UNIT 1 INDIA’S FOREIGN TRADE Structure 10 Objectives 1.1 Introduction 12 Foreign Trade and Development- 13. Trends in India’s Foreign Trade 14 Composition of Foreign Trade 14.1 Composition of Exports 1.42 Composition of Imports 15 Direction of Foreign Trade 1.5.1 Direction of Exports 1.3.2. Direction of imports 16 Major Problems of India's Export Sector 17 Let UsSum Up 18 Key Words 19 Answers to Check Your Progress J A 10 Terminal Questions .0 OBJECTIVES is unit, you should be able to: fer studyingStructure 20 Objectives 21 Introduction 22 Concepts of Balance of Payments 22.1 Balance of Trede and Balance of Payments 222 Balance of Payment Accounting 23. Salient Features of India’s Balance of Payments 24 India’s Current and Capital Account 25 Role of Invisibles in Balance of Payments 26 Recent Policy Measures ' 26.1. Foreign Exchange Policy 262. Convertibility 27 Let UsSum Up i 28 Key Words { 29 Answers to Check Your Progress 2.10 Terminal Questions | UNIT 2 _INDIA’S BALANCE OF PAYMENTS | | | | : 2.0 OBJECTIVES After studying this unit, you should be able.Ne ee UNIT 3 INDIA AND WORLD TRADE An ging, to le World Trade Developments ternational Organisations in Globalisation and (iberalisation \d Electronic Data interchange ‘World Trade Developments by Region orld Trade ‘by Country World Trade ting India with the World Structure 30 Objectives 31 Introduction 32 Issues in World Trade 32.1 Regionalism vs. Multilateralism 322 3.23 Electronic Commerce an 3.2.4 Environment 33. Trends in World Trade 33.1 33.2 Composition of W 333 34 Roleof In 35 indiaand World Trade 36 Strategy for Integral 37 Let Us Sum Up 333 Answers to Check Your Progress 39 Terminal Questions oeUNIT 4 EXPORT PROMOTION IN INDIA Structure 40 Objectives 4.1 Introduction i 42 The Rationale and Evolution of Export Promotion Policies in India | 43 Organisations Involved in Export Promotion | 44 Regulatory Mechanisms in Export Promotion } 43 Export Promotion Measures in India 46 Constraints Hampering Effective Export Promotion Effort 47 Guidelines for Effective Export Promotion Strategies | 48 LetUsSumUp 49 Key Words 410 Answers to Check Your Progress 4.11 Terminal Questions 4.0 OBJECTIVES __________——— hould.be abl After studyUNIT 5 TRADE POLICY | Structure 50 Objectives 51 Introduction 52 Evolution of Trade Policy in India 53 Export Policy 54 Import Policy SS Tariff Policy 56 WTO Regime and India’s Policy Making 57 LetUs Sum Up 58 Key Words 59 Answers to Check Your Progress 5.10 Terminal Questions 5.0 OBJECTIVESSO ao UNIT 6 INDUSTRIAL AND INVESTMENT a POLICY ilment Structure 60 Objectives 61 Introduction 62 Evolution of industria} Policy 63. New Industrial Policy, 1991 se 64 Nature and Importance of Foreign Investment 65 Foreign Investment Policy in India | 66 Inflow of FDI in India ; 66.1 Couniry-vwise Inflow if 6.6.2 Industry-wise Distribution 67 An Evaluation of Investment Policy 68 LetUsSum Up 69 Key Words 6.10 Answers to Check Your Progress i G.I} Terminal Questionsforeign ocedures nsttuted he recent > enhance eater, it n, Nether- followed | or retains country, does not eae Se ett A UNIT 7 EXPORT PROCESSING ZONES, EXPORT ORIENTED UNITS AND EXPORT HOUSES a Structure 10 Objectives 71 Introduction 72 Whatare EPZs and EOUS? 72.1 Elsiility and Approvals 722 ‘Benefitsand Failies 723 Export Performance 13. Special Economic Zone (SEZ) TRL Approves and Criteria 73.2. Besefitsand Faiites 14 Gaport Houses, Trading Houses, Siar Trading Houses and Superstar Trading Houses 741 Bligibliy Criteria GA2_Denefisand Fai 15° LetUs Sum Up 16 Key Words J Answers to Check Your Progress 18 Terminal QuestionsUNIT 8 AGRICULTURAL PRODUCTS Structure 80 Objectives 81 Introduction 82 _ India’s Export of Agricultural Products 8.2.1 Composition of Agricultural Exports 8.2.2 Markets for Agricultural Products 83 WTOand Agricultural Exports 84 Government's Measures to Enhance Agricultural Exports 85 Strategies to Boost Export 86 Let UsSum Up 87 Answers to Check Your Progress 88 Terminal Questions 8.0 OBJECTIVES ‘After studying this unit, you should be able to: i90 Objectives 91 Introduction 92 An Overview of Indian Textile Industry 93 Indian Textiles Export 94 Trends in Readymade Garments Export 95 Strengths and Weaknesses of Industry 96 The Agreement on Textiles and Clothing — Implications for India 9.7 Future Prospects and Strategic Responses 98 Let Us Sum Up 99 Answers to Check Your Progress 9.10 Terminal Questionsyer of ment, has to being t will sich UNIT 10 GEMS AND JEWELLERY AND HANDICRAFTS Structure 10.0” Objectives 10.1. Introduction 102 Composition of Handicrafts 103 An Overview of Handicrafts Industry in India 104 Export of Handicrafts and Gems and Jewellery from India 10.4.1 Exports of Handicrafts 10.4.2 Exports of Gems and Jewellery 105 India’s Competitive Advantages and Disadvantages 106 Export Prospects of Handicrafts and Gems and Jewellery 10.7 Measures for Export Development of Handicrafts and Gems and Jewellery 10.7.1 Measures for Export Development of Handicrafts 10.7.2. Measures for Export Development bf Gems and Jewellery 108 Let Us Sum Up 109 Answers to Check Your Progress 10,10 Terminal QuestionsUNIT 11 LEATHER PRODUCTS Structure 110 Objectives 1.1 Introduction 112 Trends of Leather Exports from India 11.2.1 Commodity Composition 11.2.2 Markets 113 World Trade 114 Avenues and Prospects 115 India’s Competitive Advantages and Disadvantages 116 Policies and Strategies to Boost Export 1,7 Let Us Sum Up 118 Answers to Check Your Progress 119 Terminal Questions OBJECTIVES Kad eee,UNIT 13 ENGINEERING GOODS Structure 130 Objectives 11 Introduction 152 Indian Enginectlng industry 133 Exports of Engineering Goods 13.3.1 Sectoral Distribution 13.3.2 Markets for Engineering Goods 13.33 Export Targets 134 Problems of Engineering Goods Export (35 Export Promotion Strategies . 136 LetUs Sum Up 137 Answers to Check Your Progress 138 Terminal Questions 13.0 OBJECTIVES After studying this unit, you should be able to: # describe the major segments of engineering industry® Perret] 140 14 142 143 laa 145 146 147 148 149 14.10 Mu UNIT 14 CHEMICAL GOODS Structure Objectives Introduction Industry Highlights Growing Responsibilities Exports from India Avenues and Prospects India’s Competitive Advantage Problems and Suggestions Answers to Check Your P Terminal QuestionsUNIT 15 SERVICES Structure 150 Objectives 15.1 Introduction 152 Definition of Services 153 _ Issues in International Trade in Services 154 India’s Export and Avenues of Services 154.1 Conventional Services 1542 Non-Conventional Services 155 India’s Competitive Advantages and Disadvantages 156 Suggestions to Boost Services Export 15.7 Let Us Sum Up 158 Key Words 159 Answers to Check Your Progress 15.10 Terminal QuestionsUNIT 12 ELECTRONICS COMMODITIES Structure 120° Objectives 121 Introduction 122 Export Senso 123 Avenues and Prospects {251 dats Potent a Eeconis Woman he leterstonl Competitive Seno 1232 Avenues and Prospeds fr ndia's ote! Expr es 24 India's Competitive Advantages and Disadvantages 125 Palciesand Srateges o Boost Expors 125: Conpeitor nthe itenaonl Makes 1252 Paley sueson Export 1253 StaeiestoEonnee Expo Probleme ofthe Indian Shetrontes Industry 126) kel Problems 1262 Extersl Prolene (263 Soggatins| 27 LetUsSunUp 28 Aneters wo Chack Your Progress “eninal Questions 12.0 OBJECTIVES ‘After sudyng this ult, you should be able to aro of ltroies commodities 1 deseribe the export # expitinthe avenues and prospects, E |a UNIT 16 UNITED STATES OF AMERICA Structure i 160 Objectives 16.1 Introduction 162 Economic Structure of USA | 163 Recent Economic Developments in USA \G4 Foreign Trade of USA 165 India’s Economic Reforms | i 166 Indo-US Trade 16.6.1 Composition of Exports | 16.6.2 Composition of Imports | 167 Indo-US Trade Prospects | 168 Let Us Sum Up | 169 Key Words | ' 16.10 Answers to Check Your Progress 4 | 1611 ‘Terminal Questions { 16.0 OBJECTIVESgen UNIT 17 EUROPEAN UNION AND CIS rt. COUNTRIES Structure 110 Objectives M1 etrodveti 122 AnOveriew of European Union 173. EU's Trade Relations with Third Counties ta Eten Trade 115 General Implications | 126 Commodiyvive Analyst } 177 CIS—Background | 128 IndiCiS Trade Relations | 179. India-CIS Trade | 7110 Chaltenges and Opportniis | iit LaUssum Up / {712 Answers to Check Your Progress i 1713 ‘Terminal Questions | | ‘sexports and fe 17.0 OBJECTIVES rade ‘After studying this Unit, you should be able to ‘© analyse the significance ofthe European Union (EU) and Commonwealth of Independent oan | States (CIS) countries in India’s foreign trade,UNIT 19 ASEAN AND SAARC Structure - 190 Objectives 19.1 Introduction 192 Objectives of ASEAN 193 Economic Cooperation 194 ASEAN Summit 195. ASEAN Cooperation with Dialogue Partners 196 India and ASEAN Dialogue Partnership 197 INDO-ASEAN Trade and Economic Relations, 198 India-ASEAN Trade Prospects 199 Objectives of SAARC 19.30 SAARC Summits 19.11 SAARC Economic Outlook and External Relations 19.12 India-SAARC Trade 1913 India-SAARC Trade Prospects 19.14 SAARC Preferential Trading Arrangement 19115 Formation of SAPTA and Joumey Towards SAFTA 19.16 - LetUs Sum Up 1917 Key Words 10.18 Answers to Check Your Progress 19,19 Terminal Questions 19.0 dialogue partnership, tr acquainted with the obj SAARC trade prospects 19.2 OBJECT! ‘The Bangkok Declaratio economic cooperation a set out guidelines for AS ASEAN nations came to ) to promote the eco cooperative progra i) to safeguard the pe rivalry; and ii) ~ to serve as a forum ‘The First Summit Mectin member countries signed Declaration of ASEAN C regional peace and stabil need for cooperation with secretariat was also establ coordination of ASEAN a Summit Meeting whieh Trade AreaUNIT 20 WEST ASIA ccs Structure 5 io 200 Objectives sia, India is a 201 Introduction ialogue partner of 202 Economic Structure of Selected Countries of West Asia \ members, ASEAN 20.2.1. Beonomie Structure of Bahrain 8 per cent of Economic Structure of Ian vo per cent of Economie Structure of Jordan le SAARC has Economic Structure of Kuvvait Sree Trade Area. Economie Structure of Qat Economie Structure of Saudi Arabi Beonomie Structure of United Arab Emirates 203 Foreign trade of Selected Countries of West Asia 204 India’s Economic Reforms 205 India’s trade with Selected West Asian countries 203.1 India’s Trade with Bahrain 205.2 India’s Trode with fran economic grouping ene oa 20.5.3 Trade with Jordan n to those for non- 20.54 ‘Trade with Kuwait 25.5 India's Trade with Qatar 20.5.6 India's Trade with Saudi Arabia barriers among. 20.5.7 's Trade with United Arab Emirates ers. 206 Trade prospects between India and West Asia 207 LetUsSum Up ‘Answers to Check Your Progress nial Question