+

Indias Foreign Trade

Presented by:
Hemant Kumar (232008)
Sushant Taneja (232011)

+ INTRODUCTION
When countries buy goods and services from each
other and/or sell goods and services to each other,
this is referred to as Foreign trade
Foreign trade is also known as external trade
Foreign trade transactions are classified under three
categories:
Import Trade
Export Trade
Net Exports / Trade Balance

+ BALANCE OF PAYMENT

When countries trade with each other, a record is

kept of the financial transactions between them.
This record is known as the balance of payments.
It is a statement of the trade which takes place
between a countrys residents (individuals,
businesses and the government) and the residents
of all foreign countries.
There are three components of the balance of
payments account
Current Account (the inflow and outflow of
goods and servicesinto a country)
Capital Account and
Financing Account

+ BALANCE OF TRADE

Balance of trade (BOT) is the difference between a

country'simportsand itsexports.
Balance of tradeis the largest component of a
country'sbalance of payments.
This balance may be a plus (+) surplus or a minus
(-) deficit.
Trade Deficitif imports more than it exports
Trade Surplus if exports more than it imports

+ INDIAN ECONOMY - Snapshot

+ INDIAS INTERNATIONAL TRADE

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
-23.13
-43.25
-56.6
-79.21

-92.29

-126.2

-123.88
-161.58

-138.2
-141.44
-150.55

-192.87

+ INDIAS INTERNATIONAL TRADE

Indias total merchandise
trade increased from
US$467 billion in FY2010
to US$757 billion in
FY2015
Exports of India have
increased from 179 billion
in FY 2010 to US$ 310
billion in FY2015
Share of India in world
merchandise export is now
1.7 % i.e. rank 19th ( 29th in
2005 )
Foreign Trade Policy 2015-

+ INDIAS SHARE IN GLOBAL

MERCHANDISE EXPORTS

+ INDIAS EXPORT: Shifting

Southwards

LAC; 5%

LAC; 3%
North America; 17%
Africa; 7%

Asia; 49%

Europe; 24%

2004-05 (US$ 83.5

bn)
Source: Ministry of Commerce &
Industry, Government of India

North America; 14%

Africa; 11%

Asia; 52%

Europe; 18%

2014-15 (US$ 309.6

bn)

+ INDIAS IMPORT: Shifting

Southwards

Asia; 37%

Others; 28%

Others; 2%

Europe; 16%
Africa; 8%

LAC; 2%

Europe; 23%

North America; 7% Africa; 3%

2004-05 (US$ 111.5

bn)
Source: Ministry of Commerce &
Industry, Government of India

Asia; 60% North America; 6%

LAC; 7%

2014-15 (US$ 447.5

bn)

+ INDIAS MAJOR TRADING PARTNERS

Total Exports : US$ 309.6 bn
Netherlands
Sri lanka
Germany
UK
Singapore
Saudi Arabia
China
Hong Kong
UAE
USA

6.3
6.7
7.5
9.3
10
11.2
12
13.5
33

2014-15 (US$ 309.6

bn) of Commerce &
Source: Ministry
Industry, Government of India

Total Import: US$ 447.5 bn

South Korea
Nigeria
Iraq
Qatar
Indonesia
USA
Switzerland
UAE
Saudi Arabia
42.4 China

13.5
13.7
14.6
14.6
14.9
21.6
22.1
26.2
28.2

2014-15 (US$ 447.5

bn)

60.4

+ INDIAS EXPORT TRADE BASKET

Cotton Fabrics

5.5

Aircraft, spacecraft and Parts

6.2

Motor Vehicles

6.7

Product of iron and steel

7.6

Iron & Steel

8.7

Cotton incl accessories

9.3

Drug and biologicals

Gold ,Metal Jewellery

11.2
13.2

Perals, Prec & semi-prec stones

Petroleum Products

2014-15 (US$ 309.6

bn)
Source: Ministry of Commerce &
Industry, Government of India

24.6
56.7

+ INDIAS IMPORT TRADE BASKET

Plastic Raw Material

9.2

Vegetable Oils

9.7

Organic Chemicals

11.3

Iron and Steel

12.3

Electronic /Telecom Instruments

Coal,Coke

14.7
17.7

Petroleum Products

21.9

Precious Stones

22.5

Gold

34.3

Petroleum Crude

2014-15 (US$ 447.5

bn)
Source: Ministry of Commerce
&
Industry, Government of India

116.4

+ INDIAS TRADE IN SERVICES

Total Trade in Services

NASSCOM Estimates
Source: Reserve Bank of India (RBI)

+ INDIAS DIRECT INVESTMENT

FLOWS
43.9
37.7

36

46.6

44.9

30.9

34.3

3636.9

26.9

18

FDI Inflows

FDI Outflow

Source: Ministry of Commerce &

Industry, Government of India

30.9

FDI inflow into

India increased
to US$45 bn in
2014-15
FDI outflow
from India
stood at
US$30.9 bn in
2014-15

+ Highlights of the Foreign Trade

Policy 2015-20
Increase exports to $900 billion by 2019-20, from $466 billion in
2013-14
Raise India's share in world exports from 1.8% to 3.5%
Merchandise Export from India Scheme (MEIS) and Service Exports
from India Scheme (SEIS) launched.
Higher level of rewards under MEIS for export items with High
domestic content and value addition.
Trade facilitation & ease of doing business ( Boost to Make in India )
Manufacturers who are also status holders will be enabled to
self-certify their manufactured goods as originating from India.
No need to repeatedly submit physical copies of documents
available on Exporter Importer Profile.
Inter-ministerial consultations to be held online for issue of
various licenses
Calicut Airport, Kerala and Tamil Nadu notified as registered ports
for import and export.
Source: KPMG

THANK
+
YOU!