Presentation by : Khyati joshi

MAM 5th Sem.

CONTENT
Introduction
What is international trade?

Why do we follow foreign trade?

What are the reasons of foreign trade?

How will it helps to the country?

Growth.
THERE ARE FIVE DISTINCT PHASES IN INDIAS TRADE
POLICY:

A. During the first phase 1947-48 to 1951-52 India could

have liberalized import on account of the restrictions
placed by the UK.

B. During second phase 1952-53 t0 1956-57 liberalization of

foreign trade was adopted as the goal of trade policy.

C. During third phase 1957-58 to 1966 the trade policy was

reoriented to meet the requirement of planned economic
development.

D. The fourth phase started after devaluation of the rupee

in June 1966 and continued till 1975-76.
E. During the last phase 1975-1976 onwards the
government adopted a policy of import
liberalization with view to encourage export
promotion.

The EXIM policies were six monthly till

1966 when the tenure become annual from 1985
onwards, they became three yearly and since
1992 they were made five yearly to coincide
with five year plan. The name was also changed
from import and export policy to EXIM policy
in 1992 to underline the importance of exports.
 ANALYSIS OF TRADE POLICY : 2015 TO
2020
A.SIMPLIFICATION & MERGER OF
REWARD SCHEMES
1. Merchandise Exports from India Scheme (MEIS):
2. Service Exports from India Scheme (SEIS):
3. Incentives (MEIS & SEIS) to be available for SEZs:
4. Duty credit scrips to be freely transferable and
usable for payment of custom duty, excise duty and service tax:
5. Status Holders:

B. BOOST TO MAKE IN INDIA:

1. Reduced Export Obligation (EO) for domestic procurement under EPC
scheme
2. Higher level of rewards under MEIS for export items with high domestic
content and value addition.
3. Online filing of documents/ applications and Paperless trade in 247
environment:
4. Online inter-ministerial consultations:
5. Simplification of procedures /processes, digitization and e-governance:
COMPOSITION OF FOREIGN
TRADE

Commodity that mostly used in export and

import.
VALUE/VOLUME OF INDIAS TRADE

The Indian rupee is the only

legal tender in India, and is also
accepted as legal tender in the
neighbouring Nepal and Bhutan,
both of which peg their currency
to that of the Indian rupee.
The rupee was linked to the British pound
from 1927 to 1946 and then the U.S. dollar till
1975 through a fixed exchange rate. It was
devalued in September 1975 and the system of
fixed par rate was replaced with a basket of four
major international currencies the British
pound, the U.S. dollar, the Japanese yen and the
Deutsche mark.

After the sharp devaluation in 1991 and

transition to current account convertibility in
1994, the value of the rupee is largely
determined by the market forces. The rupee has
been fairly stable during the decade 2000 to
2010. In September 2013, the rupee touched an
all-time low 68.27 to the U.S. dollar
 INR per US$
Year
(average annual)[250]
1975 9.4058
1980 7.8800
1985 12.3640
1990 17.4992
1995 32.4198
2000 44.9401
2005 44.1000
2010 45.7393
2013 58.5515
2014 61.4000
2015 64.05
DIRECTION OF INDIAS FOREIGN
TRADE

Direction of foreign trade means the

countries to which India exports its
goods and the countries from which it
imports. Thus direction consists of
destination of exports and sources of our
imports. Prior to our Independence
when India was under British rule,
much of our trade was done with
Britain.
Therefore, UK used to hold the first position in Indias
foreign trade. However, after Independence, new trade
relationships were established. Now USA has emerged as
the most important trading partner followed by Germany,
Japan and UK. India is also making efforts to increase the
exports to other countries also the direction of Indias
exports and imports.
SHARE OF MAJOR DESTINATIONS OF INDIAS EXPORTS
AND SOURCES OF IMPORTS DURING 2009-10 (APRIL-
SEPTEMBER) ARE GIVEN IN FIGURE RESPECTIVELY:
 During the period 2009-10 (April-September), the
share of Asia and ASEAN region comprising South
Asia, East Asia, Mid-Eastern and Gulf countries
accounted for 55.0 per cent of Indias total exports.
The share of Europe and America in Indias exports
stood at 21.4 per cent and 15.3 per cent respectively
of which EU countries (27) comprises 20.0 per cent.

During the period United Arab Emirates (14.4

per cent) has been the most important country of
export destination followed by U.S.A. (11.5 per
cent), China (5.1 per cent), Hong Kong (4.5 per
cent), Singapore (4.3 per cent), Netherlands (3.7
per cent), U.K. (3.7 per cent), Germany (3.1 per
cent), Saudi Arabia (2.7 per cent) and Belgium
(2.1 per cent).
Asia and ASEAN accounted for 61.3 per cent of Indias total
imports during the period followed by Europe (19.1 per cent)
and America (9.4 per cent). Among individual countries the
share of China stood highest at (12.0 per cent) followed by
U.S.A. (6.0 per cent), U.A.E. (6.0 per cent), Saudi Arabia (5.5 per
cent), Iran (4.5 per cent), Switzerland (4.4 per cent), Germany
(3.8 per cent), Kuwait (2.9 per cent), Nigeria (2.5 per cent), and
Iraq (2.3 per cent).
Import of Sensitive Items
during April 09-September 09:

The total import of sensitive items for the period

April-September 2009- 10 has been Rs 29,256.29 cr.
as compared to Rs 21,186.61 cr. during the
corresponding period of last year thereby showing
an increase of 38.1%. The gross import of all
commodities during same period of current year
was Rs 7, 90,644 cr. as compared to Rs 6, 05,075 cr.
during the same period of last year. Thus import of
sensitive items constitutes 2.7% and 4.8% of the
gross imports during last year and current year
respectively.
 Imports of automobiles, cotton and silk,
products of SSI alcoholic beverages and food
grains have shown a decline at broad group
level during the period. Imports of all other
items, viz., edible oil, pulses, fruits and
vegetables (including nuts), rubber, spices,
marble and granite, tea and coffee, and milk
and milk products have shown increase
during the period under reference.
Imports of sensitive items from
Indonesia, Myanmar, Brazil,
Malaysia, United States of America,
Japan, Canada, Ukraine, Argentina,
Australia, Benin, Guinea Bissau, etc.,
have gone-up while those from China
PRP, Korea RP, Germany, Thailand,
Cote D Ivoire, Czech Republic, etc.,
have shown a decrease