BharatiVidyapeeth

(Deemed to be University),
Pune, India
Institute Of Management and Entrepreneurship
Development,Pune

“A STUDY ON IMPACT OF COVID ON

INTERNATIONAL TRADE ON INDIA”

A Summer Training Project Report Submitted in Particular

Fulfilment of requirements for the
Award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

2018-2021

Submitted by Guided By
Harsh Vardhan Mrs. Kirti Gupta

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lzxTA»znezPauvesxlPozniOPxixT

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 CERTIFICATE OF ORIGINALITY

This is to certified that the project report entitled “Impact of COVID on

International Trade of India and China” Submitted to Bharti Vidyapeeth
(Deemed To be University) Pune, is partial fulfilments of the requirements for
the award of the degree BACHELOR OF BUSINESS ADMINISTRATION in
an original work carried out by Harsh Vardhan under the guidance of Mrs. Kirti
Gupta.

The matter embodied in the project is genuine work by Harsh Vardhan to the
best of my knowledge and belief and has not been submitted before, neither to
this University nor to any other University for the fulfilment of the requirement
of any course of this study.

Signature of the Student Signature of the Guide

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 CERTIFICATE

This is to certify that the project report entitled “A STUDY ON IMPACT OF

COVID ON INTERNATIONAL TRADE IN INDIA” is an academic work
done by Mr. HARSH VARDHAN and submitted in the partial fulfilment of
the requirement for the award of the Degree of Bachelor of Business
Administration from Bharati Vidyapeeth (Deemed to be University), Pune. It
has been completed under the guidance of Dr. KIRTI GUPTA (Faculty Guide)
and Mrs. PRACHI SHA(Corporate Mentor).We are thankful to LUDIFU for
having allowed our student to undergo project work training. The authenticity of
the project work will be examined by the viva examiner which includes data
verifications, checking duplicity of information etc. and it may be rejected due
to non-fulfilment of quality standards set by the Institute.

Dr. Sachin S. Vernekar

Dean FMS, BVDU
Director

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 ACKNOWLEDGMENT

Apart from my project the success of my project largely depends on the

encouragement and guidelines of many others. I take this opportunity to
express my gratitude to the people who have been instrumental in the
completion of my project.
I am gratefully indebted to our esteemed guide Mrs. Kirti Gupta for her sincere
guidance and price less support without, which it will be impossible for me to
complete this project.
I express my gratitude to the staff members of “Bharti Vidyapeeth
University” who helped me directly or indirectly in my project completion.

Harsh Vardhan

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 PREFACE
In the era of fast changing world, mere classroom teaching is not sufficient to
attain maturity and perfection for application of theory into practice. The
dynamic economy, Political and technological environment in which we live
continuously demand on us to change, improve and learn more about jobs,
management, line of action. Two years of continuous training is sufficient for
the students to implement in the real market. A practical is needed.

The knowledge through project report is essential for BBA students. The
purpose of this report is to study the “IMPACT OF COVID ON
INTERNATIONAL TRADE IN INDIA” with the guidance of parents and
concern guide.

I have tried my best to justify the project and I hope the study will not only help
the organization but also me and the society.

Name -HARSH VARDHAN

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 TABLE OF CONTENTS

Sr.NO CHAPTERS Page No.

1. INTRODUCTION 10-19
1.1 Overview of the organization 11
1.2 Objectives of the study 12
1.3 Need of study 13
1.4 Limitations of Study 14
1.5 SWOT Analysis 15-19
2. RESEARCH METHODOLOGY 20-36
2.1 Statement of the problem 23
2.2 Scope of the study 24
2.3 Managerial usefulness of the study 25
2.4 Types of Research 26-27
2.5 Sampling Plan 28
2.6 Research Design 29-30
3 Conceptual Discussion 31-35
3.1 Literature Review 31
3.2 Current Issue 32-35

4 Data Analysis 36-42

4.1 Data Analysis 36
4.2 Overview of Data 37-41
4.3 Overall Overview 42
5 My contribution to the body of knowledge 43
6. Findings, Conclusion and Suggestions 45-48
7. Summary of the project 49-51
 Appendix 49-50
 References 51

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 CHAPTER 01
INTRODUCTION

Overview of the organization

 Objectives of Study

 Need of Study

 Limitations of Study

 SWOT Analysis

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 1.1 Overview of the Trade of India

The India exports accounts to USD 137.26 billion and imports accounts to USD
164.50 billion in 2019-20.

India exports commodities are minerals, refined petroleum, automobiles,

organic chemicals, pharmaceutical products, iron, steal etc.
India imports commodities are mineral fuels, electric equipment, defence
equipment, medicines etc.
The Government of India's Economic Survey 2017–18 noted that five states —
Maharashtra, Gujarat, Karnataka, Tamil Nadu and Telangana — accounted for
70% of India's total exports. It was the first time that the survey included
international export data for states.
The survey found a high correlation between a state's Gross State Domestic
Product (GSDP) per capita and its share of total exports. With a high GSDP per
capita but low export share, Kerala was the only major outlier because the
state's GSDP per capita was heavily influenced by remittances.

1.2 OBJECTIVES OF THE STUDY

The main objectives of the study is to find the impact of COVID-19 on

International Trade of India.

 Export growth of India.

 Import growth of India.
 Impact on balance of payment
It also focuses on the different industries growth in our country and the
hampered industry due to global pandemic situation all over the world. It looks
and monitor the bottom most reasons behind the trade deficit in our country and
identify the duration of revival for International trade relation. The current and
static account for the trade got differ due to global market price.

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 NEED OF STUDY

The study is needed to find the overall impact on different industrial sectors of
India which covers the different sectors like automobile, manufacturing,
services etc.
The study of this topic helps to understand the future prospectus of trade
relation and product specialization with our trading partner countries all over a
world.
As the study is 360 degree information regarding impact of covid-19 on trade,
the study will leads to new ways to find the way to tackle the adverse
situation and provides a pathway to the growth of different industries.

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 LIMITATIONS OF STUDY

It is said that “Nothing is perfect” and thus there would be few

shortcomings in this project also.
Sincere efforts have been made to eliminate discrepancies as far as
possible but few would have reminded due to limitations of the study.
These are as follows:

● The research was carried out in a short period.

● Limited time sample

● The information given by the respondent might be biased some

of them might not be
interested to give correct information.

● Some of the respondents of the survey were unwilling to

share information.

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 SWOT

STRENGTH
1. Demographics of India are favourable. India still has a positive birth rate
meaning that the size of the workforce will continue to grow for the
foreseeable future. (unlike China) A rising workforce helps to increase
saving and investment. It also enables increased productivity.
2. There is much scope for increases in efficiency. The infrastructure of
India is so bad in places that even moderate improvements could lead
to significant improvements in the productive capacity of the economy.
3. India is well placed to benefit from globalisation and outsourcing. A
legacy of the British Empire is that India has one of the largest English
speaking populations in the world. For labour-intensive industries like call
centres, India is an obvious target for outsourcing. This is an economic
development likely to continue in the future.
4. Education. India has a relatively high level of literacy for average GDP per
capita levels. The right to elementary education (from 2002 act) has helped
literacy rise from 52.2% in 1991 to 74.04% in 2011
5. Positive Growth forecasts A recent study from Goldman Sachs, forecast
that India could growth at a sustainable rate of 8% growth until 2020.
However, it is worth noting that this assumed Indian would make several
supply-side policies such as labour market deregulation and improvements
in education and training.

WEAKNESS
1. The empire-builder follows the trader. The foothold gained by traders is used
to complete a country’s political slavery. For example, the British came to
India for trade and stayed to rule. A powerful country can easily find some
excuse for attacking a weak country.

2. Dependence on foreign goods creates difficulties in time of war when the

country is cut off by enemy action. India had to face great trouble in getting
ordinary articles like needles, tools and medicines during the war.

3. Extreme specialization which makes a country depend on one or two

industries only is bad. This is like putting all one’s eggs in one basket. If
a

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substitute is discovered or the industry otherwise suffers, the economic life of
the people would be endangered.

OPPORTUNITIES

There is an increasing demand for mobile handsets and electronics; this will in
turn create opportunities for brand owners and
trading companies to supply and see growth together with the market. Indian
market also provides opportunities for
software companies that provide expert solutions for mobile and e-governance.

Manufacturing Sector in India

17 per cent of India’s GDP is represented by its manufacturing sector, in
contrast to the 53 per cent of the services sector. Lack of infrastructure and
connectivity is seen the reason for the investment shift into more asset-light
services sector.

Make in India is a national campaign that promotes manufacturing growth for

both domestic and international products. The campaign aims to foster
innovation, facilitate investment, enhance skill development, protect intellectual
property, and build top-of-the line manufacturing infrastructure.

“Make in India” initiative

The Indian government recently launched the ‘Make in India’ initiative to foster
innovation, build top class manufacturing, secure intellectual property, facilitate
investment and enhance skill development. This initiative spans across all the
budding sectors of Automobiles, Automobile components, Aviation,
Biotechnology, Chemicals, Construction, Defence Manufacturing, Electrical
machinery, Electrical systems, Food Processing, ITM and BPM, Leather, Media
& Entertainment, Mining, Oil & Gas, Pharmaceuticals, Ports & Shipping,
Railways, Renewable energy, Roads & Highways, Space, Textiles & Garments,
Thermal power, Tourism & Hospitality and Wellness.

Digital sector in India

IT is one of India’s strengths. In view of this PM Modi has also launched digital
India. The initiative aims to tap India’s IT capabilities and to promote
investments into IT and mobile infrastructure.

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With both hardware and software coverage, India aims to achieve the following:

1. Improvement of electronic infrastructure including fibre optic

cables, mobile coverage, and broadband coverage;
2. Promotion of electronics marketing;
3. Promotion of more e-governance solutions by various
government authorities to address business and civilian needs.

THREAT
India’s has the biggest threat to compete against his neighbouring country China
who emerges as a manufacturing hub of global world.

Developed nations in the east Asia like Malaysia, Taiwan, Hong Kong, Macao
becomes a rival for India to attract a multinational companies to their home turf.

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 CHAPTER-02

RESEARCH METHODOLOGY

● RESEARCH METHODOLOGY

● STATEMENT OF THE PROBLEM

● SCOPE OF THE STUDY

● MANAGERIAL USEFULNESS OF THE STUDY

● TYPES OF RESEARCH

● SAMPLING PLAN

● RESEARCH DESIGN

● DATA COLLECTION METHOD

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RESEARCH AND RESEARCH METHODOLOGY
Research in common parlance refers to a search for knowledge. In fact research
is art
of scientific investigation. Research can be defined as, "A scientific and
systematic search for
pertinent information on a specific topic.”Research comprises defining and
redefining problems,
formulating hypothesis on suggested solution, collection and at last carefully
listing the
conclusion to determine whether they fit the formatting hypothesis.
Research methodology is a systematic method of discovering new facts or
verifying old facts,
their sequence, interrelationship, causal explanation and the natural laws which
governs them.
Research methodology is the systematized effort to gain new knowledge. It is
the original
contribution to the existing stock of knowledge making for its advancement. It
is the pursuit of
truth with the help of study, observation, comparison and experiment.
In short, it also covers the systematic method of finding solution to a problem
and concerns
generalisation and the formulation of the theory. Different stages involved in
research consists of
enacting the problem formulating a hypothesis, collecting the facts or data,
analysing the facts
and reaching certain conclusion in the form of solution towards the concern
problem or in
generalization for some theoretical formulation.

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 STATEMENT OF THE PROBLEM

The main aim of the study is to understand and studied the impact of COVID-19
on India’s International Trade and the future opportunities in trade relations
with other countries.
It ensures the overall problems related to export and import and their demand
inflation.

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 SCOPE OF THE STUDY

The studied is very particular to the trade impact due to global pandemic all
across the world. International trade plays a prominent role in our economic
reforms and their design to regulate and channelize the Ease of doing businesses
to the local manufacturer and promote exports to the potential countries all over
the globe to boost our forex reserve and helps in the development of our
countries economic growth.

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MANAGERIAL USEFULNESS OF THE STUDY

The principal of management plays a prominent role in business and

globalization. It's important to understand the minor elements of businesses
which plays an impactful role over the firm. The alternative options for the
export the firms becomes important to cope up with the global pandemic
situation. There is going to be dramatic change in the business world and their
approach of trade after post-COVID. It becomes important to analyse the
managerial structure of different business in the world.

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 TYPES OF RESEARCH
In research methodology mainly data plays an important role. the data is divided
into two parts:

a) Primary data b) Secondary data

PRIMARY DATA
1. Primary Data: The primary data was collected to measure the impact
of COVID on International Trade in India. The primary data was mainly
collected from the different Newspaper and questionnaire. The analysis
was done on the basis of responses received from the people in this
industry and interpretate it with the newspaper data.
The questionnaire has been designed in such a manner that consumer can enter
his responses easily. Since, it’s a border sector to analyze, I have considered
their views and distinguish them between age groups,

SECONDARY DATA

2 Secondary Data: The purpose of collecting secondary data was to achieve the
objective of studying the recent trends and developments taking place in
banking.
After the data collection, it was compiled, classified and tabulated manually.
The questionnaire
(primary data) what are the main key which help to analyze data. This is the
research. For the secondary data, it has been taken from the different
newspaper articles and from the renowned author who are in the commerce
industry for long time.
methodology used in this project. The task of drawing inferences was
accomplished with the
help of percentage and graphic method.

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 SAMPLING PLAN FOR THE PROJECT

Statistical tools – Bar Graph, pie chart

Percentage
analysis
Tools for data collection - Questionnair
e
Population size - 1000

Sample Size - 100

Sampling Unit - LUDIFIC, Patna

Geographical/Sample area Patn

- a

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 RESEARCH DESIGN

A framework or blueprint for conducting the research project, it specifies the

details of the
procedures necessary for obtaining the information needed to structure and/or
solve
research problems. A good research design lays the foundation for conducting
the project
A good research design will ensure that the research project is conducted
effectively and
efficiently. Typically, a research design involves the following components, or
tasks:

● Define the information needed

● Design the research

● Specify the measurement and scaling procedures

● Construct and present a questionnaire or an appropriate form for data

collection

● Specify the sampling process and sampling size.

● Develop a plan of data analysis.

Research Methodology may be understood as a science of studying how

research is
done scientifically. In it we study the various steps that are generally adopted by
a
researcher in studying research problem along with the logic behind them.
Research methodology is a way to systematically solve the research problem. It
may
be understood as a science of studying how research is done scientifically. In it
we study the
various steps that are generally adopted by a researcher in studying his research
problem.

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 CHAPTER 03

CONCEPTUAL DISCUSSION

LITERATURE
REVIEW CURRENT
ISSUE

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 LITERATURE REVIEW

Dr. R. Ramachandran (2011)

The liberalisation of international trade in services will put them at an even
greater disadvantage in terms of their government sovereignty and of
developing their domestic service industries. However, just as there are vastly
different levels of development among Third World countries, especially in
India there are also differing views on the costs and the magnitude of these
costs of freeing-up the trade in services.
Subhayan Chakraborty (2018)
India‘s exports are unusual in that the largest firms account for a much smaller
share of exports than in other comparable countries. Top one percent of Indian
firms account only for 38 per cent of exports unlike in other countries where
they account for substantially greater share – (72 %, 68 %, 67 % and 55 %
respectively in Brazil, Germany, Mexico and USA respectively). Such
tendencies were also found to be true for the top 5-10 % of the Indian firms.

CURRENT ISSUES
We’re in the midst of one of the most significant challenges in the commerce
industry. The next few months will be crucial in how the sector shapes up. For
many years we have discussed in detail the challenges in real sector
(manufacturing and industry) impacting the core of trade of India. It plays a
crucial role in enhancing the growth and development of our country. However,
this is a challenging time due to global pandemic all across the world. We have
seen a drastic decline in our exports which directly hampered the small and
medium sector industries of our countries.
Next 6 months will play a crucial role for Indians, how they tackle and bounce
back to revive our trade deficit.( Trade deficit means when the import of a
country is more then the export).

IMPACT ON TRADE RELATION

As we are bound to be a trading partner with our trading countries, it becomes a
tough challenge to maintain the trade relation in the current scenario when the
demand for the exported products and services decreases in our country due to
the decline in purchasing power of the people of a country.

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INTERNAL CAUSES
The demand of exports is fulfilled by the many small and medium enterprises of
our countries. Since, it becomes tough to maintain the flow of businesses due to
the less and smooth availability of factors of production for the manufacturing
industries.
1. Shortage of human workers.
2. Shortage of funds to revive the businesses.
3. Weak Supply chain management across the country.

1. SHORTAGE OF HUMAN WORKERS

A mass level of workers got shifted back to their native home from the
workstation. In India, we have witnesses the large number of workers
movement from the developing and industrial state to the region of Bihar, Uttar
Pradesh, West Bengal and Chhattisgarh. It not only hampered the
manufacturing industries but also taken away the employment of the workers
which directly impact on their livelihood and survival.

2. SHORTAGE OF FUNDS TO REVIVE THE BUSINESSES

Some of the sophisticated industries like Petroleum and refinery, Nuclear power
sector and many more needs a heavy amount to revive and maintain the flow of
production again to the usual pace as earlier.

3. WEAK SUPPLY CHAIN MANAGEMENT

India has good networking across the main land. Railways and Roadways are
two important means of transportation in our country. Due to shortage and
complete lockdown in different regions of the countries, it directly impact the
pace of supplement to the industries.
We, have witnessed the shortage of different products and services in our cities
due to the disturbance in the supply chain. Ports of India are the important
component for the international trade of India. It created a mist situation to get
your supply at an assigned time duration.
The quality control start playing a vital role in International trade and the
countries are mostly trying to discard the trade agreement due to the virus.

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CHAPTER-04

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 DATA COLLECTION METHOD

Research methodology is the process of collecting the information which has to

find out the
solutions to the topic selected by the researcher. Research had to study and find
out new
techniques in the proper process.it is a systematic way of presenting
information. in order to
collect the required information for the project the following methods adopted:

1. Questionnaire

2. Discussions

Questionnaire:
Total number of questions: 20
Sampling elements: Customers

Discussions:
Discussions with the customers of the bank gave me the way to carry the project
successfully.
There used to be interactive session also with the project guide.
He give me very careful
constructive help which helped me a lot and showed me a way to all the
difficulties and to
complete this project.

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 DATA ANALYSIS

 Data Analysis

 Overview of data

 Overall overview

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Data analysis
In this chapter efforts has been made to find the sector which suffered most and
the time taking to revive those sectors. It also focus on the new trade growth
for our country.

OVERVIEW OF THE DATA

GENDER FREQUENCY

MALE 64

FEMALE 36

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 CHART 1

GENDER OF RESPONDENTS

Male Female

INTERPRETATION
The total number of respondents are 100, out of which 64 are male and 36 are
female. Male respondent consists of 64% of the sample and female respondent
consists of 36% of the total sample.

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 TABLE 2
AGE OF THE RESPONDENT
AGE-GROUP FREQUENCY
0-20 28

20-35 30

35-50 22

50-65 20

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 CHART 2

Chart Title
35

30

25

20

15

10

0
0-20 20-35 35-50 50-65

Series 1Column1Column2

INTERPRETATION
The highest age group of respondent is from the 20-30 years of age group. After
that 28 respondents are from the age group of 0-20 and after that followed by
the age group of 35-50 with 22 respondents and at the end from the age group
of 50-65 leads to 20 respondents.

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 OVERALL OVERVIEW

The data collection can helps us to analyze the respondents view over the
different sectors of India. From the Respondents we conclude that overall our
trade deficit shows a positive responses to the different sectors. COVID plays a
vital role in Make In India.
The inter border dispute between India and China leads to mass violation and
disregard to the Chinese products and software companies and their services.

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CHAPTER-05

34
MY CONTRIBUTION TO THE BODY OF KNOWLWDGE

“Knowledge without practice makes only half an artist”. Knowledge is best

effective when it is both learnt & practiced. We get better clarity on the
concepts when we directly apply it to practical work environment.
As an intern in LUDIFU for 50 days, I learnt a lot of things which helped me
to gain a great experience of sales and marketing as well as of corporate world.
I learnt a basic knowledge of how the global pandemic effect the different
sectors and what are the ways to cure and revive it to their natural pace.
The most important part and best experience of the internship was giving me
opportunity to closely follow the bilateral agreement and their trade in current
situation. It helped me to actually observe and take into notice the whole
process. My contribution to the body of knowledge was to be a hardworking
and sincere intern in that organization.

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 CHAPTER 06

FINDINGS, SUGGESTIONS AND CONCLUSIONS

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 FINDINGS
 Majority of the respondent feels that the manufacturing
industries suffered the most.

 Lots of respondents observe Covid-19 as a chance to boost our

infrastructure.

 Respondents also see it as a key opportunities to promote Make In

India products and services.

 It has been witnessed that after a long period of more then 15 years, India
shows a positive growth in Balance of Payment.

 Export surpasses Import during the global pandemic.

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 SUGGESTIONS

Our service and manufacturing sector should focus on the growth and
development of the industry because the inter border conflicts with China and
the decrease in the import due to the global Covid-19 cases, the supply of
products and services decreases which provide an opportunity for the Start ups
and new firms to established them in a market.
We need to develop our own system to minimize the import growth.

38
 CONCLUSION

Though the Summer Internship Program was conducted for 60 days we the
interns had a best experience as a BUSINESS DEVELOPMENT for the
organization which is going to be an added advantage to future career growth.
We learnt to know how to analyze the different sector growth and interpretate
the data to find the best possible ways to tackle the adverse situations in today’s
scenario.

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 CHAPTER-07

SUMMARY OF THE PROJECT

 APPENDIX

 REFERENCE

 BIBLIOGRAPHY

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 Appendix

QUESTIONNAIRE

A STUDY ON IMAPCT OF COVID ON INTERNATIONAL

TRADE OF INDIA

NAME:

CONTACT NO:

E MAIL:

PROFESSION:

AGE:

 Which sector hampered most due to COVID?

I. Manufacturing
II. Telecom industry
III. Food processing
IV. Service Industry
 Which sector hampered most in terms of export?

I. Manufacturing
II. Refined Petroleum
III. Precious metals, gems
IV. Organic Chemicals

 Which sector hampered most in terms of Import?

I. Crude oil
II. Electronics
III. Automobile

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 IV. Medical and technical equipment

 Which sector emerges in the COVID-19?

I. Banking Sector
II. Artificial Intelligence
III. MSME
IV. Manufacturing sector

 How many merchandiser is needed in current scenario for

a firm?

I. 1-5
II. 5-10
III. Less then 15
IV. Other

 Any suggestions to uplift the export in India?

………………………………………….

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 BIBLIOGRAPHY

Website

 https://wikipedia.in

 http://commerce.gov.in

 http://dgft.gov.in

 http://wto.org

BOOKS:

Challenge and Strategy: Rethinking India's Foreign Policy.

Newpapers- The Guardian and The Hindu

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