic, Madagascar, Malawi, Mozambique, Rwanda, Samoa, Tanzania, United Republic of Uganda
Preferential tariff for Chile Bilateral
Preferential tariff for Mauritius Bilateral
Preferential tariff for Myanmar Bilateral
Preferential tariff for Nepal Bilateral
Preferential tariff for SAFTA countries Pakistan, Sri Lanka
Preferential tariff for Seychelles Bilateral
Preferential tariff for Singapore Bilateral
Preferential tariff for Sri Lanka Bilateral
Preferential tariff for Thailand Bilateral
Preferential tariff for Tonga Bilateral