23-12-2021

INDIA’S FOREIGN TRADE:TRENDS,

PROBLEMS AND PROSPECTS

Types of Trade strategies

1. Outward oriented.
2. Inward oriented.
• In outward oriented strategy, the trade and industrial policies do not
discriminate between domestic and foreign goods, or production for
domestic and export market.
• In inward oriented strategy the trade and industrial policies are in favor of
domestic production and against foreign trade, especially import. Import
substitution is the strategy in it, so it is also called as “ Import substitution
industrialization strategy”. Accordingly, imports are severely restricted
and substitutes for imported goods are produced indigenously, even if they
are not economical, or of inferior quality.
• Outward oriented strategy is neutral, it does not mean an export oriented
or exports promotion strategy. It neither favors exports nor is against import
substitution. (E.g. South Korea).
• However, many S.E. Asian countries had adopted aggressive export-led
growth strategy, whereby they promoted exports actively.
V J Sebastian, IMT Ghaziabad-
2016

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Inward oriented strategy, has the following

drawbacks:
1. Leeds to high cost economy.
2. Uncompetitive economy.
3. Protected market.
4. Inefficiency.
5. Bias against exports and imports.
6. It is against the spirit of international
trade.

V J Sebastian, IMT Ghaziabad- 2016

India’s Trade Strategy

India followed an inward oriented strategy for almost four decades from 1950.
The import substitution policy involved measures such as….
 Ban on import of many products.
 Quantitative restrictions.
 Licensing in foreign trade.
 Foreign exchange regulation.
 Local content requirement.
 Phased manufacturing program- indigenisation of
production by foreign companies in a phased manner.
 Export obligation.
 Restrictions on domestic sales, etc.
V J Sebastian, IMT Ghaziabad- 2016

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EXPORTS OF GOODS & SERVICES AS % OF GDP

Countries 1990 2000 2001 2002 2005 2010 2015 2017
China 19 23 23 25 37 30 22.4 19.8
Singapore 228 211 176.5 173
Hong Kong 131 144 139 150 198 223 201.2 188
India 7 13 13 15 21 22 -- 19
Indonesia 25 41 38 32 34 25 21.1 20
Malaysia 75 124 116 115 123 97 71.1 72
Thailand 34 67 66 64 74 71 -- 68*
Korea 39 52 45.9 43
USA 11 10 10 10 13 12.6 12*
WORLD 29.1 29*
*data for 2016
Source: The World Bank
(http://data.worldbank.org/indicator/NE.EXP.GNFS.ZS/countries

IMPORTS OF GOODS & SERVICES AS % OF GDP

Countries 1990 ‘00 ‘01 ‘02 ‘05 2010 2015 2017
China 16 21 20 23 32 26 18.8 18
Hong Kong 122 139 134 141 185 217 199 187
India 9 14 14 16 24 25 -- 22
Indonesia 24 30 30 26 29 23 -- 19
Malaysia 72 104 98 96 100 79 63 64
Singapore 200 183 150 149
Thailand 42 58 59 58 75 64 -- 53*
Korea 37 50 39 38
USA 11 15 14 14 15 16 16 15*
World 28.5 27.7*
Source: The World Bank *2016 data
http://data.worldbank.org/indicator/NE.IMP.GNFS.ZS/countries

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IMPORTS

Cereals and Cereal Preparations(4th

to 9th Plan)
20
P e r c e n ta g e

10

0 1969-1974 1997-2002

Cereals and Cereal Preparations

IMPORTS
Textile fibres and their waste as % of Total
Value of Import
4
3
2
1
0 1969-1974 1997-2002

1 2 Textile3 fibres and their

4 waste 5 6

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IMPORTS
Petroleum and Petroleum products
(4th to 9th Plans)
40
30
20
10
0 1997-2002
1969-1974
1 2 3 4 5 6
Petroleum and Petroleum products

IMPORTS

End of plan Imports of Chemical Elements &

compounds(4th to 9th Plans)
8
6
4
2
0 1969-1974
1997-2002
1 2 3 4 5 6
Chemical Elements & compounds

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IMPORTS

Fertilizers
6
5
4
3
2
1
0 1997-2002
1969-1974
1 2 3 4 5 6
Fertilizers

IMPORTS

Iron and Steel

10
% of total imports

8
6
4
2
01969-1974 1997-2002
1 2 3 4 5 6
Iron and Steel

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IMPORTS

Non-Ferrous Metals
% of total imports

6
4
2
0
1969-1974 1997-2002
1 2 3 4 5 6
Non-Ferrous Metals

IMPORTS

Machinery & Transport Equipments

% of total imports

30

20
10

0
1969-1974 1997-2002
1 2 3 4 5 6
Machinery & Transport Equipments

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IMPORTS

Pearls, precious and semi- precious stones

(4th to 9th Plan period- end of plan Years)
% of total imports

15

10

0
1969-1974 1997-2002
1 2 3 4 5 6
Pearls, precious and semi- precious stones

EXPORTS

Changing export Profile- Declining shares (%

Share in total exports)

30
25
20
Per cent

15
10
5
0 1951-56 1997-2002
Sixth

Eighth

Ninth
Fourth

Seventh
First

Jute Tea Cotton Piece Iron Ore

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Changing export Profile-Increasing shares

EXPORTS (% Share in total exports)
20
15

10
5
0 1951-56 1997-2002

First Fourth Sixth Seventh Eighth Ninth

Readymade Garmenst Chemicala & Allied

Engineering Goods Gem & Jewellery

EXPORTS
Changing export Profile-mixed trend(% Share
in total exports)
8
7
6
5
4
3
2
1
0 1951-56 1997-2002

First Fourth Sixth Seventh Eighth Ninth

Leather Marine Products

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Source: RBI, Handbook of Statistics on Indian Economy, 2017-18, Table 120

India’s Exports & Imports: 1970-71 to 2019-20 (USD Million)

600000.0

500000.0
473995.2

400000.0
343463.3
300000.0 313138.5

200000.0

100000.0

0.0
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
2015-16
2017-18
2019-20

Total Exports Non-Oil Imports Total Imports

Source: RBI, https://dbie.rbi.org.in/DBIE/dbie.rbi?site=statistics

10
 US $ Millions

0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
1950

50000

-200000
-150000
-100000
0

-50000
1960 1971-72
1970
1974-75
1980
1977-78
1990
1991 1980-81
1992 1983-84
1993 1986-87
1994
1989-90
1996
1997 1992-93
2000 1995-96
2003 1998-99
2004
2001-02
2005
2004-05
2006
2008 2007-08
Trade Balanance: 1971-72 to 2019-20

2009 2010-11
2010 2013-14
2014
2016-17
2018
2019 2019-20

India’s share in world merchandise exports ( %)

-160856.7

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 What do we Export?

 What do we Import?

COMPOSITION OF EXPORTS & IMPORTS

Composition of Exports (%) Composition of Imports (%)
2016-17 2017-18 2016-17 2017-18
Primary / 1) Petroleum, Crude
(Agri & Allied+Mining) 14.1 12.6 22.6 23.3
& Products
2) Manufactured 73.6 74
2) Pearl, Precious 6.2 7.4
Text/RMG 12.96 12.0 stones
3) Iron & Steel 2.1 3.1
Gems & Jewellery 15.7 14
4) Capital goods 13.6 12.2
Engg. goods 24.37 26
5) Gold and Silver 7.6 7.9
Chemicals & related 11.88
6) Chemicals 6.3 6.5
Leather 1.92 1.7
7) Edible oil 2.8 2.5
3) Petro. Products 11.4 12.4
8) Others 41.6 37.1
4) Others 0.86 1.0
TOTAL 100 100 Electronic goods 11.2 11.0
Exports(USD Bilion) 276 303 Imports(USD Billion)) 384 466
Source: Govt. of India, Economic survey, 2017-18 & RBI, Handbook of Statistics on Indian Economy

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Available at: http://apjor.com/downloads/2403201619.pdf

High-technology exports (% of manufactured exports)

1990 2005 2011 2016
China 6.1 30.6 26 25
Hong Kong 12.1 33.9 14 12
India 2.4 4.9 7 7
Indonesia 1.2 16.3 8 6
Malaysia 38.2 54.7 43 43
Singapore 39.7 56.6 45 49
Thailand 20.7 26.6 21 22
USA 33.7 31.8 18 20
Developing Countries 10.4 28.3 18 18
OECD’s classification includes the following sectors in the high technology category: (i) aerospace, (ii) pharmaceuticals, (iii) office and computing machinery,
(iv) radio, television and communications equipment, and (v) medical, precision and optical instruments.
http://data.worldbank.org/indicator/TX.VAL.TECH.MF.ZS?view=chart

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DIRECTION OF TRADE
Destination of Exports (%) Sources of Imports (%)
2007-08 2017-18 2007-08 2017-18
1) OECD 38.8 39 1) OECD 31.6 27
EU 20.2 18 EU 13.8 10
USA 13.0 16 USA 5.5 6
2) OPEC 16.5 15 2) OPEC 31.8 23
3) E. Europe 2.1 1 3) E. Europe 2.2 3
4) LDCs 42.3 44 4) LDCs 33.6 44
Asia 31.5 33 Asia 26.8 36
China 6.8 4 China 11.3 16
L. America 3.5 4 L. America 2.3 4
6) Others 0.4 1 6) Others 0.7 2.58

TOTAL Export 303376 TOTAL Import 465578

Source: Reserve Bank of India

DESTINATION OF INDIA’S EXPORTS, 2018-19

($ Million)
% Share in India’s
Rank Country 2018-19 Growth
Total Exports
1 U SA 52,406.27 15.9 9.5
2 U ARAB EMTS 30,126.73 9.1 7.0
3 CHINA P RP 16,752.20 5.1 25.6
4 HONG KONG 13,001.99 3.9 -11.5
5 SINGAPORE 11,572.27 3.5 13.4
6 UK 9,309.29 2.8 -3.9
7 BANGLADESH PR 9,210.06 2.8 6.9
8 GERMANY 8,902.43 2.7 2.5
9 NETHERLAND 8,812.84 2.7 40.8
10 NEPAL 7,766.20 2.4 17.4
11 BELGIUM 6,729.93 2.0 8.4

India’s Total Exports 3,30,078 -- 8.75

Source: Reserve Bank of India

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SOURCE COUNTRIES FOR IMPORTS, 2018-19

($ Million)
% Share in India’s %
Rank Country 2018-19
Total Imports Growth
1 CHINA P RP 70,319.64 13.7 -7.9
2 U SA 35,549.48 6.9 33.6
3 U ARAB EMTS 29,785.33 5.8 37.0
4 SAUDI ARAB 28,479.21 5.5 29.0
5 IRAQ 22,372.47 4.4 27.0
6 SWITZERLAND 18,087.58 3.5 -4.4
7 HONG KONG 17,987.01 3.5 68.5
8 KOREA RP 16,758.97 3.3 2.4
9 SINGAPORE 16,281.64 3.2 118.1
10 INDONESIA 15,849.67 3.1 -3.6
11 GERMANY 15,161.08 2.9 14.0
India’s Total Imports 5,14,078.42 --- 10.42

India’s Total Trade: Top 10 countries: 2018-19 (USD Millions)

% of
% of
Total Trade Trade India’s
Rank Country Export Import India’s
(3+4) Balance Total
Total
Deficit
(1) (2) (3) (4) (5) (6) (7) (8)
1 USA 52,406.3 35,549.5 87,955.8 10.4 16,856.8
2 CHINA P RP 16,752.2 70,319.6 87,071.8 10.3 -53,567.4 29.1

3 U ARAB EMTS 30,126.7 29,785.3 59,912.1 7.1 341.4

4 SAUDI ARAB 5,561.7 28,479.2 34,040.9 4.0 -22,917.5 12.5

5 HONG KONG 13,002.0 17,987.0 30,989.0 3.7 -4,985.0 2.7

6 SINGAPORE 11,572.3 16,281.6 27,853.9 3.3 -4,709.4 -2.6

7 IRAQ 1,788.7 22,372.5 24,161.1 2.9 -20,583.8 11.2
8 GERMANY 8,902.4 15,161.1 24,063.5 2.9 -6,258.7 3.4

9 KOREA RP 4,705.1 16,759.0 21,464.0 2.5 -12,053.9 6.6

Total of Top 10
1,50,092.9 2,68,544.5 4,18,637.4 49.6 -1,18,451.6 64.4
countries
India's Total 3,30,078.1 5,14,078.4 8,44,148.6 100.0 -1,84,000.3
% Share of Top 10 45.5 52.2 49.6 64.4

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Export Growth & Share in World Exports

Share in
Export
Export Growth Rate (%) World
($ Billions)
Exports
‘95-01 2003 2005 2015 2017 2000 2017 2004 2017

1. China 12.4 34.5 32.1 -7.5 7.9 3.9 12.9 593.0 2263

2. Hong Kong 3.6 11.9 11.4 -8.1 6.5 3.2 3.1 259.0 550
3. Malaysia 6.6 6.5 12.1 -14.5 4.1 1.5 1.2 125.7 216
4. Indonesia 5.7 5.1 18.2 -14.6 16.8 1.0 1 71.3 169
5. Singapore 4.1 15.2 14.8 -15.4 10.4 2.1 2.1 179.6 373

6. Thailand 5.9 17.1 12.9 -7.3 10.5 1.1 1.3 96.0 236

6. India 8.5 15.8 31.0 -15.2 13.6 0.7 1.7 71.8 296
8. S. Korea 7.4 19.3 18.1 1.1 -7.8 2.7 3.3 254.0 574
9. Developing
countries
7.9 18.4 21.2 -15.8 13.1 25.4 48.5 3685.1 8531

10. World 5.5 15.9 14.9 -13.3* 10.7 100 100 9049.8 17585
Calculated from: http://www.trademap.org/(S(vpiav5jun5p3m1efcti1zj55))/Country_SelProduct_TS.aspx
*The drop in dollar value of global trade was largely due to strong fluctuations in commodity prices and exchange
rates, “which were in turn driven by slowing economic growth in China", resilient oil production in the US, and
divergent monetary policies across leading economies.

Non-Oil Exports and Imports (1970-71 to 2018-19)

USD Million
400000

350000

300000

250000

200000

150000

100000

50000

0
1970-71
1972-73
1974-75
1976-77
1978-79
1980-81
1982-83
1984-85
1986-87
1988-89
1990-91
1992-93
1994-95
1996-97
1998-99
2000-01
2002-03
2004-05
2006-07
2008-09
2010-11
2012-13
2014-15
2016-17
2018-19

Non-Oil Exports Non-Oil Imports

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https://www.eia.gov/international/analysis/country/IND

Top Services Exporters in 2018 ( USD Billions)

828

900
800
700
600
376

500
331

291

400
267

242

206

205

192

184

300
149

124

123

122

114

113

200
100
0

Share in World Services Exports - 2018 (%)

16.0 14.5
14.0
12.0
10.0
8.0 6.6
5.8 5.1
6.0 4.7 4.2 3.6 3.6 3.4 3.2
4.0 2.6 2.2 2.2 2.1 2.0 2.0
2.0
0.0

Calculated from: http://www.trademap.org/(S(vpiav5jun5p3m1efcti1zj55))/Country_SelProduct_TS.aspx

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Services Export by India(%) 2018

Insurance and Personal, cultural,
pension services, and recreational
1.3 services, 0.9
Maintenance and
Construction, 1.5 repair services
n.i.e., 0.1
Financial
services, 2.6

Transport,
9.3 Other business
services
Services not (ITES/BPO etc),
allocated, 9.5 31.7

Travel, 13.9
Telecommunications,
computer, and
information services,
28.4

Total Export of Services by India in 2018: USD 205 Billions

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Dated: 27/11/2018
Export of Principal Commodities Groups
( US$ Millions)
Commodity Apr-Oct 2017 Apr-Oct 2018(P) %Growth %Share

1 AGRI & ALLIED PRODUCTS 15,473.8 15,657.7 1.2 8.7

2 MARINE PRODUCTS 4,480.3 4,155.6 -7.3 2.2

3 ORES & MINERALS 1,688.9 1,874.6 11.0 1.0

LEATHER & LEATHER
4 3,179.3 3,147.3 -1.0 1.7
MANUFACTURES

5 GEMS & JEWELLERY 24,660.7 24,259.5 -1.6 12.7

CHEMICALS & RELATED

6 PRODUCTS 20,270.9 24,826.7 22.5 13.0

PLASTIC & RUBBER

7 4,103.0 5,368.3 30.8 2.8
ARTICLES
ARTICLES OF STONE, PLASTER,
CEMENT, ASBESTOS, MICA ; CERAMIC
8 2,591.9 2,874.6 10.9 1.5
PRODUCTS; GLASS & GLASSWARE Etc

9 PAPER & RELATED 1,454.6 1,953.4 34.3 1.0

10 BASE METALS 15,443.9 14,906.9 -3.5 7.8
11 ELECTORONICS ITEMS 3,343.3 4,406.1 31.8 2.3

12 MACHINERY 13,209.2 16,867.4 27.7 8.9

13 TRANSPORT EQUPMNT. 13,173.3 14,842.0 12.7 7.8

TEXTILES & ALLIED

14 20,417.4 20,852.5 2.1 11.0
PRODUCTS

PERTOLEUM CRUDE &

15 19,533.8 28,481.4 45.8 15.0
PRODUCTS
16 OTHERS 3,125.8 3,475.9 11.2 1.8
17 Total 1,68,642 1,90,520 13 100
http://commerce-app.gov.in/ftpa/comgrp.asp

East Asian Countries India

1. East Asian Countries Began by Focusing on labor
intensive & low technology industries like textiles,
clothing, leather products etc.
2. Gradually moved into more technologically sophisticated
products such as steel, machinery, Chemicals and
automobiles
3. Finally to high-tech products such as semi-conductor,
computer hardware, electronics etc.
4. Mature labor intensive industries moved from
one leading country to next less-developed country
: Japan  S. Korea and Taiwan (1970s)  Thailand,
Indonesia & China (in 1980s and 1990s)
5. Large buyers such as the Japanese trading houses and American and European department-store chains
dominate world markets in many consumer products.
1.India achieved the first step in transformation -
from primary agricultural good to low-tech, low-
value-added manufactured goods. But India
didn’t move further. Why?
2.) Import substitution policy prevented imports of crucial
components/technology required to maintain productivity
and quality.
3) Reserving almost all labour-intensive low-tech products for
manufacture in the so-called "small-scale sector (high-growth
export items such as clothing, shoes, sporting goods, toys and
plastic products were reserved for production in small
companies)
4. This policy of reservation robbed India of rapid export and
industrial-employment growth. How?
Labour laws were a further impediment in scaling up

6. They place a high premium on branding and quality control of large volumes of identical products. The small Indian producers
are clearly not able to fit into this scheme of things.

7. East Asian countries, and China recognized this market structure and welcomed the production of branded products at relatively
large-scale facilities

8. The initial success of these enterprises provides surpluses to the exporting companies and builds the reputation of the
exporting country. Nurtured by continuous investment, such companies then climb the technology ladder and move into newer
industries
9. In fact, as the world has entered the information age, producing even low-tech goods will require
more-advanced technology.

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https://qz.com/1191281/economic-survey-2018-india-wants-nri-scientists-to-come-home-but-
wheres-the-rd-money

Appendix-I
Problems in India’s foreign trade-(in brief)
 Lack of integrated approach.
 Problem recognition and action lags.
 Technological factors.
 High costs.
 Poor quality image.
 Unreliability.
 Supply problems. (No stability)
 Infrastructure bottlenecks
 Uncertainties, procedural complexities.
 Lack of trade information.

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Appendix-II
INSTITUTIONAL ARRANGEMENTS FOR TRADE PROMOTION
A) AUTONOMOUS BODIES
• Export promotion councils
• Indian Institute of Packaging
• Commodity Boards ( Spices, coir, tea) & Authorities ( MPEDA,APFPEDA)
• FIEO,
• Indian Council for Arbitration
• India Trade Promotion Organization
B) PUBLIC SECTOR ORGANISATIONS
• STC- State Trading Corporation
• MMTC – Mineral and Metals Trading Corporation
• Spices Trading Corporation
• ECGC- Export Credit Guarantee Corporation
• EXIM Bank-
C) ADVISORY BODY
• Central Advisory Council on Trade
• Director General of Foreign Trade (DGFT) - implements exim policy
• Director General of Commercial Intelligence & Statistics- data compilation
• Development Commissioner for Handicrafts
Export Incentive Schemes: Advance license for duty free imports of raw material,
Export Promotion Capital Goods scheme, Duty Draw Back schemes etc.

EPCs/Commodity Boards etc.

Regd./ Head Regional
Name of EPC Commodity / Product
Office Offices
1. Apparel Export Apparel House, Mumbai, Chennai,
Institutional Area, Kolkatta, Jaipur,
Promotion
Sector-44, Gurgaon Chennai, Ludhiana, Readymade Garments.
Council Tirupur, Bangalore
Basic Inorganic and Organic Chemicals
2. Basic Chemicals, Kolkatta,
7 Cooperage including Ago Chemicals, Oil Field
Pharmaceuticals Delhi, Chemicals, Cosmetics and Toiletries,
Road,
& Cosmetics EPC Mumbai-400 039
Ahemdabad, Essential Oils & Perfumery Compounds,
Bangalore Agarbattis., Castor Oil & it's derivatives.

Niryat Bhavan, Rao Handmade/ Handknotted Woollen Carpets, Rugs,

3. Carpet Export Durries, Handmade tufted Carpets, Handmade Silk
Tula Ram Marg ,
Promotion New Delhi-110 057 Bhadohi(U.P.), Carpets, Handmade Staple/Synthetic Carpets,
Kelem, Schumacks, Namdhas and other Floor
Council Covernings.

4. Cashew Export Cashew Kernels, Cashewnut

Cochin
Promotion Council Shell Liquid
Animal By-products, Automobile Tyres & Tube, Books,
Publishing & Printing, Bulk Minerals & Ores, Cement,
Vanijya Bhavan Clinkes & Asbestos Cement products, Cement, Clinkes &
5. CAPEXIL International New Delhi, Asbestos Cement products, Ceramics & Refractories, Glass
& Glasswares, Granites, Natural Stones & Explosives,
( for Chemicals & Trade Facilitation Chennai. Graphite Electrodes & Explosives, Misc. Products such as:
Allied Products) Centre, Mumbai - Fire works, Safety Matches, Activated Carbon, Cocoanut
shell Charcoal, Superphosphates Urea, Paints & Allied
Kolkatta Products, Paper, Board & Paper Products, Plywood &
Allied Products, Plywood & Allied Products

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Regd./ Head
Name of EPC Regional offices Commodity/Product
Office
Gunture, Cardamom, Pepper,
Secunderabd,
Guwahati, Chilly, Ginger, Turmeric,
Ahmedabad, Coriander, Cumin,

Cochin
31. Spices Bangalore, Idukki, Fennel, Fenugreek,
Gangtok, Mumbai,
Board New Delhi; Celery, Aniseed,
Bodinayakanur; Bishopsweed, Caraway,
Chennai, Kolkatta. Dill, Cinnamon, Cassia,
Garlic, Curry Leaf,
New Delhi, Mumbai,
Kolkatta

Chennai, Cochin,
32. Tea Board Coonoor; Agartala; Tea and its products
Silchar; Kottayam;
Darjeeling.
Unmanufactured Tobacco; Flue
Guntur

cured Virginia; Light Soil

33. Tobacco Burley; Chewing Tobacco; Bidi
Board Tobacco; Cigar Tobacco;
Manufactured Tobacco products

Regd./
Name of EPC Head Regional offices Commodity/Product
Office
34. Agricultural and Mumbai; Kolkatta, Fruits, Vegetable and their products;
Processed Food Hyderabad, Meat and meat products; Poultry and
Products Export Bangalore; poultry products; Dairy products;
New Delhi

Development Confectionary, biscuits and bakery

Authority products; Honey, jiggery and sugar
products; Cocoa and its products,
chocolates of all kinds; Alcoholic and
non-alcoholic beverages; Cereals and
cereals products; Groundnuts,
peanuts and walnut; Pickles,
chutneys and papads etc
35. Marine Products Chennai, Kolkatta, Marine Products included all
Export Mumbai,
varieties of fishery products
Development Visakhapatnam;
Veraval; Mangalore; known commercially as shrimp,
Kochi

Authority
Quilon; Panaji; prawn, lobster, crab, fish, shell-
Tuticorin; fish, other aquatic animals or
Bhubaneshwar;
plants or part thereof.
Valsad; Thanjavur;
Guwahati; Panvel;
Nariman point etc
V J Sebastian, IMT Ghaziabad- 2016

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Discussion questions:
1. Briefly explain the direction and composition of India’s foreign
trade.
2. Discuss the problems and prospects of India’s foreign trade.
3. Explain different theories of international trade.
4. It is seen that close to 50% of India’s exports are labour-intensive
and low-tech industries such as textiles, clothing and leather
products, gems and jewelery etc. Further, share of high technology
exports are only 5% as against China (31%), Malaysia (55%) and
developing countries’ average of 28%.
Examine why India could not move up the value chain into more
technologically sophisticated exports and suggest methods of
achieving the same
5. Short notes:
a) Different trade strategies
b) EPCs
c) Institutional arrangements for trade promotion
d) Product lifecycle & international trade

-1000
-900
-800
-700
-600
-500
-400
-300
-200
-100 2009 2010 2011 2013 2015 2016 2017 2018 2019
0

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 23-12-2021

US BOP ($ Billion)
400 261 271 269 286 300 287
200

0
2014 2015 2016 2017 2018 2019
-200

-400

-600

-800
-791 -812 -798
-1000 -860
-946 -923
-1200

Services Merchandise

Source:
https://www.trademap.org/Service_SelCountry_TS.aspx?nvpm=1%7c842%7c%7c%7c%7c%7c%7cS00%7c1%7c
3%7c1%7c3%7c2%7c1%7c5%7c1%7c1

25