Aditya ,Agresh

7/31/2019 Aditya ,Agresh

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INSTITUE OF PROFESSIONAL EDUCATION AND

RESEARCH

Foreign Trade Policy & its Implication

Presented to-Prof (Dr). Resham Chopra

Presented by-Aditya Jain

Agresh Jain


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What is Foreign Trade Policy

To become major player in world trade, overall development of

the countrys foreign trade is required.

Trade is not an end in itself, but a means to economic growth

and national development.

While increase in exports is of vital importance, there is also

need to facilitate those imports which are required to stimulate

our economy.

consistency among trade and other economic policies is

important for maximizing the contribution of such policies to

development


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Focus Initiatives of FTIs

Market diversification.

Technological up gradation.

Support to status holder.

Agriculture & Village industry. Handlooms.

Handicrafts.

Gems & jewelry.


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Continued

Leather and footwear.

Marine sector.

Electronics and IT hardware manufacturing industries.

Sports goods and toys. Green products and technologies.

Incentives for export from the north eastern region.


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Balance of Payment As per the Balance of Payment Manual (Fifth Edition), BOP

comprises current account, capital account, errors and omissions, and

change in foreign exchange reserves.

Export growth has decelerated in the third quarter of fiscal 2011-12.

Imports have remained high, partly because of continued highinternational oil prices.

Foreign institutional investment flows have declined, straining the

capital account and the rupee exchange rate.


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International Trade

World trade volume growth is expected to decelerate to 3.8% in

2012 as per the International Monetary Funds (IMF), World

Economic Outlook(WEO).

With the IMF moderating its growth projections of world output

to 3.3 % in 2012.

The emerging and developing economies are expected to grow

at a relatively better rate of 5.4%in2012.

import and export volume growths at 7.1% and 6.1%

respectively.


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Indias International Trade

Indias total merchandise trade increased over three-fold from

252$bn in FY 2006-792$bn in FY 2012.

Trade GDP growth ratio increased from 30.2% in FY 2006-

42.5% in FY 2012.

Exports GDP ratio increased from 12.3%in FY 2006- 16.3 in

FY 2012.

Share of India in world merchandising export wise has

increased in ranking wise.


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Top Five Nation (EXPORT)

UAE. 26$bn

USA. 25$bn

CHINA. 13$bn

SINGAPORE. 13$bn HONG-KONG. 9$bn


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Top Five Nation (IMPORT)

CHINA. 44$bn

UAE. 26$bn

SWITZERLAND. 23$bn

SAUDI ARABIA. 22$bn USA. 17$bn


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Relationship Between Trade and

Employment The trade and employment relationship shows that there are two

direct channels through which trade can affect employment.

The import of intermediate inputs may affect employment.

Increased exports have also a positive effect on the level ofoutput, tending to increase employment.

This is called the substitution effect.


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Key Indicators

Data Categories Units 2006-07 2007-08

2008-09

2009-09

2010-11

2011-12

GDP growth rate(C.P) % 16.3 16.1 12.9 14.7 18.8 16.1

Growth rate % 9.6 9.3 6.7 8.4 8.4 6.9

Saving rate % of 34.6 36.8 32 33.8 32.3 Na

Prices: Inflation (WPI) GDP 6.6 4.7 8.1 3.8 9.6 9.1

Inflation (CPI) % change 6.7 6.2 9.1 12.4 10.4 8.4


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India Exports


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India Imports


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Impacts of FTP

The effect of new Foreign Trade Policy on differentsectors

Gems and Jewellery

Leather Sector

Pharmaceuticals

Tea

Agriculture

Flexibility Offered to Exporters


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Conclusion

There has been some significant changes in import, specifically

high imports of petroleum products and machinery and

equipment.

The technology content of Indias trade is low by international

standards, but it has built up a strength in technology niches.

Indias high-tech manufactured exports are concentrated in

chemical and pharmaceutical industries.

Indian economy has not yet fully opened to international trade

and FDI as compared to emerging Asian economies and China.


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Thanking You

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Aditya ,Agresh