INDIAS FOREIGN TRADE

Meaning
Trade between two or more nations is called foreign
trade or international trade. This involves the exchange
of goods and services between the citizens of two
nations. when the citizens of one nation exchange
goods and services with the citizens of another nation,
it is called foreign trade; for example, India's trade with
USA, Japan, France and Pakistan.
Foreign trade transactions are classified under three
categories:
Import Trade
Export Trade



Indias Foreign Trade: February, 2009
A. EXPORTS (including re-exports)
Exports during February, 2008-09 were valued at US $
11913 million which was 21.7 % lower than the level of
US $ 15221 million during February, 2008.
In rupee terms, exports touched Rs. 58685 crores,
which was 3% lower than the value of exports during
February, 2007-08.
Cumulative value of exports for the period April-
February, 2008-09 was US$ 156597 million (Rs.705231
crore) as against US$ 145878 million (Rs. 586233)
registering a growth of 7.3% in Dollar terms & 20.3% in
Rupee terms over the same period last year.

WHEN INTERNATIONAL TRADE?
when businesses cross borders: (subsidiaries)

production and operations, and marketing is
done internationally,

human resources belong to more than one
country

international investment is involved,








DRIVERS
Worldwide trend of the economies of the world
becoming borderless and interlinked.
National economies merging into an
interdependent global economic system.
Declining trade and investment barriers
Perceived distances are shrinking due to
advances in transportation and
telecommunications.



Source : http://www.indianstat.com/foreigntrade
Continued..
B. IMPORTS
Imports during February, 2008-09 were valued at
US $ 16823 million representing a decrease of
23.3% over the level of imports valued at US $
21934 million in February, 2007-08.
In Rupee terms, imports decreased by 4.9%.
Cumulative value of imports for the period April-
February, 2008-09 was US$ 271687 million (Rs.
1223213 crores) as against US$ 228081 million (Rs.
917179 crores) registering a growth of 19.1% in
Dollar terms and 33.4% in Rupee terms over the
same period last year.

Continued
C. CRUDE OIL AND NON-OIL IMPORTS:
Oil imports during February, 2008-09 were valued at US $ 4047 million
which was 47.5 % lower than oil imports valued at US $ 7713 million in the
corresponding period last year.
Oil imports during April- February, 2008-09 were valued at US$ 89684
million which was 26.8 % higher than the oil imports of US$ 70704 million in
the corresponding period last year.

Non-oil imports during February, 2008-09 were estimated at US $ 12776
million which was 10.2 % lower than non-oil imports of US$ 14222 million
in February, 2007-08.
Non-oil imports during April- February, 2009 were valued at US$ 182003
million which was 15.6 % higher than the level of such imports valued at
US$ 157376 million in April- February, 2007-08.

Continued
D. TRADE BALANCE
The trade deficit for April- February, 2008-09 was
estimated at US $ 115090 million which was higher than the
deficit at US $ 82203 million during April- February, 2007-08.

Source : http://exim.indiamart.com/foreign-trade-policy
Interim EXIM Policy 2009 - 10 Highlights.

Trade facilitation measures (Supplement to Foreign
Trade Policy 04-09) announced on 26th February, 2009.

FTP Benefits Without BRC
Additional Benefits Under Promotional Schemes
Gems & Jewellery Sector
Advance Authorization
DEPB Scheme
EPCG Scheme
Premier Trading Houses
Towns Of Export Excellence
Other Facilitation Measures



Indias Exports & Imports
India export & Import data is based on shipping bills
filed at Indian customs at the time of export
clearance. This data includes:
Date of shipment,
Item Description,
Quantity,
Units,
FOB value,
Foreign port and buyer name & country,
Indian port & Indian Exporter & Importers name.
Contribution to total Exports 2007 2008.
Source : http://commerce.nic.in/
0
100
200
300
400
500
600
700
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004
Imports Exports GDP
TRADE VALUE (BILLIONS, CONSTANT
2000 DOLLARS)
Source: United Nations, UN COMTRADE database.

Indias Exports, Imports, and GDP
RECENT WORLD
TRADE TRENDS
RECEND TRENDS IN FOREIGN TRADE

Indias exports during May, 2010 were valued at US $ 16145 million (Rs.
73964 crore) which was 35.1 per cent higher in dollar terms (27.5 per cent higher
in Rupee terms) than the level of US $ 11952 million (Rs.58005 crore) during May,
2009. Cumulative value of exports for the period April-May 2010 was US $
33032 million (Rs 149111 crore) as against US $ 24349 million (Rs. 120069 crore)
registering a growth of 35.7 per cent in Dollar terms and 24.2 per cent in Rupee
terms over the same period last year.

Indias imports during May, 2010 were valued at US $ 27437 million
(Rs.125694 crore) representing a growth of 38.5 per cent in dollar terms (30.8 per
cent in Rupee terms) over the level of imports valued at US $ 19806 million ( Rs.
96125 crore) in May, 2009. Cumulative value of imports for the period April-May,
2010 was US $ 54745 million (Rs. 247211 crore) as against US $ 38858 million (Rs.
191502 crore) registering a growth of 40.9 per cent in Dollar terms and 29.1 per
cent in Rupee terms over the same period last year.


Oil imports during May, 2010 were valued at US $ 8844 million which was
66.7 per cent higher than oil imports valued at US $ 5306 million in the
corresponding period last year. Oil imports during April-May, 2010 were
valued at US$ 16923 million which was 68.5 per cent higher than the oil
imports of US $ 10045 million in the corresponding period last year.

Non-oil imports during May, 2010 were estimated at US $ 18593
million which was 32.3 per cent higher than non-oil imports of US $ 14057
million in May, 2009. Non-oil imports during April - May, 2010 were valued
at US$ 37822 million which was 31.2 per cent higher than the level of such
imports valued at US$ 28821million in April - May, 2009.

The trade deficit for April - May, 2010 was estimated at US $ 21712
million which was higher than the deficit of US $ 14509 million during
April -May, 2009.


0.00 0.10 0.20 0.30 0.40 0.50 0.60
Wearing apparel
Other manufacturing
Textiles
Chemicals
Minerals and metals
Trade and transportation
Services
Major Changes in Indian Exports
under a Doha Agreement
CHANGE FROM BASE SIMULATION (BILLION
DOLLARS)
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70
Other manufacturing
Minerals and metals
Chemicals
Vegetable oils and fats
Oil and gas
Vehicles
Major Changes in Indian Imports
under a Doha Agreement
CHANGE FROM BASE SIMULATION (BILLION
DOLLARS)
WHEN INTERNATIONAL TRADE?
when businesses cross borders: (subsidiaries)

production and operations, and marketing is
done internationally,

human resources belong to more than one
country

international investment is involved,








DRIVERS
Worldwide trend of the economies of the world
becoming borderless and interlinked.
National economies merging into an
interdependent global economic system.
Declining trade and investment barriers
Perceived distances are shrinking due to
advances in transportation and
telecommunications.



The Shrinking Globe-The death of
distance
1500-1840
1850-1930
1950s
1960s
Best average speed of
horse-drawn coaches and
sailing ships, 10mph.
Steam locomotives average 65mph.
Steamships average 36mph.
Jet passenger aircraft
500-700mph.
. REMOVAL OF EXPORT CESS

The Department of Commerce has taken a consistent
stand from a policy perspective that taxes and duties
should not be exported. The cess levied under the
different Commodity Board Acts is a tax on exports,
which is a handicap and a major irritant to our
exporters and erodes the competitiveness of Indian
agriculture exports. Department of Commerce
proposes to abolish cess on export of all agricultural
and plantation commodities levied under various
Commodity Board Acts.

EXPORT PROMOTION CAPITAL GOODS SCHEME

a. For providing a thrust to the Agricultural sector, concessional duty imports made
by agro units under the EPCG Scheme shall be allowed to fulfill the export
obligation over a longer period of time with a reduced export obligation i.e. 6
times the duty saved over a 12 year period instead of the normal window of 8
times the duty saved in 8 years.

b. To promote capacity expansion and quality up-gradation in the SSI sector,
import of capital goods at 5% Customs duty shall now be allowed subject to a
fulfillment of an export obligation equivalent to 6 times the duty saved on capital
goods imported under the EPCG Scheme over a period of 8 years. (At present the
export obligation under the EPCG Scheme is 8 times the duty saved and reducing
the export obligation for small manufacturing units to 6 times shall provide an
impetus to industries to modernise their plant and machinery which will enhance
our overall export competitiveness in the medium term).

c. To create modern infrastructure in the retail sector, concessional duty benefits
under EPCG scheme shall be extended for import of capital goods required by
retailers having a minimum covered shopping area of 1000 sq metres
SERVICE EXPORTS

a. To enable the Service providers to upgrade the
infrastructure in their associate companies, the goods
imported under the 'Served from India' Scheme shall
be transferable within the Group companies and
managed hotels subject to Actual User condition.

b. At present, Hotels & Restaurants are required to
submit a Chartered Accountant certificate that the
entire duty benefits availed under the 'Served from
India' Scheme have been passed on to the consumer
. AGRI EXPORTS

a. Benefits under 'Vishesh Krishi Upaj Yojana' shall also be extended to
exports of poultry and dairy products in addition to export of flowers,
fruits, vegetables, minor forest produce and their value added products.
GEM AND JEWELLERY EXPORTS

a. Entitlement for Duty Free imports of Gems and Jewellery samples have
been enhanced to Rs. 3 lakhs in a financial year or 0.25% of the average of
the last three years exports turnover or gems and jewellery items,
whichever is lower. Earlier this limit was Rs. 1 lakh.

b. Supply of gold of 0.995 and above purity shall also be allowed for
release by nominated agencies for export purposes. Earlier this facility was
only available for supply of gold in the domestic market.