Mount Carmel School,AN, New Delhi by darKRomeo

1. INTERNATIONAL TRADE
IN
INDIA

2.  International trade is exchange of
capital, goods, and services across international
borders or territories. In most countries, it
represents a significant share of gross domestic
product (GDP). While international trade has been
present throughout much of history (see Silk
Road, Amber Road), its economic, social, and
political importance has been on the rise in
recent centuries.

3. Importance of International
Trade
 Without international trade, nations would be limited to the
goods and services produced within their own borders.
 International trade is the backbone of our
modern, commercial world, as producers in various nations try
to profit from an expanded market, rather than be limited to
selling within their own borders. There are many reasons that
trade across national borders occurs, including lower
production costs in one region versus another, specialized
industries, lack or surplus of natural resources and consumer
tastes.

4. Risks in international trade
 Buyer insolvency (purchaser cannot pay);
 Non-acceptance (buyer rejects goods as different from the
agreed upon specifications);
 Credit risk (allowing the buyer to take possession of goods
prior to payment);
 Regulatory risk (e.g., a change in rules that prevents the
transaction);
 Intervention (governmental action to prevent a transaction
being completed);
 Political risk (change in leadership interfering with
transactions or prices); and
 War and other uncontrollable events.
In addition, international trade also faces the risk of
unfavorable exchange rate movements

5. Trade and commerce have been the
backbone of the Indian economy right from
ancient times. Textiles and spices were the
first products to be exported by India. The
Indian trade scenario evolved gradually after
the country’s independence in 1947. From the
1950s to the late 1980s, the country followed
socialist policies, resulting in protectionism
and heavy regulations on foreign companies
conducting trade with India.

7. India’s major imports comprise of crude oil machinery, military
products, fertilizers, chemicals, gems, antiques and artworks.
Imported goods are divided into the following categories:
 Freely importable items: For these items, no import license is
required. They can be freely imported by an individual or a firm.
 Canalized items: These items can only be imported by public
sector firms. For example petroleum products fall under this
category.
 Prohibited items: Items such as unprocessed ivory, animal
rennet and tallow fat cannot be exported to India.

8. India's Import Performance (1999-2000 to 2003-04)
77237
566135158850056
61572
49799
37172
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
1999-2000 2000-01 2001-02 2002-03 2003-04
Years
US$million
All Commodities Petroleum crude & products Non-POL items

9.  Indian exports comprise mainly of
engineering and textile products, precious
stones, petroleum
products, jewelry, sugar, steel chemicals, zinc
and leather products. Most of the exported
goods are exempt from export duties.
 India also exports services to several
countries, primarily to the US. In fact, India is
among the world’s largest exporters of
services related to information and
communication technology (ICT). It is also
the key destination for business process

10. India's Export Performance (1999-2000 to 2003-04)
63623
47742
52856
4397644147
36760
29751
0
10000
20000
30000
40000
50000
60000
70000
1999-2000 2000-01 2001-02 2002-03 2003-04
Years
US$million
All Commodities Agricultural & allied products
Ores & minerals Manufactured goods
Petroleum & crude products

11. EXIM BANK
 Set up by an act of parliament in
September 1981
 Wholly owned by Government of India
 Commenced operations in march, 1982
 Established “for providing financial assistance
to exporters and importers, and for functioning
as the principal financial institution for
coordinating the working of institutions
engaged in financing export and import of goods
and services with a view to promoting the
country’s international trade…”

12. Where Does India Stand
Globally?
International Trade of Select Countries in 2003
Country Exports Imports GDP Trade as % of GDP
(US$ bn.) (US$ bn.) (US$ bn.)
Korea 197.6 175.5 605.0 61.7
China 438.3 393.6 1446.9 57.5
Mexico 165.4 171.0 626.1 53.7
Russia 135.9 75.4 433.5 48.7
South Africa 38.7 35.0 160.1 46.0
Argentina 29.4 13.1 129.7 32.8
Brazil 73.1 48.3 492.1 24.7
India 57.0 74.3 588.8 22.3
Source: Economist Intelligence Unit
 India’s share in global merchandise exports: 0.8% (2003)

14. THANK YOU
Made By:-
Shivansh Jagga