India is the largest democracy in the world. It is also the most populated nation, second to only China. Having said that, India’s contribution to the world in education, discovery, and knowledge is enormous. But what about foreign trade? Let’s understand India’s contribution to the world in terms of World Business.
India’s Foreign Trade in Goods
India is currently the tenth biggest economy on the planet and the quickest developing economy next just to China. Be that as it may, India’s contribution to the global business isn’t that noteworthy. India’s share in world exchange 2003 was only 0.8% when contrasted with other developing nations like China (5.9%). Hong-Kong (3.0%), Thailand (1.1%), Singapore (1.9%). India likewise falls behind in the sector of foreign investment in world business as well.
Indian export and import showcase there is a major economic achievement need for the nation. India represents only 0.8% of world exports. Owing to the faster growth attained at the external front, share of foreign trade in the country’s Gross Domestic Product (GDP) has significantly expanded from 14.6% in 1990-1991 to 24.1% in 2003-2004.
In outright condition, India’s export and contribution to world business have expanded from 606 crores in 1950-51 to 293367 crore in 2003-2004. Its imports have expanded from 608 crores in 1950-51 to 359108 crore in 2003-2004. Composition wise, textiles and garments, gems and jewellery, account for major economic activities for the country.
In many items like tea, pearls, precious and semi-precious stones, medicinal and pharmaceutical products, rice, spices, iron-ore and concentrates, leather and leather manufactures, textile yarns, fabrics garments, and tobacco India’s share is much higher and ranges between 3% to 13%.
India is the biggest exporter of basmati rice, tea, and ayurvedic items. Although India needs to import items like crude oil and oil based goods, capital goods (e.g. hardware) electronic merchandise, pearl, valuable and semi-valuable stones, gold and silver and chemicals constitute the majority of items of India’s imports.
Browse more Topics under International Business
- Introduction to International Business and its Benefits
- Contract Manufacturing, Licensing and Franchising
- Importing and Exporting
- Joint Ventures and Wholly Owned Subsidiaries
- Export Procedures and Documentation
- Imports Procedures and Documentation
- Foreign Trade Promotions: Incentives and Organisational Support
- International Monetary Fund (IMF) and World Trade Organisation (WTO)
- International Trade Institutions and Trade Agreements
India’s Trade in Services
There is enormous development in India’s foreign trade. The export of services has ascended from 68 crores in 1960-61 to 35758 crores amid 2004-2005.
Import has likewise raised from 43 crores in 1960-61 to 28,486 crore in 2004-2005 (comprising of travel, transportation, and insurance). The astounding factor is the change in the synthesis of service exports. Software and different administrations (commercial activities, STEM and business services) have risen as the fundamental classes of India’s export of services in world business.
India’s Trading Partners
India has eleven trade partners, which are, USA, UK, Belgium Germany, Japan, Switzerland, Hong-Kong, UAE, China, Singapore, and Malaysia. the USA holds the first position with 11.6% of an offer in India’s total trade.
India’s Foreign Investment
It is apparent that there has been an excellent increment in foreign investment flow into and from India. While the internal foreign investment has developed in excess of 750 times from just Rs. 201 crores in 1990-91 to Rs.1,51,406 crores in 2003-04, India’s Investments in foreign nations have expanded considerably more exponentially – around 4,927 times – from Rs. 19 crores in 1990-91 to Rs. 8,3,616 crores in 2003-04.
Solved Question for You
Question: India is the biggest exporter of which goods and which services are most demanded from India in the global market?
Answer: India is the biggest exporter of basmati rice, tea, and ayurvedic items. Software and different administrations (commercial activities, STEM and business services) are the services most in demand from India in the global market.