INDIAN FOREIGN TRADE
BY SHOAIB Sir
MAKING EDUCATION- AFFORDABLE,AVAILABLE & ACCESSIBLE
TRADE
● Trade means the voluntary exchange of goods and services.
● Trade may be conducted at two levels: international and national.
● International trade is the exchange of goods and services among
countries across national boundaries.
● Countries need to trade to obtain commodities, they cannot
produce themselves or they can purchase elsewhere at a lower
price.
VOLUME OF TRADE
● Volume of Trade The actual tonnage of goods traded makes up the
volume.
● However, services traded cannot be measured in tonnage.
● Therefore, the total value of goods and services traded is
considered to be the volume of trade.
BALANCE OF TRADE
● Balance of Trade Balance of trade records the volume of goods and
services imported as well as exported by a country to other
countries.
● If the value of imports is more than the value of a country’s
exports, the country has negative or unfavourable balance of trade.
● If the value of exports is more than the value of imports, then the
country has a positive or favourable balance of trade.
TRADE TO GDP RATIO
● TRADE TO GDP RATIO IS AN INDICATOR OF OPENNESS OF
ECONOMY
TRADE TO GDP STANDS PRESENTLY AT 46%
TRADE STATISTICS 2023-24
EXPORTS IMPORTS
GOODS $437 billion $677 billion
SERVICES $340 billion $177 billion
TOTAL $777 billion $854 billion
% OF GDP (21.5% of GDP) (23.6% of GDP)
EXPORT DATA
● The top exports of India are
a. Refined Petroleum ($86.2B),
b. Diamonds ($25.9B),
c. Packaged Medicaments ($19.5B),
d. Jewellery ($12.6B), and
e. Rice ($11.1B).
● It exports mostly to
a. United States ($82.9B),
b. United Arab Emirates ($31.6B),
c. Netherlands ($17.6B),
d. China ($15.3B),
e. Bangladesh ($13.8B).
In 2022, India was the world's biggest exporter of Diamonds ($25.9B), Rice ($11.1B)
AGRICULTURE TRADE
2023-24
EXPORTS IMPORTS
$48 billion $32 billion
IMPORT DATA
● The top imports of India are
a. Crude Petroleum ($170B),
b. Coal Briquettes ($58.7B),
c. Gold ($35.8B),
d. Petroleum Gas ($32B), and
e. Diamonds ($26.1B).
● It imports mostly from
a. China ($110B),
b. UAE ($51B)
c. US ($48.5B),
d. Saudi Arabia ($46.2B),
e. Russia ($40.4B).
● In 2022, India was the world's biggest importer of Coal Briquettes ($58.7B), Diamonds
($26.1B), Palm Oil ($11.1B), Mixed Mineral or Chemical Fertilizers ($7.88B), and Nitrogenous
Fertilizers ($7.37B).
TRADE TO GDP RATIO
● India is gaining market share in global exports of goods and services. Its
share in global goods exports was 1.8 per cent in 2023-24, against an average
of 1.7 per cent during FY16-FY20.
● INDIA’S SERVICES EXPORTS CONSTITUTE 4.4 % OF WORLD’S
COMMERCIAL EXPORTS IN 2022
● India is the top remittance recipient country globally, with remittances
reaching a milestone of USD 120 billion in 2023.
●
TRADE STATISTICS
APR-SEP 2024
FOREIGN EXCHANGE
RESERVES OF INDIA
