RECENT TRENDS IN FOREIGN TRADE IN INDIA SINCE 2000

ContentsSR. NO

PARTICULARS

1 Introduction

2 Foreign Trade Policy

3 Need And Importance Of Foreign Trade

4 Documents Used In Foreign Trade Transactions

5 Salient Features Of Foreign Trade

6 Benefits & Limitations Of Foreign Trade

7 Foreign Trade Performance Of India - Exports & Imports

8 Conclusion

9 Bibliography

Introduction

International trade means trade between the two or more countries. It involves different currencies of different countries and is regulated by laws, rules and regulations of the concerned countries.

There are 2 types of Trade 1. Internal Trade2. External Trade

Introduction

Foreign Trade can be classified into Visible Trade Invisible Trade

Deemed Exports – Those transactions in which goods supplied do not leave the country and the payment for such supplies is received either in Indian Rupees or in free foreign exchange.

Introduction

Balance Of Trade

The difference between the value of goods and services exported out of a country and the value of goods and services imported into the country.

The balance of trade is the official term for net exports that makes up the balance of payments.

The balance of trade can be a "favorable" surplus (exports exceed imports) or an "unfavorable" deficit (imports exceed exports).

The official balance of trade is separated into the balance of merchandise trade for tangible goods and the balance of services.

Introduction

Balance Of Payment :• The balance of payments accounts of a country record the

payments and receipts of the residents of the country in their transactions with residents of other countries.

• If all transactions are included, the payments and receipts of each country must be equal.

• Although the totals of payments and receipts are necessarily equal, there will be inequalities — excesses of payments or receipts, called deficits or surpluses. Thus, there can be a deficit or surplus in any of the following: merchandise trade (goods), services trade, foreign investment income, unilateral transfers (foreign aid), private investment, the flow of gold and money between central banks and treasuries, or any combination of these or other international transactions.

Introduction

Dumping: When goods are sold in the foreign market without contract of sale.

Types of dumping :-SporadicPredatoryPersistentReverse

Introduction

Foreign Trade includes :-Involvement of different monitory

unitsImposition of restrictions in Import

and Export by various countriesImposition of restrictions on release

of foreign currencies existence of multiple regulations

Foreign Trade Policy 2009-14

• India has become the largest exporter or rice and second largest exporter of wheat.

• The Export Promotion Capital Goods (EPCG) scheme would be available to all sectors.

• Any exporter who takes benefit of the technology upgradation scheme is now eligible to use the zero per cent EPCG scheme.

• Extension of the zero-duty export EPCG scheme beyond March 2013.

• The minimum area requirement for Special Economic Zones (SEZs) has been reduced to fulfil the contiguity norms.

• Norway & Venezuela have been added to Focused Market Scheme

Foreign Trade Policy 2009-14

• Engineering, Pharma & textiles have been added to Focused Product Scheme.

• For multiproduct SEZs, the minimum area required now is 500 hectares from 1,000 hectares.

• For sector specific SEZs, the minimum area required now is 50 hectares from 100 hectares while for IT SEZs, the developers will have to meet minimum built up area criteria.

• Since SEZs do not have an Exit Policy, it has now been decided to permit transfer of ownership of SEZs units, including sale.

• The 2 per cent interest subvention has been extended to 134 sub sectors of engineering sector.

Need & Importance Of Foreign Trade

1. Division of labour and specialization2. Optimum allocation and utilization

of resources3. Equality of prices4. Ensure quality and standard goods5. Raises standard of living of the

people6. Generate employment opportunities7. Maintains Balance of Payment

Documents Used In Foreign Trade Transactions

1. Indent2. Mate’s Receipt3. Bill of Lading4. Letter of Credit5. Certificate of Origin6. Consular Invoice7. Bill of Entry8. Dock Receipt9. Commercial Invoice

Salient Features Of Foreign Trade Of India

1. Negative or unfavorable Trade2. Diversity in Exports3. Worldwide Trade 4. Change in Imports5. Maritime Trade6. Trade through selected ports only7. Insignificant Place of India in the World

Overseas Trade8. State of Trading

Benefits Of International Trade

1. Greater Variety of Goods Available for Consumption

2. Efficient Allocation and Better Utilization of Resources

3. Promotes Efficiency in Production

4. More Employment

5. Consumption at cheaper cost

6. Reduces Trade fluctuations

7. Utilization of Surplus Produce

8. Fosters Peace and Goodwill

Limitations Of Foreign Trade

1. Rapid Depletion of Exhaustible Natural Resources

2. Import of Harmful Goods3. It may Exhaust Resources4. Over Specialization5. Danger of Starvation6. One Country Gains at the Expense of

Other7. May Lead to War8. Language Diversity

Foreign Trade Performance Of India

Exports By Principal Commodities1. Plantation Crops2. Agriculture and allied Products3. Ores and Minerals4. Leather and Leather Manufactures5. Gems and Jewelry6. Chemical and related products7. Engineering Goods8. Electronic Goods9. Textiles10.Handicrafts and Carpets11.Projects Goods12.Petroleum Products

Share From Exports From The World

Export Of Principal Commodities

Month Wise Exports From 2008-2011

Port Wise Percentage Share From Total Imports In 2010-2011

India’s Export To Top 10 Countries From 2006-2011

Imports By Principal Commodities

1. Fertilizers2. Petroleum Crude and Products3. Pearls, Precious, and Semi-Precious

Stones4. Capital Goods5. Organic and Inorganic Chemicals

Share Of Imports From The World

Month Wise Import From 2008-2011

Percentage Share Of Imports Of Major Commodity Groups In 2010 -

2011

Petroleum Import From The Top 6 Countries From 2008-2011

Conclusion

• India’s foreign Trade has undergone a positive change.

• After the implementation of the Foreign trade policy, the Import and export among foreign countries have increased and have become more secured

• Setting up of EPZ and SEZ have also increased foreign investors

Bibliography

• http://www.ibef.org/about-india-at-a-glance.aspx

• http://www.commerce.nic.in/