MARKET REPORT INDIA

______________________________________________________________________________________

Prepared by:
Export Development Board (EDB), Sri Lanka
July, 2014

1. Background

Population

1.2 billion

GDP

$1.87 trillion

Growth Rate

1.51% (2009 est.)

Industries

textiles, chemicals, food processing, steel,

transportation equipment, cement, mining,
petroleum, machinery, software,
pharmaceuticals

Export

$313.2 billion (2013 est.)

Export Goods

software, petrochemicals,
pharmaceuticals, precious stones,
textiles, machinery, iron
ore,[10]chemicals, automobiles
United Arab Emirates 12.3%, United
States 12.2%, China 5.0%, Singapore
4.9%, Hong Kong 4.1% (2012 est.)

Exports partners

Imports

$467.5 billion (2013 est.)

Import Goods

crude oil, raw precious stones, machinery,

fertilizer, coal, steel, chemicals
Pakistan 24.3%, US 18%, Russia 8.7%, India 5.8%,
China 5.6%, Germany 4.4% (2012 est.)

Imports partners
2

India is the second-most populous country with over 1.2 billion people, and the most
populous
democracy in the world. The economy of India is the tenth-largest in the world by
nominal GDP and the third-largest by purchasing power parity. India is the 19th-largest
exporter and the 10th-largest importer in the world.
Nearly two-third of the population depends on the agriculture for its livelihood. India is the largest
producer in the world of milk, jute and pulses, and also has the world's second largest cattle population
with 175 million animals in 2008.[98] It is the second largest
Producer of rice, wheat, sugarcane, cotton and groundnuts, as well as the second largest fruit
and vegetable producer, accounting for 10.9% and 8.6% of the world fruit and vegetable
production respectively.
India is Sri Lankas closest neighbor. The relationship between the two countries is more than
2,500 years old and both sides have build upon a legacy of intellectual, cultural, religious and
linguistic intercourse. Relations between the two countries have also matured and
diversified with the passage of time, encompassing all areas of contemporary relevance.
India and Sri Lanka have a vibrant and growing economic and commercial partnership. Much of
the impetus for the current level of our economic interaction stemmed from the signing and
entry into force of the Free Trade Agreement in 1998 and March 2000 respectively.
India is the third largest export market of Sri Lanka, and the number one supplier in 2013. India Sri Lanka total trade figure shows a declining trend in 2012 and 2013. India is among the four
largest investors in Sri Lanka economy and Sri Lankas investments in India have shown
remarkable growth in recent years.
India investment to Sri Lanka reached US$ 160 million in 2012. Major investments are Bharati
Airtel in mobile telecommunication, Britannia in confectionary sector, Lanka IOC, TATA, Taj
Hotels, Ultratech Cements, Ambuja Cement, CEAT, Piramal Glass and Ashok Leyland.
On the other hand, Sri Lankan companies such as Brandix, MAS Holdings, Damro, Dankotuwa,
Carson Cumberbatch, Aitken Spence, John Keels, Colombo Dockyards,
DRH Logistics and Freight Links International etc have established in many sectors through
trade or investments in India.
In terms of development cooperation, too, India makes a significant contribution, Sri Lanka
being the largest recipient of aid, grants and concessional lines of credit in South Asia.

2. Bilateral Trade between Sri Lanka and India (2009-2013),

Value in US $ Mn
YEAR
2009

EXPORTS FROM SRI

LANKA
325

IMPORTS TO
SRI LANKA
1,695

TOTAL
TRADE
2,020

BALANCE OF
TRADE
-1,370

2010

474

2,473

2,947

-1,999

2011

522

4,338

4,860

-3,816

2012

570

3,525

4,095

-2,954

2013

544

3,089

3,633

-2,545

3. Sri Lankas major export products to India (2009-2013),

Value in US $ 000
Code

Description

2009

2010

2011

2012

2013

H.890190

-Vessels for the transport of goods and both persons and goods

18,435

18,735

18,991

26,265

52,901

H.23099030

-Poultry feed

36,516

41,496

34,597

44,609

35,715

H.854430

-Ignition wiring sets and other wiring sets for vehicles, aircraft...

21,303

31,996

34,223

28,925

28,275

H.09041120

-Matured Berries of pepper with a density exceeding 450 grams per liter

H.09071092

-Cloves

H.470790

-Other paper/paper board, including unsorted waste and scrap

8,744

11,527

H.680221

-marble,travertine and alabaster

3,433

5,564

H.09071012

-Cloves

H.70199020

-For the manufacture of fibre glass fishing boats

H.08028090

-Other

H.23024010

-Brans, sharps & other residuals of rice

H.09041111

-Organic

6,165

H.95030090

H-Bottles, flasks, jars, pots nes

.
-Wooden furniture of a kind use in a bed room, not used
7
0-Other furniture for storage & display, incorperating refrigerating & freezing
equipments
1
0-Other
9-Fruits, dreid, excl. apricots, prunes, apples, tamarind
0
-Unbleached kraft paper or paperboard or corrugated paper or paperboard
9
0-Other remote controlled toys

H.580620

-Narrow woven fabrics, with >=5% elastomeric yarn or rubber thread

H.94035090
H.84185090
H.44111490
H.08134090
H.470710

24,639

1,516

20,511

17,926

14,740

16,842

17,752

16,548

16,098

330

12,420

1,196

481

12,315

381

10,836

8,106

15,022

9,744

67

9,413

8,444
478

10,343

8,570

8,290

2,256

3,677

5,304

5,585

7,135

22,865

17,276

23,139

16,136

6,738

51

3,629

5,872

5,551

6,201

1,215

1,703

1,590

2,220

6,102

3,935

6,431

8,166

6,899

5,952

116

3,207

5,925

1,944

3,996

5,280

5,518

5,871

H.780110

-Refined lead, unwrought

2,225

H.09041119

-Other

H.401519

-Gloves of vulcanized rubber (excl. surgical gloves)

H.610310

-Suits

H.09041190

-Pepper, neither crushed no ground, other

2,415

15,040

H.600622

-Knitted or crocheted fabric of cotton, nes, dyed

2,040

5,244

H.850720

-Lead-acid accumulators (excl. for starting piston engines)

H.40112010

-Having a rim size 20 inches and above

H.08029010

-Arecanuts, freshed, not shelled

H.090821

-Neither crushed nor ground

H.740911

-Plates, sheets and strip, of refined copper, in coils, >0.15mm thick

H.740811

-Wire of refined copper, maximum cross-sectional dimension >6mm

H.621710

-Clothing accessories,

H.27101960

-Fuel oils

5,270

3,648
7,646

1,494
8,453

4,368

5,731

804

5,657

6,644

5,417

10,013

5,287

9,470

8,215

5,087

10,530

2,246

5,082

5,081
4,869

1,305

2,059

1,607

1,702

4,246

460

4,109

4,000

7,032

15,567

10,785

7,282

3,974

564

148

683

6,065

3,949

3,293

20

8,035

3,859

4. Sri Lankas major import products from India (2009-2013), Value in US $ 000
Code

Description

2009

2010

2011

2012

2013

213,956

235,258

421,834

188,420

216,064

H.27101940

Gas oil including Diesel

H.30049090

Mediciments, mixed or unmixed in the form of retail sale, nes

78,874

93,001

133,945

149,556

157,383

H.25232930

Other portland cement imported in packing of over 50 kg or in bulk

26,948

58,457

92,010

120,724

129,827

H.27101220

Petrol

20,275

125,447

H.87112010

174,299

120,669

108,459

H.87032154

Motror cycle, >55 cc & =< 200 cc, not more than 3 years old, reciprocating
internal comb
Other trishaws, not more than 2 years old

21,526

131,098

107,204

H.17019910

White crystalline cane sugar

9,616

34,362

320,128

185,284

67,928

H.87042161

Vehicles with seperatae bodies for cabin and cargo for 3 cargo capacity < 1500

8,478

38,153

92,549

104,107

65,912

H.07031020

B' onions

37,054

49,180

37,804

28,609

65,745

H.230400

Oil-cake and other solid residues, of soya-bean

33,111

31,371

70,365

75,443

60,818

H.09042110

Chillies

7,794

49,155

H.27101960

Fuel oils

69,799

84,157

42,408

H.280300

Carbon (carbon blacks and other forms of carbon,)

11,203

23,490

42,023

27,392

38,454

H.520939

Dyed cotton (85% or more) fabric, weighing > 200g/sqm,

27,171

33,950

61,359

46,422

35,433

H.252310

Cement Clinkers

10,124

40,611

39,116

32,253

H.520859

Woven fabric of cotton, conten 85% or more cotton, weighing =

660

1,693

6,547

28,063

31,949

H.600622

Knitted or crocheted fabric of cotton, dyed

14,481

19,574

31,824

26,649

29,750

H.72071110

Billets

2,674

11,685

12,847

18,584

29,699

H.87021059

Other

9,751

68,582

64,991

27,567

H.850231

Wind-powered generating sets

17,376

23,971

6,798

25,281

H.87019010

Agriculture tractors not over 10 years old

11,042

24,592

47,709

46,530

22,862

H.600690

Knitted and crocheted fabric of artificial filament,

17,104

18,335

19,050

18,730

21,395

71,696

134,987

H.481092

Multi-ply paper, coated

10,742

20,592

24,532

18,225

20,508

H.520521

measuring 714.29 decitex or more and not exceeding 14 metric number

21,964

24,098

26,467

21,694

19,144

H.25232920

Other portland cement imported in packing of 50kg and below

H.600621

Knitted or crocheted fabric of cotton,unbleached or bleached

H.551511

Woven fabrics,

597

545

4,128

13,275

18,545

9,839

8,014

13,736

8,166

18,533

14,422

12,363

19,940

15,042

18,251

5. The import products of India from the world and Sri Lankas exports
Product
Code

India's
import
s from
Sri
Lanka

Product description

'7102
'4011
'4001

Diamonds, not mounted or set

New pneumatic tires, of rubber
Natural rubber,balata,gutta-perchaetc

'4016
'0801
'6203
'7103

Articles of vulcanised rubber o/t hard rubber,

Brazil nuts, cashew nuts & coconuts
Men's suits, jackets, trousers etc & shorts
Precious & semi-precious stone, notstrug,
Part suitable for use solely/princ with boards,
panels, fuses, switche
Food preparations,
Activated carbon; activated natural mineral
products; animal black
Tea
Machinery part (hd 84.25 to 84.30)
Compounded rubber, unvulcanised, in
primary forms
Men's shirts
Bicycles & other cycles, not motorised
Fish, fresh, whole
Cargo containers designed to be carried by
one/more modes of transport
Articles of apparel & clothing accessories of
vulcanised rubber
Women's suits, jackets,dresses skirts etc&shorts

'8538
'2106
'3802
'0902
'8431
'4005
'6205
'8712
'0302
'8609
'4015
'6204

India's
imports
from
world

Potential

189
4,904
24,676

20,882,4
7
480,231
4
966,897

330,126
202,720
98,735

897
1,631
7,292
1,169

501,005
937,391
64,348
504,654

75,901
75,182
57,056
56,965

357
878

648,728
90,162

46,108
44,603

720
2,649
583

44,669
46,231
1,239,646

43,949
43,582
42,725

3,823
2,521
3,334
0

60,009
39,796
41,685
35,135

38,045
37,275
37,188
35,135

59

33,408

33,349

10,096
3,368

43,336
36,536

33,240
33,168

0
37,499

338,983
111,593

33,168
33,070

353

57,327

32,841

Unused stamps; chequeforms, banknotes, bond

certificates,et c.
'4907
'0904
'5209

Pepper, peppers and capsicum

Woven cotton fabrics, 85% or more cotton,
weight over 200 g/m2
6

'2710
'8504
'3923
'9603
'8544
'8534
'2401
'6109
'9031

Petroleum oils, not crude

Electric transformer, static converter (for
example rectifiers)
Plastic packing goods or closures stoppers, lids,
caps, closures, plas
Brooms/brushe (tooth, toilet, painting);squeegee
Insulated wire/cable
Printed circuits
Tobacco unmanufactured; tobacco refuse
T-shirts, singlets and other vests, knitted or
crocheted
Measuring or checking machines,

566

5,172,377

32,631

554

1,355,611

32,377

1,030

202,647

31,242

120
29,844
61
0

41,668
802,043
363,384
24,505

29,248
27,585
26,551
24,505

2,816
956

26,896
894,539

24,080
23,586

6. Sri Lankas leading 25 exporters to India 2013

No

Company Name

Product

1.
2.

AminovitPvt Ltd
Ishana Exports Pvt Ltd

Animal Feed
Pepper, Cloves, Nutmeg & Mace, Other
Fruits , Goraka (Garzenia), Areca Nuts,
Cinnamon

3.
4.

Motherson Electrical Wires Lanka

Pvt Ltd
Colombo Dockyard PLC

5.

D And R Exports Pvt Ltd

6.

SaboorChatoorPvt Ltd

7.
8.

Spice Of Life Pvt Ltd

Solas Marine Lanka Pvt Ltd

Insulated Wires and Cables, Scrap of

Ferrous, Aluminum, Copper & Other Metals
Boat Building, Switches, Lamp Holders
Boards & Panels, Books & Printed Matter
Furniture & Seats, Metal Furniture & Seats,
Mattresses & Mattress Supporters, Labels
Printed or Not, Made-Up Textile Articles,
Apparel
Pepper, Cloves, Nutmeg & Mace, Other
Fruits , Goraka (Garzenia), Cinnamon
Cloves, Pepper, Nutmeg & Mace, Areca Nuts
Glass & Glassware, Other Electrical &
Electronic Products
Worked Monumental Stones
MDF Boards, Other Textile Articles, Books &
Printed Matter, Tableware & Kitchenware,
Furniture & Seats
Glass & Glassware
Other Products of Base Metal, Standard Wire
of Aluminum, Copper & Iron
Pepper, Cloves, Nutmeg & Mace
Refrigerators & Freezers, Scrap of Ferrous,
Aluminum, Copper & Other Metals, Boilers,
Piston Engines, Pumps & Vacuum Pumps

9. Stone Asia Pvt Ltd

10. Merbok M D F Lanka Pvt Ltd

11. Piramal Glass Ceylon Plc

12. S R Metals
13. Shukra Trading Company
14. Everest Industrial Lanka Pvt Ltd

15. Ceylon Spice Export

16. SiluetaPvt Ltd
17. Hirdaramani International Exports
Pvt Ltd
18. Busan Dipping Ko Lanka Pvt Ltd
19. StretchlinePvt Ltd
20. Rainwear Pvt Ltd
21. Leoch Lanka Pvt Ltd
22. Wayamba Traders
23. Mubarak Trading Company
24. Associated CeatPvt Ltd
25. Lanka IOC PLC

Pepper, Nutmeg & Mace, Cloves, Areca

Nuts, Other Fruits
Apparel
Apparel
Toys Games & Sport Requisites
Woven Fabrics, Other Textile Articles
Apparel
Other Electrical & Electronic Products
Other Fruits , Areca Nuts, Cloves, Pepper,
Nutmeg & Mace, Oil Seed
Goraka (Garzenia), Other Fruits, Cloves,
Other Export Crops
Pneumatic & Retreated Rubber Tyres&
Tubes
Petroleum Products

7. Potential products to be explored from Sri Lanka

Apparel, Value added tea, Confectionery items, cocoa products, processed meat products,
food preparations, spices, strawberries & fruits, furniture, MDF boards, insulated copper
wiring sets and cables, bottle coolers, paints & varnishes, ceramic tableware & tiles,
polished marbles, glass bottles, rubber gloves, pneumatic rubber tyres, solid tyres, copper
wires, new machinery & electrical equipment parts, cosmetics, thermal papers, trailers & parts
any other concessionary products under ISFTA

8. Trade Issues
Non Tariff barriers faced by Sri Lankan exporters when exporting to India
1. Greefield Bio Plantations Pvt Ltd
Product; Tea, Spices, Processed fruit products
Issue: Delays in clearance due to testing & high costs involved for testing for flavored teas.
Closed operation in India.
2. MAS Intimates Pvt Ltd Product:
Garments
Issue: Time delays in clearing due to testing and high cost involved for testing
3. Edna Chocolates Pvt Ltd
Product: Chocolates & Confectionary
Issue: Delays in clearance due to testing and high costs involved for testing
8

4. EuroScan Exports pvt Ltd Product:

tea
Issue: change of labeling requirements recently and shipment being resent to
Colombo. Each new flavor tea need approval of the Tea Board India which involves high cost
FTA related issues
1. Fabric source restriction of Apparel applicable to 5 million pieces.
2. Quarantine issues with related to Floriculture Exports. (decorative items , due to lack of
knowledge in the market floriculture)
3. Quarantine clearance Issues for Fruits.

9. Trade promotional programs carried out by the Sri Lanka Export

Development Board

Market Exposure programme for floriculture product exporters Participation at Flore

Expo 2011 from 3rd to 5th March 2012
India Rubber Expo 2010
Technical Exposure program for Plastic products manufactures
India Fashion Forum
Sourcing Forum India
Networking session to promote Sri Lankan Products in India targeting Sri Lanka Expo 2012
Market in December 2011
India International Trade Fair
Chennai International Trade Fair
Ahaar Food Exhibition
Plastindia
Sri Lanka Trade Centre in Chennai 2004-2009

10. Proposed Trade Promotional Activities

Market Exposure Programme for Electronic Sector Exporters in East Asia & South Asia /
IPC APEX India - 19-22 May 2014

IITF 2014, 14th to 27th November 2014,New Delhi, India

India Rubber Expo 2015, 15th to 17th January, New Delhi, India