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Trade

DOMESTIC TRADE : Performing business transactions with in the boundaries of a nation . ( Internal Trade or Home Trade ) Basis of similar Political , Economic and Social conditions .

INTERNATIONAL TRADE : Performing business transactions outside the national borders with different nations . International Trade is considered the Engine of Growth .

Geographic expansion as a growth strategy The adventurous spirit of the younger generation Corporate ambition Technology advantage Building a corporate image Incentives and business impact New business opportunities

REASONS TO ENTER INTERNATIONAL TRADE

From Government Angle


Earning valuable foreign exchange Interdependency of nations Diplomatic relations Core competency of nations Investment for infrastructure National image Foreign trade policy and targets

Import of Necessary Goods Maintaining stability in the prices of goods Industrial Development Meeting Emergencies Advantage of Mobility of Capital Expansion of Market for Goods

International Co - operation Achievement of Specialization in Production Efficient use of Resources Technology Transfer Control of Monopoly Maximization of Production

Features of Indias Foreign Trade

Exports and Imports of India


Indias Exports refers to the sale of goods and services by India to other Nations of the World . British era changes Post Independence Period

Year

Gross Domestic Product 842,210

Exports

Imports

US Dollar Exchange (Rs) 8.39

Inflation Index 2000=100

Per Capita Income (as % of USA) 2.18

1975

1980

1,380,334

90,290

135,960

7.86

18

2.08

1985

2,729,350

149,510

217,540

12.36

28

1.60

1990

5,542,706

406,350

486,980

17.50

42

1.56

1995

11,571,882 1,307,330

1,449,530

32.42

69

1.32

2000

20,791,898 2,781,260

2,975,230

44.94

100

1.26

Year

Gross Domestic Product

Exports

Imports

US Dollar Exchang e

Per Inflation Capita Index Income (2000=1 (as % of 00) USA)

2000

44.94 20,791,898 2,781,260 2,975,230 Indian 100 Rupees 44.09 Indian 121 Rupees 45.83 Indian 126 Rupees

1.26

2005

34,195,278

1.64

2010

66,911,800

Slow Growth in Exports Shortage of Supplies and Inadequate Export Surpluses Lack of New Technology Goods Low quality of Indian Goods High cost of Production Low Competitive Strength

Low Productivity of Indian Industries Limited Foreign Investment and Collaborations in Export sector Inadequate transportation and shipping facilities Tariffs and Quotas imposed by Developed Countries

Composition of Exports
The type of goods and services exported by the country . Increase in Manufactured Items Traditional Goods V/s Manufactured Goods >
Unconventional Goods like Chemicals , Machinery , Transport Equipment's 1960-61 43 % 2009-10 63.6 %

Broad Based Expansion Increase in Export of Engineering goods , Iron & Steel , Iron Ore , Chemicals , Sugar 50 Items in the Export List , Today there are more than 3000 Items included in the Export list .

Main Items of Exports


Primary Commodities
Manufactured Goods

Services

Direction of Indias Exports

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