OMBIB-301
INTERNATIONAL TRADE,WTO
AND TRADE POLICY ISSUES
Unit 7:
Overview of India’s Foreign Trade
1
Structure
Introduction
Overview of India’s Foreign Trade
Export and Import performance of India
Direction of India’s Foreign Trade
Composition of India’s Foreign Trade
INDUSTRY WISE EXPORT PERFORMANCE
2
OVERVIEW OF INDIA’S FOREIGN TRADE
• India is presently known as one of the most important players in
the global economic landscape.
• Its trade policies, government reforms and inherent economic
strengths have attributed to its standing as one of the most
sought after destinations for foreign investments in the world.
• The integration of the domestic economy through the twin
channels of trade and capital flows has accelerated in the past
two decades which in turn led to the Indian economy growing
from Rs 32 trillion (US$ 474.37 billion) in 2004 to about Rs 153
trillion (US$ 2.3 trillion) by 2016. Simultaneously, the per capita
income also nearly trebled during these years.
• India’s trade and external sector had a significant impact on the
GDP growth as well as expansion in per capita income.
EXPORT AND IMPORT PERFORMANCE
OF INDIA
India’s trade from 2000-01 to 2016-17
US Dollar Billion
Year Imports Exports
2000-01 58 45
2001-02 56 45
2002-03 64 54
2003-04 80 66
2004-05 119 85
2005-06 157 105
2012-13 491 300
2013-14 450 314
2014-15 448 310
2015-16 381 262
2016-17 383 277
EXPORT AND IMPORT PERFORMANCE
OF INDIA
India Export
EXPORT AND IMPORT PERFORMANCE
OF INDIA
India’s trade from 1990-91 to 1998-99
Year Imports (CIF) Exports (FOB)
1990-91 501 332
1991-92 514 449
1992-93 720 548
1993-94 839 712
1994-95 1128 843
1995-96 1465 1085
1996-97 1707 1199
1997-98 1905 1327
1998-99 1999 1444
COMPOSITION OF INDIA’S FOREIGN
TRADE
Composition of foreign trade means major commodity or sectors in which
India is doing export and import.
Composition of Exports
• The Statistical analysis of a country’s product groups in its international
trade is referred to as Composition of Trade. The analysis carried out for
product groups exported is known as the Composition of Exports.
Composition of Imports
• The analysis carried out for product groups imported is known as
Composition of Imports.
INDUSTRY WISE
EXPORT
PERFORMANCE
8
1 Apparel Industry in India
Indian textiles and apparels have a history of fine craftsmanship and
global appeal. Cotton, silk and denim from India are highly popular
abroad, and with the upsurge in Indian design talent, Indian apparel
too has found success in the fashion centres of the world.
APPAREL EXPORT PROMOTION COUNCIL
• The Apparel Export Promotion Council (AEPC) is the official body of
apparel exporters that provides assistance to Indian exporters as
well as to importers/international buyers choosing India as their
preferred destination for sourcing garments.
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2 Carpet Industry in India
Carpet weaving is an ancient Indian tradition, with the industry
flourishing in the country 16th century onwards.
Today, India is the world's largest producer and exporter of handmade
carpets in terms of value and volume. Around 75–85 per cent of
carpets manufactured in India are exported.
Indian carpets are known worldwide for their excellent design,
fascinating colours and quality.
CARPET EXPORT PROMOTION COUNCIL
• The Carpet Export Promotion Council (CEPC) is the apex body of
exporters of hand-made carpets and other floor coverings in India.
• The Council assists exporters by identifying new markets, providing
financial aid, sponsoring participation in worldwide events,
arranging buyer-seller meets and resolving trade disputes.
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3 Cashew Industry in India
Cashew (Anacardium occidentale L.), a tree native of Eastern Brazil,
was introduced in India by the Portuguese nearly five centuries ago. In
India, cashew was first introduced in Goa, from where it spread to
other parts of the country. Initially, it found use in soil binding to check
erosion. Commercial cultivation began in the early 1960s and, over
the years, cashew became a crop with high economic value and
attained the status of an export-oriented commodity, earning
considerable foreign exchange for the country.
CASHEW EXPORT PROMOTION COUNCIL OF INDIA
• The Cashew Export Promotion Council of India (CEPCI) works to
promote the export of cashew kernels and CNSL.
• The council serves as an intermediary between importers of cashew
kernels and exporters who are members of the council. It also deals
with disputes on exports/imports arising due to quality standards and
breach of contractual obligations, among others.
• It undertakes numerous activities, such as organising global buyer-
seller meets as well as studies on nutritional aspects of cashew, and
providing support to cashew processors and exporters for improving
infrastructure
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4 Chemicals
Basic chemicals and their related products (petrochemicals, fertilisers,
paints, varnishes, glass, perfumes, toiletries, pharmaceuticals, etc.)
constitute a significant part of the Indian economy.
India is the sixth largest producer of chemicals globally and third
largest producer in Asia in terms of output. The country ranks third
globally in the production of agro chemicals and contributes around 16
per cent to the global dyestuff and dye intermediates production.
BASIC CHEMICALS, PHARMACEUTICALS AND COSMETICS
EXPORT PROMOTION COUNCIL
• The promotion of product groups such as dyes and dye
intermediates, basic inorganic and organic chemicals, including agro-
chemicals, cosmetics, toiletries, essential oils, incense sticks, castor
oil and its derivatives, is handled by the Basic Chemicals,
Pharmaceuticals and Cosmetics Export Promotion Council, which is
popularly known as CHEMEXCIL.
• The Council organises promotional events and fairs to help exporters
identify potential markets abroad and providing publicity and
marketing back-up.
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5 Coffee Exports from India
In India, coffee is grown in regions that receive 2,500–4,000mm rainfall
across more than 100 days, followed by a continuous dry period of a
similar duration.
Coffee growing areas in the country have diverse climatic conditions,
which are suitable for the cultivation of different varieties of coffee.
COFFEE BOARD OF INDIA
• The Coffee Board of India is engaged in the research, development,
extension, quality upgrade, market information, and domestic and
international promotion of Indian coffee.
• Since 2002, the board has been conducting the India International
Coffee Festival, a biennial event held in India in collaboration with
other industry stakeholders.
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7
Electronic and Computer Software Industry In
India
The IT & electronics industry is one of the fastest-growing industries in
India, both in terms of production and exports.
In fact, software development and IT-enabled services (ITeS) have
made India’s brand equity a force to reckon with.
ELECTRONICS AND COMPUTER SOFTWARE EXPORT
PROMOTION COUNCIL
• The Electronics and Computer Software Promotion Council (ESC)
was formed to provide a platform for India’s IT & electronics
industry.
• With exports to more than 200 countries, ESC has successfully
steered the direction of India’s electronics and software exports.
ESC offers a comprehensive database of industry companies, and
products and capabilities of all major players.
• The council facilitates import/export collaborations, joint ventures,
sub-contracting tie-ups, and technology transfers for industry
players.
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8 Engineering Goods Exports from India
Engineering is by far the largest segment in the Indian industry,
employing approximately four million skilled and semi-skilled workers.
The engineering sector has witnessed tremendous growth, led by
s i g ni f i cant i nvestments i n po w er pr o j e c t s a n i n f r a s t r u c t u r e
development
EEPC INDIA (FORMERLY ENGINEERING EXPORT PROMOTION
COUNCIL)
• EEPC India has more than 13,000 members, including small and
medium enterprises (SMEs) and trading houses.
• The export of engineering goods grew by 16.81 per cent year-on-
year to reach US$ 76.20 billion in FY 2017-18.
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9 Gem and Jewellery Export
The Indian Gems and Jewellery (G&J) sector is one of the largest in the
world, contributing around 29 per cent to the global jewellery
consumption.
The sector employs over 4.64 million employees and is home to over
300,000 gems and jewellery players.
GEM AND JEWELLERY EXPORT PROMOTION COUNCIL
• The Gem and Jewellery Export Promotion Council (GJEPC)
undertakes direct promotional activities, including joint participation
in international jewellery shows, sending and hosting trade
delegations, and sustained image-building exercises.
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10 Indian Handicrafts Industry & Exports
The handicrafts sector is important for the Indian economy as it is one
of the largest employment generators and accounts for a significant
share in the country’s exports. The state and regional clusters
contribute significantly to handicrafts export.
EXPORT PROMOTION COUNCIL FOR HANDICRAFTS
• The EXPORT PROMOTION COUNCIL FOR HANDICRAFTS (EPCH)
is the apex government body and operates under the administrative
control of the Ministry of Textiles, Government of India. EPCH has
the distinction of being considered a ‘model council’, a self-
sustaining body that self-finances all its promotional activities.
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11 Handloom Industry in India
Along with the artistry of weavers, the Indian handloom industry
demonstrates the richness and diversity of Indian culture. With over
4.3 million people directly and indirectly involved in the production, the
handloom industry is the second-largest employment provider for the
rural population in India after agriculture.
THE HANDLOOM EXPORT PROMOTION COUNCIL
• The Handloom Export Promotion Council (HEPC) is a statutory
body constituted under the Ministry of Textiles, Government of India,
to promote the export of all handlooms products such as fabrics,
home furnishings, carpets and floor coverings.
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12 Leather Industry in India
• Leather is one of the most widely traded commodities globally.
• The growth in demand for leather is driven by the fashion industry,
especially footwear.
COUNCIL FOR LEATHER EXPORTS
• The Council for Leather Exports (CLE) is an autonomous non-profit
organisation, which is entrusted with export promotion activities
and the development of the Indian leather industry. About 3,500
companies manufacturing/exporting leather and leather products
are members of the Council
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13 Pharmaceutical Exports from India
• The Indian pharmaceuticals market is the third-largest in terms of
volume and thirteenth-largest in terms of value.
• It has established itself as a global manufacturing and research hub.
• A large raw material base and the availability of a skilled workforce
give the industry a definite competitive advantage
PHARMACEUTICAL EXPORT PROMOTION COUNCIL
• The Pharmaceutical Export Promotion Council (PHARMEXCIL) was
established in 2004 by the Ministry of Commerce and Industry,
Government of India, to promote pharma exports.
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14 Indian Plastics Industry
• The Indian plastics industry made a promising beginning in 1957
with the production of polystyrene.
• Thereafter, significant progress has been made, and the industry
has grown and diversified rapidly.
• The industry spans the country and hosts more than 2,000
exporters.
PLASTICS EXPORT PROMOTION COUNCIL
• The Plastics Export Promotion Council (PLEXCONCIL) is the apex
government body responsible for the promotion of plastic exports.
PLEXCONCIL members comprise large - / medium - / small - scale
manufacturers and exporters.
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15 Powerloom Industry in India
• The powerloom industry has traditionally been a cornerstone of the
Indian economy in terms of foreign exchange earnings and
employment. Powerlooms contribute around 70 per cent of the total
jobs in the textile industry, employing around 6.5 million people.
POWERLOOM DEVELOPMENT AND EXPORT PROMOTION
COUNCIL
• The Powerloom Development and Export Promotion Council
(PDEXCIL) is the nodal agency for the development and promotion
of exports of powerloom products.
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16
Shellac and Forest Products Industry in
India
India produces a variety of non-timber forest/agricultural products
(NTFPs), and has a global footprint in the export of such produce.
SHELLAC AND FOREST PRODUCTS EXPORT PROMOTION
COUNCIL (SHEFEXIL)
• SHEFEXIL was formerly known as Shellac Export Promotion
Council, which had been working in partnership with the industry
since 1957 as the catalysing agency for the long-term development
and export promotion of shellac and lac-based products.
• India is the largest exporter of guar gum, sesame seeds and
shellac, and the second-largest exporter of medicinal plants in
the world.
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17 Silk Industry in India
With sericulture activities spread across 52,360 villages, the Indian silk
industry is one of the largest generators of employment and foreign
exchange for the country. India enjoys a unique global position in
terms of production of all commercially useful varieties of silk.
Indian Silk Promotion Council
• The Indian Silk Promotion Council (ISEPC) has initiated
programmes for growth and development of the silk industry.
ISEPC organises trade shows and fairs across the world to promote
trade with different countries. The Council also facilitates meetings
between exporters and potential customers.
• The Indian Silk Promotion Council (ISEPC) has initiated
programmes for growth and development of the silk industry.
ISEPC organises trade shows and fairs across the world to promote
trade with different countries. The Council also facilitates meetings
between exporters and potential customers.
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18 Spices Industry in India
India, known as the home of spices, boasts a long history of trading
with the ancient civilisations of Rome and China. Today, Indian spices
are the most sought-after globally, given their exquisite aroma, texture,
taste and medicinal value.
Spices Board of India
• The Spices Board of India works towards the development and
worldwide promotion of Indian spices. It provides quality control
and certification, registers exporters, documents trade information
and provides inputs to the central government on policy matters.
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19 Sports Industry in India
India’s sports goods industry is nearly a century old and has flourished,
driven by a skilled workforce. Being labour-intensive in nature, the
industry provides employment to more than 500,000 people. India’s
sporting goods are popular around the world and have made a mark in
the global sports goods market. The domestic industry exports nearly
60 per cent of its total output.
SPORTS GOODS EXPORT PROMOTION COUNCIL
• The Sports Goods Export Promotion Council (SGEPC) promotes
the export of sports goods and toys from India. SGEPC represents
the leading 200 manufacturers and exporters of sports goods and
toys in India.
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20 Synthetic And Rayon Textiles
India has a diverse and rich textile tradition. Contemporary Indian
textiles not only reflect the country’s rich and splendid past but also
cater to the demands of the modern day.
THE SYNTHETIC AND RAYON TEXTILES EXPORT PROMOTION
COUNCIL
• The Synthetic and Rayon Textiles Export Promotion Council
(SRTEPC) was set up in 1954 to extend all possible assistance to
Indian exporters of synthetic and rayon textiles and to overseas
buyers with business in India.
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21 Tea Industry
Indian tea is among the f i nest i n the w o r l d o w i ng to str o ng
geographical indications, heavy investments in tea processing units,
continuous innovation, augmented product mix and strategic market
expansion.
TEA BOARD OF INDIA
• The Board was set up under the Tea Act, 1953, and it started
functioning in April 1954.Its headquarters are in Kolkata, with 17
offices across India.In addition to developmental and regulatory
functions, the Tea Board of India undertakes direct promotional
activities, which include organising joint participation in international
fairs and exhibitions, arranging buyer-seller meets and sending and
hosting trade delegations.
• The Board also undertakes various market development activities
such as market surveys, market analysis, tracking of consumer
behaviour and dissemination of relevant information to
exporters/importers.
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22 Tobacco Industry in India
Indian tobacco, introduced by the Portuguese in the 17th century, is
appreciated worldwide for its rich, full-bodied flavour and smoothness.
It is now an increasingly well-known as well as respected commodity
in global tobacco markets and has found its way into cigarettes
manufactured in several countries.
India has an impressive and progressive profile in the global tobacco
industry and it is an important commercial crop grown here. India is
the second-largest tobacco producer and exporter in the world.
TOBACCO BOARD
• The Tobacco Board of India is a facilitator for tobacco growers,
traders and exporters. By creating synergies between these
stakeholders, the Board fosters a vibrant enterprise, with a deep
social conscience and strong national commitment.
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23 Wool and Woolen Textile Industry in India
India’s wool and woollen textile industry is the seventh-largest in the
world. India’s wool and woollen industry can broadly be divided into
10 major product categories: worsted yarn, woollen yarn, wool tops,
fabric, shoddy yarn, shoddy fabrics, blankets, knitwear, hand-made
carpets and machine-made carpets.
WOOL WOOLLENS EXPORT PROMOTION COUNCIL
• The Wool & Woollens Export Promotion Council (WWEPC)
participates in various international trade fairs and exhibitions, and
facilitates member visits and trade delegations.
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THANK YOU
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