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ECONOMICS
Introduction


      IMPORT
      •Goods & Services consumed in one country
       which has been bought from another country

      EXPORT
      • Goods and services that are produced
        domestically and sold to buyers in another
        country
Balance of Trade




  It represents a difference in value for
      import and export for a country
Balance of Trade

  A country has demand for an import when
   domestic quantity demanded exceeds
   domestic quantity supplied,
  Else when the price of the good (or service)
   on the world market is less than the price on
   the domestic market

  NX = X − I, where NX represents Balance of
   Trade, X is Exports and I is Imports
As in 2010
Ministry of Commerce & Industry



     Directorate General of Foreign
     Trade


         Central Board of Excises
         Customs
As in 2010

    India has identified 16 sectors where we believe
    there are real opportunities for Foreign companies

     Aerospace (Civil)
     Automotive
     Agri-business (incl. Food & Drink)
     Biotechnology & Pharmaceuticals
     Construction (incl. Sports & Leisure Infrastructure)
     Creative & Media
     Education, Skills & Leisure
As in 2010

     Engineering (incl. Mining, Metals & Metallurgical
      Process Industries)
     Financial & Legal Services
     Healthcare & Medical
     ICT - Software/Computer Services & Residual
      Electronics and Communications
     Oil & Gas (incl. Petro & Non-petrochemicals)
     Power
     Transport (incl. Airports, Ports, Railways and
      Security)
     Water
Software, Engg goods

               Agricultural products
 Major
Exported        Textile goods, Chemicals
 Goods
               Leather manufactures

           Gems and Jewellery
Crude oil

               Electronics & Electrical
  Major        goods
Imported        Several Commodities,
                Machinery
 Goods
                Medicine & medical
                equipment
           Aircraft spare parts
Main Export Partners
                   Countries


           China                 US
           5.09%               12.59%




               UAE
              12.87%
Main Import Partners


                             Germany
                                        China
                 Singapore     10%
                                         26%
                    10%
    Iran
    10%


           UAE                                  Saudi Arabia
           12%                                     17%
                                   US
                                  15%
EPCG Scheme

  Export Promotion Capital Goods

  Allow import of capital goods for pre-
   production, production and post-production
   at 5% CD

  Relaxation in… Units pertaining to agro, SSI,
   BIFR etc
3
                         Special Economic Zone
                2
              Free Trade and Warehousing Zone
  1           Scheme

Export Oriented Unit Scheme
Where India Stands Today

  India has one of the fastest growing economies
   in the world

  India's share in the global trade, including trade
   in merchandise and services sector, has
   increased from 1.5% in 2006 & 2% in 2009 &
   will cross the 2.5% in 2012

  Foreign trade, as a percentage of GDP (in rupee
   terms) was over ~24% in 2010
Import Export Market in India

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Import Export Market in India

  • 2. Introduction IMPORT •Goods & Services consumed in one country which has been bought from another country EXPORT • Goods and services that are produced domestically and sold to buyers in another country
  • 3. Balance of Trade It represents a difference in value for import and export for a country
  • 4. Balance of Trade A country has demand for an import when domestic quantity demanded exceeds domestic quantity supplied, Else when the price of the good (or service) on the world market is less than the price on the domestic market NX = X − I, where NX represents Balance of Trade, X is Exports and I is Imports
  • 6. Ministry of Commerce & Industry Directorate General of Foreign Trade Central Board of Excises Customs
  • 7. As in 2010 India has identified 16 sectors where we believe there are real opportunities for Foreign companies  Aerospace (Civil)  Automotive  Agri-business (incl. Food & Drink)  Biotechnology & Pharmaceuticals  Construction (incl. Sports & Leisure Infrastructure)  Creative & Media  Education, Skills & Leisure
  • 8. As in 2010  Engineering (incl. Mining, Metals & Metallurgical Process Industries)  Financial & Legal Services  Healthcare & Medical  ICT - Software/Computer Services & Residual Electronics and Communications  Oil & Gas (incl. Petro & Non-petrochemicals)  Power  Transport (incl. Airports, Ports, Railways and Security)  Water
  • 9. Software, Engg goods Agricultural products Major Exported Textile goods, Chemicals Goods Leather manufactures Gems and Jewellery
  • 10. Crude oil Electronics & Electrical Major goods Imported Several Commodities, Machinery Goods Medicine & medical equipment Aircraft spare parts
  • 11. Main Export Partners Countries China US 5.09% 12.59% UAE 12.87%
  • 12. Main Import Partners Germany China Singapore 10% 26% 10% Iran 10% UAE Saudi Arabia 12% 17% US 15%
  • 13. EPCG Scheme Export Promotion Capital Goods Allow import of capital goods for pre- production, production and post-production at 5% CD Relaxation in… Units pertaining to agro, SSI, BIFR etc
  • 14. 3 Special Economic Zone 2 Free Trade and Warehousing Zone 1 Scheme Export Oriented Unit Scheme
  • 15. Where India Stands Today India has one of the fastest growing economies in the world India's share in the global trade, including trade in merchandise and services sector, has increased from 1.5% in 2006 & 2% in 2009 & will cross the 2.5% in 2012 Foreign trade, as a percentage of GDP (in rupee terms) was over ~24% in 2010