India & the World Trade

Relations

Presented by
Rishab kumar
 introduction
• India has formal diplomatic relations with most nations; it is
the world's second most populous country, the world's
most- populous democracy and one of the fastest growing
major economies
• India is a newly industrialised country, it has a long history
of collaboration with several countries and is considered
one of the leaders of the developing world along with
China, Brazil, Russia and South Africa
• Till the early 1990s, India was a closed economy: average
tariffs exceeded 200 percent, quantitative restrictions on
imports were extensive, and there were stringent
restrictions on foreign investment
 India Relationship
• India has also played an important and influential role in
other international organisations like East Asia Summit,World
Trade Organisation
• India is currently seeking a permanent seat in the UN
Security Council, along with the G4 nations
• India-Sri Lanka Free Trade Agreement is also done.
• Trade Agreements with Bangladesh, Bhutan, Sri
Lanka,Maldives, China, and South Korea.
 India’s Trade Partners
• According to the Department of Commerce, the fifteen largest
trading partners of India represent 62.1% of Indian imports, and
58.1% of Indian exports as of December 2010
• India's total merchandise trade has increased over three-fold from
$252bn in 2006 to $794 in 2012 - both exports and imports have
trebled during this period
• Today india scenario is that: Piece by piece, we're establishing a
lasting partnership that's equipped to tackle today's global
challenges
• India and other country must also keep working together on major
global challenges, such as addressing the drivers of climate change
that have critical implications for every nation
 in millions of US
Country Exports Imports Dollars Total Trade Trade Balance
United Arab
36,265.15 38,436.47 74,701.61 -2171.32
Emirates
China 13,503.00 54,324.04 67,827.04 -40,821.04
United States 36,152.30 24,343.73 60,496.03 11,808.57
Saudi Arabia 9783.81 34,130.50 43,914.31 -24,346.69
Switzerland 1,116.98 29,915.78 31,032.76 -28,798.80
Singapore 13,608.65 7,754.38 21,363.03 5,854.27
Germany 7,244.63 14,373.91 21,618.54 -7129.28
Hong Kong 12,278.31 8,078.58 20,356.89 4,199.74
Indonesia 5,331.47 14,774.27 20,105.75 -9,442.80
Iraq 1,278.13 20,155.94 21,434.07 -18,877.81
Japan 6,099.06 12,514.07 18,613.14 -6,415.01
Belgium 5,506.63 10,087.16 15,593.80 -4,580.53
Kuwait 1,060.80 16,569.63 17,630.43 -15,508.83
Iran 3,351.07 11,603.79 14,954.86 -8,252.72
South Korea 4,201.49 13,461.25 17,662.73 -9,259.76
 Trade Relation with Japan
• With trade between India and Japan at $18.51 billion, it accounts for a
2.34%
share in India’s global trade.
• Petroleum products, oil meals, marine products, gems and jewellery and
iron ore being the principal commodities of export to Japan while
machinery, iron & steel, electronic goods, transport equipment and project
goods are the major items that India imports.
• After Comprehensive Economic Partnership Agreement (CEPA) was signed
between India and Japan in 2011. In 2012-13, India’s exports to Japan
were
$6.10 billion while the imports stood at $12.41 billion, leaving a trade
deficit of $6.31 billion.
• The presence of Japanese companies in India has increased from 555 sites
in
2008 to 1,422 sites in 2011 and is expected to reach 2,500 sites by 2015.
• From April 2005 to March 2013, the cumulative Indian investments into
Japan are around $371.46 million while according to JETRO, Japanese
 Import
• Crude petroleum is India's biggest import with $155bn spent on it
in 2012. Imports of gold and silver amounted to $62bn and
electronic goods and pearls and precious stones are also top
import items for the country.
• India's top import source is China followed by the UAE,
Switzerland and Saudi Arabia. The UK came in at 21st place in
2011-12 with India importing a total of $7.7bn. In the six months
recorded so far for 2012-13, the UK has dropped a place and has
a 1.4% share of the India's import sources.
Top importers from India, (in US$m) 2012-13
USA 19704.05 13.87
UAE 18601.71 13.09
SINGAPORE 6652.77 4.68
CHINA 6417.32 4.52
 Export
• A india trade relation is moving towards southern
countries, particularly in the Asia and Africa regions.
• Asia is a key destination of India's exports - in 2001-02
Asia's share stood at 40.2% but in 2011-12 it grew to to
51.6%.
• Europe, however has seen a decline in its share, down to
19% in
2011-12 from 24.8% in 2001-02
CHINA 28025.57 11.92
UAE Top exporters19622.81
to India, (in US$m)8.35
2012-13
SAUDI ARABIA 16094.83 6.85
USA 12208.05 5.19
 Product Exports & Import By India
• India's key exports in 2012 were petroleum
products which generated $56bn
• India continues to be one of the fastest growing
exporters of engineering goods, it contributing
21.49% of its total exports
• India Export of Mineral Fuels, Mineral Oils And
agricultural products to major part of world
• India imports more than 70 per cent of its weapons
and technology for its defence needs
• Crude petroleum is India's biggest import with $155bn
spent on it in 2012
 India Stand AT World Level
• The transformation of the India and world relationship was
India's rapid economic growth & the best foreign policy
today
• If we pointing that back to back visits by the Japanese
emperor and prime minister, make closer trade and
investment links between two country
• Now India government stand on trade and
investment policy which displayed a marked shift from
protecting ‘producers’ to benefiting ‘consumers’
• India should guard against being taken for granted,
because some country is smart enough to respond
to India's gestures and will do a lot to keep India happy
for carry out their work
• If we really want to stand at world level we
need flexible policy for trade, infusion of new
idea, and innovative work practice
• If we want sustainable growing trade, we should
involve in different project at world level such as
BRIC development bank project, contingency
reserve agreement etc
 Key impoter of india

• Imports in India increased to 36486.30 USD Million in December

of 2013 from 33833.20 USD Million in November of 2013.
Imports in India is reported by the Ministry of Commerce and
Industry
• According to UNCTAD's report, India's is ranked 9th most
attractive investment destination in the world, in terms of
FDI (Foreign Direct Investment). FDI as a percentage of GDP
has increased from 0.9% in 2005 to 2.8% in 2008 (higher
than China's)
 India- China : Bilateral Trade
• India & China signed a Trade Agreement in 1984
• India's trade deficit with China touched almost $40 billion
in 2012-13
• China ranks 31st in terms of FDI inflows into India
• China is already India's largest trading partner,
overtaking even the US
• China and India are the 2nd and the 5th largest economies
in the world the prospect of bilateral trade
• The Indian IT-BPO industry currently employs around
15,000 people in China, of which 90-95% are Chinese
employees
 Indian exports to
• Ores
china • Potential areas
• Biotechnology
• Slag and ash • IT and ITES
• Iron and steel • health
• education
• Plastics
• tourism
• Organic • and financial
chemicals sector
• cotton

http://business.mapsofindia.com/tr
ad e-relations/india-
Source:http://business.mapsofi
china/#sthash.AYvEKiZp.dpuf
ndia
.com/trade-relations/india-
china/#sthash.AYvEKiZp.dpuf
 Indian imports from china
• Electrical machinery and
equipment
• Cement
• Organic chemicals
• Nuclear reactors
• Boilers
• Machinery
• Silk
• Mineral fuels
• and oils.

• http://business.mapsofindia.com/trade-relations/india-china/#sthash.AYvEKiZp.dpuf
 conclusion
• The potential is huge if they work
together they could make up to 100 $
million of bilateral trade at the end of
2015.
Sources

 http://en.wikipedia.org/wiki/List_of_the_largest_trading_partners
_of_Ind
 ia
 http://articles.timesofindia.indiatimes.com/2014-02-
06/india/47089080_1_good-relations-should-india-lee-kuan-yew
-school
 http://www.dnaindia.com/money/interview-india-and-china-ca
n-benefit-
 tremendously-by-working-together-1821393

 http://rbidocs.rbi.org.in/rdocs/Publications/PDFs/PRSICBT130613
.pdf
 Thank you for your attention