Akhila Hebbar- 109 Anshika Singh- 114 Arun Xavier - 118 Deepali Deore -142

Definition:
The difference between the value of export of goods and the value of import of goods is defined as the Balance of Trade(BoT)
When Value of exports > Value of Imports, then BoT is

said to be favourable
When Value of exports <Value of Imports, then BoT is

said to be unfavourable

Foreign Trade since Independence:

The First Plan Period (1951-52 to 1955-56):
Exports(Rs Crores) 622 Imports (Rs Crores) 730 BoT (Rs Crores) - 108

Rise in imports due to: Pent up demand of war Shortage of food and Raw Material Rise in capital goods
Trade Deficit largely due to programmes of

industrialisation

Foreign Trade since Independence:

The Second Plan Period (1956-57 to 1960-61):
Exports(Rs Crores) 613 Imports (Rs Crores) 1080 BoT (Rs Crores) - 467

Massive Industrialisation Programme Foodgrains imports had to be resorted to overcome

internal shortages and rising prices

Foreign Trade since Independence:

The Third Plan Period (1961-62 to 1965-66):
Exports(Rs Crores) 747 Imports (Rs Crores) 1224 BoT (Rs Crores) - 477

Rapid Industrialisation Increase of Defence Needs Large Quantities of foodgrains imported

Foreign Trade since Independence:

The Fourth Plan Period (1966-67 to 1973-74):
Exports(Rs Crores) 1810 Imports (Rs Crores) 1973 BoT (Rs Crores) - 163

India Devalued Rupee by 36.5% in 1966 Better Crop Production during 1968-69 Favourable BoT for the 1st time in 1972-73(+104 crore)

Foreign Trade since Independence:

The Fifth Plan Period (1974 to 79):
Exports(Rs Crores) 4728 Imports (Rs Crores) 5538 BoT (Rs Crores) - 810

Hike in Oil Prices started in Oct 1973 High Import bills due to petroleum,fertilizers and

foodgrains Significant improvement in Exports 2nd Favourable BoT in1976-77(+69 crore) In 1978,Janata party followed a policy of haphazard import liberalisation

Foreign Trade since Independence:

The Sixth & Seventh Plan Period (1980 to 1990):
Plan Period 1980-85 Exports (Rs Crores) 8967 Imports (Rs Crores) 14683 BoT (Rs Crores) -5716

1986 -90

17382

25112

-7730

Increase in Price of Petroleum products by OPEC Govt. approached IMF for a huge loan in Nov 1981 Then, a slight decline in POL because: Global prices of oil ..downward trend Increased Production by ONGC

Foreign Trade since Independence:

The Eight and Ninth Period (1980 to 1990):
Plan Period 1992-97 Exports (Rs Crores) 86557 Imports (Rs Crores) 97609 BoT (Rs Crores) -11352

1997 -02

168400

204763

-36363

Liberalization Policy & Reduction of custom duties Slowdown in Indias Foreign Trade due to South East Asian Crisis Continued recession in Japan Economic crisis in Russia in 1998

Foreign Trade since Independence:

The Tenth Plan onwards
Plan Period Exports (Rs Crores) 255137 293637 375340 456418 571779 655864 Imports (Rs Crores) 297206 359108 501065 660409 840506 1012312 BoT (Rs Crores)

2002 - 03 2003 04 2004 05 2005 06 2006 07 2007 08

-36363 -65741 -125725 -203991 -268727 -356448

2008 - 09
2009 - 10

840752
784268

1374435
1237707

-533683
-453439

Widening Trade Deficit

India underestimated the impact of South East Asian

Crisis Increased Competition from China and Taiwan Exports of Textiles affected Failure of large industrial houses to boost exports Non Tariff barriers created by developed countries Use of Anti dumping duties by these countries have affected exports

Composition of Indias Foreign trade

Pattern of Imports:
Import

Bulk

Non Bulk

Petroleum Products

Cereals,Pulses,etc

Fertilizers, Iron & Steel,etc

Capital goods

Export Items

Composition of Indias Foreign trade

Structure of Indian Imports:
2000 01 (%) 1]Bulk Imports A)Petroleum, Crude & Products B)Bulk Consumption Goods 95095 71497 6593 (41.2) (31) (2.8) 2008 09(%) 627486 (45.6) 419967 22883 (30.6) (1.6)

C)Other Bulk Items

2] Non Bulk Imports A)Capital Goods B)Mainly Export Related Items C)Others 3] Total (1]+ 2])

17005
135778 40847 36815 58116 230873

(7.4)
(58.8) (17.7) (15.9)

184635
746949 330384 146860

(13.4)
(54.4) (24.1) (10.7) (19.6) (100)

(25.2) 269704 (100) 1374435

All figures in Rs. Crores

Composition of Indias Foreign trade

Pattern of Exports:

Export

Agriculture and Allied Products

Ores and Minerals

Manufactured goods

Mineral fuels and lubricants

Composition of Indias Foreign trade

Structure of Indian Exports:
1]Agriculture and Allied Products 2]Ores and Minerals 3] Manufactured Goods 4]Petroleum Products & Mineral fuel 5)Others 6] Total 2057 413 3747 28 465 6710 1980 - 81(%) (30.6) (6.2) (55.8) (0.4) (6.9) (100) 2008 09(%) 80648 (9.6) 35877 (4.3)

566402 (67.4) 123397 (14.6)

34428 (4.1) 840752 (100)

All figures in Rs. Crores

Exporting Countries

Importing Countries

Measures taken to Correct Deficit

Devaluation Cash Assistance Income Tax Concessions Import Concessions Convertibility of the Rupee Export- Import Bank

Challenges
External Factors: Low World Demand Restrictions on our goods entering foreign countries Competition from countries like China Internal Factors: Increasing Domestic Demand

THANK YOU!!!