Environmental Goods and Services: Issues for Negotiations for India

Vijaya Katti

November 2005

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Table of Contents

1. Introduction …………………………………………………………………… p.1

2. Environmental Goods and Services (EGS): Status of Negotiations on EGS … p.3

2.1 Definitions and Classification of EGS …………………………………… p.3

2.2 General Direction of Negotiations on EGS ………………………………. p.8

2.21 Environmental Goods …………………………………………………… p.10

2.22 Environmental Services ………………………………………………… p.13

3. Overview of India‘s Environmental Goods and Services Industry ………….. p.18

4. Challenges and Opportunities for India ……………………………………… p.28

4.1 Multiple Use and Customs Policy ……………………………………….. p.31

4.2 Reduction v/s elimination of barriers ……………………………………. p.32

4.3 Environmentally Preferable Products (EPPs) ……………………………. p.33

4.4 India‘s Export Potential for Environmental Services ……………………. p.35

4.5 Clean Development Mechanism (CDM) …………………………………. p.37

5. Conclusions and Recommendations …………………………………………. p.41

List of Tables

Table 1 – CPC and GATS Categories of Environmental Services ……………… p.7

Table 2 – Composition of Indian Environmental Industry ……………………… p.19

Table 3 – Foreign Affiliation in the Indian Environmental Industry ……………. p.26

Table 4 – Selected Environmental Joint Ventures ………………………………. p.27

Annexure

1. Trade Balance of Indian Environmental Goods as per APEC List

1A. Share of Export and Import of Indian Environmental Goods as per APEC List

2. Major Destinations for India‘s Imports and Exports of Environmental Goods as

per APEC List

3. India‘s Import of Environmental Products and their Growth Arranged in

Descending Order

4. Export of Environmental Goods from India Arranged According to their Growth

during 1998-2003

5. Top 20 Exports of Indian Environmental Goods according to Value in 2002 and

RCA of those Products

6. 20 Environmental Goods of India (experiencing maximum growth rate during

1998-2003) and their Revealed Comparative Advantage

7. Items which have more than one use (dual use or multiple use)

8. Items which can be of interest for India

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ENVIRONMENTAL GOODS AND SERVICES: ISSUES FOR NEGOTIATIONS FOR

INDIA

Abstract

Liberalisation of trade in environmental goods and services (EGS) has become a key

issue at the complex and rapidly developing trade and environment interface. The World

Trade Organisation (WTO) at its fourth Ministerial meeting in Doha in 2001, decided to

negotiate opening the market for EGS and set out a commitment to the

reduction/elimination of tariff and non-tariff barriers to EGS. This paper aims at

examining select issues for negotiations in the area of EGS against the background of the

Doha Ministerial Declaration. Different concepts of environmental goods and

environmental services, the narrower and the broader definitions, are examined and the

OECD and APEC lists are compared and categories of environmental goods are

highlighted. The paper provides an overview of India‘s EGS industry and market, the

existing tariffs on environmental goods and the importance of these products in India‘s

total exports. It identifies environmental goods in which India has comparative advantage

and discusses the potential for environmental services. It highlights the issues which can

be considered for the negotiating agenda by developing countries in general and India in

particular.

Key words: Sustainable Development, WTO, Doha development agenda, India,

environmental goods and services (EGS), liberalization of trade in EGS, environmental

industry and technology transfer

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ENVIRONMENTAL GOODS AND SERVICES: ISSUES FOR NEGOTIATIONS FOR

INDIA

1.0 Introduction

Liberalisation of trade in environmental goods and services has become one of the highly

debated set of issues, in the complex and rapidly developing trade and environment

interface. At its fourth Ministerial meeting, held in Doha in 2001, the World Trade

Organisation (WTO) for the first time explicitly made trade and sustainable development

an integral part of its trade negotiation agenda. Paragraph 6 of the Doha Ministerial

Declaration reaffirming the commitment to the objective of sustainable development,

mentions that upholding and safeguarding an open and non-discriminatory multilateral

trading system, and acting for the protection of the environment and the promotion of

sustainable development can and must be mutually supportive. By paragraph 16 trade

ministers have decided to negotiate opening the market for environmental goods and

services and by paragraph 31, there is commitment to the reduction / elimination of tariff

and non-tariff barriers to Environmental Goods and Services (EGS). In particular it has

been agreed to take into consideration developing countries‘ market access concerns and

pay attention to products of export interest to developing countries.

In order to fulfil the Doha Mandate, it is critical for developing countries to understand

the current status of their market for EGS. Since the applied and bound tariffs on

environmental goods are low in developed countries and tariffs in developing countries

for these goods are similar to those for industrial goods, negotiations may lead to

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substantial reductions in bound tariffs of developing countries. It is against this

background that developing countries need to identify products in which they have a

comparative advantage. This is absolutely necessary because there is no definition of

EGS yet and their perspectives regarding whether to include all environmentally friendly

products in the list of environmental goods differs.

It has been generally agreed that the negotiations for environmental goods will take place

in the Negotiating Group on Market Access (NGMA) while the negotiations for

environmental services will take place in Council for Trade in Services Special Session

(CTSSS). The Committee on Trade and Environment Special Session (CTESS) is to

work towards clarifying the concept of environmental goods and it is presumed that no

sequencing would be involved between that work and the actual market access

negotiations in the NGMA.

This paper aims to examine select issues for negotiations in the area of environmental

goods & services against the background of paragraph 6 and paragraph 16 of Doha

Ministerial Declaration. This paper has the following objectives:

1. To examine the current status of the environmental goods and services industry

market in India, the existing tariffs for environmental goods and the importance of

these products to India‘s total exports

2. To identify environmental goods in which India has comparative advantage; and

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3. To highlight issues which should be addressed on the negotiating agenda by

developing countries in general and India in particular.

The evidence and lessons that emerge from the investigations of this research paper will

be of interest to all those countries in the South/Southeast Asia region that are trying to

overcome the challenges of effectively integrating sustainable development objectives

into their trade negotiations, and are formulating their negotiating position for the next

round of WTO negotiations. The paper is divided in four sections: environmental goods

and services: state of negotiations in EGS; overview of India‘s environmental goods &

services industry; opportunities for India; and conclusions & policy recommendations.

2.0 Environmental Goods and Services: Status of Negotiations on EGS

2.1 Definitions and Classification of EGS

There is no single universally accepted definition of environmental goods and services

and in the sustainable development debate, different concepts of ―environmental goods‖

and ―environmental services‖ are used. The Doha Declaration does not clearly define

what constitutes ‗environmental goods‘. An environmental good is considered any

equipment, material or technology used to address a particular environmental problem or

as a product that is itself ―environmentally preferable‖ to other similar products because

of its relatively benign impact on the environment (Hamwey et al 2003).

A narrow definition and also a broader definition of environmental goods exist.

According to the narrow definition, environmental goods are those whose use results in a

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beneficial environmental impact—capital goods or technologies required for ‗end-of-the-

pipe‘ pollution abatement. The broader definition, on the other hand, takes into account

the environmental characteristics of the goods themselves and/or their production

processes. This includes the industrial goods used to provide environmental services to

address pollution and waste affecting water, soil and air. These goods generally have

multiple end-uses, only one of which is to provide environmental services, and usually do

not have inherently environmental characteristics. It is their use to provide environmental

services that qualifies them as environmental goods and they have relatively less negative

impacts on the environment at the production, consumption or disposal stage, or even in

terms of being produced in an environmentally benign manner or with ‗clean

technology‘. Examples of these types of goods include: pumps, valves, compressors,

tanks and containers, chemicals used in water purification, air/water filters, trash

compactors, brooms, plastic lining material for landfill sites, ceramic wares and furnaces

used in incineration, sorting equipment for recycling, measuring equipment to monitor

the environment, noise reducing mufflers, etc.

The Organization for Economic Co-operation and Development (OECD) and the

Statistical Office of the European Communities (Eurostat) have defined the

environmental industry as: ―activities which produce goods and services to measure,

prevent, limit, minimize or correct environmental damage to water, air and soil, as well as

problems related to waste, noise and ecosystems‖(OECD 2003). This definition provides

a basis for an indicative list of EGS that extends across environmental media and

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classifies them under three broad rubrics: i) pollution management, ii) cleaner

technologies and products, and iii) resource management.

In yet another approach, some experts have interpreted environmental goods as goods

with inherently beneficial environmental aspects such as biodegradability. According to

this view, products like organic fertilizers, natural dyes and jute and bamboo products

could be brought into the ambit of environmental goods.

Two types of definitions and sectoral coverage under the category of Environmental

Goods have been quoted extensively in the literature – OECD and Asia Pacific Economic

Cooperation (APEC). These lists have formulated the basis for the stands taken by

various countries for negotiations. The APEC list largely includes end-of-pipe

environmental equipment; measuring and testing instruments; alternative power

generating equipment; parts and components of both these categories of products. OECD

has developed three categories of Pollution Management Products, Cleaner Technologies

and Products and Resource Management Products. The OECD list includes all the

categories in APEC list and additionally includes chemicals used in pollution control

processes and some other items (Environmental Goods: A comparison of the APEC &

OECD lists, OECD-2003) in addition to equipments, chemicals, as well as cleaner

technologies, which fit into the wide definition of environmental industry. It also

encompasses cleaner processes and resource management. However, there are many

items in the list that cannot be captured by the HS (Harmonized System) code system for

the purpose of international trade.

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Counting only entries with corresponding Harmonized System (HS) codes, the OECD list

appears to be about 50% longer than the APEC list. However, when one eliminates

multiple listings at the 6-digit level, they are more similar in length: there are 132 unique

HS codes in the OECD list, compared with 104 in the APEC list. The composite list has

233 entries identified with an HS code, covering 198 different goods. These magnitudes

are small compared with the total numbers of lines contained in WTO Members national

tariff schedules, which range from less than 6000 (in the schedules of Australia and

India) to over 11000 (in the schedules of Hungary, Korea, Mexico, and Turkey). In all,

less than 30% of the goods are common to both lists. The greatest areas of overlap are

found in the categories of air-pollution control, recycling, incineration, and measuring

and monitoring equipment (UNCTAD 2003).

An UNCTAD study (July 2005) has set out 2 types of EGS. Type A environmental goods

include industrial goods used to provide environmental services to address pollution and

waste affecting water, soil and air. These goods generally have multiple end-uses, only

one of which is to provide environmental services and usually do not have inherently

environmental services. Usually do not have inherently environmental characteristics; it

is their use to provide environmental services that qualifies them as environmental goods.

Type B category includes Environmentally Preferable Products (EPPs), including both

industrial and consumer goods. These goods have environmentally preferable

characteristics relative to substitute goods, i.e., reduced negative environmental impacts

in production, end-use or disposal and are generally used for purposes other than

environmental ones in commercial and household applications (Kumar 2002).

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The classification of (trade in) ―environmental‖ services in the context of ongoing WTO

negotiations is based on the concept of human-activities-related services. Two major

subcategories are infrastructure-related services, such as sewage, refuse disposal and

sanitation services, and environment-related commercial services (UNCTAD 2003).

Table 1. CPC and GATS Categories of Environmental Services

CPC Division 94: Sewage and Refuse

Disposal, Sanitation and Other

Environmental Protection Services

GATS Sectoral Classification 6:

Environmental Services

9401 Refuse Disposal Services A. Sewage Services

9402 Refuse Disposal Services B. Refuse Disposal Services

9403 Sanitation and Similar Services C. Sanitation and Similar Services

9404 Cleaning Services of Exhaust Gases.

9405 Noise Abatement Services.

9406 Nature and Landscape Protection

Services.

9409 Other Environmental Protection

Services n.e.c.

D. Other

Source: (UNCTAD 2003, Environmental Goods and Services: Challenges and

Opportunities for Central American and Caribbean Countries. Geneva : UNCTAD)

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Environmental services have been defined as: (a) services provided by ecosystems (e.g

carbon sequestration); or (b) human activities to address particular environmental

problems (e.g. wastewater management) (Cattafesta 2003).

2.2 General Direction of Negotiations on EGS

Negotiations in this field are being carried out with the following objectives:

Support member countries in taking measures to improve their environment.

Promotion of production and trade in environment friendly products.

Development of environmental goods and services industry.

Adoption of environment friendly technologies (Joshi 2003).

On the basis of submission to the WTO, proposals put forward by various countries can

be put in the following categories:

(i) APEC list

(ii) Items in OECD list which are not included in the APEC list

(iii) Inherently environment friendly products

(iv) Products made using environment friendly processes (npr-PPM)

(v) Japanese proposal including energy efficient consumer products and CFC free

products

(vi) Qatar‘s proposal of products using low carbon, energy efficient technologies

(vii) Proposal by Taiwan to identify 30 unique tariff lines from APEC list

(viii) A common list and a development list approach given by China

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The focus of deliberation is on the following points:

Should there be a relationship between a country‘s requirements in the environmental

sector and the market access commitments?

Does the WTO have any role to play other than in trade liberalization?

Is greater coherence between different international organizations required?

Does trade liberalization in EGS enhance welfare in developing countries? (Joshi

2003)

Many members propose ‗list-based‘ approaches instead of seeking prior definitional

clarity on environmental goods. For example the US proposed a ‗core-list‘ (on which

consensus exists) and ‗complementary list‘ for which individual countries could nominate

products. Faster liberalisation is ‗envisaged‘ for core-list products (zero tariffs by 2010)

and liberalisation of a minimum of x% on goods in complementary list (which Members

could choose) (Suathan 2004).

China (TN/TE/W/42) has called for a ‗common-list‘ including goods of export interest to

both developed and developing countries and a ‗development list‘ (for Special &

Differential (S&D) treatment born from the common list) list which would include those

goods from the common list eligible for exemption or a lower level of reduction

commitments (Ibid.).

On specific products only Japan (TN/MA/W/15) and Qatar (TN/TE/W/19) and Taiwan

have submitted proposals. Japan‘s list includes products from both APEC and OECD lists

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plus some additional products. Energy efficient consumer equipment is notable. Qatar has

proposed efficient, lower carbon pollution emitting fuels and technologies. Taiwan‘s

submission focuses on pollution control equipment (Ibid.).

2.21 Environmental Goods

There are broader categories of environmental goods suggested by various

groups/members so far during the negotiations. Interestingly, none of the countries agree

on a definition of EGS. Canada, Japan and the United States have adopted broad

definitions of the environment industry. Italy, Germany and Norway, on the other hand,

have chosen narrow ones. The European Commission‘s (EC) definition (1994), includes

clean technologies whereas other definitions, including that used in the Organisation for

Economic Co-operation and Development (OECD) study (1992), tend to exclude clean

technologies (CUTS 2004a).

Earlier discussions focused on the definitional aspects and now in the Negotiating Group

on Market Access (NGMA) some of the Members have expressed views that the

negotiations should take place on a ‗list approach‘ rather than follow the definitional

route. Some definitions have been given, but agreement on a common definition has

never been reached. Efforts are ongoing to carve out a WTO list from the OECD and

APEC lists; some countries have given a list but work is still going on. There have been 9

submissions so far – all from developed countries (Kumar 2002).

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OECD/APEC lists mostly contain products of which developing countries are net

importers.

There are a few products in the OECD/APEC lists for which developing countries (as

a group) are net exporters such as methanol, ethanol, mats and screens, fluorescent

lamps and plastics. Most top exporters are middle income or emerging economies

such as Mexico, Singapore, Korea, Malaysia and Brazil (UNCTAD-

TD/B/COM.1/EM.21/CRP.1).

Several developing countries argue that the product coverage of environmental goods

would need to include more products of export interest to them. Some WTO members

have also argued that environmental goods should include goods produced in an

environmentally friendly manner (e.g. goods identified on the basis of Process and

Production Methods (PPMs)). Examples include renewable-energy products,

biodegradable products from natural fibers such as jute and coir, recyclable products,

non-timber forest products, etc. India (TN/MA/W/10) for example has supported

inclusion of environmental friendly products such as jute products or those based on

biodiversity (Singh 2004b).

Environmentally Preferable Products (EPPs) are distinct from pollution-control goods

and technologies as environmentally beneficial effects arising during course of

production, use or disposal in terms of less pollution or greater resource-efficiency. They

are not used to treat or deal with environmental problems as such. For most developing

countries, products of export interest lie in EPPs rather than environmental equipment,

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per se. However a number of EPPs such as those based on energy-efficiency (for example

refrigerators) raise issues of appropriate classification and evolving technologies

(Suathan 2004).

Organic products are different from other goods because they are inherently

environmentally friendly (through their impact on human health, etc.). It is felt that such

goods must have different customs codes assigned under the international customs

system known as the Harmonised System (HS), which is maintained by the World

Customs Organisation (WCO). The six digit codes, which are regularly updated by the

WCO to take account of changes in technology or patterns of international trade, are

based on national customs codes.

In the latest amendments to the HS codes in January 2002, the WCO, for the first time,

included social and environmental fields, particularly relating to products under certain

MEAs (Multilateral Environmental Agreements), including CITES, the International

Convention on the Conservation of Atlantic Tunas (ICCAT) and the Basel Convention.

Amendments to the HS codes, in order to differentiate between products based on their

environmental characteristics, are arrived at through fairly protracted deliberations in the

WCO. As a start, such customs codes may need to be developed at the national level and

then gradually be harmonized. This issue may also provide an opportunity for developing

countries to play a more proactive role in the WCO to ensure that their trade interests are

taken into account in the development of customs codes (Chaytor 2003).

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The EC is a major proponent of using process-based criteria (PPMs) to include goods

produced in an environmentally friendly manner. India has made it clear that it is against

the inclusion of goods that are produced in a manner that is ‗environmentally friendly‘

(i.e. differentiated on the basis of PPMs). Chile in its submission to the WTO strongly

opposed the definition of environmental goods on the basis of PPMs stating: ‗there is no

place in the GATT framework – nor is it acceptable – for any possible definition of

environmental goods to include the concept of production processes and methods.‘

Similarly, the Republic of Korea has argued that the environmental goods ‗should be

determined in terms of their end-use, but not in terms of their production and process

methods.‘ Under the WTO rules, it is not permitted to discriminate against products

based on PPMs. Therefore products like organic foods and certified timber products are

ruled out of this category (CUTS 2004b).

2.22 Environmental Services

Services are currently being negotiated in the Committee on Specific Commitments on a

bilateral basis, as WTO members respond to each other‘s requests, and thus, it is likely

that in the short term members will use a variety of different classifications for

environmental services. Meanwhile, the Committee on Trade & Environment Special

Session (CTESS) has not yet played the guiding role it has been given on the definitional

issues. The Quad countries (EC, US, Canada, and Japan) are likely to push strongly for a

broadening of the W/120 classification (CUTS 2004b). Since the WTO already had a

basis for the classification of environmental services (i.e., W/120), the negotiations on

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environmental services are considerably more advanced than those on environmental

goods (CUTS 2004b).

The broader OECD definition/classification has found favour with some developed

countries, such as the EC, US, Canada, Japan, Switzerland and Australia. Adopting a core

listing approach, the US is in favour of a new classification that incorporates a list of

environmental sectors that are significant to the provision of environmental services, e.g.,

construction, engineering and consulting. The US also mentions the need to focus the

classification on pollution prevention, rather than ‗end-of-pipe‘ clean up services, i.e.,

goods that are used to clean the environment or prevent pollution. Canada also proposes

the use of clusters in the negotiations, as a check-list. The EC has suggested an advanced

definition that offers more categories than the W/120 classification, based on what it

considers ‗pure‘ environmental services. Such services would be the subject of a cluster

negotiation, so that they would fall within other sections of the GATS (avoiding the

mutual exclusivity pitfall). Australia and Switzerland are broadly in favour of the EC‘s

approach. Switzerland is of the view that there are several fields of activities that would

accommodate the gradual integration of environmental services, which include:

professional services relating to the environment, consultancy, sub-contracting and

engineering relating to the environment, and construction relating to the environment.

Developing countries have not made express proposals on environmental services, apart

from Colombia, which emphasized pollution control and waste management. It accepts

the EC classification as a working basis, but would add three further services: (i) the

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implementation and auditing of environmental management systems; (ii) the evaluation

and mitigation of environmental impact; and (iii) advice in the design and

implementation of clean technologies. Cuba calls for differential treatment in order to

enhance the competitiveness of developing countries (Ibid.).

Various points are being raised over different proposals on EGS submitted by various

countries. Qatar‘s proposal on natural gas raises the question as to whether natural

resources can also be considered as environmental goods and benefit from lower tariff

and non tariff barriers (NTBs) (including subsidies to alternative fuels to coal). If the

intention is to promote environmentally friendly fuels, ‗relativity‘ considerations must be

kept in mind. E.g.: Hydrogen>Ethanol>natural gas>petroleum>coal. What would happen

to trade-preferences to natural gas once use of ethanol or hydrogen becomes common?

Again lowering barriers should also look not only at tariffs but also internal taxes,

subsidies that may provide strong incentives or disincentives to use a particular fuel.

Japan‘s proposal on energy-efficient products raises issues of how appropriate tariff

classification distinctions and trade preferences will be created, say for example, between

a normal and energy-efficient washing machine, the latter which may become obsolete

the following year as technology improves (Suathan 2004). Brazil, Cuba and India

highlighted the problems through submissions; in the discussions in CTESS.

Several problems with the ―list approach‖ have been identified. The list approach is too

diffused to meet environmental objectives. It appears basically to address only market

access objectives. Most of the developing countries are net importers. Export from the

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South is basically to the South; imports are from the North. This will affect small and

medium enterprises, which comprise 60% of the industrial base. It is further indicated

that there is always a need to negotiate as reflected in the ‗living list‘ concept (New

Zealand proposal) which changes the balance of rights and obligations arrived at the

negotiations (Kumar 2002).

Dual and multiple uses of EGS, e.g. electricity meters, heat exchangers, microwave

ovens, etc. also make it difficult to earmark them separately. There is no synergy between

goods and services. Many environmental activities entail delivery of services. There is a

lack of technology transfer mechanism; most of the environmentally sound technologies

are protected by Intellectual Property Rights and many instances of unsuitable

equipments being transferred to developing countries have been noted (Ibid.).

India has proposed the Environmental Project Approach. The objectives of the approach

are as follows:

To bring trade liberalization to meet environmental and developmental goals.

To bring synergy between environmental goods and services.

To address diversity in environmental standards.

To bring common but differentiated responsibilities.

To give policy space to national governments.

To bring market-based initiatives for environmentally friendly goods and services

through capacity building – the World Summit on Sustainable Development also

supports this (Ibid.).

17

According to India an Environmental Project includes any activity with a view to

achieving environmental objectives. Goods and services used in the project are to be

decided by a National Designated Authority (DNA) on the basis of techno-economic

valuation in a specified period of time for specified national environmental objectives.

Tariff concessions for the project period need to be considered. Both public and private

projects can be included – some threshold can be put. Many countries already have

something like this – e.g. India and Thailand. This is compatible with the Harmonized

System of classification – Chapter 98 of the WCO Book (Ibid.).

India has given the following advantages of the ‗Project Approach‘ in support of its

argument:

This approach is cohesive and integrated – goods and services – OECD study (1st

July 2005) – potential benefit more for Developing Countries (DCs) if simultaneous

liberalization in goods and services.

It is focused and direct – to the goals of environmental objectives.

It can accommodate changing needs of global environmental requirements.

Some of the positive measures include:

Technology transfer – with the services, leading to capacity building.

Does not affect market access schedules of the goods – does not lead to ―zero-for-

zero‖ Sectoral non-agricultural market access (NAMA) negotiations.

It also enhances mutual supportiveness of trade and environment – Para 31(iii)

objective (Ibid.).

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India claims that the Project Approach also achieves Transfer of Technology (ToT)

objectives. Transfer of Environmentally Sound Technologies (ESTs) is expected to

increase compliance with the Technical Barriers to Trade Agreement (TBT) and the

Agreement on Sanitary and Phytosanitary Measures (SPS), to give more market access in

developed countries, enhance indigenous capacity building in EGS, and increase

compliance with MEAs. Imports of ESTs are expected to increase the exports leading to

net trade gain – (+) and reduction in overall cost of the global economy. More availability

of EGS reduces the cost to the environment and improves environmental benefits (Ibid.).

3.0 Overview of India’s Environmental Goods and Services Industry

In India, the environment has emerged as a distinct industry in recent years. Today, there

is a wide range of EGS. These include products that minimize material and energy use,

reduce environmental risk, and prevent pollution right at the source. This sector was

virtually non-existent in India until two decades ago. Nonetheless in the past decade, with

increasing environmental awareness in all sections of society and positive response by the

industry and government, India has been turning into a promising market for EGS.

India‘s current spending on environmental protection is approximately to the order of

0.5% of its GNP compared to 1-3% in developed nations. The environmental

infrastructure services segment is in the realm of Urban Local Bodies while

environmental support services have traditionally been part of integrated engineering

consulting services. The first comprehensive estimate of the Indian environment market

including equipment and services was made for the year 1994 and valued at US$1.9

billion by Confederation of Indian Industry (CII) – 1996. However, the estimate was

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conservative since it did not cover segments like industrial non-hazardous solid waste

treatment or sanitation. The estimates were based on secondary data collected from

government agencies, industry suppliers and multilateral and bilateral assistance

agencies. A more recent estimate, in 2002, valued the Indian environment market at US$

4.36 billion, with an annual growth rate of 15 per cent. In 2000, the market was estimated

at US$ 3.29 billion, and in 2001 at US$ 3.79 billion. The market estimate included

environmental management technology, equipment and services, including clean and

renewable energy (Sawhney & Chanda 2003).

The domestic environmental industry in India is still highly disorganized and is

dominated by the Small Scale Industry units that lack the resources to invest in Research

and Development as well as in marketing and servicing infrastructure. The environmental

business is shared by a number of entities including equipment suppliers, system

suppliers, engineering procurement and construction contractors, consultants and service

providers. Table 2 summarizes the role of different entities and overall composition of the

industry.

Table 2. Composition of Indian Environmental Industry

Business entities Details of products and services

Equipment suppliers (specialized)

Manufacturers of filter presses, oil separators, dust

collectors, bag filters, electrostatic precipitators, etc.

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System supplies

Chemical suppliers

Engineering procurement and

construction (EPC)

contractors/lump sum turnkey

contractors

Consultants

Build Own Operate and Transfer

Essentially contractors who put together various

equipments and who guarantee performance of the

system (water treatment or dust emission control,

etc.)

Used in the conditioning of water or wastewater as

part of the treatment process.

The environment projects are part of larger

packages done by entities who may not have the

process know how, but are able to put together

several packages and implement the whole project

with their project management and construction

capabilities

They provide concept development, project

budgeting, detailed engineering, environmental

impact assessment, troubleshooting, environmental

audit, and a variety of such services.

Not very common now, but the future holds

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(BOOT) and Build Own Operate

(BOO) Operators

Analytical services like

laboratories, etc.

enormous scope for outsourcing the water/waste

water treatment and facilities management to third

parties, allowing companies to focus on the core

area of their business.

Suppliers of monitoring and analytical equipment

and laboratory services providers.

Source: Singh, Sandeep, ―Trade Preferences and Growth of Environmental Industry:

Issues and Implications for India‖, Indian Journal of Economics & Business, Vol. 3,

No.2, 2004, p. 293.

The total environmental market in India was estimated to be around US$8 billion in 2000

and is expected to grow to approximately US$ 13 – 14 billion by year 2005. Active

financial participation of multilateral and bilateral agencies in large urban environmental

infrastructure projects has also helped to a large extent in this regard. There are many

successful joint venture partnerships with countries like USA, UK, Germany,

Netherlands, Canada, and Sweden, etc. The market in India for environmental business

in pollution control equipment is estimated to be growing around 10 – 12 % per annum.

The development of the Indian environmental industry in the past two decades reveals

that the growth has been essentially demand driven. The Central Pollution Control Board

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was constituted in 1974, essentially to implement provisions of the Water (Prevention

and Control of Pollution) Act. Subsequently a full-fledged Ministry of Environment and

Forests was established in 1985, and a comprehensive Environment Protection Act came

into being only in 1986. Thus the environmental industry took off only after 1986

(Mattoo & Stern 2003).

In response to increased demand for pollution control equipment as a result of stricter

regulations and laws, some Indian companies started manufacturing some of these

products while many other such equipment, where demand did not justify domestic

production or where the technology was not available, continued to be imported from

companies outside India.

Hazardous waste treatment is another area where the demand for EGS is increasing

rapidly. It has been estimated that approximately 5 million tonnes of hazardous waste is

generated annually in India, most of which is in the four highly industrialized states of

Maharashtra, Tamil Nadu, Gujarat, and Andhra Pradesh. As the market is in the early

stages of development, there are several technological gaps that produce opportunities for

imported technologies and goods. Indian companies do not have advanced technologies

in the areas of cyanide and phenolic waste treatment, solidification and stabilization of

solid waste, and plasma and hydrogenation technologies.

The air pollution control segment also represents a big slice of the overall market. As per

estimates, the Indian market in air pollution control and management is estimated at US$

23

408 million. India‘s air pollution control industry has developed capabilities for

manufacturing a diverse range of equipment for dust collection in the stationary air

pollution control subsection. India‘s expertise is, however, limited in the case of special

gaseous pollutants.

Since certification and labeling are essential to endorse the eco-sensitivity of

commodities and compete in the global market, firms in developing countries are

increasingly moving towards the introduction of environmental management systems. On

the industrial front, the ISO 14001 certification is the most popular tool to indicate

environmentally friendly management systems worldwide. Indian industry also has

responded positively to this challenge, as can be seen very clearly. The ISO survey 2003

reveals that ISO 14000 certificates have increased from 1 to 879 between 1995 and 2003

and ISO 9000 certificates have increased from 1023 to 10,198 in the same period.

As per estimates by the Confederation of Indian Industry (CII), India has approximately

350–400 pollution control equipment manufacturing and environmental consulting

companies. Over 100 companies in India are associated with international companies in

the form of joint ventures and technology transfer agreements for various types of

pollution control equipments (Singh 2004a).

Trade liberalization in India systematically removed trade barriers and restrictions on

FDI, post-1991. Investment in the environmental services sector has been autonomously

open with 100% FDI in India; domestic firms are engaged in both joint venture and long-

24

term strategic partnerships. Joint ventures have been prominent in the Indian environment

industry, and over 100 companies have associations with international companies in the

form of joint venture and technology transfer agreements for various types of pollution

control equipments. While there are various joint ventures and collaborative

arrangements in the environmental goods sector (between 100 to 150) there are fewer

arrangements in environmental consultancy services sector.

Foreign direct investment (FDI) in environment equipment and services (i.e. manufacture

of pollution control equipment, sewage, refuse, and consultancy services) are allowed

under the automatic route with up to 100 percent foreign equity holding.

However, foreign investment has been largely routed through the Foreign Investment

Promotion Bureau (FIPB) in India, since it comes with a written approval of the

Government of India. Thus while the automatic route is open for foreign investment in

environmental services, the FIPB has been approving several of these projects. During

1993 through 2002 the total FDI in the environment sector approved by the FIPB

amounted to US$ 32.7 million. The largest share of this foreign investment came from

the US (US$ 10.42 million $, 31.86% of all countries), followed by the Netherlands (US$

7.63 million or 23.33% of all), Singapore (US$ 5.93 million, 18.65% of all), UK (US$

2.83 million, 8.65% of all) and Germany (US$ 2.11 million, 6.45% of all) (Sawhney &

Chanda 2004). In 1991–2 there was no FDI or foreign technology cases (FTCs) in the

environment sector approved by the FIPB in India. Countries like Canada consider the

prospects for investment. Countries like Mauritius, Italy, Denmark, France and Japan also

invested in Indian environmental industry in terms of capital or technology.

25

Some of the Indian environmental services firms have established long term strategic

partnerships with foreign firms to enhance their skills in selected niche areas: for

example, in 1997, Technofab Engg (India) formed Tetra Tech India Ltd under a joint

venture with Tetra Tech EMI (US) to offer consultancy and engineering services in

environment, energy, and infrastructure. Engelhard Environmental Systems (India) Ltd.,

a joint venture of U.S.-based Engelhard Corporation and India-based UCAL Fuel

Systems Ltd., has started production at India's first auto-emission catalyst plant. Foreign

companies have also opened subsidiaries in India to take advantage of lower cost of

manufacturing there. Companies like Pentair Water India Ltd., Hindustan Dorr-Oliver

Ltd., IRG Systems South Asia Ltd., Acres International and Montgometry Watson

Consultants India Private Ltd. have opened subsidiaries in India in producing

environmental products (Singh 2004a).

An increasing number of Indian companies are seeking expertise in the EGS sector from

other OECD countries. They have been receiving good responses from companies in the

US, Germany, Netherlands, Japan, Italy, and Canada. Several European and US players

have already established their presence and market share through partnerships with

Indian firms. These companies are setting up shops considering not only the domestic

market but also the cheap and trained manpower.

A few big Indian engineering companies like Thermax Ltd, Engineers India Ltd, and

BHEL (Bharat Heavy Electrical Ltd) offer services and equipment as part of turnkey

consulting services. Of late many Indian companies have entered into joint ventures with

26

companies and some US companies have also started setting up wholly owned

subsidiaries after the government permitted 100% FDI for equipment manufacturing and

for consulting/management services in the sector.

U.S. suppliers of environmental products and services have found India to be a receptive

and profitable market in recent years. As India globalizes its economy and struggles to

cope with environmental concerns exacerbated by its high population growth and

urbanization, U.S. solution providers are discovering increasing opportunities.

Foreign Affiliation in the Indian Environment Industry and Selected Environmental Joint

Ventures are furnished in Table 3 & 4.

Table 3. Foreign Affiliation in the Indian Environment Industry

Indian Company Foreign Partner

General Electric Company of India, Ltd American Air Filter International SA

Paramount Pollution Control Pvt. Ltd. Anderson

Flakt India ABB Environmental Services

Hindustan Development Corporation Ltd. C-E Air Preheater Combustion Eng.

Thermax Limited Babcock & Wilcox, USA,

General Electric Environmental Services, Inc.

Saraswato Omdistroa; Sumdocate Smith & Loveless

Humphreys & Glasgow Ltd. Jacobs Engineering Ltd.

27

Source: Sawhney, Aparna and Chanda, Rupa (May 2003) ―Trade in Environmental

Services: Opportunities and Constraints‖ Working Paper No. 102, Indian Council for

Research on International Economic Relations (ICRIER), New Delhi, p. 58.

Table 4. Selected Environmental Joint Ventures

Company Foreign partner

Vestas RRB India Limited

Tata BP Solar India Ltd.

Suzlon Energy Ltd.

BHEL-GE Gas Turbine Services

Flakt India Ltd.

Kirloskar Electric Ltd.

Hindustan Development Corporation

Ltd.

Vestas Wind System A/S, Denmark

BP SOLAR (a wholly owned subsidiary of the

erstwhile British Petroleum), the UK

Sudwind Energie, Germany

General Electric, the US

ABB Environmental Services

Wind Energy Group, UK; NEPC, India

C-E Air Preheter Combustion Engineering

28

Paramount Pollution Control Ltd.

Thermax Ltd.

Humpherys & Glasgow Ltd.

Anderson, the UK

Babcock & Wilcoz, US, General Electric

Environmental Services, Inc.

Jacobs Engineering Ltd.

Source: Singh, Sandeep, ―Trade Preferences and Growth of Environmental Industry:

Issues and Implications for India‖, Indian Journal of Economics & Business, Vol. 3,

No.2, 2004, p. 297.

4.0 Challenges and Opportunities for India

The market for environmental services in developing countries such as India has been

growing due to increased environmental regulations, urbanization, and industrialization.

In 2001, about 28% of the billion plus Indian population (about 285 million) were living

in cities and the proportion of urban population is expected to further increase to 40% by

2021. Moreover, enhancement in the set of domestic environmental regulations,

liberalization and increased private participation in municipal activities during the last

decade has increased opportunities for trade in environmental services.

An attempt has been made in this section to examine the import export structure of

environmental goods of India as per APEC List for five years i.e. from 1998-99. Despite

the presence of a large number of domestic players and setting up of many joint ventures

29

with foreign companies to cater to the demand, a large number of environmental goods

are required to be imported into the country. Indian imports in this category are quite

significant as compared to exports. Moreover, imports exceed exports in almost all the

items for all the five years i.e. on continuous basis except a few items. As can be seen

from Annexure 1, India faces deficit in the balance of trade in 84 items out of 100

environmental products traded by India. (Based on author‘s own analysis of data

downloaded).

Major export and import destinations of Indian environmental goods have also been

identified in Annexure 2. US, EU, UK, Germany and in some cases Japan are the major

developed countries where environmental goods are exported. For most of the items

major export destinations include countries like Sri Lanka, Puerto Rico, Greece, Algeria,

Iraq, Iran, Nigeria, Nepal, Laos, Trinidad and Tobago, Qatar, Malawi, Zimbabwe,

Malaysia, Yemen, Myanmar, Niger etc. A great fluctuation of major export destination

from year to year has been noticed. For example in 2002 the export of 902810 (Gas

Meters) to Egypt was very small while in 2003 Egypt became the major destination for

Indian export for the same product. India imports from many destinations, but Germany

and USA are the major countries from where most of the commodities are being

imported.

The sub-total of the last five years imports and exports of environmental goods on the

basis of the APEC list made in Annexure 1A reveals that percentage of these goods in

total exports and in total imports is 0.01 % and 0.02 % for the last few years, which is

30

very insignificant. The growth rate (compound annual growth rate (CAGR) from 1998 to

2003) of Indian exports and imports of environmental goods has been calculated & items

have been ranked accordingly in Annexure 4. Analysis of 100 environmental goods

considered here reveals that although the rate of growth is positive for 83 export items,

the rate of growth is not very significant and less than 1 in 82 products. The number of

items in which the rate of growth is positive is much more for imports as compared to

exports. The same way that the rate of growth of imports is positive for more than 60

items as can be seen from Annexure 3.

Revealed Comparative Advantage Index has been calculated (formula given after the

endnotes) for identifying high export potential environmental products. This has been

done in two ways. First, these export products have been ranked in terms of growth and

the Revealed Comparative Advantage (RCA) of the top 20 products has been calculated

(Annexure 6). It is found that for those products India does not have comparative

advantage. But, then export items have been ranked according to value in 2002 and RCA

has also been calculated for those top 20 export products (Annexure 5). The analysis

reveals that India has comparative advantage in 4 products only viz other centrifugal

pumps, other instruments for measuring and checking electrical quantities excluding

electricity meters and other refractory ceramic goods.

As has been already mentioned, trade balance of India is negative for 84 environmental

products. India has comparative advantage in only 4 products among our top 20 exported

products in terms of value. Again the tariff data shows that our tariff rate is much higher

31

than the corresponding tariff rate of developed countries. That means if India reduces

tariffs of the environmental products as demanded by the developed countries, it will go

against India‘s terms of trade.

4.1 Multiple use and customs policy

For customs policy purposes and trade nomenclatures, a good is defined and assigned to a

product code according to its physical characteristics: e.g. size, material, principal inputs.

However, in investigating environmental goods interest revolves around how the product

is to be used, which is quite difficult given the possible multiple uses. In narrower

definitions there are also problems in determining the contents of a list of ‗environmental

goods‘. The most serious concern is the multiple uses of environmental products. For

example, separating harmful waste products from the output stream calls for a centrifuge.

Yet centrifuges have a host of industrial uses, which are not necessarily environmental.

An attempt is made to examine these goods on the basis of their use. The list of goods

which have more than one use is given in Annexure 7. There are many items in the list

that are not predominantly used for environmental purposes. In fact, there are many

general industrial types of equipment, which may or may not have any use at all for

environmental purposes. The list includes equipment with multiples uses such as pumps,

condensers, millimeters and refractory bricks. Therefore, duty reduction on such general

industrial items will also have significant ramifications for other sectors of industries like

manufacturers of fans, pumps, and scientific laboratory equipment (Singh 2004a).

32

4.2 Reduction v/s elimination of barriers

Developing countries are apprehensive that any indiscriminate tariff reduction would

increase their deficit. In the identified goods and services what level of elimination or

reduction should be appropriate given India‘s trade interests as well possible

environmental benefits needs to be analysed carefully.

Data on customs tariffs for environmental goods as per the APEC List has been compiled

for the years 2003-04 and 2004-05. It further reveals that customs tariffs on

environmental goods in India have been revised in a downward direction. It reveals that

only in the case of commodity no. 230210 (of maize (corn)) the rate of duty remained

unchanged at 30% in 2004-05. For the majority of environmental goods tariffs in the

previous year were 25%. While in 73 items the tariff has been reduced from 25% to 15%,

for 6 products this has been reduced to 10% from the earlier level of 25%. For 19

products the tariff has been pegged at 10% in 2004-05 from 30% in 2003-04. For product

No. 854140 (photosensitive semi-conductor devices, including photovoltaic cells whether

or not assembled in modules or made up into panels; light emitting diodes) and 902610

(for measuring or checking the flow or level of liquids), 902620 (for measuring or

checking pressure) the tariff was 15% in the previous year while these have become free

in this year. Some products viz 902680 (other instruments or apparatus), 902720

(Chromatographs & Electrophoresis Instrument), 902750 (other instruments and

apparatus using optical radiations (UV, visible, IR)) and 902780 (other instruments and

apparatus) the duty has been reduced to zero from the 10% tariff obligation of previous

year. For the product 902690 (Parts & Accessories of Instruments/Apparatus of Heading

33

9026) the tariff was merely 5% in 03-04 and now it has become duty free. So, currently

for 92 items India has tariff of 15%, for only 6 items it has 10% duty and for 9 items now

India has removed the tariff barrier.

Indian industry‘s feedback on tariff reduction is as follows:

1. Tariff reduction would provide more choice to the users of these types of

equipment. In many cases, these equipments are used as inputs for pollution

control systems and projects carried out by the environmental industry.

2. Tariff reduction in the case of stand alone equipments wherein several

components are imported from other countries may lead to a tariff structure with

high tariff anomalies where duty on components would be higher than on finished

goods.

3. Reasonable import tariffs are often incentives for foreign investors to set up their

production base in India, especially in a fast growing area like environmental

management equipments. Extremely low or zero tariffs might discourage

companies to make such investment decisions and adversely affect procurement

of more local components. With a drastic reduction in tariffs, foreign companies

will prefer to export goods from their own countries rather than investing in India.

4.3 Environmentally Preferable Products (EPPs)

Environment and ecology occupy a prominent place among the key focal issues faced by

the world today. EPPs are generally described as products that, from a life-cycle

34

perspective, cause significantly less ‗environmental harm‘ than alternative products that

serve the same purpose (UNCTAD, 1995). In an era of degenerating environment, efforts

are on to produce 100% Eco-friendly textiles where even the cotton will be grown

without chemical fertilizers. This is already being done in India in the form of Ponduru

Khadi which is produced from wild varieties of cotton found in the mountain terrain of

the Eastern part of Andhra Pradesh, in the South of India. India, like other developing

countries, might have an advantage through the inclusion of such products from the list of

environmental goods, provided such classification is not based on non-product related

process and production methods (npr-PPM).

India has indicated its support for the inclusion of environmentally friendly natural

products of export interest such as jute, coir, rattan, handloom products, handloom

furnishing materials, textiles & clothing made using natural dyes, non timber forest

products and bamboo in the list of environmental goods. These products are natural,

biodegradable, and substitutes for other goods that adversely affect the environment, for

example, jute as a substitute of plastic.

Khadi products can also be included in this category. Khadi is defined as a coarse

homespun cotton cloth made in India. Khadi is acknowledged as one of the coolest and

most comfortable fabrics ever known. Since Khadi deals in natural fibers viz. cotton, silk

and wool only, spun and woven in natural environment, it can boast of being 100%

natural, unlike handloom and mills which receive cotton yarn, blended with some

regenerated cellulose fibres. Khadi dyed in Natural dyes also makes a perfect

35

combination for a green fabric. Some more items which can be of interest for India are

furnished in Annexure 8.

4.4 India’s Export Potential for Environmental Services

The privatization and liberalization of environmental markets promises the standard free

trade benefits to countries based on individual comparative and competitive advantage of

providing environmental services. To quote Indian Council for Research on International

Economic Relations (ICRIER) Research Paper by Aparna Sawhney and Rupa Chanda,

―developing countries like India have the scope of specializing in labour-intensive

environmental services, including skilled segments like environmental consulting,

auditing, analysis, and training.‖

Indian environmental service providers have emerged most significantly in two areas:

first, environmental services in turnkey projects (e.g. integrated engineering services in

energy equipment); and second, environmental support services such as consulting,

environmental impact assessment, auditing, and training (including ISO 14001). There

are also a few companies, which have been specializing in composting of solid waste and

waste to energy services.

Large Indian environmental equipment firms offering accompanying environmental

services have been exporting equipment to Asian, Middle Eastern, and African markets.

They have also begun to explore niche markets in the environment sector within

36

industrialized countries, to boost exports and also to nurture future partnerships and

alliances for technology solutions.

New investment and expansion in the environmental services sector in developing

countries can provide employment opportunities for unskilled as well as skilled labour, as

some of the environmental segments are labour intensive (e.g. waste management,

sanitation, consulting, training, etc). Moreover, since environmental services are typically

provided in conjunction with other products or services, as the environmental services

sector expands so would new demand be generated in other sectors including,

engineering and design, construction, research and development, training, consulting

(Sawhney 2003).

The environmental support services segment constitutes a relatively small share in the

global environmental services industry, and is declining in developed countries. In

developing countries, however, the demand for these services is on the rise as witnessed

within India. Since the environment markets in the OECD countries are quite mature and

saturated, India‘s export potential in this sector is primarily to developing countries,

where the demand for environmental services is growing. Indian environmental service

providers could specialize in services in regions where there are similarities in ecological

and economic conditions. Thus India has opportunities in this segment in some

developing countries in South Asia, Africa, and the Middle East, where environmental

support services are increasingly in demand (Sawhney & Chanda 2004). Indeed, India

has exported environmental consulting services, including training in ISO 14000 and

37

auditing, to countries including Nepal, Sri Lanka, Nigeria, Egypt and Qatar (Sawhney

2003). Several Asian countries, including India, have been the focus of the US

environment industry, given the growth prospects of their domestic environment sector,

under the United States-Asia Environmental Partnership (US-AEP). In the environmental

exports to Asian countries Japan is the leader (Ibid.).

The important service sectors for India are water and wastewater management, solid

waste services, protection of ambient air, remediation and ancillary services. The

privatization and liberalization process in this sector must ensure a healthy balance

between economic efficiency, social equity, and environmental sustainability.

4.5 Clean Development Mechanism (CDM)

The Clean Development Mechanism (CDM) of the Kyoto Protocol, aimed at reducing the

greenhouse gas emissions of industrialized countries, could become an important source

of new finance for projects in developing countries. Developed country firms can begin

meeting their reduction targets by funding emission reduction projects in the developing

world and contribute to sustainable development in the process (UNCTAD 2005). The

CDM, creates "win-win-win" synergies for the sustainable development of developing

countries, by encouraging additional FDI flows to complement local financing of projects

that contribute to local sustainable development. Brazil, China and India have the greatest

potential for the new mechanism. Brazil was one of its pioneers, having proposed the

initial concept and hosted the first such project. India has developed more CDM

methodologies and project proposals than any other country (Ibid.)

38

Countries that rely heavily on coal for their energy needs and/or countries where the

major energy users (e.g., power plants and heavy industries) are relatively energy-

intensive and inefficient would have the greatest potential for large and cheap CDM

projects. By this token, both China and India can expect a relatively large share of the

CDM market – together, they are projected to account for about 60 per cent of non-sink

CDM projects (47 per cent and 12 per cent respectively). It is, therefore, certain that

whatever the nature and scope of CDM projects that emerge globally, major coal-based

GHG emitters such as China and India will play an important role (Gupta 2003).

Despite near-term uncertainty about the size of the CDM market and the price of

Certified Emissions Reductions (CERs), it is very likely that India will be a major player.

This is also true in the long run where India along with other developing countries may

take on some commitments and where emissions trading may be an important component

of the GHG abatement architecture. While there are several issues of concern such as the

impact of technical progress in abatement technologies on the gains from emissions

trading for India, on the whole it may stand to benefit from participating in such trading.

Furthermore, there are good prospects of convergence across CDM and emissions trading

both in a short-run and in the long-run (Ibid.).

Domestic companies produce much of what India needs by way of EGS. But their

expertise is, however, limited in many cases and around 40% of the requirements are

fulfilled by imports. However, most of the demand forecasts are based on large

39

manufacturing units‘ requirements. India has an estimated three million small-scale

industrial units, which account for over 40% of the industrial output in terms of value, but

their share of industrial pollution is disproportionately high. Smaller industries have the

added burden of using obsolete, inefficient production processes, which are typically

more polluting. In the future if these companies have to improve their environmental

compliance, the demand for financial support will become very high.

Indian environmental companies face significant hurdles, which not only deter them from

exporting their products but also deter them from catering to the domestic demand. Some

of the problems that Indian companies face include:

shortages of essential environmental goods such as membranes, activated carbon,

resins, and other components;

limited R&D capability for technological improvements; limited servicing

capability;

limited access to available technologies and potential foreign partners;

high capital costs for expansion;

limited domestic market in sub sectors;

lack of servicing and marketing network in other countries.

There are many smaller firms that specialize in sector-specific equipments such as air

pollution monitoring, wastewater treatments, etc. Several smaller companies offer

environmental consulting services related to environmental management systems

facilitation, environmental audits, environmental impact assessment and development of

environmental standards. Trade liberalization through the WTO is likely to create many

40

challenges for smaller domestic companies with one or two product lines. Their products

cannot compete with technically superior products from large companies. Moreover, they

are unable to tap overseas markets in many cases due to the absence of marketing and

servicing networks.

Environmental services in R&D, design, and technology, which are an integral part of the

environment equipment sector, are relatively poor in India. For instance, companies like

Bharat Heavy Electricals Limited (BHEL) focus mostly on product-application research

rather than basic research, and thus basic technology for equipment manufacture like

gasifiers and fuel cells need to be imported.

Indian firms offering environmental services do so as part of the equipment supply,

especially for air pollution management solutions in power plants and vehicular pollution

abatement. However, the Indian environment industry needs the technology (not

equipment per se) and state of the art design for pollution management equipment, since

the industry is capable of manufacturing the hardware domestically. Given the growth of

Indian economy and high rate of urbanization, India needs massive capital to build its

environmental infrastructure, particularly for water supply and treatment, sewage

treatment, and solid waste management. The onus of providing environmental

infrastructure services is with the Urban Local Bodies. However, financial constraints of

these bodies have been a major problem towards ensuring adequate provisions of services

such as sewage, sanitation, cleaning of roads, and water supply.

41

In the large projects funded by multilateral organizations, there are several conditions for

eligibility that keep most of the Indian companies out of these projects. These strict

eligibility criteria include past record, experience, turnover, product specifications, and

third party guarantees Indian companies have to face several constraints due to their

limited R&D capability for technological improvements, limited servicing capability, and

high capital costs for expansion. Most of these companies being smaller do not have large

marketing networks.

5.0 Conclusions and Recommendations

The picture that emerges of the environment industry is one of an integrated, technology-

intensive, globalised industry, which predominates principally in developed countries.

The industry has largely been driven by enforcement of environmental regulations, and in

this respect, developing countries are struggling to catch up.

Developed countries, particularly US, EU and Japan are the largest producers, consumers

and exporters of EGS. Developing countries are net importers of EGS. However, the EGS

sector in developing countries is growing at a much faster rate than in developed

countries. This makes developing countries markets important.

Developed countries are pushing for the opening up of the EGS sector since they perceive

different advantages from the opening of the EGS sector for developing countries. For

example, in the first submission to the Committee on Trade and Environment Special

Session and fifth submission to the NAMA negotiating group on 17th

February 2005, the

42

European Communities wished to liberalize trade in EGS to bring economic,

environmental and developmental benefits. They argued that in all countries, changes in

consumption patterns and demand for greener products should be encouraged by opening

up markets to environmental products from both developed and developing countries.

Liberalizing trade in EGS would support and reward producers in all countries that invest

in environmentally friendly practices, cleaner technologies and equipment with a view to

meeting environmental objectives, related responsible corporate policies and/or

consumers‘ demand. Supporting the development of environmental markets would also

foster technological innovation and job creation in a dynamic industry. Moreover, for

developing countries, it should help make available cheaper environmental technologies

and related services needed to meet their developmental and environmental objectives,

while satisfying basic human needs, such as improved access to safe water, sanitation or

clean energy.

A note by the UNCTAD Secretariat on EGS in Trade and Sustainable Development

reveals that ―direct trade gains from liberalization in EGS may flow largely to the more

advanced WTO Members, which stand to benefit from improved access to expanding

EGS markets in developing countries. Efforts should be made to increase the potential

for direct trade gains for developing countries‖ (WTO 2004).

When WTO members are negotiating commitments in their respective schedules, the aim

should be two-fold: (a) to liberalise market access in sectors and modes of supply of

export interest to developing countries; and (b) to strengthen developing countries‘

43

capacity in domestic services (including access to technology) and improve developing

country access to information networks.

As a negotiation strategy for EGS, developing countries should not be wary of making

trade-offs. They may be able to advance their trade and environment agendas in the

negotiations, provided they can forward plan and co-operate amongst themselves.

Developing countries should take a two-pronged approach. They should examine the

extent to which trade liberalization may enhance the availability of EGS used to address

national environmental problems; and decide

(a) which negotiated outcomes they wish to see emerge from EGS; and

(b) how to derive real sustainable development outcomes from the result of their

negotiations.

Under the first approach, they must initially establish which pressing environmental

problems they wish to resolve through access to EGS, and second, what desired level of

market access they wish to achieve for their own EGS in foreign markets. Thereafter,

they can match these goals with the relevant products and services and demand specific

inclusion of such goods and services in the classifications to be determined in the WTO.

In the second approach, developing countries should have worked out, in advance, how

the achieved results of the negotiations will assist in providing real environmental quality

44

on the ground. For this, they must have in place plans for domestic regulation, covering

environmental protection (including, for example, environmentally sound technologies,

eco-labelling, etc.), infrastructure development, government procurement, intellectual

property rights, and in some cases, even health and sanitation. They must also have

strategies regarding international trade in order to continue to maintain their hard won

market access. This may cover issues such as dispute settlement, subsidies, TBT, SPS

measures and technical co-operation (CUTS 2004a).

Developing countries will have to fully understand their capacity-building and technical

assistance needs, in order to ensure that such assistance is well targeted and applied to

support their environmental protection and trade objectives. In this way, developing

countries may be able to achieve the ‗win-win-win‘ scenarios that are implied by the

negotiations on liberalization of EGS.

Moreover, the integrated manner in which traditional EGS are delivered is not reflected

in the way the WTO classifies such goods or disciplines trade in these goods. The

multiple uses of such goods and services (where it is unclear whether there is a clear

environmental benefit from use or delivery) may cause problems in defining and

classifying such goods and services, as well as assigning them specific HS (Harmonised

System) codes to differentiate them from other goods.

It is vital that developing countries develop both their own lists of products of export

interest including organic agricultural products or products from traditional knowledge or

45

folklore and an alternative list of environmental services in which they hold comparative

advantage.

The WTO has been focusing on the elimination of trade barriers of sustainable resources

and activities with a view to promoting the global living environment by further

liberalizing trade in environmental goods. With the reduction or, as appropriate,

elimination of trade barriers and increased trade flows, domestic purchasers will be able

to acquire environmental goods and technologies at lower costs. The savings will help

business and governments to stretch their capital investment budgets further, which could

consequently help to ensure the mutual supportiveness between the environment and the

promotion of sustainable development.

Merely tariff reduction on end-of-the-pipe pollution control equipment will not lead to

much needed technology transfer. On the other hand it may even adversely affect transfer

of technology to India. In India, the most preferred and effective route of transfer of

technology has been joint ventures. Therefore, any effort to reduce tariffs should take into

account the fact that liberalization should not become an incentive for companies of

developed nations to take a trading route rather than transferring technology to

manufacture pollution control equipment in India.

The lists proposed so far to a large extent do not cover products of interest to developing

countries. It is important to note here that the provisions and mandate of paragraph 16 of

the Doha Declaration is applicable to environmental goods. Paragraph 16 specifically

46

mandates special attention to ―products of export interest to developing countries‖ and

takes full account of the special needs and concerns of developing and least developed

countries. Therefore India should insist that the negotiations must focus on how

developing countries can derive trade gains in terms of increased exports in this sector.

The special needs also include protection of domestic industry, which is largely

comprised of small and medium enterprises. Many biodiversity-rich developing

countries, for example, have great potential for deriving commercial and developmental

benefits from environmental services provided by their ecosystems. In most cases,

however, the economic value of such services has not been established. Numerous

ongoing studies and projects focus on valuation techniques and instruments to

commercialize such services.

Developing countries may have to coordinate and communicate between trade-

negotiators and regional policy makers (trade, industry, agriculture, environmental,

municipal authorities) as well as among various national stakeholders. Some elements

which they have to consider are as follows:

In case organic products (based on whatever criteria) are negotiated as part of the

EGS mandate on an accelerated basis, then the relationship to agricultural

liberalisation modalities (export subsidies, domestic support) on non-organic products

will have to be defined.

As EGS are frequently inter-linked it may be important to coordinate market access in

both areas. For example: opening up the solid waste treatment services sector while

maintaining high tariffs and non-tariff barriers (NTBs) on waste-treatment equipment

47

may not result in meaningful market-access unless perhaps the developing country

has an adequate and competitive domestic environmental goods sector which could

supply these services.

Liberalisation of goods having multiple end-uses (including environmental uses)

requires careful consideration as it may be difficult to verify the intended ‗end-use‘

for such goods.

Tariff levels for most industrial goods are low in developed countries. NTBs may be

more important, for example labelling, subsidies, taxes. Identifying and negotiating

removal of these various NTBs will take time. This needs to be kept in mind given

the time-horizon of completing the Doha negotiations as well as any accelerated

liberalisation, if accepted, of EGS. The challenge will increase if agricultural goods

are also negotiated (Suathan 2004).

This case study of India reveals that India may not get too many advantages out of the

opening up of environmental sector in the short run. Analysis of data reveals the

following:

Environmental goods constitute a very insignificant share of India‘s total exports

and imports.

Balance of trade is also deficit for most of the items.

Major destinations for environmental goods for many items are developing

countries.

There is no consistency in their import demand.

48

India has revealed comparative advantage in only 4 items out of the top 20 export

items.

The highest growing export items do not have any revealed comparative

advantage.

India‘s tariffs are higher than developed countries on environmental goods and

reduction in tariffs may create disincentives for foreign firms to establish

subsidiaries in India.

Most of the items, which developed countries are insisting for inclusion, belong to

the category of multiple uses.

Unless the items of interest for India are included in the list of environmental

goods, India may not benefit from the liberalization of the EGS sector in the short

term. Potential benefits of liberalization of EGS will have to be examined in the

context of FDI in the long run.

India can benefit from the negotiations if the criteria for inclusion of a particular product

category or a product is based on:

(i) Use of the product/category in pollution control activities;

(ii) Dynamic comparative advantage of India in that product/category which would be

based on existing levels of import and export, size of domestic market, efficiency level of

domestic industry and prospects for future;

(iii) The degree of use in the environmental sector vis-à-vis other industrial sectors.

The project approach suggested by India may benefit developing countries because:

49

This approach is cohesive and integrated – goods and services.

It is focused and direct – to the goals of environmental objectives.

It can accommodate the changing needs of global environmental requirements.

Some of the positive measures include:

Technology transfer – with the services, leading to capacity building.

Does not affect market access schedules of the goods – does not lead to ―zero-for-

zero‖ sectoral NAMA negotiations.

It also enhances mutual supportiveness of trade and environment – Paragraph

31(iii) objective ( Kumar 2002).

50

Statistical Formulae

Revealed Comparative Advantage Index

Measures of revealed comparative advantage (RCA) can be used to help assess a

country's export potential. The RCA indicates whether a country is in the process of

extending the products in which it has a trade potential, as opposed to situations in which

the number of products that can be competitively exported is static. It can also provide

useful information about potential trade prospects with new partners. Countries with

similar RCA profiles are unlikely to have high bilateral trade intensities unless

intraindustry trade is involved. RCA measures, if estimated at high levels of product

disaggregation, can focus attention on other nontraditional products that might be

successfully exported. The RCA index of country i for product j is often measured by the

product's share in the country's exports in relation to its share in world trade:

RCAij = (xij/Xit) / (xwj/Xwt)

where xij and xwj are the values of country i's exports of product j and world exports of

product j and where Xit and Xwt refer to the country's total exports and world total

exports. A value of less than unity implies that the country has a revealed comparative

disadvantage in the product. Similarly, if the index exceeds unity, the country is said to

have a revealed comparative advantage in the product.

Compound Annual Growth Rate (CAGR)

Interest rate at which a given present value would "grow" to a given future value in a

given amount of time. The formula is -

CAGR = (FV/PV)1/n - 1

where FV is the future value, PV is the present value, and n is the number of years.

51

References

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54

Joshi, Manoj, Trade Liberalization in Environmental Goods: Indian Perspective,

available at http://r0.unctad.org/trade_env/test1/meetings/egs/PPT-INDIA-JOSHI-

Expert%20Meeting%20UNCTAD%20EGS_26-06-03.pdf

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http://www.wto.org

Robert Hamwey and others (2003) Sub-Regional Brainstorming Workshop on the Trade

and Environment Issues Contained in Paragraph 31 and 32 of the WTO Doha Ministerial

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UNCTAD/PRESS/PR/2005/010 - 15/02/05

Database

―India‘s Exports & Imports of Environmental Goods as per APEC List‖, ITC, CMIE

Database.

55

Annex 1. Trade balance of Indian Environmental Goods as per APEC List

Commodity

Code Commodity Name

Rs.Lakh Trade Balance

(in Rs lakh) in 2003 Annual

Dec-03

val

460120 Mats, matting and screens of

vegetable materials

Export 1601.41 1588.01

Import 13.4

560314 Man-Made Filmnt Wghng

>150G/Sqm

Export 165.08 -667.62

Import 832.7

591190 Other(textile products and

articles)

Export 266.56 -4132.21

Import 4398.77

690210 Refractory bricks, blocks, tiles

and similar goods containing by

weight, singly or together, more

than 50% of the elements

magnesium, calcium or

chromium, expressed as

magnesium oxide, calcium oxide

oUNIT

Export 1634.77 -6017.24

Import 7652.01

690220 Refractory bricks, blocks, tiles

and similar goods containing by

weight, more than 50% of alumina

(al2o3), of silica (sio2) or of a

mixture of compound of these

products.

Export 5161.49 4620.49

Import 541

690290 Other refractory bricks, blocks,

tiles etc.

Export 784.21 -5075.65

Import 5859.86

690310 Other refractory ceramic goods

containing by weight more than

50% of graphite or other forms of

carbon or of a mixture of these

products.

Export 1140.93 947.44

Import 193.49

690320 Other refractory ceramic goods

containing by weight more than

50 % of alumina (aluminium

oxide) or of a mixture or

compound of alumina and of

silica (silicon dioxide)

Export 986.64 -791.26

Import 1777.9

690390 Other refractory ceramic goods Export 2772.16 -243.57

Import 3015.73

690919 Other ceramic wares for

laboratory etc.

Export 203.7 -786.7

Import 990.4

56

701710 Laboratory glasses etc of fused

quartz or other fused

Export 34.86 -35.01

Import 69.87

701720 Laboratory

hygienic/pharmaceutical

glassware of other glass having a

linear coeffcient of expansion not

exceeding 5X10 -6/ Kelvin within

a temperature between 0 degree C

to 300 degree C.

Export 3.73 -211.11

Import 214.84

701790 Other laboratory,

hygienic/pharmaceutical

glassware

Export 3075.15 1978.52

Import 1096.63

840410 Auxlry Plnt Usd with Boilrs of

8402/8403

Export 2083.83 1718.81

Import 365.02

840420 Condensers for Steam/other Vpr

Powr Units

Export 249.74 -554.97

Import 804.71

840510 Produced gas or water gas

generators with or without their

purifiers acetylene gas generators

and similar water process gas

generators with or without their

purifiers

Export 533.25 -433.4

Import 966.65

840991 Suitable for use solely or

principally with spark-ignition

internal combustion piston

engines.

Export 25206.44 6877.49

Import 18328.95

840999 Other(parts suitable for engines) Export 38412.71 -5029.01

Import 43441.72

841011 Hydraulic Turbines & Water

Wheels of a Power not Exceeding

1000 Kw

Export 221.63 221.63

Import

841012 Of a power not exceeding 1,000

kW but not exceeding 10,000 kW

Export 50.34 50.34

Import

841013 Of a power exceeding 10,000 kW Export 20.95 20.95

Import

841090 Parts of Hydrlic Turbnes incl.

Regulators

Export 606.94 -641.83

Import 1248.77

841360 Other rotary positive displacement

pumps

Export 878.19 -1006.27

Import 1884.46

841370 Other centrifugal pumps Export 13830.45 6286.27

Import 7544.18

57

841381 Pumps Export 1646.12 -13080.31

Import 14726.43

841410 Vacuum Pumps Export 545.12 -2738.67

Import 3283.79

841459 Other(air or vacuum pumps) Export 1104.89 -4216.74

Import 5321.63

841480 Other(air or vacuum pumps) Export 3623.35 -15622.17

Import 19245.52

841780 Other Furnaces & Ovens Export 261.6 -2384.51

Import 2646.11

841790 Parts of Non Electric Furnaces

Ovens etc

Export 512.42 -1223.87

Import 1736.29

841919 Instantaneous or storage water

heaters, non-electric - Other

Export 188.16 -211.44

Import 399.6

841940 Distilling or rectifying plant Export 411.89 -10205.89

Import 10617.78

841950 Heat exchange units Export 1521.91 -2073.19

Import 3595.1

841960 Machinery for Liquefying

Air/other Gases

Export 335.67 -1205.17

Import 1540.84

842119 Centrifuges, incl. centrifugal

dryers, Other

Export 2527.8 -184.62

Import 2712.42

842121 Centrifuges, incl. centrifugal

dryers, for filtering or purifying

water

Export 1513.42 -245.84

Import 1759.26

842129 Centrifuges, incl. centrifugal

dryers, other

Export 835.7 -5161.73

Import 5997.43

842139 Filtering or purifying machinery

and app. for gases, other

Export 480.36 -6379.24

Import 6859.6

842191 Parts, of centrifuges, incl.

centrifugal dryers.

Export 678.5 -657.27

Import 1335.77

842199 Parts, other Export 3847.08 -12188.33

Import 16035.41

842220 Machinery for Clng/Dryng

Botls/other Cntnrs

Export 664.88 121.04

Import 543.84

842833 Other Continuous Action Elevatrs

& Conveyrsfor

Goods/Materials,Belt Type

Export 1.35 -474.99

Import 476.34

843680 Other machinery Export 566.03 512.87

Import 53.16

58

846291 Hydraulic presses Export 1156.19 -1088.3

Import 2244.49

847290 Other office machines Export 2008.91 -16770.12

Import 18779.03

847410 Sorting, screening, separating or

washing machines

Export 294.93 -1655.44

Import 1950.37

847432 Mchns for Mxng Mnrl Substncs

with Bitumen

Export 64.47 -7361.04

Import 7425.51

847982 Mxng, Kneadng, Crushng,

Grndng, Screng, Siftng,

Homogensng, Emulsifyng/ Stirrng

Mchns

Export 1149 -2267.35

Import 3416.35

847989 Other ( machines or mechanical

appliances)

Export 19150.42 -37526.68

Import 56677.1

847990 Parts Export 31927.81 12449.19

Import 19478.62

850231 Other generating sets; wind

powered

Export 143.55 -495.39

Import 638.94

850590 Electro magnets; chucks, clamps

& similar devices

Export 1807.06 -1735.89

Import 3542.95

851410 Resistance heated furnaces &

ovens

Export 91.11 -179.1

Import 270.21

851420 Induction/dielectric furnaces &

ovens

Export 378.35 282.03

Import 96.32

851430 Other furnaces and ovens Export 870.62 -217.97

Import 1088.59

851490 Parts of articles of industrial or

laboratory electric (including

induction or dielectric) furnaces

and ovens; other industrial or

labortatory induction or dielectric

heating equipment

Export 577.53 -744.22

Import 1321.75

854140 Photosensitive semi-conductor

devices, including photovoltaic

cells whether or not assembled in

modules or made up into panels;

light emitting diodes

Export 33239.71 26338.09

Import 6901.62

854389 Other nes Export 2762.48 -34892.8

Import 37655.28

890710 Invlatable Rafts Export 40.96 -116.96

Import 157.92

890790 Other floating structures Export 24.35 -199.17

59

Import 223.52

901540 Photogrmtrcl Survying Instrmnts

& Applncs

Export -405.9

Import 405.9

901580 Othe instruments and appliances. Export 794.42 -9206.75

Import 10001.17

901590 Parts & Accessores of

Surveying,Phtogrmcl,Hydrogrphic

Instrumnts etc. excl. Compasses

Export 1142.41 -1192.93

Import 2335.34

902229 Apprts Bsd On Use of

Alpha,Bta/Gma Radtns for other

Usesincl Rdogrphy & Rdothrpy

Apprts

Export 199.58 -1149.86

Import 1349.44

902290 Other, including parts and

accessories.

Export 12608.93 -7810.79

Import 20419.72

902511 Liquid-filled, for direct reading. Export 273.56 -1.84

Import 275.4

902519 Other ( hydrometers and similar

loating instruments)

Export 134.02 -811.51

Import 945.53

902580 Other instruments Export 44.4 -1218.42

Import 1262.82

902590 Parts & Accssrs of Instruments of

Hdg 9025

Export 209.51 -1321.23

Import 1530.74

902610 For measuring or checking the

flow or level of liquids.

Export 2674.17 -4058.64

Import 6732.81

902620 For measuring or checking

pressure.

Export 1211.68 -4492.09

Import 5703.77

902680 Other instruments or apparatus. Export 208.93 -4167.91

Import 4376.84

902690 Parts&Accssrs of Insrmnts/Apprts

of Hdg9026

Export 712.36 -6083.23

Import 6795.59

902710 gas or smoke analysis apparatus. Export 643.21 -4731.64

Import 5374.85

902720 Chromatographs &

Electrophoresis Instrmnt

Export 24.13 -12663.7

Import 12687.83

902730 Spectrometers, spectro-

photometers and spectographs

using optical radiations (UV,

visible, IR)

Export 118.69 -13201.97

Import 13320.66

902740 Exposure Meters Export -9.43

Import 9.43

902750 Other instruments and apparatus

using optical radiations (UV,

Export 178.77 -2133.64

Import 2312.41

60

visible, IR)

902780 Other instruments and apparatus. Export 523.94 -28704.57

Import 29228.51

902790 Microtomes; parts and

accessories.

Export 315.46 -14237.41

Import 14552.87

902810 Gas Meters Export 567.35 142.7

Import 424.65

902820 Liquid Meters Export 23.46 -133.94

Import 157.4

902830 Electricity Meters Export 2171.73 -7676.6

Import 9848.33

902890 Parts and Accessories of Gas Lqd

or Electricty Supply or Production

Meters

Export 185 -3284.77

Import 3469.77

90301000 Instrument and Apparatus for

Measuring or Detecting Ionising

Radiation

Export 544.85 -477.69

Import 1022.54

903020 Cathode-ray oscilloscopes and

cathode-ray oscillographs.

Export 27.95 -2086.01

Import 2113.96

903031 Multimeters Export 127.82 -637.3

Import 765.12

903039 Other ( oscilloscopes and other

instruments for measuring or

checking electrical quantities

excluding meters)

Export 5681.63 -839.07

Import 6520.7

903083 Other with a recording device, nes Export 26.97 -907.8

Import 934.77

903089 Other ( oscilloscopes and other

instruments for measuring or

checking electrical quantities

excluding meters)

Export 107.46 -5960.91

Import 6068.37

903090 Parts and accessories. Export 1340.63 -4319.31

Import 5659.94

903110 Machines for Balancing

Mechanical Parts

Export 157.59 -687.08

Import 844.67

903120 Test Benches Export 165.23 -2042.03

Import 2207.26

903130 Profile Projectors Export 17.27 -2315.97

Import 2333.24

903180 Other Msrng&Checking

Instrmnts,Applncs&Mchns

Export 615.76 -48691.18

Import 49306.94

903190 Parts and Accessories of Instrmnts

of 9031

Export 749.43 -14732.15

Import 15481.58

61

903210 Thermostats Export 277.75 -1739.97

Import 2017.72

903220 Manostats Export 0.11 -180.55

Import 180.66

903281 Hydraulic/Pneumatic Instrumnts

& Apparatus

Export 344.05 34.27

Import 309.78

903289 Other ( automatic regulating or

controlling instruments)

Export 2710.31 -18426.77

Import 21137.08

903290 Parts and Accessories of Instrmnts

of 9032

Export 559.56 -12111.25

Import 12670.81

9033 Parts and accessories (not

specified or included elsewhere in

this Chapter) for machines,

appliances, instruments or

apparatus of Chapter 90.

Export 9971.28 -28605.07

Import 38576.35

Subtotal of Exports of

environmental goods

Export 265270.22 -418399

Subtotal of Imports of

environmental goods

Import 683669.22

Total Export of India Export 25513727.71 -4206859.77

Total Import of India Import 29720587.48

Trade Balance calculated on the basis of data extracted from Indiatrades

Annex 1A. Share of Export and Import of Indian Environmental Goods as per

APEC List

Rs.Lakh Rs.Lakh Rs.Lakh Rs.Lakh Rs.Lakh

Annual Annual Annual Annual Annual

Dec-99 Dec-00 Dec-01 Dec-02 Dec-03

val val val val val

Subtotal of Exports

of Environmental

Goods

106309.15 122241.93 179428.21 211944.11 265270.22

Percentage in Total

Export

0.01 0.01 0.01 0.01 0.01

Subtotal of Imports

of Environmental

Goods

455218.25 453225.83 489700.14 534806.43 683669.22

Percentage in Total

Import

0.03 0.02 0.02 0.02 0.02

62

Total Export 13922431.00 15902332.51 20357101.17 20901388.03 25513727.71

Total Import 17792711.00 20387535.68 23.87275.91 24519971.60 29720587.48

Share of Exports calculated on the basis of ITC data

Annex 2. Major Destinations for India's Imports and Exports of Environmental

Goods as per APEC List

Commodity

Code Commodity Name

Export

Value

2003 (Rs.

Lakh)

Major Export

Destinations

Major

Import

Destinations

460120 Mats, matting and screens of vegetable

materials

1601.41 EU, USA, UK,

Germany,

Netherlands

Viet Nam,

UAE, Japan

560314 Man-Made Filmnt Wghng >150G/Sqm 165.08 EU, Belgium,

Sri Lanka,

Puerto Rico,

UAE

Taiwan

(Taipei),

UK, China,

Hong Kong,

Italy

591190 Other (textile products and articles) 266.56 EU, USA, UAE,

Sri Lanka,

Greece

Germany

690210 Refractory bricks, blocks, tiles and

similar goods containing by weight,

singly or together, more than 50% of the

elements magnesium, calcium or

chromium, expressed as magnesium

oxide, calcium oxide oUNIT

1634.77 Malaysia, Korea

Republic

(South), Egypt,

Brazil,

Indonesia,

Algeria

Germany,

China,

Austria

690220 Refractory bricks, blocks, tiles and

similar goods containing by weight,

more than 50% of alumina (al2o3), of

silica (sio2) or of a mixture of compound

of these products

5161.49 Bangladesh, EU Germany

690290 Other refractory bricks, blocks, tiles etc. 784.21 EU, Sri Lanka,

UK, Spain

China,

Germany,

Australia,

Austria

690310 Other refractory ceramic goods

containing by weight more than 50% of

graphite or other forms of carbon or of a

mixture of these products

1140.93 Bangladesh,

Thailand,

Indonesia, EU,

Australia

Germany,

China

63

690320 Other refractory ceramic goods

containing by weight more than 50 % of

alumina (aluminium oxide) or of a

mixture or compound of alumina and of

silica (silicon dioxide)

986.64 Algeria, EU,

Egypt, Iraq,

Germany

Germany,

UK, Italy,

USA,

Taiwan

(Taipei)

690390 Other refractory ceramic goods 2772.16 Germany,

Turkey, USA,

Iran

Germany,

UK, Taiwan

(Taipei)

690919 Other ceramic wares for laboratory etc. 203.7 Ethiopia,

Nigeria, USA,

Australia

Malaysia

701710 Laboratory glasses etc of fused quartz or

other fused

34.86 Nigeria, Oman,

Brazil

Malaysia,

USA

701720 Laboratory hygienic/pharmaceutical

glassware of other glass having a linear

coeffcient of expansion not exceeding

5X10 -6/ Kelvin within a temperature

between 0 degree C to 300 degree C

3.73 Nepal, UAE China,

Singapore,

Czech

Republic,

Germany

701790 Other laboratory,

hygienic/pharmaceutical glassware

3075.15 Iraq Germany,

France

840410 Auxlry Plnt Usd with Boilrs of

8402/8403

2083.83 USA, Malaysia,

Taiwan

Belgium

840420 Condensers for Steam/other Vpr Powr

Units

249.74 Thailand,

Colombia, USA,

Pakistan

Germany

840510 Produced gas or water gas generators

with or without their purifiers acetylene

gas generators and similar water process

gas generators with or without their

purifiers

533.25 Iran Germany,

USA, UK,

Poland,

France

840991 Suitable for use solely or principally

with spark-ignition internal combustion

piston engines

25206.44 USA, Germany Japan, Korea

Republic

(South),

Germany,

UK

840999 Other(parts suitable for engines) 38412.71 USA, Germany,

UK

USA, UK,

Japan

841011 Hydraulic Turbines & Water Wheels of

a Power not Exceeding 1000 Kw

221.63 Iraq Japan, USA

841012 Of a power not exceeding 1,000 kW but

not exceeding 10,000 kW

50.34 Laos Japan

841013 Of a power exceeding 10,000 kW 20.95 USA Korea

Republic

(South)

841090 Parts of Hydrlic Turbnes incl.

Regulators

606.94 Viet Nam,

Germany, USA

Norway

64

841360 Other rotary positive displacement

pumps

878.19 Germany, USA,

UAE, UK

Germany,

USA, Japan,

Switzerland,

UK

841370 Other centrifugal pumps 13830.45 UAE, Germany,

USA, Iraq,

Egypt

Japan,

Germany,

Singapore,

Netherlands,

France, USA

841381 Pumps 1646.12 Germany, USA,

Taiwan, Saudi

Arabia, UAE

USA,

Germany,

Japan, UK

841410 Vacuum Pumps 545.12 France, USA,

UK, Malaysia

Germany,

Italy, USA,

Korea

Republic

(South)

841459 Other(air or vacuum pumps) 1104.89 USA USA,

Germany,

China, Italy

841480 Other(air or vacuum pumps) 3623.35 Iraq, Korea

Republic (South)

USA, Japan

841780 Other Furnaces & Ovens 261.6 Thailand Japan,

Canada,

Germany,

Netherlands

841790 Parts of Non Electric Furnaces Ovens

etc

512.42 China, Sri

Lanka,

Bangladesh,

Nigeria

Germany,

Australia,

Italy, Japan,

France

841919 Instantaneous or storage water heaters,

non-electric - Other

188.16 Nigeria,

Indonesia,

Turkey,

Malaysia

USA, China,

Australia,

Germany,

Switzerland

841940 Distilling or rectifying plant 411.89 Mexico, Nigeria,

Iran, Trinidad

and Tobago,

Bangladesh

Germany

841950 Heat exchange units 1521.91 Saudi Arabia,

Qatar, Nigeria,

Thailand

USA, Italy,

Germany,

UK, France

841960 Machinery for Liquefying Air/other

Gases

335.67 Bangladesh,

Oman, Nigeria

Russia,

Switzerland,

Netherlands,

France

842119 Centrifuges, incl. centrifugal dryers, 2527.8 USA, Oman, Germany,

65

Other Italy USA

842121 Centrifuges, incl. centrifugal dryers, for

filtering or purifying water

1513.42 Malaysia, USA,

Iran, Nigeria

USA,

France,

Japan,

Germany

842129 Centrifuges, incl. centrifugal dryers,

other

835.7 Korea Republic,

USA

USA,

Germany,

Japan

842139 Filtering or purifying machinery and

app. for gases, other

480.36 Saudi Arabia,

USA, Sri Lanka

USA,

Thailand,

South

Africa,

Germany

842191 Parts, of centrifuges, incl. centrifugal

dryers

678.5 Germany, USA Germany,

USA, South

Africa,

Sweden

842199 Parts, other 3847.08 USA, Oman,

Indonesia

USA,

Germany,

UK, Japan

842220 Machinery for Clng/Dryng Botls/other

Cntnrs

664.88 Qatar, Germany,

UAE, Nigeria

Italy

842833 Other Continuous Action Elevatrs &

Conveyrsfor Goods/Materials,Belt Type

1.35 Zimbabwe Japan

843680 Other machinery 566.03 Malawi Italy, USA,

Germany,

Japan

846291 Hydraulic presses 1156.19 South Africa,

Greece, Nigeria,

UAE, Korea

Republic

(South), Iran

Italy, Korea

Republic

(South),

Germany,

Taiwan

(Taipei)

847290 Other office machines 2008.91 Japan, UAE,

Indonesia, Iran,

Italy

UK, USA,

Germany

847410 Sorting, screening, separating or

washing machines

294.93 Iran Germany,

UK

847432 Mchns for Mxng Mnrl Substncs with

Bitumen

64.47 Malaysia Korea

Republic

(South)

847982 Mxng,Kneadng,Crushng,Grndng,Screng,

Siftng,Homogensng,Emulsifyng/Stirrng

Mchns

1149 Bangladesh Germany,

France,

USA,

Switzerland

66

847989 Other (machines or mechanical

appliances)

19150.42 USA, UAE,

Nigeria,

Indonesia,

China,

Bangledesh

Germany

847990 Parts 31927.81 USA, UK,

Germany, Italy,

Nigeria

Germany,

USA, Japan,

Philippines,

UK

850231 Other generating sets; wind powered 143.55 Japan, Malagasy Germany,

Denmark

850590 Electro magnets; chucks, clamps &

similar devices

1807.06 Hong Kong,

USA, Italy,

Singapore

Japan

851410 Resistance heated furnaces & ovens 91.11 Germany,

Norway, UAE

Japan,

France, USA

851420 Induction/dielectric furnaces & ovens 378.35 Libya, UAE,

Iran,

Bangladesh, Sri

Lanka

Germany

851430 Other furnaces and ovens 870.62 UAE, Saudi

Arabia

Germany,

USA, UK,

China

851490 Parts of articles of industrial or

laboratory electric (including induction

or dielectric) furnaces and ovens; other

industrial or labortatory induction or

dielectric heating equipment

577.53 Bangladesh,

UAE, USA, UK,

Sri Lanka

USA,

Germany,

UK,

Switzerland

854140 Photosensitive semi-conductor devices,

including photovoltaic cells whether or

not assembled in modules or made up

into panels; light emitting diodes

33239.71 Hong Kong,

Germany, USA,

Netherlands,

Spain

Australia,

USA

854389 Other nes 2762.48 USA, Japan,

Israel

Israel, USA,

Japan

890710 Invlatable Rafts 40.96 UAE Switzerland,

Singapore

890790 Other floating structures 24.35 Singapore, Sri

Lanka, UAE

Singapore,

USA

901540 Photogrmtrcl Survying Instrmnts &

Applncs

UAE USA

901580 Othe instruments and appliances. 794.42 USA, South

Africa

USA, France

901590 Parts & Accessores of Surveying,

Phtogrmcl, Hydrogrphic Instrumnts etc.

excl. Compasses

1142.41 USA USA, France

67

902229 Apprts Bsd On Use of Alpha,Bta/Gma

Radtns for other Uses incl Rdogrphy &

Rdothrpy Apprts

199.58 USA USA,

Germany,

Israel, Japan

902290 Other, including parts and accessories 12608.93 USA, Japan USA,

Germany,

France

902511 Liquid-filled, for direct reading 273.56 USA, Iraq UK,

Belgium,

China

902519 Other ( hydrometers and similar loating

instruments)

134.02 USA, Iraq, UAE Germany,

USA, Japan

902580 Other instruments 44.4 China, Yemen,

Iraq

USA,

Germany,

UK,

Singapore

902590 Parts & Accssrs of Instruments of Hdg

9025

209.51 Italy, Malaysia,

UAE, Singapore

Belgium,

Korea

Republic

(South), UK,

Germany,

USA

902610 For measuring or checking the flow or

level of liquids

2674.17 South Africa,

Singapore, USA,

Switzerland

USA,

Germany

902620 For measuring or checking pressure 1211.68 USA, Iraq,

Mexico

Germany,

Japan,

Singapore,

USA

902680 Other instruments or apparatus 208.93 USA, Mexico USA,

Germany

902690 Parts&Accssrs of Insrmnts/Apprts of

Hdg9026

712.36 Switzerland,

UK, Syria,

Bangladesh

Singapore,

USA

902710 Gas or smoke analysis apparatus 643.21 UK, Sri Lanka,

Oman, Saudi

Arabia, Ethiopia

USA, UK,

Germany,

Japan

902720 Chromatographs & Electrophoresis

Instrmnt

24.13 USA, Israel Japan, USA,

Singapore,

Germany

902730 Spectrometers, spectro-photometers and

spectographs using optical radiations

(UV, visible, IR)

118.69 Germany, UK,

Switzerland,

UAE

Switzerland,

USA, UK,

Germany,

Japan

902740 Exposure Meters South Africa Japan

68

902750 Other instruments and apparatus using

optical radiations (UV, visible, IR)

178.77 Netherlands,

China, France,

USA, UK

USA,

Germany,

Japan

902780 Other instruments and apparatus 523.94 Romania, USA,

Turkey

USA,

Germany

902790 Microtomes; parts and accessories 315.46 Yemen,

Germany

USA,

Germany,

UK,

Switzerland,

Japan

902810 Gas Meters 567.35 Egypt China

902820 Liquid Meters 23.46 Singapore,

Dominican

Republic

USA

902830 Electricity Meters 2171.73 UK, Australia China,

Switzerland

902890 Parts and Accessories of Gas Lqd or

Electricty Supply or Production Meters

185 Myanmar

(Burma),

Australia,

Malaysia

China

90301000 Instrument and Apparatus for Measuring

or Detecting Ionising Radiation

544.85 USA USA,

Germany,

UK, France

903020 Cathode-ray oscilloscopes and cathode-

ray oscillographs

27.95 Singapore,

Nepal

USA, China,

Singapore

903031 Multimeters 127.82 USA USA, China,

Taiwan

(Taipei)

903039 Other ( oscilloscopes and other

instruments for measuring or checking

electrical quantities excluding meters)

5681.63 UK, USA USA

903083 Other with a recording device, nes 26.97 Sri Lanka,

Thailand and

Tobago

UK,

Singapore

903089 Other ( oscilloscopes and other

instruments for measuring or checking

electrical quantities excluding meters)

107.46 USA USA,

Singapore

903090 Parts and accessories 1340.63 USA USA

903110 Machines for Balancing Mechanical

Parts

157.59 UAE, Thailand,

Singapore,

Turkey, Sweden

UK,

Germany

903120 Test Benches 165.23 Italy, Brazil,

Singapore

Germany

903130 Profile Projectors 17.27 South Africa,

Italy

Germany,

UK, France,

Singapore

69

903180 Other Msrng & Checking Instrmnts,

Applncs & Mchns

615.76 USA, UAE,

Singapore,

Germany,

France

USA,

Germany,

France, UK,

Japan

903190 Parts and Accessories of Instrmnts of

9031

749.43 USA Korea

Republic

(South),

USA, UK,

Germany,

Japan

903210 Thermostats 277.75 UK, Thailand UK, Korea

Republic

(South),

USA, Italy,

Japan

903220 Manostats 0.11 USA USA,

Switzerland,

Germany,

Denmark

903281 Hydraulic/Pneumatic Instrumnts &

Apparatus

344.05 USA, Japan USA,

Germany,

Japan, UK

903289 Other ( automatic regulating or

controlling instruments)

2710.31 USA, Singapore,

Niger, Japan,

Qatar

Korea

Republic

(South),

USA,

Germany,

Japan

903290 Parts and Accessories of Instrmnts of

9032

559.56 Sweden, USA USA,

Singapore,

Japan,

Germany

9033 Parts and accessories (not specified or

included elsewhere in this Chapter) for

machines, appliances, instruments or

apparatus of Chapter 90

9971.28 USA, Japan,

Germany

USA,

Germany,

Japan

Data Extracted from ITC

Based on 2003 data

70

Annex 3. India's Import of Environmental Products and their Growth arranged in

Descending Order

Commodity

Code

Commodity Name US $

Million

CAGR

Annual

Dec-03

val

84743200 Mchns for Mxng Mnrl Substncs with Bitumen 15.38 2.03

84042000 Condensers for Steam/other Vpr Powr Units 1.67 0.51

90154000 Photogrmtrcl Survying Instrmnts & Applncs 0.84 0.43

90313000 Profile Projectors 4.83 0.42

847290 Other 38.9 0.39

90283000 Electricity Meters 20.4 0.29

690919 Other ceramic wares for laboratory etc. 2.05 0.26

85141000 Resistance heated furnaces & ovens 0.56 0.25

902290 Other, including parts and accessories 42.3 0.23

90301000 Instrument and Apparatus for Measuring or Detecting

Ionising Radiation

2.12 0.22

701790 Other laboratory, hygienic/pharmaceutical glassware 2.27 0.22

903020 Cathode-ray oscilloscopes and cathode-ray oscillographs 4.38 0.20

90272000 Chromatographs & Electrophoresis Instrmnt 26.29 0.20

854389 Other nes 78.01 0.19

903083 Other with a recording device, nes 1.94 0.19

842139 Filtering or purifying machinery and app. for gases,

other

14.21 0.18

854140 Photosensitive semi-conductor devices, including

photovoltaic cells whether or not assembled in modules

or made up into panels; light emitting diodes

14.3 0.16

90281000 Gas Meters 0.88 0.15

841919 Instantaneous or storage water heaters, non-electric -

Other

0.83 0.15

901580 Othe instruments and appliances. 20.72 0.15

903090 Parts and accessories. 11.73 0.14

903289 Other 43.79 0.14

90322000 Manostats 0.37 0.14

841940 Distilling or rectifying plant 22 0.14

690320 Other refractory ceramic goods containing by weight

more than 50 % of alumina (aluminium oxide) or of a

mixture or compound of alumina and of silica (silicon

dioxide)

3.68 0.13

90259000 Parts & Accssrs of Instruments of Hdg 9025 3.17 0.13

903089 Other 12.57 0.12

71

690210 Refractory bricks, blocks, tiles and similar goods

containing by weight, singly or together, more than 50%

of the elements magnesium, calcium or chromium,

expressed as magnesium oxide, calcium oxide oUNIT

15.85 0.12

90289000 Parts and Accessories of Gas Lqd or Electricty Supply

or Production Meters

7.19 0.12

902511 Liquid-filled, for direct reading 0.57 0.12

902730 Spectrometers, spectro-photometers and spectographs

using optical radiations (UV, visible, IR)

27.6 0.12

85023100 Other generating sets; wind powered 1.32 0.11

90319000 Parts and Accessories of Instrmnts of 9031 32.07 0.10

85051900 Permanent magnets & articles intended to become

permanent magnets after magnetisation; of other

material

4.04 0.10

841480 Other 39.87 0.08

9033 Parts and accessories (not specified or included

elsewhere in this Chapter) for machines, appliances,

instruments or apparatus of Chapter 90

79.92 0.08

90318000 Other Msrng & Checking Instrmnts, Applncs & Mchns 102.15 0.07

841370 Other centrifugal pumps 15.63 0.07

902780 Other instruments and apparatus 60.55 0.07

70172000 Laboratory hygienic/pharmaceutical glassware of other

glass having a linear coeffcient of expansion not

exceeding 5X10 -6/ Kelvin within a temperature

between 0 degree C to 300 degree C

0.45 0.07

902790 Microtomes; parts and accessories 30.15 0.07

902580 Other instruments 2.62 0.06

902620 For measuring or checking pressure 11.82 0.06

591190 Other 9.11 0.06

840991 Suitable for use solely or principally with spark-ignition

internal combustion piston engines

37.97 0.06

84178000 Other Furnaces & Ovens 5.48 0.05

902750 Other instruments and apparatus using optical radiations

(UV, visible, IR)

4.79 0.05

903039 Other 13.51 0.04

84219900 Parts, other 33.22 0.04

90303100 Multimeters 1.59 0.04

841381 Pumps 30.51 0.03

902610 For measuring or checking the flow or level of liquids 13.95 0.02

90329000 Parts and Accessories of Instrmnts of 9032 26.25 0.02

840999 Other 90 0.02

90311000 Machines for Balancing Mechanical Parts 1.75 0.02

84219100 Parts, of centrifuges, incl. centrifugal dryers 2.77 0.01

902710 gas or smoke analysis apparatus 11.13 0.01

90282000 Liquid Meters 0.33 0.01

72

56031400 Man-Made Filmnt Wghng >150G/Sqm 1.73 0.00

841360 Other rotary positive displacement pumps 3.9 0.00

84212900 Centrifuges, incl. centrifugal dryers, other 12.42 0.00

90321000 Thermostats 4.18 -0.01

902519 Other 1.96 -0.01

90269000 Parts & Accssrs of Insrmnts/Apprts of Hdg9026 14.08 -0.01

842119 Centrifuges, incl. centrifugal dryers, Other 5.62 -0.02

90222900 Apprts Bsd On Use of Alpha, Bta/Gma Radtns for other

Usesincl Rdogrphy & Rdothrpy Apprts

2.8 -0.02

842121 Centrifuges, incl. centrifugal dryers, for filtering or

purifying water

3.64 -0.03

90159000 Parts & Accessores of Surveying, Phtogrmcl,

Hydrogrphic Instrumnts etc. excl. Compasses

4.84 -0.03

90312000 Test Benches 4.57 -0.03

902680 Other instruments or apparatus. 9.07 -0.04

841459 Other 11.02 -0.04

847989 Other 117.42 -0.05

690290 Other refractory bricks, blocks, tiles et 12.14 -0.05

85149000 Parts of articles of industrial or laboratory electric

(including induction or dielectric) furnaces and ovens;

other industrial or laboratory induction or dielectric

heating equipment

2.74 -0.05

84222000 Machinery for Clng/Dryng Botls/other Cntnrs 1.13 -0.05

847990 Parts 40.35 -0.06

84196000 Machinery for Liquefying Air/other Gases 3.19 -0.07

90328100 Hydraulic/Pneumatic Instrumnts & Apparatus 0.64 -0.08

84283300 Other Continuous Action Elevatrs & Conveyrs for

Goods/Materials, Belt Type

0.99 -0.08

84798200 Mxng, Kneadng, Crushng, Grndng, Screng, Siftng,

Homogensng, Emulsifyng/Stirrng Mchns

7.08 -0.10

84041000 Auxlry Plnt Usd with Boilrs of 8402/8403 0.76 -0.10

84109000 Parts of Hydrlic Turbnes incl. Regulators 2.59 -0.10

84179000 Parts of Non Electric Furnaces Ovens etc 3.6 -0.10

690310 Other refractory ceramic goods containing by weight

more than 50% of graphite or other forms of carbon or

of a mixture of these products

0.4 -0.11

690390 Other refractory ceramic goods 6.25 -0.12

85142000 Induction/dielectric furnaces & ovens 0.2 -0.12

70171000 Laboratory glasses etc of fused quartz or other fused 0.14 -0.12

847410 Sorting, screening, separating or washing machines 4.04 -0.13

90274000 Exposure Meters 0.02 -0.14

851430 Other furnaces and ovens 2.26 -0.16

841950 Heat exchange units 7.45 -0.16

846291 Hydraulic presses 4.65 -0.20

89079000 Other floating structures 0.46 -0.20

73

843680 Other machinery 0.11 -0.22

841012 Of a power not exceeding 1,000 kW but not exceeding

10,000 kW

-0.23

840510 Produced gas or water gas generators with or without

their purifiers acetylene gas generators and similar water

process gas generators with or without their purifiers

2 -0.24

460120 Mats, matting and screens of vegetable materials 0.03 -0.45

84101100 Hydraulic Turbines & Water Wheels of a Power not

Exceeding 1000 Kw

-1.00

841013 Of a power exceeding 10,000 kW -1.00

Growth calculated on the basis of data extracted from ITC

Top 20 import items are shaded

Annex 4. Export of Environmental Goods from India Arranged According to their

Growth during 1998-2003

Commodity

Code

Commodity Name CAGR

90281000 Gas Meters 1.21

854140 Photosensitive semi-conductor

devices, including photovoltaic cells

whether or not assembled in modules

or made up into panels; light emitting

diodes

0.76

90159000 Parts & Accessores of Surveying,

Phtogrmcl, Hydrogrphic Instrumnts

etc. excl. Compasses

0.76

90283000 Electricity Meters 0.46

843680 Other machinery 0.42

90222900 Apprts Bsd On Use of

Alpha,Bta/Gma Radtns for other Uses

incl Rdogrphy & Rdothrpy Apprts

0.42

89071000 Invlatable Rafts 0.41

90328100 Hydraulic/Pneumatic Instrumnts &

Apparatus

0.39

690320 Other refractory ceramic goods

containing by weight more than 50 %

of alumina (aluminium oxide) or of a

mixture or compound of alumina and

of silica (silicon dioxide)

0.38

84109000 Parts of Hydrlic Turbnes incl.

Regulators

0.37

74

9033 Parts and accessories (not specified or

included elsewhere in this Chapter)

for machines, appliances, instruments

or apparatus of Chapter 90

0.37

901580 Othe instruments and appliances 0.37

841480 Other air vacuum pumps 0.37

90321000 Thermostats 0.36

902290 Other, including parts and accessories 0.35

903083 Other with a recording device, nes 0.35

90319000 Parts and Accessories of Instrmnts of

9031

0.35

854389 Other nes 0.34

902620 For measuring or checking pressure 0.33

903089 Other 0.33

56031400 Man-Made Filmnt Wghng

>150G/Sqm

0.30

70171000 Laboratory glasses etc of fused quartz

or other fused

0.28

902610 For measuring or checking the flow

or level of liquids

0.27

847290 Other 0.27

90301000 Instrument and Apparatus for

Measuring or Detecting Ionising

Radiation

0.27

90313000 Profile Projectors 0.26

84219900 Parts, other 0.24

841919 Instantaneous or storage water

heaters, non-electric - Other

0.23

84178000 Other Furnaces & Ovens 0.22

847990 Parts 0.22

841012 Of a power not exceeding 1,000 kW

but not exceeding 10,000 kW

0.22

90269000 Parts & Accssrs of Insrmnts/Apprts of

Hdg9026

0.22

84743200 Mchns for Mxng Mnrl Substncs with

Bitumen

0.22

84798200 Mxng, Kneadng, Crushng, Grndng,

Screng, Siftng, Homogensng,

Emulsifyng/Stirrng Mchns

0.21

690390 Other refractory ceramic goods 0.21

690220 Refractory bricks, blocks, tiles and

similar goods containing by weight,

more than 50% of alumina (al2o3), of

silica (sio2) or of a mixture of

compound of these products

0.20

75

701790 Other laboratory,

hygienic/pharmaceutical glassware

0.18

84041000 Auxlry Plnt Usd with Boilrs of

8402/8403

0.18

89079000 Other floating structures 0.16

690919 Other ceramic wares for laboratory

etc.

0.16

902780 Other instruments and apparatus 0.15

841360 Other rotary positive displacement

pumps

0.14

84196000 Machinery for Liquefying Air/other

Gases

0.13

903090 Parts and accessories 0.13

903020 Cathode-ray oscilloscopes and

cathode-ray oscillographs

0.12

690310 Other refractory ceramic goods

containing by weight more than 50%

of graphite or other forms of carbon

or of a mixture of these products

0.12

85023100 Other generating sets; wind powered 0.11

841950 Heat exchange units 0.11

90303100 Multimeters 0.11

846291 Hydraulic presses 0.10

840510 Produced gas or water gas generators

with or without their purifiers

acetylene gas generators and similar

water process gas generators with or

without their purifiers

0.10

902580 Other instruments 0.10

903289 Other 0.10

841381 Pumps 0.10

85142000 Induction/dielectric furnaces & ovens 0.10

847989 Other 0.09

902710 gas or smoke analysis apparatus 0.09

842119 Centrifuges, incl. centrifugal dryers,

Other

0.09

460120 Mats, matting and screens of

vegetable materials

0.09

902680 Other instruments or apparatus 0.09

90312000 Test Benches 0.08

841459 Other 0.08

903039 Other 0.08

85051900 Permanent magnets & articles

intended to become permanent

magnets after magnetisation; of other

0.06

76

material

841370 Other centrifugal pumps 0.06

842139 Filtering or purifying machinery and

app. for gases, other

0.06

84219100 Parts, of centrifuges, incl. centrifugal

dryers.

0.06

847410 Sorting, screening, separating or

washing machines

0.06

840999 Other 0.05

840991 Suitable for use solely or principally

with spark-ignition internal

combustion piston engines

0.05

84101100 Hydraulic Turbines & Water Wheels

of a Power not Exceeding 1000 Kw

0.05

90282000 Liquid Meters 0.04

84179000 Parts of Non Electric Furnaces Ovens

etc

0.04

84222000 Machinery for Clng/Dryng

Botls/other Cntnrs

0.04

902790 Microtomes; parts and accessories. 0.03

591190 Other 0.02

90289000 Parts and Accessories of Gas Lqd or

Electricty Supply or Production

Meters

0.02

90329000 Parts and Accessories of Instrmnts of

9032

0.02

690210 Refractory bricks, blocks, tiles and

similar goods containing by weight,

singly or together, more than 50% of

the elements magnesium, calcium or

chromium, expressed as magnesium

oxide, calcium oxide oUNIT

0.02

85141000 Resistance heated furnaces & ovens 0.01

84212900 Centrifuges, incl. centrifugal dryers,

other

0.01

902519 Other 0.00

90274000 Exposure Meters 0.00

851430 Other furnaces and ovens -0.01

85149000 Parts of articles of industrial or

laboratory electric (including

induction or dielectric) furnaces and

ovens; other industrial or labortatory

induction or dielectric heating

equipment

-0.02

77

90311000 Machines for Balancing Mechanical

Parts

-0.03

90318000 Other Msrng & Checking Instrmnts,

Applncs & Mchns

-0.03

90259000 Parts & Accssrs of Instruments of

Hdg 9025

-0.05

90272000 Chromatographs & Electrophoresis

Instrmnt

-0.05

842121 Centrifuges, incl. centrifugal dryers,

for filtering or purifying water

-0.08

902511 Liquid-filled, for direct reading -0.08

902750 Other instruments and apparatus

using optical radiations (UV, visible,

IR)

-0.09

84042000 Condensers for Steam/other Vpr

Powr Units

-0.14

841013 Of a power exceeding 10,000 kW -0.16

902730 Spectrometers, spectro-photometers

and spectographs using optical

radiations (UV, visible, IR)

-0.22

70172000 Laboratory hygienic/pharmaceutical

glassware of other glass having a

linear coeffcient of expansion not

exceeding 5X10 -6/ Kelvin within a

temperature between 0 degree C to

300 degree C

-0.26

841940 Distilling or rectifying plant -0.29

84283300 Other Continuous Action Elevatrs &

Conveyrs for Goods/Materials, Belt

Type

-1.00

90154000 Photogrmtrcl Survying Instrmnts &

Applncs

-1.00

90322000 Manostats -1.00

Source: Data extracted from Indiatrades and ranked thereafter

Top 20 export products are shaded

Formula used for growth calculation:

CAGR=[Ending Value/Beginning

Value] (1 No. of years)

- 1

78

Annex 5. Top 20 Exports of Indian Environmental Goods according to Value in

2002 and RCA of those Products

Commodity

Code Commodity Name

World Import in

2002 (in US $

million)

Revealed Comparative

Advantage Index

840999 Other parts suitable for engines 11672.38 0.69

847990 Parts (machine) 8849.63 0.89

841370 Other centrifugal pumps 3859.31 1.42

847989 Other machines and mechanical

appliances 19179.86 0.26

854140

Photosensitive semi-conductor

devices, including photovoltaic

cells whether or not assembled in

modules or made up into panels;

light emitting diodes

5774.1 0.84

840991

Suitable for use solely or

principally with spark-ignition

internal combustion piston

engines

14709.09 0.33

903039

Other instruments for measuring

and checking electrical quantities

excluding meter

1333.01 1.32

9033

Parts and accessories (not

specified or included elsewhere in

this Chapter) for machines,

appliances, instruments or

apparatus of Chapter 90

2054.55 0.82

902290 Other, including parts and

accessories 3064.93 0.49

903289 Other 8042.91 0.13

841950 Heat exchange units 2723.64 0.31

90283000 Electricity Meters 746.55 1.03

84219900 Parts, other 4013.56 0.17

690220

Refractory bricks, blocks, tiles

and similar goods containing by

weight, more than 50% of alumina

(al2o3), of silica (sio2) or of a

mixture of compound of these

products

709.33 0.94

690390 Other refractory ceramic goods 360.02 1.80

847290 Other office machines 2472.79 0.24

79

690210

Refractory bricks, blocks, tiles

and similar goods containing by

weight, singly or together, more

than 50% of the elements

magnesium, calcium or

chromium, expressed as

magnesium oxide, calcium oxide

oUNIT

1733.77 0.29

701790

Other laboratory,

hygienic/pharmaceutical

glassware

748.63 0.67

842121

Centrifuges, incl. centrifugal

dryers, for filtering or purifying

water

2335.57 0.20

902610 For measuring or checking the

flow or level of liquids 1573.17 0.28

Total Export 5621271.41 1.00

Extracted 2002 data as latest data available in Indiatrades and calculated thereafter

Annex 6. 20 Environmental Goods of India (Experiencing maximum growth rate

during 1998-2003) and their Revealed Comparative Advantage

Commodity

Code

Commodity Name US $

Million

CAGR World Export Revealed

Comparative

Advantage

Index

Annual

Dec-03

val

90281000 Gas Meters 1.18 1.21 253.13 0.03

854140 Photosensitive semi-conductor

devices, including

photovoltaic cells whether or

not assembled in modules or

made up into panels; light

emitting diodes

68.86 0.76 5774.1 0.84

90159000 Parts & Accessores of

Surveying, Phtogrmcl,

Hydrogrphic Instrumnts etc.

excl. Compasses

2.37 0.76 1102.29 0.22

90283000 Electricity Meters 4.5 0.46 746.55 1.03

843680 Other machinery 1.17 0.42 745.61 0.02

80

90222900 Apprts Bsd On Use of Alpha,

Bta/Gma Radtns for other

Usesincl Rdogrphy &

Rdothrpy Apprts

0.41 0.42 203.79 0.45

89071000 Inflatable Rafts 0.08 0.41 95.79 0.05

90328100 Hydraulic/Pneumatic

Instrumnts & Apparatus

0.71 0.39 240 0.51

690320 Other refractory ceramic

goods containing by weight

more than 50 % of alumina

(aluminium oxide) or of a

mixture or compound of

alumina and of silica (silicon

dioxide)

2.04 0.38 531.88 0.19

84109000 Parts of Hydrlic Turbnes incl.

Regulators

1.26 0.37 465.69 0.37

9033 Parts and accessories (not

specified or included

elsewhere in this Chapter) for

machines, appliances,

instruments or apparatus of

Chapter 90

20.66 0.37 2054.55 0.82

901580 Other instruments and

appliances

1.65 0.37 1455.28 0.12

841480 Other 7.51 0.37 5643.86 0.05

90321000 Thermostats 0.58 0.36 1708.94 0.03

902290 Other, including parts and

accessories

26.12 0.35 3064.93 0.49

903083 Other with a recording device,

nes

0.06 0.35 689.48 0.01

90319000 Parts and Accessories of

Instrmnts of 9031

1.55 0.35 2710.57 0.07

854389 Other nes 5.72 0.34 8971.97 0.03

902620 For measuring or checking

pressure

2.51 0.33 1738.1 0.09

903089 Other 0.22 0.33 1739.05 0.02

Total Export 5621271.41

RCA calculated on the basis of data extracted from Indiatrades

81

Annex 7. Items which have more than one use (dual use or multiple use)

HS Code Commodity

56031 Man-Made Filament Weighing >150g/Sqm

392690 Other articles of plastics

460120 Mats Matting & Screens of Vegetable Materials

560314 Man-Made Filament Waging >150g/Sqm

591190 Other Textile Products & Articles for Technical Use

690210 Goods Contng by Wtsingly/ together>50% of the Elements

Magnesium\calcium/Chromium

690220 Refractory Bricks Blocks Etc containing weight.>50% Alumina, Silica/F

Mixture

690310 Other Refractory Ceramic Goods Containing by weight>50%

Graphite/Other Forms of Carbon/Of a Mixtures of these

690320 Goods Contng by Wt>50% Alumina (Aluminum Oxide)/Of

Mxtr/Compoun D of Alumina of Silica (Silicon Di-Oxide)

690390 Other Refractory Ceramic Goods

690919 Othr Cermc Wares Fr Labrtry Etc

701710 Lab Glasses Etc of Fused Quartz or Other Fused

701790 Other Lbrtry/Hygnc/Hrmctcl Glassware

840410 Auxiliary Plant Used With Boilers of 8402/8403

840420 Condensers Vapor Power Units for Steam/Other

840510 Producer Water Gas Gnrtrs, Acetle

82

841360 Other Rotary Positive Displace Mint Pumps

841370 Others Centrifugal Pumps

841410 Vacuum Pumps

841459 Other Fans

841480 Other Pumps, Compressors Etc

841940 Distilling/Rectifying Plant

841950 Heat Exchange Unit

841960 Machinery for Liquefying Air/Other Gases

842119 Other centrifuges including centrifugal Dryers

842121 Filtering Purifying Machinery Apparatus for Water

842129 Other Purifying Machinery Apparatus Fr Liquid

842220 Machinery Fr Clng/Dryng Botls/Othr Cntnrs

842833 Other Continuous Action Elevators & Conveyor for Goods/Materials

Belt Type

843680 Other Machinery of Hd8436

846291 Hydraulic Presses

847290 Other Office Machines

847410 Srtng, Screning, Separating &Washing Machines

847982 Mixing, Kneading, Crushing, Grinding, Screen, Sifting etc

83

847989 Other Machine & Mechanical Appliances of Hag 8479

851410 Resistance Heated Furnaces & Ovens

851420 Induction/Dielectric Furnaces & Ovens

901540 Photogrmtrcl Surveying Instruments & Appliances

901590 Parts Accessories of Surveying, Phtogrmcl, Hyd-Rogrphic Instruments

Etc. Excluding compasses

902229 Apparatus based On Use Alpha, Bta/Gma radiations for other Uses Incl

Rdogrphy & Rdothrpy apparatus

902290 Other Apprts Incl Prs & Accssrs of Hdg 9022

902511 Thermometers, Liquid filled, For Direct Riding

902580 Other Instruments of Heading 9025

902590 Parts Accssrs of Instruments of Hdg 9025

902610 Instruments Apparatus for Measuring or Checking the Flow or Level of

Liquids

902620 Instruments Aprts Fr Msrng/Chkng Pressure

902680 Other Instruments Apparatus Hdg9026

902690 Prts & Accssrs of Insrmnts/Apprts of Hdg9026

902710 Gas or Smoke Analysis Apparatus

902720 Chromatographs Electrophoresis Instrument

902730 Spectrometers, Spectrophotometer Meters Spectrographs Using Optical

Radiation

902780 Other Instruments Apparatus of Hdg 9027

84

902790 Micro tomes; Parts Accessory of Hdg 9027

902810 Gas Meters

902820 Liquid Meters

902830 Electricity Meters

902890 Parts and Accessories of Gas Liquid or electricity Supply or Production

Meters

903010 Instrument and Apparatus for Measuring or Detecting

903020 Cathode Ray osclcps Cathode-Ray Osclogrphs

903031 Multimeters 903039 Other Instrument Apparatus Fr Msrng/Chkngvltge,

Curnt,Rsstnc/Pwr, Without Rcrdng Devc

903083 Instruments Parts with Recording Device

903089 Other Instruments Apparatus

903090 Parts and Accessories of

903210 Thermostats

903220 Manostats

Annex 8. Items which can be of interest for India

a) Based on HS Codes

HS

230210

Booms and socks of corn cobs

HS

847989

Trash compactors

HS

393269

Bio-film medium

HS

392690

Rotating Biological contractor

85

HS

854389

Ozone Production System

HS

854140

Photosensitive semiconductor devices including photo volatile

Cells assembled in module\made up into panels

b) Environment Friendly products in the context of production capabilities of India:

Jute and jute

products

Coir and coir

products

Bamboo and rattan products

Cotton handlooms

Handloom furnishing materials

Textiles and clothing made by using natural dyes

Garments using natural dyes

Non timber forest products

Products based on

TK