India's position in terms of export and import, different trade policy,challenges in trade.

1. FOREIGN TRADE
INDIAN PERSPECTIVE

2. HISTORY OF FOREIGN TRADE
• Pre- independence era
• The period 1900/ 1914 saw expansion in India’s foreign trade. The rise in the
output of such crops as oilseeds, cotton, jute and tea was largely due to a
flourishing export trade. The First World War was a serious setback to India’s
foreign trade.
• India’s foreign trade was severely hit by the great depression of 1930s due to
decline in consumer’s purchasing power and discriminatory trade policies.
• During the Second World War, India achieved huge export surplus.
• License raj period
Import & export neglected by govt., GDP decreased, restriction on new lisence
• Post liberalization Era
• New licensing rule, modified export import policy.GDP increased from 8.8% in1990
to 12.5% in 1997

3. TRADE POLICY 2015/ 20 TO PUSH UP EXPORT
• FTP aims to increase India's export to % 900 billion by 2020.
• Union budget 2015/ 16 and new FTP focuses on manufacturing and
service exports and and improves the Ease Of Doing Business.
• Forthcoming e/ Governance Initiatives with different policies like fiscal
incentive, enhance market access, process rationalization.
• E/ commerce export
• Currency devaluation
• Strengthening of Make in India,Digital India campaigns.
Import substitution based strategy.

4. CONTRACTIONARY MONETARY POLICY
Increase Interest Rate
Encourage foreign investors to invest in India
Strengthen the international value of Indian rupees
Increase import
Decrease export
Trade balance moves toward deficit
Employment may decrease , Inflation may decrease

5. EXPANSIONARY MONETARY POLICY
Decrease Interest rate
Discourage foreign financial investment in India
Weaken the international value of rupees
Decrease import
Increase export
Trade balance moves toward surplus
Employment may increase , inflation may increase

6. Recent Measures Of Trade Facilitation
• Govt. has reduced the number of madatory ducuments
• Customs single window initiatives
• 24*7 customs clearance
• Move towards paperless and digitalization
• Training/certification programme for exporters

7. WTO negotiation and India
• Elimination of export subsidies on agritultural exports has commited by
devloped countries within 2018.
• Flexibility on marketing, transport and fisheries subsidies.
• 53 WTO countries aggreed on eliminating tarrifs on 200 IT products,duty-free
foreign market access for all the members.
• So far, India has signed 10 FTAs and 6 preferential trade aggrement with a
mixed bag outcome.

8. TPP and it's implication for India
• Huge export gain(appx. 500bn/yr) by joining expanded TPP enable a free trade zone
• Openness to market with lower barrier than OECD countries
• Import Competition
• Overall devlopement by enhence innovation,productivity and standerd of living.

9. EXPORT PERFORMANCE OF INDIA
• India exports approximately 7500 commodities to about 190 countries,
and imports around 6000 commodities from 140 countries. India
exported US% 318.2 billion and imported % 462.9 billion worth of
commodities in 2014.

10. EXPORT COMPOSITION AND SECTORAL
PERFORMANCE

11. 1990- 91 2000- 01 2013- 14 CAGR (2000-
2012)
Growth
rate(2013-
14)
Primary
Products
23.8 16.0 15.6 16.9 4.7
a.Agri &
allied products
18 14 13.8 17 5.1
b. Ores and
minerals
5.8 2 1.8 16.5 1.4
Manufactured
goods
71 78.8 63.7 15.1 4.6
Petroleum,
crude products
2.9 4.2 20..1 33.5 3.0
Total 100 100 100 17.2 4.1

12. DIRECTION OF EXPORT
• Diversified market with all OPEC countries
• Shift towards developing countries of Asian and African market from
the developed market due to Free/ trade agreement with South Asian
countries.

13. INDIA'S IMPORT GROWTH

14. BALANCE OF TRADE
• India has been recording
sustained trade deficits
since 1980 mainly due to
the high growth of imports,
particularly of crude oil,
gold and silver.
• Is trade deficit bad??

15. CHALLENGES
• Import and export restrictions
• Study of foreign markets
• Risk in transit
• Lack of information about foreign businessmen
• Secondary market and stock exchange

16. CONCLUSION
India is now significantly more integrated with the global economy than
15 years ago. Foreign trade today plays an important part in the Indian
economy. ‘Make in India’, ‘Digital India’ and ‘Skills India’ will provide a
framework for increasing exports of goods and services as well as
generation of employment and increase value addition in the country.
The FTP for 2015/ 2020 is encouraging the export of labor intensive
products, Agricultural products, high tech products with high export
earning potential and eco/ friendly and green products and work on
focused market diversification.