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Recent Trends in Indias

Foreign Trade
Presented By:
Indransh Gupta
Kunal Modi
What is Foreign Trade Policy?
Union Commerce Ministry, GoI announces integrated FTP every
five year also called EXIM policy.
policy updated every year with some modifications & new
schemes.
FTP which was announced on August 28, 2009 is an integrated
policy for the period 2009-14.
Foreign Trade Policy 2009-14
Short Term Objectives:
arrest and reverse the declining trend of exports.
provide support to those sectors which have been hit badly by
recession.

Medium term Policy Objectives :
achieve an Annual Export growth of 15% by March 2013.
achieve Annual Export growth of around 25% by 2014.

Long Term Objective :
doubling Indias share in Global Trade by 2020.
Targets

Export Target : $ 350 Billion for 2012-13


Export Growth Target: 15 % for next two year and
25 % thereafter.

Import/Export Controls

IMPORTS:
Around 5% Tariff Lines are under Import Controls.
11600 Tariff Lines are free for import.
Restrictions removed over the next 10 years, removing almost all the
Quantitative Restrictions.
Presently:
Prohibited items - 53 Lines
Restricted items - 485 Lines
State Trading Items - 33 Lines.

Import/Export Controls
EXPORTS:
Controls primarily on account of security, public health, morals,
exhaustible resources and environment grounds.
Prohibited items - 59
Restricted items - 155
State Trading Items - 12
Restrictions fall under two Categories:-
Special provision for these items under Weapons of Mass Destruction
Act, 2005.
Export Facilitation Committee looks into applications for license for
these items.
{Special chemical ,organisms, materials, equip. & tech.}
Highlights
Q1 of 2012-13, exports stood at US$ 75.2 bn and showed a
decline of 1.7 per cent as against an increase of 36.4 per cent
during Q1 of 2011-12.
Q1 of 2012-13, imports declined by 6.1 percent over the
corresponding quarter of 2011-12 and stood at US$ 115.3
billion.
Lower growth in POL imports at 5.5 percent during Q1 of
2012-13 as compared with 52.5 percent during Q1 of 2011-12.
Highlights
Imports of gold and silver, US$ 9.4 bn during Q1 of 2012-13
were 48.4 per cent lower than that in Q1 of 2011-12.
Non-oil non-gold imports during Q1 of 2012-13 at US$ 65.3
bn recorded a decline of 2.9 per cent as compared to an
increase of 18.9 per cent in Q1 of preceding year.
Trade deficit during Q1 of 2012-13 stood lower at US$ 40.1
bn as compared with US$ 46.2 bn during Q1 of 2011-12.
Indias Foreign Trade
growth is uncertain in coming months, given the worsening global
macroeconomic outlook and high interest rate in the domestic market.
During April-Sept 2011, India's imports expanded by 32.4% to $ 233.5
billion. The trade deficit during the April-Sept 2011 period stood at $ 73.5
billion. Increasing Trade Deficit further depreciates Rupee.
depreciation of rupee will also push up cost of imports leading to wider
trade deficit in coming times.
Export/Import Share of India as (%)
of GDP
Exports of Principal Commodities
Imports of Principal Commodities
India's Exports to Principal Regions
India's Imports from Principal Regions
Indias Foreign Trade
Last 10 Years Indias Export/Import
Performance
Composition Of Indias Foreign Trade
Composition of Exports

Agricultural and Allied Products
15% share in exports
Top items of agricultural exports include:
- Fish Products
- Rice
- Oil Cakes
- Fruits and Vegetables
Ores and Minerals
12.3% share in exports.

Manufactured Goods
61.3% share in exports.
- Include: Engineering Goods
Gems and Jewellery
Chemical and Allied Products
Readymade Garments

Minerals Fuels and Lubricants
18.3% share in exports
There has been improvement in the exports of mineral
fuels and lubricant both in terms of value and in terms
of %.
Composition of Imports
Petroleum Products
31.7% share in Imports.
Capital Goods
20.3% share in Imports.
Pearls and Precious Stones
6.2% share in Imports.
Iron and Steel
2.4% share of Imports.
Fertilizers
2.4% share of Imports.
Conclusion
Composition of Indias Foreign Trade has undergone a
positive change. It is a remarkable achievement that
India has transformed itself from a predominantly
primary goods exporting country into non primary
goods exporting country. Under Imports also Indias
dependence on food grains and capital goods has
declined.