Made By:Bharti Babbar - 13073

Devesh Revankar - 13090

Gautam Rai - 13104
1

Index
Acknowledgement ....................................................................................................................................... 3
Introduction .................................................................................................................................................. 4
India EU Relations ........................................................................................................................................ 5
Some facts ................................................................................................................................................. 6
Institutional Interactions........................................................................................................................... 7
Dismantling Trade barriers in India ........................................................................................................... 8
Strategic Partnership................................................................................................................................. 9
Free Trade Agreement ............................................................................................................................ 12
Indias approach to EU ............................................................................................................................ 14
Trade proceedings................................................................................................................................... 15
Economic and Commercial Relations ...................................................................................................... 16
Joint Working groups .............................................................................................................................. 17
India-EU forum ........................................................................................................................................ 18
Conclusion ............................................................................................................................................... 19
Analysis ....................................................................................................................................................... 20
Imports and Exports ................................................................................................................................ 21
Mineral fuels, lubricants and other related materials ............................................................................ 22
Manufactured goods classified chiefly by material ................................................................................ 23
Machinery and transport equipment ..................................................................................................... 24
Miscellaneous manufactured articles ..................................................................................................... 25
Share of Exports and Imports ................................................................................................................. 26
India Top Trading Partners ...................................................................................................................... 27
Europe Top Trading Partners .................................................................................................................. 29
Future Trends ............................................................................................................................................. 31
Bibliography................................................................................................................................................ 32

Acknowledgement
This research is made possible through the help and support from everyone. Especially, please allow us
to dedicate our acknowledgement of gratitude towards the following significant advisors and
contributors:
We would like to thank my teacher Dr. Kumar Bijoy for his exemplary guidance, mentoring and
constant encouragement throughout the course of this project. We extremely grateful to him for
providing us with such a great project and guidance.
Finally, we sincerely thank to parents, family and friends who helped us a lot in finishing this project
within the limited time.
The product of this research paper would not be possible without all of them.

We really thankful to them.

Team Members
Bharti Babbar
Devesh Revankar
Gautam Rai

Introduction
Considered natural allies in a wide range of global issues by both parties, diplomatic relations
between India and the EU were established in the early 1960s. Since the 1990s, cooperation
between the two increased and their relationship was institutionalised. In 2004, the European
Commission (Commission) proposed the establishment of an ambitious strategic partnership
between the EU and India. The EU identified India as a strategic partner, as it increasingly
strengthened its position on the international scene, was booming economically and
encompasses a vast territory and population. These strategic partnerships have become one
of the key features of European foreign policy as a way for the EU to assert itself while allowing
emerging powers like India to build up their status as global players. In the context of this
partnership, the EU seeks to deepen economic ties with India through bilateral dialogue on
intellectual property rights, trade defence instruments, technical barriers to trade, sanitary and
phytosanitary measures, and customs cooperation.
The strategic partnership called for an EU-India Action Plan. This plan was presented at the EUIndia summit in 2005. Both parties agreed to several commitments, including some aimed at
developing trade and investment since, while trade and investment flows between India and
the EU have been increasing, they remain below potential. Therefore, negotiations towards a
broad-based FTA expanded the strategic partnership.
This project will shed light on the historical relations of India with EU and analyse the trade
relations of India and EU using data from European Commission (All data in million Euros).

Some Facts

European Economic Community was born in 1958 which later came to be known as European
Union

Bilateral relations between the European Union (EU) and the Republic of India date back to the
1960s, when India was one of the first countries to establish relations with what is now the
European Union. The most recent cooperation agreement was signed in 1994 and an action plan
was signed in 2005. They concluded another round of negotiations on the proposed free trade
agreement (FTA) at Brussels.

First agreement cooperation agreement signed in 1994, after the end of cold war and India was
looking for getting more space in the liberation period. Now negotiating broad based trade
agreement BTIA, which is a part of cooperation agreement (in 1994).

The 27-nation EU is Indias largest trading partner. India was EUs 8th largest trading partner in
2010. EU investment in India more than tripled between 2003 and 2010: going from 759million
in 2003 to 3 billion in 2010.
Trade in commercial services tripled during the same time period, going from 5.2billion in 2002
to 17.9 billion in 2010

Total trade in 2010 increased by 28% to Euro 67.78 billion (Indian exports of Euros 32.99 billion:
Indian imports of Euro 34.79 billion) as compared to 2009 figures. In the first eight months of
2011, trade between India and EU grew at 23%. During this period, Indias exports to the EU
were Euro 26.7 billion and imports were Euro 26.9 million. In 2010, total Indian exports to the
EU in different services sector were Euros 8.7 billion whereas total Indian services imports from
the EU were Euros 10.9 billion.

The EU is one of the largest sources of FDI for India. FDI inflows from the EU to India declined
from Euro 3.4 billion in 2009 to Euro 3.0 billion in 2010. Indias investment into EU has also seen
a marginal decline from Euros 0.9 billion in 2009 to Euros 0.6 billion in 2010. The most important
countries in the EU for FDI into India are Germany, UK, France and Italy.

2004(Hungary along with 9 other countries joined EU called Big Bank Enlargement,( different
countries joined in the enlargement process)

Last big Treaty was Lisbon Treaty (2009)

INSTITUTIONAL INTERACTIONS
India and the EU have held thirteen rounds of negotiations for a bilateral Broad-based Trade and
Investment Agreement. Negotiations commenced in 2007 and cover

Trade in goods,
and Technical Barriers to Trade,
Investment
Intellectual Property Rights and Geographical Indications
Competition Policy,
Customs and Trade Facilitation,
Trade Defence,
Dispute Settlement.

The last round of negotiations took place in New Delhi from 31 March to 5 April 2011.

DISMANTLING TRADE BARRIERS IN INDIA

The European Commission's Trade and Investments Barriers Report, published in March 2012, points
out that some progress has been made to dismantle trade barriers in India:

Two trade barriers were fully removed in 2012: export restrictions on cotton and security
requirements for telecommunication equipment.
Progress has also been achieved with regard to sanitary and phyto-sanitary rules.
No positive movement has been seen in the area of equity caps.
India's industrial policies contain trade-restrictive elements.
The report also identified India's national manufacturing policy as a key priority for reform.

EU-India trade negotiations

the negotiations cover:

Access to each other's markets, for goods, services and to public procurement contracts,
The framework for investment

Strategic Partnership
Strategic partnership: Party with which a long-term agreement is reached for sharing of physical
and/or intellectual resources in achievement of defined common objective.
Strategic partnership between Europe and India
The EU and India already enjoy a close relationship based on shared values and mutual respect.
In recent years, the relationship has developed exponentially in terms of shared vision, goals
and challenges. Against this background the Commission proposes a new strategy based on the
following objectives:

international cooperation through multilateralism, including promoting peace, combating

terrorism, non-proliferation of weapons of mass destruction and human rights;
enhanced commercial and economic interaction, in particular through sectoral dialogue and
dialogue on regulatory and industrial policy;
cooperation on sustainable development, protecting the environment, mitigating climate
change and combating poverty;
Continuous improvement of mutual understanding and contacts between the EU's and India's
civil society.

Economic partnership
The EU is India's largest trading partner and main source of foreign inward investment, whereas
India is only the EU's 14th trading partner. India needs to further open up its market and
accelerate market reform to realise the potential of its market. It must address such matters as
customs tariffs and the many non-tariff trade barriers, as well as considerably improving its
infrastructure.
The strategic dialogue should address regulatory and industrial policy to improve business
competitiveness on both sides. India and the EU should also promote cooperation on the
world's major environmental challenges such as biodiversity, climate change and the depletion
of the ozone layer.
In many areas, dialogue with India has already made considerable progress. Strategic sectorial
dialogues should be developed in the following areas:

the information society;

transport;
9

energy;
biotechnology;
the Galileo programme (the European global satellite navigation system);
A space partnership.
The EU and India must start dialogue on investment, intellectual property rights and trade
defence instruments. The EU has an interest in enhancing cooperation with India on technical
barriers to trade and sanitary and phytosanitary issues. The EU-India customs cooperation
agreement should also be exploited and sustainable development and South Asian regional
cooperation should be promoted.
There is enormous potential for EU-India collaboration in science and technology. Indian
researchers should be encouraged to participate in the EU's 6th Framework Programme.
The EU should invite India to regularly attend ministerial level consultations on subjects of
mutual interest in the field of monetary and financial policy.
Development cooperation
The EU must help India to meet the Millennium Development Goals (MDG). Coordination with
other EU donors needs to be improved. The EU could also share its experience of social security
systems.
Mutual understanding
The European and Indian Parliaments are considering organising regular, institutionalised
parliamentary exchanges. In terms of culture, cooperation in all disciplines should be
reinforced. All Member States and institutions should cooperate and coordinate their activities
to inform Indian public opinion. The Government of India should be encouraged to visit EU
institutions as often as possible and devise its own communications strategy.
Institutional architecture
EU-Indian partnership is based on the 1994 Cooperation Agreement and the Joint Political
Declaration of 1993. The first Lisbon summit of 2000 was also key to the development of
bilateral relations. The Commission proposes a number of initiatives to streamline the structure
of the partnership.
Implementation and follow-up

10

The Commission hopes that this Communication will be a starting point for collective reflection
on how to improve EU-India relations. The proposals emerging from such reflection could serve
as the basis for an action plan and a new EU-Indian joint political declaration. Both could be
endorsed at the Sixth EU-India Summit in 2005.
Context
India is an increasingly important international player and regional power with an impressive
economic growth rate. Since the first EU-India summit held in Lisbon in 2000, EU relations with
India have progressed in political, geopolitical, economic and trade terms.

11

Free trade agreement

Treaty (such as FTAA or NAFTA) between two or more countries to establish a free trade
area where commerce in goods and services can be conducted across their common borders,
without tariffs or hindrances but (in contrast to a common market) capital or labor may not
move freely. Member countries usually impose a uniform tariff (called common external tariff)
on trade with non-member countries.
India has a lot to gain from an FTA with the EU, particularly in regard to preferential and dutyfree access to the European market. A Sustainability Impact Assessment, commissioned by the
EU, indicates that an extended (broad) FTA (including further non-tariff barriers to trade
harmonization) would result in significant benefits to both parties in terms of welfare gains,
production, international trade, wage increases and productivity increases. The welfare effects
amount to an additional 0.3 per cent growth for the Indian economy in the short run and 1.6
per cent growth in the long run.
India and the EU have a substantial trade relationship that is growing rapidly. In 2002, India was
the EUs 15th-largest trading partner; by 2012, it was the 8th. If trade between India and all EU
member-states is totaled, the EU is Indias largest trading partner. Given this context of growing
trade and benefits to be had all-round, it is odd that the two powers have not made more
progress towards an FTA.
Why cant India and Europe sign a FTA?

First, Indias trade policy is influenced by demographics. More than half of Indias
population is under the age of 25, necessitating a growth strategy emphasizing job
creation and not just export promotion. These demographics and its education system
have provided India with a skilled, competitive, English-speaking work force, something
which Europe will be short of in the near future. Making gains from this workforce
through trade requires more than tariff reduction, which is why tariff reductions alone
will not make the EU-India FTA sufficiently interesting for India. Consequently,
negotiations included provisions for the abolition of non-tariff barriers such as standards
and mutual recognition or licensing requirements.

India is particularly interested in the liberalization of services under Modes 1 and 4 of

GATS. As Indias skilled services labor force is growing very fast, India emphasizes better
market access for services suppliers through Mode 4 liberalization over market access
for goods in trade negotiations.
Second is Agriculture, a key sector for India from the perspective of ensuring equity and
growth from the FTA. The EU has a highly protected agricultural sector and India has
strong defensive interests in negotiating an FTA with the EU. At the moment, European
agricultural imports from India are over five times larger than its exports to India, even
though EU tariff rates on such imports are relatively high. India wants the EU to cut tariff
12

and subsidy support to its agricultural products for fear of EU exports displacing Indian
agricultural products once an FTA is signed. This issue could prove a significant
stumbling block in the ongoing negotiations.

The third issue is the reluctance of the Indian government to negotiate government
procurement issues. This is a priority issue for the EU and a bone of contention between
the parties. The EU has complained that the Indian government procurement practices
are often not transparent, discriminate against foreigners and often give preferences to
the locals. But given government procurement accounts for nearly 13 per cent of Indias
GDP, the Indian government insists it will not include public procurement in the EU
India FTA agenda. India is also discussing a data secure status for the country. At
present, India is not considered data secure by the EU. This obstructs the flow of
sensitive data, such as information about patents, under data protection laws in the EU.
The EU law mandates that European countries doing outsourcing business with
countries that are not certified as data secure have to follow stringent contractual
obligations, which increase operating costs and affects competitiveness.

Finally, there is a range of smaller matters that could derail negotiations if not managed
well. These include further opening up Indias insurance sector and increasing the
foreign direct investment limit to 49 per cent. A call from the EU for India to reduce its
import duty on passenger cars is also contentious.

Negotiating a resolution to these issues is in the interests of both India and the EU. But
the hurried pace of negotiations is becoming a cause for worry. In negotiating any
bilateral trade agreement with the EU the Indian government should tread cautiously so
as to safeguard domestic concerns and the public interest. The FTA will be the first of
Indias large trade agreements with a western bloc, with 27 economies. If structured
well, the agreement could push Indias growth for the next decade. If structured poorly,
it could derail it for just as long.

13

Indias approach to EU
Profile of EU

18 members use euro but not Hungary

22 members states in Schenden Agreement
15 Developed economies
13 Developing economies
17 Parliamentary Republics Political Systems
8 constitutional monarchies Political Systems

First India EU Summit level talks took place in Lisbon in June 2000 & marked a qualitative shift
in the Evolution of the relations. Since then, 12 annual summits have been held, last one in New
Delhi on 10th Feb 2012
PM Dr. Manmohan Singh led the Indian Delegation while the EU was represented by Mr.
Herman Van Rompuy, President of the European council & Mr. Jose Manuel Barroso, president
of European Commission
While there was no summit meeting in 2013, there will be summit level talks soon following the
national election process
EU has always been a priority in the foreign policies
Lower level 2 or more forums besides leaders on the top.
One is at the level of foreign ministry level since 1990
So lower functionary before PM is Finance Ministry
The last foreign Ministerial meeting took place in Brussels in Jan 2013, where both parties
foreign ministers met.
Meetings at senior level Foreign Office Consultations (FOCs),prepares

14

Trade Proceedings
India-EU entered into Strategic Partnership in 2004 and marked the tenth anniversary of
their strategic partnership in 2014
A Joint Action Plan (JAP) was envisaged in 2005. JAP has been held annually since May
2006.The sixth round of JAP was held in Brussels on 25th October at the secretary level.
Since May 2006 6 rounds of JAP were there but JAP is a body on Top it gives directives
for implementation doesnt go into integrities of implementation for that other groups
are there
Security Dialogue-Under the JAP, a Bilateral Joint Working Group on Counter Terrorism
as well as Dialogues on cyber security & counter policy have been constituted
Both sides have signed to setting up a Dialogue on Non-proliferation & Development
under the Umbrella of the Security Dialogue.
Annual India-EU Ad-hoc dialogue on Human Rights is held in New Delhi, the 8th meeting
of which took place on 27th November 2013
High level Dialogue on Migration & Mobility has been instituted at secretary level
between the Ministry Of Overseas Indian Affairs and DG, Home Affairs on the Indian side
and their EU counterparts. The third round of the Dialogue took place in Delhi on July 2,
2012.
There is also a Delhi-based Joint Working Group on consular Issues. Migration from
developing to developed Nations. A dialogue Mechanism has been established on the
sensitive issue of mobility.
A delegation for relations with India (D-IN) was formally constituted in the European
Parliament (EP) in 2007.The D-IN has 28 regular and 22 substitute members drawn from
various political groups in accordance with their numerical strength in the EP. The D-IN
is currently chaired by Sir Graham Watson, a liberal Democrat MEP from the UK. The DIN selects members to pay an orientation visit to India every year. The last visit of D-IN
MEPs to India took place from 29th April to 3 May 2013
The parliament from India visit EU regularly, a forum on the Indian side has not yet
been formalized.

General point: Negotiations become too tough In India and EU as they both belong to 2
different continents

15

Economic and Commercial Relations

A multi-tiered institutional architecture of cooperation has been created within the

overall framework of India-EU Summit & the Strategic Partnership.
Plethora of dialogue mechanisms covering various sectors have been set up within
well-rounded policy perspective of the Joint Action Plan, since 2005
Key Indices-EU (2012)
Population 507.89 million
GDP- $16.773 trillion
Per capita - $36,393
Largest economy by nominal GDP
2nd largest economy by Purchasing Power Parity (PPP)
India
India is 4th largest economy in world in terms of Purchasing Power Parity because of so
much of population
In terms of Nominal GDP, it is ninth in the world
EU-Indias second largest trading partner, Trade both in goods and services: Total
Quantum of bilateral Goods and Services
EU as a block of 28 countries is Indias 2nd largest trading partner, while India is EUs 9th
largest trading partner Bilaterally trade and services reached 90 billion in 2012
Bilateral trade in goods registered 65.80 billion in 2012(Indias exports to EU was 27.33
billion & EUs exports to India was 38.47 billion.
Trade in services reached a total quantum of 22.6 billion in 2012. Indias service
exports to EU was 10.7 billion while EU service exports to India was 11.9 billion
India and EU are in the process of negotiating a bilateral Broad-based Trade &
Investment Agreement (BTIA) since 2007. Several sectoral dialogues as well as video
conferencing sessions have been held regularly between both the sides.
Given the major states at play, India has allowed a lot of flexibility in the negotiation
process, much more than it has on FTAs with any other country or bloc, in an effort to
reach a realistic & balanced solution and thus eventual finalization of the BTIA
European negotiators per chance lose sight of the socio-economic realities of India &
thus differences in perception are allowed to remain.
India-EU Joint Commission dealing with economic & commercial issues meets annually
as also its three sub-commission on Trade, Economic Cooperation & Development
Cooperation. They have flowed from the JAP.
The last Joint Commission Meeting at the level of secretaries was held in Brussels on 4 th
Feb 2013 & the last meetings of the Sub Commissions on Economic Cooperation &
Trade were held in Brussels on 6-7 March 2014.
16

Joint working Groups

They are the groups which prepare the final checklist and perform the last stage in
cooperation process.
JWG in several areas

Textile and Clothing

Agriculture and Marine Products
Technical Barriers to trade and Sanitary and fighter sanitary issues (to allow health
products to come in food products with health qualities).
Pharmaceuticals: India today one of the largest exporters both traditional as well as
non-traditional all over the world. Laws dont allow Ayurveda to be practiced in other
countries.
When Sovereign Debt crisis happened in Europe, we got first hit of that. At that time
drop in Indias Investment had happened.

Cooperation in the field of science and technology

Cooperation in the field of Science & Technology Steering committee meets annually to
discuss cooperation in the area. The science and technology committee held its 9 th
meeting in Brussels on 9th October 2013. Besides meetings took place at the Group of
Senior Officials (GSO) level in person as well as through video conferencing.
A dialogue on Information & communication Technology (ICT) has been set up. The last
such dialogues took place in Brussels on 3-4 September 2013.

Energy

India-EU have set up an Energy Panel in 2005 to enhance cooperation in the critical
sector of energy and energy security. The last meeting of the Panel was held in Brussels
on 27th march 2014. This was held at Secretary Level.
Separate Sub-groups have been set up dealing with coal & clean coal conversion
technologies, energy efficiency &renewable energy etc. The joint working group on
clean coal technologies last met from 17-19 June 2013 in Brussels & the India-EU coal
JWG had its 8th meeting on 28th November 2013 in Chennai.
India dependent on oil & gas, as clean technology is mastered by Europe.

17

India EU-forum (civil society body)

The India-EU forum has emerged as an important track 2 forum for discussion between
policy analysts on both sides. It is led by the Pans-based European Union Institute for
security studies(EUISS) and the Indian council of World Affairs(ICWA) & includes
participation from academics, think-tanks & even policy makers
The 4th India-EU forum was jointly organized by EUISS & ICWA in cooperation with the
Spanish think-tank FRIDE in Brussels on 23-24 October 2012.

Bilateral Agreements

India & EU have signed bilateral Agreements/MOUs in a number of areas namely:

Science and technology
Information & Communication Technology
Customs Cooperation
Employment & Social Affairs
Civil Aviation
Education & Training
Nuclear Fusion Energy Research
Statistics
Competition

Besides joint declarations, statements in other areas have also been signed.

18

Conclusion

India-EU relations have come a long way from being economy focused & have matured
sufficiently today with being a holistic, multi-tiered, architectural relationship,
converging the highest levels on both sides.
India & EU are natural partners with relations based on the shared values of democracy,
rule of law & respect for human freedom.
They have started a strategic partnership for a decade
Constant interaction on between the government, parliament & civil society at the
highest levels have made India-EU relations one of the most important & broad
visioned in a world of multi-polar relationships, a relationship which can withstand
financial crisis as well as political upheavals.

19

Analysis
The analysis of this project is based on the Import Export data of past 10 years and specific
data from previous 5 years. Each graph shows the absolute figures for the imports and exports
in the particular product group from years 2009-13.

20

Imports and Exports

Chart Title
45,000
40,000
35,000

30,000
25,000
20,000
15,000
10,000
5,000
0
-5,000
2004

2005

2006

2007
Balance

2004
2005
2006
2007
2008
2009
2010
2011
2012
2013

Imports
17,155
21,250
24,241
29,181
31,356
27,499
34,891
40,582
38,543
35,874

2008

2009

Imports

Exports
16,408
19,114
22,637
26,666
29,632
25,503
33,464
39,927
37,447
36,809

2010

2011

2012

2013

Exports

Balance
-747
-2,136
-1,604
-2,515
-1,724
-1,996
-1,427
-655
-1,096
935

The balance (Exports Imports) has been negative, touching a high of 2515 million euros, until recently
in 2013. In 2013 there was trade surplus of 935 million euros. The graph shows a consistent growth
except for 2008-09, where the worldwide trade depression had a negative effect on the trade between
India and European Union.

21

Mineral fuels, lubricants and related materials (Exports vs.

Imports)
6000
5000

4737

5057

5066

4968

4000
3000
2000

1947

1000
0

263

165

313

340

241

2009

2010

2011

2012

2013

Exports

Imports

1. India is one of the highest exporters of minerals in the world and EU imports minerals from
India. India produces Iron Ore in high quantity but it is graphite that is imported the highest.
2. There was a sudden jump in the exports from India to EU (imports for EU) in 2009, though
imports were not affected by much.
3. Overall, the exports have been higher than imports by a considerable margin.
4. Annual average growth rate is 23.8% for exports and 18.1% for imports.
5. The majority of the exports constitutes of fuels, chiefly petroleum and its derivative products.

22

Manufactured goods classified chiefly by material (Exports

vs. Imports)
16,000
14,000

13,550

12,000

12,401

12,555

8,463

8,493

2012

2013

10,764

10,000

9,661

8,000

7,705

6,000

5,664

7,384

4,000
2,000
0
2009

2010

2011
Exports

Imports

1. Manufactured goods sector increased steadily from 2009-11, then dropped by a little(Exports)
2. India still has higher imports of manufactured goods than exports.
3. Average annual growth rate of various sub-categories of manufactures
a. Chemicals
i. Exports 17.0%
ii. Imports 9.9%
b. Textiles
i. Exports 1.8%
ii. Imports 10.1%
4. Overall growth rate
a. Exports 12.28%
b. Imports 14.55%

23

Machinery and transport equipment (Exports vs. Imports)

18,000
16,000

15,777

14,000
12,000

14,666

14,212

12,988

12,177

10,000
8,000
7,070

6,140

6,000

6,283

5,065

5,758

4,000
2,000

0
2009

2010

2011
Exports

2012

2013

Imports

Machinery and appliances contribute 36.2 % share in imports.

Machinery and appliances contribute to 15.6 %share in exports.
There is a gradual improvement in both exports as well as exports from 2009 to 2011 and a gradual
decline from 2011 to 2013
World trade growth fell to 2.0% in 2012 down from 5.2% in 2011 and remained sluggish in
2013 at around 3.3% as the economic slowdown in Europe continued to suppress global import
demand, WTO economists reported on 10 April 2013.
In 2013 the machinery and transport equipment export growth rate was -8.4% while import was 11.4%.
Constituents of the machinery are power generating machinery, non-electrical machinery, and
electrical machinery.
Transport equipment includes automotive products and other transport equipment.

24

Miscellaneous manufactured articles (Exports vs. Imports)

10,000
9,000

8,686

8,000
7,000

7,972

8,038

2,694

2,675

2,631

2011

2012

2013

8,016
7,240

6,000
5,000
4,000
3,000
2,000

2,033

2,419

1,000

0
2009

2010
Exports

Imports

In 2013 the miscellaneous manufactured articles export growth rate was 0.8% while import was 1.6%.
The imports are falling (as massive unemployment was there, so the benefit of economies of scale
was lost as production decreased) while the exports have risen recently.
Constituents are:
Prefabricated buildings; sanitary, plumbing, heating and lighting fixtures and fittings,
Furniture, and parts thereof; bedding, mattresses, mattress supports, cushions and
similar stuffed furnishings
Travel goods, handbags and similar containers, Articles of apparel and clothing
accessories, Footwear, Professional, scientific and controlling instruments and
apparatus, Photographic apparatus, equipment and supplies and optical goods, watches
and clocks.

Miscellaneous manufactured articles contribute to 7.3 % share in imports

Miscellaneous manufactured articles contribute to21.8 % share in exports

25

Share of Total Exports (2013)

Primary Products

Manufactures

Other Products

Others

Share of Total Imports (2013)

Primary Products

Manufactures

Other Products

Other

26

India, Top trading partners 2013

Imports
S.no. Partner
World
1 China
2 European Union
3 Saudi Arabia
4 U.A.E.
5 Switzerland
6 USA
7 Iraq
8 Kuwait
9 Indonesia
10 Venezuela

Value (Mio ) Share in the World (%)

358,611
100.0
39,421
11.0
38,421
10.7
27,920
7.8
25,538
7.1
19,637
5.5
17,312
4.8
15,551
4.3
13,445
3.7
11,581
3.2
11,440
3.2

Export
S.No. Partner
World
1 European Union
2 USA
3 U.A.E.
4 China
5 Singapore
6 Hong Kong
7 Saudi Arabia
8 Japan
9 Bangladesh
10 Brazil

Value (Mio ) Share in the world (%)

239,435
100.0
39,670
16.6
29,639
12.4
24,508
10.2
11,093
4.6
10,340
4.3
9,937
4.2
9,045
3.8
5,181
2.2
4,359
1.8
4,150
1.7

27

Total Trade
S.No. Partner
World
1 European Union
2 China
3 U.A.E.
4 USA
5 Saudi Arabia
6 Switzerland
7 Iraq
8 Hong Kong
9 Singapore
10 Indonesia

Value (Mio )
Share in the world
598,046
100.0
77,861
13.0
50,514
8.4
50,046
8.4
46,951
7.9
36,965
6.2
20,947
3.5
16,265
2.7
15,932
2.7
15,701
2.6
15,566
2.6

28

Europe, Top trading partners 2013

Imports
S.no. Partner
Value (Mio ) Share in the World (%)
World
1,682,592
100.0
1 China
280,095
16.6
2 Russia
206,146
12.3
3 USA
196,098
11.7
4 Switzerland
94,305
5.6
5 Norway
90,064
5.4
6 Japan
56,565
3.4
7 Turkey
50,401
3.0
8 India
36,809
2.2
9 South Korea
35,840
2.1

Exports
S.no. Partner
World
1 USA
2 Switzerland
3 China
4 Russia
5 Turkey
6 Japan
7 Norway
8 U.A.E.
9 Brazil
11 India

Share in the World

Value (Mio )
(%)
1,737,961
100.0
288,263
16.6
169,566
9.8
148,297
8.5
119,780
6.9
77,755
4.5
54,076
3.1
50,225
2.9
44,652
2.6
40,043
2.3
35,874

2.1

29

Total Trade
S.no. Partner
World
1 USA
2 China
3 Russia
4 Switzerland
5 Norway
6 Turkey
7 Japan
8 South Korea
9 Brazil
10 India

Value (Mio )
Share in the World (%)
3,420,553
100.0
484,361
14.2
428,392
12.5
325,926
9.5
263,871
7.7
140,289
4.1
128,156
3.7
110,641
3.2
75,808
2.2
73,140
2.1
72,683

2.1

30

Future Trends
Looking at the growth rate of Imports Exports of the various sectors, it can be
safely be assumed that trade will increase further. With a stable government at
the center, the trade relations will mature further.

31

Bibliography

http://www.eastasiaforum.org/2013/06/14/why-cant-india-and-the-eu-sign-an-fta/
http://eeas.europa.eu/delegations/india/eu_india/political_relations/strategic_partnership/ind
ex_en.htm
http://eeas.europa.eu/delegations/india/eu_india/political_relations/strategic_partnership/ind
ex_en.htm#
http://en.wikipedia.org/wiki/India%E2%80%93European_Union_relations
http://europa.eu/legislation_summaries/external_relations/relations_with_third_countries/asia
/r14100_en.htm
http://ec.europa.eu/eurostat/statistics-explained/index.php/Intra-EU_trade_in_goods_-_recent_trends
http://ec.europa.eu/trade/

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