EU - India Summit EU27 trade in goods with India increased by 20% in the first ten months of 2011 Trade in goods nearly in balance

STAT/12/22

9 February 2012

EU - India Summit
EU27 trade in goods with India increased by 20% in the first ten months of 2011
Trade in goods nearly in balance

EU27 trade in goods with India reached a peak in 2010, after the decrease recorded in 2009 which interrupted a period of growth since 2001. EU27 exports to India fell from 31.3 billion euro in 2008 to 27.4 bn in 2009, then rose to 34.8 bn in 2010. Imports decreased from 29.5 bn in 2008 to 25.4 bn in 2009, then increased to 33.2 bn in 2010. As a result, the EU27 trade surplus with India fell from 2.0 bn euro in 2009 to 1.6 bn in 2010.

The first ten months of 2011 showed continued growth in EU27 trade with India. Exports and imports both grew by 20% between the first ten months of 2010 and the same period of 2011, with exports amounting to 33.4 bn and imports to 33.3 bn. EU27 trade with India recorded a small surplus of 0.1 bn in the first ten months of 2011. Over the last decade, the share of India in EU27 trade has risen, reaching 2.7% of EU27 exports and 2.4% of EU27 imports in the first ten months of 2011. India is the EU27's 8th most important trading partner.

On the occasion of the 12th European Union - India summit, which will take place on 10 February in New Delhi, Eurostat, the statistical office of the European Union, issues data on trade and investments between India and the EU.

Germany, Belgium and the United Kingdom accounted for around 60% of exports to India

Among the EU27 Member States, Germany (8.8 bn euro or 26% of EU27 exports) was the largest exporter to India in the first ten months of 2011, followed by Belgium (6.6 bn or 20%), the United Kingdom (5.0 bn or 15%), Italy (3.1 bn or 9%) and France (2.5 bn or 7%). The United Kingdom (5.6 bn or 17% of EU27 imports) and Germany (5.5 bn or 17%) were the largest importers, followed by Belgium1 (4.7 bn or 14%), Italy (4.1 bn or 12%) and France (3.4 bn or 10%).

The largest surpluses in trade with India were observed in Germany (+3.2 bn) and Belgium (+1.9 bn), and the highest deficits in the Netherlands1 (-1.5 bn), Italy and Spain (both -1.0 bn).

Machinery and vehicles2 and other manufactured goods2 represented nearly 80% of EU27 exports to India in the first ten months of 2011, while other manufactured goods accounted for almost 50% of imports.

EU27 trade in goods with India

million euro

EU27 Member States trade in goods with India

million euro

EU27 trade in goods with India by product

million euro

A surplus of 2.2 bn in EU27 trade in services with India in 2010

In 2010, the EU27 exported 10.9 bn euro of services to India, while imports amounted to 8.7 bn, meaning that the EU27 had a surplus of 2.2 bn in trade in services with India, compared with a surplus of 1.7 bn in 2009 and 0.8 bn in 2008. The surplus in 2010 was mainly due to transportation (+1.7 bn), computer & information services and construction (both +0.3 bn), partly offset by a deficit in travel (-0.4 bn). India accounted for nearly 2% of total extra-EU27 trade in services.

EU27 trade in services with India

million euro

Continuing decrease of Indian FDI in the EU27

EU27 Foreign Direct Investment (FDI) flows in India decreased from 4.2 bn euro in 2007 to 3.4 bn in 2008, remained almost stable in 2009 and then increased to 4.7 bn in 2010, while Indian direct investment into the EU27 fell sharply from 10.1 bn in 2007 to 2.6 bn in 2008 and continued to decrease to 0.9 bn in 2009 and 0.5 bn in 2010.

EU27 FDI flows with India

(million euro)

• Extra-EU imports of some Member States (e.g. the Netherlands), and therefore their trade deficit, are over-estimated because of the “Rotterdam effect”, where goods destined for the rest of the EU arrive and are recorded in harmonised EU external trade statistics in the Member State where they are released for free circulation. This then has a positive effect on the external trade balances with India of those Member States to which the goods are re-exported, as these shipments would be recorded as intra-EU trade with the first Member State rather than extra-EU trade with India. To a lesser extent, Belgian trade figures are similarly over-estimated.

• Machinery and vehicles includes power generating and industrial machinery, computers, electric and electronic parts and equipment, road vehicles and parts, ships, airplanes and railway equipment.

Other manufactured goods include leather, rubber, wood, paper, textiles, metals, building fixtures and fittings, furniture, clothes, shoes and accessories, scientific instruments, clocks, watches and cameras.

• Other business services comprise merchanting and other trade-related services, operational leasing services and miscellaneous business, professional and technical services.