RIDHI GUPTA Course Code : IBO-03

CourseTitle : India's Foreign Trade

Assignment Code : IBO _3 /TMA/2020-21

Coverage : All Blocks

Maximum Marks : 100

Question 1 define the balance of payment? What are the main items included in balance of
payment?Describe briefly India’s current and capital accounts

Answer. the balance of payment also known as BOP is a measure of the payment that flows between
any individual country and all other countries it is meant to summarize all international economic
transaction for that country during a specific time. The beauty is estimated by the countries export an
import of goods, services and financial capital, as well as financial transfers the balance, like other
accounting statement, is prepared in a single currency, usually the domestic foreign asset and flows are
valued at the exchange rate of the time of transaction balance of payment, as such offers a
comprehensive statement over the net result or foreign trade and gives a true image of the country
financial stature in the international trade. This is a conversion of double entry accounting where all that
entries must be booked along with corresponding credit entries such that the net of the current account
will have a corresponding net of the capital and financial account

However, there is a difference between market balance of payment and accounting balance of
payments. Balance of payment of a country is considered to be one of the imperative indicators for
international trade, which significantly affect the economic policies Of a government.

Balance of payment is a methodical and abstract record of a country’s economic and financial
transaction with the rest of the world over a given period of time.

The main items included in balance of payment

(A)Items in current account

• Merchandise export .. sales of goods abroad

• merchandise imports.. purchase of foreign goods
• trade balance.. Good trade balance
• Invisibles
• Non factor services..Sales of services example insurance, software plus spending of foreign
visitor And purchase of foreign services

• Investment income..Dividends, interest etc received from abroad.. payment of dividends

interest etc
 • Private transfers.. net private payments example remittance from workers abroad

• Official transfer grants.. net official payments example overseas aids

(B)items in capital account

• Foreign investment
direct investment.. net direct investment in plant and machinery etc
portfolio investment.. net purchase or sale of shares, bones etc
• Other flows.. some of other items, including delayed export receipt and E&O.
• Commission and other borrowings.. official borrowings and lending
• Nonresident deposits

(C)Reserves and monetary gold.

India’s current account

Current account… the current account is the net change in current assets from trading goods and
services, net factor income, and the net unilateral transfers from abroad. The current account balance is
one of the two major metrics of the nature of a country’s foreign trade. A current account surplus
Increases a countries net foreign asset by the corresponding amount he, and the current account deficit
does the reverse. Both government and private payments are included in the calculation

Most developing countries carry on current account deficit in their balance of payments an get external
capital to supplement their domestic savings to attain higher growth rates. In India’s case half the end
persistent current account deficits were run in the entire decade of 1980s please stop in the wake of the
1991 crisis, government initiated several major structural reforms. The reforms dealt with the issue on
two fronts first there was a calculated policy shift towards encouraging non that creating flows to
finance the current account deficit. Secondly, the current receipt both merchandise and service showed
a healthy performance after 1990 9091 as a result of the reforms. The ratio of current received to GDP
exhibited a visible rise. The combined effect of the two factors resulted in the decline of DSR from 35.3%
in 1991 two 21.2% in 1997 and 18% in 1998. The downward trend in IMF repayment that also
contributed to decline in the DSR.

India’s capital account

Capital account…. According to the Definition, the capital account records the international flows of
transfer payments relating to capital items. It records a country’s inflows and outflows of payments and
transfer of ownership of fixed assets. The capital accounts for the transfer of capital goods. Also, the
term capital account usually refers to the financial account and capital account

In the capital account, there was a worth mentioning compositional shift away from that inflows to non
debt inflows the compositional change also reflected the effect of conscious policy initiative spread over
trade, exchange rate, foreign investment an industrial policy. There was a renewed endorsement of
international confidence in the Indian economy. The economic reforms created a vigra San conductive
environment for inflow of foreign investment both direct and portfolio.
A greater inflow of foreign investment particularly the FDI means a higher level of sustainable CAD. The
foreign direct investment as percentage of net capital is on the rise for last one and a half decades.
Along with, the foreign portfolio investment has also grown up. An important aspect of these inflows is
the issuance of global depositary receipt by Indian companies

These developments have come as a blessing for the balance of payment with a clear sustainability as
shown by decline in the debt service from 35.3% in 1991 to 21.2% in 1996 and 18% in 1998 .Moreover
call MoD at GDP ratio has also gone down from 30.2 percent in 1991 two 24.7% in 1996. The improved
balance Off payment position where since 1991 has led to healthy buildup of foreign exchange reserves

Question 2 write down the export promotion measures Adopted by Government of India

Answer.. important export promotion measures taken by government Of India are as follows
• Export processing zones EPZ:export processing zones have set up at 7 places as special
enclaves, separated from the domestic that is areas by physical barriers. These are
provided with a globally competitive duty free environment to make export production
possibility at low cost. The seven export processing jones are located at Gujarat call my
mom by, westbengal, UP, garella, Tamil Nadu and Andra Pradesh Oh yeah
• 100% export oriented units.. 100% export oriented unit scheme is complementary to
the export processing zone scheme. Under the scheme an industrial unit offers for
export its entire production. 100% export oriented units can we set up anywhere in the
country subject to some location criteria
• Maser facilities100% export processing Jones

Automatic approval granted within 15 days to all proposal satisfying specified conditions

No import license is needed to import capital goods, raw materials, consumables etc

50% of production is allowed for sale in domestic markets at concessional rate of duty however,
clearance from government is necessary to do so

• Export promotion industrial parks scheme.. this is a central sponsored scheme involving the
state governments in creating infrastructure facilities for export oriented production
• Software technology parks scheme software technology parks schemes are 100% export
oriented projects catering to needs of software development exports. No export licenses
required for import of equipment into technology parks
• Electronics hardware technology parks scheme.. under the electronic hardware technology bark
scheme, the central government asked if government, public or private sector undertakings may
set up such a park. AnN EHTP unit can import free of duty all types of goods including all capital
equipment needed by it for its production process
• Special economic zones. To encourage free trade further government has also set up special
economic zones. Such Jones are specifically delineated duty free in claims and are deemed to be
foreign lands for the purpose of trade operations
• . export houses, trading houses and start trading houses.

.under this scheme registered Exporters with a good record of export performance Over many years are
granted status of export or trading house or start trading house or superstar trading house
The objective of this game is to give national recognition to stablize exporters enlarge export houses and
stimulate them two greater export achievements

• Diamond, jam and jewelry export promotion scheme.. exporters of German jewelry are allowed
to import their inputs using replenishment license and diamond imp rested license issued by the
licensing authority. Exporters of gold or platinum jewelry and other articles can import
necessary inputs like gold, silver, platinum, finding, rough gems, precious and semi precious
stones without any problem
• Export of services.. to boost the export of services, several facilities have been declared to
service exporters. They are eligible for recognition as service export house, international service
export house, international star service export house and international superstar service export
house on reaching prescribed export performance .
• Facilities for deemed exporters… Deemed exports are those transaction in which goods supply
do not leave the country and the supplier in India receive payment for the goods by the foreign
buyer in foreign exchange following benefits are given to dim exporters :
Advanced license for intermediate supply ordem export
Deemed export drawback
Refund off terminal excise duty
• Export promotion capital gold scheme.. Under this scheme new capital goods including
computer software systems are allowed to be imported. Capital goods including Jakes, fixtures,
dies, molds and spares up to 20% of the CIF value of the capital goods can be imported at 5%
custom duty
• Duty exemption or remission scheme.. the duty exemption scheme unable’s import of inputs
required for export production. An advanced license is issued for duty free import of inputs
subject to actual user condition. Advanced license can be issued for physical exports,
intermediate supply and also deemed exports
• Export finance.. export finance and credit are made available to exporters for producing an
selling goods to overseas buyers on credit. Both pre shipment and post shipment credits are also
available in foreign currency export import Bank of India is the principal financial institution
responsible for both financing and promoting India’s export trade
• Duty drawback scheme under the duty drawback scheme exporters get back all Customs and
Excise duties paid on raw materials, components an spares including packaging material call
mom imported or indigneous used in export products
• Tax relief.. export sales are exempted from payments of sale tax. Excise duty is also not payable
on export codes. If paid, it is refunded. Also profits made in exports including software exports
are totally exempt from income tax.
• brand promotions and quality awareness.. The central government has set up a committee to
identify branded products to actively promote their exports. The government aims at
encouraging manufacturers and exporters in matching globally recognized standard of quality
for their products
• Market development assistance. This game was originally known as the market Development
Fund and was introduced in 1963. Its main objective is to stimulate exports and diversify the
pattern of export trade. The scheme offers valuable assistance in the marketing of wide range of
Indian commodities abroad
• Crucial balancing investment scheme this novel scheme anvis ages balancing capital investments
for relieving bottlenecks in infrastructure for export production. Its primary aim is to boost
exports through export facilitation and removal of impediments to exports The scheme Provides
funding support two proposals that will remove any bottlenecks add ports, roads and airports,
export centers etc
• Electronic data interchange.. government has identified use of electronic data interchange as
high priority in trade facilitation. Government periodically holds major international edi events
to highlight the capabilities of electronic Commerce.
• State cell the state cell at center is a nodal agency, which interacts with the state or union
territories on export matters concerning that areas. The cell directly involves various state
governments in countries export efforts. The state governments have also nominated nodal
officers for export promotion work..

Question 3 describe governments major to encourage agriculture export?how Various

infrastructure Facilities have been strengthened
Answer.. majors to encourage agricultures export
Government is now extending financial assistance to eligible exporters for setting up various
facilities needed for improving their export of agriculture products. No government assistance is
for facilitating the following
• Purchase of specialized quick transport vehicles with gold storage units for meat, horticulture
and floriculture sectors next Lane setting up of pre cooling facilities
• Setting up of mechanized post harvest handling facilities and sheds for grading, sorting, quality
control and packaging next Lane erecting special gold stores at airport or seaports for export
purposes

assistance for test marketing and publicity ..financial assistance is also given for the following
• Supply of samples of products for test marketing
• Preparation of product literature, publicity, material, films, etc
• brand publicity through advertisement
• participation in international fairs

Scheme for packaging development… this game is for development of international standard
quality packaging. The assistance is for
• Development of packaging standards and designs
• Using packaging developed by hi APEDA through Indian institutes of packaging or others along
with product of India
Scheme to promote quality and quality control…. government also extended assistance to
promote quality and quality control under a special scheme. It is meant for
• Setting up quality control laboratories and strengthening of quality improving activities
• Specialized consultancy services towards obtaining ISO 9000 or other recognized international
quality control system and preparing quality control manual
 Other scheme of assistance…. There is a special scheme for upgrading of meat plants. Financial
assistance is given to public slaughterhouse an meat processing plants to achieve international
standard of quality for their export products.
Another scheme is to help in creating a pool of agricultural experts for the export segment. The
assistance is extended for organizational building and human resource development and
training.
There is also a special scheme to encourage agro relevant research through research institutions
that can benefit both trade and industries.

Strategies to boost agriculture export…

To bring to fruition The full export potential of agricultural sector, we must strengthen the
infrastructure and storage facility required. Government needs to embarq upon several key
measures to exploit the tremendous export possibilities fully. India has one of the longest
coastline in the world however, Indian ports can hardly be called world class. They need to be at
least compareable with ports of Singapore and Hong Kong. Goals should be not only handled
efficiently and effectively but also at very competitive rates. Indian ports have to be capable of
dealing with larger tonnage.There is a lack of proper loading facilities. There is very little modern
warehousing capacity near ports. The shortage of railway wagons is adversely affecting
competitiveness of indian's export
Names in case of fruits and vegetables, lack of cold storage capacity is badly affecting their
exports. Fruits and vegetables of about rupees 5000 corrode are wasted every year due to poor
storage and transportation facilities
Urgently needed infrastructural facilities
following infrastructure facilities absolutely necessary to boost agriculture export
• at present only those farm product can be exported in which the country has a surplus this
policy needs to be discarded immediately
• Doing away with barriers on quantities to be exported on some products
• Trade policy for the agriculture sector needs to be completely open, free and outward looking.
The farmer should have total freedom to handle sale of his produce without any government
restriction on quantity
• Private sector investment in infrastructure needs to be encouraged By offering attractive
incentives.
• Doing away with all export controls and regulation like canalization
• Post harvest technology needs to be improved to ensure preservation and utilization of the
produce both for domestic consumption and export purposes next line to promote farm
production an agro based industries, the farm sector should be given status of industry with
facilities like easy and cheap credit, specialized funding institutions, storage amenities and
marketing services
• Agriculture sector should be freed from payment of taxes including capital gains tax
• Proper use of farmland is to be insured while considering ecological issues
• Foreign capital and technology should be encouraged but only in the areas where it is genuinely
required
 • eastern state are lagging in production of various agricultural commodities. Special focus
needs to be their own improving their performance
• Productivity of various crop has to be improved as lands are going to be more and more scarcer
in future
• Agricultural growth ought to be taken to over 3.5% to 6% in output terms
• Investment in agriculture have to be speeded up considerably as a percentage of the total
expenditure in five year plans on a continuous basis
• It is imperative that to dependence of our agriculture on monsoon should be reduced
drastically. The only way to do this is to improve irrigation system in the country
• State government should amend their respective agricultural land ceiling acts 2 remove all
anomalies in them
• Consolidation of landholdings should be done with more enthusiasm
• Fertilizer consumption has to be more for increase production, which can satisfy rising domestic
requirement and exports. There should be more use of biofertilizers call my bio pesticides,
organic menus and micro nutrients and these ought to be promoted basically
• Plant where I teach protection bill is ultimately in the interest of farmers. Production of high
value seeds involved the process of hand pollination which is highly labor intensive and India
stands to gain by implementing it..

Question 4..Define service?Identify Various services Bing exported by India? also write down
advantages and disadvantages of this sector
Answer.. that term service is used in the context of a general nature. Service are defined just by
contrasting them with merchandise such as immaterial itai, non storability an simultaneous
production and consumption. However due to technological advances some of these features of
service have changed
A service can be defined as an actor which is the result of productive activity and whose effect is
to change the status or position of beneficiary. The service output is not discernible From its
production process and the result or effect of the service is inseparable from its beneficiary and
cannot form the subject of a new transaction. In view of this service are classified as activities
and not as product. Service generally cover activities of construction, transport, communication,
wholesale and retail trade, financial service and domestic services. Government itself offers a
number of services. These include public administration, education, health, defense, social
service, medical, legal service, tourism etc

. Services offered by India

Conventional services

• Tourism and travels tourism and travel have a great future for high growth in the country. India
is already a major tourist attraction because of its cultural and physical resources, strategic
location and the availability of low-cost labor.
• Construction and engineering services …India certainly enjoyed a comparative advantage in
this growing sector the advantages consists of the availability of low-cost skilled and
 semiskilled labor, mastery of appropriate technologies to suit two conditions often found in
the other developing country
• financial services ….Banking activities abroad for India banks are costly and also much
competitive. India has, therefore to pay more attention to banking in the developing
countries. As a Start, India bank should set up branches in the countries with which India can
have long term trade relations. Only after having a from presence in many developing
countries, Indian banks can think of establishing branches or subsidiaries in developed
countries
• Insurance Indian insurance industries and in position to lead insurancebusiness among
developing countries due to its financial strength, lower cost, skilled manpower and lack of
reinsures for long volume of business in such countries. The insurance company of India can
do excellent business by becoming subcontractors for many TNC's who do insurance business
in specialized areas
• Indian shipping services…. By Lee shipping services provided by our country in ITS global trade
from a very important source of foreign exchange earning as well as savings. The World Trade
Organization is now conducting negotiations in maritime services. Shipping industries now
recognized as a service export industry because of its importance as a foreign exchange earner
and saver. A basic hurdle in growth of Indian shipping industry is by and large the badly
maintained Indian ports. If the condition of Indian ports is improved and they are totally
modernized, Indian shipping will grow at a much faster pace
• Air transportation…. in last two decades there has been an astonishing increase in the volume
of air traffic in both domestic and international circuits. There have been several policy
decision to encourage growth in air travel. The domestic air routes are now open to private
operators. Government is also completely restructuring Air India an Indian airlines. Getting
there has been a vanloan carrier worldwide with its charming maharadja symbol and also
profitable. It is a successful international airliner. It must augment its fleet an marketed
service aggressively to complete effectively in the global air market
• Export of Labor from India India does not have any advanced technology of its own to export
India can, however, export intermediate technology requiring some developing countries. The
most important services that can be exported from India is labor. The most important service
that can be exported from India is labor. According to an estimate more than 1,000,000 Indian
have migrated from India in the recent times. This labor force abroad also remit substantial
funds to India. India often gets up contracts for labor components on this construction works.
India has to train and develop skilled manpower to satisfy these emerging requirements.
Software computer software is one of the most thriving services in which India has a clear as
over many other countries. India software exports have grown significantly in the last decade
.The software trade can be broadly divided into 2 parts one provider of service going to the
place of use, two distance between provider of service and the consumer. India supplies are
large number of computer personal all over the world. Data entry is another type of computer
service India is offering aggressively
Non conventional services

Till now,We have studied the conventional service offered by India and their export potential there
are also a good number of non conventional services in which India enjoys certain advantages to grow
as an important exporter most of these services are technology based

Six such services are surveyed here in brief they are

• Superspeciality hospitals and related services

• Satellite mapping
• Standardization and quality assurance services
• Printing services
• Maintenance services
• Technology intensive educational services

• Superspeciality hospitals and related services… India has now changed superspeciality
hospital an ultramodern domestic centers with state of the art facilities. These are capable of
providing world class healthcare services at only about 1/10th cost of comperable services in
developed countries

• Satellite mapping services… In the last four decades call my India has gained much expertise in
the field. Today it is in so advanced age that it not only meets countries needs, but also is
ready to export this services. The ever increasing capabilities of Indian satellites have made
possible many new space services in the country. A major use of satellites is for detailed
mapping of areas, information about crops degraded lands, forest covers common land use
and land cover, agricultural draudt, offering these, as its price of services is very moderate

• Standardization and quality assurance services… quality is a prerequisite side to building

competitiveness in today’s World Trade although presently there is no worthwhile export of
this service, India is in a position to do so becausw it has a good supply base and it can enter
into necessary international contract through a MOU’s. It is also providing consultancy in
quality improvements program to many developing countries.

• Printing services… today, the digital technology has totally transformed the printing industry
in almost all its aspects. In India printing activity is mostly confined to the small skill sectors.
Printing in India is inexpensive for stop the depreciation of rupees has made it even cheaper
for publishers abroad. Cable is required to work overtime in this line and it is cheaply available
in India. The cost is as less as one by tenth of the books printed in developing countries.

• Maintenance services… maintenance and repair normally mean the activities that keep fixed
asset in efficient operating condition. A vast number of opportunities exist for the
maintenance service of any kind.Indian companies have carried out maintenance assignment
in Mexico call mom portugal, Iran, Iraq, Tanzania, zaire and Sudan etc
 • … Technology intensive educational services open Chrome India has much to offer in
imparting education with its vast network of educational institutions. The Indian academic
community consists of 213 universities over 8000 colleges, 2500 research institutions call Matt
310 medical colleges, about 400 technological institution and a large number of R&D centers.
The main competitor for India in this sector are you are sick on my UK and Australia. However
education in India is much cheaper for the developing countries and the neighboring countries
than in the West

India’s competitive advantages and disadvantages in these sectors

Advantages

• An important aspect of the service sector is that they are generally labor intensive. India is
blessed with ample labor. Also managed services need not only unskilled but also semi skilled
and skilled labor. India is in a position to offer plenty of semi skilled and skilled labor first of
these games the Indian services sector anaz over its competitor in securing orders from a
number of developing and developed countries
• India has a large domestic market for a number of services. These create sufficient economic
strength and learning capacity to manage our large number of areas of the service sectors
• In certain areas such as tourism in the offers are truly large diversity of natural resources and
numerous cultural and artistic places. The cost of tourism in India is very low and it’s therefore
more attractive
• The Government of India is now proactive in encouraging services sectors and has enacted
many new laws to promote the export of services

• Disadvantage
India is willing to export his labor mobility of Labor to promote export of services restricted
becausw of visa policy of importing governments
• Marketaxess in spite of gas is not yet free for a number of services, which are of interest to
India. Even short and medium term movement in hindered by visa policies, problems of
residence etc
• Many areas of service sectors are labor intensive. However globally are being treated as
capital intensive with the advancement of technology
• In many areas of service sector India suffers from inadequate capital
• Necessary finance including export finance is just not available for many areas of the service
sector at lower cost
• Many developing countries like South Korea and Taiwan have ahead in the service sectors by
enhancing their capacities and nurturing their blossoms service sectors
• Market access for India services hamper not only by government policy of the importing
government but also by lack of clear information about rules and regulation in the market on
the part of Indian suppliers of services
 • Marketing of services by the Indian producer of services is generally not off world standard.
Indian producer may offer a quality product but it must be so perceived by the customers.
• Reliability of service surprise yet another factor about which Indians are often not very
serious. Indian supplier have to realize the critical importance of reliability in continuous of
getting orders.

Question 5write short note on the following

(A)India and World Trade

Although India is much better place than many countries of the world in terms of a large domestic
market, a wide industrial infrastructure, our large pool of trained workforce, imposing entrepreneurial
and managing scale, abundant availability of cheap labor and adequate natural resources etc, it is still
not able to be a global marketer becausw of its inward looking economic policies followed for last five
decades. The situation changed only in 1991 when the government boldly decided to integrate Indian
economy with the world economy by implementing the policy of liberalization. It launches far
reaching trade, fiscal, monetary an industrial policy majors. The major thrust was on improving
competence of Indian industries by utilizing foreign investment and technology. The objective of
reform was to dismantle control on industry, external trade and for investment and to create an
ambience of trust between the government and business an industry.

The trade policy reforms also sought to create an environment in which exports would rise at a rapid
pace, to raise India share in world export and find a lasting solution to the balance of payment crisis.
The year 1991 also proved to be the turning point in the history of Indian exports. Exports grew
rapidly thereafter with liberalization of economy.Asians have been cited for the poor export
performance of India. Primarily it was due to devaluation of East Asian currencies, which reduce the
competitiveness of Indian export, particularly in export of textile and chemicals.

India adopted an all inclusive programs off macroeconomic stabilization and structural adjustment in
June 1991 full stop a sustained rapid growth in export is the most critical need if the country wants to
ensure lasting external viability. Viagra’s efforts are therefore necessary to achieve a hasti expansion
of exports, especially when one or other difficult international trading environment is brought about
by succeeding economic and financial crisis. There is also the apprehension that East Asian countries
may reorient their economic activities away from capital intensive industries and move towards labor
intensive ones. Such a movie is bound to intensify competition in markets that are crucial for Indian
exports

(B)Special economic zones

Special economic zone is up purposely marked out duty free in claim and is deemed to be foreign
territories for all region of trade operations and duties and tariffs.Goods entering the special
economic zones are treated as deemed exports and goods coming out of special economic zones are
into DTA are treated as imports. In a special economic zones goods are allowed to be imported
procured from For the purpose of manufacture of goods and services., processing, assembling,
trading, repair, reconditioning, re engineering, packaging, and subsequent export thereof for the
special economic Jones units are all sch procurement are duty fre. A state government may set up one
or more special economic zones in the public, private or joint sector or as notified by the Ministry of
Commerce and industry. Even an existing export processing Joan may be converted into special
economic zone by the Ministry of Commerce and industry through a notification

Incentives, benefits and facilities provided to special economic zones units are as follows

• Trading units these units are permitted to import or procure goods from DTA or from other
special economic zones or export processing Jones unit without payment of duty for physical
exports or sale to other special economic zones
• Reconditioning, repair and reengineering
• Sale in DTA.. manufacturing special economic zones units are allowed to sell goods, including
their by products and services in DTA
• Sale or disposal of rejects, waste, and scrap in dta.. no duty need to be paid if scrap or waste
or rejects are destroy within the Joan after informing the custom authorities or distroyed
outside the special economic zone with prior permission of the custom authorities
• Subcontracting… special economic zones units may subcontract a part of their product or
production process in the DTI with due permission of custom authorities
• Inter unit transfer Inter unit transfer of goods amongst special economic Jones units does not
require any permission
• Self certification… the special economic zone units are allowed to carry out all their activities
through a self certification procedure

(C)India CIS trade relations..

India CIS trade which was one of the order of rupees 13,500 crowd per year during 1996 an
9097 decline shopper Lee by more than half during 1998 mainly due to steep fall in India’s
import from the region for the stop as a result India which was running a huge trade deficit
during the first 2 years, register as surplus during 1998
The Russian Federation, among the CIS countries is the single largest trading partner of India.
Russia accounts for 9 10th of India’s exports to and imports from CIS countries. Apart from
Russia, kazakistan, Ukraine and Uzbekistan are the only three other significant markets for
India while Russia coma Ukraine and Kazakhstan are the three major sources of supply. Major
items of exports from India comprise ready made garments, tea, coffee, rice, drugs and
Pharmaceuticals, plastics and textiles, leather goods, spices and cosmetics. While the main
items of imports are non ferrous metals call my Hayden and steel, newsprint, fertilizers,
machinery, chemicals, raw silk, raw wool and gold and silver.
There is high level of intra trade among the CIS countries Bing call Mara shademan trading
partner in case of both imports and exports
The challenges and opportunities for the Indian exporter in CIS countries are to be seen in the
light of India historical trade link with these countries, reforms being followed in these
countries, their geographical distance from India, the resource base of the countries and the
states of infrastructure at both ends. There is good demand for developmental and consumer
goods in the CIS countries, but there is shortage of foreign exchange, under development of
the financial sector, logistical difficulties etc. To serve these markets, identification of specific
sectors and suitable strategies are necessary for India

(D) Foreign trade of Japan

From the late 1950s until the mid 1980s Japan was depended on imported raw materials for
processing into manufactured goods in a big way but in recent years markets in other Asian
countries have been expanded at good . The shipment of machine rezan parts to Japanese
production plants in neighboring countries with lower wage costs and the subsequent
shipment of finished goods back to Japan have strongly boosted trade flows with Asia.
Because of various agreements on voluntary exports restaurant San Japanese majors to reach
market shares of imported goods call my it's last trade surplus with USA fell . However the
structure of Japanese imports has changed since the mid 1980s with manufacture taking an
hour increasing share currently around 60%.
Japan’s principal items of export included electrical machinery, transport equipment, non
electrical machinery, chemicals and metals. In japan’s imports items machinery and
equipment, mineral, fuels, food, chemicals and textiles
Japan’s major export markets include United States, Taiwan, China, South Korea and Hong
Kong
Japan’s important suppliers include United States, China call my South Korea, Taiwan and
Australia

Thank you…