International Trade

 Historical importance.

 Mutually benefit the countries.

 Opportunity for individual company.

 Source of economic revenue.

 Economic, social & political importance.

Factors Affecting International Trade

 Political environment

 Foreign Currency

 Taxes & quotas

 Cultural environment

 Geography

 Trade organizations & agreements

Impact on International Trade

 Industrialization.

 Globalization.

 Multi National corporations.

 Advanced transportation.

 Technology & Internet.

India’s International Trade

 Sluggish growth after independence.

 1991- Economic liberalization policy.

 Prominence of Indian Economy in the global market

India’s International Trade

 Help attract foreign investment.

 Cordial international relations.

 Political & social enviornment.

India’s Trading Partners

India’s Trade Basket

India’s International Trade:

2008-09
  Exports in August 2008- US$ 16.0 billion- growth of 26.9% (18.2% previous
year).

 Imports in August 2008- US$ 29.9 billion- increase of 51.2% (34.2%

previous year).

 POL imports during April-August 2008-

 US$ 46.1 billion- growth of 60% (17.9% previous year).

India’s International Trade:

2008-09

Items 2007-08 2008-09P

Exports 60.1 81.3

(19.3) (35.3)

Oil Exports* 4.7 9.0

(6.2) (91.5)

Non-Oil Exports* 26.0 39.1

(5.5) (50.3)

Imports 94.6 130.5

(34.2) (38.0)

Oil Imports 28.8 46.1

(17.9) (60.0)

Non-Oil Imports 65.8 84.5

(42.7) (28.3)

Trade Balance -34.6 -49.3

Oil Trade Balance* -12.3 -20.5

Non-Oil Trade Balance* -13.5 -9.0

* : Figures pertain to April-June

P: Provisional
Note : All figures in US$ billion. Figures in parentheses show percentage change over the
previous year.
Source : DGCI & S
India’s Export: 2008-09

(Percentage Shares)

Commodity Group 2006-07 2007-08 2008

Primary products 15.6 17 16.2

1. Agriculture and

allied products 10.0 11.4 11.4

2. Ores and minerals 5.5 5.7 4.8

Manufactured goods 67.2 63.6 58.3

1. Leather and

manufactures 2.4 2.2 1.8

2. Chemicals and

related products 13.7 12.9 11.4

3. Engineering goods 23.4 23.1 24.1

4. Textile and textile

products 13.7 12.0 10.4

5. Gems and jewellery 12.6 12.4 9.7

Petroleum products 14.8 15.6 18.7

Others 2.4 3.8 6.8

Total exports 100.0 100.0 100.0

Source: Compiled from DGCI & S data.

Services Trade

 Services trade shares about 9% of GDP.

 Services export growing much faster than world services exports; In 2000-
2006-

India: 38.22%, World: 12.84%.

 Services trade contributes about 2.64% of world services trade.

Services Trade
Service Exports
Service Imports

Conclusion

 Significant contribution to growth of economy.

 Creation of foreign currency pool.

 Local factors- political interests, culture & values

 Oil imports & unstable oil prices- negative trade balance.