A Study on Punjab Export Potential and Strategy draft export strategy of punjab.pdf · The study observes that the export sector of Punjab, even after enjoying innate competitive

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


(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)


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


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.


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


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


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


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.


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


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.


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.

A Study on Export Potential and Strategy

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


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



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


b. Permanent outlaying dispensaries

and insemination units

No. 1485

c. Veterinary Hospitals under Zila No. 582


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.


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


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


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:


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-


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:


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


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:


(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


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


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:


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.


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:


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:


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


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.


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


protection equipment, pesticides, weedicides, supply of hybrids seeds, bed planters

etc. would be provided.


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


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


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


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


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

http://www.punjabstat.com/agriculture/2/fisheries/101/stats.aspx


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


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


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.

http://www.indiastat.org/


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.


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


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.


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


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.



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:



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.


Figure 2.36: Punjab Services Sector Growth Rate Surpass Total SGDP Growth rates


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



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


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


uncombed

fibres

298.00 1643.96 2662.87 4525.26 7573.63 1.772 1.245 High


uncombed

fibres

397.58 1724.87 2922.58 2588.65 3703.58 0.867 0.747 Low


uncombed

fibres

26.93 109.35 874.45 1125.70 2237.78 0.524 2.019 High


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


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 ↑


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 ↑


uncombed fibres

2.01 4.32 3.37 5.25 4.71 ↑


uncombed fibres

9.36 14.54 18.66 18.79 12.76 ↑


uncombed fibres

19.4 25.17 36.35 29.63 25.01 ↑


uncombed fibres

3.78 7.92 24.97 7.04 4.25 ↑


combed fibres

10.57 4.82 4.34 10.92 17.39 ↑


combed fibres

23.91 20.4 23.96 26.36 23.81 ↑


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 ↑


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


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 ↑


material

41.32 40.94 36.52 32.89 23.71 ↓


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


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


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


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


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


uncombed

fibres

682.15 643.02 967.75 1132.26 764.06 574.83


uncombed

fibres

1551.33 1537.12 2264.34 2749.51 3105.59 3925.12


uncombed

fibres

330.40 259.69 467.05 522.44 451.78 525.48


uncombed

fibres

194.07 180.34 245.26 397.32 610.60 1061.50


combed

fibres

442.03 335.10 623.76 750.22 143.49 122.77


combed

fibres

930.37 804.69 1356.93 1315.47 1097.17 1161.67


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


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


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


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


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


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 ↓


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


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 ↑


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 ↑


uncombed

fibres

0.0043 0.0053 0.0065 0.0064 0.0044 0.0034 ↓


uncombed

fibres

0.0097 0.0126 0.0152 0.0155 0.0178 0.0235 ↑


uncombed

fibres

0.0021 0.0021 0.0031 0.0029 0.0026 0.0031 ↑


uncombed

fibres

0.0012 0.0015 0.0016 0.0022 0.0035 0.0064 ↑


combed

fibres

0.0028 0.0027 0.0042 0.0042 0.0008 0.0007 ↓


combed

fibres

0.0058 0.0066 0.0091 0.0074 0.0063 0.0070 ↑


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 ↓


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 ↓


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 ↓


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 ↓


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


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


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 ↑


uncombed fibres

↑ 610990 Of other textile materials ↑


uncombed fibres

↑ 611030 Of man-made fibres ↑


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


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


uncombed

fibres

15.940 50.769 51.390 65.626 74.596 Competitive


uncombed

fibres

105.748 230.372 251.550 206.200 230.871 Competitive


uncombed

fibres

13.308 32.156 158.201 107.235 86.494 Competitive


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


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




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


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


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



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


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


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


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%)


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%)


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%)


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%)


(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%)


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%)


(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%)


(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%)


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%)


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%)


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%)


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%)


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%)


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




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



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



611030 Of man-made fibres 8.4



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


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


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


ve


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


ve

Competitive Competitive Competitive Competitive Competitive Uncompetiti

ve


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


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


ve

Uncompetiti

ve


ve

Uncompetiti

ve


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


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


ve

Uncompetiti

ve

Uncompetiti

ve


ve


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


ve

Uncompetiti

ve


ve


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


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


ve


ve

Uncompetiti

ve


ve


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


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


ve

Uncompetiti

ve

Uncompetiti

ve

Uncompetiti

ve


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


ve

Uncompetiti

ve


ve


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


ve

Uncompetiti

ve


ve


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


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


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


ve


ve

Uncompetiti

ve


ve


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


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


ve


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


ve

Uncompetiti

ve

Uncompetiti

ve


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


ve


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


ve


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


ve


ve


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


ve


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


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


ve

Uncompetiti

ve


ve


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


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


ve


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


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


ve


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


ve


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


ve


ve


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


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


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


ve

Uncompetiti

ve


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


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


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


ve

Uncompetiti

ve


ve


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


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


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


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


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


Found


Found

0.01 0.01 0.02 0.0005


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


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


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


ve


871200

United States Japan Germany Netherlands France Belgium Australia Spain Canada Switzerland


Found

0.20 0.29 0.16 0.27 0.19 0.26 0.08


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


ve


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


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


871499 Germany Netherlands Singapore China France United States Indonesia Italy Spain Belgium


Found

0.13 0.09 0.07 0.61 0.13 0.16 0.08


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


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.


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. 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

http://www.punjabstat.com/


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


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


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


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


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,


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.


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.


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


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


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


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


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


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



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


611020 Of cotton 0.001 -0.023

611030 Of man-made fibres 0.080 0.042

611120 Of cotton 0.032 0.117


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


Kg 2.0899 2.2807 3.1943 2.7064 2.7616


Kg 2.2738 2.3321 3.7103 3.1650 3.3031


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


Kg 2.4017 3.0638 4.1288 3.4097 3.5601


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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

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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)