india’s international trade_draft 1

8/3/2019 Indias International Trade_draft 1

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Indias International Trade


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Cont..

In the 1990s, exports of goods and services rose from 6.2percent to 8.2 percent of total output.

By the end of the decade, however, growth in exportsbegan to level off due to reduced international demand,

especially with India's main economic partners, theUnited States and the European Union (EU).

Indian exports were further hit by serious competitionfrom east Asian countries, which had recentlyexperienced depreciated domestic currencies, which led

to a decline in global prices for their manufacturedgoods. As a result, exports of Indian textiles, chemicals,machinery, electronic goods, and automotive parts allbegan to decline.


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Foreign Trade Policy 2004-09

Launched on August 31, 2004.

It broke the running EXIM Policy 2002-2007 in year

2004 due to the change of Government.

The policy came into force on September 1, 2004 andremained effective till March 31, 2009.


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Foreign Trade Policy 2004-09

OBJECTIVES:

To double our percentage share of global merchandize trade within 5 years.

Use trade expansion as an effective instrument of economic growth and

employment generation.

Thrust Sectors

# Agricultural# Handicrafts

# Handlooms# Gems and Jewellery# Leather# Textile


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Technological Expectancies

Digital automation target

#All Export transactions would be

through EDI mode by 31st October,2005;

# Digital Signature and EFT facility

operational


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Foreign Trade Policy 2009-2014;

Objectives

To arrest and reverse declining trend of exports is themain aim of policy, aim to be reviewed after 2 years

To double export of goods and services from India by2014

To double Indias share in global merchandise trade

Simplification of the application procedure for availingvarious benefits


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Objectives

To set in motion the strategies and policy

measures which catalyze growth of exports

To encourage exports through a mix of

measures


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Indias Merchandise Trade Turnover increased from US$312 bn in FY07 to US $620 bn in FY11(increase of

98.71%)

26,414.05 163,132.18 185,295.36 178,751.43251,135.89

185,735.24

251,654.00303,696.31 288,372.88

369,769.13312,149.29

414,786.18

488,991.67

467,124.31

620,905.02

0.00

200,000.00

400,000.00

600,000.00

800,000.00

1,000,000.00

1,200,000.00

1,400,000.00

Apr-Mar 2007 Apr-Mar 2008 Apr-Mar 2009 Apr-Mar 2010 Apr-Mar 2011

India's Total Trade from 2007-2011 (In US dollars)

Export Import Total


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Indias Export increased from US $126 bn in FY07 to US$251 bn in FY11(increase of 99.20%)

126,414.05 163,132.18185,295.36 178,751.43 251,135.89

185,735.24

251,654.00303,696.31 288,372.88

369,769.13312,149.29

414,786.18

488,991.67467,124.31

620,905.02

0.00

200,000.00

400,000.00

600,000.00

800,000.00

1,000,000.00

1,200,000.00

1,400,000.00



Export Import Total


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Indias Import increased from US $ 185 bn in FY07

to US $369 bn in FY11(increase of 99.46%)

126,414.05 163,132.18185,295.36 178,751.43

251,135.89

185,735.24

251,654.00

303,696.31 288,372.88

369,769.13312,149.29

414,786.18

488,991.67 467,124.31

620,905.02

0.00

200,000.00

400,000.00

600,000.00

800,000.00

1,000,000.00

1,200,000.00

1,400,000.00



Export Import Total


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Indias Exports Region Wise for FY 2011

In US $ Millions

50,697.40

16,281.18

37,148.79

141,022.73

2,863.633,122.15

1) Europe

2) Africa

3) America

4) Asia & ASEAN

5) CIS & Baltics

6) Unspecified Region


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Indias Exports Commodity Wise

In Dollars In Rupees


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Indias Imports Commodity Wise



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Changes in gems and jewellery Sector

Plan of establishing Diamond Bourses aroundthe country

Import of cut and polished diamonds forcertification and grading has been introduced onconsignment basis

Personal carriage limit increased For exhibitions US$ 5 million

For samples US$ 1 million


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C

hanges in Agriculture Sector To reduce transaction and handling costs, a

single window system to facilitate export of

perishable agricultural produce has been

introduced. The system involves creation of

multi-functional nodal agencies to be

accredited by Agricultural and Processed

Food Products, Export DevelopmentAuthority.


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Changes in Leather Sector

Leather sector shall be allowed re-export

of unsold imported raw hides and skins and

semi finished leather from public bonded

ware houses, subject to payment of 50% of

the applicable export duty.

Enhancement of FPS rate to 2%, would also

significantly benefit the leather sector


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Changes for Export of Tea

Minimum value addition under advanceauthorization scheme for export of tea hasbeen reduced from the existing 100% to 50%.

DTA sale limit of instant tea by Export OrientedUnit (EOU) units has been increased from theexisting 30% to 50%.

Export of tea has been covered under VKGUYScheme benefits.


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Changes in Pharmaceutical Sector

Export Obligation Period for advanceauthorizations issued with 6-APA as inputhas been increased from the existing 6

months to 36 months, as is available forother products.

Pharmaceutical sector extensively coveredunder MLFPS for countries in Africa andLatin America; some countries in Oceaniaand Far East.


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Changes in Handloom Sector

To simplify claims under FPS, requirement

of Handloom Mark for availing benefits

under FPS has been removed.


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Changes for Export Oriented Units

EOUs can sell 90% of their production in

Domestic Tariff Area

EOUs will now be allowed to procure

finished goods for consolidation along with

their manufactured goods, subject to

certain safeguards


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Indias major Export partners 2007-2011

0.00

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

30,000.00

35,000.00

40,000.00


U S A

U ARAB EMTS

CHINA P RP

SINGAPORE

U K

HONG KONG


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Indias major Import partners 2007-2011

0.00

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

30,000.00

35,000.00

40,000.00

45,000.00

50,000.00


CHINA P RPU S A

SAUDI ARAB

U ARAB EMTS

IRAN

SWITZERLAND


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Indias Major Export Partners

In Dollars

In Rupees


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Indias Major Import Partners



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Conclusion

Conversion of Imports and Exports

(Control) Act, 1947 to Foreign Trade

Development and Regulation Act, 1992 was

a remarkable change

Foreign Trade Policy 2004-2009 had a good

impact on Indias trade

Focus Market Scheme in Foreign Trade

Policy 2009-2014 was an important factor.

india’s international trade_draft 1

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