Introduction

All countries need goods and services to satisfy wants

of their people No country can produce all the goods and services that it requires. It has to buy from other countries what it cannot produce or can produce less than its requirements. Similarly, it sells to other countries the goods which it has in surplus quantities. India too, buys from and sells to other countries various types of goods and services.

Meaning of Foreign Trade

Each country tries to increase the availability of goods

and services to its people through purchase from other countries. Buying of goods from other countries is called import .

Each country tries to sell its surplus production to

other countries. selling of goods to other countries is called export.

Importance of Exports
Help in growth of the economy

Exports help in increasing production

Exports helps in employment and income

generation Expansion of related industries Overall increase in demand for other goods Better utilization of resources Source of Foreign Exchange

Composition of Exports
Composition of exports means goods that we are selling to

other countries.
At time of Independence, our exports consisted mainly of

agricultural products like tea, spices, tobacco and other raw materials etc. We were also exporting cotton textiles and jute products in large quantities.
With the industrialization of the economy, compositions

of exports have undergone a change.

India Exports: November 2011

Exports during November, 2011 were valued at

Rs.113519.82 Crore which was 17.34 per cent higher than the level of Rs. 96742.01 during November, 2010.

Cumulative value of exports for the period April-

November 2011-12 was Rs 893094.16 crore as against Rs.661055.88 crore registering a growth of 35.10 per cent in Rupee terms over the same period last year.

EXPORTS in Rs Crore November Exports 2010 - 11 2011 - 12 96742.01 113519.82 661055.88 893094.16 April - November

% Growth 2011-12/2010-11

17.34

35.10

Composition of Indias Exports (April-September 2010 and April-September 2011)

Commodity Apr-Sep 2010 Apr-Sep 2011(P) %Growth %Share

A) PLANTATION
B) AGRI & ALLIED PRODUCTS C) MARINE PRODUCTS D) ORES & MINERALS E) LEATHER & MNFRS F) GEMS & JEWELLERY G) SPORTS GOODS

2,752.44
31,071.43 4,950.60 20,807.26 8,437.12 69,225.78 401.33

3,959.41
50,744.53 7,150.03 18,377.01 10,551.71 107,744.35 429.81

43.85
63.32 44.43 -11.68 25.06 55.64 7.10

0.59
7.58 1.07 2.75 1.58 16.10 0.06

Total

484,687.11

669,120.35

38.05

100.00

Plantation Crops
Export of plantation crops during 2010-11 (AprilSep),

increased by 28.1 per cent in US$ terms compared with the corresponding period of the previous year.
Export of Coffee registered a growth of 43.2 per cent,

the value increasing from US$ 193.4 million to US$ 277 million.
Export of Tea also increased by 17.0 per cent.

Agriculture and Allied Products

Agriculture and Allied Products as a group include

cereals, pulses, tobacco, spices, nuts and seeds, oil meals, castor oil, sugar, processed food, meat & meat products, etc.
During 2010-11 (AprilSeptember), exports of

commodities under this group registered a growth of 15.6 per cent with the value of exports going up from US$5,846 million in the previous year to US$ 6,756 million during the current year.

Ores and Minerals

Exports of ores and minerals were estimated at US$

4,410 million during 2010-11 (April-September) registering a growth of 34.5 per cent over the same period of the previous year.
Coal has a negative growth of 43.
of Mica has registered growth of 78 per cent.

Leather and Leather Manufactures

Export of leather and leather manufactures recorded a

growth of 14 per cent during 2010-11 (April-September).

The value of exports increased to US$ 1,833.4 million from

US$ 1,611.2 million during the same period of the previous year.
Exports of leather and manufactures have registered a

growth of 15.6 per cent and Leather Footwear also registered a growth of 11.7 per cent.

Gems and Jewellery

The export of gems and jewellery during 2010-11 (April-

September) increased to US$ 15,664 million from US$ 13,757 million during the corresponding period of last year showing a growth of 13.9 per cent.

Direction of Foreign Trade

Direction of Foreign Trade means the countries to which India

exports its goods and the countries from which it imports.

direction consists of destination of our exports and sources of

our imports.
Prior to our Independence when we were under British rule,

much of our trade was done by Britain.

However, after independence, new trade relationships were

established
At present India is exporting to 233 countries in the world and

Government is making efforts to increase our exports to other countries also.

Top 20 countries to which India exports

No. 1. 2. 3. 4. 5. 6. 7. 8. 9. Country U ARAB EMTS USA CHINA P RP HONG KONG SINGAPORE NETHERLAND UK GERMANY BELGIUM

2009-2010
11,334,791.85 9,241,651.34 5,471,392.87 3,730,053.40 3,594,829.70 3,030,093.80 2,947,631.02 2,563,293.28 1,775,704.94 1,460,463.91

%Share
13.4055 10.9300 6.4709 4.4115 4.2516 3.5836 3.4861 3.0316 2.1001 1.7273

2010-2011

%Share

%Growt h
37.86 25.91 62.54 26.22 30.48 16.46 10.33 19.98 61.45 94.37

15,625,652.96 13.6749 11,636,247.86 10.1836 8,893,260.30 4,708,195.04 4,690,605.33 3,528,741.43 3,252,144.69 3,075,559.76 2,866,788.50 2,838,765.89 7.7830 4.1204 4.1050 3.0882 2.8461 2.6916 2.5089 2.4844

10. INDONESIA

11. 12. 13.

SAUDI ARAB JAPAN FRANCE

1,855,230.35 1,714,278.60 1,799,941.28

2.1942 2.0275 2.1288

2,375,536.74 2,363,046.60 2,305,012.94

2.0790 2.0680 2.0173

28.05 37.84 28.06

14.
15. 16. 17. 18. 19. 20.

ITALY
KOREA RP SRI LANKA DSR SOUTH AFRICA BRAZIL MALAYSIA BANGLADESH PR

1,607,224.74
1,612,681.15 1,028,960.86 975,125.38 1,136,483.36 1,350,392.32 1,150,106.83

1.9008
1.9073 1.2169 1.1533 1.3441 1.5971 1.3602

2,069,004.89
1,882,670.38 1,836,181.99 1,821,472.69 1,809,606.89 1,806,659.10 1,638,536.39

1.8107
1.6476 1.6070 1.5941 1.5837 1.5811 1.4340

28.73
16.74 78.45 86.79 59.23 33.79 42.47

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