National Foreign Trade Since 2001

ANUJ ARORA ENR. NO. 12115020

FOREIGN TRADE -INTRODUCTION• Diversity across the world in term of -Uneven Distribution of Natural Resources

-Division of Labour and Specialization

-Differences in Economic Growth Rate

• Each country has not enough competency to produce all kind goods & services to fullfill the need • Trade between two or more nations is called foreign trade or international

trade • Foreign trade transactions are classified under three categories:

contd….

Import Trade Export TradeBalance of Trade

• The balance of trade is the difference between the monetary value of exports and imports of output in an economy over a certain period. It is the relationship between a nation's imports and exports.Positive or favorable balance of trade is known as a trade surplus if it consists of exporting more than is imported; a negative or unfavorable balance is referred to as a trade deficit

India's Exports, Imports, and Balance of Trade from 2000-01 to 2010-11

Table 3.1: India's Exports, Imports, and Balance of Trade from 2000-01 to 2010-11

Year value in Rs. '00 crores percentage growth

Exports Imports Balance of Trade

Exports Imports Balance of Trade

2000-01 2035.71 2308.73 -273.02 27.58 7.26 -50.97 2001-02 2090.18 2452.00 -361.82 2.68 6.21 32.53 2002-03 2551.37 2972.06 -420.69 22.06 21.21 16.27 2003-04 2933.67 3591.08 -657.41 14.98 20.83 56.27 2004-05 3753.40 5010.65 -1257.25 27.94 39.53 91.24 2005-06 4564.18 6604.09 -2039.91 21.60 31.80 62.25 2006-07 5717.79 8405.06 -2687.27 25.28 27.27 31.73 2007-08 6558.64 10123.12 -3564.48 14.71 20.44 32.64 2008-09 8407.55 13744.36 -5336.81 28.19 35.77 49.72 2009-10 8455.34 13637.36 -5182.02 0.57 -0.78 -2.90 2010-11 11429.22 16834.67 -5405.45 35.17 23.45 4.31

India’s RankFactor Rank Factor Rank

Population 2 Milk production 1

Area 7 Butter and ghee production

1

Arable land 2 Sugar production 2

Irrigation area 1 Merchandise exports 31

Tractors in use 2 Merchandise imports 26

Nitro fertiliser consumption 2 Service exports 22

Rice production 2 Service imports 19

Wheat production 2 GNP 12

Tobacco production 2 GNP at purchasing power parity

4

Tea production 1

EXPORT…..

IMPORT…….

The Indian Institute of Foreign Trade (IIFT)• The Indian Institute of Foreign Trade (IIFT) was set up in 1963 by the

Government of India to increase exports by developing human resources,generating, analyzing data and conducting research. The Institute has also trained more than 40,000 business professionals across 30 countries in various facets of international business and trade policy via its Management Development Programmes.

INDIA’S FOREIGN TRADE POLICY 2009-14

The Union Commerce Ministry, Government of India announces the integrated Foreign Trade Policy FTP in every five year. This is also called EXIM (import export policy). This policy is updated every year with some modifications and new schemes. New schemes come into effect on the first day of financial year i.e. April 1, every year. The Foreign trade Policy which was announced on August 28, 2009 is an integrated policy for the period 2009-14.

Objectives of Foreign Trade Policy 2009-14

1. To Double India's exports of goods and services by 20142. To double India's share in global merchandise trade by 2020 as a long term aim of this policy.3. Simplification of the application procedure for availing various benefits 4. To set in motion the strategies and policy Measures which catalyse the growth of exports