Global trade relations

A map showing the global distribution of Indian exports in 2006 as a percentage of the top market (USA 20!"02!#00!000$% Until the liberalisation of &""&! India was largel' and intentionall' isolated from the world markets! to protect its econom' and to achie(e self)reliance% *oreign trade was sub+ect to import tariffs! export taxes and ,uantitati(e restrictions! while foreign direct in(estment (*-I$ was restricted b' upper)limit e,uit' participation! restrictions on technolog' transfer! export obligations and go(ernment appro(als. these appro(als were needed for nearl' 60/ of new *-I in the industrial sector% 0he restrictions ensured that *-I a(eraged onl' around 200 million annuall' between &"1# and &""&. a large percentage of the capital flows consisted of foreign aid! commercial borrowing and deposits of non)resident Indians%2&2#3 India4s exports were stagnant for the first &# 'ears after independence! due to general neglect of trade polic' b' the go(ernment of that period% Imports in the same period! due to industrialisation being nascent! consisted predominantl' of machiner'! raw materials and consumer goods%2&263

5raphical depiction of India4s product exports in 21 color)coded categories% Since liberalisation! the (alue of India4s international trade has increased sharpl'!2&263 with the contribution of total trade in goods and ser(ices to the 5-7 rising from &6/ in &""0"& to 86/ in 2001&0%2&2132&2"3 India accounts for &%88/ of exports and 2%&2/ of imports for merchandise trade and 9%98/ of exports and 9%9&/ of imports for commercial ser(ices trade worldwide%2&2"3 India4s ma+or trading partners are the :uropean Union! ;hina! the United States of America and the United Arab :mirates%2&903 In 200606! ma+or export commodities included engineering goods! petroleum products! chemicals and pharmaceuticals! gems and +eweller'! textiles and garments! agricultural products! iron ore and other minerals% <a+or import commodities included crude oil and related products! machiner'! electronic goods! gold and sil(er%2&9&3 In =o(ember

20&0! exports increased 22%9/ 'ear)on)'ear to 1#0%69 billion (US &9 billion$! while imports were up 6%#/ at &2#&%99 billion (US &" billion$% 0rade deficit for the same month dropped from 861%6# billion (US 6%2 billion$ in 200" to 800%6 billion (US 6%& billion$ in 20&0%2&923 India is a founding)member of 5eneral Agreement on 0ariffs and 0rade (5A00$ since &"86 and its successor! the >0?% >hile participating acti(el' in its general council meetings! India has been crucial in (oicing the concerns of the de(eloping world% *or instance! India has continued its opposition to the inclusion of such matters as labour and en(ironment issues and other non) tariff barriers to trade into the >0? policies%2&993

&2# ^ Srini(asan! 0%=% (2002$% Economic Reforms and Global Integration (7-*$% &6 @anuar' 2002% :conomic 5rowth ;enter! Aale Uni(ersit'% Betrie(ed 200")06)2&% &26 Jump up ^ 7anagari'a 2001! pp% 262" &26 Jump up ^ -att C Sundharam 200"! pp% 686681 &21 Jump up ^ 7anagari'a 2001! p% &0" &2" D @ump up toE a b F0rade profiles)IndiaF% >orld 0rade ?rganisation% Betrie(ed 20&2)02) 06% &90 Jump up ^ -att C Sundharam 200"! p% 6#6 &9& Jump up ^ FImports and :xports -atabankF% <inistr' of ;ommerce and Industr'! 5o(ernment of India% Betrie(ed 20&0)08)0#% &92 Jump up ^ FIndia4s *oreign 0radeE =o(ember 20&0F% Press Release% <inistr' of ;ommerce and Industr'! 5o(ernment of India% 9 @anuar' 20&&% Betrie(ed 20&&)0&)&&% &99 Jump up ^ FIndia C the >orld 0rade ?rganisationF% :mbass' of India% Archi(ed from the original on &9 @une 200#% Betrie(ed 200#)06)0"%