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. and suffer when competitive imports increase. Depending on whether a country imports more goods or exports more goods.Net Exports (Trade Deficit) Exports are domestic goods and services that are sold to buyers in other nations. net exports can be a positive or negative value. the result is a trade deficit. An individual firm or industry will benefit when its exports increase. Net exports are the difference between a country's total value of exports and total value of imports. When imports exceed exports. A trade deficit occurs when one country buys more foreign goods than it sells to other countries.
e increase in their imports as compared to their exports. almost 10. i. So the gap between the imports and exports grew to 56 percent .Current situation in India From January of this year India have experienced a rise in their trade deficit.15 percent.9 billion. India’s trade deficit increased up to $184.6 percent of GDP which is higher than the expected The exports rose up to 21 percent but the imports went up to 32.
92 million tons in the year to March 31.52 million tons. But those exports were small compared to the massive amount of crude imports needed to fuel the refineries. . expanded refining capacities last year. But existing fields are ageing and recent exploration has been disappointing. The refinery capacity expansions meant fuel product imports fell Congress recently passed legislation to decrease our dependence on oil by increasing Corporate Average Fuel Economy (CAFE) standards on new cars and trucks models by year 2020.4% to 60. the data showed. Developing advanced vehicle Technologies that use energy more efficiently Creating new energy sources that can replace petroleum cleanly and costeffectively. while product exports rose 2.How to control import The country is aiming to boost production of domestic oil and gas. and state-run Mangalore Refinery & Petrochemicals Ltd. This could reduce our petroleum use by 25 billion gallons by 2030. The refinery capacity expansions meant fuel product imports fell 14% to 14. Private refiner Essar Oil Ltd.
Reining in Import Growth Through Domestic Policy Complimentary Measures to Rein the Import Growth through Domestic Policy Crude Oil : production of domestic oil and gas.conductor industry Gold : Increase on import duty on Gold (standard & non Standard) but might lead to imports through illegal Channels Coal : Acquire of coal mine in abroad. Private Enterprises can import rather than Government led Petroleum : Need to developed sufficient Processing capacity Fertilizers : . Agriculture : We are importer of Pulses Edible oils & other Commodities. Need to Increase yield & domestic Production Electronics & Engineering : Need to focus on Semi.
the inability to raise domestic fuel prices only acts as an incentive to increase consumption of hydrocarbon products. The difficulties in getting green clearances for new coal mines is forcing domestic power companies to buy from abroad . Reduce the Import & Increase the Exports Government should increase the import duty on Crude Oil For example. most of which are imported.
Provide Additional support to those sectors that had been face slow down for past 2 year .In actual high growth of Import is unavoidable Focus on higher Export Growth The deficit could be bridged with increasing exports Devise strategy for rapidly increasing merchandise export (Goods & Services) Provide marketing support to micro and small enterprises through Export Development Fund.
Strategy to Increase the Exports in India in next 2 years • • • • Product Strategy Market Strategy Technologies & R &D Reining in Import Growth Through Domestic Policy • Essential Support .
Good storage/cold storage condition Leather Products & Textiles : High value added products. India Government should have own Chemical Inventory.Product Strategy India is leading exporter of below goods. should support to small Chemical companies. Government should have arrange for Industrial Park Chemicals : Organic & Inorganic chemicals. India can become Pharmacy of World Electronic Goods : Joint Venture with Chinese companies as they have mfg strength & also market share Agricultural & Marine Products : Good Agricultural Practices. so first we will try to increase the Export for the current products which have high market share in international market Engineering Goods : Export is continuously increasing . Pharmaceutical : Dominated by Generic Products. instead of exporting finished leather should export leather shoes means high value added product Gems & Jwellery : .
. These were increasingly emerging as attractive destinations for Indian exports. Africa & Latin America South America and Southeast Asia. Focus on Market in Asia ( Including ASEAN).Market Strategy : Explore new Market Demand in the Traditional Markets of the developed western world North America & Europe is slowed down Core of the market strategy i) Retain Presence & market Share in our “Old Developed country Markets” ii) Move up the value chain in providing products in these old developed country Market iii) Open up New Vistas both in terms of New Market & New Products in these new markets.
Automobiles Computer and software based smart engineering. green technology and high-value engineering products. aerospace. Electronics. Expanded certification of export products encouraged.Building a Brand Image Thrust for quality up gradation. where needed. Brand India promotion campaign for key export products Rapidly changing Technology Technologies and R & D Areas that hold out promise for high technology exports Pharmaceuticals . and engineering products. . Environmental products. High end areas in electronics.
Essential Support From Government Stable Policy Environment Access to New Market Reduce Transaction cost Better Infrastructure Speedy Clearance Quality Education Facilities Trade barriers Procedural bottle necks Infrastructure so the government should provide lower rate of credit to exporter Essential policy support needed to realize the ambitious export targets for 2013-14 and beyond is: Stable policy environment: Continuation of existing incentive schemes Preferential access to new markets: putting in place conducive trading arrangements Reduction in transaction costs: Implementation of recommendations of Task Force Substantial step up in overall Plan support . Priority strengthening of trade related infrastructure .
Exports of merchandise will get a boost in terms of getting improved market access in products like textiles. gems & jewellery Give concessional credit to exporters Reduce the steps getting the export License Improve the drawback rates so that taxes on raw material are not exported Improve trade & political relation with neighboring countries like Pakistan & Bangladesh. . India can get increased market access at a lesser cost in terms of Proximity of destinations Support Industry initiatives for aggressive marketing & organizing of Trade & Industrial exhibition abroad.Preventive actions Government should go for all out domestic policy reforms. engineering. Whether it is GST or DTC or banking sector reforms Speed up the Trade agreement with the European Union.
so if India Focus on the increase of Export can help to balance the Trade. Improvement in Infrastructure related to exports.Summary Its is very difficult to control on Import. reducing Transaction cost & providing full refund for all indirect Taxes & Levies Government should provide all possible support to increase the Export .
Thank You .