ImportsCrude petroleum is India's biggest import with $155bn spent on it in 2012. Imports of gold and silver amounted to $62bn and electronic goods and pearls and precious stones are also top import items for the country.India's top import source is China followed by the UAE, Switzerland and Saudi Arabia. The UK came in at 21st place in 2011-12 with India importing a total of $7.7bn. In the six months recorded so far for 2012-13, the UK has dropped a place and has a 1.4% share of the India's import sources.The table below shows India's imports and exports by country including the share. The downloadable spreadsheet also has data on the top import and export products for the country. What can you do with this data?

Production of cotton in IndiaIndia is the third largest producer of cotton and its derivatives in the world. The country is responsible for the origination and domestication of the cotton crop. India has the maximum area under cotton cultivation estimating up to around 9.50 million tons i.e. 21% share in the world. A number of varieties of cotton are cultivated in the country like Bengal Deshi, V-797, Jayadhar, etc and also the cotton fibers are graded into three major grades i.e. Short, Medium and Elongated. The northern areas in the country provide with mostly short and medium staple cotton, central areas provide with long and medium staple cotton and the southern areas largely with long staple cotton. The quantity of production of cottonseeds in India is around 5.68 million tons. The states in India producing cotton crop are Maharashtra Gujarat Andhra Pradesh Haryana Punjab Rajasthan Karnataka Tamil Nadu Madhya PradeshThe above-mentioned states cover around 95% area under cotton cultivation as well as output in India. Maharashtra followed by Andhra Prad3esh and Haryana are the largest cotton producing states of the country. Regarding the cottonseed oil, around 80% of the cottonseed produced in the country is crushed to obtain oil. The meal produced after the extraction of oil from the seeds sums up to around 2 million tons. Like the fluctuations in the world production of cottonseed, Indian production also fluctuates every year. Also, the productivity of cotton in India is quite low as compared to the productivity of the crop in the rest of the world. World average productivity of the crop is around 500 kg per hectare but Indian productivity just reaches 300 kg per hectare.

Indian cotton market

Cotton has been a traditional crop in India as it has been grown here since it has been domesticated. It constitutes to around 60% of the fiber consumed in the textile sector of the country. This sector is also very important for the country as it provides a large number of employment opportunities and also contributes significantly to the Gross Domestic product of the country. The country stands first among the countries having the maximum area under cultivation of cotton and place third in the list of cotton producing countries.India produces around 35 million tons of cottonseed in a year. Maharashtra is the leading cotton producing state in the country with a production of around 6 lakh tons. The cottonseed meal is produced in the country to the context of 2 million tons. The area on which cotton is produced is around 9.50 million hectares in India. The yield per hectare in India is very low as compared to the other producing countries of the world. The country consumes all of the cotton produced in the country and ranks among the largest cotton consuming countries. The main demand comes from the textile sector.Regarding the Indian scenario in the world trade, India hasnt been a significant player in the world market. India sometimes exports cotton and its by-products and some times acts as an importer to satisfy its huge domestic consumption demand. Cotton earns the Indian economy the maximum foreign exchange among the exported commodities. India is the largest exporter of cotton yarn in the world accounting up to 450 million kg i.e. 17% market share. The countries to which India exports cotton yarn are China Korea Bangladesh Egypt Taiwan Hong Kong Turkey JapanBut it also adds on to the list of expenses in the budget of the economy as large amounts of cotton are imported due to the superior quality of foreign cotton. India imports around 22 lakhs bales of cotton, which is same as the 12% of the domestic productions. Also the rate of imports is overtaking the rate of exports in the country making it a net importer of cotton. Also cotton sector in India is largely unorganized but several associations are trying to change the scenario.Market Influencing Factors Relationship with other competitive fibers World demand for consumer textile and demand from the cattle-feed industry in the country Discovery of new cotton markets Introduction of new and developed technology Fluctuations in domestic cotton production Delays in the arrival of cottonseed for crushing Price and other policies of the government regarding the cotton sector Import-export scenario in the country Fluctuation in currency value

Major trading centers of Cotton

The major international trading centers in which cotton is traded are New York Board of Trade (NYBOT) New York Shanghai Commodity Exchange ChinaThe cotton trading centers in India are Akola (Maharashtra) Parbhani (Maharashtra) Nagpur (Maharashtra) Yeotmal (Maharashtra) Adilabad (Andhra Pradesh) Karimnagar (Andhra Pradesh) Dhule (Maharashtra) Surendranagar (Gujarat) Bhavnagar (Gujarat) Sriganganagar (Rajasthan) Bhatinda (Punjab) Hisar (Haryana) Sirsa (Haryana) Guntur (Andhra Pradesh) Kurnool (Andhra Pradesh) Coimbatore (Tamil Nadu) Gulbarga (Karnataka) Ahmednagar (Maharashtra) Sangli (Maharashtra) Kota (Rajasthan) Mumbai (Maharashtra) Ludhiana (Punjab) Delhi Kanpur (Uttar Pradesh) Bhilwara (Rajasthan) Ahmedabad (Gujarat) Surat (Gujarat) Indore (Madhya Pradesh) Kolkata (West Bengal) Tirupur (Tamil Nadu) Madurai (Tamil Nadu)Also, cotton and its derivatives are traded in Indian commodity exchanges namely,National Commodity & Derivatives Exchange ltd, Multi Commodity Exchange of India ltd, National Multi Commodity Exchange of India ltd, The Bombay Commodity Exchange Ltd, Ahmedabad Commodity Exchange Ltd, The East India Cotton Association and Surendranagar Cotton oil & Oilseeds Association Ltd.

TheTextileindustry inIndiatraditionally, after agriculture,is the only industry that has generated huge employment for both skilled and unskilled labor in textiles. The textile industry continues to be the second largest employment generating sector in India. It offers direct employment to over 35 million in the country.The share of textiles in total exports was 11.04% during AprilJuly 2010, as per theMinistry of Textiles. During 2009-2010, Indian textiles industry was pegged atUS$55 billion, 64% of which services domestic demand.In 2010, there were 2,500 textile weaving factories and 4,135 textile finishing factories in all of India.

The archaeological surveys and studies have found that the people of Harrapan Civilization.knew weaving and the spinning of cotton four thousand years ago. Reference to weaving and spinning materials is found in the Vedic Literature also.There was textile trade in India during the early centuries.A block printed and resist-dyed fabrics, whose origin is from Gujarat is found in tombs of Fostat, Egypt.This proves that Indian export of cotton textiles to the Egypt or the Nile Civilization in medieval times were to a large extent.Large quantity of north Indian silk were traded through the silk route in China[4]to the western countries. The Indian silk were often exchanged with the western countries for their spices in the barter system. During the late 17th and 18th century there were large export of the Indian cotton to the western countries to meet the need of the European industries during industrial revolution. Consequently there was development of nationalist movement like the famous Swadeshi movement which was headed by the Aurobindo Ghosh.There was also export of Indian silk, Muslin cloth of Bengal, Bihar and Orissa to other countries by the East Indian company. Bhilwara is known as textile city.Production in decentralised sectorIndia is the second largest producer of fibre in the world and the major fibre produced iscotton. Other fibres produced in India includesilk,jute,wool, andman-made fibers. 60% of the Indian textile Industry is cotton based.The strong domestic demand and the revival of the Economic markets by 2009 has led to huge growth of the Indian textile industry. In December 2010, the domestic cotton price was up by 50% as compared to the December 2009 prices. The causes behind high cotton price are due to the floods in Pakistan and China.India projected a high production of textile (325 lakh bales for 2010 -11).[5]There has been increase in India's share of global textile trading to seven percent in five years.[5]The rising prices are the major concern of the domestic producers of the country. Man Made Fibers: These includes manufacturing of clothes using fiber or filament synthetic yarns. It is produced in the large power loom factories. They account for the largest sector of the textile production in India.This sector has a share of 62% of the India's total production and provides employment to about 4.8 million people.[6] The Cotton Sector: It is the second most developed sector in the Indian Textile industries. It provides employment to huge amount of people but its productions and employment is seasonal depending upon the seasonal nature of the production. The Handloom Sector: It is well developed and is mainly dependent on the SHGs for their funds. Its market share is 13%.[6]of the total cloth produced in India. The Woolen Sector: India is the 7th largest producer.[6]of the wool in the world. India also produces 1.8% of the world's total wool. The Jute Sector: The jute or the golden fiber in India is mainly produced in the Eastern states of India like Assam and West Bengal. India is the largest producer of jute in the world. The Sericulture and Silk Sector: India is the 2nd largest producer of silk in the world. India produces 18% of the world's total silk. Mulberry, Eri, Tasar, and Muga are the main types of silk produced in the country. It is a labor-intensive sector.Indian Textile PolicyGovernment of India passed the National Textile Policy in 2000Textile OrganisationThe Indian Textile industries is mainly dominated by some government, semi government and private institutions.The major functions of the ministry of Textile are: Bhilwara Textiles Industry Textile Policy & Coordination Man-made Fiber Industry Cotton Textile Industry Jute Industry Silk and sericulture Industry Wool Industry Decentralized Powerloom Sector Export Promotion Planning & Economic Analysis Finance Matters Information Technology(IT) According to Kearneys Retail Apparel Index India ranked as the fourth most promising market for apparel retailers in 2009.[7] There is large scope of improvement in the textile industry of India as there is a huge increase in personal disposable income among the Indians after the 1991 liberalisation. There is also a large growth of the organised sector in the Indian textile industries.The foreign brands along with the collaboration of the Indian companies established business in India. Some of these arePuma,Armani, Benetton,Esprit,Levi Strauss,Hugo Boss, Liz Claiborne, Crocs etc.The major Indian Industries includeBombay Dyeing,Mayur,Modern Woolens,Sangam India,BSL,Fabindia,Grasim Industries, JCT Limited,Lakshmi Machine Works,Lakshmi Millsand Mysore Silk Factory.

Cotton exports at a standstillExporters face huge losses, owing to a sharp decline in international pricesCotton exports from India have come to a standstill, as prices of the commodity here are higher than abroad.

When global prices started declining in June, Indian entities had exported cotton to their associates in China, with an aim to store the commodity in that country and sell it when prices rose. However, as prices saw a continuous fall, these exporters have now come under huge financial stress. India is the second-largest exporter of cotton, after the US.

In the past three months, international prices of cotton have fallen 25 per cent to 68 cents a pound. During the same period, the price declined six per cent to Rs 11,100 a quintal (for the Shankar-6 variety) in India. As a result, Chinese importers can secure cotton of a better quality and at a lower price from other countries. Demand for Indian cotton has also fallen because Chinese authorities have asked mills in that country to import only 20 per cent of their requirements, over and above theannual import quotaof 850 tonnes.

As of now, the unsold cotton already sent to China by Indian entities is lying at warehouses in Chinese ports. Also, demand from Chinese mills has shifted in favour of the long-staple, finer quality from Brazil. Bringing the cotton sent to China back will not be beneficial because that will include additional freight costs and local prices, too, are low.

An exporter said some consignments had been brought back to Indian ports, adding exporters would have to decide about the remaining quantity.

Most exporters arent in a position to pay ginners for the cotton bought from them. Trade & industry bodies and exporters suggest losses to ginners and exporters run to several hundred crores.Initially, Indian exporters had thought owing to theEl Nioweather phenomenon, the cotton crop might be hit and, therefore, prices might rise. However, that hasnt been the case.

So far this cotton year, India has exported 11.5 million bales, compared with 11.4 million bales in the previous cotton year. It is estimated at the beginning of the next season, export will fall 35-40 per cent.

In Vietnam and Bangladesh, several mills have bought Indian cotton to convert it into yarn and export to China. However, as yarn imports by China have also fallen, cotton exporters in India face a double whammy---now, other countries importing cotton to manufacture yarn and sell to China have also cut imports.

India exported 20 lakh bales of cotton to B'desh in 2013-14

India today assured Bangladesh that it will export 20 lakh bales (170 kg each) ofcottonto the neighbouring country in 2013-14 cotton season, even if there is an imposition of restriction on outward shipments of the natural fibre.The announcement is a part of the proposed Cotton Purchase Agreement for which the two countries have exchanged the final draft.

Besides, both the sides signed a textiles sector collaboration agreement aimed at strengthening the economic ties between the two nations.Cotton season runs between October and September. "Under the proposed Cotton Purchase Agreement, in 2013-14 I have assured Bangladesh Textiles MinisterAbdul Latif Siddiquethat Bangladesh textiles mills will get smooth flow of cotton and would have no difficulties in sourcing it from India, even if we have to ban cotton exports to other countries," Textiles Minister K Sambasiva Rao said.He was talking to reporters after meeting Siddique here. "As regards the agreement, the final drafts have been exchanged between the three sides -- the Textiles Ministry, Cotton Corporation of India (CCI) and Trading Corporation of Bangladesh (TCB)," Rao said.Under the draft pact, private sectors of two countries and CCI under theTextiles Ministry(India) and TCB under theBangladesh Ministry of Commercewill engage in exports and imports of cotton."In case of imposition of restriction on export of cotton by India at any time, the CCI and TCB of Bangladesh will determine through consultation the remaining volume of cotton exports in the season," a Textiles Ministry official said.At present, export of cotton is in the Open General Licence (OGL) category with registration of export contracts by the Directorate General of Foreign Trade (DGFT).India's cotton exports are estimated at about 100 lakh bales in the current cotton season. In the previous season, the country exported 129 lakh bales of cotton.As regards the textiles sector collaboration pact, it has come into effect from today and shall remain in the force for a period of five years, the official said, adding that the agreement will be reviewed on completion of every two years."We have signed the textiles sector collaboration agreement which would act as a major trade facilitation mechanism, by establishing institutional mechanism for collaboration through Joint Working Group (JSG)," Rao said.

Cotton Industry IndiaIntroductionCotton plays an important role in the Indian economy as the country's textile industry is predominantly cotton based. India is one of the largest producers as well as exporters of cotton yarn and the Indian textile industry contributes about 11 percent to industrial production, 14 per cent to the manufacturing sector, 4 percent to the GDP and 12 per cent to the country's total export earnings. The cotton cultivation in India in 2013-14 was estimated at 37 million bales (170 kg each) of cotton, making it the second largest producer of cotton worldwide.During 2013-14 in India, cotton yarn production increased by two per cent and cloth production by mill and power loom sector increased by five per cent and six per cent respectively.The states of Gujarat, Maharashtra, Andhra Pradesh (AP), Haryana, Punjab, Madhya Pradesh (MP), Rajasthan, Karnataka and Tamil Nadu (TN) are the major cotton producers in India.Key Markets and Export DestinationsIndia accounted for about 4.72 per cent of global textiles and clothing trade in 2011. The total value of textile products exported from India was estimated at US$ 40 billion in FY 2013. India has overtaken Italy and Germany, and is now the second largest textile exporter in the world. India was the third-largest supplier of textiles and clothing to the US in 2013, contributing about 6.01 per cent of its total imports. China is the biggest importer of raw cotton from India. The other major cotton importing countries from India are Bangladesh, Egypt, Taiwan, Hong Kong among others.Various reputed foreign retailers and brands such as Carrefour, Gap, H&M, JC Penney, Levi Strauss, Macy's, Marks & Spencer, Metro Group, Nike, Reebok, Tommy Hilfiger and WaI-Mart import Indian textile products.Cotton Textile Export Promotion CouncilThe Cotton Textile Export Promotion Council (TEXPROCIL) takes part in national and international events to enhance the visibility of Indian products, advertises and promotes Indian products in various media vehicles such as fashion magazines, event-related pull-outs, India reports and leading trade magazines, and organises buyer-seller meets (BSM) and trade delegation visits.

IntroductionTHE performance of India's garment export sector epitomises how an efficiently managed labour-intensive sector can betransformed into a prolific foreign exchangeearner.During the second half ofthe 1980s export revenues from garment exports have increased in a manner which is unprecedented in India's trade record.What has been particularly beneficial tothe Indian economy is the fact that these exports have taken place with very little import content. Today garment exports account for about 15 per cent of the country's export earnings and has become the single largest net foreign exchange earnerThe garment export sector has centredaround anextensive subcontractingsystem which made useof powerloomfabricsand second-hand machinery. Hard currency areas like the US and the EEC have beenthe principal markets for I ndia's apparelexports. The clothing industry in the developed western nations is characterized by a large degree of protectionism whichhas been manifested in the form of high tariffs and quantitative restrictionsincorporated in the Multi Fibre Arrangement(MFA). Although these trade bajriers haveacted as a major stumbling block Indiahas been able to reap the maximumbenefit from this constrained scenario byfully utilising the quotas that have beenmade available. Our recordin clothing exports no doubt surpasses that of any other manufactured item we have exported sofar. Al the same time, it would be complacent on our part to presume that our performance is without blemish. A disquieting feature of our record in garment exports is the lack of an adequate fabric base which has stymied our efforts to attain the requisite degree of diversity in terms of both product composition and markets, A brief outline of the four sections in this study is described Section I focuses on India's overall performance in the garment export sector. Besides an analysis of the general up trendin growth, a comparative assessment has been made vis--vis the leading garment exporters in the international market. Section II delves into the production pattern in the Indian garment industry and highlights its dichotomous nature insofar as manufacturing for the domestic market and overseas markets are concerned. Section III describestheregulatory regime governing the garment export industry. International trade in garments has to contend with severe protectionist sentiments on the part of major importing nation and the rules of the game have gone much beyond what is ordinarily laid out in GATT provisions. With the Multi FibreArrangement (MFA) inoperation, international trade in garments is largelygoverned by the international allocationof quotas. Section IV examines the trendsin the value of garment exports as well asmovements in unit values expressed interms of both dollars and rupees. Thepaper concludes with somepolicy recommendations which may facilitate our attainment of the status of a global playerof significance in garment exports.IIndian Garment ExportsTRENDSIn 1991-92, India's exports ofreadymade garments are estimated to havereached Rs 6,282 crore which is almostdouble the value obtained in 1989-90when garment exports amounted only toRs 3,472 crore. If one were to exclude exports of gems and jewellery where the import content is very high and value addedis very low, readymade garments are todayIndia's number one manufactured exportitem. India's garment exports were risingat an annual compounded rate of 22 percent throughout the 1980s. Over the five-year period from 1985-86 to 1989-90 garment exports have been growing at anaverage annual rate of 32 per cent. Prior to 1960-61 there was virtually no export of readymade garments from India andin that year they were a modest Rs 0.85crore. In 1970-71 the value of garment exports was about Rs 30 crore and constituted 2 per cent of total exports and 3.8per cent of manufactured exports.1But since then exports of readymade garments have recorded a phenomenal increase,more so in the 1980s. They reached Rs 200crore in 1975-76, Rs 565 crore in 1980-81and Rs 1,106 crore in 1985-86. In 1990-91,the share of garments in India's manufactured exports went up to more than 17 percent and its share in total exports was 12.5per cent (Table 1.)Although garment exports have been rising consistently over the entire period two significant phases of growth can be discerned. The first major burst of growth was witnessed during 1970-71 to 1975-76.During this phase the shareof clothing in manufactured exports rose from 3.8 percent in 1970-71 to 11.1 percent in 1975-76and its corresponding share in total exports rose from 2 per cent to 5 per cent The boom in clothing exports atthis time was associated with the enormous increase in demand for Indian handloom garments and other indigenous fabrics in the USand Europe.The second garment export boom commenced from 1983-84 onwards and seems to have sustained itself. Latest figures indicate that within a span of six months,i e, January-June 1992, the export figure has reached a level of Rs 4,400 crore which shows a positive variation of 21 per cent over the corresponding period last year.Going by the current explosive trend, garment exports should cross the 1992 target of Rs 7,400crore (US dollars 2.7 billion).A sustained upsurge of such proportions is almost unprecedented when viewed in the context of India's manufactured exports.This sharp uptrend in garment exports,can be attributed to various factors. The major markets for Indian garments continue to be the US and the EEC. Exports to both these markets have shot up considerably. What may have facilitated this is a renewed consumer preference for cotton garments in the developed countries.This seems to have revived the world trade in cotton garments. Moreover, there was a world-wide shortage ofcotton after1986which inflated the price of cotton garmentstraded in theinternationalmarket.

India's Garment ExportsSomnath Chatterjee Rakesh MohanCotton is the fabric base for more than65 per cent of the garments exported fromIndia, andso we have obviously capitalised on these circumstances. Secondly, theavailability of more levels in bilateralagreements under the MFA2have given aboost to exports in restrained countries.In1987 the US increased its base levelquotas for India by 17 per cent and againby another 18 per cent in 1988. The EECincreased its quota allocations to India by15 per cent in1987 and by 28 per cent in1989. And finally, Indian garment exportshave evidently benefited from some of thegovernment measures announced in recentyears to help the export sector, which include duty drawbacks, advancelicensing and the provision of cash compensatory support. (The last provision hasnow been withdrawn).A more realistic picture emerges whenone analyses the value indices of Indiangarment exports at constant prices. Thisadjusts for fluctuating foreign exchangerates and general rise in world prices. Thecurrency that seems most appropriate forevening out exchange rate fluctuations isUS dollar as the US is the country whichhas absorbed the largest share of India'sgarment exports. Table 2 shows Indiangarment exports expressed in US dollars,first in current prices, and then in constant prices, deflated by a manufacturingunit value index. A fairly consistent upward trend in the value indices of garment exports is apparent. The only diversion from this upward trend was a marginal decline from1977 to 1978and a more pronounced decline in 1982 and 1983. Butthese shortfalls were ofa transitory nature and the result of certain exogenous factors.In 1977, the volume of demand for Indian garments was constrained by some alterations in the MFA whereby the exemption previously granted to Indian handloom products was withdrawn. As mentioned earlier, Indian garments made of handloom fabrics had become popular in European and American markets during the first half of the 1970s. The demand fortheseitems wasable to flourishas there were no stringent quotas restraining their export. The MFA had initially exempted Indian handloom fabrics from the quota restrictions facing millmade garments in Europe and the US. But the subsequent modifications in the MFA in1977 discontinued this. Although hand-loom products still enjoy some preferential treatment under the MFA, the termsand conditions are not as liberal as theywere during the early 1970s.In 1982and1983the value ofIndian garment exports even at current prices had declined. This implied a substantial reduction in the value indices at constant pricesfor those years. But this decline was largely a reflection of the recession in worlddemand for garments. This is corroborated by Table 3 which shows that world garment imports stagnated between 1980and1983. Consequently world exportsof clothing also stagnated during this period as is indicated in Table 4. Fven the valueof garment exports from Hong Kong, the world's number one exporter, registered a decline. However, the recession was short lived and Indian garment exports gained considerable momentum from 1984onwards.We have seen that the growth in Indian

IMPORTSToday, India is the fifth largest energy consumer in the world. While the world consumes 12000 million tonnes of oil equivalent of energy resources, India consumes 4.4% of the world total (524.2 mtoe). Global consumption of primary commercial energy (coal, oil & natural gas, nuclear and major hydro) has grown at a rate of 2.6% over the last decade. In India, the growth rate of demand is around 6.8%, while the supply is expected to increase at a compounded annual growth rate (CAGR) of only 1%. Of the total primary energy consumption basket, oil and gas constitute 45% share in the total energy basket mix. It is projected that even if we exploit hydropower potential to the fullest, even if there is a 40 fold increase in the contribution of renewable resources and a 20 fold increase in the contribution of nuclear power capacity, by the year 2031-32, fossil fuels will continue to occupy a significant share in the energy basket (74% to 85% of the energy mix). The size of the oil and gas industry in terms of turnover stands at USD 160 bn. The value of crude oil and LNG imports into India in 2010/11 were around US$98 billion. About 78 per cent of Indias petroleum consumption is met from imports (mostly of crude oil), while about 25% of natural gas (including LNG) consumption comes from imports. It is estimated that in the coming years, the import dependency for crude oil alone would reach above 90% level. To bridge the rising demand-supply gap, reduce import dependency and make ourselves resilient to the external factors economic and political disruptions in the sourcing nations, international crude oil prices the government has initiated several policy and regulatory measures: New Exploration License Policy (NELP): To increase domestic exploration and production, the government introduced NELP. During the ninth round of bidding under NELP, there was an investment commitment of more than USD 827.44 mn. By 2012, the government plans to move towards an Open Acreage Licensing Policy (OALP), wherein oil and gas acreage will be available round the year instead of cyclical bidding rounds launched under NELP. Coal Bed Methane Policy: To stimulate the exploration and production of coal bed methane in the country, the government introduced the Coal Bed Methane Policy. Till date 33 blocks have been offered in four rounds of bidding. Underground Coal Gasification: The pilot production of underground coal gasification would commence by the end of 2015. ONGC has signed an agreement with Skochinsky Institute of Mining, Russia, to harness world class technology to tap this energy source. Gas Hydrate is at the research and development stage (during the year 2008, India signed an agreement with Russia under the Integrated long term programme of cooperation to jointly conduct research and development for technology required to harness gas hydrates). Shale gas: By the year 2012, the government plans to announce the Shale gas policy. The government has been encouraging acquisition of overseas E&P assets. 100% FDI is permitted in exploration, refining, pipelines and marketing. Although the government has initiated several policy and regulatory measures to ensure energy security and enhance domestic production, a large number of issues remain which require significant attention and policy reforms. Subsidies and Pricing mechanism Given the alarming estimates on under-recoveries (OMCs have been incurring daily under-recovery of Rs.235 crores on sale of diesel, PDS kerosene and domestic LPG) in the wake of rising international prices; huge amounts of wastage, leakage, adulteration and inefficiency in distribution on account of artificially lowered prices, it is important to ensure that the subsidies are directed to the intended beneficiaries. To improve the financial health of the upstream oil marketing companies and ease the fiscal burden of the government on account of huge subsidies, it is important to decontrol the diesel prices. Infrastructure With the demand for natural gas far exceeding the domestic supply, it will be possible to cater to the additional demand only through LNG or through transnational pipelines. To ensure last mile connectivity, speedy development of domestic pipeline infrastructure and LNG terminals, measures need to be taken to expedite large international pipeline projects, especially Turkmenistan-Afghanistan-Pakistan-India (TAPI). Besides various issues of political instability, security and transit tariff rate need to be addressed. Although India has four strategic oil reserves, which are equivalent to 2 week consumption, given the pace of the rising demand, the government needs to urgently increase the existing reserve base. Other Challenges To secure adequate supply of energy resources it is important to develop bilateral and regional strategic energy partnerships that promote, diversification of hydrocarbon supply sources, acquisition of foreign hydrocarbon assets, tradability of energy sources through gas contracts, enhancement of the national knowledge-base and acquisition of technologies. India needs to strive for self-reliance, for which the government should consider creating a much larger corpus that enables Indian companies in their international pursuits. To secure overseas oil and gas assets PSUs need to be granted more autonomy.Opportunities Although India ranks high in terms of energy consumption, the per capita energy consumption (500 kgoe) is significantly lower than the global average (1800 kgoe), indicating significant growth potential of the energy demand in the country. According to the International Energy Agency estimates, India will need investments worth nearly US$600 billion during the years 20112030, across various segments of its hydrocarbon chain, to increase its energy supply and improve the infrastructure to enable this. This provides ample opportunities for companies across the hydrocarbon value chain. In addition the sector offers huge opportunity for Capacity building, technology transfer for E&P activities and building & maintenance of strategic oil and gas reserves.

When energy starved India meets oil rich Russia

As India and Russia try to diversify their energy focus India as importer and Russia as exporter both nations are at an interesting confluence with Indias energy need growing exponentially.Russia is looking beyond Europe towards Asian markets for its energy export the recent Western-Russian standoff is fueling this drive.Its a point where the insatiable energy demands of India meet the available energy reserve of Russia, especially those based on oil and nuclear technology.India, ranked the worlds third largest oil importer behind the US and China, afteran importof about 3.8 million barrels of crude oilper dayin 2013-14. The International Energy Agency (IEA)saysit will become worlds largest oil importer by 2020.Most of Indias imports are from the Middle East, especially Iran. Due to the vulnerabilities and the unsteady conditions in the region, India is looking at multiplying its sources of energy import.India is trying to reduce its dependence on the volatile Middle East for its energy needs amounting currently to 76 percent and projected to grow to 85-90 percent whilst Russia is trying to diversify its export outlets, partly to open new markets in the Asia-Pacific region and also to neutralize the impact of sanctions on its global trade,says international oil economist, Dr Mamdouh G. Salameh, oil and energy consultant to the World Bank, Washington DC and a technical expert with UNIDO who are headquartered in Vienna.Excessive oil import is impacting Indias current account deficit accounting for more than half of Indias $191 billiontrade deficitin 2013-14.The country is looking at reducing its import dependence through collaboration with investors in various streams of the oil and gas industry.

India oil imports from Iran jump sharply in 2014India imported 42 percent more Iranian oil last year over 2013 levels as its refiners increased purchases to take advantage of an easing in sanctions targeting Tehran's nuclear programme.The jump came with an end-of-the-year boost as imports in December surged 84 percent from a year ago to 348,400 barrels per day (bpd), the highest since March.Iranian and U.S. officials are meeting in Geneva this week ahead of talks between Tehran and world powers on Sunday focused on reaching a final deal to end the sanctions against Iran in return for curbs to its nuclear programme.Diplomatic efforts to reach a final agreement last year failed for a second time in November, and a self-imposed deadline was extended to June 30 this year.Tehran says its uranium enrichment programme is for peaceful purposes only and not aimed at building a weapon.India - Iran's top oil customer after China - imported 276,800 bpd of oil and condensate last year, compared with 195,600 bpd in 2013, according to tanker arrival data obtained from trade sources and Thomson Reuters Oil Research & Forecasts.Indian refiners bought about 39 percent more Iranian oil in December compared with November, the data also showed.Annual imports of Iranian oil rose sharply last year as refiners ramped up purchases in the first quarter to make up for a big decline in shipments in 2013 as insurers had not extended coverage for processing oil from the sanctions-hit nation.Private-refiner Essar Oil was the biggest Indian client of Iran in 2014, followed by Mangalore Refinery and Petrochemicals Ltd and Indian Oil Corp.Iran remained the seventh-biggest oil supplier to India in 2014, while its share in overall purchases rose to 7.3 percent last year, compared with 5.1 percent in 2013, the data showed.The current sanctions allow Iran access to some of its frozen oil revenue overseas and restrict its oil sales at about 1 million to 1.1 million bpd.Overall, India imported 3.84 million bpd of oil in December, up 9.4 percent from a year earlier. Imports for the full year fell 1.4 percent to 3.81 million bpd.In the January-December period India imported about 3.9 percent more oil from Latin America, with the region accounting for about 20.1 percent of overall imports, up from about 19.1 percent a year ago.The Middle East region supplied about 59 percent of India's oil imports in January to December, compared with 62.3 percent a year ago.Africa's share jumped to 16.7 percent from 15.4 percent.In the fiscal year to March 31, 2014, India cut its imports from Iran by 15 percent to 220,000 bpd to get a waiver from U.S. sanctions on the Islamic republic. India's annual oil contracts with Iran follow the country's April-March fiscal cycle.In the first nine months of the year to end March 31, 2015, Indian refiners have shipped in about 250,200 bpd of Iranian oil, up 41 percent from the same period a year ago.

Focus on India Trade!

India's Economy is growing very fast; it is a good market for Import and Export Business. India's Export was $313.2 billion and Import was $467.5 billion in year 2013. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. India's Export Partners are UAE 12.1%, USA 12.0%, Singapore 4.6%, China 4.5%, Hong Kong 4.0% (2013). India Majorly imports mineral fuels,petroleum products, precious stones, pearls, machinery, iron and steel, chemicals, vehicles, apparel etc. if you are Looking to start Business with India we would help you!!!

India Cuts Down Dependence on Iran Oil: India has cut its reliance on Iran for meeting its oil needs to less than 6 per cent as it raised imports from countries like Columbia and Mexico.The country imported 11 million tonnes of crude oil from Iran in the fiscal year ended March 31, 2014, down from 13.14 million tonnes in the previous fiscal year, official sources said.Imports from Iran made up for 5.81 per cent of the nation's oil import needs in fiscal year 2013-14, down from 7.11 per cent in the previous year.India has steadily cut imports from Iran as US and western sanctions blocked payment channels and crippled shipping routes. It imported 21.20 million tonnes of crude oil from Iran in 2009-10, which got reduced to 18.50 million tonnes in 2010-11 and 18.11 million tonnes in 2011-12.Imports from Iran were reduced to 13.14 million tonnes in 2012-13, the year when the US had tightened screws on Iran. Sources said Iran was India's second biggest supplier behind Saudi Arabia up to 2010-11 but has now been relegated to 6th place in 2013-14.Saudi continues to be the biggest supplier, selling 38.18 million tonnes of oil, or 20.18 per cent of India's total oil imports, in 2013-14.India had imported 189.24 million tonnes of crude oil from a total of 35 countries around the globe.Iraq is its second biggest supplier at 24.63 million tonnes, followed by Kuwait with 20.35 million tonnes of supplies. Nigeria is the fourth largest supplier at 16.36 million tonnes, followed by UAE with 13.98 million tonnes.Sources said India is diversifying its crude purchases, tapping new nations in the Latin America for supplies. Imports from Columbia have been more than doubled to 6.31 million tonnes in 2013-14 from 2.80 million tonnes in the previous year. In 2011-12, Columbia gave less than one million tonnes of oil to India.Similarly, supplies from Mexico have been raised by almost one million tonnes to 4.94 million tonnes.Sources said Middle-East contributed 61 per cent (115.86 million tonnes) of India's oil while Latin America has emerged as its second biggest supplier region, supplying 31.73 million tonnes of oil. Africa provided 30.39 million tonnes of oil in 2013-14.In the current fiscal year, India will import 188.2 million tonnes of oil, marginally lower than 189.24 million tonnes in the previous fiscal year. About 35.5 million tonnes of oil will come from domestic fields to meeting an estimated fuel demand of 223.7 million tonnes in 2014-15, they said.

India ImportsImports in India decreased to 28392.30 USD Million in February of 2015 from 32205.60 USD Million in January of 2015. Imports in India averaged 6214.93 USD Million from 1957 until 2015, reaching an all time high of 45281.90 USD Million in May of 2011 and a record low of 117.40 USD Million in August of 1958. Imports in India is reported by the Ministry of Commerce and Industry, India.

India is heavily dependent on crude oil imports, with petroleum crude accounting for about 34 percent of the total inward shipments. The country also imports: gold and silver (12 percent of the total imports), machinery (10 percent), electronic goods (7 percent) and pearls, precious and semi-precious stones (5 percent). Indias main import partners are China (10.7 percent of the total shipments), United Arab Emirates (8 percent), Saudi Arabia (7 percent), Switzerland (7 percent) and the United States (5 percent). This page provides - India Imports - actual values, historical data, forecast, chart, statistics, economic calendar and news. Content for - India Imports - was last refreshed on Monday, March 16, 2015.

Exports in India decreased to 21545.33 USD Million in February of 2015 from 23883.60 USD Million in January of 2015. Exports in India averaged 4249.02 USD Million from 1957 until 2015, reaching an all time high of 30541.44 USD Million in March of 2013 and a record low of 59.01 USD Million in June of 1958. Exports in India is reported by the Ministry of Commerce and Industry, India.

In recent years, India has become one of the biggest refined product exporters in Asia with petroleum accounting for around 20 percent of total exports. The country also exports: engineering goods (19 percent of the total shipments), chemical and pharmaceutical products (14 percent), gems and jewellery (14 percent), agricultural and allied products (10 percent) and textiles and clothing (10 percent). Indias main export partners are: United Arab Emirates (12.1 percent of the total exports), the United States (12 percent), Singapore (4.5 percent), China (4.5 percent), Hong Kong (4 percent) and Netherlands (3.5 percent). This page provides - India Exports - actual values, historical data, forecast, chart, statistics, economic calendar and news. Content for - India Exports - was last refreshed on Monday, March 16, 2015.