current global trade scenario

GLOBAL

TRADING ENVIRONMENT

Presented by :Navdeep Malik

GLOBAL TRADE Exchange of goods and services along

international borders.Making and collecting payments for

transactions in goods and services.Summary of trade undertaken is reflected in

the Balance of Payment.

WHY GLOBAL TRADE Optimum utilisation of resources.Competitive environment.Standardised goods and services.Foreign investments.Enhance employment.Enhance employment.

CURRENT SCENARIO INDIAN ECONOMY

India CAD is $88 billion accounting to 4.8% of GDP.

Exports increased by 11.6% for July 2013 and 13% in august.

Imports fell by 6.2% to $38.1 billion from $40.6 billion.

Import duty on jewellery hiked to 15%.Growth rate brought to 5.3% from previous

projection of 6.4%.Repo rate raised from7.25% to 7.50% and MSF

down from 10.50 % to 9.50%.

PMEAC PROJECTION FOR 2013-2014

2010-11 2011-12 2012-13 2013-14

9.30%

6.30%5.00% 5.30%

GDP GROWTHSeries1 Polynomial (Series1)

2010-11 2011-12 2012-13 2013-14

7.90%

3.60%

1.90%

4.80%

AGRICULTURE GROWTHSeries1 Polynomial (Series1)

DECLINE PROJECTION

2010-11 2011-12 2012-13 2013-14

46

78.287.8

70

CAD ($bn)Series1 Polynomial (Series1)

2010-11 2011-12 2012-13 2013-14

40.5

56.3 53.7

38

GOLD IMPORTSSeries1 Polynomial (Series1)

EXPORT FIGURES FOR APRIL-JUNE

COUNTRY 2013-2014(Apr-June) % SHARE

USA 9,944.97 13.7685

U.A.E 7,387.93 10.2284

SAUDI ARAB 2,989.20 4.1385

HONG KONG 3,023.35 4.1857

SINGAPORE 3,952.25 5.4718

JAPAN 1,652.86 2.2883

GERMANY 1,774.71 2.4570

FRANCE 1,219.22 1.6880

CHINA 2,428.59 3.3623

BHUTAN 21.52 0.0298

PAKISTAN 432.14 0.5983

SRILANKA 756.99 1.0480

IMPORT FIGURES FOR APRIL-JUNE

COUNTRY 2013-2014(APR-JUN % SHARE

CHINA 12,078.47 9.8463

SAUDI ARAB 8,593.64 7.0055

SINGAPORE 1,474.77 1.2022

QATAR 4,017.76 3.2752

MALAYSIA 2,496.66 2.0353

KUWAIT 4,897.43 3.9923

JAPAN 2,572.29 2.0969

IRAQ 5,919.18 4.8253

U S A 5,869.69 4.7849

U.A.E 9,263.53 7.5515

GERMANY 3,088.42 2.5176

JAPAN ECONOMY AT GLANCEEconomy is the third largest in terms of GDP.Economy is recovering from deflation.Course for its longest run of trade deficits.Trade deficit rose to 960 billion yen from 768

billion compared to last August.Economy expanded 0.9% compared to 1st quarter.Government plans to raise consumption tax.Economy to boost as Tokyo won the bid to host

the 2020 Olympic and Paralympics Games.Japan will spend an estimated $8bn (£5bn) on

refurbishing old stadiums and building new ones.

• Third largest automobile manufacturing country.

• Exports have fallen.• Toyota Motor Co and Honda Motor Co have

reported a decline in export volumes so far this year, partly because they continue to shift production abroad.

MAJOR EXPORTS

Motor ve-hicles21%

Electrical machinery

21%

Electronics & semi conductors

18%

Chemicals12%

Iron and steel6%

Scientific equipments

3%

Others 19%

MAJOR IMPORTS

FUEL32%

MACHINERY19%FOOD

9%MANU-FAC-

TURED GOODS

9%

CHEMICALS 9%

RAW MATE-RIALS

8%

CLOTH-ING 4%

OTHERS10%

SINGAPORE • GDP expanded 3.8% compared to 1st quarter.• Most competitive and business friendly economy.• Leading foreign direct investment recipient.• Unemployment increased to 2.10% in 2nd quarter

as to 1.90%• Inflation was recorded at 2% in august.• Corporate tax is 17% in 2013 compared to 20%

i.e. all time high in 2007.• Trade surplus widened to 3526 million SGD from

3492 million SGD.

MAJOR EXPORTS

Electronics31%

Fuel26%

Chemicals 12%

others food,textiles,transpo

rt 31%

MAJOR IMPORTS

Fuel33%

Electronic components25%

Machinery16%

Chemicals6%

Manu-factured goods.

5%

others agriculture

products etc

15%

UNITED STATES OF AMERICAMost technologically advanced economies in

the world.Gross Domestic Product (GDP) expanded 2.50

percent in the second quarter of 2013.Unemployment decreased to 7.30% in august

from 7.40% in July.Annual inflation rate slows to 1.5% in august.Federal reserve said it would continue to buy

bonds of $80 billion monthly.

MAJOR EXPORTS

INDUSTRIAL SUPPLIES

34%

CAPITAL GOODS33%

FOOD AND BEVERAGE

9%

AUTO-MOTIVE & ENGINES

9%

CONSUMER GOODS

12%OTHERS

3%

MAJOR IMPORTS

INDUSTRIAL SUPPLIES

32%

CAPITAL GOODS24%

AUTO-MOTIVE& ENGINES

13%

CONSUMER GOODS

12%

FOOD AND BEVERAGE

5%

OTHERS14%

GERMANY Germany is the largest national economy

in Europe. GDP grew by 0.7% in 2nd quarter .Inflation rate down to 1.5% in August.Germany's trade balance registered a surplus

of €16.9 billion, up from €13.6 for the month of July.

German Unemployment Rate Falls in July .

MAJOR EXPORTS

CARS18%

MACHINERY15%

CHEMICALS/HARDWARE/

PHARMA/40%

OTHERS27%

MAJOR IMPORTSELECTRONICS

10%FUEL9%

VEHICLES PARTS /METALS

7%TEXTILE/FOOD/

PHARMA/RUBBER/ PLASTIC

74%