| |
Our coverage of Mumbai, Calcutta and Chennai is
ensured by the most suitable feeder service over Singapore which connects weekly with our East South East Asia vessels.
Economic Indicator
| Population |
1.12 billion (2004) |
| GDP |
US$543 billion (2004) |
| GDP Growth Rate
|
8.3% (2004) |
| GDP Per Capita
|
US$ 547 (2004) - GDP Per Capita (PPP) US$ 3,100 |
| Inflation |
5.2% (2004) |
| Total Imports |
US$75.2 billion (CIF, 2004) |
| Total Exports |
US$61.8 billion (FOB, 2004) |
| Currency |
Indian rupee |
| Exchange Rate |
NZ$1=28 Rupees approx. |
| |
US$1=45 Rupees approx. |
Source: RBI, CSO, MoF, Asia Monitor
Overview
Since achieving independence from the British in 1947, India has created a modern economy with a largely self-sufficient agricultural sector, diversified industry and a relatively large and sophisticated financial and service sector. With its large population and a wide diversity of market segments (high, medium and low income, rural and urban groups), India provides a potentially vast market for consumer and industrial products, particularly when access is further liberalised.
India has the world's second largest population and this is growing at the rate of 1.6% per annum. Changing demographics have implications for the country's future, with the key factors being:
- The ageing of the population - The average age of 27.4 years gives a good indication of where the population is concentrated at the present. However, with a rapidly falling birth rate, the population bulge is moving upwards and will tend to be more in the household-forming group.
- An improved access to education - This same group has had better education opportunities and, with that, they preface a movement from agriculture to the manufacturing and service sectors, and are therefore driving the urban shift.
- The growing urbanisation of the population - This will create infrastructure opportunities.
The features of the current India trade policy are deregulation, simplification and transparency. With regard to imports and exports, the trend is to deregulate wherever necessary by slowly phasing out licensing restrictions and discretionary controls. Quantitative restrictions on most items have been lifted except for those items that figure in "the negative list of imports". The last remnants of the quantitative restrictions on imports were removed in April 2001. Controls through tariff mechanisms are still in place, but are expected to be reduced over time. There is a strong presence of interest groups lobbying with the government to slow down the process of India's obligation to reduce import restrictions under the WTO agreement. Most of the current high level of duties are not due to be reduced until 2006.
Indian trade policy was primarily aimed at regulating imports having regard to the development of local capability and the need to encourage domestic production through import-substitution measures. However, with the onset of liberalisation, the importance of globalisation through trade and making exports the engine of growth of the economy has been recognised.
The Indian economy is in good health, boosted in 2003/04 from better than expected monsoon rains, which had a positive effect on crops. Broad-based growth in the industrial sector is also likely to continue, led by such segments as automobiles, steel, cement, refrigerators and motorcycles. Following on from economic growth of 8% in 2003, the Reserve Bank of India was forecasting 6.5 to 7% growth for 2004. The Business Confidence Index (BCI), measured by the National Council of Applied Economic Research (NCAER), reflects this positive mood, rising to 142.8 in April 2004, 22.9 percentage points higher than in April 2003.
The Reserve Bank of India has cut interest rates to 30-year lows, while the government has reduced taxes and increased spending on infrastructure projects. All the three key sectors (agriculture, industry and services) have made positive contributions to growth during 2004. India's balance of payments moved US$ 21 billion into surplus during the first nine months of the fiscal year ending March 2004. As of 26 March 2004, India's foreign exchange reserves were worth US$ 110 billion.
^
India
Top Ten Exports, April 2001-March 2002
(Rupee Million)
| Textiles |
451,870 |
| Gems and jewellery |
348,450 |
| Engineering goods |
274,060 |
| Chemicals and allied products |
241,650 |
| Petroleum products |
101,070 |
| Agriculture and allied products |
100,920 |
| Leather products |
91,100 |
| Marine products |
58,970 |
| Electronics and computer software |
56,870 |
| Handicrafts |
44,060 |
Source: Department of Commerce, Govt. of India, Annual Report 2002-2003
^
India
Top Ten Imports, April 2001-March 2002
(Rupee Million)
| Petroleum crude and products |
667,690 |
| Machinery |
261,190 |
| Pearls, precious and semi-precious stones |
220,460 |
| Electronic goods |
190,700 |
| Organic and inorganic chemicals |
133,520 |
| Edible oil |
64,650 |
| Metal ores and scrap |
54,550 |
| Coal and coke |
52,610 |
| Professional & scientific instrument |
49,650 |
| Iron and Steel |
39,680 |
Source: Department of Commerce, Govt. of India, Annual Report 2002-2003
^
New
Zealand's Top Ten Exports to India, y/e Dec 2003
NZ $ million
| Wool |
50.3 |
| Coal |
28.7 |
| Wood (logs) |
20.4 |
| Hides, skins and leather |
17.1 |
| Industrial and electrical machinery |
10.1 |
| Butter oil |
3.2 |
| Apples and pears |
3.2 |
| Fats of bovine animals |
1.4 |
| Lactose |
1.2 |
| Waste paper |
0.9 |
| Total |
156.2 |
Source: Statistics New Zealand
The above information is an excerpt from the New Zealand Trade & Enterprise Country Briefs. For a more comprehensive
account visit:
http://www.nzte.govt.nz
^
|
|
|
|
