3. TOPICS TO BE COVERED
Trend and pattern of India‘s foreign trade and balance of payments; latest
foreign trade
policy; India‘s overseas investments; policy towards foreign direct
investment; globalization
trends in Indian economy; role of MNCs; impact of multilateral institutions
(IMF, World
Bank and WTO) on Indian business environment.
4.
5. Balance of Payment (BOP)
The balance of payments (BOP) is a
statement of all transactions made between
entities in one country and the rest of the
world over a defined period of time, such as a
quarter or a year.
6.
7. Causes of Unfavourable Balance of
Payment
Import of Machinery
Price Disequilibrium
Foreign Competition
Import of War Equipment
Payment of Interest on Foreign Debts
Less Growth in Exports
Poor Quality of Industrial Production
Backward Technology
More demand on Consumption Goods
8. Suggestion to correct disequilibrium in
the balance of payment
Promotion of Exports
Encourage to Foreign Investment
Increase in Production
Attraction of Foreign Tourists
Trade Agreement
Deflation
Import Substitution
Restriction on Inessential Imports
9.
10.
11. New Exim policy
The New Exim policy was announced on August 31,
2004. This policy is named as Foreign Trade policy
2004-09. The main objective of the policy is to
double our percentage share in world trade within
the next five years. This policy is designed to use
foreign trade as an instrument for promoting
economic growth.
12.
13. Features of New EXIM Policy
Facilities for Agricultural Sector
Facilities for Handloom and Handicraft Sector
Facilities for Gems and Jewellery Industries
Special Schemes for Export Promotion
Setting up of free trade and warehousing zones
More facilities to Special Economic Zones
Special concessions for Export-Oriented Units
Scheme of Categorisation of Star Export Houses
