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    Gopesh Virmani Mba (Ib) Roll No.-6

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    Gopesh Virmani
    The document discusses India's foreign trade history and policies. It notes that foreign trade is important for price equality, world peace, balance of payments, economic development, and consumer choice. India's foreign trade began in the late 19th century and was affected by World Wars and the Great Depression. Since independence, India has adopted a planning model and Five-Year Plans to guide foreign trade. Economic reforms in 1991 opened the economy and boosted foreign trade through policies like SEZs. The document outlines India's top export and import commodities and notes recent trends in merchandise trade values.

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    Gopesh Virmani Mba (Ib) Roll No.-6

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    Gopesh Virmani
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    The document discusses India's foreign trade history and policies. It notes that foreign trade is important for price equality, world peace, balance of payments, economic development, and consumer choice. India's foreign trade began in the late 19th century and was affected by World Wars and the Great Depression. Since independence, India has adopted a planning model and Five-Year Plans to guide foreign trade. Economic reforms in 1991 opened the economy and boosted foreign trade through policies like SEZs. The document outlines India's top export and import commodities and notes recent trends in merchandise trade values.

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    The document discusses India's foreign trade history and policies. It notes that foreign trade is important for price equality, world peace, balance of payments, economic development, and consumer choice. India's foreign trade began in the late 19th century and was affected by World Wars and the Great Depression. Since independence, India has adopted a planning model and Five-Year Plans to guide foreign trade. Economic reforms in 1991 opened the economy and boosted foreign trade through policies like SEZs. The document outlines India's top export and import commodities and notes recent trends in merchandise trade values.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    29 views16 pages

    Gopesh Virmani Mba (Ib) Roll No.-6

    Uploaded by

    Gopesh Virmani
    The document discusses India's foreign trade history and policies. It notes that foreign trade is important for price equality, world peace, balance of payments, economic development, and consumer choice. India's foreign trade began in the late 19th century and was affected by World Wars and the Great Depression. Since independence, India has adopted a planning model and Five-Year Plans to guide foreign trade. Economic reforms in 1991 opened the economy and boosted foreign trade through policies like SEZs. The document outlines India's top export and import commodities and notes recent trends in merchandise trade values.

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    © All Rights Reserved
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    of 16

    GOPESH VIRMANI

    MBA(IB)
    ROLL NO.-6
     Foreign trade refers to outflow of goods available in a country
    and inflow of goods required in a country. Generally each
    country is dependent on other countries to import goods
    which are either not available or are available in lesser
    quantity, so they export the goods present in abundance and
    import the goods needed. Foreign trade in India is
    administered by Ministry of commerce & Industry. Need of
    foreign trade:-
     EQUALITY OF PRICES.
     PROMOTES WORLD PEACE.
     MAINTAIN BALANCE OF PAYMENT.
     FACILITATE ECONOMIC DEVELOPMENT.
     BETTER CHOICES TO CONSUMERS.
     Foreign trade in India began in the period of the latter half of the 19th century. . In the First
    World War, India's foreign trade decelerated. After post-war period, India's exports
    increased because demand for raw materials was increased in all over world and there were
    elimination of war time restrictions. The imports also increased to satisfy the restricted
    demand. Records indicated that India's foreign trade was rigorously affected by the great
    depression of 1930s because of decrement in commodity prices, decline in consumer's
    purchasing power and unfair trade policies adopted by the colonial government.

     During the Second World War, India accomplished huge export surplus and accumulated
    substantial amount of real balances. The import requirements were outsized and export
    surpluses were lesser at the end of the war. Before independence, India's foreign trade was
    associated with a colonial and agricultural economy. Exports consisted of raw materials and
    plantation crops, while imports composed of light consumer merchandise and other
    manufactures. The raw materials were exported from India and finished products imported
    from the U.K. The production of final products were discouraged. For instance, cotton
    textiles, which were India's exports, accounted for the largest share of its imports during the
    British period. This resulted in the decline of Indian industries. Since last six decades, India's
    foreign trade has changed in terms of composition of commodities. The exports included
    array of conventional and non-traditional products while imports mostly consist of capital
    goods, petroleum products, raw materials, intermediates and chemicals to meet the ever
    increasing industrial demands.
     After India gained independence, a formal model of planning was
    adopted, and accordingly the Planning Commission, reporting directly
    to the Prime Minister of India was established, with prime minister
    Jawaharlal Nehru as the chairman. It was assigned the task of
    formulating plans for the most effective and balanced utilisation of
    resources and determining priorities. Since then the planning
    commission frames the centralized and integrated national economic
    programs at the interval of every five years, thereby known as the
    Five-Year Plans.

     SOURCE:- SEZ.NIC.IN
    LPG ACT
     A Balance of Payments crisis in 1991 pushed the country to near bankruptcy. In
    return for an IMF bailout, gold was transferred to London as collateral, the rupee
    devalued and economic reforms were forced upon India. That low point was the
    catalyst required to transform the economy through badly needed reforms to
    unshackle the economy. Controls started to be dismantled, tariffs, duties and
    taxes progressively lowered, state monopolies broken, the economy was opened
    to trade and investment. This gave a push to Foreign trade.
     The Special Economic Zone (SEZ) policy in India
    first came into inception on April 1, 2000. The
    prime objective was to enhance foreign
    investment and provide an internationally
    competitive and hassle free environment for
    exports. The idea was to promote exports from
    the country and realising the need that level
    playing field must be made available to the
    domestic enterprises and manufacturers to be
    competitive globally.
     India’s merchandise exports reached a
    level of US$ 262.29 billion during 2015-16
    (P) registering a negative growth of 15.48
    percent as compared to a negative growth
    of 1.29 per cent during the previous year.
    Despite the recent setback faced by India’s
    export sector due to global slowdown,
    merchandise exports recorded a compound
    annual growth rate (CAGR) of 8.45 percent
    from 2006-07 to 2015-16 (P).
     Exports recorded a positive growth of 0.15 per cent during April-October, 2016-17
    (P) over the corresponding period of the previous year in US$ terms. The
    merchandise exports have reached US$ 155.42 billion in April-October, 2016-17
     Plantation Crops
     Agriculture and Allied Products
     Marine Products
     Ores and Minerals
     Leather and Leather Manufactures
     Gems and Jewellery
     Sports Goods
     Chemicals and Related Products
     Plastic & Rubber Articles
     Paper & Related products
     Base Metals
     Optical, Medical & Surgical Instruments
     Electronic Items
     Machinery
     Textiles & Allied Products
     Petroleum Crude & Products
     Cumulative value of imports during April-October, 2016-17 was US$ 208.70 billion as against
    US$ 233.42 billion during the corresponding period of the previous year registering a
    negative growth of 10.59 per cent in US$ terms. Oil imports were valued at US$ 37.68 billion
    during April-October, 2016-17 (P) which was 14.86 per cent lower than oil import valued at
    US$ 44.26 billion in the corresponding period of previous year. Non-oil imports were valued
    at US$ 171.02 billion during April-October, 2016-17which was 9.59 per cent lower than non-
    oil imports of US$189.16 billion in previous year.
     Since the onset of global financial crisis, global economy is still struggling to revive and
    grow at a healthy rate. A large number of political and economic disturbances have been
    witnessed over the past one year, from uprisings in the Middle East, economic turmoil in
    Euro Area and Brexit. Volatility in commodity prices and general uncertainty has impacted
    business environment both mature and emerging markets. India is expected to grow at 7.6
    percent in FY2018, rising to 7.8 percent in FY 2019-20.Various reforms are expected to
    ease domestic supply bottlenecks and increase productivity. Infrastructure spending should
    improve the business environment and attract FDI.

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