This document discusses India's foreign trade, including the significance of foreign trade, India's composition of imports and exports, and India's foreign trade policies before and after economic reforms. It notes that India's top imports in 2015-16 were petroleum, electronic goods, and precious stones, while top exports were engineering goods, gems and jewelry, and readymade garments. It also summarizes key aspects of India's EXIM policies from 2002-2014, which focused on increasing India's share of global trade and promoting employment through export-led growth.

1. FOREIGN TRADE
Jasmine Kaur
Assistant Professor
RGNUL

2. Significance of Foreign Trade
 Trade based on comparative advantage
 Optimum utilisation of resources
 Promotes competition
 Optimisation of consumption
 Development of SOCs
 Technological development
 Promotes cooperation
 Check on domestic monopoly

3. India’s Composition of Foreign
Trade
 Composition of Imports
 Import of POL amounted to $82,880 million
which was 21.8% of total import expenditure in
2015-16
 Import of electronic goods amounted to
$40,012 million in 2015-16
 Import of pearls, precious and semi precious
stones amounted to $20,072 million which was
5.3% of total import expenditure in 2015-16
 Import expenditure on electrical and non-
electrical machinery amounted to $29,452
million in 2015-16

4. India’s Composition of Foreign
Trade
 Composition of Exports
 Export of engineering goods amounted to
$60,570 million in 2015-16
 Export of gems and jewellery amounted to
$39,473 million in 2015-16
 Export of readymade garments amounted to
$16,956 million in 2015-16
 Export of leather and leather products
amounted to $5401 million in 2015-16

5. Foreign Trade Policy in the Pre-
Reform Period
 Import substitution
 Simplification of procedural formalities
 Export promotion
 Minimization of the role of quantitative restrictions
and reduction in tariff rates
 Setting up of Export processing zones to push up
exports

6. Trade Policies in the Post-Reform
Period
 Rationalization of tariff structure
 Decanalisation
 Devaluation
 Trading houses
 Setting up of SEZs
 Agriculture Export Zones
 Market Access Initiative Scheme

7. EXIM Policy (2002-07)
 The target was to increase country’s share in
the world trade to 1 per cent by 2007
 To increase the growth rate in exports to 12.4
% per annum
 To allow liberal import of technology
 To remove quantitative restrictions

8. EXIM Policy (2002-07)
 Facilities for agriculture sector
 Benefits to cottage and small scale industries
 Facilities to SEZs
 Facilities for industrial sector
 Focus on export led growth
 Procedural simplification

9. EXIM Policy (2004-09)
 The target was to double India’s percentage share
of global merchandise trade by 2009. The target
was set to achieve 1.5 % share in world trade by
2009
 The objective was to act as an effective
instrument of economic growth by giving a thrust
to employment generation, especially in semi-
urban and rural areas

10. EXIM Policy (2004-09)
 Measures for agriculture sector
 Measures for gems and jewellery business
 Handlooms and handicrafts sector
 Leather and footwear sector
 Vishesh krishi upaj yojana
 EPCG scheme
 Exemption from certain taxes to EOUs
 Free trade and warehousing zone

11. EXIM Policy (2009-14)
 Expansion of Focus Market Scheme and
Focus Product Scheme
 EPCG Scheme
 Sale of products by EOUs in Domestic Tariff
Areas up to a limit of 90%
 Simplification of procedures

12. EXIM Policy (2015-20)
 Objectives:
 To increase exports of merchandise and services to approx $900
billion by 2019-20
 To increase the country’s share in world’s exports to 3.5%
 To diversify India’s exports
 To improve India’s BOP position
 Merchandise Export from India Scheme
 Service Export from India Scheme
 Ease of Doing Business

13. THANK YOU