India had a significant share of global exports in the early 20th century, but this declined steadily from 1950 to 1980, reaching a low of 0.4% before improving to around 1% by 1997. However, since the 2000s, India's exports have grown rapidly, reaching $252 billion in 2010-2011, with sectors like IT and pharmaceuticals driving growth. Various Indian governments have implemented policies to promote and diversify exports in order to reduce the trade deficit and dependence on foreign aid.

1. INDIA’S FOREIGN TRADE POLICY
HISTORY AND EVOLUTION
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2. INDIA- HISTORY
• Glorious Tradition
• Indian Spice and Cloth exported to East and West-
during 1920’s
• Colonial: Raw material exports and manufacturers
importing
• India’s Exports 300 Crores in 1920
• 5th Largest Exporting Nation- 1920’s
• 1947-48--- 400 Crores of Exports
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3. POST INDEPENDENCE
• Liberal Import Policy- Wartime shortages and to
help nascent industrial development
• Accumulated Sterling balances of Large external
aid
• Tighter Control on Sterling
• Forced exports as a priority in 1960’s
• Exports in 1st Five year Rs 962 crores
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4. POST INDEPENDENCE
• 977 Crores in 2nd Five year plan 1956-61
• Rising domestic demand and international
recession
• Change in Intl. trade pattern
• 1957 Imports was contained – only essentials
• World exports 1950’s Doubled
• India’s share in world exports
2.5%-in 948 to 1. 27% in 1958
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5. INDIA AND GLOBAL TRADE
India had a significant share in the world trade at
the time of independence. However, since then
there was a regular decline in India’s share in the
world exports till 1980. From 1950 to 1980 the
percentage declined from 2 to 0.4. It, how ever
improved to about 0.8 by 1997. It reached 0.83% in
2003 and rose to 1.45% in 2008.
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6. THE BREAK-UP OF FOREIGN TRADE IN TERMS
OF EXPORTS & IMPORTS (RS.CRORES)
Year Export Import BOT
1995-96 106353 122678 -16325
1996-97 85623 97111 -1488
1997-98 126286 151553 -25267
1998-99 101850 132447 -25267
2002-03 255137 297206 -42067
2003-04 291582 353976 -62394
2004-05 356625 481950 -125190
2005-06 456418 660408 -203990
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7. EXPORTS AS A % 0F NATIONAL
INCOME
YEAR IN %
1960-61 6.8
1970-71 3.8
1980-81 5.4
1990-91 7.2
1996-97 9.6
1997-98 8.4
1998-99 8.0
1999-00 8.5
2000-01 8.8
2001-02 8.7
2002-03 9.0
2007-08 17
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8. EXPORT STRATEGY
• Imports will increase and to finance them , we need
higher exports earning.
• It is not advisable to depend on external assistance
to finance imports.
• Debt-servicing burden is ever mounting,
necessitating increased export earning.
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9. INDIA’S INTERNATIONAL TRADE
 India accounts for 1.3 percent of world merchandise trade (2009)
 India ranks 21 among leading exporting countries in the world
(2009)
 Among leading importers, India is ranked 14 and accounts for 2
per cent of total global imports
 In respect of trade in commercial services India is placed in the
12th position among global exporters of commercial services
 India exported 87 billion dollars worth of commercial services
in 2009 www.StudsPlanet.com

10. INDIA – SURGING EXPORTS
 Total Exports during April- September (2011-12) topped $ 160
billion
 52 per cent growth registered
 Exports crossed target of $ 200 billion for 2010-11 to reach $ 252
Billion ( $41 per cent growth)
 IT software and IT enabled services exports touched $49 billion in
2010 rising from $2 billion in 1998
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11. SLIDE 11
 Mauritius has been the largest contributor towards FDI (42%)
 Singapore (9%), USA (7%), UK (5%), Netherlands (4%), Cyprus (4%), Japan (4%),
Germany, France and UAE are among the top ten investors
 Sectors attracting Highest FDI equity inflows are –
 Financial and non financial services (21%)
 Computer Software and Hardware (9%)
 Telecommunications (8%)
 Housing and Real Estate (7%)
 Construction activities (including roads & highways)(7%)
 Power (5%)
 Automobile Industry (4%)
 Metallurgical Industries (3%)
 Petroleum and natural gas (3%)
 Chemicals (2%)
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12. SLIDE 12
India-Regional Cooperation
 Regional Trading Agreements have been a very prominent
feature of the Multilateral Trading system
 India has signed free trade agreements with SAARC,
ASEAN , Singapore, South Korea, Sri Lanka and Bhutan,
 Negotiating FTAs with EU, EFTA, Japan, Thailand and
Bangladesh
 India is a member of the SAARC Regional Trading Bloc
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13. INDIA-REGIONAL COOPERATION
Regional Trading Agreements have been a
very prominent feature of the Multilateral
Trading system
India has signed free trade agreements
with SAARC, ASEAN , Singapore, South
Korea, Sri Lanka and Bhutan,
Negotiating FTAs with EU, EFTA, Japan,
Thailand and Bangladeshwww.StudsPlanet.com

14. FOREIGN TRADE POLICY
(2004-09)
OBJECTIVES
(i) to double our percentage share of global
merchandize trade within 5 years
(ii) to use trade expansion as an effective instrument
of economic growth and employment generation.
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15. ACHIEVEMENTS OF FOREIGN TRADE
POLICY (2004-09)
Looking back, we can say with satisfaction that the UPA
Government has delivered on its promise.
In the last five years ;
• our exports witnessed robust growth to reach a level of US$
168 billion in 2008-09 from US$ 63 billion in 2003-04.
• Our share of global merchandise trade was 0.83% in 2003; it
rose to 1.45% in 2008 as per WTO estimates.
• On the employment front, studies have suggested that nearly
14 million jobs as a result of augmented exports in the last five
years.
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