Analysis of

Roll No. 13 to 20
M.B.A.(P.T.) 1st Semester
International Trade
 Historical importance.

 Mutually benefit the countries.

 Opportunity for individual company.

 Source of economic revenue.

 Economic, social & political importance.

2
Factors Affecting International
Trade
 Political environment

 Foreign Currency

 Taxes & quotas

 Cultural environment

 Geography

 Trade organizations & agreements

3
Impact on International Trade
 Industrialization.

 Globalization.

 Multi National corporations.

 Advanced transportation.

 Technology & Internet.

4
India’s International Trade
 Sluggish growth after independence.

 1991- Economic liberalization policy.

 Prominence of Indian Economy in the

global market

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India’s International Trade
 Help attract foreign investment.

 Cordial international relations.

 Political & social enviornment.

6
Growth of India’s International
Trade

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India’s Trading Partners

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India’s Trade Basket

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India’s International Trade:
2008-09
 Exports in August 2008- US$ 16.0 billion-
growth of 26.9% (18.2% previous year).

 Imports in August 2008- US$ 29.9 billion-

increase of 51.2% (34.2% previous year).

 POL imports during April-August 2008-

US$ 46.1 billion- growth of 60% (17.9%
previous year).

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India’s International Trade:
2008-09
Items 2007-08 2008-09P
Exports 60.1 81.3
  (19.3) (35.3)
Oil Exports* 4.7 9.0
  (6.2) (91.5)
Non-Oil Exports* 26.0 39.1
  (5.5) (50.3)
Imports 94.6 130.5
  (34.2) (38.0)
Oil Imports 28.8 46.1
  (17.9) (60.0)
Non-Oil Imports 65.8 84.5
  (42.7) (28.3)
Trade Balance -34.6 -49.3
Oil Trade Balance* -12.3 -20.5
Non-Oil Trade Balance* -13.5 -9.0
* : Figures pertain to April-June
P: Provisional
Note : All figures in US$ billion. Figures in parentheses show percentage change over the previous year.
Source : DGCI & S
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Source: DGFT, Annual Report 2007-08

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India’s Export: 2008-09
(Percentage Shares)
Commodity Group 2006-07 2007-08 2008-09
Primary products 15.6 17 16.2
1. Agriculture and      
  allied products 10.0 11.4 11.4
2. Ores and minerals 5.5 5.7 4.8

Manufactured goods 67.2 63.6 58.3

1. Leather and      
  manufactures 2.4 2.2 1.8
2. Chemicals and      
  related products 13.7 12.9 11.4
3. Engineering goods 23.4 23.1 24.1
4. Textile and textile      
  products 13.7 12.0 10.4
5. Gems and jewellery 12.6 12.4 9.7
Petroleum products 14.8 15.6 18.7
Others 2.4 3.8 6.8
Total exports 100.0 100.0 100.0
Source: Compiled from DGCI & S data.
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India’s Import: 2008-09

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India’s Import: 2008-09

15
Services Trade
 Services trade shares about 9% of GDP.

 Services export growing much faster than

world services exports; In 2000-2006-
India: 38.22%, World: 12.84%.

 Services trade contributes about 2.64% of

world services trade.

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Services Trade

17
Services Trade

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Services Export

19
Services Import

20
Conclusion
 Significant contribution to growth of economy.

 Creation of foreign currency pool.

 Local factors- political interests, culture &

values

 Oil imports & unstable oil prices- negative trade

balance.

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Inputs
&?!

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