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Trade Policy Of India

Trade..?
Transfer of ownership of goods and services from one person or entity to another. * Barter * Commerce * Financial transaction A network that allows trade is called a market.

Trade

Policy.

Domestic Trade..

Domestic Trade Policy..


The major changes in Domestic Trade Policy were done in the year 1991 when NEW INDUSTRIAL POLICY (NIP) was implemented.

National Industrial Policy, 1991..


Change In Licensing Policy (DELICENSING). Public Sector Dereservation. Disinvestment of Public Sector. Liberalisation of Foreign Investment. Liberalisation of Foreign Technology. Changes in MRTP Act.

National Industrial Policy, 1991..


Liberalisation of Industrial Location. Abolition of phased manufacturing programme. Autonomy to public sector unit. Removal of Mandatory conversion clause.

After Effects..?
Indias Domestic Industries became self sustainable. *Liberalisation. *Privatisation. *Globalisation.

Change In The GDP And Production From 1995 to 2010..


5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0
Change in production (billion dollars) Change in production (percent)

1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1

2010 Doha

2005 India-EU FTA

2000 India-U.S. FTA

1995 India-China FTA

Foreign Trade..
Exchange of capital, goods, and services across international borders or territories. In most countries, it represents a significant share of gross domestic product (GDP).

Foreign Trade Policy..?


FTP is nothing but it defines what can be exported and what cannot? also what can be imported and what cannot?

Important Features Of FTP


It is declared by MINISTRY OF COMMERCE It is implemented by DGFT It is declared for the period of five years Before 1992 ,it was called EXIM POLICY, which was declared for a period of one year. BUT the trading community of India use to criticize it because of lack of consistency. SO FTDRA in 1992 decided to continue policy for 5 year for better consistency.

NOW FTP is governed under FOREIGN EXCHANGE MANAGEMENT ACT i.eFEMA,1992 wef 1/6/2000. BUT BEFORE FEMA IT WAS FERA,1973. FEMA IS BASICALLY FOR MANAGING THE FUND WHILE FERA WAS TO REGULATE THE FUND.

Indias Export Performance


India's Export Performance (1999-2000 to 2003-04)
70000 60000 50000
US$ million

52856 36760 44147 43976

63623 47742

40000 30000 20000 10000 0

29751

1999-2000

2000-01

2001-02 Years

2002-03

2003-04

All Commodities Ores & minerals Petroleum & crude products

Agricultural & allied products Manufactured goods

Indias Import Performance


India's Import Performance (1999-2000 to 2003-04)

90000 80000 70000


US$ millio n

77237 61572 49799 50056 51588 56613 All Commodities 37172 Petroleum crude & products Non-POL items

60000 50000 40000 30000 20000 10000 0

1999-2000

2000-01

2001-02 Years

2002-03

2003-04

Where Does India Stand Globally?


International Trade of Select Countries in 2003
Country Exports
(US$ bn.)

Imports
(US$ bn.)

GDP
(US$ bn.)

Trade as % of GDP 61.7 57.5 53.7 48.7 46.0 32.8 24.7 22.3

Korea 197.6 175.5 China 438.3 393.6 Mexico 165.4 171.0 Russia 135.9 75.4 South Africa 38.7 35.0 Argentina 29.4 13.1 Brazil 73.1 48.3 India 57.0 74.3 Source: Economist Intelligence Unit

605.0 1446.9 626.1 433.5 160.1 129.7 492.1 588.8

Indias share in global merchandise exports: 0.8% (2003)

CURRENT FOREIGN TRADE POICY:


THE PERIOD OF CURRENT FOREIGN TRADE POLICY IS FROM : 31/9/2009 TO 31/3/2014. DATE OF ANNOUNCEMENT OF POLICY WAS 27/8/2009.

Objective Of Current FTP


INDIAS FOREIGN TRADE POLICY 2009-14 1. To arrest and reverse declining trend of exports is the main aim of the policy. This aim will be reviewed after two years. 2. To Double Indias exports of goods and services by 2014. 3. To double Indias share in global merchandise trade by 2020 as a long term aim of this policy.Indias share in Global merchandise exports was 1.45% in 2008.

4. Simplification of the application procedure for availing various benefits. 5. To set in motion the strategies and policy measures which catalyse the growth of exports. 6. To encourage exports through a mix of measures including fiscal incentives, institutional changes, procedural rationalisation and efforts for enhance market access across the world and diversification of export markets.

TARGET OF FTP 2009-14


Export Target : $ 200 Billion for 2010-11

Growth Target: 15 % for next two year and 25 % thereafter.

Indias Trade with USA


20.0 13.7 11.4 9.4 10.0 5 5.0 7 11.7 18.8 17.3

15.0

USD Billion

0.0 2003 - 04 2004 - 05 2005 - 06 2006 - 07

Exports to US

Imports from US

Source: Department of Commerce, Govt of India

The Evolution of India-EU Trade


TRADE VALUE (BILLIONS, CONSTANT 35.00 2000 DOLLARS)
30.00

Exports (from India to EU)

Imports (from EU to India)

25.00

20.00

15.00

10.00

5.00

0.00 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Note: In 2004, the EU expanded from fifteen to twenty-five countries. Earlier data are for EU-15; post-2004 data are for EU-25. Source: United Nations, UN COMTRADE database.

The Evolution of India-China Trade


TRADE VALUE (BILLIONS, CONSTANT 2000 DOLLARS)

14.00

Exports (from India to China)


12.00

Imports (from China to India)

10.00

8.00

6.00

4.00

2.00

0.00 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Joint Efforts Of..

*Paul Jacob. *Jalpa Soneta. *Tirth Turakia. *Rohan Pujari. *Raunal Chopda.