DIRECTION AND COMPOSITION OF

INDIA’S FOREIGN TRADE

Presented by :-
Satyendra Dhakre
MBA IInd Year
 INTRODUCTION

 Trade between two or more nations is called foreign trade or

international trade

 Foreign trade is also known as external trade.

Foreign
trade
transaction

Import Export
Net Exports
trade trade
 Foreign trade has played a crucial role in India s economy and
its growth

 The composition and direction of foreign trade has undergone

substantial changes particularly after the liberalization process
which began in early 1990’s.

 Over the years, India's trade with other countries have gone up
substantially. Apart from that, India is now a major player in
global trading system and all the major sectors of Indian
economy are linked to the world outside either directly or
indirectly through international trade.
 RESEARCH METHODOLOGY

Secondary data has been collected and used for the present research study.

Sources of Data

Secondary data was collected from internet, reference books, journals, articles,
publications and various printed material.

Tools for Data Analysis

Line Chart, Bar Diagram, Percentages and Proportions are used for data analysis
and interpretation

LIMITATIONS OF STUDY
Present research paper is based on available data of foreign trade.
Time span taken for this study is last decade.
 OBJECTIVE OF RESEARCH PAPER

To study the concepts of foreigntrade.

To analyze the composition of India’s foreign trade.

To analyze the direction of India’s foreign trade.

To analyze the growth of India in context of foreign trade.

 EXPORTS

 Exports means that we are selling commodities to other countries.

 At the time of independence our exports comprise of agricultural

products like tobacco, spices, raw materials of cotton and jute etc.

 Due to industrialization the proportion of raw materials in our exports

declined.
 DATA ANALYSIS

export in
crores
 Export Interpretation

Interpretation:
Export means the goods or commodities that we are selling to
outside countries.

The graphical presentation of India’s composite export is having

increasing trend.

It is also observed that the growth percentage over a previous year
is in double digit.

The highest growth rate ware found in the year 2010-11 that is
36% over previous year.

It means that India is taking good efforts for increasing their
export.
 IMPORTS

 It refers to goods that we buy from other countries.

 At times of independence India was an agrarian economy.

 Partition of our country has brought food shortage because wheat

growing regions vested with Pakistan.

 Hence India need to import in large quantities, food , cotton jute. Etc

 The development required setting up of industries modernization of

agriculture etc.
COMPOSITION OF IMPORTS

Composition of imports means goods that we are

buying from other countries
 Import in crores

Interpretation:
Import means the goods or commodities that we are buying from
outside countries.
The above graphical presentation shows composition of import in
India which is increasing year by year.
The percentage growth in import is also steadily increasing.
The import is increasing because few of the commodities that we
are having less p production and more consumption, for example
petroleum goods.
 FOREIGN TRADE

The foreign trade means the countries to which India exports its
goods and countries from which it imports. Thus the direction of
foreign trade consists of destination of our exports and sources of
our imports
INDIA’S FOREIGN TRADE DATA ANALYSIS
 Foreign trade in crores

Interpretation:
The foreign trade means the countries to which India exports its
goods and countries from which it imports.
 The graphical presentation shows increasing direction in foreign
trade
If we are taking about in terms of growth then there is constantly
increment in the foreign trade.
 The India’s foreign trade balance is in negative it means that
India is a trade deficit country.
Trade deficit situation is occurs only when import exceeds
export.
 MAJOR DESTINATIONS OF INDIA’S IMPORT
(APR-JAN 2012-13)

Destinations of India’s import means goods that we are buying from other
countries
Import in percentage

Interpretation:
A major destination of India’s Import means the goods or
commodities that we are buying from other countries.

 Major destinations of import are China, UAE, Saudi Arab,

Switzerland and Hong Kong. India’s maximum import comes from
China that is around 12%.
 FINDINGS AND SUGGESTIONS
India is a trade deficit country.
India’s major export contribution goes to USA and UAE.
India’s major import comes from China.
India’s major export includes manufacturing and engineering goods.
India’s import is more as compared to export.
India’s major share of export and import in petroleum goods.

SUGGESTIONS
To ensure a more equitable regional distribution in balance of trade.
Attain economic self-sufficiency by way of paying for imports through exports.
To reduce import and improve export so that India will have positive trade
deficit.
Government policies and political willingness seems to be a major step in this
direction.
Improving the competitiveness of goods in terms of price and quality to
penetrate the world market.
The prospects of India as a trade destination would be realized, if some of its
constraints could be overcome.
 CONCLUSION
India’s foreign trade has grown remarkably both in terms of value and quantity,
since the beginning of economic planning.

India’s export composition has transformed with the faster growth of

manufactured goods and the relative decline of agricultural and allied products.

Attaining economic self-sufficiency in the form of paying for imports through

exports.

Improving the competitiveness of its goods in terms of price and quality to

increasingly penetrate the world market.

Diversification of exports, especially in terms of heavy manufactures.

Realizing foreign trade as a major sector of the economy in terms of GNP.

As George Bernard Shaw is reputed to have said “We are made wise not by the recollection
of our past, but by the responsibility for our future”, and the future of India is bright indeed.