Foreign Trade - Its Changing Composition and Encouraging Scenario

1030 WordsAug 8, 20105 Pages
Foreign trade : Changing composition and encouraging scenario | | | | | Foreign trade has played a crucial role in India 's economy growth. The composition and direction of India 's foreign trade has undergone substantial changes, particularly, after the liberalization process which began in the early 1990s. Our major exports now includes manufacturing goods such as Engineering Goods, Petroleum Products, Chemicals & Related Products, Gems & Jewellery, Textiles, Electronic Goods, etc. which constitute over 80 per cent of our export basket. On the other hand, major import items constitute capital goods and intermediates which not only support the manufacturing sector but also supply raw-materials for the export oriented…show more content…
Except for the strong pre-Christmas overseas consumer demand, the December spurt in export growth has remained unexplained although the government was then quick to claim a “turn-around” in the export sector. India’s imports, on the other hand, continue to show a healthy growth, indicative of the general revival in industrial activity in the country this year. Imports during April-January 2003-04 were valued at $ 62 billion, representing an increase of 24.7 per cent over imports worth $ 49.667 billion during April-January 2002-03. High import growth coupled with moderate export growth this fiscal resulted in a widening of the trade deficit, which is the excess of imports over exports. The trade gap during April-January 2003-04 almost doubled to $ 14.43 billion from $ 7.566 billion during April-January 2002-03. Trade Performance | Year | Exports | Growth Rate | Imports | Growth Rate | Trade Deficit | | | | 1 | 2 | 3 | 4 | 5 | 6 | | | | | 2000-01 | 203571 | 27.6 | 230873 | 7.3 | -27302 | | | | 2001-02 | 209018 | 2.7 | 245200 | 6.2 | -36182 | | | Rs Crore | | 2002-03 | 255137 | 22.1 | 297206 | 21.2 | -42069 | | | | 2003-04 | 293367 | 15.0 | 359108 | 20.8 | -65741 | | | | 2004-05 | 375340 | 27.9 | 501065 | 39.5 | -125725 | | | |

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