india's foreign trade vasanth kumar,c. palb3104 jr m.sc agril economics macro economics...
DESCRIPTION
India's foreign Trade a ppt Prepared during M.Sc course work Macro Economics by Vasanth kumar,C. M.Sc Agril.EconomicsTRANSCRIPT
1
2
India’s Foreign Trade
Submitted to,Dr.G.S.MahadevaiahAssociate Professor
Dept. of Agril Economics Presented by,Vasanth kumar,c
PALB 3104Jr.M.Sc Agril Economics
3
Flow Of Presentation
4
IntroductionCurrent status of Exports and ImportsNeed and importance.How Foreign Trade affects the Indian
marketsFeatures of Indian Foreign Trade Composition of Foreign tradeAdvantages and Limits of Foreign tradeForeign trade policyConclusion
5
Introduction
6
Introduction to India's Foreign Trade
Foreign trade is exchange of capital, goods, and services
across international borders or territories. In most countries, it
represents a significant share of gross domestic product (GDP).
Foreign Trade is one of the significant macro fundamental
variable of an economy. India was predominantly a primary goods
exporting and mainly an industrial goods importing country
In 1950s, India's share in the world trade was 1.78 per cent
which was decline to 0.59 per cent in 1990 and continues to remain
around 0.60 per cent. India's share in world exports was 0.8 per cent
in 2006
7
Foreign trade transactions are classified under three categories:
Import Trade Export TradeNet Exports
8
Foreign trade Includes:-
Involvement of different monitery units.Imposition of restrictions in import and
export by various countries.Imposition of restrictions on release of
foreign currencies existence of multiple regulations.
9
Current status of India’s exports and imports
EXPORTS
Exports during January, 2013 were valued at US $ 25587.08
million (Rs.138981.60 crore) which was 0.8 per cent higher in Dollar
terms (6.67 per cent higher in Rupee terms) than the level of US $
2379.77 million (Rs. 1305425.33 crore) during January, 2012.
Cumulative value of exports for the period April-January
2012 -13 was US $ 239687.01million (Rs 1305420.39) as against US
$ 251930.14 million (Rs 1196962.33 crore) registering a negative
growth of 4.86 per cent in Dollar terms and growth of 9.06 per cent in
Rupee terms over the same period last year
10
11
Major Export Items(USD million)
12
IMPORTS
Imports during January, 2013 were valued at US $ 45583.03 million
(Rs.247593.93 crore) representing a growth of 6.12 per cent in Dollar
terms and growth of12.28per cent in Rupee terms over the level of
imports valued at US $ 42955.87 million (Rs. 220514.09 crore) in
January, 2012.
Cumulative value of imports for the period April-January, 2012-13
was US $ 406855.13 million (Rs. 2215115.46 crore) as against US $
406820.28 million (Rs. 1934946.96 crore) registering a positive
growth of 0.01 per cent in Dollar terms and growth of 14.48 per cent
in Rupee terms over the same period last year
13
14
Major Import Items (USD million)
15
Deemed Exports” refer to those transactions in which goods supplied do not leave country, and payment for such supplies is received either in Indian rupees or in free foreign exchange
Deemed Exports
16
17
How Foreign Trade Affects The Indian Markets?
18
Foreign trade affects the domestic trade and markets of a country and India.
India is a part of the globalization and any effect, positive or negative, on the global trade is bound to affect the Indian markets.
It was until 1991 that India followed a socialist-democratic approach which kept it uncommitted to the foreign countries.
India, like other countries participating in globalization, has been exporting and importing products and services to and from other countries.
19
20
Reason for the Rise of Foreign Trade
Large Scale Production
Degree of Self-Sufficiency
Geographic Factors
Occupational Distribution
Means of Transportation
Compensating the Production
21
Composition of India's Foreign trade
Composition of foreign trade means major commodity or sectors in
which India is doing export and import
India is a very old participant in world trade
Its participation have been promoted by the opening of Suez Canal
and speedy development of the ship building industry supplemented
by the spread of industrial revolution in Europe and fast expansion
of Indian railways
22
Composition of India’s exportsFuel and lubricants
Agricultural &allied products
Manufactured items
Ores and Minerals
Composition of Exports
23
24
Composition of India's Imports
In 1947-48 the main items of India's imports were
machineries, oil, grains, cotton, cutlery, hardware implements,
chemicals, etc. They constituted 70 per cent of India's imports.
After that due to the emphasis on industrialization during the
second 5-Year plan necessitated the imports of capital goods.
25
Composition of India’s ImportsOthers
Petroleum products
Capital goods
Composition of Imports
26Source :Economic survey 2011-12
27
28
29
Union Commerce Ministry, GoI announces
integrated FTP every five year also called
EXIM policy.
policy updated every year with some
modifications & new schemes.
FTP which was announced on August 28,
2009 is an integrated policy for the period
2009-14.
What is Foreign Trade Policy?
30
Foreign Trade Policy 2009-14
Short Term Objectives:arrest and reverse the declining trend of exports. provide support to those sectors which have been hit
badly by recession.
Medium term Policy Objectives :achieve an Annual Export growth of 15% by March
2013. achieve Annual Export growth of around 25% by 2014.
Long Term Objective :doubling India’s share in Global Trade by 2020.
31
Composition of India’s Foreign Trade has undergone a positive change.
It is a remarkable achievement that India has transformed itself from a predominantly primary goods exporting country into non primary goods exporting country.
Under Imports also India’s dependence on food grains and capital goods has declined.
India needs to try diversifying its exports.
conclusion
32