foreign trade - india
TRANSCRIPT
-
7/31/2019 Foreign Trade - India
1/43
FOREIGN TRADE
INDIA
Introduction
This project is a descriptive study of the trends in Indias foreign trade from the
period 1970-2011.
In the following pages, we have made an attempt to study, analyse, compare trends of Indias
exports and imports for the above mentioned period, the composition of exports & imports and
any change in the same thereon, direction of foreign trade to various countries and the
respective percentage changes of trade in each category of countries.
All data used during the course of work is from The Handbook of Statisticswww.rbi.org.in
Data have been divided into different, appropriate periods for the sake of comparison and
averages have been taken to give an overall view. Aggregates for commodity types not
considering the subheads, are taken in order to maintain simplicity and represent and analyse
the data in a better manner. Similarly, categories of countries and not every single one has been
accounted for. However, the break-ups for all of these have been provided, immediately
following the respective chart.
What is Foreign Trade?
Foreign trade can be considered a number of different things, depending on
the type of trade one is talking about. Generallyspeaking, foreign trade means trading goods and services that are destined
for a country other than their country of origin. Foreign trade is all about
imports and exports. The backbone of any foreign trade between nations is
those products and services which are being traded to some other location
outside a particular country's borders. Some nations are adept at producing
certain products at a cost-effective price. Perhaps it is because they have
the labor supply or abundant natural resources which make up the raw
SYBI
http://www.rbi.org.in/http://www.rbi.org.in/http://www.rbi.org.in/ -
7/31/2019 Foreign Trade - India
2/43
FOREIGN TRADE
INDIA
materials needed. No matter what the reason, the ability of some nations to
produce what other nations want is what makes foreign trade work.
Important concepts and terms
OECD countries
The Organization for Economic Co-operation and Development (OECD) is an international
economic organization of 34 countries founded in 1961 to stimulate economic progress and
world trade. It is a forum of countries committed to democracy and the market economy,
providing a platform to compare policy experiences, seek answers to common problems,
identify good practices, and co-ordinate domestic and international policies of its members.
OPEC countries
OPEC (Organization of Petroleum Exporting Countries) is an intergovernmental
organization of 12 oil-producing countries made up of Algeria, Angola,
Ecuador,Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates,
and Venezuela. OPEC has maintained its headquarters in Vienna since 1965 and hosts regular
meetings among the oil ministers of its Member Countries.
Economic Liberalization in India
The economic liberalization in India refers to ongoing economic reforms in India that started
on 24 July 1991. In the 1980s, Prime MinisterP. V. Narasimha Rao initiated some reforms. In
1991, after India faced abalance of payments crisis, it had to pledge 20 tons of gold to Union
Bank of Switzerland and 47 tons to Bank of England as part of a bailout deal with
the International Monetary Fund (IMF). In addition, IMF required India to undertake a series of
structural economic reforms. As a result of this requirement, the government ofP. V.
Narasimha Rao and his finance ministerManmohan Singh (the present Prime Minister of India)
started breakthrough reforms, although they did not implement many of the reforms IMF
wanted. The new neo-liberalpolicies included opening for international trade and
investment, deregulation, initiation ofprivatization, tax reforms, and inflation-controlling
measures. The main objective of the government was to transform the economic
system from socialism to capitalism so as to achieve high economic growth
SYBI
http://en.wikipedia.org/wiki/International_organizationhttp://en.wikipedia.org/wiki/International_organizationhttp://en.wikipedia.org/wiki/Democracyhttp://en.wikipedia.org/wiki/Market_economyhttp://en.wikipedia.org/wiki/Algeriahttp://en.wikipedia.org/wiki/Algeriahttp://en.wikipedia.org/wiki/Angolahttp://en.wikipedia.org/wiki/Ecuadorhttp://en.wikipedia.org/wiki/Iranhttp://en.wikipedia.org/wiki/Iraqhttp://en.wikipedia.org/wiki/Kuwaithttp://en.wikipedia.org/wiki/Libyahttp://en.wikipedia.org/wiki/Nigeriahttp://en.wikipedia.org/wiki/Qatarhttp://en.wikipedia.org/wiki/Saudi_Arabiahttp://en.wikipedia.org/wiki/United_Arab_Emirateshttp://en.wikipedia.org/wiki/Venezuelahttp://en.wikipedia.org/wiki/Viennahttp://en.wikipedia.org/wiki/Microeconomic_reformhttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/P._V._Narasimha_Raohttp://en.wikipedia.org/wiki/Balance_of_paymentshttp://en.wikipedia.org/wiki/Union_Bank_of_Switzerlandhttp://en.wikipedia.org/wiki/Union_Bank_of_Switzerlandhttp://en.wikipedia.org/wiki/Bank_of_Englandhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/P._V._Narasimha_Raohttp://en.wikipedia.org/wiki/P._V._Narasimha_Raohttp://en.wikipedia.org/wiki/Manmohan_Singhhttp://en.wikipedia.org/wiki/Prime_Minister_of_Indiahttp://en.wikipedia.org/wiki/Neoliberalismhttp://en.wikipedia.org/wiki/Deregulationhttp://en.wikipedia.org/wiki/Privatizationhttp://en.wikipedia.org/wiki/Privatizationhttp://en.wikipedia.org/wiki/Economic_systemhttp://en.wikipedia.org/wiki/Economic_systemhttp://en.wikipedia.org/wiki/Socialist_economicshttp://en.wikipedia.org/wiki/International_organizationhttp://en.wikipedia.org/wiki/International_organizationhttp://en.wikipedia.org/wiki/Democracyhttp://en.wikipedia.org/wiki/Market_economyhttp://en.wikipedia.org/wiki/Algeriahttp://en.wikipedia.org/wiki/Angolahttp://en.wikipedia.org/wiki/Ecuadorhttp://en.wikipedia.org/wiki/Iranhttp://en.wikipedia.org/wiki/Iraqhttp://en.wikipedia.org/wiki/Kuwaithttp://en.wikipedia.org/wiki/Libyahttp://en.wikipedia.org/wiki/Nigeriahttp://en.wikipedia.org/wiki/Qatarhttp://en.wikipedia.org/wiki/Saudi_Arabiahttp://en.wikipedia.org/wiki/United_Arab_Emirateshttp://en.wikipedia.org/wiki/Venezuelahttp://en.wikipedia.org/wiki/Viennahttp://en.wikipedia.org/wiki/Microeconomic_reformhttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/P._V._Narasimha_Raohttp://en.wikipedia.org/wiki/Balance_of_paymentshttp://en.wikipedia.org/wiki/Union_Bank_of_Switzerlandhttp://en.wikipedia.org/wiki/Union_Bank_of_Switzerlandhttp://en.wikipedia.org/wiki/Bank_of_Englandhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/P._V._Narasimha_Raohttp://en.wikipedia.org/wiki/P._V._Narasimha_Raohttp://en.wikipedia.org/wiki/Manmohan_Singhhttp://en.wikipedia.org/wiki/Prime_Minister_of_Indiahttp://en.wikipedia.org/wiki/Neoliberalismhttp://en.wikipedia.org/wiki/Deregulationhttp://en.wikipedia.org/wiki/Privatizationhttp://en.wikipedia.org/wiki/Economic_systemhttp://en.wikipedia.org/wiki/Economic_systemhttp://en.wikipedia.org/wiki/Socialist_economics -
7/31/2019 Foreign Trade - India
3/43
FOREIGN TRADE
INDIA
and industrialize the nation for the well-being of Indian citizens. Today India is mainly
characterized as a market economy.
Indias Foreign Trade 1970 to 1981
The above chart represents Indias foreign trade from the financial year 1970-71 to 1980-
81.The X-axis represents the time period and the Y-axis, the amount of Rupees in crores. As
we observe, there has been a trade deficit for all years except 1972-73 & 1976-77.In 1972-73,
exports increased by 22.6% thus causing a trade surplus. Part of the explanation for increase in
exports in 1972-73 lied in certain temporary factors like credit financed export to Bangladesh.
Despite significant efforts at import liberalization, imports decreased by 32.28% which led to a
trade surplus of 68.9
SYBI
http://en.wikipedia.org/wiki/Industrializehttp://en.wikipedia.org/wiki/Market_economyhttp://en.wikipedia.org/wiki/Industrializehttp://en.wikipedia.org/wiki/Market_economy -
7/31/2019 Foreign Trade - India
4/43
FOREIGN TRADE
INDIA
Indias Foreign Trade 1980 to 1991
The above chart represents Indias foreign trade from the financial year
1980-81 to 1990-91.The exports remained sluggish due to internal
constraints and an unfavorable international environment. As a result the
trade deficit during 1980-81 was Rs 5838.4 crore as against Rs 2724.2
crore in 1979-80 and a much lower figure of Rs 1084.6crore in the year
1978-79.The bulk of increase in trade deficit was on account of the rise inthe value of imports since 79-80. A major reason for this was the sharp
SYBI
-
7/31/2019 Foreign Trade - India
5/43
FOREIGN TRADE
INDIA
escalation in oil and other prices. Nearly 60% of Indias imports accounted
for oil , fertilizer, edible oil and steel.
Indias Foreign Trade 1990 to 2001
The above chart represents Indias foreign trade from the financial year
1990-91 to 2000-01.All the years experience a trade deficit. However, the
trade balance in the year 1993-94 was only Rs.3349.9 crore. This was the
fruit of the initial array of reforms. Also The Export-Import Policy announced
on April 1, 1993 provided a greater thrust to exports from agriculture and
SYBI
-
7/31/2019 Foreign Trade - India
6/43
FOREIGN TRADE
INDIA
labour-intensive sectors. However, the graph also shows the highest trade
balance in the year 1999-2000 of Rs.55675.1 crore.
Indias Foreign Trade 2001 to 2011
SYBI
-
7/31/2019 Foreign Trade - India
7/43
FOREIGN TRADE
INDIA
The above chart represents Indias foreign trade from the financial year 2000-2001 to 2010
-2011. The chart shows increases in exports, imports as well as trade balances. The decade
begins with a trade deficit of Rs.27302 crore. Also, we see, the quantum of trade increasing
drastically from 2007 onwards with the highest trade deficit of Rs.533681 crore in the financialyear 2008-09. The gap between exports & imports (trade balance) has been more than ever in
last 3 to 4 years. The chart ends with a trade deficit of Rs.447840 crore in2010-11.
SYBI
-
7/31/2019 Foreign Trade - India
8/43
FOREIGN TRADE
INDIA
The above chart represents the proportions of various commodities to the total exports of India
for the period 1970-80 (average of 11 years taken). As the pie-chart shows, manufactured
goods contribute a good part of the total exports i.e.1471.5 which is 39% of the total exports.
This is followed by food and live animals whose contribution is 27% after which comes
miscellaneous manufactured articles.
SYBI
-
7/31/2019 Foreign Trade - India
9/43
FOREIGN TRADE
INDIA
The above chart represents the various proportions of different commodities in the total
exports of India for the 7 year period from 1980-87 (average of 7 years taken).There is not
much change in the proportions, manufactured goods contributing most (33%)followed by
food and live animals and miscellaneous manufactured articles. The total exports on an average
for the 7 year period was Rs.9740 crore.
SYBI
-
7/31/2019 Foreign Trade - India
10/43
FOREIGN TRADE
INDIA
The above chart represents the proportions of various commodities in Indias total exports for
the 12 year period 1987-1999 (average of 12 years taken).Textile and Textile Products form a
good part of the total exports (27%).The next highest share is that of agricultural products
(20%) followed by gems and jewellery (17%) and then engineering goods (15%).The total
exports is Rs.70108 crore. An important note here is the change in the composition of exports
from the earlier periods (1970-87).
SYBI
-
7/31/2019 Foreign Trade - India
11/43
FOREIGN TRADE
INDIA
The above chart represents the proportions of various commodities in the total exports of India
for the 12 year period 1999-2011 (average taken). Engineering goods form the highest share inthe total exports of 23% which is more than a lakh crore of rupees from the total of about 5
lakh crores. Textiles also contribute well to the total exports (16%).Chemical and petroleum
products form a share of 13% each in the total exports. A positive change in the composition of
exports as compared to the earlier decades is that not one commodity accounts for a major
share in the total exports (eg. manufactured goods in 70s or textiles in 90s), but there is a
balanced mix of various commodities claiming good share in the total exports.
TABLE 130 (b) : EXPORTS OF PRINCIPAL COMMODITIES RUPEES
I) Primary Products
SYBI
-
7/31/2019 Foreign Trade - India
12/43
FOREIGN TRADE
INDIA
I A) Agriculture and Allied Products
1) . Tea
2) Coffee
3) Rice
4) Wheat
5) Cotton Raw including Waste
6) Tobacco
7) Cashew including Cashew Nut Shell Liquid
8) Spices
9) Oil Meals
10) Fruits and Vegetables
11) Processed Fruits, Juices, Miscellaneous Processed Items
12) Marine Products
13)Sugar and Molasses
14) Meat and Meat Preparations
15) Other Agriculture and Allied Products
B) Ores and Minerals
1) Iron Ore
2) Mica
3) Other Ores and Minerals
II Manufactured Goods
1) A Leather and Manufactures
2) Chemicals and Related Products
3) Basic Chemicals, Pharmaceuticals & Cosmetics
4) Plastic and Linoleum Products
5) Rubber, Glass, Paints, Enamels and Products
6) Residual Chemicals and Allied Products
SYBI
-
7/31/2019 Foreign Trade - India
13/43
FOREIGN TRADE
INDIA
II CEngineering Goods
1) Iron & Steel
2) Manufacture of Metals
3) Machinery and Instruments
4) Transport Equipment
5) Electronic Goods
6) Other Engineering Goods
II D Textile and Textile Products
1) Cotton Yarn, Fabrics, Made-up, etc
2) Natural Silk Yarn, Fabrics, Made-up, etc.,incl. Silk Waste
3) Manmade Yarn, Fabrics, Made-up, etc
4) Manmade Staple Fiber
5) Woolen Yarn, Fabrics, Made-up, etc
6) Readymade Garments
7) Jute & Jute Manufactures
8) Coir & Coir Manufactures
9) Carpets
10) Carpet Handmade
11)Carpet Mill made
12) Silk Carpets
II E)Gems and Jewellery
II F) Handicrafts (excluding Handmade Carpets)
II G) Other Manufactured Goods
III Petroleum Products
IV Others (All Commodities)
SYBI
-
7/31/2019 Foreign Trade - India
14/43
FOREIGN TRADE
INDIA
The above chart represents the proportions of various commodities in Indias total imports for
the 12 year period 1987-1999 (average of 12 years taken).As clearly shown by the above chart,
the major chunk of Indias imports is that of Petroleum and Crude products. They form 35% of
the total imports of the country. Following Petroleum and Crude products, next in line are
Capital goods constituting 25% of total imports.
SYBI
-
7/31/2019 Foreign Trade - India
15/43
FOREIGN TRADE
INDIA
The above chart represents the proportions of various commodities in Indias total imports for
the 12 year period 1999-2011 (average of 12 years taken).The composition of Indias imports
havent changed much compared to the 12 year period 1987-1999, with Petroleum and Crudeproducts still contributing the most to the total imports. They form a good 33% of the total
imports which is more than a lakh of crores of Rupees. The second highest amount of imports
is contributed by two-Capital goods and Others with each category forming quarter on the
total Indian exports. Thus, the composition of Indias imports has more or less remained the
same throughout.
SYBI
-
7/31/2019 Foreign Trade - India
16/43
FOREIGN TRADE
INDIA
TABLE 132 (b) : IMPORTS OF PRINCIPAL COMMODITIES RUPEES
I Bulk Imports
I.A Petroleum, Crude and Products
I.B Bulk Consumption Goods
1. Cereals and Cereal Preparations
2. Edible Oils
3. Pulses
4. Sugar
I.C Other Bulk Items
1. Fertilizers
1 (a) Crude
1 (b) Sulphur and Unroasted Iron Pyrites
1 (c) Manufactured
2. Non-Ferrous Metals
3. Paper, Paper Boards, Manufactures including News Prints
4. Crude Rubber, including Synthetic and Reclaimed
5. Pulp and Waste Paper
6. Metalliferrous Ores, Metal Scrap, etc
7. Iron and Steel
II. Non-Bulk Imports
II.A Capital Goods
1. Manufactures of Metals
2. Machine Tools
3. Machinery except Electrical and Electronic
4. Electrical Machinery except Electronic
5. Electronic Goods
6. Computer Goods
SYBI
-
7/31/2019 Foreign Trade - India
17/43
FOREIGN TRADE
INDIA
7. Transport Equipment
8. Project Goods
II.B Mainly Export Related Items
1. Pearls, Precious and Semi-Precious Stones
2. Organic and Inorganic Chemicals
3. Textile Yarn, Fabrics, Made-Ups, etc
4. Cashew Nuts
II.C Others
1. Gold and Silver
1 (b) Silver
2. Artificial Resins and Plastic Materials, etc
3. Professional, Scientific Controlling Instruments, Photographic Optical Goods
4. Coal, Coke and Briquettes, etc
5. Medicinal and Pharmaceutical Product
6. Chemical Materials and Products
7. Non-Metallic Mineral Manufactures
8. Others
SYBI
-
7/31/2019 Foreign Trade - India
18/43
FOREIGN TRADE
INDIA
Invisibles Trade
SYBI
-
7/31/2019 Foreign Trade - India
19/43
FOREIGN TRADE
INDIA
The above chart represents Indias foreign trade in invisibles. Data from 1987-2011 has been
divided into four 6 year periods as follows: 1987-1993 (referred to as Period 1 hereon), 1993-
1999 (Period 2), 1999-2005 (Period 3) and 2005-2011 (Period 4). The above line graph shows
trends of the various categories of invisibles. A glance at the graph shows clear comparisonbetween the four above-mentioned periods with respect to the net amount of each category.
Period 1:
The net amount of all categories of invisibles in Period 1 lies in the same range.
Period 2:
In Period 2, the net of income decreases to 11948.Net Private Transfers increase to
33595.Official transfers remain in the same range while net Invisibles increase to 26205.
Period 3:
Period 3 sees great changes with net Private Transfers reaching 75945 and Invisibles reaching
87144.Not much change in net Income and net Official transfers are seen.
Period 4:
Period 4 witnesses the greatest changes in net non-factor services, private transfers &
invisibles. Their respective amounts are: 171204, 184016 & 319688. The net income decreases
to 36420. Net official transfers remain in the same range.
SYBI
-
7/31/2019 Foreign Trade - India
20/43
FOREIGN TRADE
INDIA
TABLE 145: INVISIBLES BY CATEGORY OF TRANSACTIONS RUPEES
I.A) Non-factor Services, Net (I.A.1 to I.A.5)
I.B) Non-factor Services, Receipts (I.B.1 to I.B.5)
I.C) Non-factor Services, Payments (I.C.1 to I.C.5)
I.A.1) Travel, Net
I.B.1) Travel, Receipts
I.C.1) Travel, Payments
I.A.2) Transportation, Net
I.B.2) Transportation, Receipts
I.C.2) Transportation, Payments
I.A.3) Insurance, Net
I.B.3) Insurance, Receipts
I.C.3) Insurance, Payments
I.A.4) G.n.i.e., Net
I.B.4) G.n.i.e., Receipts
I.C.4) G.n.i.e., Payments
I.A.5) Miscellaneous, Net
I.B.5) Miscellaneous, Receipts
I.C.5) Miscellaneous, Payments
II.Income, Net
II.Income, Receipts
II.Income, Payments
II.A.1.Investment Income, Net
II.A.1.Investment Income, Receipts
II.A.1.Investment Income, Payments
II.A.2.Compensation of Employees, Net
II.A.2.Compensation of Employees, Receipts
SYBI
-
7/31/2019 Foreign Trade - India
21/43
FOREIGN TRADE
INDIA
II.A.2.Compensation of Employees, Payments
III.Private Transfers, Net
III.Private Transfers, Receipts
III.Private Transfers, Payments
IV.Official Transfers, Net
IV.Official Transfers, Receipts
IV.Official Transfers, Payments
V.Invisibles, Net (I to IV)
V.Invisibles, Receipts (I to IV)
V.Invisibles, Payments (I to IV)
Direction of Foreign Trade
SYBI
-
7/31/2019 Foreign Trade - India
22/43
FOREIGN TRADE
INDIA
The above chart represents Indias foreign trade with OECD countries. The time period is
divided into three 8-year periods namely, 1987-1995(referred hereon as Period 1), 1995-
2003(Period 2) and 2003-2011(Period 3).The increase in exports from Period 1 to Period 2 is
252% and the corresponding figure for imports is 211%. Thus we see, both exports & imports
have grown consistently. Comparing period 3 to Period 2, exports have increased by 183% and
imports, by 267%. Thus, exports have not increased as much as the imports have.
SYBI
-
7/31/2019 Foreign Trade - India
23/43
FOREIGN TRADE
INDIA
The above chart represents Indias foreign trade with OPEC countries. The time period is
divided into three 8-year periods namely,1987-1995(referred hereon as Period 1) , 1995-
2003(Period 2) and 2003-2011(Period 3).Considering exports, there has been an tremendous
increase by 391% from Period 1 to Period 2 with only a modest increase in the imports (relative
to the exports) by 195% . Further, from Period 2 to Period 3 exports increase by 567%.The
corresponding increase in imports is 827%. Such huge jumps in this period arise due to the
Liberalization policies in early 90s.
SYBI
-
7/31/2019 Foreign Trade - India
24/43
FOREIGN TRADE
INDIA
The above chart represents Indias foreign trade with Eastern European countries. The timeperiod is divided into three 8-year periods namely, 1987-1995(referred hereon as Period 1),
1995-2003(Period 2) and 2003-2011(Period 3).Comparing Period 2 to Period 1, exports have
increased by only 34% whereas imports have gone up by 84%. Further comparing Period 3 to
Period 2, exports have increased by 69% and imports take a huge jump by 333%.Thus,trade
with Eastern Europe has increased in the last decade with imports in the period 2003-2011
averaging to Rs.19,231 crores .
SYBI
-
7/31/2019 Foreign Trade - India
25/43
FOREIGN TRADE
INDIA
The above chart represents Indias foreign trade with developing countries. The time period is
divided into three 8-year periods namely,1987-1995(referred hereon as Period 1) , 1995-
2003(Period 2) and 2003-2011(Period 3).There has been a surge in exports in Period 2 from
Period 1 measuring an increase as much as 421%.The corresponding imports has been 384%.
Comparing Period 3 to Period 2, we see imports increasing by 416% which again, is a huge rise
whereas the imports by the same comparison increased by 598%. There has been a remarkable
increase in the quantum of trade with Developing countries.
SYBI
-
7/31/2019 Foreign Trade - India
26/43
FOREIGN TRADE
INDIA
The above chart represents Indias foreign trade with African countries. The time period is
divided into three 8-year periods namely, 1987-1995(referred hereon as Period 1), 1995-
2003(Period 2) and 2003-2011(Period 3). Studying the trends in exports over the three periods,
we find increases in exports by 557% from Period 1 to Period 2, 422% from Period 2 to Period
3. Following the same for imports, increases are: 514% from Period 1 to Period 2 and 271%
from Period 2 to Period 3. Thus, exports have improved considerably while imports not
increasing as much.
SYBI
-
7/31/2019 Foreign Trade - India
27/43
FOREIGN TRADE
INDIA
The above chart represents Indias foreign trade with Latin American countries. The time
period is divided into three 8-year periods namely, 1987-1995(referred hereon as Period 1) ,
1995-2003(Period 2) and 2003-2011(Period 3). Studying the trends in exports over the three
periods, we find increases in exports by 698% from Period 1 to Period 2, 554% from Period 2
to Period 3. Following the same for imports, increases are: 231% from Period 1 to Period 2
and 562% from Period 2 to Period.
SYBI
-
7/31/2019 Foreign Trade - India
28/43
FOREIGN TRADE
INDIA
The Direction of Foreign Trade
The OPEC countries include the following:-
1) Indonesia
2) Iraq
3) Iran
4) Kuwait
5) U.A.E.
6) Saudi Arabia
Eastern European countries includes:-
1) Romania
2) Russia
Developing countries includes:-
1) SAARC
2) Afghanistan
3) Bangladesh
4) Bhutan
5) Maldives
6) Nepal
7) Pakistan
8) Sri Lanka
9) China
10) Hong Kong
11) South Korea
12) Malaysia
13) Singapore
14) Thailand
SYBI
-
7/31/2019 Foreign Trade - India
29/43
FOREIGN TRADE
INDIA
All African countries include:-
1) Benin
2) Egypt
3) Kenya
4) South Africa
5) Sudan
6) Tanzania
7) Zambia
8) Other Latin American countries
9) Others/unspecified
A) Export of principal commodities
Food and live animals:-
1) Fish and fish preparation
2) Cereals and cereals preparations
3) Fruits and vegetables
4) Cashew kernel
Others
1) Coffee
2) Tea
3) Spices
4) Pepper black
5) Others
6) Feeding stuffs for animals
7) Sugar & honey
8) Others
Beverages & tobacco
SYBI
-
7/31/2019 Foreign Trade - India
30/43
FOREIGN TRADE
INDIA
1) Tobacco unmanufactured
2) Others
Crude materials inedible except fuels
1) Hides skin &fur skin Raw
2) Wool & other animal hair
3) Cotton textile fiber & waste
4) Jute textile fiber & waste
5) Mica
6) Iron ore & concentrates
7) Manganese ore
8) Lac
9) Others
Minerals fuels lubricants & related materials
1) Petroleum crude & partly refined
2) Petroleum products
3) Others
Animal & vegetable oils & fats
1) Fixed vegetables oils & fats
2) Others
Chemicals
1) Chemical elements & compounds
2) Dyeing tanning & coloring materials
3) Medical & pharmaceutical products
4) Essential oils & perfume material
5) Plastic Materials Regenerated Cellulose and Artificial Re
6) Others
SYBI
-
7/31/2019 Foreign Trade - India
31/43
FOREIGN TRADE
INDIA
Manufactured Goods Classified Chiefly by Material
1) Leather and Manufactures & Dressed Fur Skins
2) Cotton Manufactures Excluding Yarn and Thread & Clothing
3) Textile Yarn and Thread
4) Jute Manufactures Excluding Twist and Yarn
5) Woolen Carpets and Rugs
6) Pearls precious and Semi-Precious Stones
7) Manufacture of Metals
8) Iron and Steel
9) Non-Ferrous metals
10) Others
Machinery and Transport Equipment
1) Machinery Other than Electric
2) Electrical Machinery Apparatus & Appliance
3) Transport Equipment
Miscellaneous Manufactured Articles
1) Footwear
2) Clothing
3) Others
4) Commodities and Transactions
SYBI
-
7/31/2019 Foreign Trade - India
32/43
FOREIGN TRADE
INDIA
WORLD TRADE ORGANISATION
What is the WTO?
The World Trade Organization (WTO) is the only global international organization dealing
with the rules of trade between nations. At its heart are the WTO agreements, negotiated and
signed by the bulk of the worlds trading nations and ratified in their parliaments. The goal is to
help producers of goods and services, exporters, and importers conduct their business.
The WTO was born out of negotiations, and everything the WTO does is the result of
negotiations. The bulk of the WTOs current work comes from the 198694 negotiations called
the Uruguay Round and earlier negotiations under the General Agreement on Tariffs and Trade
(GATT). The WTO is currently the host to new negotiations, under the Doha Development
Agenda launched in 2001.
Where countries have faced trade barriers and wanted them lowered, the negotiations have
helped to open markets for trade. But the WTO is not just about opening markets, and in some
circumstances its rules support maintaining trade barriers for example, to protect consumers
or prevent the spread of disease.
At its heart are the WTO agreements, negotiated and signed by the bulk of the worlds trading
nations. These documents provide the legal ground rules for international commerce. They are
essentially contracts, binding governments to keep their trade policies within agreed limits.
Although negotiated and signed by governments, the goal is to help producers of goods and
services, exporters, and importers conduct their business, while allowing governments to meet
social and environmental objectives.
The systems overriding purpose is to help trade flow as freely as possible so long as there
are no undesirable side effects because this is important for economic development and
SYBI
-
7/31/2019 Foreign Trade - India
33/43
FOREIGN TRADE
INDIA
well-being. That partly means removing obstacles. It also means ensuring that individuals,
companies and governments know what the trade rules are around the world, and giving them
the confidence that there will be no sudden changes of policy. In other words, the rules have to
be transparent and predictable.
The WTO is run by its member governments. All major decisions are made by the membership
as a whole, either by ministers (who usually meet at least once every two years) or by their
ambassadors or delegates (who meet regularly in Geneva).
While the WTO is driven by its member states, it could not function without its Secretariat to
coordinate the activities. The Secretariat employs over 600 staff, and its experts lawyers,
economists, statisticians and communications experts assist WTO members on a daily basis
to ensure, among other things, that negotiations progress smoothly, and that the rules of
international trade are correctly applied and enforced.
Role of EXIM bank in Indias foreign tradeExport-Import Bank of India is the premier export finance institution of the country, set
up in 1982 under the Export-Import Bank of India Act 1981. Government of India
launched the institution with a mandate, not just to enhance exports from India, but to
integrate the countrys foreign trade and investment with the overall economic growth.
Since its inception, Exim Bank of India has been both a catalyst and a key player in the
promotion of cross border trade and investment. Commencing operations as a purveyor
of export credit, like other Export Credit Agencies in the world, Exim Bank of India has,
over the period, evolved into an institution that plays a major role in partnering Indian
industries, particularly the Small and Medium Enterprises, in their globalisation efforts,
through a wide range of products and services offered at all stages of the business cycle,
starting from import of technology and export product development to export production,
export marketing, pre-shipment and post-shipment and overseas investment.
SYBI
-
7/31/2019 Foreign Trade - India
34/43
FOREIGN TRADE
INDIA
Conclusion
In hindsight of this project work, a fair idea on the foreign trade over the period of 1970-2011
has been obtained. As far as the quantum of trade is concerned, India has come a long way
from exporting only 1,535 crores in 1970-71 to 11,57,475 crores in 2010-11. Imports too
follow similar trends. Despite this achievement, the supreme issue of trade deficit has persisted.
Huge amounts of trade deficits, leaving scars on our Balance of Payments, have nagged ourministers and the government for what seems an eternity. Figures show their failure in
implementing remedial measures for healing this deficit. One major source of this problem, as
observed in the course of our work, is the enormous amounts of imports of Petroleum and
Crude products. For resolving this, efforts have to be made in tapping our own oil resources
and thus becoming self-sufficient in oil production. Attempts for the same have already begun.
In conclusion, our only hope, on studying the present scenario is that, in years to come, we, as a
country may courageously strive to resolve this issue of trade deficit using appropriate
measures and policies, and thus bring about equilibrium in our international trade.
SYBI
-
7/31/2019 Foreign Trade - India
35/43
FOREIGN TRADE
INDIA
SYBI
Year Exports Imports Trade Balance
1970-71 1535.3 1634.2 -99
1971-72 1608.2 1824.5 -216.4
1972-73 1971.5 1867.4 104
1973-74 2523.4 2955.4 -432
1974-75 3328.8 4518.8 -1190
1975-76 4036.3 5264.8 -1228.5
1976-77 5142.7 5073.8 68.9
1977-78 5407.9 6020.2 -612.4
1978-79 5726.1 6810.6 -1084.6
1979-80 6418.4 9142.6 -2724.2
1980-81 6710.7 12549.2 -5838.4
Year Exports Imports Trade Balance
1980-81 6710.7 12549.2 -5838.4
1981-82 7805.9 13607.6 -5801.7
1982-83 8803.4 14292.7 -5489.4
1983-84 9770.7 15831.5 -6060.8
1984-85 11743.7 17134.2 -5390.5
1985-86 10894.6 19657.7 -8763.1
1986-87 12452 20095.8 -7643.8
1987-88 15673.7 22243.7 -6570.1
1988-89 20231.5 28235.2 -8003.7
1989-90 27658.4 35328.4 -7669.9
-
7/31/2019 Foreign Trade - India
36/43
-
7/31/2019 Foreign Trade - India
37/43
FOREIGN TRADE
INDIA
SYBI
-
7/31/2019 Foreign Trade - India
38/43
FOREIGN TRADE
INDIA
SYBI
Year/ Commodity
1970-1980
Year/ Commodity
1980-1987
Food and LiveAnimals
1033.6
Food and LiveAnimals
2189.33
Beverages andTobacco
84.7
Beverages andTobacco
191.7
Crude MaterialsInedible Except Fuels
435.6
Crude MaterialsInedible Except Fuels
943,33
Mineral FuelsLubricants and
Related Materials
23
Mineral FuelsLubricants and
Related Materials
854.09
Animal and VegetableOils and fats
29.3
Animal and VegetableOils and fats
36.04
Chemicals
97.4
Chemicals
378.6
Manufactured GoodsClassified Chiefly byMaterial
1471.5
Manufactured GoodsClassified Chiefly byMaterial
3192.76
Machinery andTransport Equipment
232.7
Machinery andTransport Equipment
638.91MiscellaneousManufactured Articles
349.1
MiscellaneousManufactured Articles
1287.23
Commodities andTransactions.
13
Commodities andTransactions.
28.19
Total Exports
3769.9
Total Exports
9740.14
-
7/31/2019 Foreign Trade - India
39/43
FOREIGN TRADE
INDIA
SYBI
Year/ Commodity 1987-1999 Year/ Commodity 1999-2011
Agriculture and AlliedProducts 12544.27
Agriculture and AlliedProducts 53252.39
Ores and Minerals 2395.33 Ores and Minerals 23322.38
Chemicals and RelatedProducts 7820.9
Chemicals and RelatedProducts 65489.16
Engineering Goods 9484.6 Engineering Goods 113180.1
Textile and TextileProducts 17672.98
Textile and TextileProducts 70050.49
Gems and Jewellery 11103.06 Gems and Jewellery 77290
Handicrafts (excludingHandmade Carpets) 1034.98
Handicrafts (excludingHandmade Carpets) 2159.71
Other ManufacturedGoods 496.2
Other ManufacturedGoods 4347.14
Petroleum Products 910.75 Petroleum Products 64700.85
Others (All Commodities) 764.88 Others (All Commodities) 16200.13
Total 70108 Total 501985
Year/ Commodity 1999-2011 Year/ Commodity 1987-1999
Petroleum, Crude andProducts
108555 Petroleum, Crude andProducts
192038
Bulk ConsumptionGoods
9625.72 Bulk ConsumptionGoods
14508.09
Capital Goods 79763.69 Capital Goods 129966.56
Mainly Export RelatedItems
44590.89 Mainly Export RelatedItems
71458.78
Others 80690.22 Others 133519.7
Total Imports/AllCommodities 360529
Total Imports/AllCommodities 631846.88
-
7/31/2019 Foreign Trade - India
40/43
FOREIGN TRADE
INDIA
SYBI
-
7/31/2019 Foreign Trade - India
41/43
FOREIGN TRADE
INDIA
SYBI
1
INTRODUCTION
2 IMPORTANT CONCEPTS & TERMS
3 INDIA EXPORTS, IMPORTS, TRADE BALANCES
4 EXPORT OF PRINCIPAL COMMODITIES
5 IMPORT OF PRINCIPAL COMMODITIES
6 EXPORT & IMPORT OF INVISIBLES
7 DIRECTION OF FOREIGN TRADE
8 CONCLUSION
-
7/31/2019 Foreign Trade - India
42/43
FOREIGN TRADE
INDIA
INDIA - FOREIGN
TRADE
SYBI
-
7/31/2019 Foreign Trade - India
43/43
FOREIGN TRADE
INDIA
Work by:
Thripthi acharya 1
Shilpa Bhagat -6
Albina Chettiar -7
Prajesh Nair -30
Amruta Sawant -37