Saravanan India’s Foreign Trade

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INDIAS FOREIGN TRADE

Meaning

Trade between two or more nations is called foreigntrade or international trade. This involves the exchangeof goods and services between the citizens of two

nations. when the citizens of one nation exchangegoods and services with the citizens of another nation,it is called foreign trade; for example, India's trade withUSA, Japan, France and Pakistan.

Foreign trade transactions are classified under threecategories:

Import Trade

Export Trade


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Indias Foreign Trade: February, 2009

A. EXPORTS (including re-exports)

Exports during February, 2008-09 were valued at US $11913 million which was 21.7 % lower than the level ofUS $ 15221 million during February, 2008.

In rupee terms, exports touched Rs. 58685 crores,which was 3% lower than the value of exports duringFebruary, 2007-08.

Cumulative value of exports for the period April-

February, 2008-09 was US$ 156597 million (Rs.705231crore) as against US$ 145878 million (Rs. 586233)registering a growth of 7.3% in Dollar terms & 20.3% inRupee terms over the same period last year.


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WHEN INTERNATIONAL TRADE?

when businesses cross borders: (subsidiaries)

production and operations, and marketing is

done internationally,

human resources belong to more than one

country

international investment is involved,


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DRIVERS

Worldwide trend of the economies of the world

becoming borderless and interlinked.

National economies merging into an

interdependent global economic system.

Declining trade and investment barriers

Perceived distances are shrinking due to

advances in transportation and

telecommunications.


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Source : http://www.indianstat.com/foreigntrade


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Continued..B. IMPORTS

Imports during February, 2008-09 were valued atUS $ 16823 million representing a decrease of23.3% over the level of imports valued at US $

21934 million in February, 2007-08. In Rupee terms, imports decreased by 4.9%.

Cumulative value of imports for the period April-February, 2008-09 was US$ 271687 million (Rs.1223213 crores) as against US$ 228081 million (Rs.917179 crores) registering a growth of 19.1% inDollar terms and 33.4% in Rupee terms over the

same period last year.


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Continued

D. TRADE BALANCE

The trade deficit for April- February, 2008-09 wasestimated at US $ 115090 million which was higher than the

deficit at US $ 82203 million during April- February, 2007-08.


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Source : http://exim.indiamart.com/foreign-trade-policy


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Interim EXIM Policy 2009 - 10 Highlights.

Trade facilitation measures (Supplement to Foreign

Trade Policy 04-09) announced on 26th February, 2009.

FTP Benefits Without BRC

Additional Benefits Under Promotional Schemes

Gems & Jewellery Sector

Advance Authorization

DEPB Scheme

EPCG Scheme

Premier Trading Houses

Towns Of Export Excellence

Other Facilitation Measures


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Indias Exports & ImportsIndia export & Import data is based on shipping bills

filed at Indian customs at the time of exportclearance. This data includes:

Date of shipment,

Item Description,

Quantity,

Units,

FOB value,

Foreign port and buyer name & country,

Indian port & Indian Exporter & Importers name.


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Contribution to total Exports 20072008.

Source : http://commerce.nic.in/


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0

100

200

300

400

500

600

700

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004

Imports Exports GDP

TRADE VALUE (BILLIONS, CONSTANT2000 DOLLARS)

Source: United Nations, UN COMTRADE database.

Indias Exports, Imports, and GDP


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RECENT WORLD

TRADE TRENDS


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RECEND TRENDS IN FOREIGN TRADE

Indias exports during May, 2010 were valued at US $ 16145 million (Rs.73964 crore) which was 35.1 per cent higher in dollar terms (27.5 per cent higherin Rupee terms) than the level of US $ 11952 million (Rs.58005 crore) during May,2009. Cumulative value of exports for the period April-May 2010 was US $33032 million (Rs 149111 crore) as against US $ 24349 million (Rs. 120069 crore)registering a growth of 35.7 per cent in Dollar terms and 24.2 per cent in Rupeeterms over the same period last year.

Indias imports during May, 2010 were valued at US $ 27437 million(Rs.125694 crore) representing a growth of 38.5 per cent in dollar terms (30.8 percent in Rupee terms) over the level of imports valued at US $ 19806 million ( Rs.96125 crore) in May, 2009. Cumulative value of imports for the period April-May,

2010 was US $ 54745 million (Rs. 247211 crore) as against US $ 38858 million (Rs.191502 crore) registering a growth of 40.9 per cent in Dollar terms and 29.1 percent in Rupee terms over the same period last year.


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Oil imports during May, 2010 were valued at US $ 8844 million which was66.7 per cent higher than oil imports valued at US $ 5306 million in thecorresponding period last year. Oil imports during April-May, 2010 werevalued at US$ 16923 million which was 68.5 per cent higher than the oilimports of US $ 10045 million in the corresponding period last year.

Non-oil imports during May, 2010 were estimated at US $ 18593million which was 32.3 per cent higher than non-oil imports of US $ 14057million in May, 2009. Non-oil imports during April - May, 2010 were valuedat US$ 37822 million which was 31.2 per cent higher than the level of suchimports valued at US$ 28821million in April - May, 2009.

The trade deficit for April - May, 2010 was estimated at US $ 21712million which was higher than the deficit of US $ 14509 million duringApril -May, 2009.


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0.00 0.10 0.20 0.30 0.40 0.50 0.60

Wearing apparel

Other manufacturing

Textiles

Chemicals

Minerals and metals

Trade and transportation

Services

Major Changes in Indian Exports

under a Doha Agreement

CHANGE FROM BASE SIMULATION (BILLION

DOLLARS)


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0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70

Other manufacturing

Minerals and metals

Chemicals

Vegetable oils and fats

Oil and gas

Vehicles

Major Changes in Indian Imports

under a Doha Agreement

CHANGE FROM BASE SIMULATION (BILLION

DOLLARS)


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DRIVERS

Worldwide trend of the economies of the world

becoming borderless and interlinked.

National economies merging into an

interdependent global economic system.

Declining trade and investment barriers

Perceived distances are shrinking due to

advances in transportation and

telecommunications.


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EXPORT PROMOTION CAPITAL GOODS SCHEME

a. For providing a thrust to the Agricultural sector, concessional duty imports madeby agro units under the EPCG Scheme shall be allowed to fulfill the exportobligation over a longer period of time with a reduced export obligation i.e. 6times the duty saved over a 12 year period instead of the normal window of 8times the duty saved in 8 years.

b. To promote capacity expansion and quality up-gradation in the SSI sector,import of capital goods at 5% Customs duty shall now be allowed subject to afulfillment of an export obligation equivalent to 6 times the duty saved on capitalgoods imported under the EPCG Scheme over a period of 8 years. (At present theexport obligation under the EPCG Scheme is 8 times the duty saved and reducingthe export obligation for small manufacturing units to 6 times shall provide an

impetus to industries to modernise their plant and machinery which will enhanceour overall export competitiveness in the medium term).

c. To create modern infrastructure in the retail sector, concessional duty benefitsunder EPCG scheme shall be extended for import of capital goods required byretailers having a minimum covered shopping area of 1000 sq metres


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SERVICE EXPORTS

a. To enable the Service providers to upgrade theinfrastructure in their associate companies, the goods

imported under the 'Served from India' Scheme shallbe transferable within the Group companies andmanaged hotels subject to Actual User condition.

b. At present, Hotels & Restaurants are required to

submit a Chartered Accountant certificate that theentire duty benefits availed under the 'Served fromIndia' Scheme have been passed on to the consumer


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Saravanan India’s Foreign Trade

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