A STUDY ON IMPACT OF LIBERALIZATION AND
GLOBALIZATION OF INDIAN INDUSTRY
N.BHUVANESH KUMAR 1
G.NANTHA KUMAR 2
1 Assistant Professor, PG Department of International Business, NGM College, Pollachi 2 Research Student, PG Department of International Business, NGM College, Pollachi
ABSTRACT
After independence, it has been the vision of Indian government to adopt some economic
reforms i.e. Liberalization, Privatization & Globalization. Our govt. adopted “liberalization &
globalization” both as important weapons to enhance industrialization and foreign trade. Now India
can export & import commodities freely. The growing integration of economies and societies around
the world has been one of the most hotly debated topics in international economics over the past few
years. This paper explores the contours of the on-going process of Liberalization and globalization.
Throughout this paper, there is an underlying focus on the impact of LPG on Indian economy. It also
comments on impact of LPG on Developing countries. But Globalization has also generated
significant international opposition over concerns that it has increased inequality and environmental
degradation. There is a need to study the impact of globalization on developing countries from the
viewpoint of inward foreign direct investment. India has made a tremendous progress in many spheres
such as industries, trade, agriculture & finance. Due to liberalization and globalization, government is
moving heaven & earth to solve adverse balance of payment.
Keywords: Libralisation, Globalisation, Foreign Direct Investment
INTRODUCTION
Globalization and liberalization has greatly influenced the Indian economy and made it a huge
consumer market. Today, most of the economic changes in the country are based on the demand
supply cycle and other economic factors. Today, India is the worlds 12th largest economy in terms of
market exchange rate and 4th largest in terms of the Purchasing Power Parity. According to a report
by the World Bank, the Indian market is expected to grow at around 8 per cent in the year 2010.
Globalization and liberalization has also made a positive impact on various important economic
segments. Today, the service sectors, industrial sectors and the agriculture sector have really grown to
a great extent. Around 54 per cent of the annual Gross Domestic Product (GDP) of India comes from
the service industry while the industrial and agriculture sector contributes around 29 per cent and 17
per cent respectively. With the improvement of the market, more and more new sectors are coming up
and reaping profits such as IT services, chemical, textiles, Oil industry and so on. With the increase in
the supply level, the rate of employment is also increasing considerably.
STATEMENTOF THE PROBLEM
Trade liberalisation measures are introduced to improve the export performance of the
country by reducing the barriers to trade. With the opening up of the trade sector it is expected that the
country can engage in more trade relations with other Countries in without much restrictions. The
ultimate objective of trade reform measure is to improve the competiveness and thereby better export
performance. Thus the trade liberalisation measures will improve the export performance by
improving the competitiveness , which will improve production, improve quality standards, better
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marketing strategy, etc. But the trade policy reform will affectthe different sectors of the economy in a
different manner, as there strategies may be different. There may be some sector specific factors
determining the impact of reforms when we take into consideration industry level and firm level
export performance.
SCOPE OF THE STUDY
The Present study examines the impact of trade liberalisation of India‟s exports. The study
covers for a period of ten financial years starting from 2010. Thus, the study is exclusively on the
impact of liberalisation and Globalization on the Indian Economy in the post-reform period. There is a
need to study the impact of globalization on developing countries from the viewpoint of inward
foreign direct investment. This paper explores the contours of the on-going process of globalization
Liberalization and privatization.
OBJECTIVES OF THE STUDY
Assessing the export of oil and non-oil products.
To study the export of India‟s foreign trade with developing Countries in.
To study the Exports of Principal Commodities.
To make fruitful suggestions for the growth and success of manufacturing industries in India
RESEARCH METHODOLOGY
The study is made for the purpose of an in depth analysis of various indicators and its effect
on import and export of India‟s foreign trade. The methodology selected for the study will be here.
The planned research design, methods of sample selection, data collection and analysis of results will
be explained.
DATA SOURCE
The study used only secondary data, which are collected from the various sources ministry of
commerce, RBI bullet in,etc….the collected data from this source have been complied and used with
due care. Other publications and magazines were also used to obtain relevant information‟s EXIM
times, the management accountant, journal of international marketing, international journal of market
research.
SAMPLE DESIGN
The study is made for the purpose of an in depth analysis of various indicators and its effect
on export of foreign trade with developing countries. The data for the study is selected based on the
availability in order to execute uniformity, the parameter export data year wise is collected from 2010
to 2014.
TOOLS AND TECHNIQUES
Trend Analysis
Growth Rate
PERIOD OF THE STUDY
The study covers a period of 10 years ranging from 2004 to 2014.
AREA OF THE STUDY
The Study area is Chosen by RBI Statistics handbook.
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LIMITATIONS OF THE STUDY
The study is limited only to impact of trade liberalisation of exports of manufacturing
industries in India. Period of the study limited to ten years only.
The data used in this study are secondary in nature as given in RBI Statistics handbook.
REVIEW OF LITERATURE
Dr. Raj Kumar Gautam (2012), “Liberalization Impact on Indian Small Industries: An
Empirical Study of Punjab”, The aim of the paper is to study the impact of liberalization on the
Indian Small-Scale Industry in the leading industrial state of Punjab. To ascertain the overall impact
of liberalization on the performance of selected small sector units manufacturing textiles, bicycle and
bicycle parts, food products and beverages and leather and leather products.Kruskal-Wallis test has
been applied to know the significant differences among the respondents relating to different
industries, age and turnover groups with respect to these statements. The test has been applied at
assumed p-value =0.05. The statements with less than 0.05 p-value are considered significant and
those with p-value more than the assumed value are considered to be insignificant.The findings of the
study indicate that small manufacturers are affected in the liberalized era and facing lot of problems to
run their businesses. It has been observed that units from all surveyed industries irrespective of age
and turnover believed that liberalization has resulted into more competition, increased quality
consciousness, difficulty in marketing, dumping of cheaper goods by other Countries in, reduction in
profit margin and high level of customer satisfaction.
Krishn A Goyal (2006) ,“Impact of Globalization on Developing Countries in With Special
Reference To India”India‟s imports in 2004-05 stood at US$ 107 billion recording an increase of
35.62 percent comparedwith US$ 79 billion in the previous fiscal. Export also increased by 24 percent
as compared to previousyear. It stood at US $ 79 billion in 2004-05 compared with US $ 63 billion in
the previous year. Oil imports zoomed by 19 percent with the import bill being US $ 29.08 billion
against USD 20.59 billion in the corresponding period last year. Non-oil imports during 2004-05 are
estimated at USD 77.036 billion, which is 33.62 percent higher than previous year's imports of US $
57.651 billion in 2003-04.The lesson of recent experience is that a country must carefully choose a
combination of policies that best enables it to take the opportunity - while avoiding the pitfalls. For
over a century the United States has been the largest economy in the world but major developments
have taken place in the world economy since then, leading to the shift of focus from the US and the
rich Countries in of Europe to the two Asian giants- India and China. Economics experts and various
studies conducted across the globe envisage India and China to rule the world in the 21st century.
India, which is now the fourth largest economy in terms of purchasing power parity, may overtake
Japan and become third major economic power within 10 years.
EXPORT PERFORMANCE LIBERALISATION AND GLOBALIZATION OF INDIA
It has been attempted to trace out the overall export performance of Liberalisation and
Globalization in India. The framework of analysis includes,
Trend analysis.
Growth analysis
LIST OF COUNTRIES USED IN THIS STUDY
India's Foreign Trade with OECD Countries
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India's Foreign Trade with OPEC Countries
India's Foreign Trade with Eastern Europe Countries
India's Foreign Trade with Developing Asia Countries
India's Foreign Trade with Developing Saarc Countries
India's Foreign Trade with Developing Asian Developing Countries
India's Foreign Trade with Developing Africa Countries
India's Foreign Trade with Developing Latin American Countries
Indian Oil Export
Indian Non- Oil
Exports of Principal Commodities
Primary Products
Exports of Principal Commodities Manufactured Goods
Exports of Principal Commodities Petroleum Products
Exports of Principal Commodities
Agriculture and Allied Products
Exports of Principal Commodities Engineering Goods
ANALYSIS AND INTERPRETATIONS
TABLE NO: 1
INDIA'S FOREIGN TRADE WITH OECD COUNTRIES
(` in billion) (` in billion)
Year Exports (`) Growth (`) Year Trend (`) Growth(`)
2010 3,043.09 - 2015 7,672.244 11.95241
2011 3,797.67 24.79651 2016 8,116.65 5.792386
2012 4,959.69 30.59824 2017 9,380.17 15.56701
2013 5,589.61 12.70079 2018 10,175.7528 8.481539
2014 6,853.13 22.6048 2019 10,643.69 4.598551
Source: RBI handbook Source: Computed
INTERPRETATION
From the above table it is inferred that in the year of 2010 India‟s foreign trade with OECD
Countries in Export was Rs. 3,043.09 million and it decreased to Rs. 6,853.13 million in the year of
2014. To find the trend of India‟s foreign trade with OECD Countries in Export. Trend analysis has
been applied from 2015 to 2019. Through Trend analysis it is found that India‟s foreign trade with
OECD Countries in Export has a increasing trend.
TABLE NO: 2
INDIA'S FOREIGN TRADE WITH OPEC COUNTRIES
(` in billion) (` in billion)
Year Exports (`) Growth (`) Year Trend (`) Growth(`)
2010 1,786.18 - 2015 4,242.188 15.71897
2011 2,437.69 36.47505 2016 4,158.19 -1.98006
2012 2,782.91 19.32728 2017 4,590.593 10.39883
2013 3,422.19 22.97164 2018 5,022.996 9.419328
2014 3,665.94 7.122632 2019 5,455.399 8.608468
Source: RBI handbook Source: Computed
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INTERPRETATION
From the above table it is inferred that in the year of 2010 India‟s foreign trade with OPEC
Countries in Export was Rs.1,786.18 million which is increased to Rs.3,665.94 million in the year of
2014. To find the trend of India‟s foreign trade with OPEC Countries in Export .Trend analysis has
been applied from 2015 to 2019. Through Trend analysis it is found that India‟s foreign trade with
OPEC Countries in Export has a increasing trend.
TABLE NO: 3
INDIA'S FOREIGN TRADE WITH EASTERN EUROPE COUNTRIES
(` in billion) (` in billion)
Year Exports (`) Growth (`) Year Trend (`) Growth(`)
2010 85.08 - 2015 269.774 20.37034
2011 128.19 50.66996 2016 235.77 -12.6046
2012 155.47 21.28091 2017 247.42 4.941256
2013 212.47 36.66302 2018 262.3758 6.044701
2014 224.12 5.483127 2019 259.07 -1.25995
Source: RBI handbook Source: Computed
INTERPRETATION
From the above table it is inferred that in the year of 2010 India's foreign trade with Eastern
Europe Countries in Export was Rs.85.08 million which is increased to Rs.2,24.12 million in the year
of 2014. To find the trend of India's foreign trade with Eastern Europe Countries in Export Trend
analysis has been applied from 2015 to 2019. Through Trend analysis it is found that India's foreign
trade with Eastern Europe Countries in Export has a decreasing trend.
TABLE NO: 4
INDIA'S FOREIGN TRADE WITH DEVELOPING ASIA COUNTRIES
(` in billion) (` in billion)
Year Exports (`) Growth (`) Year Trend (`) Growth(`)
2010 2526 - 2015 6,267.299 14.34298
2011 3,192.54 26.38717 2016 6,278.57 0.179838
2012 4,350.93 36.28428 2017 7076 12.70082
2013 4,683.71 7.64848 2018 7,631.9468 7.856795
2014 5,481.14 17.02561 2019 7,873.43 3.16411
Source: RBI handbook Source: Computed
INTERPRETATION
From the above table it is inferred that in the year of 2010 India‟s foreign trade with Asia
Export was Rs.2,526 million which is increased to Rs.5,481.14 million in the year of 2014. To find
the trend of India‟s foreign trade with Asia Export Trend analysis has been applied from 2015 to
2019. Through Trend analysis it is found that India‟s foreign trade with Asia Export has a increasing
trend.
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TABLE NO: 5
INDIA'S FOREIGN TRADE WITH DEVELOPING SAARC COUNTRIES
(` in billion) (` in billion)
Year Exports (`) Growth (`) Year Trend (`) Growth(`)
2010 396.46 - 2015 1,169.793 11.11256
2011 530.19 33.73102 2016 1,283.48 9.718557
2012 640.48 20.80198 2017 1,514.16 17.97301
2013 822.12 28.35998 2018 1,652.8986 9.162744
2014 1,052.8 28.05916 2019 1,744.84 5.562434
Source: RBI handbook Source: Computed
INTERPRETATION
From the above table it is inferred that in the year of 2010 India‟s foreign trade with Saarc
Export was Rs.3,96.46 million which is increased to Rs.1,052.8 million in the year of 2014. To find
the trend of India‟s foreign trade with Saarc Export Trend analysis has been applied from 2015 to
2019. Through Trend analysis it is found that India‟s foreign trade with Saarc Export has a increasing
trend.
TABLE NO: 6
INDIA'S FOREIGN TRADE WITH DEVELOPING ASIAN DEVELOPING COUNTRIES
(` in billion) (` in billion)
Year Exports (`) Growth (`) Year Trend (`) Growth(`)
2010 2,129.54 - 2015 5,097.511 15.1111
2011 2,662.35 25.01996 2016 4,995.08 -2.00943
2012 3,710.45 39.36748 2017 5,561.82 11.34596
2013 3,861.6 4.07363 2018 5,979.0242 7.501217
2014 4,428.34 14.6763 2019 6,128.56 2.501007
Source: RBI handbook Source: Computed
INTERPRETATION
From the above table it is inferred that in the year of 2010 India‟s foreign trade with Asian
Developing Countries in Export was Rs. 2,129.54 million which is increased to Rs. 4,428.34 million
in the year of 2014. To find the trend of India‟s foreign trade with Asian Developing Countries in
Export Trend analysis has been applied from 2015 to 2019. Through Trend analysis it is found that
India‟s foreign trade with Asian Developing Countries in Export has a increasing trend.
TABLE NO: 7
INDIA'S FOREIGN TRADE WITH DEVELOPING AFRICA COUNTRIES
(` in billion) (` in billion)
Year Exports (`) Growth (`) Year Trend (`) Growth(`)
2010 494.23 - 2015 1,864.959 17.03025
2011 723.55 46.39945 2016 1,859.84 -0.27448
2012 982.5 35.78882 2017 2,126.11 14.31682
2013 1,327.3 35.09415 2018 2,313.5228 8.814821
2014 1,593.57 20.06103 2019 2,392.38 3.408534
Source: RBI handbook Source: Computed
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INTERPRETATION
From the above table it is inferred that in the year of 2010 India‟s foreign trade with Africa
Export was Rs.4, 94.23 million which is increased to Rs.1, 593.57 million in the year of 2014. To find
the trend of India‟s foreign trade with Africa Export Trend analysis has been applied from 2015 to
2019. Through Trend analysis it is found that India‟s foreign trade with Africa Export has a increasing
trend.
TABLE NO: 8
INDIA'S FOREIGN TRADE WITH DEVELOPING LATIN AMERICAN COUNTRIES
(` in billion) (` in billion)
Year Exports (`) Growth (`) Year Trend (`) Growth(`)
2010 305.54 - 2015 973.761 26.64339
2011 459.73 50.46475 2016 741.26 -23.8766
2012 642.8 39.8212 2017 713.62 -3.72879
2013 796.54 23.91724 2018 740.7722 3.804854
2014 768.9 -3.47001 2019 685.98 -7.39663
Source: RBI handbook Source: Computed
INTERPRETATION
From the above table it is inferred that in the year of 2010 India‟s foreign trade with Latin
American Countries in Export was Rs. 3,05.54 million which is increased to Rs. 7,68.9 million in the
year of 2014. To find the trend of India‟s foreign trade with Latin American Countries in Export
Trend analysis has been applied from 2015 to 2019. Through Trend analysis it is found that India‟s
foreign trade with Latin American Countries in has a decreasing trend.
TABLE NO: 9
INDIAN OIL EXPORT
(`in billion)
Year Exports(`) Growth(`)
2004 163.97 -
2005 314.04 91.52284
2006 515.33 64.09693
2007 845.2 64.01141
2008 1,141.92 35.10648
2009 1,233.98 8.061861
2010 1,328.99 7.699476
2011 1,887.79 42.04697
2012 2,679.15 41.91992
2013 3,307.9 23.46826
2014 3,802.5 14.95208
Source: RBI handbook
INTERPRETATION
From the above table it is inferred that in the year of 2004 Indian Oil Export was Rs.1,63.97
million which is increased to Rs.3,802.5 million in the year of 2014. Through Trend analysis it is
found that Indian Oil Export has a increasing trend.
Year Trend(`) Growth(`)
2015 3,689.08 -2.98285
2016 4,386.53 18.90598
2017 4,948.21 12.80453
2018 5,509.88 11.35108
2019 5,843.01 6.045972
(` in billion)
Source: Computed
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TABLE NO: 10
INDIAN NON- OIL EXPORT
(` in billion)
Year Exports(`) Growth(`)
2004 2,769.69 -
2005 3,439.35 24.17816
2006 4,048.85 17.72137
2007 4,872.59 20.34504
2008 516.72 -89.3954
2009 7,173.57 1288.29
2010 7,126.35 -0.65825
2011 9,541.43 33.88944
2012 11,980.45 25.56242
2013 13,035.29 8.804678
2014 15,139.32 16.14103
Source: RBI handbook
INTERPRETATION
From the above table it is inferred that in the year of 2004 Indian Non-Oil Export was Rs.
2,769.69 million which is increased to Rs. 15,139.32 million in the year of 2014. Through Trend
analysis it is found that Indian Non-Oil Export has a increasing trend.
TABLE NO: 11
EXPORTS OF PRINCIPAL COMMODITIES PRIMARY PRODUCTS
(` in billion)
INTERPRETATION
From the above table it is inferred that in the year of 2004 Exports of Principal Commodities
Primary Product was Rs. 4,55 million which is increased to Rs. 2,914.56 million in the year of 2014.
Through Trend analysis it is found that Exports of Principal Commodities Primary Product has a
increasing trend.
Year Trend(`) Growth(`)
2015 14,875.275 -1.7441
2016 17,243.35 15.91954
2017 19,347.38 12.20198
2018 20,908.632 8.06958
2019 21,451.41 2.59595
Year Exports(`) Growth(`)
2004 455 -
2005 608.97 33.83956
2006 725.08 19.06662
2007 890.78 22.85265
2008 1,109.26 24.52682
2009 1,165.26 5.048411
2010 1,252.34 7.47301
2011 1,496.47 19.49391
2012 2,200.79 47.06543
2013 2,533.39 15.11275
2014 2,914.56 15.04585
Year Trend(`) Growth(`)
2015 2,801.65 -3.87402
2016 3,295.73 17.63535
2017 3,676.9 11.56557
2018 3,864.12 5.091824
2019 4,058.07 5.01922
(` in billion)
Source: Computed
(` in billion)
Source: Computed
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TABLE NO: 12
EXPORTS OF PRINCIPAL COMMODITIES MANUFACTURED GOODS
(` in billion)
Year Exports(`) Growth(`)
2004 2,228.29 -
2005 2,728.72 22.45803
2006 3,212.61 17.73322
2007 3,842.61 19.61022
2008 4,145.99 7.895155
2009 5,664.02 36.61442
2010 5,464.56 -3.52153
2011 7,198.63 31.73302
2012 8,885.99 23.44002
2013 9,954.41 12.02365
2014 11,623.83 16.77066
Source: RBI handbook
INTERPRETATION
From the above table it is inferred that in the year of 2004 Exports of Principal Commodities
Manufactured Goods was Rs. 2,228.29 million which is increased to Rs. 11,623.83 million in the year
of 2014. Through Trend analysis it is found that Exports of Principal Commodities Manufactured
Goods has a increasing trend
TABLE NO: 13
EXPORTS OF PRINCIPAL COMMODITIES PETROLEUM PRODUCTS
(`in billion)
Source: RBI handbook
INTERPRETATION
From the above table it is inferred that in the year of 2004 Exports of Principal Commodities
Petroleum Products was Rs. 1,63.97 million which is increased to Rs. 3,802.5 million in the year of
2014. Through Trend analysis it is found that Exports of Principal Commodities Petroleum Products
has a increasing trend.
Year Trend(`) Growth(`)
2015 11409.85 -1.84085
2016 13293.25 16.50676
2017 14962.67 12.5584
2018 15558.77 3.983938
2019 16632.09 6.898464
Year Trend(`) Growth(`)
2015 3,689.08 -2.98285
2016 4,386.53 18.90598
2017 4,948.21 12.80453
2018 5,509.88 11.35108
2019 5,843.01 6.045972
Year Exports(`) Growth(`)
2004 163.97 -
2005 314.04 91.52284
2006 515.33 64.09693
2007 845.2 64.01141
2008 1,141.92 35.10648
2009 1,233.98 8.061861
2010 1,328.99 7.699476
2011 1,887.79 42.04697
2012 2,679.15 41.91992
2013 3,307.9 23.46826
2014 3,802.5 14.95208
(` in billion)
Source: Computed
(` in billion)
Source: Computed
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TABLE NO: 14 -
EXPORTS OF PRINCIPAL COMMODITIES AGRICULTURE AND ALLIED PRODUCTS
(` in billion)
INTERPRETATION
From the above table it is inferred that in the year of 2004 Exports of Principal Commodities
Agriculture and Allied Products was Rs. 3,46.16 million which is increased to Rs. 2,575.59 million in
the year of 2014. To find the trend of Exports of Principal Commodities Agriculture and Allied
Products Trend analysis has been applied from 2015 to 2019. Through Trend analysis it is found that
Exports of Principal Commodities Agriculture and Allied Products has a increasing trend.
TABLE NO: 15
EXPORTS OF PRINCIPAL COMMODITIES ENGINEERING GOODS
(` in billion)
INTERPRETATION
From the above table it is inferred that in the year of 2004 Exports of Principal Commodities
Engineering Goods was Rs. 5,70.05 million which is increased to Rs. 4,207.27 million in the year of
2014. To find the trend of Exports of Principal Commodities Engineering Goods Trend analysis has
been applied from 2015 to 2019. Through Trend analysis it is found that Exports of Principal
Commodities Engineering Goods has a increasing trend.
Year Exports(`) Growth(`)
2004 346.16 -
2005 380.78 10.00116
2006 452.2 18.75624
2007 573.92 26.91729
2008 742.09 29.30199
2009 806.49 8.678193
2010 841.36 4.323674
2011 1,102.96 31.09252
2012 1,795.83 62.81914
2013 2,227.42 24.0329
2014 2,575.59 15.63109
Year Trend(`) Growth(`)
2015 2,370.72 -7.95412
2016 2,979.37 25.67353
2017 3,369.25 13.08597
2018 3,759.13 11.5717
2019 3,964.51 5.463342
Year Trend(`) Growth(`)
2015 4,206.00 -0.03029
2016 4,628.21 10.03839
2017 5,106.485 10.33391
2018 5,584.76 9.366032
2019 5,951.49 6.566591
Year Exports(`) Growth(`)
2004 570.05 -
2005 779.49 36.74064
2006 961.57 23.35886
2007 1,337.9 39.13704
2008 1,504.35 12.44114
2009 2,174.82 44.56875
2010 1,815.72 -16.5117
2011 2,648.91 45.88758
2012 3,250.72 22.71916
2013 3,556.99 9.421605
2014 4,207.27 18.28175
(` in billion)
Source: Computed
Source: Computed
(` in billion)
Source: RBI handbook
Source: RBI handbook
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FINDINGS
Export wise
In the year of 2012 the export of India‟s foreign trade with OECD Countries highest growth
rate for (30.59824). Through Trend analysis it is found that India‟s foreign trade with OECD
Countries in Export has a increasing trend.
In the year of 2011 the export of India‟s foreign trade with OPEC Countries highest growth
rate for (36.47505). Through Trend analysis it is found that India‟s foreign trade with OPEC
Countries in Export has a increasing trend.
In the year of 2012 the export of India‟s foreign trade with Asia highest growth rate for
(36.28428). Through Trend analysis it is found that India‟s foreign trade with Asia Export has
a increasing trend.
In the year of 2011 the export of India‟s foreign trade with Saarc highest growth rate for
(33.73102). Through Trend analysis it is found that India‟s foreign trade with Saarc Export
has a increasing trend.
In the year of 2012 the export of India‟s foreign trade with Asian Developing Countries
highest growth rate for (39.36748). Through Trend analysis it is found that India‟s foreign
trade with Asian Developing Countries in Export has a increasing trend.
In the year of 2011 the export of India‟s foreign trade with Africa highest growth rate for
(46.39945). Through Trend analysis it is found that India‟s foreign trade with Africa Export
has a increasing trend.
In the year of 2011 the export of India‟s foreign trade with Latin American Countries growth
rate for (50.46475). Through Trend analysis it is found that India‟s foreign trade with Latin
American Countries in has a decreasing trend.
In the year of 2005 the export of Indian Oil highest growth rate for (91.52284). Through
Trend analysis it is found that Indian Oil Export has a increasing trend.
In the year of 2009 the export of Indian Non-Oil highest growth rate for (1288.29). Through
Trend analysis it is found that Indian Non-Oil Export has a increasing trend.
In the year of 2005 the Exports of Principal Commodities Primary Product highest growth
rate for (33.83956). Through Trend analysis it is found that Exports of Principal Commodities
Primary Product has a increasing trend.
In the year of 2009 the export of India‟s foreign trade with OECD Countries highest growth
rate for (36.61442). Through Trend analysis it is found that Exports of Principal Commodities
Manufactured Goods has a increasing trend.
In the year of 2004 the Exports of Principal Commodities Petroleum Products highest growth
rate for (91.52284). Through Trend analysis it is found that Exports of Principal Commodities
Petroleum Products has a increasing trend.
In the year of 2012 the Exports of Principal Commodities Agriculture and Allied Products
highest growth rate for (62.81914). Through Trend analysis it is found that Exports of
Principal Commodities Agriculture and Allied Products has a increasing trend.
In the year of 2011 the export of India‟s foreign trade with OECD Countries highest growth
rate for (45.88758). Through Trend analysis it is found that Exports of Principal Commodities
Engineering Goods has a increasing trend.
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SUGGESTIONS
To face the challenges from the unfavorable policies and to get benefits from the favorable
policies, the Government should start more cluster units, mini industrial parks, industrial
societies and special economic zones for micro and small industries products, give more
assistance to exporters and industrialists to get national and international quality mark
certification, build geographical and common brand name, coordinate all small industrial
promotional agencies, strengthen export promotion councils and commodity boards, start
more design and fashion technology institutes etc.
The Impact of globalization on the Indian economy are wide and could be seen from several
angles such as internal and external trade, production, consumption and distribution, overall
and sector wise performance, social, economical, political and cultural impacts, and macro
and micro level impacts.
It may be concluded that the response of the Indian industry to the changes in the economic
policy has been reasonably good.
Further, in order to reach greater heights, greater autonomy especially for public enterprises is
necessary for industry to operate in the new economy.
Relaxation of bureaucratic controls is necessary for unshackling industry, attainment of self-
sustained growth with social justice.
The real solution to the challenges faced by the industry is the shift in the basic character of
the industry from less competition to more competition, less quality to the fair quality,
primitiveness to modernity and above all from low ethics to good governance.
CONCLUSION
To sum up, we can say that liberalization and globalization are to be viewed specially in the
perspective of National requirements and progress. Unqualified and unlimited liberalization and
globalization will lead to an utter economics. But unfortunately in many of the countries, this is what
is happening. Therefore, liberalization, though of the hour, is not to be taken for granted to any extent
in a country, much less in India where at least two thirds of the population of the country still depend
for its livelihood on agriculture, let us not forget that both the concepts of liberalization and
globalization have started from the West to serve their own interests. We, Indians, on our part, will
adopt both these concepts to the extent to which they are beneficial to our economy.
REFERENCE
Goyal K A. & P.K.Khicha, “Globalization of Business: Future Challenges”, Third concept,
An International Journal of Ideas.
Ojha. A.K. , Globalization & Liberalization – prospects of new world order, Third concept-
An International Journal of Ideas, August-2002.
Government of India, Planning Commission, 1992. Eighth Five Year Plan, 1992-97 New
Delhi. And Tenth Five Year plan 2002-07
Jalan, Bimal 1996. India‟s Economic Policy: Preparing for the Twenty-First Century. Penguin
Books, New Delhi.
Child, john and David K. Tse, China‟s Transition and its Implications for International
Business”, Journal of International Business studies, Volume 32 Number 2001.
INTERCONTINENTAL JOURNAL OF FINANCE RESEARCH REVIEWISSN:2321-0354 - ONLINE ISSN:2347-1654 - PRINT - IMPACT FACTOR:0.720VOLUME 3, ISSUE 2, FEBRUARY 2015
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