Recent trends in foreign trade in india


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Recent trends in foreign trade in india

  2. 2. Contents SR. NO PARTICULARS 1 Introduction 2 Foreign Trade Policy 3 Need And Importance Of Foreign Trade 4 Documents Used In Foreign Trade Transactions 5 Salient Features Of Foreign Trade 6 Benefits & Limitations Of Foreign Trade 7 Foreign Trade Performance Of India - Exports & Imports 8 Conclusion 9 Bibliography
  3. 3. Introduction International trade means trade between the two or more countries. It involves different currencies of different countries and is regulated by laws, rules and regulations of the concerned countries. There are 2 types of Trade 1. Internal Trade 2. External Trade
  4. 4. Introduction Foreign Trade can be classified into  Visible Trade  Invisible Trade Deemed Exports – Those transactions in which goods supplied do not leave the country and the payment for such supplies is received either in Indian Rupees or in free foreign exchange.
  5. 5. Introduction Balance Of Trade The difference between the value of goods and services exported out of a country and the value of goods and services imported into the country.  The balance of trade is the official term for net exports that makes up the balance of payments.  The balance of trade can be a "favorable" surplus (exports exceed imports) or an "unfavorable" deficit (imports exceed exports).  The official balance of trade is separated into the balance of merchandise trade for tangible goods and the balance of services.
  6. 6. Introduction Balance Of Payment : • The balance of payments accounts of a country record the payments and receipts of the residents of the country in their transactions with residents of other countries. • If all transactions are included, the payments and receipts of each country must be equal. • Although the totals of payments and receipts are necessarily equal, there will be inequalities — excesses of payments or receipts, called deficits or surpluses. Thus, there can be a deficit or surplus in any of the following: merchandise trade (goods), services trade, foreign investment income, unilateral transfers (foreign aid), private investment, the flow of gold and money between central banks and treasuries, or any combination of these or other international transactions.
  7. 7. Introduction Dumping: When goods are sold in the foreign market without contract of sale. Types of dumping :- Sporadic Predatory Persistent Reverse
  8. 8. Introduction Foreign Trade includes :- Involvement of different monitory units Imposition of restrictions in Import and Export by various countries Imposition of restrictions on release of foreign currencies existence of multiple regulations
  9. 9. Foreign Trade Policy 2009-14 • India has become the largest exporter or rice and second largest exporter of wheat. • The Export Promotion Capital Goods (EPCG) scheme would be available to all sectors. • Any exporter who takes benefit of the technology upgradation scheme is now eligible to use the zero per cent EPCG scheme. • Extension of the zero-duty export EPCG scheme beyond March 2013. • The minimum area requirement for Special Economic Zones (SEZs) has been reduced to fulfil the contiguity norms. • Norway & Venezuela have been added to Focused Market Scheme
  10. 10. Foreign Trade Policy 2009-14 • Engineering, Pharma & textiles have been added to Focused Product Scheme. • For multiproduct SEZs, the minimum area required now is 500 hectares from 1,000 hectares. • For sector specific SEZs, the minimum area required now is 50 hectares from 100 hectares while for IT SEZs, the developers will have to meet minimum built up area criteria. • Since SEZs do not have an Exit Policy, it has now been decided to permit transfer of ownership of SEZs units, including sale. • The 2 per cent interest subvention has been extended to 134 sub sectors of engineering sector.
  11. 11. Need & Importance Of Foreign Trade 1. Division of labour and specialization 2. Optimum allocation and utilization of resources 3. Equality of prices 4. Ensure quality and standard goods 5. Raises standard of living of the people 6. Generate employment opportunities 7. Maintains Balance of Payment
  12. 12. Documents Used In Foreign Trade Transactions 1. Indent 2. Mate’s Receipt 3. Bill of Lading 4. Letter of Credit 5. Certificate of Origin 6. Consular Invoice 7. Bill of Entry 8. Dock Receipt 9. Commercial Invoice
  13. 13. Salient Features Of Foreign Trade Of India 1. Negative or unfavorable Trade 2. Diversity in Exports 3. Worldwide Trade 4. Change in Imports 5. Maritime Trade 6. Trade through selected ports only 7. Insignificant Place of India in the World Overseas Trade 8. State of Trading
  14. 14. Benefits Of International Trade 1. Greater Variety of Goods Available for Consumption 2. Efficient Allocation and Better Utilization of Resources 3. Promotes Efficiency in Production 4. More Employment 5. Consumption at cheaper cost 6. Reduces Trade fluctuations 7. Utilization of Surplus Produce 8. Fosters Peace and Goodwill
  15. 15. Limitations Of Foreign Trade 1. Rapid Depletion of Exhaustible Natural Resources 2. Import of Harmful Goods 3. It may Exhaust Resources 4. Over Specialization 5. Danger of Starvation 6. One Country Gains at the Expense of Other 7. May Lead to War 8. Language Diversity
  16. 16. Foreign Trade Performance Of India
  17. 17. Exports By Principal Commodities 1. Plantation Crops 2. Agriculture and allied Products 3. Ores and Minerals 4. Leather and Leather Manufactures 5. Gems and Jewelry 6. Chemical and related products 7. Engineering Goods 8. Electronic Goods 9. Textiles 10. Handicrafts and Carpets 11. Projects Goods 12. Petroleum Products
  18. 18. Share From Exports From The World
  19. 19. Export Of Principal Commodities
  20. 20. Month Wise Exports From 2008-2011
  21. 21. Port Wise Percentage Share From Total Imports In 2010-2011
  22. 22. India’s Export To Top 10 Countries From 2006-2011
  23. 23. Imports By Principal Commodities 1. Fertilizers 2. Petroleum Crude and Products 3. Pearls, Precious, and Semi-Precious Stones 4. Capital Goods 5. Organic and Inorganic Chemicals
  24. 24. Share Of Imports From The World
  25. 25. Month Wise Import From 2008-2011
  26. 26. Percentage Share Of Imports Of Major Commodity Groups In 2010 - 2011
  27. 27. Petroleum Import From The Top 6 Countries From 2008-2011
  28. 28. Conclusion • India’s foreign Trade has undergone a positive change. • After the implementation of the Foreign trade policy, the Import and export among foreign countries have increased and have become more secured • Setting up of EPZ and SEZ have also increased foreign investors
  29. 29. Bibliography • glance.aspx •