IB PROJECT

ON
INDO-GERMAN TRADE

SUBMITTED TO:- SUBMITTED BY:-

Monika Singh mam • Manpreet Sahni

• Mitali Nag

• Nalini Sharma

• Noopur Falod
 INDO-GERMAN RELATION

India today ranks 8th amongst 10 most important

countries having trade with Germany.
Germany today is the 4th largest trade partner
of India.
 TRADE RELATIONSHIP
 Agenda for German-India partnership in 21 st
century adopted by foreign ministers in 2000.
 The Ten Point agreement: origin of reference
 Focused on economic, scientific & cultural
cooperation.
 Global challenges were addressed.
 AGREEMENTS B/W INDIA &
GERMANY

The First Point Agenda deals with:-

 Improving bilateral political relations.

 Expanding meeting and dialogues.
Second Point Agenda
Issues of security policy & disarmament.

Commitment to worldwide disarmament

&
Non-proliferation.
Third Point Agenda
Commitment to deepen & strengthen economic
ties b/w India & Germany.

Relations in the field of science & research to be

strengthen.
Fourth Point Agenda
Science Research & Technology Cooperation:
centerpiece of Indo-German relations in future.

Exchange of academics & students.

 Five- Eight Point
Agenda
Cultural relations.

Broader & more comprehensive coverage of national

media.

Cooperation on the issues of environmental protection.

Nine-Ten Point Agenda
Future-oriented.

Commitment to work together on

reforming U.N. systems.
 ECONOMIC RELATIONS
 IGCC celebrated 50th year anniversary in 2006.
 India as country partner in HANNOVER
FAIR signify strengthen economic relationship
with Germany.
 Mr. Manmohan Singh & federal chancellor
Angela Merkel agreed to double trade volume
to 20 billion euros until 2012.
 TRADE VOLUME B/W INDIA
AND GERMANY

 By the end of 2008 trade has reached 13.4 billion euros.

 Trend shows that trade volume doubles to 10 billion euros
by 2010.
 Growth rate of 11% could be retained.
 MILITARY, DEFENCE &
SECURITY

 Indo-German partnership adopted in 21 st

century.
 Focus on fight against terrorism, still the
impact of security cooperation remains low.
 The overall trend of export from Germany is
slightly rising.
 GERMAN ARMS SALES TO INDIA

 Germany is the 5th largest

exporter of arms to
India.
 Military acquisitions from
Germany include:
 Type-209 submarine

 Diesel engines

 DO-228 aircraft
MAJOR SUPPLIERS OF ARMS
TO INDIA
Foreign Trade Policy of India

 Foreign trade propels economic growth &

national development.
 Primary purpose: stimulation of greater
economic activity.
 Doubles share of global merchandised
trade.
 Efficient economic growth.
STRATEGY OF FOREIGN TRADE
POLICY
 Promoting entrepreneurship, industrialization
& trade
 Bringing down transaction cost
 Simplification of levies & duties
 Development : a global hub for manufacturing
trading and services
 Generating employment opportunities
 EXIM POLICY
Exim policy discussed under different export
sectors:

 Service  Export cluster

 Agro  SEZs
 Status holder  Removal of quantitative
 Hardware & Software restrictions
 Gems & jewellery
 Transaction cost
reduction
 BALANCE OF TRADE

Meaning:-
The difference between the value of exports and
imports of goods and services is BOT.
BOT= Visible exports –Visible imports
[favorable BOT= exports – imports
unfavorable BOT= imports- exports]
 BALANCE OF PAYMENT

BOP is the record of economic & financial

transaction between a country & rest of the
world over a specified period of time

Further Divided:
*Current Account
*Capital Account
 CURRENT ACCOUNT
TRANSACTION

 Merchandise Export Fob.

 Merchandise Import Fob.
 Export of non-financial service
 Investment income: export of financial service
 An unrequited transfer
 CAPITAL ACCOUNT
TRANSACTIONS

 Autonomous capital transaction

 Accommodating financial transaction
 INDIA-GERMAN BALANCE
TRADE
  1997-98 1998-99 1999-2000 2000-01 2001-02 2002-03

 
EXPORT 713971.25 77912.38 75329.20 87146.01 85290.05 101953.44

Growth(%)   9.13 3.32 15.69 -2.13 19.54

India's Total Export 1292777.00 1397531.6 1595617.70 2035710.20 2090179.80 2551372.80

Growth (%)   8.10 14.17 27.58 2.68 22.06

Share(%) 5.52 5.57 4.72 4.28 4.08 4.00

IMPORT 93963.75 90059.82 79775.20 80385.73 96723.83 116367.72

Growth(%)   4.15 -11.42 0.77 20.32 20.31

India's Total Import 1541762.80 1783318.60 2155284.40 2308727.60 2451997.20 2972058.60

Growth(%)   15.67 20.86 7.12 6.21 21.21

Share(%) 6.09 5.05 3.70 3.48 3.94 3.92

TOTAL TRADE 165360.88 167972.20 155104.41 167531.74 182013.88 218321.16

Growth(%)   1.58 -7.66 8.01 8.64 19.95

India's Total Trade 2834539.80 3180850.20 3750902.10 4344437.80 4542177.00 5523431.40

Growth(%)   12.22 17.92 15.82 4.55 21.60

Share(%) 5.83 5.28 4.14 3.86 4.01 3.95

TRADE BALANCE 22566.63 12147.44 4446.00 6760.28 11433.77 14414.28

India's Trade Balance -248985.80 -385787.00 -559666.70 -273017.40 -361817.40 -420685.80

Source: Federal Ministry of Commerce, India

THANK
YOU