Hybridoma Technology ( Production , Purification , and Application )
INDIA'S FOREIGN TRADE
1. Foreing Trade in
India
M. SABESH MANIKANDAN
Assistant Professor of economics
Ayya Nadar Janaki Ammal Collge
Sivakasi
2. Unit V: Foreign Trade
Trends in Foreign Trade
Foreign Trade
Trade Policy
01
02
03
• Meaning and features of Indias foreign trade
• Composition, Volume and Direction of India’s foreign trade
• Recet trends in India’s foreign trade
• Growth and performance
• Free trade Vs protection, Special Economic Zone (SEZs)
• WTO and India
4. Foreign
Trade
International trade is a trade between nations
Anatol Marad
International Trade
Inter – regional Trade
Foreign trade
External trade
Meaning . . .
International trade consists of
transaction between residents of
different countries
Wasserman and Haltman
5. The degree of immobility of factors viz.,
labour capital is generally greater
between countries than within a country
Immobility of Factors
World markets lack homogeneity on
account of differences in climate,
language, preferences, habit , customs,
weights adn measures etc.,
Hetrogeneous Market
The socio – economic environment
differs greately among different nations
Different National Groups
Occurs amongst diffent political units
Different Political Units
Foreign Trade
Features of foreign Trade
6. Different Policies pertaining to trade,
commerce, export and import, taxation
etc.,
Different National Policies and
Governmetn Intervention
It involves the use of different types of
currencies.
Different Currencies
The geographical advantages of the
country - Natural monopoly.
Geographical Specialisation
obtain foreign goods at lower prices.
Comparative Advantage
Foreign Trade
Features of foreign trade
7. Merchandise exports of WTO members totalled US$ 16.2 trillion in 2015.
$16.2 trillion
Developing economies had a 42%
share in world merchandise trade
in 2015.
The top ten merchandise traders
accounted for 52% of the world’s
total trade in 2015.
World Export
Economies by size of merchandise trade, 2015
49.6
%
41.5%
30% 84%
35.5%
8. Major Economies
(% to GDP)
Year India China
1980 15.1 12.5
1985 12.7 22.9
1990 15.2 29.6
1995 22.5 38.4
2000 26.4 39.4
2005 41.3 62.9
2010 48.3 49.3
2014 49.6 41.5
Foreign Trade
In 1984, China and India had a similar
degree of globalization with the trade to
GDP ratio 16.6% for China and 13.8% for
India.
The trade to GDP ratio steadily increased to
a peak of 64.8% in 2006.
India, its global trade expands at a faster
pace than its economy, resulting in a
steadily climbing trade to GDP ratio
International Trade
India's trade-GDP ratio
9. India’s
Trade
7th Rank
World’s largest
Economy based on
the Nominal GDP
3rd Rank
World’s 3rd largest
economy in terms of
Nominal GDP (PPP) for
2015: US$ 8 trn.
GDP is measures in
trillion and it reaches
US$ 2.1 trillion in 2015.
US$ 2.1 trillion
India’s per capita GDP is
US$1539 in 2015
US$ 1539
India's total trade 24.8% to
the total GDP during 2013
- 2015.
24.8% of GDP
10. India ranks 13th largest
country in the world in terms
of Merchandise imports
13th Rank
India ranks 8th largest
country in the world in
terms of commercial
services imports
9th Rank
imports around 6000
commodities from 140
countries.
6000
India ranks 19th largest
country in the world in terms
of Merchandise trade
19th Rank
India ranks 8th largest
country in the world in terms
of commercial services
exports
8th Rank
exports approximately 7500
commodities to about 190
countries.
7500
India’s Foreign Trade
India’s Rank in World Trade 2015
12. Composition and volume of foreing trade
Composition of Foreign Trade
Combination of export and import
Major portion of imports in India are in the areas of fuels,
capital goods, chemicals, food grains etc.,
Exports are in teh area of manufactured goods textiles, gems,
and Jewellery , handicraft , light machinery etc.,
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Composition of Foreign Trade
Directions of India’s foreign trade
16. 74%
0.6%
12% 74%
Manufactured goods which includes
Engineering Goods,
Gems and Jewellery,
Chemicals and Allied products, and
Readymade Garments
All commodities exports was
US$ 237.37billion
Fish Products,
Rice,
Oil Cakes,
Fruits and
Vegetables
Agricultural and
Allied Products Ores and Minerals
Mineral Fuel and
Lubricants
14.74%
Composition: Export
Composition of India’s Export (2015 – 16)
12% 0.6%
14.74
%
17. The share of agriculture exports
was 19.5% in 1990-91. It came
down to about 10.2% in 2005-06..
Manufactured Goods
Ores and Minerals
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Crude and Petroleum Product
the export performance of ores and
mineral has increased from 4.4% in
199091 to 5.2% in 2005-06.
Its share has increased from less
than 2.9% in 1990-91 to 11.5% in
2005-06.
The share of manufactured items in
the total export earnings of India is on
the increase. In 1990-91, it was 73%
and it reduced to 72% in 2005-06
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Composition of Export
Composition of India’s Exports
Other Unclassified items
Here.
Agricultural and Allied Products
72.5%
11.5%
10.2%
5.2%
18. The purchase of the whole or
greater part of the output of a
commodity of a country or state
by a single buyer, usually
another country or state; state
trading
Bulk Imports
Non-Bulk Imports
Import
Import Compostition of India’s foreign trade
21. Import Composition
Composition of India’s Import :2013 - 14
Rs .
2714182
crores
Petroleum,
Crude &
products
36.8%
Bulk
Consumption
Goods
2.6%
Other Bulk
Items
8.7%
Capital
Goods
19.0%
Mainly Export
Related
Items
10.9
Others
25.1
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Directions of Foreign Trade
Countries to which India exports its goods and teh countries
from which India imports its goods
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Directions of Foreing Trade
Directions of India’s foreign trade
26. 1.61.71.7
1.71.6
2011
2012
2013
2014
2015
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appeal to your
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appeal to your
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audience and add
a unique zing and
appeal to your
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audience and add
a unique zing and
appeal to your
Presentations.
India’s Export
Trends of India’s export share to the World export
30. Trade Policy
Policy of no restrictions or
government interference in
foreign trade
Free Trade
Policy of restriction or
interference by government in
foreign trade
Protection Trade
31. Trade Policy
is that system of commercial policy which draws no
distinction betwen domestic and foreign commodities and
therefore, neither imposes additional burderns on the
latter, nor grants any special favours to the former
Adam Smith
Free Trade
Trade protectionism is a type of policy
that limits unfair competition from
foreign industries.
Protection
32. Special
Economic
Zone
to increase and promote exportable,
to encourage the export oriented businesses
to increase the export market
The creation of special economic zones by
the host country may be motivated by the
desire to attract foreign direct
investment (FDI).
Special Economic Zone Act 2005
33. Year
Value
(Rs. In Cr)
(% of
Change)
2003-2004 13,854 39
2004-2005 18,314 32
2005-2006 22, 840 25
2006-2007 34,615 52
2007-2008 66,638 93
2008-2009 99,689 50
Exports of SEZs
Total 347 SEZ are exists
It aims to provide direct employment to over
3.87 lakh persons
providing direct employment to about 1.9
lakh persons
made an investment of Rs. 98498 crore
SEZs in India
Performance of SEZs
34. Nokia
Rs. 10385.3 cr.
Physical exports
14859 persons.
Direct Employment
FDI : Rs.833.51 cr.
Rs. 2225.47
crore
Mahindra
Rs. 1524.56 cr.
Physical exports
9383 persons.
Direct Employment
FDI : Rs.187.63 cr.
Rs. 2404.17
crore
Apache
Rs. 172.03 cr.
Physical exports
5342 persons.
Direct Employment
FDI : Rs. 16.77 cr.
Rs. 227.15
crore
Mundra
Rs. 768.44 cr.
Physical exports
870 persons.
Direct Employment
Rs. 25545.0
crore
SEZs in India
Selected cases of SEZs in India
36. 01 Add Contents TitleObjectives
•Reduction of tariffs and
other barriers to trade
•Eliminate discriminatory
treaterment
•Facilitate higher
standard of Living, full
employment, real
income and effective
demand
WTO
Objectives of the World Trade Organisation
01 Objectives
•Ensures the
economic
development of
developing nations
•Optmial use of
World’s resources
for sustainable
development
•Integrated viable
and trading system
38. Customs duties are being
reduced during 1995 - 2005
Tariff Reduction
CVR 1998 was amended to
comply with the provisions of
WTO
Customs Valuation Rule
Patents (amendment) Act 1999 to
provide exclusive marketing
rights, patents
TRIPS
Removal of quantitative
restrictions on 715 itmes
Quantitative Restrictions
Dividend balancing requirement
for investment in 22 categories
of consumer items.
TRIMS
WTO and India
India’s committment with WTO
GATS committments were
made relating to 33 activities
GATS
39. Comparative Cost Advantage
Free Trade
Advantages and Disadvantages of Free Trade
More Factor Earnings
Cheaper Imports
Elarged Market
Competition
Greater Welfare
01 Advantages
Exploitation of Resources
Not Gainful
Increase the dependency
Discouraging self-sufficiency
Unfair competition
Unfavourable balance of payments
02 Disadvantages
40. Tems of trade
Protection Trade
Arguments for and against protection trade
Bargaining
Anti-dumping
Diversification
Infant Industry
Balance of payment s
01 Arguments for
Underutilisation of natural resources
Encouragement of ineffcient industries
Establishment of monopolistic firms
Loss of consumers
Fall in efficient of industries
02 Arguments against
