INDIAS FOREIGN

TRADE
Current Scenario and Effects of TFA on Indian Exports

Presented By
Alok Jain
PGDM (14-16)

Contents
What is Foreign Trade?
Why Foreign Trade?
Foreign Trade in Indian Context
Export Commodity Wise
Export Reign Wise
Export Country Wise
Direction of Foreign Trade
WTOs Trade Facilitation Agreement

What is Foreign Trade?

Trading goods and services that are destined for a country other than
their country of origin

Foreign trade is all about imports and exports.

Why Foreign Trade?

Comparative Advantage
Some nations are adept at producing certain products at a cost-effective
price. Perhaps it is because they have the labor supply or abundant natural
resources which make up the raw materials needed.

The ability of some nations to produce what other nations want is

what makes foreign trade work.

History of Foreign Trade

Around 100CE
The Periplus of the Erythraean Sea is a document written by an anonymous
sailor from Alexandria about 100CE describing trade between countries,
including India.

Around 1500
In 1498 Portuguese explorer Vasco da Gama landed in Calicut

1991 economic reform

Prior to the 1991 economic liberalisation, India was a closed economy due to
the average tariffs exceeding 200 percent and the extensive quantitative
restrictions on imports. Foreign investment was strictly restricted to only
allow Indian ownership of businesses.

Containerization
Developed after World
War II, dramatically
reduced transport costs,
supported the postwar boom in
international trade, and
was a major element
in globalization.
Containerization did
away with the sorting of
most shipments and the
need for warehousing.

Various FTAs and Trade

groups

Organization of the Petroleum

Exporting Countries (OPEC)

Organisation for Economic Co-operation

and Development (OECD)
On 14 December
1960, 20 countries
originally signed
the Convention,
Since then, 14
countries have
become members
of the Organisation.

South Asian Free Trade Area

(SAFTA)
SAARC NATIONS

Afghanistan
Bangladesh
Bhutan
India
Maldives
Nepal
Pakistan
Sri Lanka

DIRECTION OF
FOREIGN TRADE

Total OECD countries

(Rupees Billion)
7440.65

7086.44

5589.74
5155.73

4959.69
3797.67

2010-11

2011-12

Import

Export

2012-13

Total OPEC countries

(Rupees Billion)
10317.57
8322.30

5652.85

3419.08
2782.91

2437.69

2010-11

2011-12

Import

Export

2012-13

Total Latin America

(Rupees Billion)
896.06
799.13
642.80
568.62

459.73
401.54

2010-11

2011-12

Import

Export

2012-13

All African countries

(Rupees Billion)
1327.33

982.50

939.83

1017.47

723.55
601.79

2010-11

2011-12

Import

Export

2012-13

All Asian countries

(Rupees Billion)
6463.70
6064.35

4561.03

4665.77

4350.93
3192.54

2010-11

2011-12

Import

Export

2012-13

Export Reign Wise

Europe
Values in Rs. Crores
(P) Provisional

Region

1) Europe

Apr-Jun 2013 Apr-Jun 2014(P) %Growth %Share

73,567.99

82,858.97

12.63

17.63

65,451.67

71,982.17

9.98

15.31

1.2 European Free Trade Associatipn (EFTA)

3,463.74

1,898.44

-45.19

0.4

1.3 Other European Countries

4,652.58

8,978.36

92.98

1.91

1.1 EU Countries

Africa
Values in Rs. Crores
(P) Provisional

Region
2) Africa

Apr-Jun 2013 Apr-Jun 2014(P) %Growth %Share

35,847.71

51,379.32

43.33

10.93

2.1 Southern African Customs Union (SACU)

6,157.69

7,125.37

15.71

1.52

2.2 Other South African Countries

2,523.95

4,087.84

61.96

0.87

2.3 West Africa

8,886.47

10,011.34

12.66

2.13

2.4 Central Africa

1,371.76

1,775.88

29.46

0.38

2.5 East Africa

9,565.27

18,538.63

93.81

3.94

2.6 North Africa

7,342.57

9,840.27

34.02

2.09

America
Values in Rs. Crores
(P) Provisional

Region
3) America

Apr-Jun 2013 Apr-Jun 2014(P) %Growth %Share

72,303.22

86,892.49

20.18

18.48

3.1 North America

60,355.43

69,651.12

15.4

14.82

3.2 Latin America

11,947.78

17,241.37

44.31

3.67

Asia
Values in Rs. Crores
(P) Provisional

Region
4) Asia

Apr-Jun 2013 Apr-Jun 2014(P) %Growth %Share

2,00,910.85

2,39,315.78

19.12

50.91

3,375.68

4,047.75

19.91

0.86

4.2 ASEAN

46,930.85

48,856.49

4.1

10.39

4.3 West Asia- GCC

65,591.37

82,810.53

26.25

17.61

4.4 Other West Asia

16,481.03

18,517.32

12.36

3.94

4.5 NE Asia

48,545.21

56,294.70

15.96

11.97

4.6 South Asia

19,986.70

28,788.99

44.04

6.12

4.1 East Asia (Oceania)

CIS & Baltics

Values in Rs. Crores
(P) Provisional

Region
5) CIS & Baltics

5.1 CARs Countries

5.2 Other CIS Countries

Apr-Jun 2013 Apr-Jun 2014(P) %Growth %Share

4,700.10

5,007.44

6.54

1.07

715.11

851

19

0.18

3,984.99

4,156.44

4.3

0.88

Export Country Wise

Top 5 Countries of Export

Values in Rs. Crores
(P) Provisional

Rank

Country

Apr-Jul 2013

Apr-Jul 2014(P)

%Growth

%Share

USA

74,909.96

85,366.95

13.96

13.74

U ARAB EMTS

56,402.03

66,840.94

18.51

10.76

SAUDI ARAB

23,932.64

27,416.57

14.56

4.41

HONG KONG

23,008.45

24,675.00

7.24

3.97

CHINA P RP

19,055.13

23,688.80

24.32

3.81

5,65,031.45

6,21,293.31

9.96

100

Total

USA
(Rupees Billion)

1965.39
1664.74
1320.02
1152.12

1172.93

913.59

2010-11

2011-12

Import

Export

2012-13

UAE
(Rupees Billion)

2090.92

1977.16

1722.68

1711.27
1538.66

1491.23

2010-11

2011-12

Import

Export

2012-13

Saudi Arabia
(Rupees Billion)
1814.58

1493.50

928.55

532.13
272.08

212.96
2010-11

2011-12

Import

Export

2012-13

Hong Kong
(Rupees Billion)

668.85
618.77

470.38

507.18
439.23

428.25

2010-11

2011-12

Import

Export

2012-13

China(PRC)
(Rupees Billion)

2955.21
2759.99

1980.79

876.69

704.14

2010-11

2011-12

Import

Export

734.83

2012-13

Germany
(Rupees Billion)
780.95

780.95

541.36
393.89

379.82
307.33

2010-11

2011-12

Import

Export

2012-13

Australia
(Rupees Billion)
713.04
652.87

491.88

127.80

119.90
78.03
2010-11

2011-12

Import

Export

2012-13

Major Shipping Lines

Export Credit Guarantee

Corporation of India Limited
(ECGC)
Offers insurance protection to exporters against payment risks
Provides guidance in export-related activities
Makes available information on different countries with its own credit
ratings
Makes it easy to obtain export finance from banks/financial
institutions
Assists exporters in recovering bad debts

Reference
Reserve Bank of India
http://dbie.rbi.org.in/DBIE/dbie.rbi?site=home

Department of Commerce
http://commerce.nic.in/

Thank You!
Questions Please