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International trade in india ppt

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  • 1. INTERNATIONALTRADE IN INDIA
  • 2.  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 (see Silk Road, Amber Road), its economic, social, and political importance has been on the rise in recent centuries.
  • 3. Importance of InternationalTrade  Without international trade, nations would be limited to the goods and services produced within their own borders.  International trade is the backbone of our modern, commercial world, as producers in various nations try to profit from an expanded market, rather than be limited to selling within their own borders. There are many reasons that trade across national borders occurs, including lower production costs in one region versus another, specialized industries, lack or surplus of natural resources and consumer tastes.
  • 4. 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 a transaction being completed);  Political risk (change in leadership interfering with transactions or prices); and  War and other uncontrollable events. In addition, international trade also faces the risk of unfavorable exchange rate movements
  • 5. 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.
  • 6. 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.
  • 7. India's Import Performance (1999-2000 to 2003-04) 77237 566135158850056 61572 49799 37172 0 10000 20000 30000 40000 50000 60000 70000 80000 90000 1999-2000 2000-01 2001-02 2002-03 2003-04 Years US$million All Commodities Petroleum crude & products Non-POL items
  • 8.  Indian exports comprise mainly of engineering and textile products, precious stones, petroleum products, jewelry, sugar, steel chemicals, zinc and leather products. Most of the exported goods are exempt from export duties.  India also exports services to several countries, primarily to the US. In fact, India is among the world’s largest exporters of services related to information and communication technology (ICT). It is also the key destination for business process outsourcing (BPO).
  • 9. India's Export Performance (1999-2000 to 2003-04) 63623 47742 52856 4397644147 36760 29751 0 10000 20000 30000 40000 50000 60000 70000 1999-2000 2000-01 2001-02 2002-03 2003-04 Years US$million All Commodities Agricultural & allied products Ores & minerals Manufactured goods Petroleum & crude products
  • 10. EXIM BANK  Set up by an act of parliament in September 1981  Wholly owned by Government of India  Commenced operations in march, 1982  Established “for providing financial assistance to exporters and importers, and for functioning as the principal financial institution for coordinating the working of institutions engaged in financing export and import of goods and services with a view to promoting the country’s international trade…”
  • 11. Where Does India Stand Globally? International Trade of Select Countries in 2003 Country Exports Imports GDP Trade as % of GDP (US$ bn.) (US$ bn.) (US$ bn.) Korea 197.6 175.5 605.0 61.7 China 438.3 393.6 1446.9 57.5 Mexico 165.4 171.0 626.1 53.7 Russia 135.9 75.4 433.5 48.7 South Africa 38.7 35.0 160.1 46.0 Argentina 29.4 13.1 129.7 32.8 Brazil 73.1 48.3 492.1 24.7 India 57.0 74.3 588.8 22.3 Source: Economist Intelligence Unit  India’s share in global merchandise exports: 0.8% (2003)
  • 12. THANK YOU Made By:- Shivansh Jagga

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