ECONOMICS

Introduction

•Goods & Services consumed in one country which has been bought from another country

IMPORT

• Goods and services that are produced domestically and sold to buyers in another country

EXPORT

Balance of Trade

It represents a difference in value for import and export for a country

Balance of Trade

A country has demand for an import when domestic quantity demanded exceeds domestic quantity supplied,

Else when the price of the good (or service) on the world market is less than the price on the domestic market

NX = X − I, where NX represents Balance of Trade, X is Exports and I is Imports

As in 2010

Ministry of Commerce & Industry

Directorate General of Foreign Trade

Central Board of Excises Customs

As in 2010

India has identified 16 sectors where we believe there are real opportunities for Foreign companies Aerospace (Civil) Automotive Agri-business (incl. Food & Drink) Biotechnology & Pharmaceuticals Construction (incl. Sports & Leisure Infrastructure) Creative & Media Education, Skills & Leisure

As in 2010

Engineering (incl. Mining, Metals & Metallurgical Process Industries)

Financial & Legal Services Healthcare & Medical ICT - Software/Computer Services & Residual

Electronics and Communications Oil & Gas (incl. Petro & Non-petrochemicals) Power Transport (incl. Airports, Ports, Railways and

Security) Water

Major Exported

Goods

Software, Engg goods

Gems and Jewellery

Agricultural products

Textile goods, Chemicals

Leather manufactures

Major Imported

Goods

Crude oil

Aircraft spare parts

Electronics & Electrical goods

Several Commodities, Machinery Medicine & medical

equipment

Main Export Partners

US

12.59%

UAE 12.87%

China 5.09%

Countries

Main Import Partners

China 26%

Saudi Arabia 17%

US 15%

UAE 12%

Iran 10%

Singapore 10%

Germany 10%

EPCG Scheme

Export Promotion Capital Goods

Allow import of capital goods for pre-production, production and post-production at 5% CD

Relaxation in… Units pertaining to agro, SSI, BIFR etc

3

2

1 Export Oriented Unit Scheme

Free Trade and Warehousing Zone Scheme

Special Economic Zone

Where India Stands Today

India has one of the fastest growing economies

in the world

India's share in the global trade, including trade in merchandise and services sector, has increased from 1.5% in 2006 & 2% in 2009 & will cross the 2.5% in 2012

Foreign trade, as a percentage of GDP (in rupee terms) was over ~24% in 2010