REPORT:-

ON
MACRO ECONOMICS
TOPIC:-
IMPACT OF IMPORT AND EXPORT

Made by:-

Jaypalsinh rayjada
Tejas Barve
Sulay sheth
Mansi mehta
Jalpa thakkar

A report submitted in partial fulfillment of the requirements of MBA Program

1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90

export 8704 9107 9449 9878 8904 9745 12089 13970 16612
import 15174 14787 15311 14412 16067 15727 17156 19497 21219

Industrial production increase by 8% with compare to 4% in 1980-81. There has been marked
improvement in power generation, coal production, steel output and freight carried by railway.
 Industrial growth – the improvement in labor relation has been an important factor in higher industrial
growth. New measures to boost industrial growth were initiating during the year as the follow up the
industrial policy statement of July 1980. Automatic increase in production, special incentive for
promoting export oriented industries and some relaxation in location policy were allowed.

Balance of payment: in this year there is sharp rise in the import due to substantiate rise in the price of oil
and other major import. The import policy for 1981-82 allowed flexible and leniency across to access to
import requirement. To improve the financial infrastructure the export import bank has been established.

1980-85

Economic situation during this five years period was moderate. Some of the sector has been grown
tremendous where as other were moderate when we consider the agricultural production. It was 15.6% in
the year 1980. It would increase by 2.5% in compare to the 1980. Some of the year in between like 82-83
and 84-85 has shown drastic reduction because of the below average monsoon season and lack of
irrigation facilities. Industrial production has been tremendous. It was 4% in 1980-81 and increase 8.6%
in 1984-85. This was because of some assistance of government they have lowered duties as well
encourage entrepreneur to make export. Industries like power generation would also grow fast. It was
5.9% in 1980-81 increased by 11.9% in 1984-85. Import during this period would be lowered up to some
extent. It was 40.5% in 1980-81 and decreased up to -5.9% in 1984-85. It was all because of industrial
growth in the economy.

In the year 82-83 appropriate mix of policy were introduced. Agricultural production was 5.5%. Area of
irrigation were increased, infrastructure were also increase by 10.1% in compare to previous year.
Industrial production increase by 4% FERA, company were permitted to establish capacity and in high
investment. A dual price policy was introduced in cement industry to achieve better production. In the
year there was a under stain in the BOP because large trade deficit and heavy drawing from IMF.

1986-90

1999-
1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 2000
export 18141 17865 18537 22238 26330 31797 33470 35006 33281 36822
import 24075 19411 21882 23306 28654 36678 39133 41484 42389 49671
This was the significant period for the Indian economy. Indian economy is now in the new path. Major
reforms has been taken place in during this period government has changed their monetary and fiscal
policy. They have changed their taxation structure and had tried to generate more and more revenue from
the taxes. Despite of two or three below average monsoon economy has succeeded to achieve desirable
growth major rural employment programmed has been introduced. Government has been revised
licensing procedure for public as well private sector. They also lower freight charges to boost up the
export.

Major sector has grown good except agriculture sector. It was -3.2% in 1986 and increased to 2.6% in
1990. Drastic change into industrial policy leads to high growth in 1986-87. It was 13.1% and increased
to 8.5% in 1990. Power generation also grown and same as first period import and export has given
satisfactory result.

1990-1995
The economy has emerged decisively from this crisis of 1990-91. This reached at peak in the summer
1991 whenforeign currency reserves hadto almost 1 billion inflation had stored to an annual rate of 17 %
overall growth had declined 1.1%. Reforms taken place in 1991-92 bought down the inflation 7 %.
Reserves reached at 6.4 billion & strong recovery in the export at the end of the year. Liberal policy
toward foreign investment and changes in governance of the capital market.

The year 1993-94 saw further fruits of the initia reforms an involve of over 2.5 billion an
the account of foreign direct and equinityportfolio investment 1993-94 was the slow revival of capital
good production remain the cause for concern . Agriculture production was lower in compared to the
1992-93 because of peak level attained in the last year.

The aggregate performance of the industrial sector appears poor because of the sharp set back
suffered by the capital good sector. A number of policy initiatives were taken in infrastructure to promote
efficiency and raise resources for expansion. Because of the steel, cement and crude oil posted a growth
of 5% in first three quqrter.Recognition recorded by govt. like NSE,OTCEI,IFLS import most of the
measure taken on the export promotion leads to 15% increase.

1997-1998
Export growth as slowed down during over last three year because of international and domestic factors
97-98 sustain growth in software tourism receipts in us dollar term have raisedat a respectable rate of
6.8% depressed international commodity price in 97-98. 97 and continued decline in global price in 98
among the domestic factors that it continued to hamper exports infrastructure , SSI reservation ,labor
inflexibility ,ceiling on agriculture export remain problematic. Increasing government production in the
textile sector, global cessionary condition affecting he demand for gems and jewelry s exports problem
affecting granite exports lather exports

Declaration in imports in financial year with imports of 7.1% growth POL imports decline by 26.3% due
to continuing the softness in international price and slowdown of domestic industry rise in gold and silver
imports .in 1994 special import licensing (sil) were introduced under export houses .trading houses , star
trading houses including gold specific duty have been allowed on import gold with out licensing .this
bring down the domestic gold smuggling and add exports.FDI in global mobile personal communication
by satellite rise by 49%.

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

export 44560 43827 52719 63843 83536 103091 60550
import 50536 51413 61412 78150 111518 149166 95691

2000-07

06-07

Merchandise export & import maintains their growth prospect as well as global liquidity
FDI to India increase sharing from US $ 7.7 billion during 2005-06 to US $ 19.5 billion during 2006-
2007 on the growth of expansion as domestic activity positive investment, progressive liberalization of
the FDI policy& simplification of procedure. At the end of 2006-07 Indian foreign exchange research
stood at US $199.2 billion. The good performance in industrial sector was also boosted to export. The
combined growth of the six infrastructures industry electricity coal, steel, crude petroleum, petroleum
refinery product & cement.

Large export apart from the base affect enables the petroleum refinery product to register
strong growth.

Indian BOP position indicated sustained strength in the external sector during 06-07
reflecting the macroeconomic fundamental. The growth in merchandise export & non-oil import
moderated from the strong growth in the previous years. Economy from export of software & other
business services as well as remittances from Indians working abroad.

The provisional foreign trade for 2006-07 indicates the value of export during march-April
2006-07 of US $126331 million was higher 22.5 % than that of US $703091 million in 2005-06. The
value of import was higher by 27.8%. The value of import of US $ 190566 million was higher by 27.8 %
as compared to level $149166 million in 05-06. The value of import was higher by 29.8% non oil import
was higher by 26.99%.

07-08

Record level of import of crude oil, capital goods, manufactures, intermediates a non-monetary good is to
structural strength of country’s BOP. In the first eight month of year 07-08 India merchandise export
raised $98.4 billion an increase of 22.1% over the comparable period least. Import increase to $ 151
billion increase to 27 compared 23.6%. It appears that export expansion is drawn more by productivity
increase that have adverse impact as any appreciating rupee and slowdown is developed countries. While
import growth is driven both domestic economic growth as well as by appreciation of the rupee.

The value of oil import rose by 11% largely line with increase international prices of crude.
Import of oil bill much higher than 06-07.

Gold import totaled $ 6.7 in 2007-08 increase of 124%. The value of non oil import rose by
35 % indicates of the strength of import demand generated rapid face of investment and economic
expansion.

The major impact of appreciation of Indian rupee vis-à-vis the US dollar & other major
currencies has been a major sources of concern. Industry apprehends a decline in Indian share in export
markets as well as possible adverse consequences on the competitors of Indian manufacturing or at least
in some sectors. Absolute decline in cotton yarn, fabric & handloom carpets. The decline in value of
export of such items when measured in Indian rupee is obviously longer. While a complete analysis of the
exact nature of the impact of rupee appreciation on export values.

India export aggressively by undertaking several measure aimed at augmenting export of form good,
small sector, textiles gems and jeweler, electronic hardware etc.

Special economic zones :- Indian banks were allowed to set up offshore banking units in special economic
zones. This will attract FDI.

Agriculture: - policy removed all quantitative restriction on all agriculture production except few sensitive
items like jute and onions. Agriculture transport subsidy was mode available for export fruits, vegetable.
Small scale industry: - development of economic export excellence such as woolen blanket. It allowed
import of rough diamonds duty free. But net exports of diamonds is total export of gems and jewelerit
becomes evident that this shares declined from 60.1% in 95-96 to 28% in 99-00 but has slightly improves
to 32.9% in 02-03.

Look at exports from the various relevant angles; one is struck by its low status in the economy. There is
big gap between import and export and therefore large deficits for very many years. To meet these deficits
India had to incur large debts in foreign currencies involving a big burden of debt servicing.

Despite weak performance of export there are some bright development too that mark the export scenario
of the country. The relative share of manufactured items in total export is around 78%. India has
comparative advantage n these products largely because of cheap raw materials and low labor wages. The
product pertains to such lines as engineering, chemicals, textiles and garment, leather and leather
products.

Major impact on increasing growth of both import and export was changing in monetary and fiscal
policy by RBI and government coupled with slight easing of petroleum pricing and inflation on declining
rate. His high growth rate of five major sectors

1. Engineering goods
2. Gems and jeweler
3. Textiles
4. Comical
5. Petroleum products

NRI deposits went up because of attractive rate of interest .