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MUKESH AMBANI

GROUP-4
• Cherry Agarwal
• Deepali Kumari
• Karishma Manohar
• Lakshminarayan M
• Rahul Palrecha
• Ramya S
• Ritika Singh
• Sikandar
• Sujata Phukan
• Vikender Singh
Emergence of India in
the global trade scene
International trade
• It’s the exchange of goods & services across
national borders. In most countries, it
represents a significant part of GDP.
• Its economic, social & political importance
have increased in recent centuries, mainly
because of Industrialization, advanced
transportation, globalization, multinational
corporations & outsourcing.
HOW TO INCREASE GLOBAL TRADE

• Mergers and Acquisition

• Foreign Direct Investment

• Joint Venture

• Investment made by NRI


• Investment made by Indian nations to abroad
India Goes Global

 Tata Steel acquired UK based


Corus for $ 8 billion.
 Suzlon Energy Ltd acquired
German firm Repower Systems
AG for $ 1.7 billion.
 United Spirits bought Scotch
whisky distiller Whyte & Mackay
for US $1.11 billion
 Hindalco acquired Novelis for
$ 6 billion
INDIA GOES GLOBAL
 TATA Chemical acquires US based Soda Ash Maker
General Industrial Products for $ 1 billion
 Indian shipping company Great Offshore acquires UK
based Sea Dragon for US$ 1.4 billion
 Essar Energy acquires 50% stake in Kenya Petroleum
refineries ltd.
 Banswara Syntex to acquire France firm Carreman Michel
Thierry for around US$ 125 million
Increase in M& A
700

600

500

400
N o. of Deals
300 Amount (USD million)
200

100

0
2006 2007
India’s Direct Investment Abroad
Source: RBI
Data on Overseas Direct Investments
S.no. Country Outflow 2006-2007
(In US$ Million)
1. US 313.379
2 Canada 397.772
3 China 3.176
4 Netherlands 1005.518
5 Czech Republic 26.008
6 Italy 7.104
7 Germany 22.858
8 France 0.693
9 Portugal 0
10 Poland 0.454
11 Hungary 0
Graphical representation of Indian
outbound deals since 2000.
INDIA’S FOREIGN TRADE POLICY 2009-14

1. To arrest and reverse declining trend of


OBJECTIVES exports is the main aim of the policy. This aim
will be reviewed after two years.

2. To Double India's exports of goods and


services by 2014.

3. To double India's share in global


merchandise trade by 2020 as a long term aim
of this policy.India's share in Global
merchandise exports was 1.45% in 2008.
INDIA’S OBJECTIVES FOR GLOBAL TRADE

The policy aims at developing export


potential, improving export performance,
boosting foreign trade and earning
valuable foreign exchange. FTP assumes
great significance this year as India's
exports have been battered by the global
recession.

A fall in exports has led to the closure of


several small- and medium-scale export-
oriented units, resulting in large-scale
unemployment.
Food Processing Sector in India
India has huge supply advantages due to diverse
agro-climatic conditions and wide ranging raw
material base…
• 52% cultivable land
• Largest livestock
compared to 11%
population
world average

• All 15 major
• Largest producer of
climates in the
milk
world exist in India

• 46 out of 60 soil • Largest producer Significant Opportunity


types exist in India cereals
India as a global sourcing hub
• Second-largest fruit
• 20 agri-climatic
and vegetable
regions
producer
• Sunshine hours and
day length are • Among the top five producers worldwide
ideally suited for of rice, wheat, groundnuts, tea, coffee,
round the year tobacco, spices, sugar and oilseeds.
cultivation

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Supported by a committed government in
improving the food trade and providing a
conducive atmosphere for agriculture, India is a
net exporter of agricultural products. …
India’s Position in Global Trade

• India stands a distant 21st for the year 2007, with a 1.4%
share in the global trade.

• During the period 1980-2007, India’s share in the global


exports have increased from 1.1% to just 1.4%, the
majority of the increase happening in this decade.

• However, Export of Processed Food and Beverages is


growing faster than the overall Food and Beverages…

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INDIA TRADE PERFORMANCE
• BOTH EXPORTS AND IMPORTS HAVE GROWTH
CONSIDERABLY
• EXPECT FOR TWO YEARS (1972-1973) IN ALL
THA YEARS SINCE 1951 IMPORTS WERE
LARGER THAN EXPORTS
• THE EXPORT PERFORMANCE OF INDIA WAS
VERY POOR IN COMPARISON WITH OTHER
COUNTRIES IN GENERAL
HIGHLIGHTS OF INDIA’S TRADE
PERFORMANCE

• The share of India in the total world exports fell from about 2% in
1950 to 0.4% in 1980. since the mid eighties there has, however
been some improvements
• India was 13th largest exporter in 1950 ,but there are more than 2
dozen countries above India now.
• The terms of trade has, on the whole been favorable to India (there
was a deterioration for several years due to the oil price hike, and in
some years prior to that and after that)
INDIA’S export target

Export Target : $ 200 Billion for


2010-11

Export Growth Target: 15 % for


next two year and 25 % thereafter.
DEPARTMENT OF COMMERCE
ECONOMIC DIVISION

EXPORTS & IMPORTS : (PROVISIONAL)


(US $ Million)
  AUG APRIL-AUG
EXPORTS (including re-exports)
2009-2010 13586 66326
2010-2011 16644 85273
%Growth 2010-2011/ 2009-2010 22.5 28.6

IMPORTS
2009-2010 22449 106605
2010-2011 29679 141894
%Growth 2010-2011/ 2009-2010 32.2 33.1

TRADE BALANCE
2009-2010 -8862 -40279
2010-2011 -13035 -56620
 
INDIA TRADE: EXPORTS

Indian trade was impacted by the global


recession of 2007-2009.
Indian exports fell from $200.9 billion in
2008 to $165 billion in 2009. India ranked
22nd in the world in terms of export
volume.
Thank You!!!

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