Page 139 - DECO303_INDIAN_ECONOMY_ENGLISH

Indian Economy

Notes extraordinary as $ 1,366 million in 1995-96 which was 4.3 per cent of total export getting in
that year. In 2005-06, exports of rice were worth $ 1,405 million which was 1.4 per cent of
total export earning in that year.
2. Ores and Minerals: The general export presentation of ores and reserves is not acceptable.
In measurement terms, the export performance of ores and mineral has improved from
4.4% in 1990-91 to 5.2% in 2005-06.
A major share of ores and minerals exports originates from the export of iron ore.
3. Manufactured Goods: The part of manufactured substances in the total export pays of
India is on the increase. In 1990-91, the share of manmade items in the total trade earnings
was about 73% of the total export earnings.

In 2005-06, the share of man-made items in the total export pays of India continued stagnant
at 72%.
The top manufactured export items include:

Engineering Goods,
Gems and Jewellery,
Chemicals and Allied products, and

Readymade Garments.
The export of engineering goods improved from $ 2,234 million in 1991-92 to $ 21,315
million in 2005-06. In proportion terms, the portion of engineering goods rose from 12.5%
in 1991-92 to 20.7% in 2005-06. Over the period 1991-92 to 2002-03, engineering goods
engaged the second position in India’s export pays after gems and jewellery. Conversely,
thereafter engineering goods have engaged the first place. In 2005-06 they donated 20.7%
(i.e. one-fifth) of total export earnings.
For most of the era since 1991, largest transfer earnings came from the exports of gems and
jewellery. The share of gems and jewellery in India’s total export was 15.3% in 1991-92 and
15.1% in 2005-06. Though, gems and jewellery industry is an extremely import demanding
industry needing large amount of imports of pearls and valuable stones.
Exports of chemicals and allied products rose expressively from $ 1,583 million in 1991-92
to $ 11,935 million in 2005-06. In percentage terms, their share stood at 11.6% in 2005-06
and they engaged the third place in India’s export earnings in this year.
In percentage terms, readymade garments preserved an almost continuous share all through
the period since 1991. They contributed 12.3% of export earnings in 1991-92 and 12.5% of
export earnings in 2000-01. In 2003-04, their share fell to 9.8% and in 2005-06 to 8.3%.

4. Mineral Fuel and Lubricants: There has been a development in the export of mineral fuels
and lubricants both in relations of value and in terms of percentage. In percentage terms,
its portion has improved from less than 2.9% in 1990-91 to 11.5% in 2005-06.
Some other facts concerning structural change in India’s export since 1991 are as follows:
(i) There is signal that during 1990s, some of Indian exports have stimulated upwards
in value addition chain whereby in its place of exporting raw materials, the country
has substituted over to export of processed goods.
(ii) There were important compositional changes within the main manmade product
groups such as engineering, goods, chemicals and allied products, etc.

134 LOVELY PROFESSIONAL UNIVERSITY