m 6
 is any goods or services brought in from

one country to another country in a legitimate

fashion, typically for use in trade.
m Ã
 is any goods or services, transported from
one country to another country in a legitimate
fashion, typically for use in trade.
m Úalance of trade represents a difference in value
for import and export for a country
m A country has demand for an import when
domestic quantity demanded exceeds domestic
quantity supplied, or when the price of the good
(or service) on the world market is less than the
price on the domestic market
m NX = X í I, where NX represents Úalance of
Trade, X is Exports and I is Imports
m Export value = $176.5 billion (2009)
m Import value = $287.5 billion (2009)
m Hence there is a deficit of $111 billion
m Export grew by 22.5% in August to $16.64 billion.
Target being $200 billion for the year.
m Import jumped to a higher rate of 32.2% to $29.7
billion in August resulting in trade deficit of $13.06
billion
m oftware
m Petroleum products
m Textile goods
m Gems and jewellery
m Engineering goods
m Chemicals
m Leather manufactures
m Crude oil
m Machinery
m Gems
m Fertilizer
m Chemicals
m Transport equipments, aircraft spare parts
m Electrical and electronic goods
m Medicine & medical equipments
 ^

9.30%
12.30%

U
U
China
9.40%
 ^

. 0%
. 0% 11.10% China
. 0% audi Arabia
U
7.50% UA
5.10%
Iran
6.60% ingapore
Germany
î ^ 
 

m The Customs Act governs the levying of tariffs

on imports and exports and frames the rules for
customs valuation.
m Total duties on imports now consist of basic duty
(ranging from zero to 65%) plus additional or
countervailing duties (equal to excise duties) on
manufactured "luxury" items, total import taxes
can amount to 150%
J.  
 
 

m I i i rt li i l t ti
f r    
  
m I rt it i r t fr t
t r r t ri l , t
l .
m r t i i r ti r rt
l r f ll r rti l t ti "i t li
i t r t" t if iti -
r i i .
m All imports now fall into one of the following four categories:
î



 : Most capital goods fall into this
category. Items in this category do not require import
licences and may be freely imported by any individual or
entity.
   

 : Certain items can be imported only
with licences and only by actual users. Items include
precious and semi-precious stones; products related to
safety and security; seeds, plants and animals; some
insecticides, pharmaceuticals and chemicals; some
electronic items; several items reserved for production by
the small-scale sector; and 17 miscellaneous or special-
category items
. ^

 : It rt i t r
i rt l ifi li - t r
i . i l tr l r t (t
i rt l t I i Oil r r ti );
itr ti , t i l
i l f rtili r ( t i r l t l
r i r r ti ); it i - r ( t
St t r i r r ti ); il (
t St t r i r r ti i t
V t l Oil ); r l ( t
r r ti f I i ).
4. 0 
 : nly three items-tallow
fat, animal rennet and unprocessed ivory-are
completely banned from importation.
m Most items can be freely exported from India.
m A few items are subject to export control in order to

 

 
  



 

  



 
 

 .
m Export profits are exempt from income tax.
m Higher royalty payments of 8% (net of taxes) are
permitted on export sales as compared to 5% on
domestic sales.
m Export commissions up to 10% are also permissible.
m Ã



à  and Ã


0  

Ã0  enjoy special
incentives such as duty free import of capital
goods and raw materials for the purpose of export
production
m A Ú
Ã


 has been set up to
popularize high quality India brands in the world
market. The corpus of the fund of Rs 5 billion (U
$156 million) will receive equal contributions from
the government and industry.
m The only products subject to an export tax (at the
rate of 10%) are goat, sheep and bovine leathers.
m Products may also be subject to a minimum export
price.
m The list of products subject to minimum prices
includes basmati and non-basmati rice, cotton,
and hard and soft cotton waste.
m Positive influence on the future international system, promoting
stability, democracy, prosperity and peace across the world
m utsourcing of knowledge work to India by the U based
companies as producing goods and services in India makes
them cheaper in the U.
m The U-India Agricultural Alliance 2005, promoted
teaching, research, service and commercial linkages.
m Úilateral Knowledge Initiative on Agriculture- linked
universities, technical institutions and businesses to support
agriculture education, joint research and capacity building
projects
m U institutional investors are increasingly investing in India and
on the other hand Indian multinational corporations are going on
buying companies in the U and establishing operations in the
U.
m UK-oldest democracies, India-world¶s largest
m UK is the largest European investor in India and the
fourth largest internationally with £3.87bn of FDI stock
in 2008.
m The two biggest acquisitions for India globally involve
the UK: odafone's £7.3bn ($11bn) acquisition of
Hutchison in 2007 and Tata¶s £8bn ($12bn) acquisition
of Corus in the same year.
m UK, the gateway to European Union single market-2nd
in India¶s global trade partnership after the U and 3rd
in terms of FDI in India.
m A few years ago, India Inc had a fear of being swamped by
Chinese imports. Today, India enjoys a positive balance of trade
with China.
m In 2004, India's total trade to China crossed U $13.6
billion, with Indian exports to China touching $ 7677.43 million
and imports from china at U $ 5926.67 million.
m India and China have been directly competing across several
product categories
m Export to China-Iron ore(53%),marine products, oil
seeds, salt, inorganic chemicals, plastic, rubber, optical and
medical equipment and dairy products
m Import from China- alue added items dominate Chinese exports
to India, especially machinery, including electrical
machinery, which together constitute about 36% of exports from
that country.
m India's share in the global trade, including trade in
merchandise and services sector, has increased
from 1.1 percent in 2004 to 1.5 percent in 2006
and will cross the  

 

!!".
m Foreign trade, as a percentage of GDP (in rupee
terms) was over 25% in 2006, up from 14.1
percent in 1990-91.
THANK Y U