india foreign trade

INDIA FOREIGN TRADE ANALYSIS 1970-2014

- Nigam Raj,Sharda University

The trend of GNPfc and Per capita GNPfc

- Nigam Raj,Sharda University- Nigam Raj,Sharda University

EXPLAIN GNP AND GNP PER CAPITA

• GNP

• Gross national product (GNP) is a broad measure of a nation's total economic activity. GNP is the value of all finished goods and services produced in a country in one year by its nationals

GNP is the total value of all final goods and services produced within a nation in a particular year, plus income earned by its citizens (including income of those located abroad), minus income of non-residents located in that country. Basically, GNP measures the value of goods and services that the country's citizens produced regardless of their location.

• GNP PER CAPITA ECONOMICS the total value of all the

goods and services produced by a country in a year including income from foreign investments, divided by the number of people living there: For countries which have a lot of foreign investments, GNP per capita is a more accurate economic indicator

• The GNP (Gross National Product) per capita of a country shows the average value of goods and services produced by each person each year. This is then divided by the total population to get an average earnings per person.


http://www.investorwords.com/11320/total.html

http://www.investorwords.com/5209/value.html

http://www.investorwords.com/9693/final.html

http://www.investorwords.com/2209/goods.html

http://www.investorwords.com/6664/service.html

http://www.investorwords.com/2400/income.html

http://www.investorwords.com/10429/non_resident.html

by-Nigam Raj, Sharda University

TREND OF GNP AND GNP PER CAPITA

• GNP • GNP PER CAPITA

2013-1

4

2011-1

2

2009-1

0

2007-0

8

2005-0

6

2003-0

4

2001-0

2 0.00

10000.00

20000.00

30000.00

40000.00

50000.00

60000.00

70000.00

GNP at Market Prices

GNP at Market Prices

2013-1

4

2012-1

3

2011-1

2

2010-1

1

2009-1

0

2008-0

9

2007-0

8

2006-0

7

2005-0

6

2004-0

5

2003-0

4

2002-0

3

2001-0

2

2000-0

1

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

Per Capita GNP at factor cost (Rupees)

Per Capita GNP at factor cost (Rupees)



DIFFERENCE IN TREND FROM 2000 TO 2014

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

0.00

10000.00

20000.00

30000.00

40000.00

50000.00

60000.00

GNP at Factor CostPer Capita GNP at factor cost (Rupees)


REASON OF DIFFERENCE IN GNP AND GNP PER CAPITA

• The reason is that GNP can moved because of a change in the export performance of the MNCs or a change in the profit repatriation decisions of the MNCs. The decisions of the MNCs have two avenues to impact our GNP figures. The assumption may be that one will offset the other but that is not necessarily the case.

by-Nigam Raj, Sharda

University


ROLE OF Export & Import in National Income


1971

-72

1973

-74

1975

-76

1977

-78

1979

-80

1981

-82

1983

-84

1985

-86

1987

-88

1989

-90

1991

-92

1993

-94

1995

-96

1997

-98

1999

-00

2001

-02

2003

-04

2005

-06

2007

-08

2009

-10

2011

-12

2013

-14

-15000.00

-10000.00

-5000.00

0.00

5000.00

10000.00

15000.00

20000.00

25000.00

30000.00

Trade Balace Import Export

Year

Rupe

ss B

illion


3 stages of change in economy1)Pre-industrial society:• Major economic activity: Agriculture, forestry, fishing, mining• Technology: low; reliance on muscle power• Occupation ; seasonal, unskilled jobs, limited mobility• Social base: Societal living family relationships• Services: Money lending, personal and household employment , trading, bartering,

warfare 2)Industrial society:

• Major economic activity: Processing, manufacturing, • Technology: power, machines, automation• Occupation: Semi-skilled, technicians• Social base; Union, focus on accumulation of goods, dehumanizing of jobs• Services: Warehousing, transportation, marketing, restaurants, banking, warfare

3)post-industrial society:• Major economic activity: Information and knowledge, healthcare, recreation• Technology: High professional skills, Research and Development, Professional

education• Occupation: Scientists, Data management, professionals, knowledge work • Social base: IndividualismServices: Trade, Finance, Real estate, Health, Research, Insurance, Recreation, Education


Until the liberalisation of 1991, India was largely and intentionally isolated from the world markets, to protect its economy and to achieve self-reliance. Foreign trade was subject to import tariffs, export taxes and quantitative restrictions, while foreign direct investment (FDI) was restricted by upper-limit equity participation, restrictions on technology transfer, export obligations and government approvals; these approvals were needed for nearly 60% of new FDI in the industrial sector. The restrictions ensured that FDI averaged only around $200 million annually between 1985 and 1991; a large percentage of the capital flows consisted of foreign aid, commercial borrowing and deposits of non-resident Indians. India's exports were stagnant for the first 15 years after independence, due to general neglect of trade policy by the government of that period. Imports in the same period, due to industrialisation being nascent, consisted predominantly of machinery, raw materials and consumer goods.


http://en.wikipedia.org/wiki/Foreign_direct_investment

http://en.wikipedia.org/wiki/Non-resident_Indian_and_Person_of_Indian_Origin

Since liberalisation, the value of India's international trade has increased sharply, with the contribution of total trade in goods and services to the GDP rising from 16% in 1990–91 to 47% in 2008–10. India accounts for 1.44% of exports and 2.12% of imports for merchandise trade and 3.34% of exports and 3.31% of imports for commercial services trade worldwide.[200] India's major trading partners are the European Union, China, the United States of America and the United Arab Emirates. In 2006–07, major export commodities included engineering goods, petroleum products, chemicals and pharmaceuticals, gems and jewellery, textiles and garments, agricultural products, iron ore and other minerals. Major import commodities included crude oil and related products, machinery, electronic goods, gold and silver.

In November 2010, exports increased 22.3 % year on year to Rs 850.63 billion (US$ 14 billion), while imports were up 7.5 % @ Rs 1251.33 billion (US$ 21 billion). Trade defilict for the same month dropped from Rs 468.65 billion (US$7.8 billion) in 2009 to Rs 400.7 billion (US$6.7 billion) in 2010

to 850.63 billion (US$14 billion)


http://en.wikipedia.org/wiki/Economy_of_India#cite_note-WTO_profile-200

http://en.wikipedia.org/wiki/United_Arab_Emirates

http://en.wikipedia.org/wiki/Indian_rupee

ROLE OF MERCHENDIZE AND INVISIBLES IN BOP OF INDIA


• The balance of Payment is the method countries use to monitor all international monetary transactions at a specific period of time.

• The balance of payments classifies these transactions in two accounts – current account

capital account.


1990-91

1991-92

1992-93

1993-94

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

-15000.00

-10000.00

-5000.00

0.00

5000.00

10000.00

15000.00

20000.00

25000.00

30000.00

35000.00

Export Import Trade balance Invisibles, Current account Capital account

Years

Rupe

ss B

illio

n


Brief analysis on the Role Of Merchandise, Current, Capital, in BOP of India

• Indian Economy is divided in to 3 parts pre-Industrialization, Industrialization and postInd

• In year between 1990-2004 the import and export of goods is aprox same. This will show on the BOP of indIa in netural or positive.

• But after the 2004 the import of goods and services is more than the export of goods and services. The import goes around Rs 200000 Billion. And exports reaches to only Rs 10000 Billion this show that India is huge dependent of the outsides goods means India is dependent on


CONTT…

• the other country. The more import and less export show the negative Trade Balance in BOP of India.

• Of this reason, the current a/c which include the a/c of export and import and unilateral transfer, it goes negative of worth Rs -5000 Billion in year 2012-2013.

• It means the Economy of India sells more Foreign currency and purchase less foreign currency.


Export

- Nigam Raj- Nigam Raj,Sharda University

Top 5 product exported by India

Total export by india accounts to $18941.82billion1. Refined Petroleum (19%)2. jewellery(6.5%)3. packaged mediaments(4.0%)4. Rice(2.2%)5. Cars(1.8%)6. others(66.5%)

19%7%4%2%2%67%


Refined Petroleum(HS:2710)

Top 5 Countries that export Refined Petroleum

1. Netherlands (8.4%)

2. Russia (8.2%)

3. Singapore (7.2%)

4. India (6.1%)

5. United States (6.0%)

6. others(64.1%)India ranks 4th in exporting Refined Petroleum.

And it accounts to

8%8%7%6%

6%64%


Jewellery(HS:7113)

Top 5 Countries that export Jewellery

1.India (23%)

2.China (9.8%)

3.Italy (8.0%)

4.Switzerland (7.5%)

5. United Arab Emirates (7.2%)

6.others(44.5%)

India ranks 1st in exporting Jewellery

23%

10%8%

8%7%

45%


Packaged Medicaments(HS:3004)

Top 5 Countries that export Packaged Medicaments

1. Germany (14%)

2. United States (11%)

3. Switzerland (8.9%)

4. France (8.2%)

5. United Kingdom (6.6%)

6. others(51.3%)

India ranks 10th in exporting Packaged Medicaments (3.3%)

14%11%9%

8%7%

51%


Rice(HS:1006)

Top 5 Countries that export Rice

1.India (26%)

2.Thailand (20%)

3.Vietnam (14%)

4.United States (8.7%)

5. Pakistan (8.4%)

6. others(22.9%)

India ranks 1st in exporting Rice.

26%

20%14%

9%8%

23%


Cars(HS:8703)

Top 5 Countries that export Cars

1. Germany (23%)

2. Japan (16%)

3. United States (8.2%)

4. Canada (7.4%)

5. South Korea (6.6%)

6. others(38.8%)

India ranks 18th in exporting Cars (0.75%)

23%

16%8%7%7%

38%


ImportBy Nigam Raj


Top 5 Product Imported by INDIA

1.CURDE PETROLEUM 30%2.GOLD 11%3.COAL 3.5%4.DIAMOND 3.3%5.PETROLEUM GAS 2.8%6.Other products 49 %

- Nigam Raj

1 CURDE PETROLEUM ; 30%

2 Gold; 11%

3 Coal; 4%

4 Diamond; 3%5 Petroleum Gas; 3%

6 other products; 49%

- Nigam Raj

1.Crude Petroleum (HS CODE:1217 )TOP FIVE COUNTRY IMPORT (HS 1217) Products

1 china ; 14.00%

2 india; 9.90%

3 japan; 9.90%4 south korea;

7.20%5 usa; 7.00%

6 other country ; 52.00%

Total % of world Consumptions

Out of 100 % China Import 14% of total world consumption of crude petroleum and after China ,India is the 2nd world largest crude oil Importer by the total contribution of 9.9 % of worth $133,378,245,867.84.

- Nigam Raj

2.GOLD ( HS 1190)TOP FIVE COUNTRY IMPORT (HS 1190) Products

1 switzerland; 15.00%

2 china; 15.00%

3 India; 15.00%

4 hongkong ; 14.00%5 USA, 4.60%


The 2nd top-most imported goods in India is Gold.India import 11% of total world consumptions of gold in the world & India is the 3rd Largest Importer of Gold around the Globe.

- Nigam Raj

TOP FIVE COUNTRY IMPORT (HS 2701) Products

Coal briquetts is the top 3rd products which is imported by India. In the total world consumption, INDIA contribute 11% of total world consumption of worth $15,757,271,686.43.

India is the 3rd largest Importer of Coal.

3.Coal Briquettes (HS: 2701)

1 japan ; 17.00%

2 china; 16.00%

3 India; 11.00%

4 south korea; 9.60%

5 tiawan; 5.50%



- Nigam Raj


Diamond is the 4th largest product which is importd in INDIA. and India is the world largest importer of diamond.India import 30% of total world diamond. Of worth $14,633,290,967.38

4.Diamond (HS: 7102)

1 India; 30.00%

2 Bel-gium;

19.00%3 UK; 16.00%

4 South Africa; 6.90%

5 Switzer-

land; 5.80%



- Nigam Raj


Petroleum gas is the 5th top products imported by India. And India is in 10th position entire globe . India import only 3% of total world petroleum gas.

5.Petroleum Gas (HS:2711)

1 Japan; 19.00%

2 Germany; 14.00%

3 South Korea; 7.40%4 Italy; 7.30%

5 china; 4.10%




Conclusions

3 stages of change in Indian Economy are :• Pre-Industrial• Industrial• Post-Industrial



Top 5 Products exported by India 1.Refined Petroleum (19%) 2.Jewellery (6.5%) 3.Packaged Medicaments (4.0%)4.Rice(2.2%)5. Cars (1.8%) India ranks 4th in exporting Refined Petroleum.India ranks 1st in exporting Jewellery India ranks 10th in exporting Packaged Medicaments (3.3%)India ranks 1st in exporting Rice.India ranks 18th in exporting Cars (0.75%)



TOP FIVE PRODUCTS IMPORTED BY INDIACURDE PETROLEUM 30%GOLD 11%COAL 3.5%DIAMOND 3.3%PETROLEUM GAS 2.8% India is the 2nd wolrd lagest crude oil consumers by the total contribution of 9.9 % of worth $133,378,245,867.84. The 2nd most imported goods in india is Gold.India import 11% of total world consumptions of gold in the world. Coal briquetts is the top 3rd products which is imported by India. In the total world consumption, INDIA contribute 11% of total world consumption of worth $15,757,271,686.43.


Diamond is the 4th largest product which is importd in INDIA. and India is the world largrest importer of diamond.India import 30% of total world diamond. Of worth $14,633,290,967.38 Petroleum gas is the 5th top products imported by India. And India is in 10th position entire globe . India import only 3% of total world petroleum gas. The economy of Indiais the tenth-largest in the world by nominal GDP and the third-largest by purchasing power parity Total Exports = 18941.82 billionTotal Imports = 27141.82 billionTrade Balance = -8200 billion


India’s GLOBAL RANK INExporting is 17th

Importing is 10th

Hence, its clear that India is a good importer.


Thank You!!!

india foreign trade

Economy & Finance