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A Study on Punjab Export Potential and Strategy
Sponsored
by
Punjab Small Industries & Export Corporation, Chandigarh
PROJECT TEAM
Rakesh Mohan Joshi Ram Singh
Jaydeep Mukherjee
March, 2015
Indian Institute of Foreign Trade (Deemed University)
B-21, Qutub Institutional Area, New Delhi
Preface
In the post liberalization era, the export sector of Indian economy made comprehensive
progress resulting in employment generation, speeding up the process of economic
development, bringing newer technologies, integrating Indian economy with global
economy in general and contributing to country foreign exchange reserves in particular.
Punjab, being an economically advanced state has attracted attention of investors,
industrialist, entrepreneurs, policy makers and agricultural scientists etc and accordingly
several studies are conducted in order to understand the nature of industries, factor
facilitating business, state innate strengths & factor endowments and suitability of business
models including sectoral studies looking at export potential of key products.
The various studies have however, neglected the issues related to exports prospects of
various sectors of Punjab’s economy. Therefore, there is a need for conduct of study to
assess, appraise and analyze the export prospects of Punjab and suggest the strategy for
exports to Punjab exporters. Accordingly, this study is commissioned at request of Punjab
Small Industries & Export Corporation (PSIEC), Chandigarh. The specific terms of reference
of the study are as follows.
a. To appraise the state’s strengths in key areas of economic activity i.e. agriculture,
industry and service sector, availability of natural resources and availability of trade
related infrastructure in the state.
b. To find out the potential sectors of exports from Punjab keeping in mind present
global environment and examining the various critical gaps that exists in factor
endowment for state for promoting exports.
c. To examine the regulatory, infrastructural and operational problems faced by
exporters in Punjab.
d. To devise the road map for potential sectors of exports for tapping global markets,
accessing new customers and executing exports orders effectively & efficiently and
suggesting the measures that can be taken in agricultural, industrial and services
sectors for faster export growth and employment.
e. To suggest & recommend the measures for boosting the exports, both merchandise
& services from Punjab including possible measures for improving and
strengthening the physical and institutional infrastructure of the state.
The study observes that the export sector of Punjab, even after enjoying innate competitive
advantages in several areas such as beverages, spirits & vinegar, residues & waste from the
food industry, organic chemicals, rubber & articles thereof, cotton, man-made staple fibres,
art of apparel & clothing access-knitted or crocheted, other made up textile articles, articles
of iron or steel, tool, implement, cutlery, spoon, nuclear reactors, boilers, vehicles of
tramway or rolling-stock, etc. is at an important crossroads and is awaiting for policy
interventions for growth, expansion and diversification.
We are highly thankful to Punjab Small Industries and Export Corporation, Chandigarh for
sponsoring the project study on “Punjab Export Potential and Strategy”. Special thanks to
Managing Director of PSIEC, Shri Amit Dhaka and Executive Director Shri Sanjeev Bawaji
for their enthusiasm and support for conduct of this study. We are thankful to various
export promotion councils especially EEPC, Textiles EPC, Wool & Wool Products EPC,
Capexil, Leather EPC, Handicrafts EPC, Cotton EPC, Pharmaxil EPC and FIEO for their whole
hearted support and help in sharing with their exporter’s directory for timely conduct of
survey and study. Special thanks to Shri Opinder Singh, EEPC Jalandhar for extending us
help in organization of stakeholders workshop at Jalandhar. We are thankful to DGCI&S,
Kolkata for sharing with us the export data of Punjab which helps us compiled this to its
conclusion. We are highly grateful to Dr. Surajit Mitra, Director IIFT for his guidance and
support in conceptualizing and implementing the research work.
New Delhi Dr. Rakesh Mohan Joshi
Dr. Ram Singh
Dr. Jaydeep Mukherjee
TABLE OF CONTENTS:
Preface Chapter 1: Introduction & Research Methodology
1.1 Introduction 1.2 Literature Review & Research Gaps 1.3 Terms Of Reference 1.4 Research Methodology
Chapter 2: Economic Profile of Punjab 2.1 Overview Of Punjab 2.2 Emerging Global Economic Scenario & Trade 2.3 Emerging Economic Scenario Of Punjab 2.4 Punjab Economic Profile: Sectoral Appraisal
2.4.1 Agriculture 2.4.2 Industries 2.4.3 Services
Chapter 3: Identification of Thrust Products for Punjab Exporters 3.1 Assessing Supply Side Capabilities For Thrust Products Of Exports From
Punjab 3.2 Understanding Demand Side Capacities Of Exportable Products 3.3 Revealed Competitive Advantage (RCA) Analysis Of Punjab’s Thrust Products
Chapter 4: Identification of thrust Markets for Punjab Exporters 4.1 Analysis Of Export Policy Regime For Thrust Products Of Punjab 4.2 Analysis Of World Import Demand (Value Wise) For Thrust Products Of Punjab 4.3 Analysis Of World Import Demand (Quantity Wise) For Thrust Products Of
Punjab 4.4 Identification Of Key Imports Markets For Thrust Products From Punjab 4.5 Analysis Of Key Competitors For Thrust Products By Punjab Exporters 4.6 Analysis Of Tariff Barriers Faced On Thrust Products By Punjab Exporters 4.7 Assessing Price Attractiveness of identified products in thrust markets
Chapter 5: Challenges for Exports from Punjab 5.1 Infrastructural Challenges 5.2 Operational Challenges 5.3 Regulatory Challenges
Chapter 6: Suggestions for Promoting Exports 6.1 For Exporters of Punjab 6.2 For Policy Makers of Punjab 6.3 For Trade Promotion Bodies
APPENDIX
TABLES & FIGURES
Table 1.1: Salient Features of Punjab Economy Vis a Vis Indian Economy
Figure 1.2: Economic Profile of Punjab
Table 1.3: Punjab Exports as Percentage of India’s Exports
Figure 1.4: Punjab Exports (INR - Crores) from 2008-09 to 2013-14
Figure 1.5: Research Framework for Study on Punjab Export Potential & Strategy
Table 1.6: Formula and Methodology for Calculation of Revealed Competitive
Advantage
Table 2.1: Snap shot of Socio-Economic Profile of Punjab
Table 2.2 Demographic Indicators of Punjab & India
Table 2.3: Significance of Punjab Agricultural Sector to Indian Economy
Table 2.4: Growth Pattern of Various Region in World Markets
Figure 2.5: India’s Exports, Imports and Trade Balance from 2011-12 to 2013-14
Figure 2.6: India’s Exports, Imports and Trade Balance from 2011-12 to 2013-14
(million US$)
Figure 2.7 Macro Economic Scenario of Punjab
Figure 2.8: Sub Sectors of Punjab GDP (in Rs. Crores) at constant prices of 2004-05
Figure 2.9: Sub–Sectoral Growth Trends (%) in Punjab Economy at constant (2004-
05) Prices
Table 2.10: Punjab Contribution of Rice & Wheat to Central Pool
Table 2.11: Key Indicators of Punjab Agriculture Sector
Figure 1.12: Market Arrivals of Wheat & Paddy in Punjab
Table 2.13: Area under Major Agricultural Crops (In ‘000 Hectares)
Figure 2.14: Production of Agricultural Crops in Punjab (In '000 Metric Tonnes)
Figure 2.15: Production of Agricultural Crops in Punjab (In '000 Metric Tonnes)
Table 2.16: Area ('000 Hectare) under Fruits and Vegetables in Punjab
Table 2.17: Estimates of Meat Production, Yield Rates from Cattle and Buffalo in
Punjab (2012-2013)
Table 2.18: Production of Eggs in Punjab (2007-2008 to 2012-2013)
Table: 2.19: Productions and Per Capita Availability of Milk
Table 2.20: Trends in Production of Fisheries in Punjab and India (2004-2005 to
2012-2013)
Table: 2.21: Punjab Agro Exports as Percentage of Total Agro Production & Total
Exports
Table 2.22: No. of Small, Medium & Large Units in Punjab and their production from
2009-10 to 2013-14
Table 2.23: Employment and Investment Scenario in Industrial Sector of Punjab
from 2009-10 to 2013-14
Table 2.24: Foreign Direct Investment (FDI) Proposals Approved in Punjab
Table 2.25: Break up of Investment Intentions in Terms of [IEMs, FILED,
LOIs/DILs]1Issued in Punjab (2014-Upto April 2014) (Rs. in Crore)
Figure 2.26: Punjab Vs India- Industrial Growth Rate & Contribution to Economy
Figure 2.27: Annual Growth in IIP of Manufacturing sector Punjab V/S India
Table 2.28: Key Producible Products in State of Punjab
Table 2.29: Trends in Punjab Industrial Exports as Percentage of Total Exports
Table 2.30: Total No. of Companies in Punjab registered under Information
Technology Act & Company Act
Table 2.31: No. of Companies Registered in Punjab by Types of Ownership
Table 2.32: Number of Products Registered under Provisions of Geographical
Indication of Goods (Registration and Protection) Act, 1999 in Punjab (As on
30.11.2012)
Table 2.33: Distribution of Formal Approvals, Notified and Exporting
Special Economic Zones (SEZs) in Punjab (As on 20.06.2014)
Table 2.34: Number of Applications Received/Approved for Setting up of Export
Oriented Units (EOUs) in Punjab (2008-2009 to 2010-2011)
Figure 2.35: Growing Role of Services Sector in Punjab SGDP
Figure 2.36: Punjab Services Sector Growth Rate Surpass Total SGDP Growth rates
Figure 2.37: Punjab Vs India: Services Sector Growth Rate (% per Annum at 2004-
05 Prices) from 2008-09 to 2013-14
Table 2.38: Growth Rate for 6 Sectors under Services Sector
Figure 3.1: Step By Step Procedure for Identification of Thrust Products for Exports
from Punjab
Table 3.2: Classification of Punjab's Top 80% Exports into High and Low-Growth
Products
Table 3.3: Punjab's Share in India's Exports
Table 3.4: World Import Demand for the Top 80% Exports of Punjab (Values Mn
USD)
Table 3.5: World Import Demand for the Top 80% Exports of Punjab (% of World's
Total Import
Table 3.6: Punjab and India's Share in Rising World Imports
Table 3.7: India's Share and Punjab's Position in Rising World Imports
Table 3.8: Punjab's Revealed Competitive Advantage in Rising World Imports
Figure 4.1: Different Phases of Analysis for Identification of Thrust Markets For
Identified Products Of Punjab
1IEMs: Industrial Entrepreneur Memoranda filed for deli censed sector, LOIs: Letters of Intent issued, DILs: Direct Industrial Licenses granted, Prop. Inv:
Proposed Investment.
Table 4.2: Value Wise Import Demand for the Top 80% Exports of Punjab
Table 4.3: Quantity Wise Import Demand for the Top 80% Exports of Punjab
Table 4.4: Top 10 Importers in the World with Market Share (%) for the Top 80%
Exports of Punjab
Table 4.5: Top 10 Exporters (Competitors for Punjab Exports) to the World with
Market Share (%) for the Top 80% Exports of Punjab
Table 4.6: Applied Average Tariff on Identified Products by Top 10 importers
Table 4.7: Table 4.7: Nominal Protection Coefficient of India vis-à-vis Top 10
Importing Countries (2013)
Figure 5.1: Challenges of Punjab Exporters
Table 5.2-Railway Network (Route Kilometres) in Punjab (As on 31.03.2013)
Table 5.3: Length of National Highways in Punjab
(As on 24.07.2014)
Table 5.4: National Highways Which Will Improve Connectivity for External Trade
Table 5.5: Modal Choice Pattern of Punjab Exporters & Associated Challenges
Table 5.6: Actual Power Supply Position In Terms Of Energy Requirement Vis-À-Vis
Energy Availability Of Various States/ Systems During The Year 2013-14
Table 5.7: Consumer Category-wise Average Power Tariff in Punjab (2013-2014)
Table 5.8: Existing Infrastructure of Dry Ports in Punjab
Table 5.9: Time and Costs in Trading Across Borders for Punjab Exporters
Exhibit 5.10: VAT Refunds - Punjab Exporters Complains of Delay and Red-Tape
Table 5.11: Punjab Bicycle Industry faces Acute Labour Shortage
Table 5.12: Ludhiana (Punjab) Rank on Key Indicator for Ease of Doing Business in
India
Table 5.13: No. of Procedure, Take taken and Associated Costs for Starting a New
Business in Punjab
Table 5.14: Prevalent Tax Rates for Various Manufacturing, Trading and Services
Activities in Punjab
LIST OF ACRONYM
ARE-2: Application for Claim of Rebate of Central Excise
AEZ: Agri-Export Zones
ASI: Annual Survey of Industries
ASEAN: Association of South East Asian Nations
CONCOR: Container Corporation of India
CAGR: Compounded Average Growth Rate
BTP: Bio Technology Parks of India
CFS: Container Freight Stations
CSO: Central Statistical Organization
CIF: Cost Insurance & Freight
DGCI&S: Director General of Commercial Intelligence & Statistics
DGFT: Director General of Foreign Trade
EOU: Export Oriented Units
EPC: Export Promotion Councils
EEPC: Engineering Export Promotion Council
EU: European Union
EPCG: Export Promotion Capital Goods
FOB: Free on Board
FTA: Free Trade Area
FDI: Foreign Direct Investment
GCF: Gross Capital Formation
GDP: Gross Domestic Product
GADVASU: Guru Angad Dev Veterinary and Animal Sciences University
GOI: Government of India
HA: Hectare
ITPO: Indian Trade Promotion Organization
IGM: Import General Manifest
ICD: Inland Container Depot
IIP: Index of Industrial Production
IT: Information Technology
IIFT: Indian Institute of Foreign Trade
INR: Indian Rupees
ITC (HS): International Trade Classification (Harmonized System)
IMF: International Monetary Fund
KWH: Kilo Watt
KM: Kilo Metre
KGS: Kilo Grams
LR: Literacy Rate
LCS: Land Custom Station
L&M: Large & Medium
MW: Mega Watt
MDA: Market Development Assistance
MOSPI: Ministry of Statistics & Plans Implementation
MKWH: Million Kilo Watt
MAI: Market Access Initiatives
MSME: Micro, Small & Medium Enterprises
NA: Not Available
NTB: Non-Tariff Barriers
NDA: National Democratic Alliance
NPC: Nominal Protection Coefficient
NH: National Highway
OECD: Organization of Economic Cooperation & Development
PACF: Punjab Agro Food grains Corporation
PAU: Punjab Agricultural University
PSIEC: Punjab Small Industries & Export Corporation
PPP: Public Private Partnership
PSWC: Punjab State Warehousing Corporation
RCA: Revealed Competitive Advantage
SEZ: Special Economic Zone
SGDP: State Gross Domestic Products
SWOT: Strengths, Weaknesses, Opportunities & Threat
SQ. KM: Square Kilo Meters
TUFS: Technology Up gradation Fund Scheme
WEO: World Economic Outlook
R&D Research & Development
RBI: Reserve Bank of India
SSU: Small Scale Units
STPI: Software Technology Parks of India
USD: US Dollars
UN: United Nations
USA: United States of India
WITS: World International Trade Statistics
VAT: Value Added Tax
A Study on Punjab Export Potential and Strategy
CHAPTER 1:
INTRODUCTION & METHODOLOGY
1.1 INTRODUCTION: Post liberalisation, the export sector of Indian economy made
comprehensive progress resulting in employment generation, speeding up the process
of economic development, bringing newer technologies, integrating Indian economy
with global economy in general and contributing to country foreign exchange reserves
in particular. This has helped India to service imports bill, debt bills, liberalise trade
policy regime, speed up the process of economic development and enhance economic
activity in all areas, i.e. manufacturing, trading and services. India’s exports has
although slowed down due to global economic downturn but has fairly done well in
comparison to similar developing countries. India’s exports for the financial year 2013-
14 are US$ 325 billion in 2013-14, registering a growth rate of 8.33% from last financial
year. Imports for the period 2013-14 were $ 466 billion and witnessed a slower growth
as compared to last few years mainly due to curbs imposed on gold imports and
stabilization of oil prices in world markets. Exports as well imports has witnessed
positive growth trajectory in the year 2014 mainly due t o improvements in business
sentiments with change in government, lower oil prices and reduced gold imports. As a
result of these macroeconomic developments, there has been reduction in trade deficit
which has reached at alarming levels in year 2012-13. Policy makers has greater scope
to leverage policy instruments for future growth as there is lower pressure on current
account deficit, foreign exchange reserves and comparatively reduced volatility of
Indian rupee in international financial markets.
With change in guard at centre under NDA government, there is renewed focus on
improving business environment, attracting foreign investments, enhancing domestic
production and promoting exports. New regime strongly believe that states has to be
partner in India’s export growth story and accordingly it is desired to involve states for
export promotion with identification of products and markets suitable for exports
keeping in minds the economic profile of each state. Punjab is one such state that is
economically developed and can contribute to India’s growth story in addition to
improving its own economic profile in areas such as speedier industrialization,
promoting employments, generating additional economic activity and ensuring
balanced and sustainable socio-economic development of state.
The state of Punjab is located in North-Western part of the country and is a
economically advanced than other states of India on several economic parameters
(Table 1.1). The economic base of Punjab state is largely agricultural as it is one of the
most fertile regions on the earth. The region is ideal for wheat-growing, rice, sugar cane,
fruits and vegetables are also grown. Indian Punjab is called the “Granary of India” or
“India's bread-basket”. The salient features of Punjab Economy vis-a-vis Indian
economy (2012-13) can be summarised as under.
A Study on Punjab Export Potential and Strategy
Table 1.1: Salient Features of Punjab Economy Vis a Vis Indian Economy
Parameter Punjab India
State Of Economy
GSDP as percentage of all states of
India
3.4 100
Average GSDP growth rate Vs India 5.19% 5.00%
Per capita GSDP ($) 1475 1302
Physical Infrastructure
Installed Power capacity (MW) 7019 173626
GSM Cellular Subscribers (No) 21452916 618284322
Broad Band Subscribers (No) 523508 10737850
National Highways Lengths (KM) 1557 70934
Airports (no) 4 133
No. of Dry Ports (ICD/CFS/LCS) 6 268
Social Indicators
Literacy Rates (%) 76.7 74
Birth Rate ( Per 1000 Population) 17 22.5
Investment Scenario
FDI Equity Inflows ( $ Billions) 1.0 132.9
Outstanding Investments ( $ Billions) 116.7 7449
Industrial Infrastructure
PPP Projects (no) 35 808
SEZ (no) 2 380
Agriculture Production
(000 Metric Tonnes) Million Metric tonnes
Wheat 15169 80.71
Rice 11236 89.13
Cotton (bales of 170 Kg Each) 2006 23.94
Maize 475 16.68
Sugarcane 370 277.75
Oilseeds 84 15.66
Barley 47 1.30
Gram 3 7.35
Source: Economic Survey of India/ Economic Survey of Punjab / India Brand Equity Fund (2012-13)
Punjab produces 20% of India's wheat, and 9% of India's rice. Similarly, Punjab
produces 2% of the world's cotton, 2% of world’s wheat and 1% of the world’s rice. The
state has essentially an agrarian economy with a lower industrial output as compared to
other states of India. A prominent feature of the industrial scenario of the Punjab is its
small sized industrial units. In the year 2013-14, there are nearly 194,000 small scale
A Study on Punjab Export Potential and Strategy
industrial units in the state in addition to 586 large and medium units. Ludhiana is an
important centre for industry. The state economy and important production bases of
the state can be summarized as under.
Figure 1.2: Economic Profile of Punjab
Source: Punjab Industrial Review, United Nations Industrial Development Organization
Being in country hinterland, Punjab is in disadvantageous situation as far as external
sector engagement in terms of merchandize and services exports are concerned.
However, it has been the “entrepreneurship skills” and “innate commitment” of the
people of state which has been instrumental in progress of Punjab. Improvement in
relations Pakistan and recent opening of border routes for trade with Pakistan coupled
with setting up a dedicated integrated, round the clock trade check-post has opened
new vistas of opportunity for state of Punjab. Heralding this change are more and more
entrepreneurs, industrialists and investors with vision from across the globe. Punjab
export as percentage of India’s exports is tabled as under.
Table 1.3 : Punjab Exports as Percentage of India’s Exports
Year 1980-81 1991-92 2009-10 2010-11 2011-12 2012-13 2013-14
Punjab
Exports (Rs.
Crore)
162.17 900.81 12962 19436 28256 35311 42729
India’s
Exports
(Rs. Crores)
6711 32558 845533 1142921 1465959 1634318 1905011
State’s Share
in India’s
Exports (%)
2.41 2.76 1.53 1.70 1.92 2.16 2.24
Source: Director General of Commercial Intelligence & Statistics, Kolkata 2014
Punjab has been consistently trying to improve its exports both in merchandise as well
as services sector. Progress in merchandise sector has been good however the same has
not been achieved in case of services sector. The primary reason for low services sector
export has been the different factor endowment of state and lack of reasoned policy
interventions. The export of Punjab in recent four years is diagrammed as under:
Economic Profile of Punjab
Agro Based Industries Machinery Industries Chemical Industries
A Study on Punjab Export Potential and Strategy
Source: Director General of Commercial Intelligence, Kolkata 2014
1.2 LITERATURE REVIEW & RESEARCH GAPS: Punjab, being an economically
advanced state has attracted attention of investors, industrialist, entrepreneurs, policy
makers and agricultural scientists etc and accordingly several studies are conducted in
order to understand the nature of industries, factor facilitating business, state innate
strengths & factor endowments and suitability of business models including sectoral
studies looking at export potential of key products. Department of Planning,
Government of Punjab publishes the “Economic Survey of Punjab” each year which
provides vital information on the overall nature of economy and achievements in
different areas of economic and social activity. It also brings out important important
statistical abstract, statistical atlas, newsletters etc which throw light on emerging
challenges that economy of Punjab faces in changing global economic environment.
“Punjab Industrial Review” which was carried out by United Nations Industrial
Development Organization in 2007-08 in collaboration with Department of Industrial
Policy and Promotion appraise the industrial challenges that state of Punjab faces. The
report is more focussed to assess, appraise and analyze the factors that hinder Punjab
industrial growth, scan prospects and suggest way forward by conducting the SWOT
analysis of key sectors of Punjab economy. However, the report does not focus on the
issues related to external engagements of Punjab industries i.e. international trade.
Agro Economic Research Centre, (PAU – Ludhiana) study no. 30 entitled “State
Agricultural Profile- Punjab” carried by Jasdev Singh, D.K. Grover & Tejinder K. Dhaliwal
(2012)is scholarly work explaining important agricultural issues such as structure and
performance of Punjab agriculture, farm inputs management and natural resources
management. The study sheds important insights on challenges faced by Punjab
agricultural farmers and suggests way forward to address such challenges. This study
also completely neglect the issues related to export prospects of agro products and
address only domestic issues which are more structural than operational.
0 5000 10000 15000 20000 25000 30000 35000 40000 45000
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
Figure 1.4: Punjab Exports (INR - Crores) from 2008-09 to 2013-14
A Study on Punjab Export Potential and Strategy
Harpreet Singh & Manish Bansal (2013) in their research paper entitled “Major
problems and prospects of Food Industry of Punjab” scan the macro level issues affecting
the growth and development of Punjab. Even this paper does not include the issues
related to exports of processed foods from Punjab. Ashok Gulati (2002) in his research
paper entitled “Challenges to Punjab Agriculture in Globalizing World” raised the issues
related to traditional methods of agriculture suggested the ways and means for
modernization of Punjab agriculture in a changing global environment. Raj Kumar
Gautam & Raghbir Singh (2012)in their study entitled “Liberalization Impact on Small
Scale of Industries- An Empirical Evidence from Punjab” analysed the impact of various
liberalization polices in Punjab small scale industries and has suggested the way and
means for improving the efficiency of Punjab small scale industries.
The various studies discussed as above have neglected the issues related to exports
prospects of various sectors of Punjab economy in today’s globalizing world. Therefore,
there is need for conduct of study to assess, appraise and analyze the export prospects
of Punjab and suggest the strategy for exports to Punjab exporters. Accordingly, this
study is commissioned at request of Punjab Small Industries & Export Corporation
(PSIEC), Chandigarh.
1.3 TERMS OF REFERENCE: In this context, it will be worthwhile to explore the export
potential of state so that state can be brought under the export map of India and
contribute towards enhancing the country’s exports. In reference to that, the terms of
reference of study are as follows.
a. To appraise the state’s strengths in key areas of economic activity i.e. agriculture,
industry and service sector, availability of natural resources and availability of
trade related infrastructure in the state.
b. To find out the potential sectors of exports from Punjab keeping in mind present
global environment and examining the various critical gaps that exists in factor
endowment for state for promoting exports.
c. To examine the regulatory, infrastructural and operational problems faced by
exporters in Punjab.
d. To devise the road map for potential sectors of exports for tapping global
markets, accessing new customers and executing exports orders effectively &
efficiently and suggesting the measures that can be taken in agricultural,
industrial and services sectors for faster export growth and employment.
e. To suggest & recommend the measures for boosting the exports, both
merchandise & services from Punjab including possible measures for improving
and strengthening the physical and institutional infrastructure of the state.
1.4 RESEARCH METHODOLOGY: Research Methodology for the project is tree tier
which are to research, evaluate and to suggest the way forward for promotion of
exports from Punjab. Figure as under depict the research methodology used both at
primary level and secondary level with requisite research tools, questionnaire etc.
A Study on Punjab Export Potential and Strategy
Figure 1.5: Research Framework for Study on Punjab Export Potential & Strategy
Step 1: Step by Step Research Process: The purpose of identifying “Thrust Products”
is to identify potential trade opportunities that may arise for Punjab. For this a detailed
analysis needs to be carried out to identify specific products that Punjab can be
exported at competitive prices. The analysis involves:
a. Statistical Analysis for Product wise export trends (HS 6 digit)of the top 80
percent of the exportable by Punjab to the rest of the world. The reference
period is 2009-10 to 2013-14. Identify those products that exhibit an increasing
export trend (if share of exports is increasing in at least 3 years) and those that
exhibit a decreasing trend or a stagnant growth (if share of exports is decreasing /
stagnant in at least 3 years). The analysis provides an assessment of the existing
export scenario of Punjab.
Step1: Research Secondary & Primary
Sources
•Objectives•To find out exportable thrust products •To find out thrust markets
•Research Techniques:• Statistical Analysis for supply & demand
capabilities
Step 2: Evaluate Export
Competetiveness
•Objectives: •Export Competetiveness of Identified
products •Research Technique :
• Revealed Competetive Analysis•Nominal Protection Co-efficient (NPC)
Step 3: Strategy for Exportable
Products
•Suggestions: •For Policy Makers• For Exporters of Punjab
A Study on Punjab Export Potential and Strategy
b. Examine the product wise export trends (HS 6 digit) of India to the world. The
reference period is 2009-10 to 2013-14. This analysis provides an assessment of
the supply capabilities of India.
c. Examine the world import demand for the top 80% exports from Punjab as
part of the demand-side analysis. The reference period for analysis is taken as
2008-09 to 2013-14. Classify the products have been classified into two categories:
one that exhibit an increasing world import share (if share of world import
demand is increasing in at least 3 years) and those that exhibit a decreasing import
share (if share of world import demand is decreasing in at least 2 years).
d. For the tariff lines for which the import demand from the world exhibits an
increasing trend, India's share in world's imports, Punjab's exports’ share in
India’s total exports and Punjab's share in world's imports will be examined.
Identify those products as Priority 1 export category for which India’s share in
world import demand is rising and Punjab’s share in India’s exports is also rising.
Products for which India’s share in world import demand is falling but Punjab’s
share in India’s exports is rising, constitute the Priority 2 export category
products from Punjab.
e. Conduct competitiveness analysisof Punjab’s major exportable (in rising
world imports) using Revealed Competitive Advantage (RCA). For this
purpose, the RCA of India of the Punjab’s identified products will be calculated. The
reference period for this analysis is 2009-10 to 2013-14. A product will be defined
as export competitive if the RCA ratio is found to be greater than 1 for 3 years or
more during the reference period.
Table 1.6: Formula and Methodology for Calculation of Revealed Competitive
Advantage
The revealed comparative advantage is an index used in international economics for
calculating the relative advantage or disadvantage of a certain country/ state in a
certain class of goods or services as evidenced by trade flows. RCA = (Eij / Eit) / (Enj /
Ent)
WHERE:
E Exports
i Country index
n Set of countries
j Commodity index
t Set of commodities
That is, the RCA is equal to the proportion of the country's exports that are of the class
under consideration (Eij / Eit) divided by the proportion of world exports that are of
that class (Enj / Ent).
A comparative advantage is “revealed” if RCA>1. If RCA is less than unity, the country is
said to have a comparative disadvantage in the commodity or industry.
A Study on Punjab Export Potential and Strategy
Identification of Thrust Export Destinations for Punjab: Once the thrust products
have been identified, the next step involves identifying the “Thrust Countries” for
Punjab’s identified exportable. The objective of this analysis is to examine the feasibility
of export market diversification for Punjab and at the same time compare the price
competitiveness with the competing countries. The analysis involves:
a. Identify the thrust export market for Punjab for each of the identified
exportable. The objective of this analysis is to examine the feasibility of export
market diversification for Punjab. The analysis involves the top 10 importing
countries for each of the identified exportable from Punjab thus suggesting the key
markets where the identified products from Punjab can be exported. The reference
period is 2013-14.The analysis provides an assessment of the existing export
destinationsfor Punjab for each of the identified product.
b. Identify the major competitors of India for each of the identified exportable.
For this, the top 10 exporting countries for each of the export interest item of
Punjab will be studied. The reference period is 2013-14.
c. An analysis of tariff barriers faced on thrust products by Punjab
exporterswill also be carried out.
Step 2- Step by Step Evaluation Process: Calculate Nominal Protection Coefficient
(NPC). For this purpose first take the FOB price of Punjab “Identified products” at
National level find out coefficient with comparing with prices of Identified products of
Punjab. Logistics cost at 12% has to be added in Punjab “identified products”.Nominal
protection coefficient is the ratio between the price realized for a “Identified product”
(FOB) at the time of export from the country and the price of “identified products” of
Punjab plus normal logistics cost to commonly used maritime port. A ratio > 1 indicate
that exports from state are not competitive and if it is < 1, it is considered that the same
are competitive.
Step 3- Strategy for Exportable Products: Specific cases of identified products shall be
developed by clearly listing the strengths, weakness, opportunities and threats for each
of the identified products. Strategy for border trade to Pakistan shall also be explained
by clearly listing the opportunities for border trade including the products areas that
are still under negative list for border trade. Cases will help exporters to understand the
issues involved in identified areas of exportable products from Punjab.
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CHAPTER 2:
ECONOMIC PROFILE OF PUNJAB
2.1 OVERVIEW OF PUNJAB: The state of Punjab is one of the most vibrant and dynamic
state in the whole of India. It is located in North Western part of the country and is called as
the “Land of Five Rivers”. The word ‘Punjab’ comprises of two words; “punj” meaning five
and “ab” meaning water, thus called as the land of five rivers. These five rivers are
Sutlej, Beas, Ravi, Chenab and Jhelum. Punjab is the land of great socio-economic prosperity
and has rich heritage & culture. The plains of Punjab, with their fertile soil and adequate
water supply, are naturally suited to be the ‘breadbasket’ or ‘granary of cereals’ for India.
The state has achieved tremendous growth after the independence primarily due to
success of the Green Revolution, however the economy of Punjab has faced several
challenges in two key areas of economic activity that is the challenges to its agricultural &
industrial sectors and as a result the economic growth in recent years has been slower than
expected potential. Punjab is an important state of India with higher economic and social
indicators in comparison to other key states. The snap shot of socio-economic profile of
Punjab and associated indicators is depicted in Table 2.1 as under:
Table 2.1: Snap shot of Socio-Economic Profile of Punjab
S. No. Economic Description Unit Status
1 Geographical Area Sq. Km 50362
a. Rural Area Sq. Km 48265 (96%)
b. Urban Area Sq. Km 2097 (4%)
c. Area under Forests Sq. Km 3050 (6%)
2 Administrative Set Up
a. Divisions No. 5
b. Districts No. 22
c. Sub-Divisions No. 82
d. Tehsils No. 82
e. Sub-Tehsils No. 85
f. Blocks No. 146
g. Seats in Rajya Sabha No. 7
h. Lok Sabha Constituencies No. 13
i. Vidhan Sabha Constituencies No. 117
j. Towns $- Census 2011 No. 143
k. Census Towns- 2011 No. 74
l. Inhabited Villages -Census 2011 No. 12581
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Table 2.1: Snap shot of Socio-Economic Profile of Punjab (contd.)
m. Zila Parishads No. 22
n. Municipal Committees No. 143
o. Improvement Trusts No. 23
3 Population(Census-2011)
a. Total Population Lakh 277.43
b. Male population Lakh 146.39
(52.8%)
c. Female population Lakh 131.04
(47.2%)
Rural Population 2011 Lakh 173.44
Percentage of rural to total population % 62.52
Urban Population Lakh 103.99
Percentage of urban to total population % 37.48
Density Per sq.km 551
a. Highest density(Ludhiana) -do- 978
b. Lowest density(Sri Muktsar Sahib) -do- 348
Literate and Educated Persons ** No. 18707137
a. Literacy(Total) % 75.8
b. Male % 80.4
c. Female % 70.7
Sex ratio(Female per 1000 Males) No. 895
a. Highest (Hoshiarpur) No. 961
b. Lowest (Bathinda) No. 868
c. Decennial growth rate 2001-2011 % 26.1
4 Poverty Estimates 2011-12
Poverty Line for 2011-12 Monthly Per
Capita
a. Rural Rs. 1054
b. Urban Rs. 1155
Population below Poverty Line 2011-12 % 8.26
a. Rural % 7.66
b. Urban % 9.24
Per Capita Income(at current prices)
a. 2011-12 Rs. 76895
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Table 2.1: Snap shot of Socio-Economic Profile of Punjab (contd.)
c. 2012-13 Rs. 84526
d. 2013-14 Rs. 92638
Per Capita Income (at constant 2004-05
prices)
a.
a. 2011-12 Rs. 46325
b. 2012-13 Rs. 47834
c. 2013-14 Rs. 49411
5 Agriculture(2012-13)
a. Net Area Sown 000 Hectare 4134
b. Total cropped area 000 Hectare 7902
c. Cropping Intensity*** % 191
Production of crops (2012-13)
a. Total cereals ‘000’ M ton 28490
b. Total pulses " 12
c. Total food grains " 28502
d. Total oil seeds " 70
Gross Area Irrigated 000 Hectare 7771
6 Energy(2012-13)
a. Consumption of Electricity MKWH 35742
b. Per Capita Consumption of Electricity KWH 1257
c. Percentage of electrified villages to
total 12581 inhabited villages
% 100
7 Commercial Banks In Punjab
a. Scheduled Banks No. 4700
b. Non-Scheduled Banks No. 26
8 Cooperation (2011-12)
a. Cooperative Societies No. 19415
b. Membership Lakh 51.41
c. Working Capital Rs. Crore 57127.17
9 Animal Husbandry(2012-13)
a. Veterinary Hospitals No. 1367
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b. Permanent outlaying dispensaries
and insemination units
No. 1485
c. Veterinary Hospitals under Zila No. 582
Table 2.1: Snap shot of Socio-Economic Profile of Punjab (contd.)
Parishads
d. Area stocked with fish Hectare 11686.59
e. Total live stock(Animal census-2007) Thousand 7331
f. Total poultry(Live stock census-2007) Thousand 18900
10 Factories Covered Under Annual Survey
Of Industries (ASI) 2011-12
a. No. of factories No. 12593
b. Fixed Capital Rs. Lakh 3734564
c. No. of employees No. 600041
d. Net value added Rs. Lakh 3293897
11 Miscellaneous (2012-13)
a. Post offices No. 3850
b. Police Stations/Police Posts No. 545
c. Milk plants No. 79
d. Telephone connections No. 959661
e. Telephone Exchanges No. 1496
Source: Statistical Abstract of Punjab 2013 and accessed on December 13th, 2014
According to 2011 census, the population of Punjab stands at about 27 million, making it
the 15th most populated state in India. The state is spread over an area of about 50000 sq.
km. making it the 18th largest state in the country in terms of area. The density of
population per sq. Km. is about 550 which is inevitable given the opportunities of growth
and development in the state (refer appendix 2.1). The state has SGDP growth rate (at
current prices) of about 13% which is below the national average of 17%. The population
of the state is rising considerably due to rapid efforts towards development, progress and
resultant migration. The literacy rate in the state is about 73%, a figure that has improved
tremendously in the last few years due to the consistent efforts of the state government.
The sex ratio in Punjab leaves a lot to be desired as it lags behind the national average by a
lot of points. The statistics in the Punjab Census 2011 reveal facts that can be instrumental
in planning for a better development plan for the state. Table 2.2 as under gives key
demographic and their comparison with pan-India numbers.
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Source: Punjab Statistical Atlas 2014 and accessed on December 13th, 2014
The present state of Punjab came into being after being organized into three smaller states;
these are Haryana, Himachal Pradesh and present day Punjab. It has witnessed another
division earlier at the times of independence when Punjab state was divided into India and
Pakistan. The geographical area of present Punjab is much smaller than what it used to be
before independence. This North-West state of Punjab is bordered by the Indian states
of Himachal Pradesh in the east, Haryana to the south and southeast, Rajasthan to the
southwest, the Pakistani province of Punjab to the west, and Indian state of Jammu and
Kashmir in the north. Most of the Punjab lies in an alluvial plain with many rivers and an
extensive irrigation canal system. The southwest of the state is semiarid, eventually
merging into the Thar Desert. The Shiwalik Hills extend along the north-eastern part of the
state at the foot of the Himalayas. Except in the north, where there are forested mountains
yielding salt and coal, the Punjab is a level alluvial plain, very fit for agricultural production.
There has been decline in rainfall in recent years and is also irregular, but extensive
irrigation systems using the waters of the great rivers have made possible enormous
agricultural production of key crops. The contribution of Punjab especially in agricultural
sectors is immense and same is evident from Table 2.3 as under:
Table 2.3: Significance of Punjab Agricultural Sector to Indian Economy
Item Unit 2010-11 2011-12 2012-13 2013-14
Food Grain
Production
(000 tonne) 27846 29085 28502 27801
Contribution to Central Pool
Wheat (Lakh Tons) 102.1 109.6 128.3 108.97
Table 2.2 Demographic Indicators of Punjab & India
Indicators Unit Punjab India
1 Geographical Area Lakh Sq. Km 0.50 32.87
2 Population Crore 2.77 121.02
3 Decadal Growth Rate Percentage 13.88 17.64
4 Density of Population Population/Sq. Km. 550 382
5 Urban to Total Population Percentage 37.48 31.16
6 Sex Ratio Females/1000 Males 893 940
7 Literacy Rate (LR) Percentage 76.7 74.04
8 Death Rate Per 1000 Mid-year Pop. 6.8 7.1
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Rice (Lakh Tons) 86.3 77.3 85.6 81.06
Share to Central Pool
Wheat % 45.4 38.7 33.6 43.4
Table 2.3: Significance of Punjab Agricultural Sector to Indian Economy (contd.)
Rice % 25.3 22.1 25.1 29.3
Net
Irrigated
Area
000 Hectare) 4070 4086 NA NA
Cropping
Intensity
(Percent) 189.56 191.14 NA NA
Source: Punjab Economic Survey 2013-14 and accessed on December 13th, 2014
Punjab is unambiguously one of the most wonderful states in India with regards to the
climate. The state has fabulous weather throughout the year which is also conducive for the
growth of a variety of crops. Wheat (by far the leading crop), millet, barley, cotton, and
sugarcane are grown, and there are extensive fruit orchards. The soil characteristics of
state of Punjab are influenced to a limited extent by the topography, vegetation and parent
rock. Punjab is divided into three distinct regions on the basis of soil types: south-western,
central, and eastern. Punjab's climate is characterized by extreme hot and extreme cold
conditions. Annual temperatures in Punjab range from 1 °C to 46 °C (min/max), but can
reach 49 °C in summer and 0 °C in winter.
Punjab is well connected by all modes of transport except water transport. It has one
international airport located in Amritsar and another airport located at Union Territory of
Chandigarh providing easy access for trade & logistics. The road and railway networks are
also excellent when compared to other competing states of India; however being located at
hinterland, away from maritime ports, put Punjab in disadvantageous position. Virtual
infrastructure in terms of telephony and internet access is also very good in Punjab. The
state of Punjab has 22 districts which comprise sub-divisions, tehsils and blocks (Table
2.1). These are Amritsar, Bathinda, Faridkot, Fatehgarh Sahib, Barnala, Fazilka, Firozepur,
Gurdaspur, Hoshiarpur, Jalandhar, Kapurthala, Ludhiana, Pathankot, Mansa, Moga,
Muktsar, Nawan Shehar, Patiala, Roop Nagar, Ajitgarh and Sangrur. Fazilka and Pathankot
are newly built districts in Punjab in 2013, as a result, total number of districts has become
22 comprising of 157 towns and 12,278 inhabited villages. The state capital of Punjab is
Chandigarh.
2.2 EMERGING GLOBAL ECONOMIC SCENARIO & TRADE: The macroeconomic indicators
of the economy of Punjab in context of present global economic scenario are positive and
economic growth in recent years has been good. However there are structural issues that
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need to be addressed by policy makers failing which benefits, arising out of changing
economic scenario at national level under new government and signs of revival in global
economy, cannot be reaped-out. As is evident from global economic clues, the global
macroeconomic scenario has shown signs of improvement during 2013-14 and is expected
to recover further in 2014-15 after a protracted period of economic slowdown due to sub-
prime crisis and Euro area meltdown. The World Economic Outlook (WEO) update
released by the IMF in April 2014 has projected the global growth to strengthen from 3 per
cent in 2013 to 3.6 per cent in 2014 and further to 3.9 per cent in 2015, with advanced
economies contributing much of the impetus for growth recovery. The emerging market
and developing economies including India are projected to contribute more than two-
thirds of global growth, with growth expected to pick up gradually from 4.7 per cent in
2013 to about 4.9 per cent in 2014 and further to 5.3 per cent in 2015. The growth pattern
in various regions (Table 2.4) of the world is projected to be as under:
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Table 2.4: Growth Pattern of Various Region in World Markets
2003 2011 2012 2013 2014 2003-2013
average (GDP,
constant prices,
% change)
World 3.7 3.9 3.2 3.5 4.1 3.8
Advanced Economies 2.0 1.6 1.3 1.4 2.2 1.6
Euro Area 0.7 1.4 1.0 1.1
Other Advanced
Economies
2.7 3.3 1.9 2.7 3.3 3.2
Newly Industrialized
Asian Economies
3.2 4.0 1.8 3.2 3.9 4.0
Emerging Market and
Developing
Economies
6.3 6.3 5.1 5.5 5.9 6.5
Central and Eastern
Europe
4.8 5.3 1.8 2.4 3.1 4.0
Commonwealth of
Independent States
7.7 4.9 3.6 3.8 4.1 5.1
Developing Asia 8.1 8.0 6.6 7.1 7.5 8.5
ASEAN-5 5.8 4.5 5.7 5.5 5.7 5.3
Latin America and
the Caribbean
2.1 4.5 3.0 3.6 3.9 4.0
Middle East and
North Africa
7.5 3.5 5.2 3.4 3.8 5.0
Sub-Saharan Africa 4.8 5.3 4.8 5.8 5.7 5.6
Source: Global Finance Magazine, 2014 and accessed on December, 13th 2014
In addition to improvements in global economic environment, India’s external sector
witnessed significant improvement during 2013-14 (Figure 2.5). With a pick-up in exports
and moderation in imports, trade deficit contracted significantly during the year as
compared to that in the preceding year. Some pick-up in economic growth of trade partner
countries coupled with depreciation of the Indian rupee helped India’s exports to grow in
2013-14. India’s exports started improving in July 2013, though the uptrend in exports was
temporarily abated in February and March 2014. It subsequently witnessed upward trends
in September-October (Figure 2.6) followed by again downward trends in November-
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December 2014. Exporters are keenly looking at announcement of new Foreign Trade
Policy for the period 2015-19. Imports also moderated since June 2013, largely driven by
fall in gold imports and lower non-oil non-gold imports reflecting slowdown in domestic
economic activities and decline in international prices of some commodities especially that
of metals and oil. This led to a narrowing of India’s trade deficit by about 28 per cent in
2013-14. In the light of these global and national economic developments, the
macroeconomic environment at external sector is favourable for exporters of Punjab to
expand and diversify their trade operations in international markets. The yearly trends in
India’s exports, imports and trade balance are given in Figure 2.5 as under:
Figure 2.5: India’s Exports, Imports and Trade Balance from 2011-12 to 2013-14
Source: Director General of Commercial Intelligence, Kolkata accessed at RBI database on 4th Jan. 2015
India’s merchandise exports improved in 2013-14, although the pace of export growth was
largely uneven. After declining in Q1, exports recovered in Q2 and continued to grow in Q3
albeit at slower pace finally declining in Q4 during 2013-14. On cumulative basis, India’s
exports grew by 4.1 per cent to US$ 312.6 billion in 2013-14 as against a decline of 1.8 per
cent at US$ 300.4 billion in 2012-13. Moderation in merchandise imports which began in
June 2013 intensified further in Q3 of 2013-14 but the pace of decline moderated
marginally in Q4 of 2013-14. On cumulative basis, India’s merchandise imports at US$
450.1 billion recorded a decline of 8.3 per cent in 2013-14 as compared with a marginal
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increase of 0.3 per cent in 2012-13. In India, policy measures aimed at curbing gold
imports, as well as weaker domestic demand for non-oil non-gold imports, caused fall in
merchandise imports during the period. The month on month progress of India exports,
imports and trade balance is given in figure 2.6 as under:
Figure 2.6: India’s Exports, Imports and Trade Balance from 2011-12 to 2013-14
(million US$)
Source: Director General of Commercial Intelligence, Kolkata accessed at RBI database on 4th Jan. 2015
2.3 EMERGING ECONOMIC SCENARIO OF PUNJAB: The political economics of Punjab
development plans is predominantly centered around the agriculture sector which
contributes far lesser than other sectors such as industrial and services, and as a result it is
having a low industrial output than expected potential. Lack of political will for promotion
of industrial sectors coupled with scarcity of the basic minerals including fuels, is the
principal cause for poor industrial progress. Even after lower sectoral contribution,
agriculture is considered as foremost constituent of the Punjab economy, primarily due to
large dependence of population on agriculture along with contribution it makes for cereals
and other crops for food grains needs of country. The state is world famous for its huge
production and productivity of wheat, rice and milk. The agro-based industries include
food products, beverages, cotton, wood as well as papers. The economic growth of Punjab
has been in line with national economic trends and achievements. Punjab economy grew at
around 6.5% in 2010-11 and 2011-12, witnessed a down trend in the year 2012-13 when
state GSDP grew merely at 4.63% and has again witnessed the upward trend in 2013-14
when state economy has grown by around 5.24%. In absolute terms, the state economy has
grown from Rs. 147670 Crores to Rs. 173221 crores at base of 2004-05. Gross State
Domestic Product at current prices is Rs. 317054 crores in 2013-14, which has grown from
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Rs. 256374 crores in 2012-13. Figure 2.7 as under depicts the macroeconomic scenario of
Punjab from 2010-11 to 2013-14.
Figure 2.7: Macro Economic Scenario of Punjab
Punjab GSDP (Rs. Crores) at Current &
Constant Prices
Punjab State Economic Growth at Current &
Constant Prices
Source: Economic Survey of Punjab 2013-14
2.4 PUNJAB ECONOMIC PROFILE: SECTORAL APPRAISAL:
At constant prices (2004‐05) the GSDP from agricultural sector, which comprises mainly of
agriculture and livestock activities, has increased from Rs. 35905 crores in 2011‐12 to Rs.
35953 crores (Figure 2.8). During 2012‐13 the agricultural sector registered a growth rate
of 0.14 % as compared to 1.81 % in 2011‐12. According to estimates, it is expected to be Rs.
36113 crores in 2013‐14 showing a growth rate of 0.44 %.
Figure 2.8: Sub Sectors of Punjab GDP (in Rs. Crores) at constant prices of 2004-05
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Source: Economic Survey of Punjab 2013-14
At constant prices (2004‐05), the GSDP from the industrial sector which covers the
manufacturing, construction and electricity sectors has increased from Rs. 46520 crores in
2011‐12 to Rs. 47800 crores during 2012‐13 registering a growth rate of 2.75 % as
compared to 2.38 % in 2011‐12. As the figure 2.8 as above estimates, it has grown to Rs.
49017 crores in 2013‐14 showing a growth rate of 2.55 %. GSDP of services sector which
comprises of trade, transport, banking & insurance and public administration, etc.
increased from Rs. 74878 crores in 2011‐12 to Rs. 80835 crores during 2012‐13
registering a growth rate of 7.95 % as compared to 11.82 % in 2011‐12. As figure 2.8 above
indicates, it is expected to increase to Rs. 88091 crores in 2013‐14 showing a growth rate
of 8.98 %. The sectoral growth trends (in %) for Punjab economy from 2008-09 to 2013-14
at constant prices (2004-05) are depicted in Figure 2.9 as under:
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Figure 2.9: Sub–Sectoral Growth Trends (%) in Punjab Economy at constant (2004-
05) Prices
Source: Economic Survey of Punjab 2014
The share of agriculture (proper) in GSDP at constant prices has declined from 21.19 % in
2004‐2005 to 12.84 % in 2013‐14. The share of primary sector which includes agriculture
and livestock has come down from 32.67 % in 2004‐2005 to 20.84 % in 2013‐14. The share
of secondary sector has increased from 24.74 % in 2004‐2005 to 28.30 % in 2013‐14. The
share of tertiary sector which comprises of services sector has increased from 42.59 % in
2004‐2005 to 50.86 % in 2013‐14. It is evident that the share of primary sector in GSDP is
constantly decreasing while that of secondary as well as tertiary sector is increasing. In the
light of above, sector by sector appraisal of Punjab’s economic profile is discussed as under.
2.4.1 AGRICULTURE: Agriculture sector has always remained central to the economic
development of the Punjab economy since independence. The unprecedented growth of the
agriculture sector in the state following the Green Revolution significantly contributed to
making it one of the richest states in the country. In 2013‐14, the sector contributed 20.83
% to the GSDP and as per census 2011, 36 % of total workers depends on it. At present, 82
% of the total geographical area of the State is under cultivation and the cropping intensity
is around 191 % with over 98 % of the cultivable area being under assured irrigation. The
State is amongst the highest ranking states in the country in terms of productivity of wheat
and rice. The State has highest yield of rice (3741 Kgs. per hectare) and second highest
yield of wheat (4898 Kgs. per hectare) after Haryana. The agricultural sector is
instrumental in ensuring national food security by consistently contributing a significant
percentage of wheat and rice to the Central Pool.
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Table 2.10: Punjab Contribution of Rice & Wheat to Central Pool
Year Contribution of
Rice to Central
Pool
Punjab % share
of Rice to Central
Pool
Contribution of
Wheat to Central
Pool
Punjab % share
of Wheat to
central Pool
Central Pool the Central Pool Central Pool Central Pool
2009‐10 92.8 28.9 107.3 42.2
2010‐11 86.3 25.3 102.1 45.4
2011‐12 77.3 22.1 109.6 38.7
2012‐13 85.6 25.1 128.3 33.6
2013‐14 81.06 29.3 108.97 43.4
Source: Ministry of Consumer Affairs, Govt. of India 2014
Punjab has contributed 43.4 % of wheat and 29.3 % of rice to Central Pool during the year
2013‐14. However, the hitherto vibrant agriculture sector of Punjab is now facing serious
challenges posed by deteriorating natural resource base due to monoculture of
wheat‐paddy crop rotation, stagnation in yields of principal crops, declining farm incomes
and rural indebtedness. Urgent initiatives are required to put the stagnating agricultural
economy of the state on fast track. Greater focus on R&D, crop diversification and rural
non‐farm activities are needed to restore the fast waning glory of this sector. The State
Government has taken a number of such initiatives in the recent past to address the
challenges faced by the sector. The key indicators of contribution of Agriculture sector of
Punjab are tabled as under:
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Table 2.11: Key Indicators of Punjab Agriculture Sector
2008‐09 2009‐10 2010‐11 2011‐12 2012‐13 2013‐14
Share of Agriculture &
allied in GSDP( at
constant prices)
26.66 25.02 23.86 22.81 21.85 20.83
Growth in GSDP in
Agriculture & allied
sector
2.03 ‐0.30 1.64 1.85 0.16 0.44
Agriculture 1.89 ‐0.57 1.56 1.75 ‐0.05 0.21
Forestry & Logging 3.92 3.94 3.38 4.25 4.48 4.66
Fishing 9.49 9.73 2.58 0.6 1.54 3.79
GCF in agriculture as
percentage of
agriculture GSDP
6.21 6.21 6.53 6.6 NA NA
Source: Economic and Statistical Organization, Punjab 2014
The share of agriculture and allied sector in Punjab GSDP has been rapidly declining in the
recent years primarily due to higher average growth of industrial and services sector. The
share of Agriculture & Allied sector in the GSDP was 27.66 % in 2007‐08 and which has
decreased to 20.83 % in 2013‐14. The declining share represents the structural
transformation of the economy from agriculture to other sectors of the economy. The
agriculture sector in the state is showing signs of a serious slowdown over the past few
years. The growth rate agriculture (proper) has remained way below 2 % in all the years
from 2007‐08 to 2013‐14 with growth turning negative in 2009‐10 and 2012‐13. The
agriculture (proper) recorded a nominal growth of 0.21 % in 2013‐14 as compared to the
negative growth of ‐0.05 % in 2012‐13. Slow growth of the agriculture (proper) sector has
kept the overall growth of the agriculture and allied sectors low at 0.16 % in 2012‐13 and
0.44 % in 2013‐14. The growth in agriculture sector is slowing down as cropping intensity
and irrigation potential have already been fully exploited and the growth in productivity
has also reached a saturation point. Besides, farmers are not ready to take risk due to
assured returns of wheat & paddy and very few advances have taken place in R&D in this
sector. The market arrival of main cereals in Punjab is depicted as under:
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Figure 1.12: Market Arrivals of Wheat & Paddy in Punjab
Source: Ministry of Agriculture, Government of India 2014
The area under cultivation in the State was 41.34 lakh hectares in 2011‐12. Cropping
intensity which depicts the percentage of gross area sown to net area sown was 191
hectares in 2011‐12. Wheat and paddy covers the major portion of the gross cropped area
as area under these two crops has increased from 47 % in 1970‐71 to 80.64 % in 2012‐13.
Area under wheat has however decreased marginally from 35.27 lakh hectares in 2010‐11
to 35.12 lakh hectares in 2012‐13 and is expected to decline further to 34.70 lakh hectares
during 2013‐14. However, the area under Paddy has slightly increased from 28.14 lakh
hectares in 2011‐12 to 28.45 lakh hectares in 2012‐13. Table 2.13 as under depicts the area
under major agricultural crops in Punjab:
Table 2.13: Area under Major Agricultural Crops (In ‘000 Hectares)
ITEM 1990‐91 2000‐01 2010‐11 2011‐12 2012‐13 2013‐14
Rice 2015 2612 2826 2814 2845 2773
Wheat 3273 3408 3510 3527 3512 3470
Other Cereals 237 203 148 146 145 177
Pulses 143 54 20 20 13 48
Total Food grains 5668 6277 6504 6507 6515 6468
Oilseeds 104 86 56 52 52 88
Sugarcane 101 121 70 80 83 96
Cotton 701 474 483 515 481 505
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Source: Directorate of Land Records & Agriculture, Government of Punjab 2014
The total food grains production in Punjab has increased significantly over the last few
decades. In 1990‐91, the production of food grains was 192.18 lakh metric tons, which
increased to 285.02 lakh metric tons in 2012‐13 showing an increase of 48.31 %. The
production of food grains is likely to be 278.01 lakh metric tons in 2013‐14. Wheat and rice
played a major role in pushing up agricultural production in the State. The production of
rice has increased from 65.06 lakh metric tons in 1990‐91 to 113.74 lakh metric tons in
2012‐13 showing an increase of 74.82 %. The production of rice is expected to decline to
108.15 lakh metric tons in 2013‐14. Similarly, the production of wheat has increased from
121.59 lakh metric tons in 1990‐91 to 165.91 lakh metric tons during 2012‐13 registering
an increase of 36.45 %. Likely estimate of wheat for 2013‐14 is 163.00 lakh metric tons.
The production of pulses is likely to increase from 0.12 lakh metric tons in 2012‐13 to 0.49
lakh metric tons in 2013‐14.
Figure 2.14: Production of Agricultural Crops in Punjab (In '000 Metric Tonnes)
Source: Ministry of Statistics and Programme Implementation
Punjab agriculture is known for use of high yielding varieties. During 2012‐13, 100 % area
of wheat, rice and bajra and 96 % area of maize were under high yielding varieties. Due to
several challenges in crops such as rice, wheat and pulses, there is shifting trend towards
exploration of the agro business opportunities into non-tapped areas which assure
remunerative prices from certain crops like maize, sugarcane, farm forestry and cotton.
Following are the macro economic developments in production, sourcing and supply of
these crops in Punjab.
a. Maize: The state proposes to increase the area under maize from 1.4 lakh hectares
to 5.5 lakh hectares during the next 7‐8 years. Subsidy on various inputs like plant
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protection equipment, pesticides, weedicides, supply of hybrids seeds, bed planters
etc. would be provided.
Figure 2.15: Production of Agricultural Crops in Punjab (In '000 Metric Tonnes)
Source: Ministry of Statistics and Programme Implementation
b. Sugarcane: To make sugarcane equally or more profitable than other crops,
farmers would be encouraged to take up innovative technologies for sugarcane
through various interventions like demonstration on intercropping single bed
technique, farmer field schools, seed replacement programme, subsidy on
agricultural implements etc.
c. Farm‐Forestry: At least 2 lakh hectares area is proposed to be covered under farm
forestry in Punjab on a rotation cycle of 8 years by planting fast growing species like
eucalyptus, poplar, melia, gmelina etc.
d. Cotton: The promotion of cotton in the state is an integral part of crop
diversification. Various interventions would be undertaken to popularize cotton in
state viz. plant protection equipments, bio‐pesticides, distribution of weedicides, BT
seeds.
Farmers in Punjab are also shifting towards changing consumption patterns of households
towards high value horticulture product like vegetables & fruits, dairy products and animal
products, which has emerged as new profitable alternatives to farmers. The Punjab
Government is making special efforts to encourage crop diversification in the State. The
Government is also implementing a scheme to encourage crop diversification through
development of horticulture. Five citrus estates have been set up and new varieties of
citrus fruits are being supplied to the farmers. Emphasis is also being laid to support
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development of commercial dairy farming in the State. Capital assistance is being provided
on construction of animal housing and subsidy on insurance premium. The Punjab Agro
Food grains Corporation (PAFC) has been promoting diversification in the State through
contract farming. The PAFC has been successfully bringing increasing area under basmati,
Hyola, Sunflower, Malting Barley and Maize through contract farming. For this purpose it is
proposed to carry out the diversification programs for the following crops:
a. Horticulture: Due to favorable geo-climatic conditions, the horticulture can be a thrust
area for enhanced production of fruits, vegetables and flowers in Punjab. The area
under fruits increased from 0.68 lakh hectares in 1990‐91 to 0.72 lakh hectares in
2012‐13. Kinnow, orange, malta, lemon, guava, pear, mango and grapes are the main
fruits grown in Punjab. Total production reported under these fruits was 15.03 lakh
metric tonnes for the year 2012‐13.
Table 2.16: Area ('000 Hectare) under Fruits and Vegetables in Punjab
Source: Ministry of Agriculture, Government of India 2014
The total area under all vegetable crops has almost doubled during 1990‐91 to 2012‐13.
The area under vegetables has increased from 0.55 lakh hectares in 1990‐91 to 1.14 lakh
hectares in 2012‐13. Potato, with an area of 0.70 lakh hectares in 2011‐12 is the major
vegetable crop of the State. The state Government has laid special emphasis on the
diversification of agriculture through development of horticulture. To promote horticulture
in the State, the Government is also taking initiatives like strengthening of citrus estates,
establishment of litchi & pear estates and technology dissemination & training in
horticulture practices to farmers. State geo-climatic conditions also favors for production
and export of certain varieties of flowers and state government should endeavor to explore
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such possibilities for production and export of flowers and allied production for example,
bee-framing and honey from Punjab.
b. Animal Husbandry, Dairying and Fisheries: Punjab is one among the leading state of
India as far as the livestock sector is concerned and true to these expectations, this
sector has contributed 7.10 % to the GSDP at constant (2004‐05) prices in 2012‐13;
however with mellowed growth trend in 2013-14 with contribution of 6.83 % to the
GSDP. The state is also fast emerging a quality supplier of meat products due to
availability of different varieties of quality animals for meat production. The estimates
of meat production, yield rates from cattle and buffalo in Punjab and India are tabled as
under:
Table 2.17: Estimates of Meat Production, Yield Rates from Cattle and Buffalo in Punjab (2012-2013)
Cattle Buffalo Est. of Slaughter Animals (in 000)
Av. An. Yld./ Animal (kg)
Meat Production (000 Tns.)
Est. of Slaughter Animals (in 000)
Av. An. Yld./ animal (kg)
Meat Production (000 Tns.)
Punjab NA NA NA 795.79 153.46 122.12
India 3192.54 102.43 327.03 9015.96 122.43 1103.85 Source: Ministry of Agriculture, Government of India
Similarly, Punjab has growing trends in production of eggs and average annual growth
rate of eggs production in Punjab is higher than the national average.
Table 2.18: Production of Eggs in Punjab (2007-2008 to 2012-2013)
(Million Nos.) State 2009-10 2010-11 2011-12 2012-13
Punjab 328.3 354.5 360.3 379.11
India 6024.4 6302.4 6645.0 6977.0 Source: Ministry of Agriculture, Government of India
c. Dairy Sector Development for Trade: Punjab is one of the leading producers of milk
with dairy production of 26 million kg per day. It is also one among the top producer of
milk in India. The per capita availability of milk in the state is highest in the country
(Table 2.19). There are 79 milk plants and chilling centers in the State. Around 200
integrated Buffalo Development Centers have also been set up to cover about 1600
villages across the state so as to tap the potential of dairy sector. The State produced
A Study on Export Potential and Strategy
9724 thousand tonnes of milk in the year 2012‐13 which further increased to 10,014
thousand tonnes in 2013-14.
Table: 2.19: Productions and Per Capita Availability of Milk
Year India
Imports of
Diary
Products
(US
Thousand
Dollar)1
Milk Production
('000 ton)
Per capita
Availability of
milk (grams
per day)
Per capita
Availability of
milk (grams
per day)
In Punjab In Punjab in India
2009‐10 51361808 9389 915 273
2010‐11 60885816 9423 931 281
2011‐12 74778376 9551 944 290
2012‐13 72438049 9724 961 N.A2.
2013‐14 82480718 10014 971 N.A.
Source: Comtrade 2014 & National Dairy Development Board 2014
The per capita availability of milk in Punjab is also much higher as compared to the All
India level (Table 2.19). In order to develop the dairy sector into a lucrative alternative
to crop production and also as a thrust area for export promotion of value added dairy
products, Punjab government is laying special thrust on education and training of agro-
farmers. It is the constant endeavor of state government to divert Punjab agro-farmers
towards commercial dairy farming with a special focus on improving quality of milk
and value addition at farm level by providing dairy entrepreneurship training and
assisting farmers in establishing commercially viable units of dairy farming. To
encourage large scale production of value added milk products which are suitable for
exports or may substitute the existing imports, Punjab Government has launched a new
scheme of mechanization of dairy farms which proposes to cater to mechanization
needs of both individual farmers and groups of small farmers. The table as under
1 India Diary Imports HS Code 0406 (Cheese and curd), 0402 (Milk and cream Concentrated) 0401 (Milk &
Cream Not Concentrated) 0405 (Butter & other fats) 0404 (Whey and natural milk products) and 0403
(Buttermilk & Yogurt)
2 Not Available
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depicts the possibilities of milk trade for exports and if not for exports for replacing the
India’s growing imports of dairy products.
d. Fisheries sector in Punjab: In Punjab, at present 11287 hectare area is under fish
culture and there are around 8000 fish farmers. The state is having the highest average
fish production of 6560 kg/ha against the national average of 3000 kg/ha. There are
868 kms of rivers and 4370 hectare reservoirs & 16585 kms of canals as notified water
areas. The farmers are rapidly adopting intensive fish culture in ponds and tanks on
modern scientific lines through composite fish culture of fast growing species. For
making fish culture more lucrative and attractive to farmers and for bringing more area
under fish culture, the main thrust of the State Government in recent years has been on
providing quality fish seed of cultural varieties of fish, adopting more suitable village
ponds under fish farming, providing opportunities for gainful self‐employment in rural
areas, providing better extension services at pond site, providing facilities of short term
training in fish farming and to arrange visits of fish farmers to other states and
developing saline/brackish water into fish farming. With a view to develop
professionally qualified human resource in fisheries through education and training in
fisheries, to conduct region specific research in fisheries and to provide advisory and
consultancy services, a college of fisheries has been established at GADVASU Campus at
Ludhiana. The production, growth trends in fisheries sector in Punjab along with all
India production are tabled as under:
Table 2.20: Trends in Production of Fisheries in Punjab and India (2004-2005 to 2012-2013)
Year Inland Fish production Fish production (In '000 tonne)
Growth rate (%)
India’s Production of Fish in 000 Tons
2004-05 77.70 -7.11 6304.75
2005-06 85.64 10.22 6571.62 2006-07 86.70 1.24 6869.05
2007-08 78.73 -9.19 7126832
2008-09 86.21 9.50 NA 2009-10 122.86 42.51 NA
2010-11 97.04 -21.02 NA 2011-12 97.62 0.60 NA
2012-13 99.13 1.55 NA Source: http://www.punjabstat.com/agriculture/2/fisheries/101/stats.aspx
Punjab producers exports significant volumes of agro products out of this huge agro
production. Our analysis of DGCI&S indicates that these exports are not regular which may
A Study on Export Potential and Strategy
be due to reasons such as changes in world demand, restrictions on exports of agro
products for supplementing domestic demands and uneven agro production patterns.
Analysis as under indicates that percentage contribution of agro products exports in
Punjab’s total production is increasing which is a healthy sign for an economy where more
than 50% population is dependent on agriculture. The key exportable products from
Punjab are falling under HS chapter code of 22, 23, 10, 07, 19, 20, 09, 07 and 12. Tables as
under indicates that volumes of agro exports from states of Punjab:
Table: 2.21: Punjab Agro Exports as Percentage of Total Agro Production & Total Exports
2009-10 2010-11 2011-12 2012-13 2013-14
Punjab Agro Exports ( Rs. Crores)
3698 3975 6390 10322 11098
Sectoral Contribution of Agriculture in State GDP ( at 2004-05) Prices ( Rs. Crores)
34694 35267 35905 35953 36113
Punjab total Exports ( Rs. Crores)
12962 19436 28256 35311 42729
Percentage of Agro exports as Punjab Agro Sector (%)
10.65 11.27 17.79 28.70 30.73
Percentage of Punjab agro products as Punjab total exports (%)
28.52 20.45 22.61 29.23 25.97
Source: Director General of commercial Intelligence & Statistics, Kolkata 2014
2.4.2 INDUSTRIES: Industrialization plays a vital role in the economic development of an
economy and it particularly more relevant for state like Punjab where agricultural output
has been showing sign of slow down as it has already peaked to maximum possible level
and only enhanced R&D in agriculture sector can further help it grow. Rapid
industrialization is also a key driver of the structural change in the economy which
represents a rising share of industry and services in the GSDP as compared to agriculture.
Over the years Punjab has also witnessed an increase in the contribution of industry sector
in the GSDP thus reflecting its growing importance in the economy. Political economics of
state economic planning is also slowly and steadily shifting towards industry and services
and political masters has started realizing that agriculture alone cannot be way forward for
economic growth, employment generation and social well-being of state. The share of
industry in the GSDP has been consistently increasing and reached a high of 30.79 % in
2010‐11. With announcement of “Make in India campaign” by government of India, it is
high time that policy makers in Punjab shall endeavor to speed up the industrialization of
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state. Manufacturing which is the most dominant sector of the industry has also seen a
rapid increase in its share which reached to 20 % of the GSDP in 2013‐14. The State
Government has taken a number of significant initiatives during the year 2013-14 to
encourage industrial investments in the state. Table as under depict the number of
industrial units both in small scale and large & medium enterprises and their production in
(Rs. Crore) from 2008-09 to 2013-14.
Table 2.22: No. of Small, Medium & Large Units in Punjab and their production from 2009-10 to 2013-14
Year Units (No.) Production (Rs. Crore)
SSU L & M Total SSU L & M Total
2009-10 164732 400 165132 48000 70000 118000
2010-11 168000 425 168425 54000 82000 136000
2011-12 151977 380 152357 56184 92393 148577
2012-13 154421 450 154871 62971 105000 167971
2013-14 160000 460 160460 68000 125000 193000 Source: Punjab Statistical Abstract 2014
Similarly, Punjab’s economy has witnessed the positive growth in employment generation
both in small scale units and large & medium enterprises. State witnessed the subdued
growth in investment in post sub-prime crisis scenario and this trend need to be reverted
by providing better regulatory and operational business environment so as to tap the full
potential of industry sector in Punjab. Table as under depicts the trends in employment
generation and investment both in small scale units and large & medium enterprises for the
period 2008-09 to 2013-14.
Table 2.23: Employment and Investment Scenario in Industrial Sector of Punjab from 2009-10 to 2013-14
Year Employment (No.) Investment (Rs. Crore) SSU L & M Total SSU L & M Total
2009-10 990000 225000 1215000 7300 33500 40800
2010-11 1020000 235000 1255000 8600 40000 48600
2011-12 1033553 238589 1272142 9815 50176 59991
2012-13 1077616 270000 1347616 11459 50000 61459
2013-14 1100000 290000 1390000 12000 55000 67000 Source: Source: Punjab Statistical Abstract 2014
A Study on Export Potential and Strategy
Unfortunately, where as the domestic investment has been flowing to industrial sector of
Punjab, the state economy has failed to attract foreign investments and table as under
depicts the grim scenario of foreign investment in industrial sector of Punjab for the period
2009-10 to 2011-12 (Table 2.24). Only notable FDI proposal for Punjab has been in the
year 2008-09 when it has two investment proposals worth Rs. 215796 crores only and
which was around 20 % of total investment flowing into India in the year 2008-09. Policy
makers of the state must endeavor to provide favorable business environment to attract
the foreign investors so as to speed-up the process of industrial development of key sectors
of state economy.
Table 2.24: Foreign Direct Investment (FDI) Proposals Approved in Punjab
State 2009-10 2010-11 2011-12 (April-August)
Fin. FDI FDI Fin. FDI FDI Fin. FDI FDI
(In Rs.) (In US$) (In Rs.) (In US$) (In Rs.) (In US$)
Punjab 0 0 0 0 0 0 0 0 0
India 162 86646.12 1828.15 152 377804.7 8292.59 72 192828.3 4341.41 Source: www.indiastat.org
In 2014, state government organized a Business Summit aimed at attracting investments in
state of Punjab. The event was well received by both domestic as well as global investors
and they have shown their interest for making investments in industrial sector of Punjab.
Punjab has attracted a total of 32 investment proposals which constitute around 4.27 % of
total proposal made for investments in India. Further, these investors have proposed to
invest around Rs. 1731 crores which constitute around 1.45 % of total proposed
investment in India. Table as under depicts the break-up of such investment intentions by
domestic as well global investors in economy of Punjab as well as that of India.
Table 2.25: Break up of Investment Intentions in Terms of [IEMs, FILED, LOIs/DILs]3Issued in Punjab (2014-Upto April 2014) (Rs. in Crore)
State No. Percentage Proposed Investments Percentage
Punjab 32 4.27 1731 1.45
India 750 100.00 119177 100.00
Source: Ministry of Commerce & Industry, Govt. of India
3 IEMs: Industrial Entrepreneur Memoranda filed for deli censed sector, LOIs: Letters of Intent issued, DILs:
Direct Industrial Licenses granted, Prop. Inv: Proposed Investment.
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Although Punjab is a very small state in area and it is ranked at no. 18th in all India rank of
states by geographical area, economically, however, it is one amongst the leading states of
India. In certain sectors of industries, Punjab’s contribution to national economy is more
than 25 % and that of industrial exports is more than 50 %. Accordingly, it is important to
make an attempt to compare the growth rate of industrial sector of Punjab with that of
India’s industrial growth so as to understand growth trends & sectoral contribution at state
and national level. Table 2.26 as under depicts the growth rate of industry in Punjab vs
India and percentage contribution in respective SGDP/GDP for each year:
Figure 2.26: Punjab Vs India- Industrial Growth Rate & Contribution to Economy
Source: Statistical Abstract of Punjab
Industrial sector of Punjab has witnessed on an average higher growth in manufacturing
sector when compared to national average. The State Index of Industrial Production (IIP)
for selected registered manufacturing factories is compiled annually (Base 2004-05=100)
on the basis of responding 697 industrial units as per the methodology of CSO, MOSPI, GOI.
The manufacturing sector of Punjab grew by 2.6 % in 2012‐13 as compared to 1.3 % at the
National level. In the year 2013-14, the industrial sector of Punjab registered the growth
rate of 1.8 % while the national industrial average is below 1 %. Figure as under depicts
the trends in growth rate of industrial production of Punjab and India for the period 2010-
11 to 2013-14.
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Figure 2.27: Annual Growth in IIP of Manufacturing sector Punjab V/S India
Source: Statistical Abstract of Punjab
While the industrial sector of Punjab is constantly growing, there remains, however,
untapped potential especially in engineering goods where Punjab products are
internationally competitive. Right political intervention in state economic planning can
catalyze the desired expansion and diversification in key industries. There are certain areas
where state has innate potential to grow as these market segments has growing demands
and socio-economic factors for production of such goods are favorable in economy of
Punjab. Few such items are listed as under where state entrepreneurs can focus their
attention for venturing out in international markets.
Table 2.28: Key Producible Products in State of Punjab
Items Unit 2007-08 2008-09 2009-10 2010-11 Baby Food Tonne 54 55 56 59
Desi Ghee Tonne 47 49 50 61 Milk Powder Tonne 60 65 67 68
Milk (All Kinds) Litre 296 301 306 306
Instant Coffee Kg. 4440 4440 4440 4440 Rice (All Kinds) Tonne 2749 2820 2932 2944
Biscuits Tonne 45 45 45 47 Sugar Tonne 675 716 630 644
Vanaspati Ghee Tonne 277 280 283 283 Mustard/Rape Seed Oil Tonne 155 154 154 159
Cattle Feed Tonne 191 204 209 209
Malted Food Tonne 51 50 51 53 Country Wine Litre 26994 28192 29445 30108
Indian Made Foreign Liquor Litre 33690 37414 37692 37413 Beer Litre 36502 41638 47496 47932
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Ginned & Pressed Tonne Kapas
Tonne 127 124 139 140
Cotton Yarn Kg. 10593 110497 10783 11033
Woollen Yarn Kg. 8036 8089 8591 8591 Cotton Cloth Metre 3076 31775 32443 31940
Woollen Hosiery Nos. 7578 7013 6893 6842 Urea N Content Tonne Tonne 893 949 965 965
Cl. Ammonium Nitrate Content
Tonne 67 67 67 76
Cycle/Rickshaw Tyres Nos. 11289 107812 109488 111589 Cycle Tube Nos. 137282 138827 135143 135166
Bars & Rods Tonne 930 1206 1281 1272
Ingot (All Kinds) Tonne 337 347 345 345 Angle Channel and Sections Tonne 102 95 97 95
Billets & Slabs Tonne 267 192 184 187 Joint & Rolls Tonne 62 61 56 59
C.I. Pipe and Fittings Tonne 84 86 71 73 Bolts & Nuts Tonne 27 26 25 25
Forgings Tonne 62 57 62 62
Complete Tractors Nos. Nos. 57 59 65 68 Cable (All Kinds) Km. 28 28 28 28
T.V. Set (Colour) Nos. 15 15 15 15 Picture Tubes Nos. 389 389 389 389
Chassis for Matador Nos. 3 2 2 3 Mopeds Nos. 32 29 26 26
Bicycle (All Kinds) Nos. 4843 4843 4885 4837
Bicycle Handles Nos. 29436 29473 29539 29836 Foot Balls Nos. 23391 24385 21703 21761 Source: Economic Adviser, Govt. of Punjab. (13643) assessed on the basis of Annual Survey of Industries with
base 1993-94
There has been decline in exports of industrial goods as a percentage of total exports which
has witnessed a growth trends in line with national averages. As far as exports of industrial
goods from Punjab are concerned, it exported goods worth Rs. 17430 crores in 2010‐11
and Rs. 21302 crores in the year 2011‐12. Further, industrial exports from Punjab have
increased to the tune of Rs. 24000 crores during the year 2012‐13. Industrial exports from
Punjab are estimated to be Rs. 26,000 crores in the financial year 2013‐14. Table as under
depicts the declining percentage of industrial exports from total exports of Punjab.
A Study on Export Potential and Strategy
Table 2.29: Trends in Punjab Industrial Exports as Percentage of Total Exports
2010-11 2011-12 2012-13 2013-14
Punjab Total Exports 19436 28256 35311 42729 Punjab Industrial Exports
17430 21302 24000 26000
Industrial Exports as Percentage of Total Exports
90% 75% 67% 60%
Source: Director General of Commercial Intelligence & Statistics, Kolkata & Economic Survey 2013-14 Punjab
Punjab has around 740 registered companies under the Information Technology Act and
these are usually small and medium firms engaged in supplies of IT & IT enabled services
for the domestic markets. Punjab cannot attract the major IT companies as it is very
expensive to buy land in India which is also scare at prime locations of business. Similarly,
Punjab has around 11702 companies both from private and public sector engaged in
manufacturing and trading activities both for domestic as well foreign markets. Table as
under indicate the no. of registered companies under IT Act and Companies Act.
Table 2.30: Total No. of Companies in Punjab registered under Information Technology Act & Company Act
Number of Registered IT
Companies
No. of Registered Companies
Punjab 740 23107
India NA 1215306 Source: Ministry of Corporate Affairs, Government of India (2012)
There are around 11702 companies which are directly engaged in commercial activities
and are operating in state of Punjab. This constitutes some 1.63 % of the total registered
companies in India. Ludhiana has maximum number of registered companies followed by
Jallandhar and Amritsar.
Source: Lok Sabha Unstarred Question No. 4402, dated on 03.05.2012.
In terms of registration of patents / geographical indications which is a vital sign of any
state economic progress and its prowess to protect the intellectual capital and leverage it
Table 2.31: No. of Companies Registered in Punjab by Types of Ownership
Public Limited Private Limited Total
Punjab 1547 10155 11702
India 59646 654909 714555
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as an asset in international markets, Punjab has lagged behind and there is only one
product registration for geographical indications out of total 170 such applicable filed by
firms all over the country. Table as under depicts the Punjab vs India’s number of
provisions for geographical indications of the goods.
Table 2.32: Number of Products Registered under Provisions of Geographical Indication of Goods (Registration and Protection) Act, 1999 in Punjab
(As on 30.11.2012)
State No. of Products Registered
Punjab 1
India 170 Source: Rajya Sabha Unstarred Question No. 2016, dated on 12.12.2012
In order to attract export oriented industries, the government of Punjab has enacted
Special Economic Zone Act, 2009 under which purchase of land for SEZ and first sale of plot
have been exempted from stamp duty and registration fee. Punjab government has been
aggressive off-late to facilitate export oriented industries and accordingly, it has proposed
to central government for setting up around 17 Special Economic Zones in the state, out of
which 8 proposals has formally been granted approval for Ministry of Commerce &
Industry, Government of India. Till the end of 2014, only two SEZ are functional and these
are being set up by Quark City and Ranbaxy. Recently a proposal for SEZ dedicated to needs
and requirements of Cycle Industry has also been mooted and is under stages of
operationalization.
Table 2.33: Distribution of Formal Approvals, Notified and Exporting Special Economic Zones (SEZs) in Punjab (As on 20.06.2014)
State Formal Approvals
In-Principle Approvals
Notified SEZs
Exporting SEZs (Central Govt. + State Govt./Pvt. SEZs + Notified
SEZs under SEZ Act, 2005)
Punjab 8 0 2 2
India 566 41 388 185 Source: Ministry of Commerce & Industry, Govt. of India. (15754) accessed on www.indiastat.org
In addition to above, state has planned for cluster based development of certain industries
which can start their operations in SEZ areas due to variety of reasons. Accordingly, such
units are advised to set-up as export oriented units (EOU). It is unfortunate to note that
there has been decline in number of notified EOU from 2008-09 to period 2010-11. Table
as under is self-explanatory of declining number of EOU in state of Punjab.
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Table 2.34: Number of Applications Received/Approved for Setting up of Export Oriented Units (EOUs) in Punjab (2008-2009 to 2010-2011)
State 2008-2009 2009-2010 2010-2011 Received Approved Received Approved Received Approved
Punjab 2 1 1 0 1 1 India 269 221 172 141 146 119 Source: Lok Sabha Unstarred Question No. 1020, dated on 28.11.2011 accessed on www.indiastat.org
2.4.3 SERVICES: Punjab is one among few states of India which has lower share of services
sector when compared with national average of services sector contribution to Indian GDP.
There is a well evident and established pattern that when an economy moves from lower to
higher stages of economic development, there occur a shift from simpler to more modern
and sophisticated techniques of production on the one hand and such a shift is also
witnessed in production being driven from primary & secondary sector to that of services
sector. In fact the growth of services sector is considered as a pre-dominant factor while
defining the growth and developmental features of any economy. The status, pattern and
growth of services sector coupled with state of art technology have got its own implications
for the future developmental needs of any economy. It is an established fact that developed
economies world over enjoy a higher share of services sector in their respective GDPs. A
state like Punjab cannot remain untouched from these economic realities and it is
important for services sector also to be part of overall growth story of the state of Punjab.
Service sector has contributed to around 43 % to Punjab’s state economy in the year 2008-
09 which has increased to around 51 % in 2013-14. In absolute figures, the contribution of
services sector in Punjab economy has grown from Rs 56322 crores to Rs. 88091 crores
which is a significant achievement as the other sector particularly agriculture sector has
already reached to tipping point and is slowing down in recent years. This sector plays a
leading role in the economy of India, and contributes to around 68.6 % of the overall
average GDP growth between 2002-03 and 2006-07. The size of services sector in Punjab
economy and its share in economy in depicted in the figure as under:
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Figure 2.35: Growing Role of Services Sector in Punjab SGDP
Source: Statistical Abstract of Punjab 2013-14
The growth rate of services sector in Punjab in recent years has been higher than other
sectors, i.e primary and secondary sectors. The growth rate of services sector in Punjab has
been 9.57 % in comparison to overall SGDP growth rate of 5.85 % in 2008-09. In the year
2011-12, the growth rate of services sector has been in double digits and it was measured
at 11.82 %. The services sector growth rate has been 7.95 % in 2012-13 and 8.98 % in
2013-14 respectively which is almost one and half times of Punjab overall economic
growth rates. It is evident from the discussion that state has ample potential for growth and
expansion of services sector and policy makers should aim to expand the export related
sectors of services so as to generate additional economic activity and employment for state
of Punjab. Figure as under depicts the trend in services sector growth and overall economy
of Punjab for the period 2008-09 to 2013-14.
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Figure 2.36: Punjab Services Sector Growth Rate Surpass Total SGDP Growth rates
Source: Statistical Abstract of Punjab 2013-14
From the years 2011-12 onwards, the services sector of Punjab has witnessed a pattern of
higher growth rate even than the national average. The growth rate of services sector of
Punjab was almost double the national average in the year 2011-12. The services sector
witnessed the growth rate of 7.75 % and 8.98 % in the year 2012-13 and 2013-14
respectively.
Figure 2.37: Punjab Vs India: Services Sector Growth Rate (% per Annum at 2004-05
Prices) from 2008-09 to 2013-14
Source: Statistical Abstract of Punjab 2013-14
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A growth pattern higher than the national average prompted us to investigate the
subsectors which has shown higher growth potential and has inherent advantages attached
to them so that same can also be considered for expansion and diversification of services
sector. An analysis of 6 important sectors of services (transport, storage and
communication, Trade, Hotels & Restaurants, Real Estate, Ownership of Dwellings and
Pubic Administration) indicates that Punjab has higher growth pattern in 2 sectors in
2009-10. There were 3 sectors in 2010-11 which further grew to 5 sectors in the year
2011-12. Railway and banking and insurance were the key drivers for double digit growth
rate of services sector in Punjab in 2011-12 which registered the growth rate of 27.59 %
and 28.52 % respectively. Services sector growth rate in the year 2012-13 has been higher
than national averages and main contributor to this growth story were the sectors such as
storage, communication, Trade, Hotels & Restaurants, Banking & Insurance, Pubic
Administration and other services. Table as under depict the growth story of some of the
key sectors of services of Punjab and Indian economy.
Table 2.38: GROWTH RATE FOR FOR 6 SECTORS UNDER SERVICES SECTOR
Sector 2009-10 2010-11 2011-12 2012-13 2013-14
Punjab India Punjab India Punjab India Punjab India Punjab India
Transport, Storage & Communication
7.44 14.8 4.34 12.6 10.8 9.4 5.05 6 5.67 8.6
Railways 0.54 8.8 -11.16 5.9 27.59 7.5 3.75 0.3 4.83 -
Transport by other means
7.54 7.3 3.62 8.2 9.76 8.6 6.49 6.6 6.85 -
Storage 1.44 19.3 0.9 3.7 17.33 2.9 11.83 8.6 8.02 -
Communication 11.73 31.5 12.99 21.8 5.29 11.2 2.74 6.5 4.02 -
Trade, Hotels & Restaurants
4 7.9 8.79 12 8.05 1.2 5.8 4.5 6.94 3.0
Banking & Insurance
15.77 11.4 18.92 14.9 28.52 12.9 13.34 11.8 16.48 12.9
Real Estate, Ownership of Dwellings
4 8.3 3.81 5.9 4.17 9.9 3.8 10 3.93 4.6
Pubic Administration
9.76 17.6 5.49 -0.4 9.33 4.2 8.06 3.4 7.13 5.6
Other Services 12.48 7.2 12 8.2 8.86 5.4 9.37 6.8 9.14 8.16
Sub Total of Tertiary
8.62 10.5 9.44 9.67 11.82 6.57 7.95 6.96 8.98 6.78
Source: RBI, Ministry of Finance & Statistical Abstract of Punjab 2013-14
CHAPTER 3:
IDENTIFICATION OF THRUST PRODUCTS FOR PUNJAB EXPORTERS
Identification of key products that has potential for exporters is an important milestone for exporters, as it helps them identify the key
product segments, HS code wise and enable them to plan and strategize their business operations accordingly. The significance of
identifying “Thrust Products” is to identify potential trade opportunities that may arise for exporters of Punjab. For this a detailed
analysis has been carried out so as to identify specific products that Punjab exporters can tap at competitive prices in international
markets. Step by step, the analysis of potential thrust products is as depicted and discussed as under:
Figure 3.1: Step By Step Procedure for Identification of Thrust Products for Exports from Punjab
3.1ASSESSING SUPPLY SIDE CAPABILITIES FOR THRUST PRODUCTS OF EXPORTS FROM PUNJAB: Analysis of Punjab Exports indicates
that Punjab has diverse product basket of exportable products of 6481 tariff lines which is significant when compared with India’s
export basket of approx. 8600 tariff lines out of total tariff lines of approximately 11500. In order to understand the prime thrust
STEP 1: Assessing Supply Side Capabilities For Thrust Products Of Exports From Punjab
STEP 2: Understanding Demand Side Opportunities Of Exportable Products
STEP 3: Revealed Competitive Advantage (RCA) Analysis Of Punjab’s Thrust Products
products, having regular frequency in exports, top 80% exports are identified which are mainly from 18 chapters of ITC (HS)
nomenclature. In order to assess the supply side capabilities, following analysis has been undertaken.
a. The product wise export trends (HS 6 digit)of the top 80 percent of the exportable by Punjab to the rest of the world has been
examined. There are a total of 67 tariff lines for Punjab at HS Code 6 digit disaggregation. The reference period is 2009-10 to
2013-14. The results are reported in Table 3.2. Products are identified as high growth or low growth exportable based on average
compound annual growth rate (CAGR) cut-off of 0.79 during the 5-year reference period. Most of the products classified under
cotton, man-made staple fibres and other made up textile articles, plastics, beverages, spirits and vinegar exhibit high export
growth, while the rest exhibit low export growth during the period under study. Semi-milled or wholly milled rice (HS 100630)
has the highest share in total exports from Punjab (21.7%) in 2013-14, followed bysingle yarn of combed fibres (HS520523 and
520524) and toilet linen and kitchen linen (HS 630260) with respective export shares of 5.4%, 2.9% and 3.8% in Punjab’s total
exports for 2013-14. The analysis provides an assessment of the existing export scenario of Punjab.
Table 3.2: Classification of Punjab's Top 80% Exports into High and Low-Growth Products
Product
Code (2
Digit)
Product
Descript
ion
Product
Code (6
Digit)
Product
Description
2009-10 2010-11 2011-12 2012-13 2013-14 Share in Total
Exports
(2013-14)
CAGR High/Low
Growth (Cut-Off
CAGR =0.790)
Punjab's Exports (Million INR)
10 Cereals 100630 Semi-milled
or wholly
milled rice
31894.62 31046.95 42738.70 62161.43 92763.82 21.710 0.306 Low
22 Beverag
es,
spirits
and
vinegar
220710 Undenatured
ethyl alcohol
64.61 142.61 363.02 1029.46 723.49 0.169 0.829 High
23 Residue
s &
waste
from
230400 Oil-cake and
other solid
residues
570.46 186.45 65.51 922.30 1096.65 0.257 0.178 Low
the food
industr
y
29 Organic
chemica
ls
294190 Other 2185.89 1891.81 3583.95 3775.68 6671.67 1.561 0.322 Low
294110 Penicillins
and their
derivatives
1586.19 1994.41 2076.42 2858.70 3665.74 0.858 0.233 Low
294200 Other organic
compounds
2839.93 2064.01 9095.68 4127.83 2367.18 0.554 -0.044 Low
290611 Cyclanic,
cyclenic or
cycloterpenic
328.99 621.72 1262.81 3087.98 1865.90 0.437 0.543 Low
294150 Erythromycin
and its
derivatives
1243.61 1097.57 1940.91 1799.12 904.07 0.212 -0.077 Low
30 Pharma
ceutical
product
s
300390 Other 10.77 330.60 2201.08 3284.37 1310.77 0.307 2.321 High
39 Plastics
and
articles
392020 Of polymers
of propylene
154.77 835.50 2019.02 2248.25 2515.88 0.589 1.008 High
40 Rubber
and
articles
401150 Of a kind used
on bicycles
413.01 1271.18 1876.21 2279.03 2299.65 0.538 0.536 Low
401320 Of a kind used
on bicycles
661.03 1376.35 2249.98 1955.30 1929.66 0.452 0.307 Low
401199 Other 266.16 547.75 1187.37 1208.95 1214.09 0.284 0.461 Low
52 Cotton 520523 Single yarn of
combed fibres
5384.57 12492.63 14740.08 18282.02 22863.26 5.351 0.435 Low
520524 Single yarn of
combed fibres
712.27 2600.85 4868.73 9185.86 12552.76 2.938 1.049 High
520512 Single yarn of
uncombed
fibres
298.00 1643.96 2662.87 4525.26 7573.63 1.772 1.245 High
520513 Single yarn of
uncombed
fibres
397.58 1724.87 2922.58 2588.65 3703.58 0.867 0.747 Low
520514 Single yarn of
uncombed
fibres
26.93 109.35 874.45 1125.70 2237.78 0.524 2.019 High
520521 Single yarn of
combed fibres
1549.06 926.03 445.21 1151.74 1835.15 0.429 0.043 Low
520532 Multiple
(folded) or
cabled yarn
56.45 293.11 214.71 827.80 1322.45 0.309 1.200 High
520511 Single yarn of
uncombed
fibres
265.00 801.32 457.27 807.56 1216.24 0.285 0.464 Low
520932 Dyed ( 3-
thread or 4-
thread twill)
1.56 8.26 85.87 476.85 1008.00 0.236 4.042 High
520544 Multiple
(folded) or
cabled yarn
86.30 690.55 649.46 850.34 1006.92 0.236 0.848 High
520299 Other 8.26 138.26 321.49 254.15 786.96 0.184 2.124 High
55 Man-
made
staple
550953 Other yarn, of
polyester
staple fibre
166.25 966.12 1998.19 2287.22 1888.99 0.442 0.836 High
fibres 550320 Of polyesters 304.65 733.30 1242.66 1242.84 1609.25 0.377 0.516 Low
550932 Containing 85
% or more by
weight
536.00 1229.97 1239.27 1002.46 1303.83 0.305 0.249 Low
550330 Acrylic or
modacrylic
335.64 540.83 809.26 295.43 861.44 0.202 0.266 Low
550130 Acrylic or
modacrylic
119.47 1808.01 624.72 38.36 701.21 0.164 0.556 Low
61 Art of
apparel
&
clothing
access,
knitted
or
crochet
ed
610520 Of man-made
fibres
2608.56 6743.16 11517.19 5313.66 6904.51 1.616 0.276 Low
610990 Of other
textile
materials
781.01 1666.00 2728.84 3536.24 5849.40 1.369 0.654 Low
610910 Of cotton 3840.22 4564.37 6084.74 5716.55 4375.69 1.024 0.033 Low
610510 Of cotton 1105.06 1076.04 1350.88 1880.88 1805.76 0.423 0.131 Low
610323 Suits :-- Of
synthetic
fibres
334.92 315.45 370.28 928.13 1285.75 0.301 0.400 Low
611120 Of cotton 365.43 621.04 589.01 759.88 1070.07 0.250 0.308 Low
611030 Of man-made
fibres
282.46 253.53 427.05 795.39 928.15 0.217 0.346 Low
611020 Of cotton 828.10 1203.48 1081.82 722.58 858.56 0.201 0.009 Low
610590 Of other
textile
materials
388.20 1158.86 1523.62 1159.05 796.29 0.186 0.197 Low
62 Art of
apparel
&
clothing
621490 Of other
textile
materials
205.49 376.92 673.28 1016.38 1438.79 0.337 0.627 Low
access,
not
knitted
or
crochet
ed
63 Other
made
up
textile
articles
630260 Toilet linen
and kitchen
linen
1131.57 6153.73 6771.58 8235.88 16204.66 3.792 0.945 High
630492 Not knitted or
crocheted
1655.58 1476.88 3040.32 3790.44 1430.11 0.335 -0.036 Low
630190 Other
blankets and
travelling
rugs
99.21 173.12 775.70 779.10 1103.64 0.258 0.826 High
630299 Of other
textile
material
505.43 1149.11 1226.16 1056.07 908.49 0.213 0.158 Low
73 Articles
of iron
or steel
730840 Equipment
for scaffolding
1517.77 2298.74 2648.64 3996.80 4773.94 1.117 0.332 Low
731815 Threaded
articles
860.89 1784.14 3311.49 3798.41 4277.74 1.001 0.493 Low
731816 Threaded
articles :Nuts
207.33 439.30 755.28 1678.93 3514.97 0.823 1.029 High
731819 Threaded
articles :Other
350.79 809.96 1587.24 2556.08 2837.29 0.664 0.686 Low
730890 Other 865.54 1512.39 1882.38 2568.54 2786.87 0.652 0.340 Low
730791 Flanges 287.35 898.66 1778.05 2458.96 2110.79 0.494 0.646 Low
732690 Other 767.30 1039.25 1323.78 1533.49 1752.22 0.410 0.229 Low
731822 Non-threaded
articles
111.10 201.16 470.00 814.58 1051.56 0.246 0.754 Low
82 Tool,
implem
ent,
cutlery,
spoon
820411 Hand-
operated
spanners and
wrenches
1867.71 2793.98 4709.95 6483.65 7035.58 1.647 0.393 Low
820570 Vices, clamps
and the like
276.41 416.97 1291.07 2261.09 2074.65 0.486 0.655 Low
820320 Pliers
(including
cutting pliers)
241.73 293.21 437.06 654.46 860.64 0.201 0.374 Low
820559 Other hand
tools
(including
glazier
51.59 42.39 64.69 667.07 846.82 0.198 1.013 High
84 Nuclear
reactors
, boilers
840890 Other engines 280.77 468.07 625.29 663.17 1484.51 0.347 0.516 Low
847290 Other 231.98 434.96 561.52 711.83 869.68 0.204 0.391 Low
85 Electric
al
machin
eryy
equipm
ent
parts
thereof
850421 Liquid
dielectric
transformers
280.19 566.32 630.56 1159.76 913.12 0.214 0.344 Low
87 Vehicles
o/t
railw/tr
870899 Other parts
and
accessories
2145.65 4383.79 6155.64 6622.12 7750.00 1.814 0.379 Low
amw
roll-
stock
870190 Other 663.37 1546.20 3100.29 4591.27 6843.09 1.601 0.792 High
871200 Bicycles and
other cycles
883.26 1289.91 1915.24 1957.04 2449.60 0.573 0.290 Low
871499 Other 1514.29 1953.06 1858.56 1649.50 1947.62 0.456 0.065 Low
870880 Suspension
shock-
absorbers
177.58 658.03 1041.47 1340.00 1764.95 0.413 0.776 Low
871491 Frames and
forks
497.17 942.60 1427.47 1573.43 1670.11 0.391 0.354 Low
871496 Pedals and
crank-gear
354.02 551.91 824.74 1019.24 1286.44 0.301 0.381 Low
871494 Brakes,
including
coaster
179.96 326.79 633.74 725.78 820.95 0.192 0.461 Low
95 Toys,
games
&
sports
requisit
es
950699 Other 280.06 380.78 477.75 648.01 721.40 0.169 0.267 Low
Average CAGR 0.790
Source: We Analysis on the basis of DGCI&S data for Punjab Exports
b. Once the top 80 percent of the exportable by Punjab to the rest of the world has been identified, the product wise export trends
(HS 6 digit)of these products by India to the world has been examined. The reference period for analysis is again taken as 2009-10
to 2013-14. Based on Punjab’s share in India’s exports, the products have been classified into two categories: one that exhibit an
increasing export trend (if share of Punjab’s exports in India’s total exports is increasing in at least 3 years) and those that exhibit
a decreasing trend (if share of exports is decreasing in at least 2 years). The results are exhibited in Table 3.3. The analysis
suggests that most products classified under cotton, man-made staple fibres, art of apparel & clothing access, knitted or
crocheted and other made up textile articles, plastics, rubber and pharmaceutical products have exhibited an increasing export
trend during the reference period under consideration.
Table 3.3: Punjab's Share in India's Exports
Product
Code
(2
Digit)
Product
Description
Product Code (6
Digit)
Product Description Punjab's Share in India's Total Exports
2009-10 2010-11 2011-12 2012-13 2013-14 Increasing
/Decreasing
Share in India's
Exports
10 Cereals 100630 Semi-milled or
wholly milled rice
17.96 19.5 14.57 13.31 13.43 ↓
22 Beverages,
spirits and
vinegar
220710 Undenatured ethyl
alcohol
10.59 6.79 6.35 9.52 4.54 ↓
23 Residues
&waste from the
food industry
230400 Oil-cake and other
solid residues
0.56 0.16 0.04 0.54 0.43 ↓
29 Organic
chemicals
290611 Cyclanic, cyclenic or
cycloterpenic
4.66 5.72 5.83 10.07 6.49 ↑
294110 Penicillins and their
derivatives
8.56 12.7 13.66 17.44 19.55 ↑
294150 Erythromycin and its
derivatives
29.08 19.41 19.65 18.31 7.86 ↓
294190 Other 9.02 7.13 9.1 8.23 11.92 ↑
294200 Other organic
compounds
1.74 1.34 4.84 1.96 1.65 ↓
30 Pharmaceutical
products
300390 Other 0.06 1.98 7.7 8.89 3.84 ↑
39 Plastics and
articles
392020 Of polymers of
propylene
2.42 8.17 13.66 13.06 10.75 ↑
40 Rubber and
articles
401150 Of a kind used on
bicycles
12.86 42.77 38.63 44.66 44.67 ↑
401199 Other 2.03 2.28 2.88 2.05 2.3 ↑
401320 Of a kind used on
bicycles
36.37 58.85 50.93 52.55 47.49 ↑
52 Cotton 520299 Other 0.94 5.4 9.14 5.3 10.29 ↑
520511 Single yarn of
uncombed fibres
2.01 4.32 3.37 5.25 4.71 ↑
520512 Single yarn of
uncombed fibres
9.36 14.54 18.66 18.79 12.76 ↑
520513 Single yarn of
uncombed fibres
19.4 25.17 36.35 29.63 25.01 ↑
520514 Single yarn of
uncombed fibres
3.78 7.92 24.97 7.04 4.25 ↑
520521 Single yarn of
combed fibres
10.57 4.82 4.34 10.92 17.39 ↑
520523 Single yarn of
combed fibres
23.91 20.4 23.96 26.36 23.81 ↑
520524 Single yarn of
combed fibres
5.77 8.37 13.62 16.77 15.69 ↑
520532 Multiple (folded) or
cabled yarn
5.03 13.83 9.33 25.27 19.71 ↑
520544 Multiple (folded) or
cabled yarn
5.25 26.19 17.8 18.63 17.51 ↑
520932 Dyed ( 3-thread or 4-
thread twill)
0.41 1.07 4.07 6.48 9.2 ↑
55 Man-made
staple fibres
550130 Acrylic or modacrylic 62.65 56.98 35.36 4.79 66.23 ↑
550320 Of polyesters 2.57 4.69 5.72 5.81 5.49 ↑
550330 Acrylic or modacrylic 64.16 64.45 88.86 34.4 43.44 ↓
550932 Containing 85 % or
more by weight
50.2 51.07 52.73 55.6 60.08 ↑
550953 Other yarn, of
polyester staple fibre
4.51 12.94 12.15 15 11 ↑
61 Art of apparel &
clothing access,
knitted or
crocheted
610323 Suits :-- Of synthetic
fibres
22.04 14.59 23.6 28.41 21.96 ↓
610510 Of cotton 3.57 4.39 4.37 7.53 5.71 ↑
610520 Of man-made fibres 56.2 67.44 50.76 32.51 32.27 ↓
610590 Of other textile 19.21 36.87 27.46 20.46 13.41 ↓
materials
610910 Of cotton 2.91 4.44 4.65 4.24 2.62 ↓
610990 Of other textile
materials
5.93 10.59 12.52 9.72 9.04 ↑
611020 Of cotton 7.21 13.4 9.86 9.49 7.68 ↓
611030 Of man-made fibres 25.23 24.25 28.6 32.51 31.64 ↑
611120 Of cotton 1.39 2.63 1.77 2.07 2.2 ↑
62 Art of apparel
& clothing
access, not
knitted or
crocheted
621490 Of other textile
materials
1.02 1.76 2.39 3.06 2.79 ↑
63 Other made up
textile articles
630190 Other blankets and
travelling rugs
6.26 9.1 19.6 17.92 20.68 ↑
630260 Toilet linen and
kitchen linen, of
13.93 23.05 12.66 14.93 20.61 ↑
630299 Of other textile
material
41.32 40.94 36.52 32.89 23.71 ↓
630492 Not knitted or
crocheted
3.27 3.43 7.28 7.02 2.35 ↑
73 Articles of iron
or steel
730791 Flanges 6.79 15.37 14.39 13.87 11.76 ↓
730840 Equipment for
scaffolding
38.06 48.93 45.9 43.59 43.42 ↓
730890 Other 5.8 9.29 9.14 7.97 8.15 ↓
731815 Threaded articles:
screws
14.21 22.91 24.33 18.25 15.02 ↓
731816 Threaded articles
:Nuts
17.48 24.2 20.54 17.24 13.97 ↓
731819 Threaded articles
:Other
21.1 28.45 31.73 33.42 34.97 ↑
731822 Non-threaded articles 10.33 15.77 20.29 29.08 26.5 ↑
732690 Other 5.26 5.44 3.79 3.83 3.71 ↓
82 Tool,
implement,
cutlery, spoon
820320 Pliers (including
cutting pliers)
24.13 24.71 25.89 34.58 36.11 ↑
820411 Hand-operated
spanners and
wrenches
46.26 42.17 41.57 51.28 47.81 ↑
820559 Other hand tools
(including glazier
3.77 1.99 1.85 16.01 17.9 ↑
820570 Vices, clamps and the
like
18.08 19.82 38.73 43.29 38.5 ↓
84 Nuclearreactors, 840890 Other engines 3.3 4.22 2.61 2.15 6.2 ↑
boilers 847290 Other 5.32 13.41 12.81 16.12 22.22 ↑
85 Electrical
machinery
equipment
parts thereof
850421 Liquid dielectric
transformers
4.83 10.21 7.43 13 11.53 ↑
87 Vehicles o/t
railw/tramw roll-
stock
870190 Other 3.51 4.29 5.77 7.15 9.01 ↑
870880 Suspension shock-
absorbers
15.73 27.95 23.64 21.42 19.21 ↓
870899 Other parts and
accessories
3.87 5.17 4.55 3.2 3.36 ↓
871200 Bicycles and other
cycles
49.05 54.6 52.91 53.01 51.79 ↑
871491 Frames and forks 53.63 66.49 60.96 47.91 40.45 ↓
871494 Brakes, including
coaster
38.4 40.75 33.69 44.47 51.51 ↑
871496 Pedals and crank-gear 59.79 74.72 68.97 67.72 62.98 ↓
871499 Other 38.73 43.09 30.24 23.68 15.23 ↓
95 Toys, games & sports requisites
950699 Other 13.21 11.38 9.54 10.87 8.76 ↓
Source: We Analysis on the basis of DGCI&S data for Punjab Exports
The analysis in Tables 3.2 and 3.3 provide an assessment of the supply capabilities of Punjab in terms of its exportable products.
3.2 UNDERSTANDING DEMAND SIDE CAPACITIES OF EXPORTABLE PRODUCTS: For the demand-side analysis, the world import demand
for the top 80% exports from Punjab has been examined. The world import values (in million USD) are reported in Table 3.4. The
reference period for analysis is again taken as 2008-09 to 2013-14. Based on share of world import demand, the products have been
classified into two categories: one that exhibit an increasing world import share (if share of world import demand is increasing in at
least 3 years) and those that exhibit a decreasing import share (if share of world import demand is decreasing in at least 2 years). The
results are exhibited in Table 3.5. The analysis suggests that out of a total of 67 tariff lines at 6-digit HS code, for 31 tariff lines, the share
of world import demand has exhibited an increasing trend. Interestingly for Punjab, products classified under cotton, man-made staple
fibres, art of apparel & clothing access, knitted or crocheted and other made up textile articles, rubber and articles of iron and steel have
exhibited an increasing world import demand trend during the reference period under consideration. For the rest of the analysis, the
focus has been on the tariff lines that exhibit rising world import demand.
Table 3.4: World Import Demand for the Top 80% Exports of Punjab (Values Mn. USD)
Product Code (2
Digit)
Product
Description
Product
Code
Product
Description
World Imports
2008 2009 2010 2011 2012 2013
10 Cereals 100630 Semi-milled
or wholly
milled rice
14648.09 11254.23 12939.36 15029.42 14025.07 11923.32
22 Beverages,
spirits and
vinegar
220710 Undenatured
ethyl alcohol
5283.83 3985.67 4055.49 6206.05 6527.20 6335.29
23 Residues
&waste from the
food industry
230400 Oil-cake and
other solid
residues
24521.35 21903.82 23753.51 26060.92 27785.11 29370.55
29 Organic
chemicals
290611 Cyclanic,
cyclenic or
cycloterpenic
416.44 349.10 468.72 810.48 1029.28 802.59
294110 Penicillins
and their
derivatives
2059.61 1769.19 1857.27 1978.52 1856.63 1946.87
294150 Erythromycin
and its
derivatives
1103.32 962.62 944.71 1109.05 982.30 704.81
294190 Other 8231.18 9293.76 9969.64 13171.77 9713.65 9178.84
294200 Other organic
compounds
1289.33 1321.05 1666.65 1788.72 1921.61 1855.40
30 Pharmaceutical
products
300390 Other 17355.28 14753.35 13285.54 8334.75 8485.76 6828.98
39 Plastics and
articles
392020 Of polymers
of propylene
8976.98 7454.19 8705.69 10443.29 9676.14 9602.79
40 Rubber and
articles
401150 Of a kind used
on bicycles
600.26 525.41 650.79 753.91 736.76 721.55
401199 Other 4629.51 3415.97 4446.51 6479.86 8036.90 7575.24
401320 Of a kind used
on bicycles
278.82 238.98 271.64 318.90 330.06 305.77
52 Cotton 520299 Other 319.43 250.87 350.00 598.89 503.50 493.63
520511 Single yarn of
uncombed
fibres
682.15 643.02 967.75 1132.26 764.06 574.83
520512 Single yarn of
uncombed
fibres
1551.33 1537.12 2264.34 2749.51 3105.59 3925.12
520513 Single yarn of
uncombed
fibres
330.40 259.69 467.05 522.44 451.78 525.48
520514 Single yarn of
uncombed
fibres
194.07 180.34 245.26 397.32 610.60 1061.50
520521 Single yarn of
combed
fibres
442.03 335.10 623.76 750.22 143.49 122.77
520523 Single yarn of
combed
fibres
930.37 804.69 1356.93 1315.47 1097.17 1161.67
520524 Single yarn of
combed
fibres
829.45 777.97 1137.62 1109.16 1101.72 1014.81
520532 Multiple
(folded) or
cabled yarn
336.86 280.04 376.61 378.60 290.38 277.39
520544 Multiple
(folded) or
cabled yarn
364.46 286.74 381.12 353.06 267.00 119.83
520932 Dyed ( 3-
thread or 4-
thread twill)
1056.58 748.59 838.09 1018.69 851.46 602.78
55 Man-made
staple fibres
550130 Acrylic or
modacrylic
1010.82 803.28 1155.19 1207.87 953.42 857.43
550320 Of polyesters 3804.18 2988.62 4011.30 5395.04 4549.83 4643.60
550330 Acrylic or
modacrylic
877.03 652.62 1184.94 1380.17 1003.25 1123.81
550932 Containing
85 % or more
by weight
771.97 595.88 719.61 823.78 504.41 412.08
550953 Other yarn, of
polyester
staple fibre
532.67 427.69 637.68 842.86 683.07 709.53
61 Art of apparel &
clothing access,
knitted or
crocheted
610323 Suits :-- Of
synthetic fibres
100.82 88.04 115.15 148.40 107.90 105.21
610510 Of cotton 5902.22 5073.74 5592.20 6537.04 5746.19 5048.88
610520 Of man-made
fibres
1155.36 1013.88 1184.47 1575.73 1745.43 1644.37
610590 Of other
textile
materials
230.22 155.00 182.36 250.13 213.20 199.33
610910 Of cotton 24503.79 21402.60 23273.55 25604.32 22505.17 20868.67
610990 Of other
textile
materials
6648.76 6279.88 7595.36 9354.81 9917.40 10069.53
611020 Of cotton 25821.39 23174.31 23820.74 25071.57 21937.55 20668.34
611030 Of man-made
fibres
16308.62 15484.42 16688.66 19959.44 19580.95 18828.60
611120 Of cotton 5593.05 5158.84 5524.68 6412.29 5512.37 5060.58
62 Art of apparel
& clothing
access, not
knitted or
crocheted
621490 Of other
textile
materials
369.63 452.47 570.94 679.43 598.71 544.28
63 Other made up
textile articles
630190 Other
blankets and
travelling
rugs
245.43 196.64 266.05 306.66 322.01 276.58
630260 Toilet linen
and kitchen
linen, of
4939.57 4218.04 4840.02 5374.44 5019.66 4949.42
630299 Of other
textile
material
106.63 89.98 104.72 113.29 95.63 97.10
630492 Not knitted or
crocheted
692.01 598.38 685.75 669.58 571.10 585.57
73 Articles of iron
or steel
730791 Flanges 2817.38 1744.44 1779.68 2313.04 2365.62 2389.12
730840 Equipment
for scaffolding
5186.70 3393.10 3258.77 3989.55 3923.50 4119.57
730890 Other 28583.52 22359.11 22333.34 25657.28 26520.85 27892.24
731815 Threaded
articles:
screws
15530.62 10994.40 14359.15 17215.80 16626.30 16643.03
731816 Threaded
articles :Nuts
4809.67 3322.73 4546.90 5595.15 5611.96 5676.20
731819 Threaded
articles :Other
2033.72 1493.97 1859.26 2241.96 2171.21 2133.33
731822 Non-
threaded
articles
2251.27 1451.76 1929.03 2255.17 2231.52 2292.58
732690 Other 35762.82 26629.31 31478.42 36442.86 36942.26 38511.52
82 Tool,
implement,
cutlery, spoon
820320 Pliers
(including
cutting pliers)
1192.38 854.30 1065.67 1227.47 1190.45 1169.42
820411 Hand-
operated
spanners and
wrenches
1227.08 822.16 1090.23 1296.21 1261.31 1219.07
820559 Other hand
tools
(including
glazier
3087.82 2305.86 2593.89 2828.50 2748.29 2741.27
820570 Vices, clamps
and the like
607.26 430.76 546.47 643.26 703.57 705.47
84 Nuclear
reactors, boilers
840890 Other engines 11621.63 7061.82 10905.87 14878.38 12591.60 11071.60
847290 Other 5161.59 4138.55 4481.36 4785.91 6662.85 5787.13
85 Electrical
machinery
equipment
parts thereof
850421 Liquid
dielectric
transformers
1514.91 1386.56 1418.51 1516.86 1504.43 1532.74
87 Vehicles o/t
railw/tramw roll-
stock
870190 Other 20583.49 14174.61 15040.36 18932.24 20075.80 20576.02
870880 Suspension
shock-
absorbers
10394.10 8138.12 11640.18 14173.53 14801.74 15464.86
870899 Other parts
and
accessories
89341.46 63362.37 78656.50 90278.30 86716.09 90733.25
871200 Bicycles and
other cycles
6964.68 6362.71 7254.75 8140.04 8153.67 7631.39
871491 Frames and
forks
1770.99 1496.91 1809.13 1996.59 2180.57 1943.55
871494 Brakes,
including
coaster
643.91 571.98 752.14 832.89 916.21 856.91
871496 Pedals and
crank-gear
560.98 578.79 737.75 826.53 896.25 852.80
871499 Other 3834.62 3001.99 3562.38 4071.21 4405.82 3905.01
95 Toys, games & sports requisites
950699 Other 5088.80 4641.25 4954.55 5684.72 5588.04 5366.01
Source: WITS Database/ UN Comtrade 2014
Table 3.5: World Import Demand for the Top 80% Exports of Punjab (% of World's Total Import)
Product
Code (2
Digit)
Product
Description
Product
Code
Product
Description
% Share of World Imports
2008 2009 2010 2011 2012 2013 Rising
/Falling
World Share
10 Cereals 100630 Semi-milled
or wholly
milled rice
0.0918 0.0919 0.0868 0.0845 0.0805 0.0714 ↓
22 Beverages,
spirits and
vinegar
220710 Undenatured
ethyl alcohol
0.0331 0.0326 0.0272 0.0349 0.0375 0.0380 ↑
23 Residues
&waste from the
food industry
230400 Oil-cake and
other solid
residues
0.1537 0.1789 0.1594 0.1465 0.1596 0.1760 ↑
29 Organic
chemicals
290611 Cyclanic,
cyclenic or
cycloterpenic
0.0026 0.0029 0.0031 0.0046 0.0059 0.0048 ↑
294110 Penicillins
and their
derivatives
0.0129 0.0145 0.0125 0.0111 0.0107 0.0117 ↓
294150 Erythromycin
and its
derivatives
0.0069 0.0079 0.0063 0.0062 0.0056 0.0042 ↓
294190 Other 0.0516 0.0759 0.0669 0.0740 0.0558 0.0550 ↓
294200 Other organic
compounds
0.0081 0.0108 0.0112 0.0101 0.0110 0.0111 ↑
30 Pharmaceutical
products
300390 Other 0.1088 0.1205 0.0891 0.0468 0.0487 0.0409 ↓
39 Plastics and
articles
392020 Of polymers
of propylene
0.0563 0.0609 0.0584 0.0587 0.0556 0.0575 ↓
40 Rubber and
articles
401150 Of a kind used
on bicycles
0.0038 0.0043 0.0044 0.0042 0.0042 0.0043 ↑
401199 Other 0.0290 0.0279 0.0298 0.0364 0.0462 0.0454 ↑
401320 Of a kind used
on bicycles
0.0017 0.0020 0.0018 0.0018 0.0019 0.0018 ↓
52 Cotton 520299 Other 0.0020 0.0020 0.0023 0.0034 0.0029 0.0030 ↑
520511 Single yarn of
uncombed
fibres
0.0043 0.0053 0.0065 0.0064 0.0044 0.0034 ↓
520512 Single yarn of
uncombed
fibres
0.0097 0.0126 0.0152 0.0155 0.0178 0.0235 ↑
520513 Single yarn of
uncombed
fibres
0.0021 0.0021 0.0031 0.0029 0.0026 0.0031 ↑
520514 Single yarn of
uncombed
fibres
0.0012 0.0015 0.0016 0.0022 0.0035 0.0064 ↑
520521 Single yarn of
combed
fibres
0.0028 0.0027 0.0042 0.0042 0.0008 0.0007 ↓
520523 Single yarn of
combed
fibres
0.0058 0.0066 0.0091 0.0074 0.0063 0.0070 ↑
520524 Single yarn of
combed
fibres
0.0052 0.0064 0.0076 0.0062 0.0063 0.0061 ↓
520532 Multiple
(folded) or
cabled yarn
0.0021 0.0023 0.0025 0.0021 0.0017 0.0017 ↓
520544 Multiple
(folded) or
cabled yarn
0.0023 0.0023 0.0026 0.0020 0.0015 0.0007 ↓
520932 Dyed ( 3-
thread or 4-
thread twill)
0.0066 0.0061 0.0056 0.0057 0.0049 0.0036 ↓
55 Man-made
staple fibres
550130 Acrylic or
modacrylic
0.0063 0.0066 0.0077 0.0068 0.0055 0.0051 ↓
550320 Of polyesters 0.0238 0.0244 0.0269 0.0303 0.0261 0.0278 ↑
550330 Acrylic or
modacrylic
0.0055 0.0053 0.0079 0.0078 0.0058 0.0067 ↑
550932 Containing
85 % or more
by weight
0.0048 0.0049 0.0048 0.0046 0.0029 0.0025 ↓
550953 Other yarn, of
polyester
staple fibre
0.0033 0.0035 0.0043 0.0047 0.0039 0.0043 ↑
61 Art of apparel &
clothing access,
knitted or
crocheted
610323 Suits :-- Of
synthetic fibres
0.000632 0.000719 0.000772 0.000834 0.000620 0.000630 ↑
610510 Of cotton 0.0370 0.0414 0.0375 0.0367 0.0330 0.0303 ↓
610520 Of man-made
fibres
0.0072 0.0083 0.0079 0.0089 0.0100 0.0099 ↑
610590 Of other
textile
materials
0.0014 0.0013 0.0012 0.0014 0.0012 0.0012 ↓
610910 Of cotton 0.1536 0.1748 0.1561 0.1439 0.1292 0.1251 ↑
610990 Of other
textile
materials
0.0417 0.0513 0.0510 0.0526 0.0570 0.0603 ↑
611020 Of cotton 0.1619 0.1893 0.1598 0.1409 0.1260 0.1239 ↓
611030 Of man-made
fibres
0.1022 0.1265 0.1120 0.1122 0.1125 0.1128 ↑
611120 Of cotton 0.0351 0.0421 0.0371 0.0360 0.0317 0.0303 ↓
62 Art of apparel
& clothing
access, not
knitted or
crocheted
621490 Of other
textile
materials
0.0023 0.0037 0.0038 0.0038 0.0034 0.0033 ↑
63 Other made up
textile articles
630190 Other
blankets and
travelling
rugs
0.0015 0.0016 0.0018 0.0017 0.0018 0.0017 ↑
630260 Toilet linen
and kitchen
linen, of
0.0310 0.0345 0.0325 0.0302 0.0288 0.0297 ↓
630299 Of other
textile
material
0.0007 0.0007 0.0007 0.0006 0.0005 0.0006 ↓
630492 Not knitted or
crocheted
0.0043 0.0049 0.0046 0.0038 0.0033 0.0035 ↓
73 Articles of iron
or steel
730791 Flanges 0.0177 0.0143 0.0119 0.0130 0.0136 0.0143 ↑
730840 Equipment
for scaffolding
0.0325 0.0277 0.0219 0.0224 0.0225 0.0247 ↓
730890 Other 0.1792 0.1826 0.1498 0.1442 0.1523 0.1671 ↓
731815 Threaded
articles:
screws
0.0974 0.0898 0.0963 0.0968 0.0955 0.0997 ↑
731816 Threaded
articles :Nuts
0.0301 0.0271 0.0305 0.0314 0.0322 0.0340 ↑
731819 Threaded
articles :Other
0.0127 0.0122 0.0125 0.0126 0.0125 0.0128 ↑
731822 Non-
threaded
articles
0.0141 0.0119 0.0129 0.0127 0.0128 0.0137 ↓
732690 Other 0.2242 0.2175 0.2112 0.2048 0.2122 0.2308 ↓
82 Tool,
implement,
cutlery, spoon
820320 Pliers
(including
cutting pliers)
0.0075 0.0070 0.0071 0.0069 0.0068 0.0070 ↓
820411 Hand-
operated
spanners and
wrenches
0.0077 0.0067 0.0073 0.0073 0.0072 0.0073 ↑
820559 Other hand
tools
(including
glazier
0.0194 0.0188 0.0174 0.0159 0.0158 0.0164 ↓
820570 Vices, clamps
and the like
0.0038 0.0035 0.0037 0.0036 0.0040 0.0042 ↑
84 Nuclear
reactors, boilers
840890 Other engines 0.0728 0.0577 0.0732 0.0836 0.0723 0.0663 ↓
847290 Other 0.0324 0.0338 0.0301 0.0269 0.0383 0.0347 ↑
85 Electrical
machinery
equipment
parts thereof
850421 Liquid
dielectric
transformers
0.0095 0.0113 0.0095 0.0085 0.0086 0.0092 ↓
87 Vehicles o/t
railw/tramw roll-
stock
870190 Other 0.1290 0.1158 0.1009 0.1064 0.1153 0.1233 ↓
870880 Suspension
shock-
absorbers
0.0652 0.0665 0.0781 0.0797 0.0850 0.0927 ↑
870899 Other parts
and
accessories
0.5600 0.5176 0.5277 0.5074 0.4980 0.5437 ↓
871200 Bicycles and
other cycles
0.0437 0.0520 0.0487 0.0458 0.0468 0.0457 ↓
871491 Frames and
forks
0.0111 0.0122 0.0121 0.0112 0.0125 0.0116 ↓
871494 Brakes,
including
coaster
0.0040 0.0047 0.0050 0.0047 0.0053 0.0051 ↑
871496 Pedals and
crank-gear
0.0035 0.0047 0.0049 0.0046 0.0051 0.0051 ↑
871499 Other 0.0240 0.0245 0.0239 0.0229 0.0253 0.0234 ↓
95 Toys, games & sports requisites
950699 Other 0.0319 0.0379 0.0332 0.0320 0.0321 0.0322 ↓
Source: Author(s) analysis based on WITS Data, 2014
For the 31 tariff lines for Punjab for which the import demand from the world exhibits an increasing trend, India's share in world's
imports, Punjab's exports’ share in India’s total exports and Punjab's share in world's imports have been reported in Table 3.6. For the
16 tariff lines, for which India’s share in world import demand is rising, Punjab’s share in India’s exports is also rising for all products
except for undenatured ethyl alcohol (HS220710). These products constitute the top priority (Priority 1) export products from Punjab.
For the remaining 15 tariff lines, for which India’s share in world import demand is falling, Punjab’s share in India’s exports is however
rising for all products except for rubber articles of a kind used for bicycles (HS401150). These products constitute the Priority 2 export
category products from Punjab. The above analyses are reported in Table 3.7.
Table 3.6: Punjab and India's Share in Rising World Imports
India's Share in World's Imports Share of Punjab's Exports in India's Total Exports Punjab's Share in World's Imports
Product Code
Product Description 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013
220710 Undenatured ethyl alcohol 0.249 0.746 0.559 0.863 1.250 10.587 6.786 6.348 9.521 4.542 0.022 0.050 0.079 0.193 0.128
230400
Oil-cake and other solid
residues 5.868 5.708 8.214 5.854 6.249 0.564 0.162 0.040 0.543 0.431 0.035 0.011 0.003 0.041 0.042
290611
Cyclanic, cyclenic or
cycloterpenic 58.197 57.076 60.724 61.660 56.419 4.660 5.725 5.828 10.069 6.494 1.263 1.902 2.116 3.668 2.610
294200 Other organic compounds 8.328 8.555 9.457 10.198 9.705 1.742 1.335 4.836 1.963 1.650 2.882 1.776 6.905 2.626 1.433
401150
Of a kind used on bicycles 6.901 5.678 5.267 5.428 5.193 12.860 42.770 38.626 44.659 44.675 1.054 2.800 3.379 3.782 3.579
401199 Other 5.641 4.898 5.258 4.637 4.172 2.032 2.281 2.876 2.050 2.297 0.104 0.177 0.249 0.184 0.180
520299 Other 6.095 12.127 10.084 15.972 17.359 0.945 5.400 9.144 5.301 10.292 0.044 0.566 0.729 0.617 1.790
520512
Single yarn of uncombed
fibres 5.072 10.173 10.277 11.502 18.148 9.361 14.538 18.656 18.788 12.764 0.260 1.041 1.315 1.782 2.167
520513
Single yarn of uncombed
fibres 14.198 16.257 16.318 21.243 23.292 19.404 25.168 36.349 29.626 25.006 2.052 5.295 7.597 7.006 7.914
520514
Single yarn of uncombed
fibres 7.375 11.647 17.213 37.950 51.078 3.782 7.918 24.974 7.044 4.250 0.200 0.639 2.989 2.254 2.367
520523
Single yarn of combed
fibres 47.485 55.020 44.756 49.911 52.774 23.911 20.403 23.965 26.364 23.810 8.971 13.199 15.216 20.373 22.099
550320 Of polyesters 6.819 6.428 5.781 5.511 6.398 2.571 4.690 5.725 5.808 5.487 0.137 0.262 0.313 0.334 0.389
550330 Acrylic or
modacrylic 0.601 0.742 1.371 0.646 0.434 64.163 64.452 88.857 34.400 43.441 0.689 0.654 0.796 0.360 0.861
550953
Other yarn, of polyester staple fibre 12.858 16.596 23.511 25.550 21.197 4.514 12.943 12.155 15.003 10.996 0.521 2.172 3.219 4.094 2.989
610323
Suits :-- Of synthetic
fibres 0.501 0.780 0.905 0.433 0.368 22.037 14.588 23.602 28.414 21.957 5.100 3.928 3.388 10.517 13.722
610520 Of man-made
fibres 1.056 0.828 1.005 0.947 1.108 56.195 67.437 50.762 32.511 32.268 3.449 8.162 9.925 3.722 4.715
610910 Of cotton 6.660 6.523 6.695 5.732 5.876 2.911 4.444 4.648 4.238 2.622 0.241 0.281 0.323 0.311 0.235
610990
Of other textile
materials 1.567 1.661 1.466 1.341 1.489 5.925 10.595 12.522 9.718 9.038 0.167 0.314 0.396 0.436 0.652
611030 Of man-made
fibres 0.542 0.496 0.398 0.459 0.466 25.233 24.249 28.600 32.507 31.637 0.024 0.022 0.029 0.050 0.055
621490
Of other textile
materials 33.488 31.836 33.316 31.686 30.395 1.022 1.763 2.385 3.056 2.786 0.609 0.946 1.346 2.076 2.968
630190
Other blankets and
travelling rugs 9.094 4.543 3.024 2.420 2.180 6.264 9.095 19.602 17.922 20.679 0.676 0.933 3.435 2.958 4.480
730791 Flanges 6.592 5.693 6.919 8.734 7.759 6.786 15.373 14.394 13.874 11.760 0.221 0.724 1.044 1.271 0.992
731815
Threaded articles: screws 1.725 1.679 2.128 1.935 1.827 14.215 22.911 24.331 18.253 15.018 0.105 0.178 0.261 0.279 0.289
731816 Threaded
articles :Nuts 1.230 1.104 1.110 1.223 1.172 17.485 24.197 20.536 17.239 13.972 0.084 0.139 0.183 0.366 0.695
731819
Threaded articles :Other 1.031 1.256 1.338 1.488 1.469 21.100 28.451 31.733 33.421 34.973 0.315 0.625 0.961 1.439 1.493
820411
Hand-operated
spanners and wrenches 8.482 8.480 9.313 9.357 8.826 46.255 42.168 41.566 51.279 47.805 3.046 3.674 4.934 6.285 6.480
820570 Vices, clamps and the like 3.261 3.512 3.601 3.176 2.932 18.081 19.820 38.728 43.293 38.497 0.860 1.094 2.726 3.929 3.302
847290 Other 1.453 1.144 1.187 0.827 0.671 5.319 13.407 12.807 16.121 22.219 0.075 0.139 0.159 0.131 0.169
870880
Suspension shock-
absorbers 0.573 0.588 0.723 0.868 0.928 15.727 27.948 23.639 21.419 19.211 0.029 0.081 0.100 0.111 0.128
871494
Brakes, including coaster 0.828 0.826 0.622 0.569 0.488 38.401 40.748 33.685 44.465 51.511 0.422 0.623 1.033 0.969 1.076
871496 Pedals and crank-gear 1.751 1.204 1.166 0.791 0.845 59.794 74.719 68.971 67.718 62.982 0.820 1.073 1.355 1.390 1.694
Source: DGCI&S, Kolkata, WITS Database & UN Comtrade
Table 3.7: India's Share and Punjab's Position in Rising World Imports
Product Code Product Description India's Rising Share
in World's Imports
Product
Code
Product Description India's Falling Share in
World's Imports
Increasing/Decreasing
Share of Punjab in
India's Exports
Increasing/ Decreasing
Share of Punjab in India's
Exports
220710 Undenatured ethyl
alcohol
↓ 401150 Of a kind used on bicycles ↓
230400 Oil-cake and other solid
residues
↑ 401199 Other ↑
290611 Cyclanic, cyclenic or ↑ 550320 Of polyesters ↑
cycloterpenic
294200 Other organic compounds ↑ 610323 Suits :-- Of synthetic fibres ↑
520299 Other ↑ 610910 Of cotton ↑
520512 Single yarn of
uncombed fibres
↑ 610990 Of other textile materials ↑
520513 Single yarn of
uncombed fibres
↑ 611030 Of man-made fibres ↑
520514 Single yarn of
uncombed fibres
↑ 621490 Of other textile materials ↑
520523 Single yarn of combed
fibres
↑ 630190 Other blankets and
travelling rugs
↑
550330 Acrylic or modacrylic ↑ 731816 Threaded articles :Nuts ↑
550953 Other yarn, of polyester
staple fibre
↑ 820411 Hand-operated spanners
and wrenches
↑
610520 Of man-made fibres ↑ 820570 Vices, clamps and the like ↑
730791 Flanges ↑ 847290 Other ↑
731815 Threaded articles:
screws
↑ 871494 Brakes, including coaster ↑
731819 Threaded articles :Other ↑ 871496 Pedals and crank-gear ↑
870880 Suspension shock-absorbers
↑ ↑
Source: Author’s Analysis
3.3 REVEALED COMPETITIVE ADVANTAGE (RCA) ANALYSIS OF PUNJAB’S THRUST PRODUCTS: Finally, competitiveness analysis of
Punjab’s major exportable (in rising world imports) has been carried out using Revealed Competitive Advantage (RCA). The process of
RCA which is vital econometric tool for assessing exportable products competitiveness has been explained in table 1.6. For this purpose,
the RCA of India for the Punjab’s identified products has been calculated. The reference period for this analysis is again 2009 to 2013. A
product will be defined as export competitive if the RCA ratio is found to be greater than 1 for 3 years or more during the reference
period. The results are reported in Table 3.8. Interestingly for Punjab all the 31 tariff lines are been found to be export competitive.
Table 3.8: Punjab's Revealed Competitive Advantage in Rising World Imports
Product
Code (2 Digit)
Product Description Product
Code (6 Digit)
Product
Description
RCA
2009 2010 2011 2012 2013 Competitive/Non-
Competitive
22 Beverages, spirits
and vinegar
220710 Undenatured
ethyl alcohol
1.293 2.194 3.390 6.872 4.161 Competitive
23 Residues &waste
from the food
industry
230400 Oil-cake and
other solid
residues
2.394 0.621 0.157 1.550 1.382 Competitive
29 Organic chemicals 290611 Cyclanic,
cyclenic or
cycloterpenic
104.090 116.995 111.791 169.390 95.073 Competitive
294200 Other organic
compounds
90.615 53.790 164.586 59.526 44.029 Competitive
40 Rubber and articles 401150 Of a kind used
on bicycles
69.718 142.299 134.958 125.467 109.602 Competitive
40 401199 Other 7.009 8.963 11.123 7.897 7.006 Competitive
52 Cotton 520299 Other 3.317 33.666 40.359 32.450 77.955 Competitive
520512 Single yarn of
uncombed
fibres
15.940 50.769 51.390 65.626 74.596 Competitive
520513 Single yarn of
uncombed
fibres
105.748 230.372 251.550 206.200 230.871 Competitive
520514 Single yarn of
uncombed
fibres
13.308 32.156 158.201 107.235 86.494 Competitive
520523 Single yarn of
combed fibres
625.849 583.080 531.918 544.577 487.386 Competitive
55 Man-made staple
fibres
550320 Of polyesters 10.064 14.168 14.504 13.087 13.711 Competitive
550330 Acrylic or
modacrylic
50.126 49.629 48.587 16.441 35.975 Competitive
550953 Other yarn, of
polyester
staple fibre
26.866 77.603 97.425 98.797 66.395 Competitive
61 Art of apparel &
clothing access,
knitted or crocheted
610323 Suits :-- Of
synthetic fibres
33.978 24.542 20.958 43.899 50.925 Competitive
610520 Of man-made
fibres
209.237 374.708 408.561 147.109 144.387 Competitive
610910 Of cotton 15.552 13.986 13.797 13.148 8.003 Competitive
610990 Of other
textile
materials
9.941 13.818 14.785 14.307 16.723 Competitive
63 Other made up
textile articles
630190 Other blankets
and travelling
rugs
63.852 57.211 196.825 147.892 209.520 Competitive
73 Articles of iron or
steel
730791 Flanges 14.450 37.257 43.878 44.330 33.222 Competitive
731815 Threaded
articles:
screws
7.854 9.770 11.947 11.180 10.207 Competitive
731816 Threaded
articles :Nuts
6.447 8.091 9.076 15.778 25.517 Competitive
731819 Threaded
articles
:Other
21.833 32.035 41.380 50.950 47.030 Competitive
82 Tool, implement,
cutlery, spoon
820411 Hand-
operated
spanners and
wrenches
226.088 200.552 225.965 244.303 217.901 Competitive
84 Nuclear reactors,
boilers
847290 Other 4.904 7.000 6.962 5.289 5.381 Competitive
87 Vehicles o/t
railw/tramw roll-
stock
870880 Suspension
shock-
absorbers
1.970 4.272 4.589 4.455 4.533 Competitive
871494 Brakes, 27.611 32.557 45.053 37.359 37.807 Competitive
including
coaster
871496 Pedals and crank-gear
52.072 53.167 56.913 50.482 54.443 Competitive
Source: Author’s Analysis Based on DGCI&S data for Punjab Exports
CHAPTER 4:
IDENTIFICATION OF THRUST MARKETS FOR PUNJAB EXPORTERS
In the previous chapter, a detailed analysis has provided major lead for identification of ‘Thrust Products’ for exports from state of
Punjab. It is important to identify the key for imports for state of Punjab for these thrust products. The analysis is carried out at 6 digit
level of ITC (HS) codes as trade nomenclature among countries has been harmonized up to this level only. The analysis of major thrust
markets revolves around 7 phases which are important for any exporters to scan, appraise and assess the potential for exports for his
products in international markets. The first and foremost is the understanding of prevailing export regime to identify if products are not
allowed for exports (prohibited) by Government of India regulations or is under restricted category for exports or is under canalized
category or is notified under ‘minimum export price’ and ‘restricted on export quantity’. Our analysis of current ITC (HS) code second
schedule will guide exporters of Punjab whether to engage in this commodity for exports or not. Second important aspects is to analyze
whether the world demand for the identified products is expanding or not as it will help exporters to decide the future line of their
business to expand, diversify, divest and withdraw. Thirdly, it is important to understand whether such market is expanding quality
wise also, hence is sustainable for export operations in the long run. Fourth phase of the analysis is vital as it provides the list of
percentage-wise demand of Punjab thrust products in top 10 imports of the world, thus helping exporters to understand where the
export opportunities for their products lies in. Fifth phase explains the key competitors for the thrust products of Punjab exporters.
Sixth phase lists the level of tariff barriers that exporters of Punjab may face in these identified markets and seventh phase lists the non-
tariff barriers that exporters of Punjab may face for identified thrust products in identified thrust markets. Figure 4.1 as under depict
the different phases of analysis of identification of thrust markets for identified thrust products of Punjab.
Figure 4.1: Different Phases of Analysis for Identification of Thrust Markets for Identified Products of Punjab
4.1: Analysis of Export Policy Regime for Thrust Products of Punjab: Second Schedule of ITC (HS), 2012 (Export Policy) regulates the
exports of merchandize from India. DGFT, regulatory for foreign trade in India, has power to regulate the export trade regime for any
product exported from India. Broadly, there exist four categories of regulation however there exist other ways of regulation of exports. If
the goods are listed as “Free” in the Export Licensing Schedule may also be exported without an export licence as such but they are
Analysis of Export Policy Regime for Thrust Product
of Punjab
Analysis of World Import Demand (Value Wise) for
Thrust Products of Punjab
Analysis of World Import Demand (Quantity Wise)
for Thrust Products of Punjab
Identification of Key Imports Markets for Thrust
Products from Punjab
Analysis of Key Competitors for Thrust Products by
Punjab Exporters
Analysis of Tariff Barriers Faced on Thrust Products
by Punjab Exporters
Assessing Price Attractiveness of Identified Products in Thrust Markets
subject to conditions laid out against the respective entry. The fulfilment of these conditions can be checked by authorized officers in the
course of export. The prohibited items are not permitted to be exported. An export licence is not granted to any exporter in the normal
course for goods in the prohibited category. The prohibited items are not permitted to be exported. An export licence will not be given in
the normal course for goods in the prohibited category. Export through STE(s) is permitted without an Export Licence through
designated STEs only as mentioned against an item and is subject to conditions in para 2.11 of Foreign Trade Policy 2009-14. An
analysis of Export Policy Schedule indicates that exports of identified thrust products such as Basmati Rice (Dehusked (Brown), semi
milled, milled both in either par-boiled or raw condition and Paddy (of Basmati Rice in husk) (HS code falling under tariff lines
10063010 10063090) is although allowed ‘free’ for trade but has several restrictions on the manner of export trade (refer Appendix
4.1). Similarly, tariff line (Derivatives, extracts and formulations) falling under sub-heading of HS code 300390 are subject to the
provisions of Wile Life (Protection) Act, 1972 and CITES (Appendix 4.2). Identified thrust products under sub-heading 5205 (all tariff
lines) are subject to condition as specified by DGFT which stipulates that the contracts for export of cotton yarn shall be registered with
the Directorate General of Foreign Trade prior to shipment. Clearance of cotton yarn consignments shall be given by Customs after
verifying that the contracts have been registered (Appendix 4.3). Identified thrust product of Vintage motor cars, parts and components
thereof manufactured prior to 1.1.1950 (HS Code 8708) are ‘restricted’ for exports and shall be subject to “Special License for Restricted
Exports” under procedure as prescribed under Foreign Trade Policy (Appendix 4.4). Further, an analysis of second schedule of Custom
Tariff Act 1975 (Export Tariff) indicates that none of the identified products attract export duty except basmati rice which attracted the
export duty at the rate of Rs. 12,000 per tons.
4.2 Analysis of World Import Demand (Value Wise) for Thrust Products of Punjab: In the previous chapter, the product wise export
trends (HS 6 digit) of the top 80 percent of the exportable by Punjab to the rest of the world has been identified. The world import
demand for these export products from Punjab has also been examined and the same has been reproduced again in Table 4.2. A careful
look at the Table suggests that products with HS codes 520512, 520513, 520514,290611 and 401199 have exhibited a high import
demand growth based on average compound annual growth rate (CAGR) cut-off of 0.2 during the 5-year reference period of 2009-2013.
Since HS codes 520512, 520513, 520514 and290611 have also been identified as Priority 1 export product from Punjab and HS 401199
as Priority 2 export product from Punjab (refer to Table 3.7 in the previous Chapter), Punjab has a strong case in terms of increasing its
exports for these products.
Table 4.2: Value Wise Import Demand for the Top 80% Exports of Punjab
Product Code
(6 Digit)
Product Description
Value of World Imports in Million USD
2009-10 2010-11 2011-12 2012-13 2013-14 CAGR of World
Demand (2009-2013)
100630 Semi-milled or wholly milled rice, 11.219 12.914 15.062 14.150 12.615 0.030
220710 Undenatured ethyl alcohol 3.986 4.056 6.207 6.535 6.190 0.116
230400 Oil-cake and other solid residues, 21.903 23.754 26.064 28.452 31.065 0.091
290611 Cyclanic, cyclenic or cycloterpenic 0.349 0.469 0.811 1.049 0.842 0.246
294110 Penicillins and their derivatives w 1.769 1.857 1.987 1.883 2.100 0.044
294150 Erythromycin and its derivatives; s 0.963 0.945 1.110 0.989 0.726 -0.068
294190 Other 9.294 9.970 13.184 9.745 9.486 0.005
294200 Other organic compounds. 1.321 1.667 1.789 1.935 1.923 0.098
300390 Other 14.757 13.287 8.347 8.638 8.056 -0.140
392020 Of polymers of propylene 7.455 8.706 10.459 9.735 10.032 0.077
401150 Of a kind used on bicycles 0.525 0.651 0.757 0.741 0.741 0.090
401199 Other 3.416 4.447 6.489 8.058 7.766 0.228
401320 Of a kind used on bicycles 0.239 0.272 0.320 0.334 0.317 0.073
520299 Other 0.251 0.350 0.599 0.505 0.519 0.199
520511 Single yarn, of uncombed fibres :-- 0.643 0.968 1.136 0.766 0.774 0.048
520512 Single yarn, of uncombed fibres :-- 1.537 2.264 2.777 3.131 4.075 0.276
520513 Single yarn, of uncombed fibres :-- 0.260 0.467 0.532 0.461 0.556 0.210
520514 Single yarn, of uncombed fibres :-- 0.180 0.245 0.397 0.611 1.114 0.576
520521 Single yarn, of combed fibres :-- M 0.335 0.624 0.751 0.144 0.140 -0.196
520523 Single yarn, of combed fibres :-- M 0.805 1.357 1.329 1.124 1.290 0.125
520524 Single yarn, of combed fibres :-- M 0.778 1.138 1.117 1.111 1.431 0.165
Table 4.2: Value Wise Import Demand for the Top 80% Exports of Punjab (contd.)
520532 Multiple (folded%) or cabled yarn, o 0.280 0.377 0.380 0.291 0.355 0.061
520544 Multiple (folded%) or cabled yarn, o 0.287 0.381 0.353 0.267 0.265 -0.020
520932 Dyed :-- 3-thread or 4-thread twill 0.749 0.838 1.023 0.865 0.829 0.026
550130 Acrylic or modacrylic 0.803 1.155 1.208 0.953 0.914 0.033
550320 Of polyesters 2.989 4.011 5.406 4.572 4.853 0.129
550330 Acrylic or modacrylic 0.653 1.185 1.381 1.010 1.138 0.149
550932 Containing 85 % or more by weight o 0.596 0.720 0.826 0.507 0.491 -0.047
550953 Other yarn, of polyester staple fib 0.428 0.638 0.856 0.694 0.757 0.153
610323 Suits :-- Of synthetic fibres 0.088 0.115 0.151 0.109 0.111 0.059
610520 Of man-made fibres 1.014 1.184 1.576 1.750 1.796 0.154
610590 Of other textile materials 0.155 0.182 0.253 0.228 0.226 0.098
610910 Of cotton 21.412 23.279 25.631 22.586 23.194 0.020
610990 Of other textile materials 6.284 7.598 9.354 9.955 11.053 0.152
611020 Of cotton 23.177 23.822 25.072 21.966 23.313 0.001
611030 Of man-made fibres 15.486 16.689 19.960 19.597 21.060 0.080
611120 Of cotton 5.159 5.525 6.416 5.523 5.853 0.032
621490 Of other textile materials 0.453 0.571 0.680 0.600 0.580 0.064
630190 Other blankets and travelling rugs 0.197 0.266 0.309 0.329 0.298 0.109
630260 Toilet linen and kitchen linen, of 4.218 4.840 5.380 5.035 5.205 0.054
630299 Other :-- Of other textile material 0.090 0.105 0.114 0.097 0.102 0.033
630492 Not knitted or crocheted, 0.598 0.686 0.670 0.572 0.613 0.006
730791 Other :-- Flanges 1.745 1.780 2.314 2.379 2.446 0.088
Source: We calculation based on the data collected from UN Comtrade (WITS)
Table 4.2: Value Wise Import Demand for the Top 80% Exports of Punjab (contd.)
730840 Equipment for scaffolding, 3.395 3.259 3.999 3.950 4.391 0.066
730890 Other 22.363 22.335 25.673 27.018 29.346 0.070
731815 Threaded articles :-- Other screws 10.995 14.359 17.225 16.673 17.207 0.118
731816 Threaded articles :-- Nuts 3.323 4.547 5.598 5.625 5.833 0.151
731819 Threaded articles :-- Other 1.494 1.859 2.244 2.182 2.258 0.109
731822 Non-threaded articles :-- Other 1.452 1.929 2.256 2.239 2.339 0.127
732690 Other 26.633 31.480 36.480 37.022 39.726 0.105
820320 Pliers (including cutting pliers%), 0.855 1.066 1.233 1.201 1.228 0.095
820411 Hand-operated spanners and wrenches 0.822 1.090 1.301 1.271 1.268 0.114
820559 Other hand tools (including glazier 2.307 2.594 2.839 2.769 2.878 0.057
820570 Vices, clamps and the like 0.431 0.546 0.644 0.706 0.731 0.141
840890 Other engines 7.063 10.906 14.880 12.627 11.781 0.136
847290 Other 4.139 4.481 4.816 6.703 6.520 0.120
850421 Liquid dielectric transformers :-- 1.388 1.420 1.523 1.570 1.608 0.037
870190 Other 14.178 15.042 18.944 20.264 21.005 0.103
870880 Suspension shock-absorbers 8.139 11.641 14.185 14.833 15.770 0.180
870899 Other parts and accessories :-- Oth 63.443 78.611 90.214 86.969 92.009 0.097
871200 Bicycles and other cycles (includin 6.367 7.256 8.148 8.194 8.133 0.063
871491 Other :-- Frames and forks, and par 1.497 1.809 1.998 2.185 2.146 0.094
871494 Other :-- Brakes, including coaster 0.572 0.752 0.835 0.922 0.887 0.116
871496 Pedals and crank-gear, an 0.579 0.738 0.828 0.899 0.888 0.113
871499 Other 3.003 3.563 4.080 4.431 4.106 0.081
950699 Other 4.642 4.955 5.699 5.602 5.629 0.049
4.3 Analysis of World Import Demand (Quantity Wise) for Thrust Products of Punjab: In order to understand the quantity wise growth
trends in identified thrust products in world market, an analysis of top 80% exports of Punjab has been carried out (Table 4.3). For
example, HS code 1000630 (rice) indicates the value wise market expansion at CAGR of 3 % and quantity wise that of 34%, indicating
the expansion of demand for low priced rice products in the world markets. Similarly, demand for HS code 290611 (drug) is
expanding at higher rate value wise than quantity wise, which may be due to increasing input costs or moving up to higher priced
segments of this products. The demand for HS code 550330 (Acrylic or modacrylic made–ups) witnessed registered higher growth
value wise than quantity wise, which may again be due factors such as supply-demand disequilibrium, increasing production costs
and scaling up of product to higher priced segments. Similarly, the world demand for HS code 731816 (Threaded articles: Nuts) is
expanding faster quantity wise than value wise in which Punjab exporters have revealed competitive advantage, thus showing
increased prospects for exporters of Punjab for this products.
Table 4.3: Quantity Wise Import Demand for the Top 80% Exports of Punjab
Product Code
Product Description Quantity of World Imports (Million Units)
(6 Digit) Unit 2009-10 2010-11 2011-12 2012-13 2013-14 5 Years CAGR
100630 Semi-milled or wholly milled rice, Kg 15881.432 18476.537 19342.577 19468.09 60088.5 0.3449
220710 Undenatured ethyl alcohol Liter 5459.105 5532.048 7168.464 6432.318 7324.82 0.0605
230400 Oil-cake and other solid residues, Kg 55259.255 58537.193 60297.257 54810.54 57115.4 0.0066 290611 Cyclanic, cyclenic or cycloterpenic Kg 26.577 27.535 29.603 32.535 40.504 0.0879
294110 Penicillins and their derivatives w Kg 38.213 48.29 46.299 46.199 49.022 0.051
294150 Erythromycin and its derivatives; s Kg 4.945 137.425 6.491 5.588 5.011 0.0026
294190 Other Kg 48.868 69.297 66.601 64.302 62.797 0.0514
294200 Other organic compounds. Kg 115.212 152.387 135.433 127.918 145.201 0.0473 300390 Other Kg 137.483 623.657 160.151 155.464 161.726 0.033
Table 4.3: Quantity Wise Import Demand for the Top 80% Exports of Punjab (contd.)
392020 Of polymers of propylene Kg 2343.523 2825.83 2866.499 2823.744 4093.94 0.118 401150 Of a kind used on bicycles Item 159.085 184.406 212.591 148.511 181.8 0.027
401199 Other Item 51.165 65.297 69.932 84.379 67.933 0.0583 401320 Of a kind used on bicycles Item 249.105 279.094 297.991 246.588 290.772 0.0314
520299 Other Kg 272.706 312.9 296.82 325.272 5173.05 0.801
520511 Single yarn, of uncombed fibres :-- Kg 309.835 387.87 327.205 276.939 305.379 -0.002
520512 Single yarn, of uncombed fibres :-- Kg 711.99 814.52 729.308 1065.503 1486.94 0.158
520513 Single yarn, of uncombed fibres :-- Kg 102.509 145.31 117.574 124.936 166.501 0.101
520514 Single yarn, of uncombed fibres :-- Kg 74.058 79.072 96.947 178.471 327.663 0.346
520521 Single yarn, of combed fibres :-- M Kg 119.506 162.629 147.622 80.138 57.088 -0.137 520523 Single yarn, of combed fibres :-- M Kg 279.48 372.202 261.259 287.089 476.786 0.112
520524 Single yarn, of combed fibres :-- M Kg 253.936 284.926 204.745 273.893 391.467 0.09
520532 Multiple (folded%) or cabled yarn, Kg 107.536 116.038 85.223 79.47 102.777 -0.009 520544 Multiple (folded%) or cabled yarn, Kg 75.191 85.834 57.87 66.881 146.483 0.142
520932 Dyed :-- 3-thread or 4-thread twill Kg 95.924 105.761 104.145 78.559 180.899 0.135 550130 Acrylic or modacrylic Kg 391.282 418.668 382.465 325.823 322.833 -0.038
550320 Of polyesters Kg 2226.757 2672.796 3252.079 2357.882 2801.18 0.046
550330 Acrylic or modacrylic Kg 289.068 409.649 393.696 303.966 356.1 0.042 550932 Containing 85 % or more by weight Kg 167.818 175.592 171.116 109.285 107.913 -0.084
550953 Other yarn, of polyester staple fib Kg 178.05 221.919 221.725 217.439 240.079 0.061 610323 Suits :-- Of synthetic fibres Item 18.649 19.696 24.901 10.974 20.157 0.015
610520 Of man-made fibres Item 206.034 218.135 279.879 235.511 297.816 0.076 610590 Of other textile materials Item 24.261 29.442 39.616 35.017 38.848 0.098
610910 Of cotton Item 8108.493 7924.241 8717.423 6277.792 7629.2 -0.012
610990 Of other textile materials Item 1457.36 1754.581 2181.98 1732.988 2414.11 0.106
611020 Of cotton Item 4572.95 4551.107 4319.148 3509.007 4059.26 -0.023
611030 Of man-made fibres Item 2444.08 2447.539 2882.241 2232.333 3014.73 0.042
Table 4.3: Quantity Wise Import Demand for the Top 80% Exports of Punjab (contd.)
611120 Of cotton Kg 266.329 289.438 278.469 255.605 463.167 0.117 621490 Of other textile materials Item 181.182 221.601 226.622 178.317 199.109 0.019
630190 Other blankets and travelling rugs Kg 60.764 89.707 184.601 90.162 115.837 0.137
630260 Toilet linen and kitchen linen, of Kg 684.903 758.387 668.001 675.616 1026.81 0.084 630299 Other :-- Of other textile material Kg 19.375 25.165 20.82 17.657 22.099 0.026
630492 Not knitted or crocheted, Kg 68.2 77.834 59.915 53.355 68.872 0.001 730791 Other :-- Flanges Kg 592.852 690.181 807.562 867.568 1023.94 0.115
730840 Equipment for scaffolding, shutteri Kg 1272.335 1541.503 2314.553 2710.22 3122.59 0.196
730890 Other Kg 8396.978 9320.829 11348.568 12257.61 28629.2 0.278 731815 Threaded articles :-- Other screws Kg 3666.201 7551.205 5232.705 5216.653 8153.18 0.173
731816 Threaded articles :-- Nuts Kg 1034.729 2192.385 1575.196 1569.171 3546.98 0.279 731819 Threaded articles :-- Other Kg 339.824 508.846 480.885 455.353 693.149 0.153
731822 Non-threaded articles :-- Other Kg 276.271 670.393 528.4 387.434 689.472 0.2
732690 Other Kg 6109.273 8499.702 9733.535 43121.54 22667.6 0.299
820320 Pliers (including cutting pliers%), Kg 164.379 113.655 119.064 91.945 182.905 0.021
820411 Hand-operated spanners and wrenches Kg 101.466 149.245 163.042 125.038 258.429 0.205 820559 Other hand tools (including glazier Kg 332.889 338.737 264.459 239.803 408.192 0.041
820570 Vices, clamps and the like Kg 78.301 72.073 69.93 73.967 132.666 0.111
840890 Other engines Item 18.716 32.144 12.123 3.51 2.329 -0.34
847290 Other Item 615.561 359.344 177.862 164.606 295.523 -0.136
850421 Liquid dielectric transformers :-- Item 121.889 100.833 86.026 67.183 125.941 0.006 870190 Other Item 5.144 56.371 17.575 1.419 2.007 -0.171
870880 Suspension shock-absorbers Kg 1104.02 1787.264 1807.512 1219.69 2300.17 0.158
870899 Other parts and accessories :-- Oth Kg 6621.721 9482.003 9519.988 7107.574 10935.3 0.105
871200 Bicycles and other cycles (includin Item 61.456 101.873 68.659 61.89 56.362 -0.017 871491 Other :-- Frames and forks, and par Kg 125.287 167.527 179.502 157.043 178.806 0.073
Table 4.3: Quantity Wise Import Demand for the Top 80% Exports of Punjab (contd.)
871494 Other :-- Brakes, including coaster Kg 55.79 65.125 78.083 61.275 70.818 0.048 871496 Pedals and crank-gear, an Kg 61.68 80.235 104.18 76.603 91.213 0.081
871499 Other Kg 285.741 384.032 409.95 404.424 495.878 0.116 950699 Other Item 744.952 695.035 542.346 483.295 510.732 -0.072
Source: We calculation based on the data collected from UN Comtrade (WITS)
Appendix 4.5 at the end provides the details for commodity specific analysis to Punjab exporters to understand the international
markets scenario of thrust products they want to trade in international markets.
4.4 Identification of Thrust Markets for Thrust Products from Punjab: Once the thrust products have been identified, the next step
involves identifying the “thrust markets” for Punjab’s identified exportable. The objective of this analysis is to examine the feasibility
of export market diversification for Punjab. The analysis involves the top 10 importing countries for each of the identified exportable
from Punjab thus suggesting the key markets where the identified products from Punjab can be exported. The reference period is
2013-14. The importing countries along with the percentage share in total imports are reported in Table 4.4. A careful analysis of the
Table suggests that across 67 tariff lines, the major importing countries are USA (55 products), the EU countries, namely, Germany
(52), France (48), Italy (42), Netherland (31), Spain (26) and UK (11), Japan (41), China (36), Canada (23), Russia (23) and Hong
Kong (23). The analysis provides an assessment of the existing and potential export destinations for exporters of Punjab for each of
the identified product.
Table 4.4: Top 10 Importers in the World with Market Share (%) for the Top 80% Exports of Punjab
HS 6 digit Product
Description
Top 10 importing countries in the World (%)
100630 Semi-
milled or
wholly
milled rice
Saudi
Arabia
(10.9%)
China
(6.8%)
USA
(5.6%)
South
Africa
(5.2%)
Malaysia
(4.0%)
Japan
(3.8%)
Benin
(3.2%)
France
(2.9%)
Yemen
(2.8%)
Cote
d'Ivoire
(2.8%)
220710 Undenatur
ed ethyl
alcohol
USA
(24.8%)
Germany
(13.4%)
Netherlan
ds
(12.1%)
Japan
(7.2%)
UK
(4.8%)
Sweden
(2.7%)
Italy
(2.6%)
Jamaica
(2.5%)
France
(2.5%)
Belgium
(2.2%)
230400 Oil-cake
and other
solid
residues,
Netherla
nds
(7.6%)
Indonesia
(6.4%)
Vietnam
(5.8%)
France
(5.4%)
German
y
(5.3%)
Thailand
(5.1%)
Japan
(3.4%)
Italy
(3.2%)
Poland
(3.0%)
Korea
(3.0%)
290611 Cyclanic,
cyclenic or
cycloterpe
nic
China
(35.6%)
USA
(14.0%)
Singapore
(6.9%)
German
y
(4.9%)
Thailand
(3.9%)
Indonesi
a
(3.1%)
Brazil
(2.9%)
Hong
Kong
(2.5%)
France
(2.2%)
Japan
(2.2%)
294110 Penicillins
and their
derivatives
India
(14.9%)
Italy
(12.1%)
Austria
(8.5%)
Belgium
(7.9%)
USA
(5.3%)
Netherla
nds
(4.3%)
Thailand
(3.0%)
Portugal
(3.0%)
Spain
(2.9%)
France
(2.9%)
294150 Erythromy
cin and its
derivatives
Japan
(17.4%)
India
(15.3%)
Italy
(10.3%)
UK
(6.6%)
USA
(4.6%)
Singapor
e
(3.3%)
Australi
a
(2.4%)
Mexico
(2.4%)
Belgium
(2.2%)
Croatia
(2.1%)
Table 4.4: Top 10 Importers in the World with Market Share (%) for the Top 80% Exports of Punjab (contd.)
294190 Other Italy
(16.1%)
Germany
(10.3%)
France
(7.5%)
USA
(7.4%)
Switzerl
and
(6.6%)
Belgium
(6.1%)
China
(6.0%)
India
(5.2%)
Japan
(3.0%)
Netherla
nds
(2.9%)
294200 Other
organic
compound
s.
India
(58.1%)
Jordan
(4.2%)
USA
(3.8%)
Saudi
Arabia
(2.7%)
Japan
(2.1%)
German
y
(2.1%)
Vietnam
(2.0%)
Italy
(1.7%)
France
(1.4%)
Netherla
nds
(1.4%)
300390 Other USA
(24.1%)
Belgium
(14.3%)
Ireland
(8.1%)
Italy
(5.0%)
Spain
(3.4%)
Tunisia
(3.2%)
China
(3.1%)
Netherla
nds
(2.6%)
Mexico
(2.4%)
Japan
(2.4%)
392020 Of
polymers
of
propylene
German
y
(8.3%)
USA
(7.9%)
China
(5.6%)
Belgium
(5.3%)
France
(4.8%)
UK
(4.2%)
Italy
(3.8%)
Poland
(3.2%)
Mexico
(3.0%)
Netherla
nds
(2.9%)
401150 Of a kind
used on
bicycles
German
y
(14.1%)
USA
(10.1%)
Italy
(5.7%)
Netherla
nds
(5.4%)
France
(5.0%)
Japan
(4.5%)
Brazil
(4.3%)
Mexico
(4.2%)
UK
(3.1%)
Spain
(2.5%)
401199 Other USA
(20.4%)
Australia
(11.6%)
Russia
(7.0%)
Canada
(6.7%)
Chile
(5.8%)
Indonesi
a
(4.8%)
Brazil
(3.7%)
South
Africa
(3.2%)
China
(2.8%)
Colombi
a
(2.6%)
401320 Of a kind
used on
bicycles
USA
(12.5%)
Germany
(10.6%)
Brazil
(6.8%)
France
(5.5%)
Mexico
(5.2%)
Japan
(4.7%)
Italy
(4.7%)
Netherla
nds
(4.0%)
Spain
(2.6%)
Poland
(2.4%)
Table 4.4: Top 10 Importers in the World with Market Share (%) for the Top 80% Exports of Punjab (contd.)
520299 Other China
(29.3%)
Germany
(13.5%)
Italy
(7.9%)
Belgium
(7.1%)
France
(6.4%)
Hong
Kong
(4.7%)
Netherla
nds
(3.6%)
Thailand
(3.1%)
Switzerl
and
(3.1%)
USA
(2.9%)
520511 Single yarn,
of
uncombed
fibres :--
China
(40.9%)
Hong
Kong
(13.5%)
Dominica
n
Republic
(11.9%)
Malaysia
(3.5%)
Egypt
(3.5%)
Turkey
(2.0%)
German
y
(2.0%)
El
Salvador
(2.0%)
Pakistan
(1.9%)
Sri
Lanka
(1.8%)
520512 Single yarn,
of
uncombed
fibres :--
China
(68.6%)
Turkey
(3.9%)
Hong
Kong
(3.2%)
Mexico
(2.9%)
Russia
(2.6%)
Korea
(2.1%)
El
Salvador
(1.9%)
Guatema
la
(1.6%)
Japan
(1.3%)
Portugal
(1.3%)
520513 Single yarn,
of
uncombed
fibres :--
China
(36.6%)
El
Salvador
(9.1%)
Korea
(8.5%)
Turkey
(7.3%)
Hong
Kong
(4.3%)
Guatema
la
(4.1%)
Portugal
(3.7%)
Spain
(2.4%)
Peru
(2.4%)
Colombi
a
(2.0%)
520514 Single yarn,
of
uncombed
fibres :--
China
(89.4%)
Hong
Kong
(4.7%)
Russia
(1.5%)
Japan
(1.1%)
Korea
(0.5%)
Indonesi
a
(0.4%)
Portugal
(0.4%)
Turkey
(0.4%)
Sri
Lanka
(0.2%)
Italy
(0.2%)
520521 Single yarn,
of combed
fibres :-- M
Sri
Lanka
(28.6%)
Hong
Kong
(11.7%)
Malaysia
(11.1%)
Mauritiu
s
(11.1%)
Egypt
(10.0%)
China
(5.4%)
Israel
(3.3%)
Philippi
nes
(1.7%)
Vietnam
(1.6%)
Guatema
la
(1.6%)
520523 Single yarn,
of combed
fibres :-- M
China
(20.8%)
Korea
(10.8%)
Hong
Kong
(7.4%)
Portugal
(6.1%)
Guatema
la
(5.1%)
Italy
(3.9%)
Peru
(3.8%)
Vietnam
(3.5%)
Turkey
(3.4%)
Indonesi
a
(3.2%)
Table 4.4: Top 10 Importers in the World with Market Share (%) for the Top 80% Exports of Punjab (contd.)
520524 Single yarn,
of combed
fibres :-- M
China
(41.1%)
Hong
Kong
(28.5%)
Korea
(3.9%)
Turkey
(2.9%)
Portugal
(2.2%)
Japan
(2.1%)
Italy
(2.1%)
France
(1.3%)
Indonesi
a
(1.2%)
Germany
(1.1%)
520532 Multiple
(folded%)
or cabled
yarn, o
Hong
Kong
(21.2%)
China
(20.3%)
Portugal
(11.3%)
Turkey
(8.9%)
Korea
(7.0%)
German
y
(4.5%)
Russia
(3.5%)
Belgium
(2.9%)
Italy
(2.4%)
Spain
(2.1%)
520544 Multiple
(folded%)
or cabled
yarn, o
Hong
Kong
(54.8%)
Italy
(13.8%)
China
(3.6%)
Mauritiu
s
(2.7%)
Portugal
(2.4%)
Japan
(2.3%)
Turkey
(1.9%)
Croatia
(1.6%)
Korea
(1.6%)
France
(1.5%)
520932 Dyed :-- 3-
thread or
4-thread
twill
Hong
Kong
(19.9%)
Mexico
(13.0%)
Indonesia
(5.2%)
Tunisia
(5.1%)
Morocco
(4.8%)
German
y
(3.6%)
Sri
Lanka
(3.6%)
China
(2.8%)
Vietnam
(2.8%)
Romania
(2.4%)
550130 Acrylic or
modacrylic
China
(19.6%)
Turkey
(14.5%)
Indonesia
(9.7%)
USA
(9.2%)
Romania
(5.4%)
Italy
(4.9%)
Kenya
(3.4%)
Pakistan
(3.3%)
India
(3.1%)
Egypt
(2.6%)
550320 Of
polyesters
USA
(13.0%)
Vietnam
(8.6%)
Germany
(8.5%)
China
(4.9%)
Indonesi
a
(4.5%)
Turkey
(4.3%)
Russia
(4.3%)
Italy
(4.1%)
Spain
(3.3%)
Mexico
(3.2%)
550330 Acrylic or
modacrylic
China
(42.3%)
Turkey
(10.9%)
USA
(8.2%)
India
(5.4%)
Indonesi
a
(5.1%)
Spain
(3.8%)
Italy
(3.6%)
Pakistan
(3.0%)
Romania
(1.6%)
Nepal
(1.3%)
Table 4.4: Top 10 Importers in the World with Market Share (%) for the Top 80% Exports of Punjab (contd.)
550932 Containing
85 % or
more by
weight o
Korea
(13.7%)
Hong
Kong
(9.4%)
France
(7.3%)
Russia
(7.0%)
Poland
(5.3%)
Argentin
a
(3.9%)
Ethiopia
(3.6%)
Italy
(3.5%)
USA
(2.9%)
Austria
(2.8%)
550953 Other yarn,
of
polyester
staple fib
Korea
(9.8%)
Turkey
(9.3%)
El
Salvador
(8.4%)
Portugal
(6.4%)
Colombi
a
(6.3%)
Egypt
(5.2%)
Japan
(4.5%)
China
(4.0%)
Spain
(3.4%)
USA
(2.8%)
610323 Suits :-- Of
synthetic
fibres
Japan
(20.3%)
Italy
(12.3%)
Israel
(6.6%)
Belgium
(5.8%)
Russia
(4.7%)
Spain
(4.7%)
Kuwait
(3.9%)
China
(3.2%)
Brazil
(2.9%)
Germany
(2.7%)
610510 Of cotton USA
(25.1%)
Germany
(9.4%)
Hong
Kong
(7.2%)
France
(7.0%)
Italy
(6.0%)
Japan
(5.7%)
Spain
(4.4%)
UK
(2.6%)
Netherla
nds
(2.4%)
Belgium
(2.3%)
610520 Of man-
made
fibres
USA
(45.8%)
Japan
(14.3%)
Germany
(4.3%)
Canada
(3.3%)
Australi
a
(2.8%)
Hong
Kong
(2.6%)
Brazil
(2.5%)
France
(2.4%)
UK
(2.1%)
Belgium
(2.0%)
610590 Of other
textile
materials
France
(12.4%)
Portugal
(10.8%)
Singapore
(9.3%)
USA
(5.5%)
South
Africa
(3.9%)
Hong
Kong
(3.7%)
Malaysia
(3.5%)
China
(3.4%)
German
y
(2.6%)
Italy
(2.5%)
610910 Of cotton USA
(19.0%)
Germany
(13.2%)
France
(6.4%)
Japan
(5.4%)
Spain
(4.8%)
Italy
(4.8%)
Netherla
nds
(4.4%)
Belgium
(4.0%)
Hong
Kong
(3.6%)
Canada
(2.3%)
Table 4.4: Top 10 Importers in the World with Market Share (%) for the Top 80% Exports of Punjab (contd.)
610990 Of other
textile
materials
German
y
(13.4%)
USA
(13.2%)
Japan
(11.5%)
France
(7.1%)
Spain
(5.5%)
Belgium
(3.7%)
Italy
(3.6%)
Netherla
nds
(3.3%)
Hong
Kong
(3.1%)
Canada
(2.3%)
611020 Of cotton USA
(38.8%)
Germany
(8.8%)
Hong
Kong
(7.3%)
Japan
(5.7%)
France
(4.7%)
Italy
(3.4%)
Spain
(3.2%)
Netherla
nds
(2.9%)
Canada
(2.7%)
Belgium
(2.1%)
611030 Of man-
made
fibres
USA
(25.1%)
Japan
(15.3%)
Germany
(9.9%)
France
(6.7%)
Hong
Kong
(4.9%)
Spain
(4.1%)
Italy
(3.2%)
Canada
(3.0%)
Belgium
(2.5%)
Russia
(2.3%)
611120 Of cotton USA
(31.0%)
France
(8.5%)
Germany
(6.6%)
Italy
(5.0%)
Hong
Kong
(4.9%)
Spain
(4.6%)
Japan
(3.7%)
Canada
(2.9%)
Saudi
Arabia
(2.7%)
Netherla
nds
(2.6%)
621490 Of other
textile
materials
German
y
(12.9%)
France
(11.3%)
Japan
(9.1%)
USA
(8.9%)
Spain
(4.9%)
Italy
(4.5%)
UK
(3.0%)
Belgium
(3.0%)
Netherla
nds
(2.9%)
Switzerl
and
(2.4%)
630190 Other
blankets
and
travelling
rugs
Saudi
Arabia
(21.2%)
Algeria
(5.8%)
Jordan
(5.2%)
India
(5.2%)
Vietnam
(3.1%)
USA
(3.0%)
Qatar
(2.7%)
German
y
(2.7%)
Yemen
(2.6%)
Netherla
nds
(2.5%)
630260 Toilet linen
and
kitchen
linen, of
USA
(38.4%)
Japan
(13.5%)
Germany
(6.5%)
France
(5.0%)
Canada
(2.8%)
Italy
(2.5%)
Russia
(2.4%)
Australi
a
(2.3%)
Spain
(2.3%)
Netherla
nds
(2.1%)
Table 4.4: Top 10 Importers in the World with Market Share (%) for the Top 80% Exports of Punjab (contd.)
630299 Other :-- Of
other
textile
material
France
(13.2%)
Germany
(9.8%)
Italy
(5.2%)
Panama
(4.7%)
USA
(4.5%)
Russia
(3.8%)
Singapor
e
(3.4%)
Algeria
(3.0%)
Spain
(2.7%)
Belgium
(2.5%)
630492 Not knitted
or
crocheted,
USA
(39.6%)
Germany
(9.8%)
Japan
(6.0%)
France
(4.1%)
India
(2.8%)
Canada
(2.6%)
Italy
(2.5%)
Australi
a
(2.4%)
Netherla
nds
(2.3%)
Sweden
(1.9%)
730791 Other :--
Flanges
USA
(15.1%)
Korea
(6.6%)
Germany
(6.3%)
Canada
(5.6%)
Saudi
Arabia
(4.3%)
Japan
(3.8%)
Singapor
e
(3.1%)
Mexico
(3.0%)
Thailand
(3.0%)
Malaysia
(2.6%)
730840 Equipment
for
scaffolding,
shutteri
Singapor
e
(8.1%)
Germany
(7.5%)
USA
(6.1%)
Saudi
Arabia
(4.7%)
Switzerl
and
(4.2%)
France
(4.0%)
Japan
(3.0%)
Canada
(2.8%)
Austria
(2.7%)
Russia
(2.5%)
730890 Other German
y
(7.5%)
Australia
(7.3%)
USA
(6.7%)
Korea
(6.2%)
Japan
(4.2%)
Saudi
Arabia
(4.1%)
France
(3.7%)
Norway
(3.2%)
Russia
(3.1%)
Switzerl
and
(2.8%)
731815 Threaded
articles :--
Other
screws
USA
(12.9%)
Germany
(9.6%)
China
(8.0%)
Mexico
(7.0%)
Canada
(4.4%)
France
(4.3%)
Thailand
(2.9%)
Brazil
(2.8%)
Netherla
nds
(2.5%)
Japan
(2.5%)
731816 Threaded
articles :--
Nuts
USA
(17.5%)
China
(9.0%)
Germany
(9.0%)
Mexico
(6.9%)
Canada
(5.7%)
Japan
(3.7%)
France
(3.5%)
Thailand
(3.5%)
Brazil
(2.6%)
Netherla
nds
(2.4%)
Table 4.4: Top 10 Importers in the World with Market Share (%) for the Top 80% Exports of Punjab (contd.)
731819 Threaded
articles :--
Other
German
y
(9.0%)
France
(6.4%)
Spain
(4.4%)
USA
(4.3%)
Russia
(4.0%)
Belgium
(3.9%)
Italy
(3.3%)
China
(2.9%)
Netherla
nds
(2.9%)
Czech
Republic
(2.8%)
731822 Non-
threaded
articles :--
Other
USA
(11.7%)
China
(11.0%)
Mexico
(7.0%)
German
y
(6.4%)
Thailand
(5.4%)
Canada
(3.2%)
Vietnam
(3.2%)
Indonesi
a
(3.2%)
Saudi
Arabia
(2.9%)
Brazil
(2.7%)
732690 Other USA
(8.5%)
Germany
(8.0%)
Mexico
(5.9%)
Thailand
(5.7%)
Korea
(5.2%)
France
(4.5%)
China
(4.3%)
Japan
(3.5%)
Russia
(3.2%)
Egypt
(2.9%)
820320 Pliers
(including
cutting
pliers%),
USA
(17.0%)
Germany
(7.4%)
France
(4.8%)
Canada
(4.7%)
Netherla
nds
(3.6%)
Belgium
(3.2%)
Mexico
(3.1%)
Russia
(3.0%)
Austria
(2.5%)
Italy
(2.5%)
820411 Hand-
operated
spanners
and
wrenches
USA
(19.3%)
Germany
(7.5%)
Russia
(5.2%)
Canada
(5.2%)
France
(4.3%)
China
(4.0%)
Japan
(3.3%)
Mexico
(2.8%)
Netherla
nds
(2.8%)
Italy
(2.5%)
820559 Other hand
tools
(including
glazier
USA
(15.1%)
Germany
(6.9%)
France
(6.1%)
Canada
(5.0%)
Russia
(3.9%)
Singapor
e
(3.2%)
Austria
(3.2%)
Switzerl
and
(2.8%)
Netherla
nds
(2.7%)
Denmark
(2.6%)
820570 Vices,
clamps and
the like
USA
(19.2%)
Russia
(8.5%)
Canada
(7.1%)
Thailand
(6.7%)
German
y
(6.7%)
Singapor
e
(3.0%)
Australi
a
(3.0%)
Japan
(2.7%)
France
(2.6%)
Belgium
(2.4%)
Table 4.4: Top 10 Importers in the World with Market Share (%) for the Top 80% Exports of Punjab (contd.)
840890 Other
engines
USA
(20.9%)
China
(17.6%)
Germany
(5.4%)
France
(4.8%)
Korea
(3.9%)
Italy
(3.5%)
Brazil
(3.4%)
Belgium
(2.7%)
Canada
(2.6%)
Turkey
(2.3%)
847290 Other USA
(12.7%)
Hong
Kong
(9.2%)
Japan
(6.4%)
Russia
(5.3%)
Singapor
e
(5.1%)
German
y
(4.4%)
China
(3.6%)
France
(3.3%)
India
(3.1%)
Turkey
(2.9%)
850421 Liquid
dielectric
transforme
rs :--
USA
(16.6%)
Russia
(7.1%)
Algeria
(5.3%)
German
y
(5.0%)
UK
(3.6%)
France
(2.9%)
Saudi
Arabia
(2.9%)
Canada
(2.7%)
Japan
(2.6%)
Mexico
(2.2%)
870190 Other USA
(14.8%)
France
(10.8%)
Canada
(7.1%)
German
y
(6.8%)
UK
(3.7%)
Belgium
(3.6%)
Poland
(3.3%)
Italy
(2.6%)
Australi
a
(2.5%)
Spain
(2.1%)
870880 Suspension
shock-
absorbers
USA
(20.3%)
Canada
(10.1%)
Germany
(8.5%)
Mexico
(8.3%)
Russia
(7.7%)
China
(4.8%)
UK
(3.3%)
Belgium
(3.0%)
Poland
(2.6%)
France
(2.5%)
870899 Other parts
and
accessories
:-- Oth
USA
(16.8%)
Spain
(12.4%)
Germany
(7.7%)
Mexico
(4.3%)
France
(4.2%)
Canada
(3.8%)
UK
(3.3%)
China
(3.2%)
Italy
(2.9%)
Thailand
(2.9%)
871200 Bicycles
and other
cycles
(includin
USA
(19.8%)
Japan
(10.7%)
Germany
(9.2%)
Netherla
nds
(5.4%)
France
(4.6%)
Belgium
(4.3%)
Australi
a
(3.4%)
Spain
(3.4%)
Canada
(3.0%)
Switzerl
and
(2.5%)
Table 4.4: Top 10 Importers in the World with Market Share (%) for the Top 80% Exports of Punjab (contd.)
871491 Other :--
Frames
and forks
German
y
(17.1%)
USA
(10.4%)
Hong
Kong
(9.3%)
Netherla
nds
(8.1%)
Italy
(5.3%)
France
(3.7%)
Japan
(2.8%)
Spain
(2.7%)
Portugal
(2.3%)
Russia
(2.1%)
871494 Other :--
Brakes,
including
coaster
Singapor
e
(18.0%)
Germany
(14.3%)
China
(8.7%)
Netherla
nds
(6.5%)
USA
(5.2%)
Italy
(4.2%)
Brazil
(3.4%)
France
(2.7%)
Poland
(2.4%)
Japan
(2.4%)
871496 Pedals and
crank-gear,
an
Singapor
e
(21.1%)
Germany
(13.7%)
USA
(8.7%)
Netherla
nds
(6.0%)
China
(6.0%)
Italy
(4.6%)
Spain
(2.5%)
France
(2.4%)
Brazil
(2.1%)
Japan
(2.0%)
871499 Other German
y
(11.6%)
Netherlan
ds
(10.3%)
Singapore
(8.5%)
China
(7.1%)
France
(4.9%)
USA
(4.9%)
Indonesi
a
(4.3%)
Italy
(4.0%)
Spain
(2.9%)
Belgium
(2.7%)
950699 Other USA
(30.9%)
Canada
(7.7%)
France
(5.4%)
German
y
(5.0%)
Japan
(4.7%)
Belgium
(2.9%)
Australi
a
(2.8%)
Netherla
nds
(2.5%)
Russia
(2.4%)
Switzerl
and
(2.2%)
Source: We calculation based on the data collected from UN Comtrade (WITS)
4.5 Analysis of Key Competitors’ for Thrust Products by Punjab Exporters: Once the top 10 importing countries for each of the
identified exportable from Punjab has been identified, the analysis revolves around identifying the major competitors of India for
these products. For this, the top 10 exporting countries for each of the 67 export interest item of Punjab has been studied. The
reference period is 2013-14. The exporting countries along with the percentage share in total exports are reported in Table 4.5. A
careful analysis of the Table suggests that across 67 tariff lines, India with 55 products is competing with China (61), Germany (49),
Italy (44), USA (39), France (35), Spain (30) and Belgium (30). However, out of 55 products; India’s share in total exports for the
following 27 tariff lines is very low (less than 10%): HS codes 220710, 230400, 294190, 300390, 401150, 401199, 550130, 550320,
550330, 550932, 610323, 610510, 610910, 610990, 730791, 730840, 731815, 731816, 731819, 731822, 820320, 850421, 8701090,
871491, 871494, 871496 and 871499. It is interesting to note here that out of these 27 tariff lines, 5 (HS Codes 230400, 550330,
730791, 731815 and 731816) constitutes the Priority 1 exports for Punjab, i.e., the world import demand for these products are
rising, India’s share in total world import demand is increasing and Punjab’s share in India’s total exports is also increasing. Another 8
tariff lines (HS codes 401199, 550320, 610323, 610910, 610990, 731816, 871494 and 971496) exist which constitutes the Priority 2
exports for Punjab, i.e., the world import demand for these products are rising, India’s share in total world import demand is
decreasing but Punjab’s share in India’s total exports is also increasing (refer to Table 3.7 in the previous Chapter). The above analysis
provides an assessment of the major competing export destinations for Punjab for each of the identified product.
Table 4.5: Top 10 Exporters (Competitors for Punjab Exports) to the World with Market Share (%) for the Top 80% Exports of
Punjab
HS 6 digit Product
Description
Top 10 Exporting countries to the World (%)
100630 Semi-milled
or wholly
milled rice,
India
(36.4%)
Thailand
(18.8%)
Vietnam
(13.2%)
Pakistan
(8.4%)
USA
(6.2%)
Italy
(2.6%)
Uruguay
(2.0%)
Australia
(1.5%)
Cambodia
(1.2%)
Belgium
(1.1%)
220710 Undenatured
ethyl alcohol
of an alc
Brazil
(27.2%)
France
(9.6%)
USA
(8.5%)
Netherlands
(8.3%)
Belgium
(5.9%)
Hungary
(4.3%)
Pakistan
(4.0%)
Spain
(3.0%)
India
(2.6%)
Germany
(2.6%)
230400 Oil-cake and
other solid
residues,
Argentina
(34.1%)
Brazil
(21.7%)
USA
(12.8%)
India
(9.1%)
Netherlands
(7.1%)
Paraguay
(3.0%)
Germany
(2.6%)
China
(2.0%)
Bolivia
(2.0%)
Belgium
(1.0%)
290611 Cyclanic,
cyclenic or
cycloterpenic
India
(41.7%)
China
(20.4%)
Germany
(16.5%)
Japan
(7.5%)
Singapore
(7.0%)
USA
(2.6%)
France
(1.3%)
Netherlands
(1.0%)
UK
(0.6%)
Paraguay
(0.4%)
29411
0
Penicillins
and their
derivatives
w
China
(35.9%)
Spain
(13.0%)
India
(10.4%)
Austria
(7.1%)
Singapore
(6.8%)
Belgium
(6.6%)
Italy
(5.4%)
Netherlands
(4.1%)
Mexico
(2.6%)
France
(2.5%)
29415
0
Erythromyc
in and its
derivatives;
s
USA
(48.3%)
China
(21.9%)
India
(14.9%)
Singapore
(4.7%)
Spain
(3.4%)
Malaysia
(1.7%)
Netherlands
(1.6%)
Thailand
(0.8%)
Germany
(0.6%)
France
(0.5%)
29419
0
Other Switzerla
nd
(23.2%)
China
(17.7%)
India
(7.8%)
Italy
(7.7%)
Belgium
(7.3%)
Ireland
(6.1%)
Netherlands
(4.9%)
USA
(4.8%)
Japan
(3.2%)
Korea
(3.2%)
29420
0
Other
organic
compounds
.
India
(77.2%)
USA
(6.7%)
China
(4.1%)
Germany
(1.9%)
Italy
(1.3%)
Korea
(1.1%)
UK
(0.8%)
France
(0.7%)
Singapore
(0.7%)
Finland
(0.5%)
30039
0
Other Israel
(31.6%)
USA
(11.7%)
Spain
(8.1%)
India
(4.7%)
Switzerlan
d
(4.0%)
Germany
(4.0%)
France
(3.9%)
Ireland
(3.7%)
Belgium
(3.4%)
Netherlands
(3.4%)
39202
0
Of
polymers of
propylene
Germany
(12.1%)
Italy
(10.3%)
Belgium
(7.0%)
China
(6.6%)
USA
(5.4%)
Turkey
(3.5%)
Japan
(3.4%)
Netherlands
(3.2%)
Mexico
(3.1%)
France
(2.8%)
40115
0
Of a kind
used on
bicycles
China
(31.5%)
Germany
(15.3%)
Indones
ia
(14.2%)
Thailand
(10.5%)
India
(7.6%)
France
(3.0%)
Sri Lanka
(2.8%)
Vietnam
(2.5%)
Czech
Republic
(2.4%)
Italy
(2.4%)
40119
9
Other Japan
(37.5%)
China
(12.2%)
India
(8.8%)
USA
(8.5%)
Belarus
(4.4%)
Italy
(3.3%)
Brazil
(2.6%)
Sri Lanka
(2.4%)
France
(2.3%)
Netherlands
(2.1%)
40132
0
Of a kind
used on
bicycles
China
(53.1%)
India
(12.2%)
Indones
ia
(8.0%)
Thailand
(7.4%)
Germany
(5.2%)
France
(2.7%)
Czech
Republic
(2.4%)
Vietnam
(2.3%)
Netherlands
(2.0%)
Serbia
(1.1%)
52029
9
Other India
(21.7%)
Turkey
(13.4%)
German
y
(11.2%)
Pakistan
(9.9%)
Belgium
(8.8%)
Indonesia
(5.9%)
Vietnam
(5.2%)
USA
(3.6%)
France
(3.4%)
Italy
(3.0%)
52051
1
Single yarn,
of
uncombed
fibres :--
India
(40.9%)
Pakistan
(21.9%)
China
(12.8%)
USA
(4.0%)
Turkey
(3.1%)
Vietnam
(2.9%)
Spain
(2.8%)
Italy
(1.7%)
Indonesia
(1.4%)
Ethiopia
(1.0%)
52051
2
Single yarn,
of
uncombed
fibres :--
Pakistan
(37.6%)
USA
(18.8%)
India
(17.4%)
Vietnam
(10.9%)
Indonesia
(3.2%)
China
(2.9%)
Turkey
(2.5%)
Mexico
(0.7%)
Thailand
(0.6%)
Azerbaijan
(0.6%)
52051
3
Single yarn,
of
uncombed
fibres :--
USA
(31.7%)
India
(26.3%)
Pakista
n
(9.7%)
Turkey
(7.4%)
Indonesia
(6.2%)
Vietnam
(6.1%)
China
(2.3%)
Mexico
(2.2%)
El Salvador
(1.3%)
Guatemala
(1.3%)
52051
4
Single yarn,
of
uncombed
fibres :--
India
(58.0%)
Vietnam
(28.6%)
Indones
ia
(6.6%)
China
(4.0%)
Turkey
(0.8%)
Pakistan
(0.8%)
Thailand
(0.5%)
Azerbaijan
(0.2%)
Germany
(0.1%)
Korea
(0.1%)
52052
1
Single yarn,
of combed
fibres :-- M
India
(68.5%)
China
(8.2%)
Thailan
d
(7.9%)
Pakistan
(4.1%)
Egypt
(3.3%)
El Salvador
(1.4%)
Italy
(1.1%)
Turkey
(0.9%)
Indonesia
(0.9%)
USA
(0.5%)
52052
3
Single yarn,
of combed
fibres :-- M
India
(58.8%)
China
(8.1%)
USA
(7.9%)
Korea
(7.1%)
Turkey
(4.0%)
Pakistan
(2.6%)
Indonesia
(2.3%)
Germany
(1.1%)
Malaysia
(0.8%)
Italy
(0.7%)
52052
4
Single yarn,
of combed
fibres :-- M
India
(50.3%)
China
(30.2%)
Korea
(3.7%)
Indonesia
(2.5%)
Vietnam
(2.3%)
Thailand
(2.3%)
Turkey
(2.1%)
Pakistan
(1.4%)
Germany
(0.9%)
Greece
(0.7%)
52053
2
Multiple
(folded%)
or cabled
yarn, o
Pakistan
(37.5%)
Nigeria
(21.0%)
India
(13.4%)
China
(12.6%)
Vietnam
(3.8%)
Belgium
(2.0%)
Germany
(1.8%)
Turkey
(1.7%)
Ethiopia
(0.9%)
Czech
Republic
(0.7%)
52054
4
Multiple
(folded%)
or cabled
China
(45.2%)
Egypt
(21.8%)
India
(18.1%)
Italy
(3.4%)
Pakistan
(3.2%)
Turkey
(2.1%)
Indonesia
(1.2%)
Belgium
(1.1%)
Germany
(0.6%)
Thailand
(0.6%)
yarn, o
52093
2
Dyed :-- 3-
thread or 4-
thread twill
China
(27.7%)
Pakistan
(16.2%)
USA
(11.7%)
India
(10.6%)
Germany
(5.7%)
Japan
(4.5%)
Spain
(3.7%)
Italy
(3.2%)
Thailand
(2.8%)
Korea
(1.3%)
55013
0
Acrylic or
modacrylic
Japan
(39.5%)
Thailand
(16.3%)
Portuga
l
(11.5%)
Belarus
(10.6%)
Korea
(6.0%)
Spain
(3.2%)
Peru
(3.0%)
Mexico
(2.5%)
Brazil
(2.4%)
India
(1.8%)
55032
0
Of
polyesters
Korea
(26.2%)
China
(24.8%)
India
(8.2%)
Thailand
(7.9%)
USA
(3.8%)
Ireland
(3.8%)
Malaysia
(3.5%)
Vietnam
(2.7%)
Indonesia
(2.6%)
Belgium
(2.4%)
55033
0
Acrylic or
modacrylic
Japan
(46.4%)
Thailand
(17.3%)
Korea
(6.9%)
Portugal
(6.8%)
Egypt
(6.3%)
Belarus
(5.3%)
India
(2.7%)
China
(2.1%)
Spain
(1.9%)
Peru
(0.8%)
55093
2
Containing
85 % or
more by
weight o
China
(33.1%)
Turkey
(16.2%)
Indones
ia
(14.2%)
Romania
(5.3%)
India
(3.2%)
Thailand
(2.9%)
Italy
(2.6%)
Belarus
(2.6%)
Spain
(2.5%)
Bulgaria
(2.4%)
55095
3
Other yarn,
of polyester
staple fib
USA
(31.5%)
India
(17.6%)
Vietnam
(12.7%)
Indonesia
(11.2%)
China
(9.2%)
Malaysia
(3.0%)
Thailand
(2.3%)
Turkey
(2.3%)
Pakistan
(1.7%)
Belgium
(1.3%)
61032
3
Suits :-- Of
synthetic
fibres
China
(86.4%)
India
(6.6%)
Morocc
o
(1.7%)
Italy
(1.6%)
Turkey
(0.6%)
Netherlands
(0.5%)
Vietnam
(0.4%)
Portugal
(0.2%)
Thailand
(0.2%)
Pakistan
(0.2%)
61051
0
Of cotton China
(28.6%)
India
(7.4%)
German
y
(6.0%)
Pakistan
(5.5%)
Vietnam
(5.5%)
Italy
(5.3%)
Turkey
(4.3%)
Peru
(4.1%)
Guatemala
(3.9%)
France
(3.6%)
61052
0
Of man-
made fibres
China
(39.5%)
India
(12.8%)
Vietnam
(10.7%)
Belgium
(4.7%)
Guatemala
(4.0%)
Thailand
(3.1%)
Indonesia
(2.5%)
Germany
(1.8%)
Jordan
(1.8%)
El Salvador
(1.6%)
61059
0
Of other
textile
materials
Pakistan
(34.9%)
Cambodia
(12.8%)
India
(10.3%)
Indonesia
(6.3%)
Philippine
s
(5.9%)
Portugal
(4.6%)
Italy
(3.1%)
Kenya
(2.2%)
Vietnam
(2.1%)
China
(1.8%)
61091
0
Of cotton China
(20.3%)
India
(8.7%)
Turkey
(8.3%)
Germany
(6.0%)
Spain
(4.8%)
Vietnam
(4.0%)
Cambodia
(3.9%)
Netherlands
(3.7%)
Belgium
(3.7%)
Italy
(3.5%)
61099 Of other China Turkey German India Belgium Vietnam Spain Italy France Mexico
0 textile
materials
(34.1%) (10.8%) y
(5.4%)
(5.3%) (4.7%) (3.9%) (3.3%) (3.1%) (2.3%) (2.1%)
61102
0
Of cotton China
(48.3%)
Vietnam
(6.8%)
German
y
(5.4%)
Turkey
(5.1%)
Netherlan
ds
(3.9%)
Italy
(3.7%)
Indonesia
(3.5%)
Spain
(3.0%)
Belgium
(2.3%)
France
(1.9%)
61103
0
Of man-
made fibres
China
(58.6%)
Germany
(5.3%)
Vietnam
(3.9%)
Turkey
(3.6%)
Italy
(3.6%)
Spain
(3.5%)
Belgium
(2.5%)
France
(2.0%)
Netherlands
(1.7%)
Indonesia
(1.6%)
61112
0
Of cotton China
(45.9%)
India
(12.1%)
France
(4.3%)
Germany
(3.3%)
Thailand
(3.1%)
Turkey
(2.7%)
Sri Lanka
(2.5%)
Spain
(2.3%)
Vietnam
(1.9%)
Netherlands
(1.8%)
62149
0
Of other
textile
materials
India
(51.7%)
China
(18.6%)
Italy
(10.3%)
Germany
(2.5%)
France
(2.2%)
Spain
(1.4%)
Madagascar
(1.3%)
Denmark
(1.2%)
Netherlands
(1.1%)
Turkey
(0.8%)
63019
0
Other
blankets
and
travelling
rugs
India
(28.9%)
Morocco
(10.7%)
Pakista
n
(7.6%)
Vietnam
(5.8%)
Indonesia
(5.8%)
South Africa
(5.0%)
China
(3.8%)
Belgium
(3.1%)
Turkey
(3.0%)
USA
(2.2%)
63026
0
Toilet linen
and kitchen
linen, of
China
(45.8%)
India
(13.7%)
Pakista
n
(11.8%)
Turkey
(9.4%)
Portugal
(3.5%)
Vietnam
(2.7%)
Germany
(1.7%)
Belgium
(1.7%)
Netherlands
(0.8%)
Colombia
(0.8%)
63029
9
Other :-- Of
other
textile
material
Pakistan
(19.9%)
India
(17.6%)
Egypt
(12.9%)
China
(11.3%)
Cambodia
(5.3%)
Turkey
(5.1%)
Spain
(4.5%)
France
(4.4%)
Italy
(3.8%)
Lithuania
(1.9%)
63049
2
Other :--
Not knitted
or
crocheted,
India
(66.1%)
China
(15.1%)
German
y
(3.7%)
Turkey
(2.7%)
Lithuania
(2.1%)
Portugal
(1.3%)
Poland
(0.9%)
Pakistan
(0.9%)
Belgium
(0.8%)
France
(0.6%)
73079
1
Other :--
Flanges
China
(26.3%)
Italy
(21.0%)
Korea
(9.3%)
India
(8.1%)
Germany
(6.6%)
Spain
(6.0%)
USA
(5.5%)
Japan
(2.1%)
Singapore
(1.9%)
Romania
(1.3%)
73084
0
Equipment
for
Germany
(19.7%)
China
(18.8%)
Austria
(7.7%)
Spain
(6.6%)
Italy
(5.8%)
Korea
(5.4%)
Poland
(3.4%)
India
(2.8%)
Turkey
(2.6%)
South Africa
(2.5%)
scaffolding,
shutteri
73089
0
Other China
(23.6%)
Germany
(9.1%)
Korea
(5.8%)
Poland
(5.1%)
Italy
(4.1%)
Belgium
(3.7%)
USA
(3.5%)
Netherlands
(3.3%)
Spain
(3.3%)
Czech
Republic
(3.1%)
73181
5
Threaded
articles :--
Other
screws
Germany
(18.0%)
China
(14.5%)
Japan
(12.0%)
USA
(10.4%)
Italy
(8.1%)
France
(4.4%)
Korea
(2.9%)
Netherlands
(2.7%)
India
(2.2%)
Switzerland
(2.1%)
73181
6
Threaded
articles :--
Nuts
China
(18.0%)
Germany
(15.9%)
Japan
(15.4%)
USA
(12.8%)
India
(6.1%)
France
(5.9%)
Italy
(3.2%)
Netherlands
(3.2%)
Korea
(3.2%)
Canada
(2.1%)
73181
9
Threaded
articles :--
Other
China
(21.5%)
Germany
(15.5%)
USA
(7.4%)
Switzerlan
d
(6.2%)
France
(5.4%)
Italy
(4.9%)
India
(4.0%)
Belgium
(3.6%)
Vietnam
(3.2%)
Spain
(2.5%)
73182
2
Non-
threaded
articles :--
Other was
China
(18.6%)
Germany
(17.1%)
Japan
(15.7%)
USA
(11.9%)
France
(4.1%)
Italy
(3.5%)
India
(3.1%)
UK
(2.4%)
Netherlands
(2.2%)
Belgium
(1.8%)
73269
0
Other China
(15.7%)
Germany
(13.3%)
USA
(9.0%)
Italy
(7.8%)
France
(3.9%)
Czech
Republic
(3.7%)
Korea
(3.6%)
Thailand
(3.4%)
Poland
(3.1%)
Austria
(2.8%)
82032
0
Pliers
(including
cutting
pliers%),
China
(43.0%)
Germany
(17.9%)
USA
(9.9%)
Netherlan
ds
(2.6%)
Belgium
(2.6%)
Sweden
(2.3%)
Switzerland
(2.3%)
Spain
(2.2%)
India
(2.1%)
Japan
(1.9%)
82041
1
Hand-
operated
spanners
and
wrenches
China
(34.1%)
India
(14.7%)
USA
(13.7%)
Germany
(13.4%)
Netherlan
ds
(2.2%)
Japan
(2.2%)
Italy
(1.9%)
France
(1.8%)
UK
(1.8%)
Belgium
(1.7%)
82055 Other hand China Germany USA France Singapore Austria Italy Switzerland Spain Israel
9 tools
(including
glazier
(24.2%) (12.5%) (11.9%) (6.5%) (4.4%) (3.8%) (3.8%) (3.6%) (2.4%) (2.1%)
82057
0
Vices,
clamps and
the like
China%)
(21.2%)
USA
(18.1%)
German
y
(13.4%)
India
(11.4%)
Singapore
(3.5%)
Italy
(3.5%)
Belgium
(2.7%)
Thailand
(2.0%)
Canada
(1.7%)
Japan
(1.6%)
84089
0
Other
engines
USA
(23.4%)
Japan
(19.2%)
German
y
(12.4%)
China
(6.6%)
France
(6.3%)
Italy
(6.0%)
Mexico
(5.3%)
UK
(3.1%)
Sweden
(2.7%)
Finland
(2.5%)
84729
0
Other China
(31.6%)
Germany
(13.5%)
Hungar
y
(9.3%)
Korea
(8.0%)
Thailand
(6.5%)
Japan
(5.2%)
Singapore
(4.9%)
USA
(3.8%)
Netherlands
(1.9%)
Italy
(1.7%)
85042
1
Liquid
dielectric
transforme
rs
Mexico
(10.8%)
USA
(6.7%)
Turkey
(6.3%)
China
(5.3%)
France
(5.0%)
Belarus
(4.8%)
India
(4.8%)
Spain
(4.6%)
Canada
(4.3%)
Brazil
(3.2%)
87019
0
Other Germany
(22.3%)
USA
(11.3%)
Italy
(10.6%)
France
(7.7%)
Japan
(7.1%)
UK
(4.6%)
Austria
(4.4%)
Belarus
(4.2%)
India
(4.1%)
Brazil
(2.5%)
87088
0
Suspension
shock-
absorbers
Germany
(17.2%)
USA
(13.8%)
China
(13.1%)
Japan
(8.0%)
Mexico
(6.4%)
Canada
(5.8%)
Spain
(5.1%)
Belgium
(3.8%)
Poland
(3.7%)
Korea
(3.1%)
87089
9
Other parts
and
accessories
Korea
(13.7%)
USA
(10.9%)
German
y
(9.2%)
Italy
(6.6%)
France
(6.0%)
Japan
(6.0%)
Spain
(5.4%)
Mexico
(5.3%)
China
(4.6%)
Thailand
(3.0%)
87120
0
Bicycles
and other
cycles
(includin
China
(43.3%)
Netherlan
ds
(9.7%)
German
y
(7.6%)
Cambodia
(4.9%)
Belgium
(3.7%)
Italy
(3.5%)
Spain
(2.5%)
Portugal
(2.4%)
Indonesia
(1.9%)
France
(1.9%)
87149
1
Other :--
Frames and
forks, and
par
China
(61.5%)
USA
(11.2%)
Italy
(5.9%)
Vietnam
(5.2%)
Netherlan
ds
(3.7%)
India
(3.1%)
Germany
(2.4%)
Belgium
(1.4%)
France
(0.8%)
Spain
(0.7%)
87149
4
Other :--
Brakes,
including
coaster
Malaysia
(18.3%)
Singapore
(18.2%)
China
(18.2%)
Japan
(18.1%)
Germany
(5.4%)
Italy
(4.1%)
Spain
(3.3%)
India
(2.4%)
UK
(1.8%)
Vietnam
(1.5%)
87149
6
Other :--
Pedals and
crank-gear,
an
Singapore
(19.7%)
Malaysia
(19.3%)
China
(17.1%)
Japan
(15.7%)
Germany
(4.3%)
Netherlands
(4.1%)
France
(3.0%)
Italy
(3.0%)
India
(2.7%)
Spain
(1.7%)
87149
9
Other China
(17.7%)
Singapore
(17.7%)
Japan
(13.9%)
Italy
(7.6%)
Indonesia
(5.3%)
Netherlands
(5.0%)
Germany
(5.0%)
India
(4.4%)
France
(4.0%)
Romania
(2.8%)
95069
9
Other China
(37.7%)
USA
(9.6%)
German
y
(5.5%)
Canada
(4.6%)
France
(4.4%)
Belgium
(4.1%)
Italy
(4.0%)
Czech
Republic
(3.2%)
Netherlands
(3.0%)
Spain
(2.1%)
Source: We calculation based on the data collected from UN Comtrade (WITS)
4.6 Analysis Of Tariff Barriers Faced On Thrust Products By Punjab Exporters: With waves of global economic liberalization and
harmonized trade policy regime under World Trade Organization, applied tariff for merchandize trade has been reduced by
participating countries significantly however there still exists such tariff barriers particularly in underdeveloped and select developing
countries of the world. An analysis of top 80% exports of Punjab indicates that products such as bicycle parts-other (HS code 401199),
staple yarn dyed-3-thread or 4-thread twill (HS code 520932), other yarn containing 85 % or more by weight (HS code ),other yarn, of
polyester staple (550953), suits (textiles item) falling under HS code 610323,610520, 610590, 610910, 610990, 611020, 611030,
611120, 621490, 630190, 630260, 630299, 630492, other threaded items falling under HS code 731819, 731822, 732690 and hand tool
falling under HS code 820320, 820411 attract duty more than 5% which is considered higher as there exist other duties such as
Countervailing Duty, Value Added Tax (Special Addition Duty of Customs) and different cess and levies which makes product relatively
expensive in international markets. With most of the identified thrust markets (Table 4.4), India does not have free trade/ preferential
trade agreements except Japan1, South Korea2, Sri Lanka, Nepal3Thailand, Vietnam, , Malaysia, Indonesia, Singapore and Philippines4,.
1With Japan, India has separate Comprehensive Economic Cooperation Agreement. 2With South Korea also, India has Comprehensive Economic Cooperation Agreement 3With Srilanka, India has Free Trade Agreement and other agreement SAFTA again cover Sri Lanka in addition to Nepal.
Exporters of thrust products from Punjab can leverage Certificate of Origin for availing duty preference or duty exemption subject to
fulfillment of rules of origin as mandated under signed agreements (refer footnote(s)) with these countries.
Table 4.6: Applied Average Tariff on Identified Products by Top 10 importers
HS 6 digit Product Description Average Applied
Tariff Rate5 (Top 10 Importer Countries)
100630 Semi-milled or wholly milled rice, 5.2
220710 Undenatured ethyl alcohol 2.5
230400 Oil-cake and other solid residues, 0.0
290611 Cyclanic, cyclenic or cycloterpenic 1.5
294110 Penicillins and their derivatives w 0.0
294150 Erythromycin and its derivatives; s 0.0
294190 Other 0.0
294200 Other organic compounds. 2.5
300390 Other 0.0
392020 Of polymers of propylene 4.2
401150 Of a kind used on bicycles 0.0
401199 Other 7.7
401320 Of a kind used on bicycles 0.0
520299 Other 0.0
520511 Single yarn, of uncombed fibres :-- 3.0
520512 Single yarn, of uncombed fibres :-- 3.8
520513 Single yarn, of uncombed fibres :-- 5.0
520514 Single yarn, of uncombed fibres :-- 3.5
4 Countries such as Malaysia, Vietnam, Indonesia, Singapore, and Thailand are covered under India-Asean FTA. Additional India has FTA with Thailand and CECA with Singapore. 5Note: The data corresponds to the average applied tariff maintained by Top 10 importers in 2013. No information is available for 610510.
520521 Single yarn, of combed fibres :-- M 2.5
520523 Single yarn, of combed fibres :-- M 4.2
520524 Single yarn, of combed fibres :-- M 3.0
520532 Multiple (folded%) or cabled yarn, o 3.0
520544 Multiple (folded%) or cabled yarn, o 2.0
520932 Dyed :-- 3-thread or 4-thread twill 7.3
550130 Acrylic or modacrylic 2.9
550320 Of polyesters 3.7
550330 Acrylic or modacrylic 3.3
550932 Containing 85 % or more by weight o 8.3
550953 Other yarn, of polyester staple fib 8.1
610323 Suits :-- Of synthetic fibres 7.5
610520 Of man-made fibres 11.4
610590 Of other textile materials 13.0
610910 Of cotton 8.3
610990 Of other textile materials 7.0
611020 Of cotton 5.4
611030 Of man-made fibres 8.4
611120 Of cotton 6.3
621490 Of other textile materials 5.7
630190 Other blankets and travelling rugs 7.8
630260 Toilet linen and kitchen linen, of 14.6
630299 Other :-- Of other textile material 8.4
630492 Not knitted or crocheted, 6.3
730791 Other :-- Flanges 2.7
730840 Equipment for scaffolding, shutteri 4.0
730890 Other 4.0
731815 Threaded articles :-- Other screws 2.1
731816 Threaded articles :-- Nuts 0.0
731819 Threaded articles :-- Other 5.2
731822 Non-threaded articles :-- Other 6.9
732690 Other 7.8
820320 Pliers (including cutting pliers%), 8.4
820411 Hand-operated spanners and wrenches 7.0
820559 Other hand tools (including glazier 1.7
820570 Vices, clamps and the like 3.3
840890 Other engines 1.1
847290 Other 0.7
850421 Liquid dielectric transformers :-- 6.7
870190 Other 0.0
870880 Suspension shock-absorbers 1.7
870899 Other parts and accessories :-- Oth 0.6
871200 Bicycles and other cycles (includin 4.0
871491 Other :-- Frames and forks, and par 2.8
871494 Other :-- Brakes, including coaster 2.5
871496 Pedals and crank-gear, an 3.0
871499 Other 4.2
950699 Other 4.0
Source: We calculation based on TRAINS database accessed from WITS
4.7 Assessing Price Attractiveness of Top 80% Products from Punjab: In order to assess the price competiveness of Punjab thrust
products in international markets, nominal protection co-efficient analysis is carried out which will help us understand how the logistics
costs affect the competiveness of identified thrust products exported from Punjab in the international markets. Accordingly, NPC
analysis is carried out between the import prices (CIF value) of identified thrust products of key importers with that average export
price of (FOB) value of Indian exporters. The formula for the analysis is:
CIF Value of Punjab identified products in top 10 Importers Nominal Protection Co-efficient: FOB value of Punjab identified products for Indian exports plus 12% logistics costs CIF value (import price) of top 10 importers of the world is also taken out and is tabled in appendix 4.3 indicating the average import
price of identified thrust exportable products from Punjab. Similarly; FOB value (export price) of Punjab identified thrust products is
taken out from all India average of export price (appendices 4.2) of same products. 12% logistics costs is added to FOB price of Punjab
identified thrust products in order to measure the price competitiveness of Punjab thrust products in international markets. Logistics
cost is the cost of transporting these goods from an Indian port to ports of identified key thrust markets. A ratio more than 1 (>1)
indicates that Punjab products are uncompetitive in key thrust markets due to high logistics costs and a ration less than 1 (<1) indicates
that Punjab identified products are competitive in international markets. Table 4.7 as under depicts the result of analysis and which
provides interesting results. Out of total entries of 660 (66 tariff sub-heading and 10 countries matrix), the data for NPC analysis is
available for only 431 tariff sub-heading. Market is found to be uncompetitive in 228 cases and found competitive in 403 cases of NPC
analysis of Punjab identified thrust products. In order to understand sector specific results, international markets are found to be
uncompetitive in majority of the cases for agricultural products and are found to be competitive for majority of engineering,
automobiles and hand tool products.
Product
Code (6
Digit)
Table 4.7: Nominal Protection Coefficient of India vis-à-vis Top 10 Importing Countries (2013)
100630
Saudi Arabia China United States South Africa Malaysia Japan Benin France Yemen Cote d'Ivoire
0.79 1.75 0.69 1.63 1.51 1.21 1.60 0.73 1.04 1.49
Competitive Uncompetiti
ve
Competitive Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetitive Competitive Uncompetitive Uncompetiti
ve
220710 United States Germany Netherlands Japan United
Kingdom
Sweden Italy Jamaica France Belgium
1.18 0.90 0.96 1.18 1.00 0.90 0.98 0.90 1.06 0.99
Uncompetiti
ve
Competitive Competitive Uncompetiti
ve
Uncompetiti
ve
Competitive Competitive Competitive Uncompetitive Competitive
230400
Netherlands Indonesia Vietnam France Germany Thailand Japan Italy Poland South Korea
1.15 1.12 1.09 1.14 1.10 1.12 1.04 1.15 1.11 1.14
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetitive Uncompetiti
ve
Uncompetitive Uncompetiti
ve
290611
China United States Singapore Germany Thailand Indonesia Brazil Hong Kong France Japan
1.15 1.32 1.02 1.11 0.92 0.99 1.08 0.94 0.98 0.78
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Competitive Competitive Uncompetitive Competitive Competitive Competitive
294110
India Italy Austria Belgium United States Netherlands Thailand Portugal Spain France
1.71 0.22 1.03 0.23 0.47 1.30 1.32 0.08 0.87 0.81
Uncompetiti
ve
Competitive Uncompetiti
ve
Competitive Competitive Uncompetiti
ve
Uncompetitive Competitive Competitive Competitive
294150
Japan India Italy United
Kingdom
United States Singapore Australia Mexico Belgium Croatia
0.21 2.00 0.17 0.40 0.87 0.23 0.25 1.01 0.10 4.45
Competitive Uncompetiti
ve
Competitive Competitive Competitive Competitive Competitive Uncompetiti
ve
Competitive Uncompetiti
ve
294190 Italy Germany France United States Switzerland Belgium China India Japan Netherlands
0.41 0.15 0.20 1.05 0.17 0.25 0.14 1.64 0.35 0.52
Competitive Competitive Competitive Uncompetiti
ve
Competitive Competitive Competitive Uncompetiti
ve
Competitive Competitive
294200 India Jordan United States Saudi Arabia Japan Germany Vietnam Italy France Netherlands
1.72 0.55 5.66 17.12 0.05 5.48 Quantity Not
Found
2.03 2.95 17.20
Uncompetiti
ve
Competitive Uncompetiti
ve
Uncompetiti
ve
Competitive Uncompetiti
ve
Uncompetiti
ve
Uncompetitive Uncompetiti
ve
300390
United States Belgium Ireland Italy Spain Tunisia China Netherlands Mexico Japan
0.27 0.08 0.14 0.11 1.04 0.46 0.07 0.91 0.99 0.30
Competitive Competitive Competitive Competitive Uncompetiti
ve
Competitive Competitive Competitive Competitive Competitive
392020
Germany United States China Belgium France United
Kingdom
Italy Poland Mexico Netherlands
0.67 0.72 0.55 0.73 0.71 0.77 0.90 0.84 0.89 0.87
Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive
401150
Germany United States Italy Netherlands France Japan Brazil Mexico United
Kingdom
Spain
0.59 0.37 0.79 0.46 0.52 0.59 1.30 1.28 0.18 0.65
Competitive Competitive Competitive Competitive Competitive Competitive Uncompetitive Uncompetiti
ve
Competitive Competitive
401199
United States Australia Russian
Federation
Canada Chile Indonesia Brazil South Africa China Colombia
4.14 0.16 0.53 0.85 0.21 Quantity Not
Found
5.47 0.12 0.13 0.57
Uncompetiti
ve
Competitive Competitive Competitive Competitive Uncompetitive Competitive Competitive Competitive
401320
United States Germany Brazil France Mexico Japan Italy Netherlands Spain Poland
0.88 1.02 1.50 0.93 1.56 1.02 1.12 0.90 0.84 1.15
Competitive Uncompetiti Uncompetiti Competitive Uncompetiti Uncompetiti Uncompetitive Competitive Competitive Uncompetiti
ve ve ve ve ve
520299
China Germany Italy Belgium France Hong Kong Netherlands Thailand Switzerland United States
1.31 1.03 0.98 1.03 1.01 1.54 0.78 1.12 0.72 1.05
Uncompetiti
ve
Uncompetiti
ve
Competitive Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Competitive Uncompetiti
ve
Competitive Uncompetiti
ve
520511
China Hong Kong Dominican
Republic
Malaysia Egypt, Arab
Rep.
Turkey Germany El Salvador Pakistan Sri Lanka
1.43 1.34 1.22 0.91 1.47 1.62 1.31 1.33 0.89 1.22
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Competitive Uncompetiti
ve
Uncompetiti
ve
Uncompetitive Uncompetiti
ve
Competitive Uncompetiti
ve
520512
China Turkey Hong Kong Mexico Russian
Federation
South Korea El Salvador Guatemala Japan Portugal
1.08 1.06 1.00 1.13 1.45 0.98 1.03 0.83 0.96 0.97
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Competitive Uncompetitive Competitive Competitive Competitive
520513
China El Salvador South Korea Turkey Hong Kong Guatemala Portugal Spain Peru Colombia
0.98 1.02 1.01 1.01 1.12 0.92 1.05 1.05 1.10 0.97
Competitive Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Competitive Uncompetitive Uncompetiti
ve
Uncompetitive Competitive
520514
China Hong Kong Russian
Federation
Japan South Korea Indonesia Portugal Turkey Sri Lanka Italy
1.12 1.12 1.46 1.01 0.82 0.69 0.92 0.82 1.00 0.85
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Competitive Competitive Competitive Competitive Uncompetitive Competitive
520521 Sri Lanka Hong Kong Malaysia Mauritius Egypt, Arab
Rep.
China Israel Philippines Vietnam Guatemala
0.94 0.61 1.02 0.77 1.04 1.08 1.35 1.04 0.94 0.90
Competitive Competitive Uncompetiti
ve
Competitive Uncompetiti
ve
Uncompetiti
ve
Uncompetitive Uncompetiti
ve
Competitive Competitive
520523
China South Korea Hong Kong Portugal Guatemala Italy Peru Vietnam Turkey Indonesia
1.09 0.98 1.00 1.01 0.88 0.84 1.10 0.97 1.05 1.00
Uncompetiti
ve
Competitive Uncompetiti
ve
Uncompetiti
ve
Competitive Competitive Uncompetitive Competitive Uncompetitive Uncompetiti
ve
520524
China Hong Kong South Korea Turkey Portugal Japan Italy France Indonesia Germany
1.11 1.06 0.96 0.98 0.98 0.83 0.84 0.61 1.28 0.88
Uncompetiti
ve
Uncompetiti
ve
Competitive Competitive Competitive Competitive Competitive Competitive Uncompetitive Competitive
520532
Hong Kong China Portugal Turkey South Korea Germany Russian
Federation
Belgium Italy Spain
0.99 1.27 1.06 1.12 1.11 0.85 0.99 0.97 0.90 0.88
Competitive Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Competitive Competitive Competitive Competitive Competitive
520544 Hong Kong Italy China Mauritius Portugal Japan Turkey Croatia South Korea France
1.02 0.62 1.20 1.18 0.91 0.93 0.82 113.21 1.02 0.62
Uncompetiti
ve
Competitive Uncompetiti
ve
Uncompetiti
ve
Competitive Competitive Competitive Uncompetiti
ve
Uncompetitive Competitive
520932
Hong Kong Mexico Indonesia Tunisia Morocco Germany Sri Lanka China Vietnam Romania
2.20 1.11 1.46 0.99 1.49 1.27 1.11 1.34 1.11 1.00
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Competitive Uncompetiti
ve
Uncompetiti
ve
Uncompetitive Uncompetiti
ve
Uncompetitive Uncompetiti
ve
550130 China Turkey Indonesia United States Romania Italy Kenya Pakistan India Egypt, Arab
Rep.
1.05 0.99 0.97 0.59 0.90 0.96 0.49 1.17 0.97 1.11
Uncompetiti
ve
Competitive Competitive Competitive Competitive Competitive Competitive Uncompetiti
ve
Competitive Uncompetiti
ve
550320
United States Vietnam Germany China Indonesia Turkey Russian
Federation
Italy Spain Mexico
1.04 0.96 0.98 0.94 1.07 1.02 1.07 0.96 0.95 0.91
Uncompetiti
ve
Competitive Competitive Competitive Uncompetiti
ve
Uncompetiti
ve
Uncompetitive Competitive Competitive Competitive
550330
China Turkey United States India Indonesia Spain Italy Pakistan Romania Nepal
0.82 1.05 0.65 1.10 1.04 0.65 0.65 1.16 0.97 1.88
Competitive Uncompetiti
ve
Competitive Uncompetiti
ve
Uncompetiti
ve
Competitive Competitive Uncompetiti
ve
Competitive Uncompetiti
ve
550932
South Korea Hong Kong France Russian
Federation
Poland Argentina Ethiopia(exclud
es Eritrea)
Italy United States Austria
1.45 1.14 0.65 1.31 0.94 0.90 2.49 0.76 0.96 0.54
Uncompetiti
ve
Uncompetiti
ve
Competitive Uncompetiti
ve
Competitive Competitive Uncompetitive Competitive Competitive Competitive
550953
South Korea Turkey El Salvador Portugal Colombia Egypt, Arab
Rep.
Japan China Spain United States
1.11 1.24 1.18 1.02 1.10 1.48 0.89 1.13 1.00 0.98
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Competitive Uncompetiti
ve
Uncompetitive Competitive
610323
Japan Italy Israel Belgium Russian
Federation
Spain Kuwait China Brazil Germany
0.84 1.11 1.61 1.05 0.40 2.43 0.33 0.70 0.86 0.84
Competitive Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Competitive Uncompetiti
ve
Competitive Competitive Competitive Competitive
610520
United States Japan Germany Canada Australia Hong Kong Brazil France United
Kingdom
Belgium
1403.40 924.41 924.41 1072.61 1594.60 1103.37 2567.25 755.96 492.82 1028.43
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetitive Uncompetiti
ve
Uncompetitive Uncompetiti
ve
610590
France Portugal Singapore United States South Africa Hong Kong Malaysia China Germany Italy
0.34 0.62 1.16 0.63 2.38 0.37 1.08 0.06 0.62 0.35
Competitive Competitive Uncompetiti
ve
Competitive Uncompetiti
ve
Competitive Uncompetitive Competitive Competitive Competitive
610910
United States Germany France Japan Spain Italy Netherlands Belgium Hong Kong Canada
1.83 0.66 0.95 0.66 1.13 0.89 0.88 1.14 0.84 1.16
Uncompetiti
ve
Competitive Competitive Competitive Uncompetiti
ve
Competitive Competitive Uncompetiti
ve
Competitive Uncompetiti
ve
610990
Germany United States Japan France Spain Belgium Italy Netherlands Hong Kong Canada
0.66 1.88 0.66 0.72 1.02 0.72 0.71 0.73 1.14 1.01
Competitive Uncompetiti
ve
Competitive Competitive Uncompetiti
ve
Competitive Competitive Competitive Uncompetitive Uncompetiti
ve
611020
United States Germany Hong Kong Japan France Italy Spain Netherlands Canada Belgium
1.90 0.71 1.21 0.71 0.82 0.74 1.05 0.74 1.21 0.77
Uncompetiti
ve
Competitive Uncompetiti
ve
Competitive Competitive Competitive Uncompetitive Competitive Uncompetitive Competitive
611030 United States Japan Germany France Hong Kong Spain Italy Canada Belgium Russian
Federation
1.60 0.73 0.73 0.96 1.32 1.09 0.89 1.11 0.94 0.91
Uncompetiti
ve
Competitive Competitive Competitive Uncompetiti
ve
Uncompetiti
ve
Competitive Uncompetiti
ve
Competitive Competitive
611120
United States France Germany Italy Hong Kong Spain Japan Canada Saudi Arabia Netherlands
0.23 0.19 0.20 0.20 0.23 0.32 0.16 0.17 1.09 0.28
Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive Uncompetitive Competitive
621490
Germany France Japan United States Spain Italy United
Kingdom
Belgium Netherlands Switzerland
0.78 0.72 0.78 1.20 0.88 0.94 0.27 0.82 0.85 0.78
Competitive Competitive Competitive Uncompetiti
ve
Competitive Competitive Competitive Competitive Competitive Competitive
630190 Saudi Arabia Algeria Jordan India Vietnam United States Qatar Germany Yemen Netherlands
4.87 6.54 2.65 Quantity Not
Found
Quantity Not
Found
1.77 3.05 1.64 6.50 1.75
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetitive Uncompetiti
ve
Uncompetitive Uncompetiti
ve
630260
United States Japan Germany France Canada Italy Russian
Federation
Australia Spain Netherlands
0.76 0.61 0.58 0.58 0.82 0.65 0.98 0.76 0.65 0.86
Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive
630299
France Germany Italy Panama United States Russian
Federation
Singapore Algeria Spain Belgium
0.33 0.50 0.25 0.89 0.34 1.07 0.56 3.39 0.47 0.49
Competitive Competitive Competitive Competitive Competitive Uncompetiti
ve
Competitive Uncompetiti
ve
Competitive Competitive
630492
United States Germany Japan France India Canada Italy Australia Netherlands Sweden
2.11 1.79 1.56 1.99 1.56 1.68 2.00 2.50 3.10 1.58
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetitive Uncompetiti
ve
Uncompetitive Uncompetiti
ve
730791
United States South Korea Germany Canada Saudi Arabia Japan Singapore Mexico Thailand Malaysia
0.93 1.10 0.87 0.71 0.52 1.14 0.70 0.57 0.57 1.02
Competitive Uncompetiti
ve
Competitive Competitive Competitive Uncompetiti
ve
Competitive Competitive Competitive Uncompetiti
ve
730840
Singapore Germany United States Saudi Arabia Switzerland France Japan Canada Austria Russian
Federation
0.50 0.76 0.72 0.78 0.51 0.66 0.82 0.69 0.68 0.69
Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive
730890
Germany Australia United States South Korea Japan Saudi Arabia France Norway Russian
Federation
Switzerland
0.76 0.50 0.70 0.99 1.09 1.01 0.97 0.57 0.66 0.66
Competitive Competitive Competitive Competitive Uncompetiti
ve
Uncompetiti
ve
Competitive Competitive Competitive Competitive
731815
United States Germany China Mexico Canada France Thailand Brazil Netherlands Japan
0.86 0.64 0.30 3.33 3.50 0.54 0.43 0.47 0.66 0.89
Competitive Competitive Competitive Uncompetiti
ve
Uncompetiti
ve
Competitive Competitive Competitive Competitive Competitive
731816
United States China Germany Mexico Canada Japan France Thailand Brazil Netherlands
1.82 0.64 1.47 27.26 6.32 1.15 1.05 0.87 1.03 2.06
Uncompetiti
ve
Competitive Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetitive Competitive Uncompetitive Uncompetiti
ve
731819
Germany France Spain United States Russian
Federation
Belgium Italy China Netherlands Czech
Republic
0.28 0.43 0.31 0.29 0.88 0.61 0.42 0.11 0.50 0.36
Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive
731822
United States China Mexico Germany Thailand Canada Vietnam Indonesia Saudi Arabia Brazil
0.54 0.10 0.93 0.27 0.15 0.80 Quantity Not
Found
0.16 0.21 0.28
Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive
732690 United States Germany Mexico Thailand South Korea France China Japan Russian
Federation
Egypt, Arab
Rep.
0.91 1.05 20.51 0.41 0.93 0.95 0.35 1.34 0.55 0.35
Competitive Uncompetiti
ve
Uncompetiti
ve
Competitive Competitive Competitive Competitive Uncompetiti
ve
Competitive Competitive
820320
United States Germany France Canada Netherlands Belgium Mexico Russian
Federation
Austria Italy
0.20 0.22 0.22 0.20 0.21 0.22 0.20 0.40 0.14 0.22
Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive
820411
United States Germany Russian
Federation
Canada France China Japan Mexico Netherlands Italy
0.31 0.45 0.79 0.31 0.32 0.40 0.38 0.68 0.28 0.49
Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive
820559
United States Germany France Canada Russian
Federation
Singapore Austria Switzerland Netherlands Denmark
Quantity Not
Found
0.50 0.43 Quantity Not
Found
0.75 Quantity Not
Found
0.28 0.15 0.55 0.19
Competitive Competitive Competitive Competitive Competitive Competitive Competitive
820570
United States Russian
Federation
Canada Thailand Germany Singapore Australia Japan France Belgium
Quantity Not
Found
0.48 Quantity Not
Found
0.16 0.57 Quantity Not
Found
0.72 0.67 0.74 0.66
Competitive Competitive Competitive Competitive Competitive Competitive Competitive
840890
United States China Germany France South Korea Italy Brazil Belgium Canada Turkey
0.31 0.16 Quantity Not
Found
0.26 Quantity Not
Found
0.27 0.20 0.11 0.16 0.25
Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive
847290
United States Hong Kong Japan Russian
Federation
Singapore Germany China France India Turkey
0.15 0.07 Quantity Not
Found
0.12 0.09 Quantity Not
Found
0.01 0.01 0.02 0.0005
Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive
850421
United States Russian
Federation
Algeria Germany United
Kingdom
France Saudi Arabia Canada Japan Mexico
0.13 0.05 0.18 0.03 0.10 0.48 0.03 0.11 0.03 567.07
Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive Uncompetiti
ve
870190
United States France Canada Germany United
Kingdom
Belgium Poland Italy Australia Spain
0.53 0.31 0.34 0.42 0.30 0.48 0.32 0.45 0.39 0.35
Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive
870880 United States Canada Germany Mexico Russian
Federation
China United
Kingdom
Belgium Poland France
0.59 0.58 0.81 0.58 0.72 0.72 0.76 0.78 0.78 0.90
Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive
870899
United States Spain Germany Mexico France Canada United
Kingdom
China Italy Thailand
0.55 1.31 0.75 0.47 0.75 0.50 0.76 0.49 0.65 0.70
Competitive Uncompetiti
ve
Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive
871200
United States Japan Germany Netherlands France Belgium Australia Spain Canada Switzerland
0.48 0.43 Quantity Not
Found
0.20 0.29 0.16 0.27 0.19 0.26 0.08
Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive
871491
Germany United States Hong Kong Netherlands Italy France Japan Spain Portugal Russian
Federation
3.33 1.96 4.48 3.08 9.07 4.07 3.96 6.74 9.05 24.94
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetiti
ve
Uncompetitive Uncompetiti
ve
Uncompetitive Uncompetiti
ve
871494
Singapore Germany China Netherlands United States Italy Brazil France Poland Japan
Quantity Not
Found
0.07 0.08 0.07 0.05 0.16 0.54 0.10 0.15 0.13
Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive
871496
Singapore Germany United States Netherlands China Italy Spain France Brazil Japan
Quantity Not
Found
0.05 0.03 0.09 0.12 0.12 0.08 0.09 0.39 0.09
Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive
871499 Germany Netherlands Singapore China France United States Indonesia Italy Spain Belgium
0.09 0.16 Quantity Not
Found
0.13 0.09 0.07 0.61 0.13 0.16 0.08
Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive Competitive
950699
United States Canada France Germany Japan Belgium Australia Netherlands Russian
Federation
Switzerland
Quantity Not
Found
Quantity Not
Found
Quantity Not
Found
Quantity Not
Found
Quantity Not
Found
Quantity Not
Found
Quantity Not
Found
Quantity Not
Found 11.55
(Uncompetitiv
e)
Quantity Not
Found
A Study on Punjab Export Potential and Strategy
CHAPTER 5:
CHALLENGES FOR EXPORTS FROM PUNJAB
In order to corroborate the secondary finding as analysed in Chapters 3 & 4 respectively
for identification of thrust products and thrust markets for Punjab exporters, it is
important to understand the infrastructural, operational and regulatory problems they
face while exporting their goods in international markets. Accordingly, a structured
questionnaire (Appendix 5.1) is prepared so as to find out the responses and feedback
of associated stakeholders i.e. exporters of different products of Punjab and associated
export promotion agencies. Total of around 1000 exporters1 were contacted and there
feedback was sought on various challenges faced by them while exporting the goods
from Punjab. A statistical analysis of exportable products by assessing the supply side
capabilities, demand side capacities and revealed competitive advantages of Punjab
export basket indicates that exports from several important sectors such as beverages,
spirits and vinegar, residues & waste from the food industry, organic chemicals, rubber
and articles, cotton, man-made staple fibres, art of apparel & clothing access, knitted or
crocheted, other made up textile articles, articles of iron or steel, tool, implement,
cutlery, spoon, nuclear reactors, boilers, vehicles for railway /tramway and rolling-
stock etc are competitive in international markets. Similarly, analysis of thrust markets
also provides scope for expansion and diversification of these sectors. Primary survey
was aimed at finding out the main obstacles and challenges that hinders the growth and
expansion of exports from Punjab. One of the most important feedbacks received from
industrialist and exporters is that they find it tough to expand their business in Punjab
as land prices are very high and they are looking for states which offer low costs land.
As land prices are high, costs of registration of land also costs them more vis-a-vis other
states as circle rates (fixed by revenue department) are high. An excise duty exempt
state(s) such as Himachal Pradesh and Uttarakhand were their main preferences;
however, some exporters particularly from engineering sector indicated that they
prefer coastal states such as Orissa, Andhra Pradesh and Maharashtra as more
competitive due to real-time, abundant and low cost availability of their key inputs for
such exportable products. It also reduces their inward as well as outward shipment
costs at the time of procurement of key inputs and at the time of exports. In order to
understand the challenges for growth, expansion and diversification of export sector
from Punjab, the challenges faced by exporters are structured into three broad
categories these are infrastructural, operational and regulatory.
1 Research Division, IIFT acknowledges its thanks to FIEO, EEPC, Textiles EPC, Wool & Wool Products EPC, Leather EPC, Handicrafts EPC, Chemical & Allied products EPC, Sport Goods EPC for their support for conduct of primary questionnaire. IIFT also extends thanks to PSIEC for their support and involvement in collection of data in timely manner.
A Study on Punjab Export Potential and Strategy
Figure 5.1: Challenges of Punjab Exporters
5.1 INFRASTRUCTURAL CHALLENGES FOR PUNJAB EXPORTERS: There is a general
perception in minds of exporters that Punjab is disadvantageously located at western
border and is not that attractive for future expansion and diversification in comparison
to the states of peninsular of India. State needs to have better infrastructure especially
that of roads, rail, airports and power as improvements in these will have direct impact
in reduction of transport costs for exports and imports. In fact, state needs to address
the problems associated with infrastructure for external trade with greater enthusiasm
as large presence of small scale units in Punjab necessitates the demand for improved
and developed infrastructural support services.
Even though agriculture contributes far less in State GDP, it is at centre of state
economic planning as more than 65 % population is directly dependent for agriculture
and acquiring fertile land from Punjab farmer will be a challenge for any government. In
fact, this makes industrial investment in Punjab relatively uncompetitive. State should
acquire unused land, if not possible, then preferably unfertile but not at logistically
disadvantageous locations and enunciate a transparent policy of making it available for
industrialization expansion in key sectors having export potential. With present
stringent Land Acquisition Bill, 2012, it will be a challenge for any state, but it can be a
facilitator in the process of “acquiring” land by private developers. In terms of physical
& virtual infrastructure, Punjab seems to be a better than most of the states of India, but
this impression seems deceptive when examined at interaction with Punjab exporters.
The major challenges in key areas of infrastructure in Punjab are discussed as under:
Infrastructural Challanges
•Railways Network for External Trade
•Road Network for External Trade
•International Airports for External Trade
•Availability, Affordability and Quality of Power Supplies
•Dry ports and Warehousing Infrastructure for External Trade
Operational Challanges
•Losing Opportunity of Border Trade with Pakistan
•Rising Logistics Cost•Issues of Market Access•Issues of Product
Compliance•Higher Cost of Financing of
Export Operations•Lack of Testing & Inspection
Facilities •Competition From Low cost
Chinese Products•Migratory Labour
Regulatory Challanges
• Challanges for Starting a Business
• Red-Tape in Dealing with Construction Permits
•Issues for Registering Property
•Prevailing Tax Regime & System
A Study on Punjab Export Potential and Strategy
a. Railways Network for External Trade: Punjab has approx. 3,700 kilometres of
railway track (Table 5.2) and is well connected to major maritime ports of the
country. Being on western front and exposed to recurrent tensions with
Pakistan, there has been special attention of Ministry of Railways to ensure last
mile connectivity to key town of Punjab. Almost 93 % of total railway network is
under broad gauge but unfortunately there has not been any noteworthy
extension of the track network in recent years except the proposed freight
corridors which will connect Punjab exporters to two important maritime ports
in Western and Eastern border.
Table 5.2-Railway Network (Route Kilometres) in Punjab
(As on 31.03.2013)
State Route Kilometres
Punjab 3726
India 65000
Source: www.punjabstat.com
Punjab exporters has expressed their deep interest and enthusiasm as proposed
freight corridors will not only provide outward export clearance at faster speed
and lower cost but ensure timely and cost effective supplies of key inputs used in
exportable material which will make their products even more competitive in
global markets. Exporters want the Punjab government to give highest priority in
taking up the matters related to delays in start of work at both eastern as well
western freight corridor so as to minimize the disadvantages related to
locational disadvantage for Punjab exporters. During interaction with exporters,
following are some of the challenges expressed by Punjab exporters for railway
services.
i. Inadequate supply of railway rakes which affect their timely
shipments to various destinations.
ii. Traditional and inadequate storage space at railway stations
iii. Inordinate delay in transportation of loaded railway rakes/ stuffed in
containers to gateway ports for subsequent shipment causing delays.
iv. Labour union at godowns, railway stations, warehouses and ports are
dictating their terms & condition, thus affecting stevedoring
operations.
v. Lower use of material handling equipments at railway stations,
godowns thus causing delays and transport hazards to goods.
b. Road Network for External Trade: Total road network for state of Punjab
seems impressive at more 84193 Kms (Appendix 5.5) however it is not adequate
for roads (highways) needed for heavy movements for externally traded cargo
from key industrial clusters of Punjab. The total lengths of national highways in
Punjab is 2136 km. (Table 5.3) and conditions of these roads in better if
A Study on Punjab Export Potential and Strategy
compared with other parts of the country. Table as under lists the major
highways and total highway network of Punjab.
Table 5.3: Length of National Highways in Punjab(As on 24.07.2014)
State National Highway Number Total
Length
(In Km)
Punjab 1, 1A, 10, 15, 20, 21, 22, 64, 70, 71, 72, 95,
103 A New,
503 Ext. New , 703 New 703A New & 754
New
2136.15
Source: Lok Sabha Unstarred Question No. 2218, dated on 24.07.2014.
Exporters has requested for expansion, lane-extension (widening) and
improvement in quality of existing roads. An analysis of highways of Punjab
corroborates the fact that major highways are yet to be widened into four lanes
and six lanes which will improve the speed of plying heavy loads container
trucks, ensure fuel efficiency and above all reduce time of transport for both
imports and exports. Around 60% of these national highways are still two lanes
and remaining four lanes. Policy makers of Punjab should take necessary steps to
eliminate the bottlenecks that exists in widening of national highways in Punjab.
Following are the national highways where problems exists and bottlenecks’
needs to be addressed for improving the quality roads for external trade.
Table 5.4: National Highways Which Will Improve Connectivity For External
Trade
Widening of Pathankot-Jammu Section of NH-1A,
Widening of Mukerian-Pathankot Section of NH-1A,
Widening of Bhogpur-Mukerian Section of NH-1A
Widening of Pathankot-Amritsar section of NH-15
Widening of Ludhiana Talwandi section of NH-95
Widening of Panipat-Jalandhar section of NH-1
Note: National Highway Authority has already started process for widening of these roads and state
government should address challenges in acquisition of land and critical gaps in funding of these projects
for timely completion
Exporters realise that existing road infrastructure of Punjab is certainly not
adequate for realising the innate potential of Punjab industry and strengthening,
widening and extending the road networks especially that of national highways
will help complement the construction of the dedicated freight corridor by the
railways and improve the inter-state network of the national highways. This will
also enhance the investment attractiveness of Punjab, which to an extent will
A Study on Punjab Export Potential and Strategy
neutralize the locational disadvantage and help Punjab exporters to tap the
global markets in more effective manner.
c. International Airports for External Trade: In today’s globalized world, the
needs of airborne trade cannot be underestimated as there are certain kinds of
cargo which can be traded only through air transports due to their inherent
nature, criticality, minimizing inventory and working capital employed. There
has been a healthy growth of air cargo traffic from India and Punjab contributes
handsomely (Table 5.5) in this air cargo traffic. As Punjab has only one
international airport, having limited access to prime international destinations,
exporters of Punjab are in a disadvantageous position as they have to route their
airborne cargo through Delhi International Airport. Modal choice pattern for
Punjab exporters is found as under:
Table 5.5: Modal Choice Pattern of Punjab Exporters & Associated Challenges
Area of Exports % of Air Transport as
Modal Choice
Exit Airport
Textiles, Made-ups & Allied
Articles
10-20% New Delhi
Engineering Goods 5-7% New Delhi/ Amritsar
Sports Goods Below 10% New Delhi
Leather & Allied Articles 15-20% New Delhi / Amritsar
Amritsar International Airport also lacks in some of the key facilities needed for
cargo handling for international shipments (Appendix 5.6) and as a result
exporters prefer to move their cargo via Delhi International Airport. This is
corroborated by the fact that Amritsar International Airport has total covered
areas of 2256 sq. m. of air cargo terminal and annual holding capacity is 60,833;
however only 70% of air cargo areas and below 50% of holding capacity is
actually utilized in 2013-142. However, up-gradation of Chandigarh International
Airport has provided access to international markets and increased domestic
connectivity to exporters of adjoining district including exporters from state of
Himachal Pradesh. As exit of goods from Delhi result in higher transport and
logistics costs, exporters has requested for creation of dedicated “Air Customs
Station” in line with existing dry ports such as Inland Container Deport and
Container Freight Stations. As exporters, during the interaction disclosed that
this will result in reduction of time in custom clearance, logistics costs, and
documentation and help reduced pilferage, thefts and other losses.
d. Availability, Affordability and Quality of Power Supplies: Punjab exporters
has complained about the power supplies to state industry. Our analysis
2International Airport Authority of India
A Study on Punjab Export Potential and Strategy
indicates that as for as availability of power services in Punjab is concerned, it is
adequately available at the moment, rather Punjab is better placed in availability
of power supplies vis-à-vis competing other states of India. Table 5.6 as under
depict the actual power supply in terms of energy requirements vis-a-vis
availability in Chandigarh, Punjab and Northern States of India and it is clear
from the table that power is adequately available for Punjab exporters.
Table 5.6: Actual Power Supply Position In Terms Of Energy Requirement Vis-À-
Vis Energy Availability Of Various States/ Systems During The Year 2013-14
Region / State / System Requirement Availability Surplus(+) / Deficit(-)
(MU) (MU) (MU) (%)
Chandigarh 1,574 1,574 0 0.0
Punjab 47,821 47,084 -737 -1.5
Northern Region 309,463 290,880 -18,583 -6.0
All India 1,002,257 959,829 -42,428 -4.2
Source: Central Electricity Authority 2014
Further diagnosis of the problem elucidates that power services for commercial
as well as for industrial sector are affordable and in fact are lesser priced than all
India average. Power tariff in Punjab are affordable and are lower for all sectors
except domestic sector where they are a little higher than all India average.
Table 5.7: Consumer Category-wise Average Power Tariff in Punjab (2013-2014)
(In Paise/Kwh)
State Dome-
stic
Commercial Agri./
irrig.
Indus-
trial
Rly.
Tractn.
Outside
State
Overall
Average
Punjab 424.23 616.84 0.00 586.68 613.79 43.25 367.03
India 407.84 764.00 183.06 625.89 663.85 325.01 479.84
Note: Figures are Annual plan Projection.
Source: Power & Energy Division, Planning Commission, Govt. of India. (ON494)
During the interaction with exporters, it is found that it is the quality of power
services that is a major challenge as sudden power fluctuation, lower power
voltage and power line faults are the major areas of concerns for Punjab
exporters.
e. Dry ports and Warehousing Infrastructure for External Trade: Even though,
Punjab has robust warehousing infrastructure which comprises of around 115
warehouses under the administrative control of Punjab State Warehousing
Corporation (PSWC) with a total storage capacity of 63.38 lakh MTs, but
exporters complained that they face operational problems in booking of storage
space and fumigation of cargo. In addition to this, Central Warehousing
Corporation has strong warehouse network of 26 warehouses which are utilized
A Study on Punjab Export Potential and Strategy
at 100% efficiency. PSWC also maintains a network of 8 dry ports out of total 10
dry ports based in Punjab. These are:
Table 5.8: Existing Infrastructure of Dry Ports in Punjab
S.No Name of CFS/ICD/LCS Ownership Districts
1 Chhehretta PSWC Amritsar
2 Dappar PSWC SAS Nagar
3 Jullundhar PSWC Jullundhar
4 Ludhiana PSWC Ludhiana
5 Bathinda PSWC Bathinda
6 Air Cargo Complex-Rajasansi Amritsar
7. Amritsar Railway Station Amritsar
8 Attari -Amritsar Amritsar Source: PSWC, CWC, Department of Commerce, GOI
Following are specific problems expressed by Punjab exporters while dealing
with these warehouses and dry ports in Punjab.
i. Custom Official always give priority to Public warehouses for booking
the bonded cargo even if exporter can avail the same area of space
from private warehouse at comparatively lower cost and associated
documentation.
ii. It takes time to process and submit the “space certificate” in certain
cases especially when import shipments of key inputs, catalysts and
ingredients are needed for production of exportable goods.
iii. There are cases of pilferage and custom charge duty for these goods
even if the theft, pilferage, loss have occurred in the bonded
warehouse area.
iv. Procedure for inspection, sorting, grading, cleaning, stuffing and de-
stuffing of bonded warehouses cargo needs to be simplified.
5.2 OPERATIONAL CHALLENGES FOR PUNJAB EXPORTERS: One of the key
challenges for Punjab exporters is poor operational environment of business as it
impacts their strengths in key areas of exports and render available economic
opportunities untapped. Punjab industrial environment has been affected by the fiscal
concessions granted by the Government of India to the neighbouring hill states as it has
led to a movement of industrial units away from Punjab to these states, for example, to
shifting of textiles and hand tool industry to neighbouring Himachal Pradesh and
Jammu region of J&K. State industry suffers from problem of labour as locals are either
economically well-off or “self-complacent” with what they have and as a result industry
has to depend on migratory labour from Uttar Pradesh, Bihar and West Bengal. If, state
economic resources are already under crunch, there is no need to announce repeatedly
various industrial packages, subsidies and sops as it leads to lack of trust and confidence
among prospective investors. Due to vitiating political &diplomatic relations with
A Study on Punjab Export Potential and Strategy
Pakistan, the opportunity of border trade still remained untapped and euphoria created
regarding this without significant progress on transparent, open and stable trade
regime has affected the expansion, diversification and other business plans of Punjab
exporters. Various operational problems that exporters of Punjab face are discussed as
under:
a. Losing Opportunity of Border Trade with Pakistan: Exporters of Punjab
especially that of engineering, textiles & apparel, agro products, leather,
pharmaceuticals & drugs, wool &woollen items, etc. are of opinion that the
euphoria created in 2011-12 regarding the growing trade opportunities with
Pakistan cannot be realised until stability, trust and confidence in political,
diplomatic and economic ties between two countries can be achieved. India’s
stand on grant of ‘Most Favoured Nation’ or ‘Non-Discriminatory Market Access’
has not been taken seriously by Pakistan even after repeated reminders and
present trade regime under “negative list” doesn’t offer viable trade
opportunities. More so, relaxed and predictable visa regime, transparent banking
and payment settlement including issues of coverage of risks, both transport and
credit, should also be addressed on priority. Ease in transport and predictable
transportation regime with certainty of frequency in case of road transport is
must for tapping the trade opportunities both in exports and imports with
Pakistan. There is a sense of disappointment among exporters that same has not
been achieved knowing the fact that there exists a $10 billion trade opportunity
between two countries out of which only $2 billion is formally exchanged. If
Government of India can take necessary steps on its part and convince Pakistan
for mutually benefitting economic ties, traders as well as service providers of
Punjab will be major beneficiary of any such initiatives.
b. Rising Logistics Cost: Exporters of Punjab has complained about the rising cost
of transport which has increased as high as Rs. 15,000 for JNPT even after fall in
oil prices in recent months. Logistics service providers such as CONCOR may take
week(s) for onward transport even after timely custom clearance. Even
container operators charge exorbitant prices for “Container In& out” for export
of cargo. Shipping lines deliver containers at their sister dry port concerns which
charge higher cargo handling charges. Exporters feel that they are clearly at
disadvantage while competing with exporters based on coastal states due to high
logistics costs for export operations from Punjab.
Punjab, being a hinterland state has locational disadvantages in trading across
border and is naturally ranked behind the maritime states of India. It is ranked at
no. 12th in ease in trading across borders and time taken for exports is around 21
days involving a cost of $ 1105 (20 feet container) which is higher than the
national average. Similarly time for imports is 25 days involving the costs of
$1154 thus affecting the supplies of key importable inputs needed for textiles,
A Study on Punjab Export Potential and Strategy
chemical, hand tool and engineering industries of Punjab. Table 5.9 as under
depicts the time and costs involved at various stages of export and import
procedure involving important steps such as documents preparation custom
clearance, port & terminal handling and inland transportation for Punjab
exporters and importers.
Table 5.9: Time and Costs in Trading Across Borders for Punjab Exporters
Nature of Export Procedures Duration (days) US$ Cost
Documents preparation 9 213
Customs clearance and inspections 5 13
Ports and terminal handling 3 175
Inland transportation and handling 4 705
Totals 21 1,105
Nature of Import Procedures Duration (days) US$ Cost
Documents preparation 10 233
Customs clearance and inspections 3 16
Ports and terminal handling 6 200
Inland transportation and handling 6 705
Totals 25 1,154
c. Issues of Market Access: Analysis of identified thrust markets indicates (Table
4.4- top ten importers for Punjab’s top 80% products) that India does not have
any preferential or free trade agreements for major buyers of top 80% exports
from state of Punjab. Punjab exporters face tariff barriers in key markets of
Europe, North America and Australia. 95% of Punjab exporters responded that
Europe and North America are the key markets for their exportable products and
they do not enjoy any tariff preference in these countries. Phasing out of GSP
scheme which used to offer them non-reciprocal tariff preference is cited as
another reason for affecting their export prospects in these developed countries’
markets.
Exporters complained that the existing schemes for promoting market access for
Indian exporters has outlived its relevance as existing schemes such as MDA
grant assistance to exporters only once for each continent and max number of
such assistance cannot be more than 5. Exporters feel that Export Promotion
Bodies should allow them to choose markets from one continent only but 5
times. Similarly, grant under the MAI is available to associations/ federations /
chambers and research studies, business campaigns etc.; only big exporters are
able to make use of it and small exporters have rarely heard of the same.
Exporters demand for extension of list of “Focus Product Scheme” so as to
include more products from Punjab as these are produced by small exporters
and also fulfil the criteria of freight disadvantages that are associated with
Punjab exporters.
A Study on Punjab Export Potential and Strategy
d. Higher Cost of Financing of Export Operations: Exporters complain about
rising cost of export financing, both at pre-shipment and post shipment level
which makes their exportable products priced-out vis-a-vis their competitors
from China and other countries. Exporters demand that cost of export financing
should be pegged at par with Chinese exporters to make them competitive in
international markets. In addition to this, banks take lot of time in processing of
pre-shipment finance due to their “centralized operations” thus affecting their
working capital needs at critical time of export orders execution. Exporters
demand for continuation of “Interest Subvention Scheme” so as to neutralize the
impact of high cost of financing of export transactions.
e. Issues with Taxation Authorities: Exporters face lot of problems especially
when dealing with taxation authorities be it central taxes such as central excise,
customs and services tax or state level taxation authorities such as VAT officials.
Government of Punjab levies higher rates of value added tax on goods such as
yarn, and as a result, traders procure such items from other states such as
Gujarat, Uttar Pradesh and Rajasthan which do not impose any tax on yarn,
thereby affecting local industry. Exporters of bicycle particularly are facing
challenges of “Inverted Duty Structure”, thus resulting in cheap imports of
bicycle parts from ASEAN countries and China. Bicycles exporters have
demanded for an urgent review of India’s existing FTA(s) affecting their industry
and has requested for imposition of anti-dumping duty so as to address the
problem of cheap imports of bicycles and components from China.
Exhibit 5.10: VAT Refunds - Punjab Exporters Complains of Delay and Red-Tape
During the course of primary survey, exporters of Punjab have complained that state
government is making “inordinate” delay in paying VAT refunds. Exporters has
complained that there are no ‘timely disbursements of VAT refunds’ despite the fact that
state VAT department has rolled-out ‘rating scheme’ in this regard. Majority of the
exporters claimed that the cash flow of various industry verticals, including light
engineering sector, auto parts, hand tools, textiles & apparel had been hit due to delay in
tax refund, while some of the large exporters informed that they are fed up with the
state’s “snail paced” refund system. During the interaction with the engineering
exporters at Jalandhar in association with EEPC, various hand tool exporters informed
that they are facing problems with regard to VAT refunds as there is a long delay in
payment of such refunds by the excise and taxation department, which adversely affect
their working capital requirements. Exporters have been questioning the rationale of
the launch of “Star Rating” scheme which is advertised as one stop solution to VAT
refund problems by state agency. Exporters complain that if state government does not
have funds for processing the refund claims which are more than Rs. 100 crores, then
what is the rationale for opting for the scheme as it has the provision of heavy penalty.
A Study on Punjab Export Potential and Strategy
Exporters are demanding that penalty clause should be removed, as in case of wrong
VAT even unintentionally, has provision for slapping penalty from 200 per cent to 500
per cent of tax refund. Under the star rating scheme, dealers or tax assesses, having 5
star rating will be given VAT refund within 15 days, followed by 4 star rating dealers to
get refunds within 25 days, 3 star dealers will get within 30 days and 2 star to get
refunds within 45 days. Dealers, other than star rating dealers, would get VAT refunds
within 60 days. Exporters informed that average VAT refund pendency even after
highest star rating is more than 90 days and in some cases it may take even years.
Exporters also face problems from custom department as sometimes their
shipment are destined to gateway ports at CIF terms but importers apply for
transhipment bond with Indian customs for delivery to dry port located near
factory and business premises. Custom official does not send the Sub-Manifest
(Important custom documents which is part of IGM filed by shipping co. at
gateway port) to destined dry ports thus affecting custom clearance process at
dry port (ICD/CFS) in Punjab. Traders has to pay additional fee for seeking
amendment in IGM, thus adding costs in addition to important time lost in trade
process. Similarly, central excise officials take lot of time in processing of ARE-2
for claim of duty rebate under rule 18 of Central Excise Rules 2002 and may
sometimes engage in corrupt practices for clearance of rebate claims.
f. Lack of Testing & Inspection Facilities: Keeping in mind the export
performance of Punjab, there is lack of testing labs and export inspection
infrastructure and Punjab exporters has to send their cargo for testing and
inspection to other places, causing delay in manufacturing and export
operations. In fact, EIC approved inspection services are available only for honey
and milk products and major areas of exports such as sport goods, engineering
items, vulcanized rubber products, wool & wool products, textiles and allied
articles, basmati rice, etc. lack the required testing and inspection agencies.
Engineering exporters based in Jalandhar in particular demanded for setting up
of a testing lab & inspection agency at Jalandhar itself. Exporters, in fact
demanded that existing sub office of Export Inspection Council may kindly be
upgraded with lab at par with what the exporters of Ludhiana already have. In
addition to this, exporters complained that even existing labs do not have
requisite manpower to handle their business requirements resulting in waiting
time of sometimes weeks, thus affecting their export operations.
g. Competition from Low Cost Chinese Products: Exporters complained about
the low cost Chinese products entering Indian markets and thus affecting their
business operations. Bicycles &bicycles part manufactures in particular are most
affected from penetration of Chinese bicycles and parts in Indian markets.
h. Migratory Labour: Industry of Punjab is dependent on migrant labour due to
shortage of local labour and these migrant labour are completely unskilled when
they arrive from other states like UP, Bihar, West Bengal and Orissa. They have
A Study on Punjab Export Potential and Strategy
to be trained for work in textiles, bicycle, hand tool, sport goods and leather
article work. They work for some months of a year after which they leave for
native place or may switch from one place to another for better wages, thus
affecting the business operations of exporters. More so, they are looked upon
more as problem by local people, occasionally referred as “Dirty, Dangerous and
Difficult outsiders”. Key export sectors of Punjab cannot survive their business
operations without labour migration which unfortunately is characterised by
temporary tenure, poor working condition, and at times physical and verbal
abuses and human rights violation of engaged labour and as a result, industry
has to offer them sops such as accommodation, mobile phone, bicycle and
television with dish TV network, thus increasing the cost of business operations
and making their product unattractive in international markets.
Table 5.11: Punjab Bicycle Industry faces Acute Labour Shortage
India is world’s second largest bicycle producer after China accounting for about 10
percent of global bicycle production and with an estimated market size worth $1.5
billion. Indian bicycle industry produces about 15 million finished bicycles annually.
The bicycle industry is one among the key sectors of Punjab exports and is facing
serious crisis of labour shortage and around 55-60 percent of total labour engaged are
from states of Bihar, Uttar Pradesh and West Bengal. There are around 5000 small and
big manufactures of cycles and cycle parts and they are offering free-sops like free
accommodation, gas connection, mobile phone and bicycle to these labourers in order
to retain them which add additional costs to their business. Sometimes, cycle
manufactures has to pay commission to agents in order to hire the new recruits from
different backward states. In addition to this, there are organized labour contractors’
services and they charge high commission for bringing labour. Exporters complained
that wages has also gone up significantly in last 5 years; coupled with low costs Chinese
imports of bicycles and cycles parts, their business profit has just halved in last five
years.
5.3 REGULATORY CHALLENGES FOR PUNJAB EXPORTERS: During the course of
interaction with exporters and associated stakeholders, it is found that Punjab is not
among attractive destination for industrial investments for both local as well as foreign
investors. Punjab is ranked at no. 7th in ease of starting a new business and dealing with
construction permits, 11th in ease of norms for registering property, 4th in enforcing
contracts and unfortunately 12th in trading across borders. Due to long distance
involved from main maritime ports, Punjab is not considered as an attractive
destination for investments and business in spite of the fact that people of Punjab are
full of innate entrepreneurial talent and enthusiasm for business as they know how to
handle various kinds of risks associated in business mainly due to their history &
culture. However, exporters in today’s Punjab feel that state administrative machinery
is inefficient, promote red-tape and administrative delays. Their approach towards
A Study on Punjab Export Potential and Strategy
business promotion & industrialization is apathetic as political masters incentivize
more to agricultural sectors than industries. State government has introduced the
‘single window clearance system’ for multiple approvals from the state government but
unfortunately it has not worked in favour of industry and export sector. Table as under
indicate the rank of Punjab vis-a-vis other states of India in ease of doing business. The
story at ground seems more pessimistic than what this table speak about.
Table 5.12: Ludhiana (Punjab) Rank on Key Indicator for Ease of Doing Business
in India
Starting a
Business
Dealing with
Construction
Permits
Registering
Property
Paying
Taxes
Trading
Across
Borders
Enforcing
Contracts
Resolving
Insolvency
7 7 11 1 12 4 2
Source: World Bank Report 2014
a. Challenges for Starting a Business: In order to start an export business in
Punjab, one has to take around 12 licenses (Appendix 5.1) from various
authorities for starting a domestic business and 7 additional licenses for exports
& imports from central authorities. The cumulative time taken for taking
procedural licenses for domestic business is around 35-50 days involving
significant costs as well. Similarly, licenses and approvals from central
authorities may require around 90 days with approximate costs of Rs. 25000-
30,000. Appendix 5.1 as appended indicate the approximate costs& time
involved in starting a new business in Punjab. Table as under depicts the number
of formalities, time taken and associated costs for state of Punjab and compare it
with countries of South Asia and OCED.
Table 5.13: No. of Procedure, Take taken and Associated Costs for Starting a New Business in Punjab
Indicator Ludhiana South Asia OECD
Procedures (number) 12.0 7.9 4.8
Time (days) 33.0 16.0 9.2
Cost (% of income per capita) 48.0 14.6 3.4
Paid-in min. capital (% of income per capita) 0.0 14.2 8.8
b. Red-Tape in Dealing with Construction Permits: The costs and time taken in
dealing with construction permits is also at higher side. There are around 17
procedural formalities that a businessman in Punjab has to complete in order to
start construction work; however, average procedural formalities for a lesser
developed countries of South Asia is just 14 and that of OCED countries is 12
only. Permissions and approvals for start of construction work may require
around 143 days and as a result there is sub-standard allied infrastructure for
export promotion. For example, the warehousing costs in Punjab are higher as
A Study on Punjab Export Potential and Strategy
compared to other states in India. Cost and time involved in dealing with
construction permits in Punjab is appended in Appendix 5.2.
c. Issues for Registering Property: Punjab is ranked at 11th in ease in
registration of property in the state and it may take 67 days’ time in completing
the whole process of property registration which is layered at four stages
involving significant costs (Appendix 5.3). Even after proclaimed success of
Punjab Business Summit, investors has not shown any enthusiasm for
investments and prime reason for reluctance of business houses is that land is
extremely expensive coupled with high cost of registration. Prominent business
houses which are allotted land has complained about high cost of property
registration in Punjab.
d. Prevailing Tax Regime & System: Ease in payment of taxes is the only
parameter where Punjab ranked one of the best among Indian cities; however
tax rate as percentage of total profits are much higher at 67.6 %, in fact, far
higher than the lower developed countries of South Asia. Table 5.14 as under
depict the number of taxes involved in export chain, frequency (number) of
payments, mechanism for payments, time required (in hours) and rate of taxes,
nature of tax base and applicable taxes rates (% of profits). Central taxes are
neutralized through duty neutralization schemes such as Advance Authorisation,
duty Free Import Authorisation and Duty Drawback, it is unfortunate to note that
state taxes are not refunded with, thus making exports from Punjab unattractive
in international markets vis-a-vis their competitors. During course of interaction
with exporters especially that of textiles and engineering sectors, exporters
informed that it is easier for them to do business in states such as Maharashtra,
Tamil Nadu, Gujarat and Orissa especially in ease in handling the state taxes.
Table 5.14: Prevalent Tax Rates for Various Manufacturing, Trading and Services Activities in Punjab
Tax Or Mandatory
Contribution
Payme
nts
(Numb
er)
Mechanis
m Of
Payments
Time
(Hours
)
Statutory
Tax Rate
Tax Base Total
Tax
Rate (%
Profit)
Central Sales Tax 12 112 2%
Against
Form C
Purchase Price 22.98
Corporate Income
Tax
1 Online
Filing
47 30.00% Taxable Profits 19.92
Social Security
Contributions
12 96 12.00% Gross Salaries 13.54
Stamp Duty 0 10.00% Transaction Value 6.06
Employee's State
Insurance
Contribution
12 4.75% Gross Salaries 4.64
A Study on Punjab Export Potential and Strategy
Dividend Tax 1 14.00% Dividend
Distributions
3.45
Property Tax 1 Range
From 1-
2%
Property Area 1.91
Income Surcharge 0 Paid
Jointly
10.00% On All Federal Taxes 0.94
Fuel Tax 1 6% + INR
3.25 Per
Liter
Fuel Consumption 0.51
Fringe Benefit Tax 4 30.00% Value Of Specified
Corporate Expenses
(Usually 20%)
0.26
Tax On Insurance
Contracts
1 Online
Filing
12.36% Insurance Premium 0.26
Vehicle Tax
(Pollution)
1 INR
2,500
Per Vehicle In Use 0.13
Education Fees 0 Paid
Jointly
2.00% All Federal Taxes
Including The
Surcharge
0.01
Secondary &
Higher Education
Fees
0 Paid
Jointly
1.00% All Federal Taxes
Including The
Surcharge
0.01
Environment Tax 0 0.00
Tax On Interest 0 Withheld 20.00% Interest Income 0.00
State VAT 12 12.50% Value Added 0.00
CENVAT (Excise
Duty)
1 Online
Filing
16.48% Value Added 0.00
Municipal
Business Tax
0 0.00
Municipal
Employee Tax
0 0.00
Totals: 59 255 67.6
In today’s globalised era, businesses throughout the world prefer a low cost availability
of land, friendly investment climate, lesser bureaucratic red-tape, and transparent and
quick decision-making and low transactions costs for business operations. As our
statistical analysis concludes that Punjab has competitive advantages in exports of
goods such as beverages, spirits and vinegar, residues & waste from the food industry,
organic chemicals, rubber and articles, cotton, man-made staple fibres, art of apparel &
clothing access, knitted or crocheted, other made up textile articles, articles of iron or
A Study on Punjab Export Potential and Strategy
steel, tool, implement, cutlery, spoon, nuclear reactors, boilers, vehicles for railway
/tramway and rolling-stock etc, it can enhance economic opportunities for the state
exporters by implementing a favourable regulatory framework thus enabling them
compete better in international markets.
CHAPTER 6:
SUGGESTIONS FOR PROMOTING EXPORTS FROM PUNJAB
The export sector of Punjab, even after enjoying innate competitive advantages in
several areas such as beverages, spirits & vinegar, residues & waste from the food
industry, organic chemicals, rubber & articles thereof, cotton, man-made staple fibres,
art of apparel & clothing access-knitted or crocheted, other made up textile articles,
articles of iron or steel, tool, implement, cutlery, spoon, nuclear reactors, boilers,
vehicles of tramway or rolling-stock, etc. is at an important crossroads and is awaiting
for policy interventions for growth, expansion and diversification. State exporters have
shown a great resentment for operational challenges they face in running their business
in Punjab. Accordingly, there are suggestions for both policy makers and exporters of
Punjab.
6.1 Suggestions for Improving the Operational Business Environment:State
administration has to address the problems/bottlenecks in each of the identified ‘thrust
products’ and ‘thrust markets’so as to promote the exports from the state. Policy
makers of Punjab should address the following challenges so as to provide good
operating environment for business as state exporters have a feeling that they have
some of unaddressable problems/challenges for doing business in Punjab. These are
locational disadvantages resulting in high cost of logistics, migrant unskilled labour and
associated unrests, scale disadvantages of their sizes, etc. However, there are some
addressable problems which should be taken care of by state administration. These are:
a. State exporters have lot of resentment for claim of Vat refunds. Exporters
reported a huge backlog of vat refunds which affect their working capital
requirements. State administration should address these concerns of exporters
with immediate priority and enthusiasm.
b. State exporters complained of departmental harassments which affect their
working and business operations. State administration need to sensitize the
officers/ executives of various state departments about the benefits that exports
bring to the state. Training workshops for such state departments on issues
related to export imports may be conducted in order to familiarize them about
the documentation and procedural formalities that an exporter has to complete
in order to export.Hence they should be cooperated on completion of state
specific compliance related to various departments,for example, labour,
electricity, vat, etc.
c. State has adequate electricity to fulfil the needs of industry and cost per unit is
also not uncompetitively priced (Tables 5.6 & 5.7).However there are plenty of
problems expressed by state exporters on quality of power services. There are
power fluctuations, line disruptions, untimely repair & maintenance of lines,
lower voltage etc. These need to be addressed.
d. Punjab does not have any state of art “exhibition cum trade fair centre”. Other
states of India like Tamil Nadu and Karnataka have set-up state of art exhibition
cum trade fair centres in collaboration with ITPO. The projects are funded under
ASIDE Scheme (state component). Administration of Punjab should explore such
opportunity to set-up a state of art exhibition cum trade fair centre at Ludhiana.
e. State should endeavour to set-up dedicated export enclaves
(SEZ/EOU/STPI/BTP) in the identified thrust products. Similarly, Apparel
Parkas implemented for Ludhiana apparel exporters should have physical
structure according to specifications desired by international buyers as well as
by national brands and at par with the best trade parks globally. This will help
offset the challenges of fragmented nature of Punjab textiles and apparel
industry which comprises of large number of small sized units. Availability of
large variety of products at one place will make it one of the most sought-out
destination for sourcing of textiles, made-ups and garments.
f. Agriculture Export Zones as set-up in various parts of Punjab has not
contributed in terms of infrastructure support and marketing assistance to
Punjab exporters. AEZ should be strengthened for promoting exports of agro-
processed products from Punjab.
g. State has large presence of micro, small and medium enterprises which are
lacking on issues related to identification of key product segments, key markets,
product compliances, quality issues, cultural sensitivities of international
buyers, modes of entry, foreign business alliances, export import procedure &
documentation, EXIM finance & international banking procedure and managing
international logistics. State should have a dedicated foreign trade training
institute to provide training and other assistance to state exporters.
h. Ludhiana & Jalandhar are major hubs for business in the state of Punjab.
However, exporters from both the states depend on Delhi International Airport
for international consignments as flights from Amritsar & Chandigarh have
limited air transport connectivity. An air customs station in Ludhiana as well as
in Jalandhar should be set-up in order to cater to specialized needs of air-borne
cargo on similar lines of a dry port (ICD/CFS).
i. State should impress upon on central government for improving relations with
Pakistan, as this will open up plethora of trade and business opportunities for
state exporters.
j. Testing and calibration lab for engineering exporters of Punjab should be set-up.
Existing Hand Tool Training Institute should be up-graded so as to fulfil
technical gaps in advanced areas.
k. Courses aimed at skill development & training of unskilled migrant labour
should be launched under the existing MSME training center for fulfilling the
manpower requirements of labour intensive industries such as bicycle, textiles
& apparel, engineering goods, hand tools, auto components, rubber & plastics
and leather products.
l. Hand tool exporters need a dedicated state of art forging & lathe centre at
Jalandhar so as to design newer and innovative products with changing pattern
of world import demand.
m. Successful completion of ‘dedicated freight corridor’ as proposed and under
implementation can change the business landscape of Punjab. State should
constantly endeavour to address the challenges in successful and timely
implementation of proposed corridor.
n. State should identify the unused land and prioritize to give it to sectors
identified as potential growing sectors (thrust products-Table 3.8) for the state
economy.
Suggestions for Punjab Exporters: State exporters should plan and strategize to harness
their underlying strengths in identified thrust products and state government should
constantly encourage Punjab exporters to tap larger share in international markets. Our
analysis of identification of thrust products in Chapter 3 concludes several tariff
subheading where exporters from Punjab have enjoyed supply-side capabilities and
demand-side capacities. 28 specific subheading falling under 12 chapters of ITC(HS)
nomenclature are identified as key thrust products and state should address all the
problems associated with these sectors in order to enable them garnering increased
share in international markets. For ease of understanding for a common man, these
identified thrust products are grouped into 6associated businesssectors.These are:
a. Agriculture : (ITC HS Chapter 1-24)
b. Drugs & Pharma : (ITS HS Code 29-30)
c. Rubber & Plastics Products : (ITC HS Code 39-40)
d. Cotton, Textiles & Apparel : (ITC HS Code 52-63)
e. Engineering, Hand Tool and Auto Components : (ITC HS Code 73-85)
f. Bicycles & Bicycles parts : (ITC HS code 87)
In the light of our analysis under various chapters, following suggestions are made for
enhancing and facilitating the growth, expansion and development of export sector of
Punjab for products falling under the these sectors.
6.1 Cotton, Textiles, Apparel and Made-ups: State of Punjab is a major grower of cotton
among few Indian states and has a long established history of cottonspinning and
weaving industry. For majority of tariff lines researched in Chapter 3, Punjab’s share in
India’s textiles exports is constantly increasing. Following are suggestions for growth,
expansion and diversification of cotton, textiles and apparel export sector of Punjab.
a. Punjab exporters should be encouraged for expansion and diversification of their
production capacities where world demand is expanding (see Table 3.5). State
exporters should be encouraged to invest in expanding sectors;alternatively
foreign investments should be invited so as to advance the manufacturing chain
of cotton to finished products as many of the cotton based products (sub-heading
falling under chapter 52) are exported as raw material. Hence, state exporters
should be encouraged to expand into downstream activities for manufacture of
textiles made-ups, apparel and home furnishing.
b. Tariff sub-heading under certain HS code for cotton, textiles, made-ups and
apparel has shown a rising trend of Punjab exports in India’s exports’ share thus
indicating state has supply capabilities in these areas. These codes are 520299,
520512, 520513, 520514, 520523, 550330, 550953, 550320, 610323, 610910,
610990, 611030, 621490, and 630190. State exporters should be encouraged to
consolidate their position further in these areas of exports.
c. World import demand for certain HS code falling under textiles and apparel
sector is expanding. Accordingly, Punjab exporters should be encouraged to
explore the increased export opportunities in these segmentsas Punjab exports
has witnessed a significant expansion in world imports of certain textiles and
apparel segments. These are HS codes for various types of yarns 520299, 520512,
520513, 520514, and520523, HS codes of textiles made-ups 550320, 550330,
and 550953, and HS codes of apparel610323, 610520, 610990, 611030, 621490,
and 630190.
d. Punjab textiles and apparel exporters should prioritize their exports strategy of
textiles and apparel around the following HS codes 520299, 520512, 520513,
520514, 520523, 550330, 550953 and 610520 as the share of Punjab as well as
that of India in these segments has witnessed a rising trends in the last five years
(2009-14). Exporters of Punjab should prioritize these segments of textiles,
made-ups and apparel as Priority 1 exports. HS code falling under 550320,
610323, 610910, 610990, 611030, 621490 and 630190 are Priority 2 exports
where the Punjab’s share in world imports in rising, however that of India is
declining.
e. Rising share of state textile products manufactured through acrylic or modacrylic
or of polymers is praiseworthy but state textiles industry should find some
balance with man-made fibre where share of Punjab textiles (of made-ups)
exports is declining in India’s textiles exports basket. This will enable them to
achieve sustainable growth, expansion and development in the globally
expanding sectors of (world demand) of manmadeand blended textiles.
f. State textiles exporters have to invest in technological advancements so as to
enable themselves for mass production at lower cost for international markets.
State exporters should be encouraged for up-gradation of their business through
central schemes such as “Technological Fund Up-gradation Scheme” (TUFS) and
Zero Duty Export Promotion Capital Goods Scheme. For enhancing the
production capacities of state exporters, number of textiles parks should be
multiplied as it will help in expansion and consolidation of state textiles industry.
Cluster based approach can be used so as to attract MSMEs of textiles sectors at
one location, thus ensuring pooling of limited available resources, i.e. land, labour
and capital. International buyers also like to visit such places where they can find
variety of products at one place, additionally this will significantly offset the scale
disadvantages attached to their small and medium sizes. State government can
extend its support by making land available and other required infrastructure for
expansion of textiles industry in Punjab either by itself or through PPP model.
g. State has large presence of small scale units in textiles, made-ups and apparel
sector which needs modernization of their production techniques and practices.
Textiles & Wool EPC should take exporters’ trade delegation to countries such as
China, Turkey, Vietnam and Bangladesh where manufactures have introduced
cost effective and innovative production techniques. This will help them enhance
their scale, quality and design capabilities thus making their products attractive
for exports.
6.2 Agricultural Products and Processed Foods: Punjab is an agriculturally advanced
state with dedicated surplus in many areas of agro-production. State exports significant
volumes of Basmati Rice, Honey, fruits, vegetables, processed foods, beverages &
vinegar and value added milk products. While the sectoral contribution of agriculture in
the economy is decreasing, that of agro exports as percentage of total agro production is
risingand has remained stagnant as percentage of exports (Table 2). This indicates that
state agro exporters are increasingly looking-up at international markets and also
scaling-up its agro value chain towards value added products (Table 3.8). Following are
the suggestions for growth, expansion and development of agriculture and agro-
processed foodexports from Punjab.
a. The key sectors for agro exports promotion from Punjab are wheat, basmati &
non-basmati rice, other cereals, oilseeds& their value added products,cotton,
fruit, vegetables, milk, honey, meal & offal and other animal husbandryproducts.
Export earnings from such sectors percolates to rural agro farmers, directly or
indirectly thus resulting in employment generation and improvement in living
standards of people employed.
b. Our analysis in Chapter 3 indicates that undenatured ethyl alcohol (HS code
220710) and Oil-cake and other solid residues (HS code 230400) enjoy revealed
competitive advantage in international markets and world demand for these
products is increasing in world market.Hence exporters of such agro products
should be encouraged to tap their strengths in international
markets.Additionally, exports of undenatured ethyl alcohol (HS code 220710)
from Punjab, although have a low export base, needs attentionas world demand
for the same is rising coupled with the fact the Punjab as well as India’s share of
exports in world import market is increasing. Exporters of Punjab should
consider it a Priority 1 exports so as to leverage their innate strengths in
international market.
c. Exporters of cereals from Punjab shall explore the export opportunities in
markets such as Saudi Arabia (10.9%), China (6.8%), USA (5.6%), South Africa
(5.2%), Malaysia (4.0%), Japan (3.8%), Benin (3.2%), France (2.9%), Yemen
(2.8%), Cote d'Ivoire (2.8%) as these are largest importers of cereals. Similarly,
largest importers of undenatured ethyl alcohol (HS code 220710) are USA
(24.8%), Germany (13.4%), Netherlands (12.1%), Japan (7.2%), UK (4.8%),
Sweden (2.7%), Italy (2.6%), Jamaica (2.5%), France (2.5%), Belgium (2.2%)
and that of Oil-cake and other solid residues (HS code 230400) are Netherlands
(7.6%), Indonesia (6.4%), Vietnam (5.8%), France (5.4%), Germany (5.3%),
Thailand (5.1%), Japan (3.4%), Italy (3.2%), Poland (3.0%), Korea
(3.0%).Exporters of Punjab has RCA advantages in these agricultural sub-sectors
and should be encouraged to make use of available export opportunities in
international markets.
d. DGCI&S data shows that agriculture sectors do not have consistency of ‘exports
orders’ and one of the reason told by agro exporters is that of missing link
between sellers and buyers of such products. Associated export promotion
councils/ state agro marketing board should work not only for the development
of agro-based industries but facilitate Punjab’s agro products exporters with
longer-term contractual arrangements for purchase of produce by key
international buyers, i.e., large retail multinationals.
e. The focus should be on regular and dedicated exports volumes each year and
same can be achieved by dedicated agro productions for exports of the identified
crops from state’s Agri-Export Zones. For promoting exports of processed agro
products, it is important to have nexus between industry and agriculture as this
can help disseminate best technology and best agro production practices among
Punjab farmers on the one hand and orienting Punjab agro products industry
towards exports on the other.
f. Availability of post harvest infrastructure and ease in logistics is important for
promoting agriculture and agro-products exports. Policy makers should attract
investments in logistics sectors including cold chains, warehouses, reefer vans,
bins & panels, etc. Improved agro infrastructure not only facilitate the agro
exports but reduce the waste, decay and losses associated with perishable agro
products.
6.3 Drug & Pharmaceuticals: Ranbaxy-Daichiisone of the largest Indian pharmaceutical
company situated in Punjab. Additionally, Punjab has good strength of small and
medium enterprises located in the state. Drug and Pharma industry has mellowed
export growth in recent years; however their share in India’s total drug and pharma
exports is rising both for organic chemicals and pharmaceuticals. There is a need for
expansion of export basket of drug and pharma products and investments are needed
for both domestic and foreign firms for enlarging the drug &pharmaceutical production
in Punjab. Following are the suggestions for growth, expansion and development of
drug & pharma exporters of Punjab.
a. State exporters should explore the possibilities for increased exports in HS codes
290622 (Cyclanic, cyclenic or cycloterpenic) and 294200 (other organic
compounds) where the world demand is expanding. Additionally, India’s as well
as Punjab’s share is rising in world imports, thus issues related to supply side
constraints should be addressed for these sectors. Additionally, drug & pharma
products falling under HS code 290611 (Cyclanic, cyclenic or cycloterpenic) and
294200 (Other organic compounds) indicate revealed competitive
advantage for these products.Exporters of Punjab should strategize to explore
available export opportunities in these segments.
b. Exports of drugs falling under HS code 294200 (Other organic compounds) is
expanding in world market and that of Punjab has witnessed a declining trend
except for the year 2011-12 when it witnessed a huge jump of 6.90% of world
imports. Drug & pharma industry in association with policy makers, should
address the challenges & problems as world import demand for this segment has
exhibited continuity.
c. Punjab exporters should be encouraged to tap the growing opportunities for
trade with expanding world imports demand for drug & pharma segments such
as HS codes 290611(Cyclanic, cyclenic or cycloterpenic), 294190
(Othercompounds) and294200 (Other organic compounds).
d. Average exports growth rate of tariff lines falling under chapter 29 (sub-heading
294190, 294110, 294200, 290611 and 294150) has been lower than average
growth rate of Punjab. The possible reasons can be supply side constraints which
need to be addressed by Punjab drug & pharma industry in association with
policy makers of Punjab.
e. Exporters of Cyclanic, cyclenic or cycloterpenic (HS code 290611) should explore
world markets such as China (35.6%), USA (14.0%), Singapore, (6.9%), Germany
(4.9%), Thailand (3.9%), Indonesia (3.1%), Brazil (2.9%), Hong Kong (2.5%),
France (2.2%) and Japan (2.2%), as these are largest markets for these products.
f. Prime export destinations for other compounds (HS code 300390) are USA
(24.1%), Belgium (14.3%), Ireland (8.1%), Italy (5.0%), Spain (3.4%), Tunisia
(3.2%), China (3.1%), Netherlands (2.6%), Mexico (2.4%) and Japan, (2.4%) and
these destinations should be explored by Punjab drug & pharma exporters.
g. There is huge demand for Penicillin, Other organic compounds(HS code
294200)Erythromycin and its derivatives(HS code 294150) and their
derivatives (HS code 294110) within India which is the largest importer for
penicillin and second largest importer for erythromycin. Manufacturers of these
drugs should expand their production capabilities along with strengthening the
supply networks of raw materials needed for it. They should cater only high
priced segments of these drugs for exports.
h. Feedback of Punjab exporters indicates that there is a shortage of manpower for
the drug and pharma sector.Universities & colleges should be encouraged to
launch the courses aimed at promoting the research & development of this
sector.
6.4 Rubber & Rubber Articles: With large industrial base for bicycle industry, there is
naturally a demand for rubber base products used in the cycle industry. Following
factors should be considered in Punjab exports strategy for promotion of rubber &
rubber articles.
a. Rubber products falling under HS code 401150, 401199 and 401320 (items of a
kind used on bicycles) are witnessing an expansion in world import demand,
accordingly exporters of these products from Punjab should be encouraged to
tap respective segments of plastic products in international markets.
b. Average growth rate in exportsof plastics & articles thereof (HS code 302020)
has been higher than average export growth rate of Punjab.However, products
falling under chapter head rubber & articles thereof (HS codes 401150, 401320,
and 401199) has been low than that of Punjab’s average growth rate but their
share in India’s exports is growing. Our interaction with exporters indicated that
they are shifting some of their operations to other states due to availability of
low cost labour, raw material (iron & steel) and logistics costs. Policy makers of
Punjab need to address these issues and make efforts to retain bicycles industry
in Punjab.
c. As world demand for rubber &articles thereof is increasing, Punjab exporters
should be encouraged to tap growing world imports demand for these products.
d. India’s exports share in world imports demand of rubber & plastics has shown a
declining trend. Punjab exporters are having a revealed competitive advantage
for these products. Accordingly, issues related to greater market access for these
products should be taken up with central government so as enhance the
prospects of Punjab exports further.
e. Prime export destinations for exports of rubber & articles thereof and plastics &
articles thereof are USA, Germany, France, UK, Japan, Netherlands, Italy, Spain,
Australia, Brazil, Russia, South Africa, Mexico, Poland, China, Canada, Chile and
Columbia, etc. (Table 4.4) and exporters should strategize to find out suitable
segments to tap these markets for exports of rubber and plastics products and
articles thereof.
f. Punjab exporters of rubber & plastics have complained about the cheap Chinese
imports affecting their exports as well the prospects in domestic markets. As
rubber and plastics industry supports the growing needs of bicycles and other
industrial segments, their concerns for inflow of cheap Chinese products should
be accordingly addressed with.
g. For supplies of quality rubber and plastics material, there is a need for
technological up-gradation of existing industry. This will help in forward
integration for manufacture of finished products thereby increasing exports
prospects of higher priced-value added productsfurther.
h. Testing lab & inspection facilities for the exporters of rubber & plastics products
should be made available so as to cut down their costs & time related to
inspection from distant places.
6.5Engineering Products, Hand Tool & Auto Component Industry: Punjab is one amongst
the few states of India where there is large scale presence of successful MSMEs in
engineering, hand tool and auto component sector. With opening up of these sectors for
foreign investments, there exists a series of original equipment manufacturers in the
states like Maharashtra, Tamil Nadu and Gujarat having advantages of being close to
maritime ports, required raw material, low labour costs and directly linked to large
firms dealing in engineering and auto manufacturing sector. Punjab exporters of
engineering goods, hand tools and auto-component can strategize in following manner
to offset these disadvantages and can explore increased export prospects for
themselves.
a. Majority of engineering goods, hand tool and auto components items exported
from Punjab has witnessed a slower growth pattern than average growth rate of
Punjab exports for the period 2009-14. The only exception are treaded nuts (HS
code 731816) and other hand tools including glazier (HS code 820559) which
witnessed higher growth pattern. World import demand for majority of these
exportable has been expanding (Table 3.5) but India’ share in world imports for
majority of these tariff lines is declining. However, Punjab’s exports of
engineering goods, hand tool and auto component has indicated a revealed
competitive advantage for engineering, hand tool and auto component sector.
This helps us to conclude that there are market access issues for Indian (read
Punjab) exporters of engineering goods, hand tool and auto components. Policy
makers at central level should address the market access issues so as to promote
the exports of engineering, hand tool and auto-components.
b. Prime destinations for engineering, hand tools and auto components are USA,
Germany, Singapore, France, Japan, Canada, South Korea, Saudi Arabia, Mexico,
Thailand, Malaysia, Switzerland, Austria, Russia, Brazil, Norway, Netherlands,
China, Belgium, Czech Republic, Italy, Indonesia and Egypt (Table 4.4) and
exporters of Punjab should focus on these markets for increasing their export
prospects.
c. Majority of the exports firms in engineering, hand tool and auto components are
small size firms which do not have the capacity to cater to demand of large and
organized buyers of these goods. India is fast emerging as regional automobile
manufacturing hub. There is a significant domestic demand in addition to
growing world demand. State government should attract the foreign investments
and large scale manufacturers with modern technology so as to reap the scale
and scope of growing world demand and domestic sales.
d. Small sized manufacturers & exporters of engineering goods and auto
component informed that large portion of their sales cater to lower value
segments or is used for replacements. They do not have tie-up with large
automobile manufacturers thereby catering to scattered and fragmented low
value and replacement markets. State exporters need to scale-up their value
chain so as to cater to high value segments and to large companies for dedicated
export sales.
e. Export Inspection Agency should set-up a full fledged office for testing and
inspection of exportable cargo in cost effective manner and on real time basis for
the exporters of hand tool and auto components. Exporters of hand tools
informed that modern technical testing equipment can greatly improve their
product quality and competitiveness and same should be done for Punjab hand
tool exporters.
f. Engineering, hand tool and auto component manufacturers of Punjab are facing a
stiff competition from low cost Chinese products which are cost effective and
offer value for money to end-use customers. Engineering Export Promotion
Council (EEPC) should guideand facilitate Punjab exporters to forge
technological and commercial linkages with companies from countries such as
China, Taiwan, South Korea and Thailand. This will improve the production
capabilities of Indian manufactures and will enable them to explore greater
export prospects in newer markets, wider segments with improved technology
and at lower costs.
g. Dedicated training institutes for skill up-gradation of migrant manpower for
manufacturers of engineering goods, hand tools and auto-component should be
set-up by the state. Existing such institutes should be up-graded so as to provide
training to migrant manpower who works only for few months and left home
back. This will cut-down the costs of industry in training the migrant workforce
and will generate employment opportunities for those seeking to work in this
sector.
6.6Bicycles & Bicycle Components : In case of Bicycles and Bicycles components export
(ITC Chapter 87)Punjab has contribute more than 50% share in India’s total exports as
Punjab is an established centre for the manufacture of bicycles& components thereof. It
has large number of small and few large manufacturers of bicycles. There are large
number of small bicycle components manufacturers who occasionally exports as well.
India is the world’s largest manufacturer of bicycles after China and does not figure
even amongst the top ten exporters. Following strategies can be used by Punjab
exporters for promotion of bicycles exports in international markets.
a. HS codes 870880 (Suspension shock-absorbers), 871494 (Brakes, including
coaster) and 871496 (Pedals and crank-gear) are found competitive for exports
through RCA analysis (Table 3.8) and also have expanding world import
demand. Exporters of Punjab should consolidate their position in these segments
in international markets.
b. Suspension shock-absorbers (HS code870880) have rising share in exports from
Punjab as well as from India, coupled with increasing world import demand. This
segments is categorised as Priority 1 exports from Punjab and offer great trading
opportunities for Punjab bicycle exporters. For HS codes 871494 (brakes
including coaster) and 871496 (pedals and crank gear), India’s share in world
market is declining, however that of Punjab is rising.These are categorised as
Priority 2 exports for Punjab exporters.
c. World import demand is rising for sub-headings (HS code) such as 8708809
(Suspension shock-absorbers), 871200 (Bicycles and other cycles),
871491(Frames and forks), 871494 (Brakes, including coaster) and
871496(Pedals and crank-gear) and declining for sub-headings such as 870190
(Bicycles parts-other), 870899 (Other parts and accessories) and 871499 (other
parts). Exporters are advised to consolidate their operations in growing
segments to further their export prospects.
d. Bicycle exportsfrom Punjab has rising share in India’s exports in sub-heading
870190 (other), 870880 (suspension shock absorbers), 871200 (Bicycles and
other cycles), 871294 (Brakes, including coaster) and 871496 (Pedals and
crank-gear) indicating supply strengths of Punjab exporters and exhibit
declining share for sub-heading 870899 (other parts and accessories), 871491
(frames & forks) and 871499 (others). Punjab exporters should consolidate their
business operations in areas of their supply strengths for exports.
e. Key importers of exportable bicycles items from Punjab are USA, France,
Germany, Canada, UK, Belgium, Poland, Italy, Australia, Spain, Mexico, Russia,
China, Thailand, Japan, Switzerland, Portugal, Netherlands, Hong Kong, Brazil,
Singapore and Indonesia. Exporters of bicycles and part thereof are encouraged
to tap these markets more aggressively.
f. Exporters have complained about the inverted duty structure and cheap Chinese
imports affecting their industry. Duty imposed domestically is higher on
imported items coming from China through South East Asian countries with
which India has signed a Free Trade Agreement. Bicycle industry of Punjab not
only brings precious foreign exchange to the country but promotes great
employment opportunities. Industry should be protected from such dangers of
cheap outside imports resulting due to inverted duty structure or cheap Chinese
imports routing through other countries. For direct cheap Chinese imports, issue
related to dumping by Chinese exporters should be probed and if found on merit,
anti-dumping duty should be imposed by central government.
APPENDIX 2.1: MACRO SOCIO-ECONOMIC INDICATORS OF PUNJAB VIS A VIS TOP 20 STATES OF
INDIA
S. No. Indicator Rank
1 Total population (in thousand-2011) 15
2 Geographical Area (In thousand Sq. Kms) 18
3 Density of Population( Per Sq. Km)-2011 6
4 Percentage to urban population to total population-2011 6
5 Decadal Growth rate in population in India-2011 15
6 Sex ratio-2011 18
7 Literacy rate(Total)-2011 8
8 Literacy rate(Female)-2011 5
9 Intensity of cropping 1
10 Percentage of net irrigated area to net area sown 1
11 Percentage of Gross irrigated area to Gross area sown 1 12 Average Yield of Food Grains (Kg. / Hect.) 1
13 Average Yield of Food Rice (Kg. /Hect.) 1
14 Average Yield of Food Wheat (Kg. /Hect.) 1
15 Percentage contribution of rice to central pool 1
16 Percentage contribution of Wheat to central pool 1
17 Consumption of Fertilizers Per Hectare (Kg.) 19
18 Percentage of Area Under forest to Total reporting area 19
19 No. of Primary Schools Per Lakh Population 14
20 No. of Middal Schools Per Lakh Population 17 21 Pupil- Teacher Ratio (Primary School) 12
22 Pupil- Teacher Ratio (Middle School) 2
23 Dropout Rate (I-V) 1
24 Dropout Rate (I-VIII) 1
25 Life Expectancy (Female) 3
26 Life Expectancy (Male) 3
27 Infant Mortality Rate 14
28 Birth Rate-2011 17
29 Death Rate-2011 9
30 Per Capita Net State Domestic Product at Current Prices 2013-14 6
31 Per Capita Net State Domestic Product at (Rs) Constant Prices-2013-14 8 32 Percentage of population below poverty line 4
33 Percentage of Electrified Villages to Total Inhabited villages 1
34 Per Capita of consumption of electricity (KWH) (Utility) 1
35 No. of Registered Motor Vehicles Per Lakh of Population 4 36 No. of Post Offices Per lakh of population 7
37 Credit -Deposit amount Ratio-2012 6
38 No. of scheduled commercial banks Per Lakh of population -2012 2
39 Human Development Index 2012-13 3
Source: Statistical Atlas of Punjab
Appendix- 2.2 ANNUAL SURVEY OF INDUSTRIES ( FACTORY SECTOR)
(Value in ` Ten Million, others in number)
Year Number of
Fixed Working
Product
ive
Invest
ed
Number
of
Total Persons
Wages to
Total
Factori
es
Capital
Capital
Capital Capital
Worker
s
Engaged Workers
Emoluments
2007-08
146385 845132
316953
1162085
1280126
8198110
10452535 51030 105443
2008-09
155321 1055966
311233
1367199
1535178
8776745
11327485 59772 129441
2009-10
158877 1352184
387745
1739928
1933054
9157802
11792055 68941 147007
2010-11
211660 1607007
620363
2227369
2393580
9901970
12694853 85646 183296
2011-12
217554 1949551
588794
2538345
2840095
10438365
13429956 99856 214733
Table 2.3 : ANNUAL SURVEY OF INDUSTRIES ( FACTORY SECTOR)
(Value in ` Ten Million,
others in number)
Year
Fuel
s
Cons
ume
d
Materi
als
Consu
med
Total
Inputs
Prod
ucts
and
By-
prod
ucts
Tota
l
Outp
ut
Net
Value
Adde
d
Rent
Paid
For
Fixed
Asset
s
Inte
rest
Pai
d
Gross
Fixed
Capita
l
Forma
tion
Addition in Stock of
Mate
rials,
Fuels
Semi
Finis
hed
Finis
hed
Goo
ds
Total
200
8-09
1521
62
20659
82
266148
6
2863
148
3272
798
5277
66
9758 686
80
22594
7
1974
7
9094 6798 3563
8
200
9-10
1616
00
24090
96
303585
3
3306
142
3733
036
5921
14
1200
5
733
18
26830
1
5323
9
1902
2
2128
3
9354
4
201
0-11
1954
24
30204
41
385108
4
4083
718
4676
217
7045
76
1349
3
880
21
28365
5
7742
6
2707
8
5774
5
1622
49
201
1-12
2424
38
37419
19
479866
6
5032
090
5776
024
8367
03
1619
5
120
656
34382
4
6342 1745
5
3941
1
6320
8
TABLE 2.3: MILL PRODUCTION OF COTTON YARN
(Mn. Kg.)
State/Union Territory
2010-11 2011-12 2012-13 (P)*
State
Andhra Pradesh 194 257 295
Arunachal Pradesh - - Assam - -
Bihar - -
Chhattisgarh - -
Goa - -
Gujarat 164 159 187 Haryana 119 155 163
Himachal Pradesh 79 55 64 Jammu & Kashmir 9 7 8
Jharkhand 1 1 1
Karnataka 43 35 35 Kerala 28 24 23
Madhya Pradesh 205 207 264 Maharashtra 270 257 298
Manipur - - - Meghalaya - - -
Mizoram - - -
Nagaland - - - Orissa 2 1 2
Punjab 497 480 575 Rajasthan 116 114 134
Sikkim - - - Tamil Nadu 1545 1216 1341
Tripura - - -
Uttarakhand 35 34 40 Uttar Pradesh 41 36 40
West Bengal 17 10 8 Union Territory:
A & N. Island - - -
Chandigarh - - -
Dadra & N Haveli 76 75 85 Daman & Diu 1 0 0
Delhi - - - Lakshadweep - - -
Puducherry 4 3 4 TOTAL 3446 3126 3567
Source: Office of the Textile Commissioner, Ministry of Textiles
Table 2.4 : STATEWISE PRODUCTION OF COTTON CLOTH (MILL CLOTH)
(in 000 Sq.Mtr.)
State/ Union Territory
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Himachal Pradesh .. 47762 45331 52130 82736 84732
Gujarat 415950 409791 482361 513394 505573 472329
Karnataka 3670 2328 2161 2235 1388 2176 Kerala Nil Nil Nil Nil Nil Nil
Madhya Pradesh 55400 69355 102950 110356 108821 119231 Maharashtra 173740 139247 152005 160998 172487 205497
Punjab 160470 169107 167576 178498 189139 126980 Rajasthan 58230 48014 49868 61200 52753 45309
Tamil Nadu 108050 91574 102023 107554 80568 75271
Uttar Pradesh 12190 4281 629 197 2853 5050 D &N Haveli Nil 272957 357823 414772 527135 878104
Puduchery 10510 5120 2420 2649 618 1580 Others 250370 Nil Nil Nil Nil Nil
Total 1248580 1259536 1465147
1603983 1724071
2016259
Source: Office of the Textile Commissioner, Ministry of Textiles Note: 1. Statewise break up for decentralised sector is not available 2. All India figures are in million sq.metres and statewise figures are in '000 sq.meters. 3. Production of mill sector is exclusiive of production of weaving units. 4. Production of decentralised sector is inclusiive of production of weaving units.
Table 4.1: Expansion In World Demand ( Value & Quantity Wise For Top 80% Exports
Of Punjab)
Product Code
(6 Digit)
Product Description Value wise CAGR of World Demand (2009-2013)
Quantity wise CAGR of World Import Demand (2009-13)
100630 Semi-milled or wholly milled rice, 0.030 0.3449
220710 Undenatured ethyl alcohol 0.116 0.0605
230400 Oil-cake and other solid residues, 0.091 0.0066
290611 Cyclanic, cyclenic or cycloterpenic 0.246 0.0879
294110 Penicillins and their derivatives w 0.044 0.051
294150 Erythromycin and its derivatives; s -0.068 0.0026
294190 Other 0.005 0.0514
294200 Other organic compounds. 0.098 0.0473
300390 Other -0.140 0.033
392020 Of polymers of propylene 0.077 0.118
401150 Of a kind used on bicycles 0.090 0.027
401199 Other 0.228 0.0583
401320 Of a kind used on bicycles 0.073 0.0314
520299 Other 0.199 0.801
520511 Single yarn, of uncombed fibres :-- 0.048 -0.002
520512 Single yarn, of uncombed fibres :-- 0.276 0.158
520513 Single yarn, of uncombed fibres :-- 0.210 0.101
520514 Single yarn, of uncombed fibres :-- 0.576 0.346
520521 Single yarn, of combed fibres :-- M -0.196 -0.137
520523 Single yarn, of combed fibres :-- M 0.125 0.112
520524 Single yarn, of combed fibres :-- M 0.165 0.09
520532 Multiple (folded%) or cabled yarn, o 0.061 -0.009
520544 Multiple (folded%) or cabled yarn, o -0.020 0.142
520932 Dyed :-- 3-thread or 4-thread twill 0.026 0.135
550130 Acrylic or modacrylic 0.033 -0.038
550320 Of polyesters 0.129 0.046
550330 Acrylic or modacrylic 0.149 0.042
550932 Containing 85 % or more by weight o -0.047 -0.084
550953 Other yarn, of polyester staple fib 0.153 0.061
610323 Suits :-- Of synthetic fibres 0.059 0.015
610520 Of man-made fibres 0.154 0.076
610590 Of other textile materials 0.098 0.098
610910 Of cotton 0.020 -0.012
610990 Of other textile materials 0.152 0.106
611020 Of cotton 0.001 -0.023
611030 Of man-made fibres 0.080 0.042
611120 Of cotton 0.032 0.117
621490 Of other textile materials 0.064 0.019
630190 Other blankets and travelling rugs 0.109 0.137
630260 Toilet linen and kitchen linen, of 0.054 0.084
630299 Other :-- Of other textile material 0.033 0.026
630492 Not knitted or crocheted, 0.006 0.001
730791 Other :-- Flanges 0.088 0.115
730840 Equipment for scaffolding, shutteri 0.066 0.196
730890 Other 0.070 0.278
731815 Threaded articles :-- Other screws 0.118 0.173
731816 Threaded articles :-- Nuts 0.151 0.279
731819 Threaded articles :-- Other 0.109 0.153
731822 Non-threaded articles :-- Other 0.127 0.2
732690 Other 0.105 0.299
820320 Pliers (including cutting pliers%), 0.095 0.021
820411 Hand-operated spanners and wrenches 0.114 0.205
820559 Other hand tools (including glazier 0.057 0.041
820570 Vices, clamps and the like 0.141 0.111
840890 Other engines 0.136 -0.34
847290 Other 0.120 -0.136
850421 Liquid dielectric transformers :-- 0.037 0.006
870190 Other 0.103 -0.171
870880 Suspension shock-absorbers 0.180 0.158
870899 Other parts and accessories :-- Other 0.097 0.105
871200 Bicycles and other cycles 0.063 -0.017
871491 Other :-- Frames and forks, and par 0.094 0.073
871494 Other :-- Brakes, including coaster 0.116 0.048
871496 Pedals and crank-gear, an 0.113 0.081
871499 Other 0.081 0.116
950699 Other 0.049 -0.072
APPENDICES 4.2: F.O.B PRICE OF TOP PUNJAB'S EXPORTS (USD/ UNIT) Product Code (6 Digit)
Product Description Unit F.O.B Price of Top Punjab's Exports (USD/ Unit)
2009 2010 2011 2012 2013
100630 Semi-milled or wholly milled rice,
Kg 1.1190 0.9168 0.8370 0.6120 0.7674
220710 Undenatured ethyl alcohol Litre 0.8069 0.7138 0.8497 0.8576 0.7823
230400 Oil-cake and other solid residues,
Kg 0.3997 0.3932 0.4022 0.4764 0.5507
290611 Cyclanic, cyclenic or cycloterpenic
Kg 8.1819 N.Q 29.4555 33.6836 20.5607
294110 Penicillins and their derivatives w
Kg 40.2679 34.1956 3.1308 33.3730 34.3896
294150 Erythromycin and its derivatives; s
Kg 102.8849 189.7748 137.6024 129.4733 126.0738
294190 Other Kg 93.7635 N.Q 86.9525 111.9391 125.5213
294200 Other organic compounds. Kg 26.1581 N.Q 48.8321 48.1682 39.9056
300390 Other Kg 13.6671 N.Q 20.2394 29.5220 21.4457
392020 Of polymers of propylene Kg 2.2781 3.1809 2.7476 2.4068 2.4362
401150 Of a kind used on bicycles Item 2.0755 4.6715 2.6429 2.6360 2.5713
401199 Other Item 103.7958 81.3189 176.1124 186.1364 182.4736
401320 Of a kind used on bicycles Item 0.7177 1.0674 1.1090 1.1284 1.1326
520299 Other Kg 1.0355 1.0232 1.5016 1.2915 1.3212
520511 Single yarn, of uncombed fibres :--
Kg 2.4480 2.1109 3.8458 3.1303 3.2122
520512 Single yarn, of uncombed fibres :--
Kg 2.0899 2.2807 3.1943 2.7064 2.7616
520513 Single yarn, of uncombed fibres :--
Kg 2.2738 2.3321 3.7103 3.1650 3.3031
520514 Single yarn, of uncombed fibres :--
Kg 2.9308 2.6732 3.7750 3.2614 3.4037
520521 Single yarn, of combed fibres :-- M
Kg 2.5202 2.5859 4.1978 3.5185 3.6439
520523 Single yarn, of combed fibres :-- M
Kg 2.4017 3.0638 4.1288 3.4097 3.5601
520524 Single yarn, of combed fibres :-- M
Kg 2.8731 3.3460 4.5450 3.7027 3.8398
520532 Multiple (folded%) or cabled yarn, o
Kg 2.2401 2.7452 3.9184 3.2505 3.4265
520544 Multiple (folded%) or cabled
yarn, o Kg 3.3761 5.7714 5.2415 4.2161 4.3934
520932 Dyed :-- 3-thread or 4-thread twill
Kg 11.3753 10.9642 10.0288 13.0491 12.5150
550130 Acrylic or modacrylic Kg 1.8711 N.Q 2.8839 2.2498 2.3276
550320 Of polyesters Kg 1.1186 1.2101 1.8848 1.5864 1.5497
550330 Acrylic or modacrylic Kg 2.1574 2.0480 2.9114 2.6975 2.5691
550932 Containing 85 % or more by weight o
Kg 3.0623 4.5751 4.4745 4.4013 4.7591
550953 Other yarn, of polyester staple fib
Kg 2.1008 2.2677 3.6709 2.9952 3.0661
610323 Suits :-- Of synthetic fibres Item 6.4998 4.8334 6.6785 5.7565 5.2013
610520 Of man-made fibres Item 6.9887 8.7211 8.2735 6.7043 6.9168
610590 Of other textile materials Item 5.8134 N.Q 7.2748 6.3080 6.0949
610910 Of cotton Item 2.8925 5.0137 3.5419 3.1119 2.9624
610990 Of other textile materials Item 4.4467 7.4603 4.8455 4.5505 4.0472
611020 Of cotton Item 4.0957 11.2660 6.9951 6.9633 6.5376
611030 Of man-made fibres Item 5.6645 12.5632 9.2934 7.2681 6.8385
611120 Of cotton Kg 5.4461 30.8526 6.5652 6.8277 4.3083
621490 Of other textile materials Item 2.1821 2.9134 2.7364 2.7596 3.0426
630190 Other blankets and travelling rugs
Kg 8.9732 9.4035 8.6257 9.0617 10.1828
630260 Toilet linen and kitchen linen, of
Kg 6.5477 8.8436 3.7500 4.0359 4.8532
630299 Other :-- Of other textile material
Kg 4.6896 15.8969 5.8707 5.5333 4.9873
630492 Not knitted or crocheted, Kg 14.2424 14.4439 15.4828 18.4263 20.5146
730791 Other :-- Flanges Kg 1.9375 5.3415 2.0257 2.0040 2.1045
730840 Equipment for scaffolding, shutteri
Kg 1.1545 2.6691 1.3660 1.4590 1.4795
730890 Other Kg 1.9540 2.8228 1.6837 1.8869 1.8967
731815 Threaded articles :-- Other screws
Kg 1.0523 6.5574 0.5780 2.0990 2.2778
731816 Threaded articles :-- Nuts Kg 1.6595 8.2985 2.4690 3.6246 5.6640
731819 Threaded articles :-- Other Kg 1.3928 6.4762 1.1697 2.1054 2.1311
731822 Non-threaded articles :-- Other
Kg 2.5275 N.Q 2.8716 2.3280 1.9737
732690 Other Kg 2.9318 5.4432 2.9771 3.4578 3.9206
820320 Pliers (including cutting pliers%),
Kg 3.3645 23.1655 2.2459 3.1925 3.3591
820411 Hand-operated spanners and wrenches
Kg 2.3546 11.0928 2.5854 3.0946 3.4666
820559 Other hand tools (including glazier
Kg 4.1935 11.3683 3.7883 4.7218 4.6864
820570 Vices, clamps and the like Kg 2.2002 6.9665 2.6139 3.8009 3.4434
840890 Other engines Item 1167.1639 N.Q 597.7115 1414.2905 1221.1096
847290 Other Item 7.3157 N.Q 3.3311 3.0122 2.1731
850421 Liquid dielectric transformers :--
Item 71.9417 7205.4532 2847.6497 1096.8418 148.5900
870190 Other Item 10020.2187 27351.7461 10445.6267 9884.5186 11893.2057
870880 Suspension shock-absorbers Kg 4.6733 8.9702 4.8183 4.7934 5.0646
870899 Other parts and accessories :-- Oth
Kg 4.4428 8.6411 0.1775 5.7048 6.0741
871200 Bicycles and other cycles (includin
Item 34.5165 228.2567 43.4870 43.3990 39.8645
871491 Other :-- Frames and forks, Kg N.Q 56.0404 61.6959 66.5026 76.1562
and par
871494 Other :-- Brakes, including coaster
Kg 1.0304 18.3988 1.7649 1.6286 1.7931
871496 Pedals and crank-gear, an Kg 0.7355 N.Q 0.7432 0.7605 1.1416
871499 Other Kg 0.9567 N.Q 1.2690 1.5075 1.8644
950699 Other Item 3.8294 N.Q 4.7466 4.5626 4.6114
APPENDICES 4.3 C.I.F IMPORT PRICE OF TOP IMPORTING COUNTRIES IN 2013
Product Code (6 Digit)
Unit /
C.I.F Pric
e
Top 10 Importing Countries
100630 Kg Saudi Arabia
China United States
South Africa
Malaysia Japan Benin France Yemen Cote d'Ivoire
C.I.F 1.09 0.49 1.25 0.53 0.57 0.71 0.54 1.17 0.83 0.58
220710 Liter
United States
Germany
Netherlands
Japan United Kingdo
m
Sweden Italy Jamaica France Belgium
C.I.F 0.74 0.98 0.91 0.74 0.88 0.98 0.89 0.98 0.82 0.89
230400 Kg Netherlands
Indonesia
Vietnam France Germany
Thailand Japan Italy Poland South Korea
C.I.F 0.54 0.55 0.56 0.54 0.56 0.55 0.59 0.54 0.56 0.54
290611 Kg China United States
Singapore
Germany
Thailand Indonesia Brazil Hong Kong
France Japan
C.I.F 19.96 17.47 22.52 20.76 25.09 23.17 21.41 24.52 23.47 29.69
294110 Kg India Italy Austria Belgium United States
Netherlands
Thailand Portugal Spain France
C.I.F 22.57 172.06 37.24 164.77 81.20 29.72 29.10 473.05 44.06 47.44
294150 Kg Japan India Italy United Kingdo
m
United States
Singapore Australia Mexico Belgium Croatia
C.I.F 667.98 70.72 851.50 351.23 162.02 626.11 557.71 139.50 1368.18 31.75
294190 Kg Italy Germany
France United States
Switzerland
Belgium China India Japan Netherlands
C.I.F 344.41 964.15 694.49 133.89 831.57 568.50 989.20 85.70 404.11 271.48
294200 Kg India Jordan United States
Saudi Arabia
Japan Germany Vietnam Italy France Netherlands
C.I.F 25.98 81.92 7.90 2.61 889.03 8.15 N.Q 22.07 15.17 2.60
300390 Kg United States
Belgium
Ireland Italy Spain Tunisia China Netherlands
Mexico Japan
C.I.F 89.48 311.82 172.64 219.59 23.05 51.78 342.85 26.33 24.36 78.91
392020 Kg Germany
United States
China Belgium France United Kingdom
Italy Poland Mexico Netherlands
C.I.F 4.07 3.80 4.96 3.74 3.83 3.54 3.02 3.25 3.07 3.14
401150 Item
Germany
United States
Italy Netherlands
France Japan Brazil Mexico United Kingdom
Spain
C.I.F 4.86 7.82 3.64 6.22 5.54 4.86 2.21 2.25 15.69 4.44
401199 Item
United States
Australia
Russian Federati
on
Canada Chile Indonesia Brazil South Africa
China Colombia
C.I.F 49.36 1243.01
389.22 239.39 976.54 N.Q 37.34 1660.68 1582.82 361.20
401320 Item
United States
Germany
Brazil France Mexico Japan Italy Netherlands
Spain Poland
C.I.F 1.45 1.25 0.85 1.36 0.81 1.25 1.13 1.41 1.52 1.10
520299 Kg China Germany
Italy Belgium France Hong Kong
Netherlands
Thailand Switzerland
United States
C.I.F 1.13 1.43 1.52 1.43 1.46 0.96 1.89 1.32 2.07 1.41
520511 Kg China Hong Kong
Dominican
Republic
Malaysia Egypt Turkey Germany El Salvador
Pakistan Sri Lanka
C.I.F 2.52 2.68 2.95 3.93 2.44 2.22 2.74 2.71 4.06 2.95
520512 Kg China Turkey Hong Kong
Mexico Russian Federati
on
South Korea
El Salvador
Guatemala
Japan Portugal
C.I.F 2.88 2.92 3.10 2.73 2.13 3.15 3.02 3.75 3.23 3.20
520513 Kg China El Salvad
or
South Korea
Turkey Hong Kong
Guatemala
Portugal Spain Peru Colombia
C.I.F 3.79 3.64 3.66 3.65 3.29 4.03 3.52 3.52 3.38 3.81
520514 Kg China Hong Kong
Russian Federati
on
Japan South Korea
Indonesia Portugal Turkey Sri Lanka Italy
C.I.F 3.42 3.41 2.61 3.77 4.66 5.52 4.13 4.66 3.79 4.46
520521 Kg Sri Lanka
Hong Kong
Malaysia Mauritius
Egypt China Israel Philippines
Vietnam Guatemala
C.I.F 4.32 6.71 3.98 5.29 3.94 3.78 3.02 3.94 4.32 4.52
520523 Kg China South Korea
Hong Kong
Portugal Guatemala
Italy Peru Vietnam Turkey Indonesia
C.I.F 3.67 4.07 3.99 3.96 4.52 4.73 3.63 4.10 3.81 3.98
520524 Kg China Hong Kong
South Korea
Turkey Portugal Japan Italy France Indonesia
Germany
C.I.F 3.88 4.07 4.47 4.38 4.40 5.16 5.12 7.11 3.36 4.90
520532 Kg Hong Kong
China Portugal Turkey South Korea
Germany Russian Federatio
n
Belgium Italy Spain
C.I.F 3.86 3.03 3.63 3.42 3.46 4.54 3.88 3.94 4.25 4.34
520544 Kg Hong Kong
Italy China Mauritius
Portugal Japan Turkey Croatia South Korea
France
C.I.F 4.84 8.00 4.09 4.17 5.43 5.27 5.97 0.04 4.80 7.95
520932 Kg Hong Kong
Mexico Indonesia
Tunisia Morocco Germany Sri Lanka China Vietnam Romania
C.I.F 6.36 12.64 9.62 14.19 9.42 11.06 12.64 10.46 12.64 14.03
550130 Kg China Turkey Indonesia
United States
Romania Italy Kenya Pakistan India Egypt
C.I.F 2.49 2.62 2.70 4.39 2.90 2.71 5.27 2.23 2.68 2.35
550320 Kg United States
Vietnam
Germany
China Indonesia
Turkey Russian Federatio
n
Italy Spain Mexico
C.I.F 1.67 1.80 1.77 1.85 1.62 1.70 1.62 1.81 1.82 1.90
550330 Kg China Turkey United States
India Indonesia
Spain Italy Pakistan Romania Nepal
C.I.F 3.49 2.73 4.44 2.62 2.76 4.44 4.41 2.48 2.97 1.53
550932 Kg South Korea
Hong Kong
France Russian Federati
on
Poland Argentina Ethiopia(excludes Eritrea)
Italy United States
Austria
C.I.F 3.67 4.67 8.17 4.06 5.66 5.93 2.14 6.97 5.56 9.89
550953 Kg South Korea
Turkey El Salvador
Portugal Colombia
Egypt, Arab Rep.
Japan China Spain United States
C.I.F 3.08 2.77 2.90 3.36 3.14 2.32 3.85 3.05 3.45 3.51
610323 Item
Japan Italy Israel Belgium Russian Federati
on
Spain Kuwait China Brazil Germany
C.I.F 6.90 5.24 3.61 5.54 14.56 2.39 17.90 8.32 6.77 6.90
610520 Item
United States
Japan Germany
Canada Australia
Hong Kong
Brazil France United Kingdom
Belgium
C.I.F 0.01 0.01 0.01 0.01 0.00 0.01 0.00 0.01 0.02 0.01
610590 Item
France Portugal
Singapore
United States
South Africa
Hong Kong
Malaysia China Germany Italy
C.I.F 20.10 11.04 5.89 10.89 2.87 18.28 6.32 108.69 11.04 19.58
610910 Item
United States
Germany
France Japan Spain Italy Netherlands
Belgium Hong Kong
Canada
C.I.F 1.81 5.06 3.48 5.06 2.92 3.71 3.78 2.90 3.97 2.87
610990 Item
Germany
United States
Japan France Spain Belgium Italy Netherlands
Hong Kong
Canada
C.I.F 6.92 2.41 6.92 6.27 4.45 6.30 6.39 6.21 3.97 4.48
611020 Item
United States
Germany
Hong Kong
Japan France Italy Spain Netherlands
Canada Belgium
C.I.F 3.86 10.28 6.03 10.28 8.89 9.86 6.94 9.83 6.05 9.53
611030 Item
United States
Japan Germany
France Hong Kong
Spain Italy Canada Belgium Russian Federati
on
C.I.F 4.78 10.55 10.55 7.98 5.79 7.01 8.61 6.87 8.12 8.44
611120 Kg United States
France Germany
Italy Hong Kong
Spain Japan Canada Saudi Arabia
Netherlands
C.I.F 20.61 25.18 24.35 24.36 20.84 14.98 31.09 29.00 4.42 17.45
621490 Item
Germany
France Japan United States
Spain Italy United Kingdom
Belgium Netherlands
Switzerland
C.I.F 4.34 4.71 4.34 2.84 3.87 3.62 12.45 4.14 3.99 4.34
630190 Kg Saudi Arabia
Algeria Jordan India Vietnam United States
Qatar Germany Yemen Netherlands
C.I.F 2.34 1.74 4.30 N.Q N.Q 6.45 3.74 6.94 1.75 6.51
630260 Kg United States
Japan Germany
France Canada Italy Russian Federatio
n
Australia Spain Netherlands
C.I.F 7.15 8.98 9.38 9.43 6.60 8.42 5.52 7.13 8.34 6.29
630299 Kg France Germany
Italy Panama United States
Russian Federatio
n
Singapore Algeria Spain Belgium
C.I.F 17.01 11.27 22.78 6.26 16.65 5.20 9.90 1.65 11.82 11.48
630492 Kg United States
Germany
Japan France India Canada Italy Australia Netherlands
Sweden
C.I.F 10.90 12.82 14.74 11.56 14.72 13.69 11.49 9.20 7.41 14.54
730791 Kg United States
South Korea
Germany
Canada Saudi Arabia
Japan Singapore Mexico Thailand Malaysia
C.I.F 2.52 2.14 2.71 3.30 4.56 2.06 3.39 4.16 4.10 2.30
730840 Kg Singapore
Germany
United States
Saudi Arabia
Switzerland
France Japan Canada Austria Russian Federati
on
C.I.F 3.32 2.18 2.29 2.13 3.26 2.52 2.01 2.42 2.43 2.39
730890 Kg Germany
Australia
United States
South Korea
Japan Saudi Arabia
France Norway Russian Federati
on
Switzerland
C.I.F 2.79 4.22 3.03 2.15 1.95 2.11 2.20 3.72 3.23 3.21
731815 Kg United States
Germany
China Mexico Canada France Thailand Brazil Netherlands
Japan
C.I.F 2.95 3.98 8.47 0.77 0.73 4.72 5.95 5.45 3.89 2.86
731816 Kg United States
China Germany
Mexico Canada Japan France Thailand Brazil Netherlands
C.I.F 3.49 9.87 4.30 0.23 1.00 5.53 6.03 7.27 6.19 3.08
731819 Kg Germany
France Spain United States
Russian Federati
Belgium Italy China Netherlands
Czech Republic
on
C.I.F 8.41 5.56 7.77 8.21 2.72 3.90 5.63 21.71 4.81 6.65
731822 Kg United States
China Mexico Germany
Thailand Canada Vietnam Indonesia
Saudi Arabia
Brazil
C.I.F 4.07 22.33 2.37 8.06 14.29 2.77 N.Q 13.87 10.50 7.80
732690 Kg United States
Germany
Mexico Thailand South Korea
France China Japan Russian Federati
on
Egypt
C.I.F 4.85 4.17 0.21 10.64 4.74 4.63 12.53 3.28 8.02 12.70
820320 Kg United States
Germany
France Canada Netherlands
Belgium Mexico Russian Federati
on
Austria Italy
C.I.F 19.05 17.37 17.14 19.05 17.50 17.46 19.15 9.38 27.74 16.98
820411 Kg United States
Germany
Russian Federati
on
Canada France China Japan Mexico Netherlands
Italy
C.I.F 12.56 8.66 4.93 12.56 12.26 9.77 10.08 5.70 13.78 7.87
820559 Kg United States
Germany
France Canada Russian Federati
on
Singapore Austria Switzerland
Netherlands
Denmark
C.I.F N.Q 10.44 12.08 N.Q 7.04 N.Q 18.99 35.56 9.47 28.33
820570 Kg United States
Russian
Federation
Canada Thailand Germany
Singapore Australia Japan France Belgium
C.I.F N.Q 8.03 N.Q 24.40 6.79 N.Q 5.36 5.73 5.22 5.89
840890 Item
United States
China Germany
France South Korea
Italy Brazil Belgium Canada Turkey
C.I.F 4443.50
8769.83
N.Q 5273.55 N.Q 5014.77 6930.84 12982.11
8548.01 5407.70
847290 Item
United States
Hong Kong
Japan Russian Federati
on
Singapore
Germany China France India Turkey
C.I.F 16.66 32.83 N.Q 19.73 27.07 N.Q 336.16 394.12 131.05 5258.40
850421 Item
United States
Russian
Federation
Algeria Germany
United Kingdo
m
France Saudi Arabia
Canada Japan Mexico
C.I.F 1242.72
3463.74
946.38 6389.75 1668.44 347.72 6389.21 1528.80 6389.82 0.29
870190 Item
United States
France Canada Germany
United Kingdo
m
Belgium Poland Italy Australia Spain
C.I.F 24968.60
43642.55
39016.77
31893.93
43786.68
27648.57 42122.59 29441.85
34473.91
38177.10
870880 Kg United States
Canada Germany
Mexico Russian Federati
on
China United Kingdom
Belgium Poland France
C.I.F 9.67 9.83 6.97 9.83 7.86 7.84 7.44 7.24 7.31 6.32
870899 Kg United States
Spain Germany
Mexico France Canada United Kingdom
China Italy Thailand
C.I.F 12.30 5.20 9.04 14.53 9.07 13.66 8.91 13.82 10.53 9.70
871200 Item
United States
Japan Germany
Netherlands
France Belgium Australia Spain Canada Switzerland
C.I.F 93.55 103.54 N.Q 226.69 155.77 272.23 168.30 231.92 169.12 551.87
871491 Kg Germany
United States
Hong Kong
Netherlands
Italy France Japan Spain Portugal Russian Federati
on
C.I.F 25.60 43.51 19.05 27.67 9.41 20.94 21.57 12.66 9.42 3.42
871494 Kg Singapore
Germany
China Netherlands
United States
Italy Brazil France Poland Japan
C.I.F N.Q 28.26 25.50 27.69 40.58 12.59 3.73 19.59 13.40 15.93
871496 Kg Singapore
Germany
United States
Netherlands
China Italy Spain France Brazil Japan
C.I.F N.Q 23.32 42.42 14.46 10.68 10.79 15.93 13.82 3.26 14.78
871499 Kg Germany
Netherlands
Singapore
China France United States
Indonesia Italy Spain Belgium
C.I.F 22.10 12.89 N.Q 16.65 24.20 28.67 3.45 16.53 13.27 25.71
950699 Item
United States
Canada France Germany
Japan Belgium Australia Netherlands
Russian Federati
on
Switzerland
C.I.F N.Q N.Q N.Q N.Q N.Q N.Q N.Q N.Q 0.45 N.Q
APPENDICES: 5.1- TIME AND ASSOCIATED COSTS IN STARTING A NEW BUSINESS IN PUNJAB
No. Procedure Time to Complete
Associated Costs
1 Obtain director identification number (DIN) online from the Ministry of Corporate Affairs portal (National)
1 day INR 100
2 Obtain digital signature certificate online from private agency authorized by the Ministry of Corporate Affairs (National)
3 days INR 1,500
3 Reserve the company name online with the Registrar of Companies (ROC) (National)
2 days INR 500
4 Stamp the company documents at the State Treasury (State)
1 day INR 1,515 (INR 500 for MOA + INR 1,000 for AOA for a share capital above 100,000 + INR 15 for stamp paper for declaration in Form 1)
5 Get the Certificate of Incorporation from the Registrar of Companies, Ministry of Corporate Affairs (National)
5 days INR 13,700 (filing fee on MOA: INR 12,400 + filing fee on AOA: INR 200 + filing fee on Form 1: INR 200 + filing fee on Form 18: INR 200 + filing fee on Form 32: INR 200 + POA from 5 subscribers: INR 500)
6 Make a seal (Private) 1 day INR 350 (costs starts at INR 350 for seal, depending on number of words to be engraved)
7 Obtain a Permanent Account Number (PAN) from an authorized franchise or agent appointed by the National Securities Depository Ltd. (NSDL) or the Unit Trust of India (UTI) Investors Services Ltd., as outsourced by the Income Tax Department (National)
15 days INR 67 (INR 60 application fee + 12.36% service tax + INR 5 for application form, if not downloaded)
8 Obtain a Tax Account Number (TAN) for income taxes deducted at the source from an authorized franchise or agent appointed by the National Securities Depository Ltd. (NSDL), as outsourced by the Income Tax
14 days INR 57 (INR 50 application fee + 12.36% service tax)
Department (National)
9 Register with the Office of Inspector, Shops, and Establishment Act (State/Municipal)
15 days INR 100
10 Register for Value-Added Tax (VAT) at the Commercial Tax Office (State)
15 days INR 2,175 (INR 2000 registration fee + INR 25 Court fee + INR 150 stamp paper)
11 Register with Employees' Provident Fund Organization (National)
10 days No cost
12 Register for medical insurance at the regional office of the Employees State Insurance Corporation (National)
APPENDICES: 5.2 TIME AS ASSOCIATED COSTS FOR DEALING WITH CONSTRUCTION PERMITS
IN PUNJAB
No. Procedure Time to Complete
Associated Costs
1 Obtain land-use certificate from the Chief Town Planners Office in Ludhiana (Municipal)
15 days INR 20,165 (fees for the certificate of INR 1,815 per 100 square yards)
2 Obtain building-plan approval from Ludhiana Municipal Corporation (Municipal)
40 days INR 70,000 (INR 5 per square foot)
3 Receive inspection by the Ludhiana Municipal Corporation during construction of foundation (Municipal)
1 day No cost
4 Receive inspection by the Ludhiana Municipal Corporation during the construction of plinth (Municipal)
1 day No cost
5 Apply for a "no-objection certificate" (NOC) from the Fire Department (Municipal)
1 day No cost
6 Receive a "no-objection certificate" (NOC) from the Fire department (with inspection) (Municipal)
3 days No cost
7 File a completion certificate and apply for an occupancy permit at Ludhiana Municipal Corporation (Municipal)
1 day No cost
8 Receive Inspection from the Ludhiana Municipal Corporation (Municipal)
1 day No cost
9 Obtain occupancy permit from the Ludhiana Municipal Corporation (Municipal)
30 days No cost
10 Apply for permanent electricity connection at Punjab State Electricity Board (PSEB) (State)
1 day INR 50 (application form INR 50)
* 11
Apply for permanent water and sewerage connections at the Punjab Water Supply and Sewerage Board (PWSSB) (State)
1 day INR 1,000 (connection fee of INR 500 for water + INR 500 for sewerage)
* 12
Apply for phone connection at Bharat Sanchar Nigam Limited (BSNL) (National)
1 day INR 500 (flat installation charge)
* 13
Obtain a test report by an electricity contractor listed with PSEB (State)
1 day No cost
* 14
Receive an on-site inspection by water and sewerage provider (PWSSB) (State)
1 day No cost
* 15
Obtain permanent electricity connection from PSEB (State)
45 days INR 168,500 (connection fee of INR 1,000 per kW + metering equipment INR 28,500)
* 16
Obtain permanent water and sewerage connections from PWSSB (State)
30 days No cost
* 17
Obtain phone connection (with inspection) from the BSNL (National)
5 days No cost
* Takes place simultaneously with another procedure.
APPENDICES 5.3: TIME AND ASSOCIATED COSTS FOR REGISTERING A PROPERTY IN PUNJAB
No. Procedure Time to Complete
Associated Costs
1 Check for encumbrances at the office of the Subregistrar of Assurances (State)
5 days INR 7,000 (including lawyer fees)
2 The final sale deed is prepared by the buyer or his lawyer (Private)
1 day INR 10,500 (lawyer fees)
3 Stamp, execute, and register the final sale deed at the Subregistrar’s Office (State)
1 day INR 197,990 (INR 10,000 for registration fees + 9% of the property value for stamp duty, which includes 3% of the property value for development charges)
4 Apply to the Circle Revenue Office for mutation of the property title (State)
60 days INR 6,500 (including lawyer fees)
APPENDICES 5.4: COST TO EXPORTS AND IMPORTS FROM LUDHIANA (PUNJAB)
Indicator Ludhiana India South Asia OECD
Documents to export (number) 8 8 4
Time to export (days) 21.0 33.4 10.5 Cost to export (US$ per container) 1,105.3 1,922.9 1,080.3
Cost to export (deflated US$ per container) .. 1,922.9 1,080.3 Documents to import (number) 9 9 4
Time to import (days) 25.0 34.4 9.6
Cost to import (US$ per container) 1,154.3 2,117.8 1,100.4
Cost to import (deflated US$ per container) .. 2,117.8 1,100.4
APPENDIX 5.5: ROAD LENGTH IN RELATION TO AREA AND POPULATION IN PUNJAB (AS ON
31ST MARCH, 2011)
State Total
Road
Length
(In km.)
Area
(In Km)
Population*
(2011)
(In ' 000)
Road Length
(In Km)
Total
Length of
National
Highways
(In Km.)
National
Highways
(In km.)
Per
100
sq. km.
of
Area
Per one
Lakh of
Population
Per
100
sq.
km.
of
Area
Per one
Lakh of
Population
Punjab 84193 50362 27704 167.18 303.90 1557 3.09 5.62
India
(Excluding
JRY
Roads)
3790342 3287240 1210193 115.30 313.20 70934 2.16 5.86
India
(Including
JRY
Roads)
4690342 3287240 1210193 142.68 387.57 70934 2.16 5.86
Note: Population as per Census of India 2011
Source : Ministry of Road Transport and Highways, Govt. of India (ON291)
APPENDIX 5.6: FACILITIES ESTABLISHED BY AAI AT AIR CARGO TERMINAL
Amritsar
Intl Air Cargo Terminal all regulatory/facilitating agencies under one roof Yes
Exclusive storage processing & examination areas for import, export & TP Cargo Yes
Exclusive unaccompanied baggage unit -
ETV system having built in ULD weighing facility -
Cargo Apron for freighter Yes
X-ray screening Yes
Radioactive material shed
Hazardous Cargo shed Yes
Live Animal Shed
Cold Storage / Walk in Coolers Yes
State of Art Centre for Perishable Cargo Yes
Weigh Scale Yes
CCTV monitoring Yes
Restaurant/canteen
Post Office
Bank
Strong room for valuable cargo Yes
PA system with channel music
Vehicle Parking Yes
Photocopier
Bonded Trucking facilities
Exclusive Public waiting lounge Yes
Seissor Lift(for ULD movement)
Automated Storage & Retrieval System
Explosive Trace Detector (ETD)
APPENDIX 5.7 : LIST OF WAREHOUSES IN PUNJAB MAINTAINED BY CENTRAL WAREHOUSING
CORPORATION
Abohar-I Abohar-II Ajitwal Amritsar Amritsar ACC
Amritsar Bd Bhatinda Bhogpur Chanalon Fazilka
Garshankar Gurdaspur Hoshiarpur Ludhiana Mandi Gobindgarh
Mansa Moga-I Moga-II Mohali Muktsar
Nabha Nabha BD Pathankot BD Ropar Sirhind
Chandigarh
APPENDIX 5.8: LIST OF EXISTING TESTING & INSPECTION FACILITIES BY EIC IN PUNJAB
No Name and Contact Details Scope Of Approval
MILK PRODUCTS
1 M/s Chanakya Dairy Products Limited.
Skimmed Milk Powder (SMP) , Ghee,Additional Facilities:- Whole Milk Powder(WMP) and Paneer
2 M/s Crown Milk Specialities Pvt. Ltd.
SMP, Ghee, Acid and Rennet Casein, De-mineralized Whey Powder and Butter(Salted & White)
3 M/s Best Milk Products Pvt. Ltd.
Skimmed Milk Powder, Whole Milk Powder, White Butter , Dairy Whitener & Ghee.
4 M/s Punjab State Co-operative Milk producers'''''''' Federation Limited
UHT Products (Plain Milk: Toned Milk, Double Toned Milk, Fermented Milk Products: Sweetened flavoured Lassi, Namkeen Lassi, Sweetened flavoured milk : Rose Milk, Elachi Milk)
5 M/s Jagatjit Industries Ltd. Skimmed Milk Powder, Whole Milk Powder & Ghee
6 M/s Ludhiana District Co-Op. Milk Producers Union Ltd,
Skimmed Milk Powder(SMP), Whole Milk Powder(WMP) andGhee,
7 M/s Bhatinda District Co-Op Milk Producers Union Ltd,
Skimmed Milk Powder(SMP), Whole Milk Powder(WMP) andGhee,
8 M/s. Nestle India Ltd.
Skimmed Milk Powders(SMP), Whole Milk Powder (WMP) , Milk Mixes, Ghee, Condensed Milk(SCM) AMF(Anhydrous
Milk Fat), Follow up Formula- Complementary Food
9 M/S Milk Foods Ltd.
Ghee, Skimmed Milk Powder, Whole Milk Powder, Dairy Whitener, Casein, Demineralised Whey Powder, Lactose, Whey Protein Concentrate
10 M/s Milk Food Ltd. Skimmed Milk Powder Ghee, Dairy Whitener/Dairy Creamer
HONEY 1 Little Bee Impex
Honey (Establishment for all countries including EU)
2 M/s Kejriwall Bee Care India Pvt. Ltd.
Honey (Establishment for all countries including EU)
3 M/s Shakti Apifoods Private Limited
Honey (Establishment for all countries other than EU)
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