Recent Trends in Foreign Trade and the composition of Imports and exports along with its composition over the last ten years.

1. Recent Trends in India’s
Foreign Trade
Presented By:
Indransh Gupta
Kunal Modi

2. What is Foreign Trade Policy?
• Union Commerce Ministry, GoI announces integrated FTP
every five year also called EXIM policy.
• policy updated every year with some modifications & new
schemes.
• FTP which was announced on August 28, 2009 is an integrated
policy for the period 2009-14.

3. Foreign Trade Policy 2009-14
Short Term Objectives:
• arrest and reverse the declining trend of exports.
• provide support to those sectors which have been hit badly by
recession.
Medium term Policy Objectives :
• achieve an Annual Export growth of 15% by March 2013.
• achieve Annual Export growth of around 25% by 2014.
Long Term Objective :
• doubling India’s share in Global Trade by 2020.

4. Targets
• Export Target : $ 350 Billion for 2012-13
• Export Growth Target: 15 % for next two year and
25 % thereafter.

5. Import/Export Controls
IMPORTS:
• Around 5% Tariff Lines are under Import Controls.
• 11600 Tariff Lines are free for import.
• Restrictions removed over the next 10 years, removing almost all the
Quantitative Restrictions.
• Presently:
 Prohibited items - 53 Lines
 Restricted items - 485 Lines
 State Trading Items - 33 Lines.

6. Import/Export Controls
EXPORTS:
• Controls primarily on account of security, public health, morals,
exhaustible resources and environment grounds.
 Prohibited items - 59
 Restricted items - 155
 State Trading Items - 12
• Restrictions fall under two Categories:-
 Special provision for these items under Weapons of Mass Destruction
Act, 2005.
 Export Facilitation Committee looks into applications for license for
these items.
{Special chemical ,organisms, materials, equip. & tech.}

7. Highlights
• Q1 of 2012-13, exports stood at US$ 75.2 bn and showed a
decline of 1.7 per cent as against an increase of 36.4 per cent
during Q1 of 2011-12.
• Q1 of 2012-13, imports declined by 6.1 percent over the
corresponding quarter of 2011-12 and stood at US$ 115.3
billion.
• Lower growth in POL imports at 5.5 percent during Q1 of
2012-13 as compared with 52.5 percent during Q1 of 2011-12.

8. Highlights
• Imports of gold and silver, US$ 9.4 bn during Q1 of 2012-13
were 48.4 per cent lower than that in Q1 of 2011-12.
• Non-oil non-gold imports during Q1 of 2012-13 at US$ 65.3
bn recorded a decline of 2.9 per cent as compared to an
increase of 18.9 per cent in Q1 of preceding year.
• Trade deficit during Q1 of 2012-13 stood lower at US$ 40.1
bn as compared with US$ 46.2 bn during Q1 of 2011-12.

9. India’s Foreign Trade
•growth is uncertain in coming months, given the worsening global
macroeconomic outlook and high interest rate in the domestic market.
•During April-Sept 2011, India's imports expanded by 32.4% to $ 233.5
billion. The trade deficit during the April-Sept’ 2011 period stood at $ 73.5
billion. Increasing Trade Deficit further depreciates Rupee.
•depreciation of rupee will also push up cost of imports leading to wider
trade deficit in coming times.

13. Export/Import Share of India as (%)
of GDP

14. Exports of Principal Commodities

15. Imports of Principal Commodities

16. India's Exports to Principal Regions

17. India's Imports from Principal Regions

18. India’s Foreign Trade

19. Last 10 Years India’s Export/Import
Performance

21. Composition Of India’s Foreign Trade
• Composition of Exports

22. Agricultural and Allied Products
• 15% share in exports
• Top items of agricultural exports include:
- Fish Products
- Rice
- Oil Cakes
- Fruits and Vegetables

23. Ores and Minerals
• 12.3% share in exports.
Manufactured Goods
• 61.3% share in exports.
- Include: Engineering Goods
Gems and Jewellery
Chemical and Allied Products
Readymade Garments

24. Minerals Fuels and Lubricants
• 18.3% share in exports
• There has been improvement in the exports of mineral
fuels and lubricant both in terms of value and in terms
of %.

25. Composition of Imports

26. • Petroleum Products
31.7% share in Imports.
• Capital Goods
20.3% share in Imports.
• Pearls and Precious Stones
6.2% share in Imports.
• Iron and Steel
2.4% share of Imports.
• Fertilizers
2.4% share of Imports.

27. Conclusion
Composition of India’s Foreign Trade has undergone a
positive change. It is a remarkable achievement that
India has transformed itself from a predominantly
primary goods exporting country into non primary
goods exporting country. Under Imports also India’s
dependence on food grains and capital goods has
declined.