INTERNATIONAL

TRADE IN INDIA

Presented by
Chris Itty Biju
WHAT IS INTERNATIONAL
TRADE?
 International Trade is exchange of capital, goods,
and services across International borders or
territories. In most countries, it represents a
significant share of gross domestic product
(GDP). While International Trade has been
present throughout much of history.
Importance of International Trade

• Trading globally gives consumers and countries the opportunity to be

exposed to goods and services not available in their own countries, or
more expensive domestically,
• International Trade is the backbone of our modern, commercial world, as
producers in various nations try to profit from an expanded market ,
rather than limited selling borders.
• Global trade allows wealthy countries to use their resources—for
example, labor, technology, or capital, more efficiently. Different
countries are endowed with different assets and natural resources: land,
labor, capital, and technology, etc.
 Risks in International Trade
 Buyer insolvency(purchaser cannot pay);
 Non-acceptance (buyer rejects goods as different from the agreed upon
specifications);
 Credit risk (allowing the buyer to take possession of goods prior to payment);
 Regulatory risk(e.g., a change in rules that prevents the transaction);
 Intervention (governmental action to prevent aa transaction being
completed);
 Political risk (change in leadership interfering with transaction or prices);
 War and other uncontrollable events.
 Trade in India 
Trade and Commerce have been the backbone of the Indian
economy right from ancient times. Textiles and spices were the
first products to be exported by India. The Indian trade scenario
evolved gradually after the country's independence in 1947.
From the 1950s to the late 1980s, the country followed
socialist policies, resulting in protectionism and heavy
regulations on foreign companies conducting trade with India.
 India Trade: Imports
India's major imports comprise of crude oil machinery, military products,
fertilizers, chemicals, gems, antiques and artworks. Imported goods are
divided into the following categories:
 Freely importable items: For these items, no import license is required. They
can be freely imported by an individual or a firm.
 Canalized items: These items can only be imported by public sector firms.
For example petroleum products fall under this category.
 Prohibited items: Items such as unprocessed ivory, animal rennet and
tallow fat cannot be exported to India.
India's total Import Growth from Jan 2010-2020
 India Trade: Exports

• Indian exports comprise mainly of engineering and textile products,

precious stones, petroleum products, jewelry, sugar, steel chemicals,
zinc and leather products. Most of the exported goods are exempt
from export duties.
• India also exports services to several countries, primarily to the US.
In fact, India is among the World's largest exporters of
services related to information and communication technology (ICT).
It is also the key destination for business process outsourcing (BPO).
THANK YOU

By
Chris Itty Biju