EU - India Summit

An EU27 surplus in trade in goods with India of 3.2 bn euro in 2007

Surplus of 2.4 bn in trade in services

Between 2000 and 2007, EU27 trade in goods with India more than doubled in value: exports rose from 13.7 billion euro to 29.5 bn, while imports increased from 12.8 bn to 26.3 bn. As a result, the EU27 surplus in trade with India increased from 0.8 bn in 2000 to 3.2 bn in 2007. This increased surplus was mainly due to a surplus in manufactured goods, which rose from 0.9 bn in 2000 to 4.7 bn in 2007. India accounted in 2007 for 2.4% of EU27 exports and 1.8% of EU27 imports, and was the EU27's 9^th most important trading partner.

On the occasion of the European Union - India summit, which will take place on 29 September in Marseille in France, Eurostat, the Statistical Office of the European Communities, issues data on trade and investments between India and the EU.

Germany and the United Kingdom largest EU27 trading partners of India

More than 80% of EU27 exports to India in 2007 were machinery and vehicles¹ and other manufactured articles¹, while other manufactured articles accounted for nearly 60% of imports. At the detailed level, the main EU27 exports to India were unworked diamonds and airplanes, while the main imports were worked diamonds.

Among the EU27 Member States, Germany (7.3 bn euro, 25% of EU exports) was by far the largest exporter to India in 2007, followed by Belgium (5.4 bn or 18%) and the United Kingdom (4.3 bn or 15%). The United Kingdom (5.3 bn or 20%) was the largest importer, followed by Germany (4.3 bn or 17%) and Italy (3.4 bn or 13%).

The largest surpluses in trade with India were observed in Germany (+3.0 bn euro), Belgium (+2.1 bn) and France (+1.3 bn), while the largest deficits were registered in Spain (-1.3 bn) and the United Kingdom (-1.0 bn).

EU27 Member States trade in goods with India

million euro

	Exports		Imports		Balance
	2000	2007	2000	2007	2000	2007
EU27	13 678	29 479	12 846	26 264	832	3 215
Belgium	3 467	5 401	1 732	3 318	1 735	2 083
Bulgaria	12	55	13	62	-1	-7
Czech Republic	84	402	81	183	3	219
Denmark	166	266	203	455	-37	-189
Germany	2 084	7 321	2 298	4 340	-213	2 981
Estonia	2	15	9	16	-7	-1
Ireland	110	169	119	243	-9	-75
Greece	45	47	126	463	-81	-416
Spain	212	728	748	2 033	-535	-1 304
France	1 031	3 334	1 266	2 035	-235	1 299
Italy	1 007	3 010	1 626	3 394	-618	-384
Cyprus	2	4	29	36	-28	-32
Latvia	1	8	5	22	-4	-14
Lithuania	4	10	19	23	-15	-13
Luxembourg	8	30	10	22	-2	8
Hungary	20	74	71	219	-51	-145
Malta	1	3	15	20	-15	-17
Netherlands2	549	1 595	929	2 094	-380	-499
Austria	131	538	97	200	34	338
Poland	52	119	152	392	-99	-273
Portugal	25	32	170	349	-144	-317
Romania	40	330	31	258	9	72
Slovenia	18	42	24	85	-6	-44
Slovakia	57	42	25	65	32	-23
Finland	318	454	66	143	252	311
Sweden	310	1 151	223	450	87	701
United Kingdom	3 920	4 299	2 759	5 342	1 161	-1 043
Total Extra-EU27	849 739	1 239 886	992 698	1 426 326	-142 959	-186 440
India / Total	1.6%	2.4%	1.3%	1.8%

EU27 trade in goods with India by product

million euro

	Exports		Imports		Balance
	2000	2007	2000	2007	2000	2007
Total	13 678	29 479	12 846	26 264	832	3 215
Primary products:	944	1 551	1 928	3 798	-983	-2 247
Food & drink	57	186	1 207	1 637	-1 150	-1 451
Crude materials	463	1 238	680	940	-217	298
Energy	424	126	40	1 220	383	-1 094
Manufactured goods:	11 795	27 001	10 848	22 318	947	4 683
Chemicals	1 276	2 479	1 141	2 969	135	-490
Machinery & vehicles1	4 067	13 069	1 206	3 734	2 861	9 336
Other manuf?d articles1	6 452	11 453	8 502	15 615	-2 049	-4 163
Other	939	927	70	148	869	779

Increasing EU27 surplus in trade in services

In 2007, the EU27 exported 9.0 bn euro of services to India, while imports amounted to 6.6 bn meaning that the EU27 had a surplus of 2.4 bn in trade in services with India, compared with a surplus of 0.6 bn in 2005 and 1.4 bn in 2006. The surplus in 2007 was mainly due to other business services (+1.8 bn) and transportation (+1.1 bn). The largest deficits were observed for travel (-0.9 bn) and computer & information services (-0.5 bn). India accounted for 1.7% of total extra-EU27 trade in services.

EU27 trade in services with India

million euro

	Credit			Debit			Net
	2005	2006	2007*	2005	2006	2007*	2005	2006	2007*
Total	5 438	6 978	8 992	4 801	5 548	6 616	638	1 430	2 376
of which:
Transportation	2 219	2 176	2 540	1 286	1 365	1 463	933	811	1 077
Travel	728	879	905	1 636	1 651	1 852	-907	-773	-947
Other services	2 438	3 920	5 536	1 872	2 529	3 280	566	1 391	2 257
of which:
Communications services	87	134	158	162	181	210	-76	-47	-52
Construction services	221	162	339	100	89	130	122	73	209
Insurance services	28	97	91	48	38	33	-20	59	58
Financial services	190	275	297	57	96	85	133	179	212
Computer and information services	186	281	393	530	714	894	-344	-433	-500
Royalties and license fees	94	184	305	23	21	58	70	163	248
Other business services	1 425	2 492	3 613	898	1 334	1 792	527	1 158	1 821
Personal cultural and recreational services	11	19	42	7	11	21	4	9	21
Government services other	197	277	299	47	46	58	150	232	240
Total extra-EU27	402 856	441 556	501 427	349 989	373 059	413 036	52 867	68 497	88 391
India / total extra-EU27	1.3%	1.6%	1.8%	1.4%	1.5%	1.6%

* Provisional data

More than 9 billion of Indian FDI in the EU27 in 2007

EU27 Foreign Direct Investment (FDI) in India grew from 2.5 bn euro in 2005 to 10.9 bn in 2007, while Indian direct investment into the EU27 increased from 0.5 bn in 2006 to 9.5 bn in 2007.

EU27 FDI flows with India

(million euro)

	2005	2006	2007*
EU27 FDI in India (outward)	2 452	2 542	10 947
Indian FDI in the EU27 (inward)	547	484	9 464
Net EU27 FDI flows (outward minus inward)	1 905	2 058	1 483

* Provisional data

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

2. Dutch imports and therefore the 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 Dutch ports. 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 Netherlands rather than extra-EU trade with India.