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Recent Trends in Indian Foreign trade

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Introduction

THE ROBERT GORDON UNIVERSITY ABERDEEN INTERNATIONAL TRADE ORAGANISATONS COURSE WORK LECTURER: Paul Arnell SUBMITTED BY Anoop Joginapell MATRICULATION NUMBER: 0110252 MSc INTERNATIONAL TRADE ABERDEEN BUSINESS SCHOOL NOVENBER, 2003 TABLE OF CONTENTS PAGES 1.0 Introduction 3 2.0 Scope of International Trade 3 3.0 Characteristics of International Trade 3 4.0 Recent Trends in Indian Foreign Trade 4 5.0 Table- Indian Foreign Trade 5 > First Five Year plan (1951-56) > The second five years plan (1956-1960) > The Third Five-Years Plan (1961-1965) > Fourth plan period (1969-70 to 1973-74) > Fifth plan period (1974-75 to 1978-79) > Sixth plan (1979-80 to 1983-84) > Seventh plan (1984-90) 6.0 Table-Trade balance during sixth plan 7 7.0 Indian foreign trade gown down during (1951-2002) 8 8.0 Table-Direction of Indian's Trade 9 9.0 Critical view of Indian economic Liberalisation 10 10.0 India's concern over World Trade and WTO 11 11.0 Conclusion 11 12.0 References 12 Recent Trends in Indian Foreign trade INTODUCTION: Hess and cateor defines international trade as "the performance of business activities that direct the flow of the goods and services to customers or users in more then one nation." Marketing is a human activity directed at satisfying needs and wants through exchange process. Marketing try to actualise potential exchange for the purpose of satisfying human needs and wants. International national marketing is a part of the total marketing process. It refers to the marketing activities carried on by a marketer in more then one nation. It may be defined as "marketing carried on across national boundaries." Marketing activities, i.e., buying ,selling, transportation, storage and warehousing , financing risk baring, pricing, standardising, advertising and sales promotion exc. May be called as international trade when performed in foreign markets across the national border.(Balu,V.2000). Scope of international trade: 1). Opening a branch: International trade involves opening a branch in foreign market for processing. Packing or assembling the products as per the needs of the markets. ...read more.

Middle

There is no export surplus due to: a).High utilisation of exportable agricultural produces as raw materials in the domestic manufacturing industries. b).Increased consumption of manufactured goods in home market due to increased income of the people. c).Widespread demand of agricultural and manufactured goods due to increase in population. (The India journal of commerce.2002). 4).During fourth plan period (1969-70 to 1973-74): The imports have increased to 1972 crores whereas it was at Rs.1925 at the beginning of fourth plan. The exports also increased to Rs.1810 crores from rs.1236 crores at the beginning mainly due to: a). India's capacity to manufacture much more than what she needed. b).general sluggishness of economy. (Southern Economist.2002). 5).During fifth plan period (1974-75 to 1978-79) The average annual imports have increased from Rs.1972 crores to Rs.5540 crores. The main reason for this sharp increase was the hike in international oil prices which led to a substantial increase in the import bill for petroleum products and fertilisers. Other factors were relaxation in restriction on imports of capital goods and equipment and liberal imports of edible oils to hold up price line etc.The year 1976-77 was the best when there was a favourable trade balance to the tune of Rs.72 crores second time favourable balance of trade since independence. This was due to substantial increase in the exports of non-traditional items. (Third Concept.2000). ]6).During the sixth plan (1979-80 to 1983-84) In this period the imports and exports have increased sharply. The cost of imports had increased due to further hike in oil prices by OPEC countries. The imports and export figures for the period have been shown in the following table: Table-Trade balance during sixth Plan Year Imports Exports Balance of Trade Rs. Rs. Rs. 1979-80 9,143 6,418 -2725 1980-81 12,549 6,711 -5838 1981-82 13,608 7,806 -5802 1982-83 14,356 8,908 -5448 1983-84 15,763 9,872 -5891 Source: Commerce dated July 6, 1985. *Figures partially reviewed. ...read more.

Conclusion

That was the beginning of a fairly successful track record to GATT which till WTO was formed in 1994, conducted eight so-called "rounds" to substantially free the manufacturing trade. Since than the focus has been expended solely from tariffs on manufactures to include anti-dumping measures, non -tariff measures and subsidies. The number of countries which have joined the GATT/WTO has continued to rise. From the founding members numbering, 23 including India, row the number has raised to 134 and an additional 32 are waiting for admission. With the exception of China which ranks the tenth largest trading nation, every major country is a number of WTO. (Balu, V.2002). The major areas of concern for India by WTO are: 1).The success of maintainability of Quantitative restrictions on imports and exports. 2).Opening of agriculture and services sector. 3).Intellectual property Rights. 4).Anti Dumping and Subsidy measures. 5).new forms of Non-tariff measures, such as environment social clause. (Balu, V.2002). Conclusion: India has a prior development and sufficiently broad-based infrastructurer, which can provide a positive and self -reinforcing response to the stimulus it receives from foreign trade. The economic growth in the exports trade is continuously increasing though still is very low as compared to other western countries. India should increase its share in the world exports. The developing countries like India need imports of capital equipments, raw material of critical nature, technical know-how for building the industrial base in the country for rapid industrialisation and developing the necessary infrastructure. The oil import in India is much higher and its imports cannot be avoided as it is required as means energy to run industries. To improve the situation, India has to establish the export oriented industries and to increase the existing installed capacity of units producing goods for export markets. All industries must be encouraged to utilise their unutilised capacity and export the surplus production. Therefore, exports have to be improved in order to meet the import requirements of a country because by exporting the surplus or additional production, a country can also earn valuable foreign exchange. ...read more.

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