indian trade

8/8/2019 Indian Trade

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Copyright Wondershare Software

CHANGING TRADE PATTERN IN INDIA

Submitted by: Varun Yadav

(1270)


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Indias International Trade:Indias International Trade:

20082008--0909

Exports in August 2008- US$ 16.0 billion- growth of26.9% (18.2% previous year).

Imports in August 2008- US$ 29.9 billion- increase of51.2% (34.2% previous year).

POL imports during April-August 2008-US$ 46.1 billion- growth of 60% (17.9% previousyear).


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Trade : marine sectorTrade : marine sector

Fisheries exempted from maintenance

of average EO under EPCG Scheme

(along with 7 sectors) however

Fishing Trawlers, boats, ships and

other similar items shall not be

allowed for this exemption.

Additional flexibility under Target

Plus Scheme (TPS) / Duty Free

Certificate of Entitlement (DFCE)

Scheme for the marine sector.


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Trade for agro exportTrade for agro export

Introduction of a single window

system to facilitate export of

perishable agricultural produce

with an aim to reduce transaction

and handling cost.

This system will involve creation

of multi-functional nodal

agencies. These agencies will be

accredited by APEDA.


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Trade : gems and jewelry sectorTrade : gems and jewelry sector

Duty Drawback is allowed on Gold

Jewellery exports to neutralize duty

incidence.

Plan to establish "Diamond Bourse (s)

with an aim to make India and

International Trading Hub announced.

Introduction of a new facility to allow

import on consignment basis of cut &

polished diamonds for the purpose of

grading/ certification.


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TradeTrade Reforms to DateReforms to Date

Prior to 1991, India was the archetypical import

substituting regime with one of the most

complicated and protectionist regime in the world.

Indias, simple average tariff rate has come down

significantly from 128 percent in 1991 to about 34

percent in 2000


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The trade-weighted tariffs declined from 87 percentin 1991 to around 30 percent by 2000.

slight increase in the trade-weighted tariffs from a

low of 25 percent in 1996 to 30 percent by 2000.

Taxes on international trade as a proportion of total

tax revenue far exceeded most of the Developing EastAsian (DEA) countries


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While India continues to have one of the worlds mostrestrictive external sectors, significant progress has been made

in recent years towards a compression and simplification of

tariff structures; the tariff structures have become more

uniform across goods, as observed by a decline in the

dispersion of tariff rates over 1990-98.

Indias export dependence on primary products, as indicated

by its average share in Indias total merchandise exports,

declined over the period (from 24 percent in 1988-90 to about20 percent in 1998-2000)


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manufactured products increased slightly (from 71percent in 1988-90 to 77 percent by 1998-2000).

the manufactured exports during the 1998-2000

period, the largest share of exports consisted ofhandicrafts, primarily gems and jewellery (18.0

percent), engineering goods (14.0 percent)


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Emergence of the Services Sector in IndiaEmergence of the Services Sector in India

First, in many service activities, problems of

asymmetric information are especially acute as the

purchaser does not know the quality of a

professional service being purchased until after ithas been paid for and consumed.

Second, services trade requires the consumer and

service provider to interact simultaneously


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value added by the services sector as a proportion ofGDP during the pre-reform period of 1980-89 was

about 40 percent in India, it increased steadily over

the post-reform years to a high of 45 percent in 1998.


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Information and Communication Technology (ICT)Information and Communication Technology (ICT)

Information and Communication Technology (ICT)

and related services were viewed as being no

tradable just a few years ago.

they have in fact been the main thrust of rapid

expansion of services trade in India, accounting for

nearly 58 15 percent of service exports and about

16 percent of total exports in 1998


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Copyright Wondershare Software13

Growth of Indias InternationalGrowth of Indias International

TradeTrade


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Indias Trading PartnersIndias Trading Partners


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Indias Trade BasketIndias Trade Basket


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Items 2007-08 2008-09P

Exports 60.1 81.3

(19.3) (35.3)

Oil Exports* 4.7 9.0

(6.2) (91.5)

Non-Oil Exports* 26.0 39.1

(5.5) (50.3)

Imports 94.6 130.5

(34.2) (38.0)

Oil Imports 28.8 46.1

(17.9) (60.0)

Non-Oil Imports 65.8 84.5

(42.7) (28.3)

Trade Balance -34.6 -49.3Oil Trade Balance* -12.3 -20.5

Non-Oil Trade Balance* -13.5 -9.0

* : Figures pertain to April-June

P: Provisional

Note : All figures in US$ billion. Figures in parentheses show percentage change over the previous year.

Source : DGCI & S

Indias International Trade: 2008-09


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Source: DGFT, Annual Report 2007-08

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(Percentage Shares)Commodity Group 2006-07 2007-08 2008-09

Primary products 15.6 1 7 16.2

1. Agriculture and

allied products 10.0 11.4 11.4

2. Ores and minerals 5.5 5.7 4.8

Manufactured goods 67.2 63.6 58.31. Leather and

manufactures 2.4 2.2 1.8

2. Chemicals and

related products 13.7 12.9 11.4

3. Engineering goods 23.4 23.1 24.1

4. Textile and textile

products 13.7 12.0 10.4

5. Gems and jewellery 12.6 12.4 9.7

Petroleum products 14.8 15.6 18.7

Others 2.4 3.8 6.8

Total exports 100.0 100.0 100.0Source: Compiled from DGCI & S data.

Indias Export: 2008-09


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Indias Import: 2008-09

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Services TradeServices Trade

Services trade shares about 9% of GDP.

Services export growing much faster than world

services exports; In 2000-2006-

India: 38.22%,World: 12.84%.

Services trade contributes about 2.64% of worldservices trade.


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Services Trade


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Services ExportServices Export


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Service ImportService Import


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ConclusionConclusion

Significant contribution to growth of economy.

Creation of foreign currency pool.

Local factors- political interests, culture & values

Oil imports & unstable oil prices- negative tradebalance.


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indian trade

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