International Business

FAT-1

Name- Pushkar Rahul Oak

Roll no.- 117
PRN- 1062210589
SY BBA Div. B
Subject- International Business (IB)

India’s Share in Global Trade

India's share in world trade has been increasing over the years, although it still lags behind
some of the world's largest trading nations. In recent years, India's global trade has been
impacted by a range of factors, including the COVID-19 pandemic, geopolitical tensions, and
trade policies.
As of 2021, India's share in world trade stands at around 1.7%, according to data from the
World Trade Organization (WTO). This is a significant improvement from a decade ago
when India's share was just around 1.3%. However, compared to other large economies,
India's share in global trade is relatively small. For example, China's share in world trade is
around 12.8%, while the US and Germany account for around 8.2% and 3.6% respectively.

India’s major trading partners:

India's main trading partners are the US, China, UAE, Saudi Arabia, and Hong Kong. The
country's exports are dominated by petroleum products, gems and jewellery, and
pharmaceuticals, while imports are dominated by crude oil, gold, and electronics.
India has taken several steps to boost its trade and economic growth in recent years, including
the "Make in India" initiative, the introduction of the GST, and the signing of several free
trade agreements. However, India's trade performance has been impacted by several
challenges, such as inadequate infrastructure and low productivity, which limit exports.
India has faced trade tensions with its major partners, such as the US and China, due to unfair
trade practices. India's share in world trade has been increasing in recent years, but it remains
relatively small compared to other large economies. India has taken steps to boost its trade
and economic growth, but it faces several challenges, such as inadequate infrastructure and
agricultural sector issues. To further increase its share, India will need to address these
challenges and strengthen its trade relationships.
India is one of the largest economies in the world and is a member of the BRICS group of
emerging economies. As a result of its rapid economic growth, India has become an
important trading partner for many countries around the world. China is India's largest
trading partner, accounting for 15% of its total trade. The United States is India's second-
largest trading partner, with 10% of India's total trade. India mainly exports gems and
jewellery, pharmaceuticals, and textiles to the US, while it imports machinery, electronics,
and precious metals from the UAE. India's major trading partners include China, the United
States, the United Arab Emirates, Saudi Arabia, and Japan. These countries have significant
economic and political relations with India and play a critical role in India's economic growth
and development. India also has significant trade relations with other countries such as
Germany, South Korea, Singapore, and the United Kingdom. India's trade with these
countries has been growing steadily over the last few years, and they are important trading
partners for India.

India’s major trading items:

India has a diverse economy and has been a major player in global trade, especially in the
field of textiles and spices. In recent years, India has diversified its export portfolio to include
a wide range of products, from agricultural goods to high-tech items. The major trade items
of India include pharmaceuticals, gems and jewellery, and textiles. Pharmaceuticals are one
of India's top exports, with a share of 6.75% in the country's total exports. Gems and
jewellery are known for its expertise in diamond cutting and polishing, and exports a
significant number of gems and jewellery to countries all over the world. Textiles are India's
major industries, with a range of textiles including cotton, silk, wool, and jute. India has a
diverse range of export items, including agriculture and allied products, engineering goods,
automobiles and auto components, and petroleum products. Agriculture and allied products
account for 12% of India's total exports, engineering goods for 25%, automobiles for 4%,
and petroleum products for 12%. These products play a crucial role in India's economy, and
the country will continue to focus on these industries in the years to come.

India’s shift in Imports and Exports:

Over the past few decades, India has undergone a significant shift in its import and export
patterns. The country has moved away from being a predominantly agricultural-based
economy to a more diversified one with an increasing focus on manufacturing and
services. This shift has had a significant impact on India's trade flows, with changes in both
the types of goods being imported and exported and the countries with which India trades.
India's imports have undergone a significant transformation in recent years, with the country
increasingly importing luxury goods and capital goods. This shift towards capital goods
imports is a reflection of India's growing manufacturing sector, while the shift towards
sourcing goods from new trading partners is driven by factors such as India's growing
demand for raw materials and its efforts to reduce its dependence on any one country. In
recent years, India has started diversifying its imports, with an increasing share of goods
coming from countries like South Korea, Japan, and ASEAN nations.
India's exports have undergone a significant transformation over the past few decades.
Historically, they were dominated by agricultural products, but with the growth of India's
manufacturing sector, they have diversified significantly. Today, India's exports include a
wide range of products, including textiles, pharmaceuticals, automobiles, and software
services. In recent years, India has shifted towards new markets, with an increasing share of
exports going to countries like China, Japan, and the ASEAN nations. This shift is driven by
India's efforts to reduce its dependence on any one market and its focus on developing new
trading relationships.
Overall, the shift in India's import and export patterns reflects the country's growing
economic strength and diversification. As India's economy continues to grow and evolve, it is
likely that we will see further changes in the types of goods being traded and the countries
with which India trades.

India’s EXIM policy:

India's EXIM policy, or the Export-Import Policy, is a set of guidelines and regulations that
govern the import and export of goods and services into and out of India. The policy is
formulated by the Directorate General of Foreign Trade (DGFT), which is a government
body responsible for regulating India's foreign trade.
Over the years, India's EXIM policy has undergone several changes, with the aim of
promoting India's trade interests and boosting its economic growth. In this answer, we will
discuss some of the significant changes made to India's EXIM policy in recent years.
Introduction of the Foreign Trade Policy (FTP) 2015-2020: The FTP 2015-2020 was
introduced in April 2015, and it aimed to increase India's exports of goods and services. The
policy focused on enhancing India's competitiveness in the global market and reducing the
trade deficit. The FTP also introduced various schemes to promote exports, such as the
Merchandise Exports from India Scheme (MEIS), the Service Exports from India Scheme
(SEIS), and the Export Promotion Capital Goods (EPCG) Scheme.
Goods and Services Tax (GST): In 2017, India implemented the Goods and Services Tax
(GST), which replaced the previous complex tax structure of multiple indirect taxes. The
GST simplified the tax regime for exporters and importers by unifying taxes across the
country and reducing the cascading effect of taxes on goods and services.
Changes to the MEIS scheme: In 2019, the government revised the MEIS scheme by
reducing the rates of incentives for exports. The move was aimed at controlling the fiscal
deficit and promoting the export of value-added goods instead of low-value goods.
Introduction of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme:
In September 2019, the government announced the RoDTEP scheme, which replaced the
MEIS scheme. The RoDTEP scheme aims to reimburse exporters for the various taxes and
duties incurred in the export of goods. The scheme covers various export sectors, including
textiles, leather, and agricultural products, and is expected to boost India's exports.
Import restrictions: In recent years, India has imposed restrictions on the import of certain
goods to protect domestic industries and reduce the trade deficit. In 2020, the government
banned the import of 101 items, including electronics, textiles, and toys, to boost domestic
production.

In conclusion, India's EXIM policy has undergone several changes in recent years, with
the aim of promoting India's trade interests and boosting its economic growth. The
government has introduced various schemes to promote exports and simplify the tax
regime for exporters and importers. The import restrictions have been imposed to
protect domestic industries and reduce the trade deficit. The recent changes to the
EXIM policy are expected to boost India's exports and increase its competitiveness in
the global market.

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