India s International Trade

Brief Overview:
‡ After independence in 1947, India embarked on a program of autarky (national economic selfsufficiency) which included import substitution policies. ‡ By 1991, however, a sluggish economy combined with the forces of globalization led to a more open Indian economy. ‡ There was simultaneously a gradual rise in exports, imports, foreign direct investment (FDI), and overall economic growth.

‡ In the 1990s. As a result.Cont. ‡ By the end of the decade. which had recently experienced depreciated domestic currencies.. exports of goods and services rose from 6.2 percent of total output. however. electronic goods. which led to a decline in global prices for their manufactured goods. machinery. and automotive parts all began to decline. chemicals. . especially with India's main economic partners. exports of Indian textiles. the United States and the European Union (EU). ‡ Indian exports were further hit by serious competition from east Asian countries. growth in exports began to level off due to reduced international demand.2 percent to 8.

‡ It broke the running EXIM Policy 2002-2007 in year 2004 due to the change of Government. 2009. 2004 and remained effective till March 31. ‡ The policy came into force on September 1. . 2004.Foreign Trade Policy 2004-09 ‡ Launched on August 31.

Use trade expansion as an effective instrument of economic growth and employment generation. ‡ Thrust Sectors # Agricultural # # # # # Handicrafts Handlooms Gems and Jewellery Leather Textile .Foreign Trade Policy 2004-09 ‡ ‡ ‡ OBJECTIVES: To double our percentage share of global merchandize trade within 5 years.

# Digital Signature and EFT facility operational .Technological Expectancies ‡ Digital automation target #All Export transactions would be through EDI mode by 31st October. 2005.

Objectives ‡ To arrest and reverse declining trend of exports is the main aim of policy. aim to be reviewed after 2 years ‡ To double export of goods and services from India by 2014 ‡ To double India s share in global merchandise trade ‡ Simplification of the application procedure for availing various benefits .Foreign Trade Policy 2009-2014.

Objectives ‡ To set in motion the strategies and policy measures which catalyze growth of exports ‡ To encourage exports through a mix of measures .Foreign Trade Policy 2009-2014.

735.00 0.24 163.124.31 600.00 620.786.000.000.36 178.149.000.29 414.295.88 369.696.18 185.02 Import Total 800.751.18 400.769.India's Total Trade from 2007-2011 (In US dollars) Export 1.31 251.000.372.000.135.000.00 312.05 Apr-Mar 2008 Apr-Mar 2009 Apr-Mar 2010 Apr-Mar 2011 .132.00 1.905.13 200.00 185.67 467.00 303.991.000.00 488.89 Apr-Mar 2007 ‡ India s Merchandise Trade Turnover increased from US $312 bn in FY07 to US $620 bn in FY11(increase of 98.400.71%)   26.43 251.200.00 288.00 1.414.654.000.

18 400.00 0.991.696.00 1.000.654.20%) .00 185.400.18 185.00 312.00 1.31 600.735.00 620.67 467.751.000.43 251.36 178.000.000.124.13 200.24 163.29 414.149.786.00 288.000.000.132.000.00 488.200.00 303.02 Import Total 800.05 Apr-Mar 2007 Apr-Mar 2008 Apr-Mar 2009 Apr-Mar 2010 Apr-Mar 2011 ‡ India s Export increased from US $126 bn in FY07 to US $251 bn in FY11(increase of 99.372.414.India's Total Trade from 2007-2011 (In US dollars) Export 1.000.135.295.905.769.88 369.31 251.89 126.

135.46%) .24 185.88 369.991.00 1.31 251.00 0.654.India's Total Trade from 2007-2011 (In US dollars) Export 1.735.13 200.00 288.000.000.400.200.05 163.414.000.00 1.18 400.000.905.31 600.786.000.89 126.00 312.149.295.696.000.02 Import Total 800.00 303.00 488.000.769.00 185.751.000.18 Apr-Mar 2007 Apr-Mar 2008 Apr-Mar 2009 Apr-Mar 2010 Apr-Mar 2011 ‡ India s Import increased from US $ 185 bn in FY07 to US $369 bn in FY11(increase of 99.132.36 178.29 414.43 251.00 620.124.67 467.372.

281.697.79 5) CIS & Baltics 6) Unspecified Region 2) Africa 3) America In US $ Millions .15 1) Europe 50.40 141.63 3.India s Exports Region Wise for FY 2011 2.73 16.18 4) Asia & ASEAN 37.122.863.022.148.

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India s Exports Commodity Wise In Dollars In Rupees .

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India s Imports Commodity Wise In Dollars In Rupees .

Changes in gems and jewellery Sector ‡ Plan of establishing Diamond Bourses around the country ‡ Import of cut and polished diamonds for certification and grading has been introduced on consignment basis ‡ Personal carriage limit increased ± For exhibitions US$ 5 million ± For samples US$ 1 million .

Foreign Trade Policy 2009-2014. Changes in Agriculture Sector ‡ To reduce transaction and handling costs. The system involves creation of multi-functional nodal agencies to be accredited by Agricultural and Processed Food Products. . Export Development Authority. a single window system to facilitate export of perishable agricultural produce has been introduced.

‡ Enhancement of FPS rate to 2%. subject to payment of 50% of the applicable export duty.Foreign Trade Policy 2009-2014. Changes in Leather Sector ‡ Leather sector shall be allowed re-export of unsold imported raw hides and skins and semi finished leather from public bonded ware houses. would also significantly benefit the leather sector .

Changes for Export of Tea ‡ Minimum value addition under advance authorization scheme for export of tea has been reduced from the existing 100% to 50%. . ‡ Export of tea has been covered under VKGUY Scheme benefits. ‡ DTA sale limit of instant tea by Export Oriented Unit (EOU) units has been increased from the existing 30% to 50%.Foreign Trade Policy 2009-2014.

Changes in Pharmaceutical Sector ‡ Export Obligation Period for advance authorizations issued with 6-APA as input has been increased from the existing 6 months to 36 months.Foreign Trade Policy 2009-2014. ‡ Pharmaceutical sector extensively covered under MLFPS for countries in Africa and Latin America. as is available for other products. some countries in Oceania and Far East. .

Foreign Trade Policy 2009-2014. requirement of Handloom Mark for availing benefits under FPS has been removed. Changes in Handloom Sector ‡ To simplify claims under FPS. .

subject to certain safeguards . Changes for Export Oriented Units ‡ EOU s can sell 90% of their production in Domestic Tariff Area ‡ EOUs will now be allowed to procure finished goods for consolidation along with their manufactured goods.Foreign Trade Policy 2009-2014.

00 Apr-Mar 2007 Apr-Mar 2008 Apr-Mar 2009 Apr-Mar 2010 Apr-Mar 2011 .00 USA 25.000.000.000.000.00 U ARAB EMTS CHINA P RP SINGAPORE 15.00 5.000.India s major Export partners 2007-2011 40.00 UK 10.00 HONG KONG 20.00 35.000.000.00 0.00 30.000.

000.00 40.000.00 IRAN SWITZERLAND 15.000.00 35.000.00 45.India s major Import partners 2007-2011 50.00 SAUDI ARAB U ARAB EMTS 20.000.000.000.00 30.000.00 0.00 10.000.00 Apr-Mar 2007 Apr-Mar 2008 Apr-Mar 2009 Apr-Mar 2010 Apr-Mar 2011 .00 CHINA P RP USA 25.00 5.000.

India s Major Export Partners In Dollars In Rupees .

India s Major Import Partners In Dollars In Rupees .

.Conclusion ‡ Conversion of Imports and Exports (Control) Act. 1947 to Foreign Trade Development and Regulation Act. 1992 was a remarkable change ‡ Foreign Trade Policy 2004-2009 had a good impact on India s trade ‡ Focus Market Scheme in Foreign Trade Policy 2009-2014 was an important factor.

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