this presentation gives you view about current trends going on in india in international business segment it consists of export import trade balance or deficit and also counter trade . thank you

1. Current Global Trends in Exports, Imports
& Counter Trade
Made BY
ROSHAN CHAWLA 0171MBA042
GULSHAN PODDAR 0171MBA011
AKANSHA JHA 0171MBA002
HIMANSHU GROVER 0171MBA013

2. • Over the last 25 years since India’s liberalisation, its foreign trade has expanded multifold and seen
significant structural shifts in product as well as geographic composition.
• The easing of quantitative restrictions as well as significant reduction in tariff levels across product
lines has aided the growth of foreign trade in the first two decades post liberalisation.
• In-fact, the share of foreign trade (both exports and imports) in India’s GDP stood at over 43%
during 2011-13 as against 13 -15% during early nineties.
INTRODUCTION
• During the last 25 years, India’s exports have increased more than 17 times, from US$ 18.1 billion
in 1990-91 to US$ 309 billion in 2014-15, and India’s imports have increased 19 times, from US$
23.5 billion in 1990-91 to US$ 447 billion in 2014-15.
• India’s share in global exports has moved up from mere 0.6 percent in early nineties to 1.7 percent
currently. Likewise, India’s share in global imports has increased from around 0.6 percent during
early nineties to 2.4 percent currently.

3. India Exports
Exports from India increased 9.1 percent year on year to USD
24.4 billion in January 2018 boosted by sale of :
• Engineering goods (15.8 %)
• Petroleum products (39.5 %)
• Gems and Jewellery (9.07%)
• Organic and inorganic chemicals (33.6 %)
• Drugs and Pharmaceuticals (8.6 %)

4. Exports recorded a growth of 4.06 per cent during Apr-Mar 2013-14.
The Government had set an export target of US $ 325 billion for 2013-
14. The merchandise exports have reached US $ 312.61 billion in
2013- 14. Export target and achievement from 2004-05 to 2013-14

5. Recent export trends for major commodities
 Engineering Goods
India’s top export item is Engineering goods, accounting for 22.5% in India’s total exports in 2014-15.
Within this category, some of the prominent export items are Transport Equipment (including Automobiles
and Auto components), Iron and Steel and Machinery & Instruments.
 Petroleum products
India’s refining capacity increased significantly since 2001-02, due to which India turned a net exporter of
petroleum refinery products and this category has lately emerged as the largest item in India’s export
basket.
Chemicals and chemical products
•An important export item that has performed reasonably well over the last two years is Chemicals and
chemical products, which account for 10.4% share in India’s total exports (2014-15). Under Chemicals
sector, drugs and pharmaceuticals are the largest export category accounting for 47.7% share.
•Exports of this sector have performed well during the last two years, especially in the US market, which is
the largest export destination for this item accounting for about 28%of India’s exports.

6.  Gems & Jewellery
•Gems and jewellery is one of the major contributors of export earnings for India, having a share of 13.3%
in India’s merchandise exports in 2014-15.
•Geographically, the exports of gems and jewellery are highly concentrated, with top 3 markets viz. UAE,
Hong Kong and USA together accounting for almost 80% of total exports.
Textiles and Readymade Garments
•Textiles and garments exports together account for 11.3% of India’s exports (2014-15). In-fact, India is
one of the leading exporting countries of textiles and garments in the world.
•The US remains the single largest export destination, contributing to 18.7% of India’s textiles exports
and 21.5% of India’s readymade garments exports.

7. Indian Imports
Imports to India jumped 26.1 % year on year to 40.68 billion In January of
2018. Purchases rose from :
• Petroleum crude and products (42.6 %)
• Electronic goods (12.2 %)
• Machinery electrical and non electrical goods (29.1 %)
• Pearls precious and semi precious stones (55.7 %)
• Coal coke and briquettes (31.7 %)
• In contrast Gold imports slumped 22.1 %

8. •Imports Cumulative value of imports during 2013-14 was US $ 450.07 billion as against US $490.74 billion
during the corresponding period of the previous year registering a negative growth of 8.29 per cent in $ terms.
•Oil imports were valued at US $ 167.62 billion during 2013- 14 which was 2.2 per cent higher than oil imports
valued at US $ 164.04 billion in the corresponding period of previous year.
•Non oil imports were valued at US $ 283.32 billion during 2013-14 which was 13.3 per cent lower than non-oil
imports of US $ 326.7 billion in previous year.
India’s Principal Imports (Percentage share in Total Imports in 2014-15)

9. •POL (petroleum) has always remained the most important item of import in India’s trade in the pre as well
as post reform period.
•It had a share of 27 percent in total imports in 1991-92, which currently stands at around 31 percent (2014-
15). With a sharp decline in global crude prices, India’s imports (in value terms) of POL have come down
significantly (growth declined by 16.7 percent in 2014-15 and by 41 percent during Apr-Feb 2015-16).
•This has helped India in narrowing the trade deficit and also kept current account deficit largely under
control.
• Gold is the second most important import item after crude oil. The data shows that significant drop was
observed in gold imports in 2013-14, when gold imports declined from US$ 56.3 billion and US$ 53.7 billion
in 2011-12 and 2012-13 respectively to US$ 27.5 billion in 2013-14, primarily due to fall in the international
gold prices and various policy measures taken by the government to curb gold imports.
The government had increased customs duty on gold to 10 percent and banned import of gold coins and
medallions to reduce its ballooning current account deficit.
However, a slight jump was again observed in gold imports in 2014-15 to USD 34.4 billion, due to relaxation
in curbs on gold imports provided by RBI. For the cumulative period Apr-Feb 2015-16, Gold imports have
moderated, registering growth of 4.7%

10. Trade Outlook
•WTO, in its latest release said that growth in the volume of world trade was likely to remain sluggish in 2016 at 2.8
percent, unchanged from levels recorded in 2015, which was the fourth consecutive year when growth in world
merchandise trade remained below 3 percent.
•For 2017, global trade is expected to grow at 3.6 percent, but it is below the yearly average of 5 percent since 1990.
•With such muted growth prospects, recovery in India’s exports becomes extremely challenging. The way forward is
to strive towards greater competitiveness, which in turn would require a strong policy push.

11. •Additionally, under the various Free Trade Agreements that are currently being negotiated, the
government should aim at achieving significant market access for Indian exporters.
•In the recent Board of Trade meeting held by the government, some of the thrust areas identified to push
exports include reviving SEZs and according priority sector status to export credit, promoting organic
produce, MSMEs, involving missions and embassies to promote trade and removing issues of EXIM bank
and Export Credit Guarantee Corporation (ECGC).

12. Counter Trade
Counter trade means exchanging goods or services which are paid for, in
whole or part, with other goods or services, rather than with money.
Variants of counter trade
•Barter : Exchange of goods or services directly for other goods or services without the use of money as
means of purchase or payment.
•Switch trading: Practice in which one company sells to another its obligation to make a purchase in a
given country.
•Counter purchase: Sale of goods and services to a country by a company that promises to make a
future purchase of a specific product from the country.
•Buyback: Occurs when a firm builds a plant in a country – or supplies technology, equipment, training,
or other services to the country and agrees to take a certain percentage of the plant's output as partial
payment for the contract.

13. Offset: Agreement that a company will offset a hard - currency purchase of an unspecified product from
that nation in the future.
Agreement by one nation to buy a product from another, subject to the purchase of some or all of the
components and raw materials from the buyer of the finished product, or the assembly of such product
in the buyer nation.
Advantages of Counter trade
• Gives additional hard currency
• Marketing expertise that they may not otherwise have.
• Technology advances that the country would not otherwise have.
• It gives access to markets for companies that may otherwise be closed to them.
• It helps conserve foreign currency reserves of the importing country.
• It allows access to foreign markets without necessarily setting up marketing
companies or programs.
• It allows the importing country to export products for which markets might
not otherwise exist.

14. Trends And Prospects
Several global trends are now becoming increasingly apparent which, if they continue
unabated, will likely shape the international offset landscape in the new millennium. This
trends suggest that:
• Aerospace weapons-related offsets will continue to account for the
bulk of offset practices.
• The drop in reported international military exports is counterbalanced by a rise in the value
of offset demands.
• The value of offset multipliers (incentive weighting factors) is shrinking while
nonperformance penalties are becoming more severe.
• Indirect offsets are increasing and outpacing direct offset
commitments.
• The accumulation of assumed offset obligation by U.S. and European defense suppliers are
compelling these firms to bid against each other and each other’s supply chains.

15. Examples
• Bhel looking at counter-trade deals to secure overseas orders India’s largest power
generation equipment manufacturer’s latest such deal in the works is a joint effort with
state-owned mineral trading company MMTC Ltd to import palm oil worth $1 billion
(Rs4,510 crore) from Malaysia, the second largest palm oil producing nation, in return for
setting up a hydropower project in that nation.
• The Government of the Philippines (GOP) will obtain the products and services of foreign
suppliers through countertrade and technology transfer and industrial investments
through offset agreements. The Philippine International Trading Corporation (PITC), an
attached agency of the Department of Trade and Industry, is responsible for
implementing the countertrade and offset program of the government.

16. PITC sources needed products, develops supplier bases and facilitates all trade
documentation, and negotiations and contracts for the GOP and its agencies. PITC also
is very influential in assisting foreign suppliers to develop acceptable industrial offset
and technology transfer programs.