Q1. Breift overview of India’s foreign trade since independence?

Ans. Foreign trade of India consist detail for all the measure and steps taken by government since independence. Because after partition we have many thing which have to correct by economy to get proper attention of the growth. So here we have various points under below regarding various plan which implement by government to overcome the slowdown.

1. 1948-49 to 1950-51- the eve of planning: In that time we have import more than our exports as because we have to import capital goods to our country and make production from them and export from our country to other countries.

2. 1951-52 to 1955-56: First plan period: In this period we had average import value of order Rs622 Crores. Moreover if we have this much of imports then we also have lower the exports. Because in initial stage we have to setup industrialization in our country.

3. 1956-57 to 1960-61: Second plan period: In this stage import had been very huge due to setup of all the industries in our own country. Because on that time we don’t have enough sources to get machinery and other parts made in our own country.

4. 1961-62 to 1965-66- Third plan period: In this period we had exports of goods around Rs 747 crores and imports of Rs 1227 crores. In the same year we have war against our neighbors Pakistan and China which pushed us to import food products more in our country.

5. Devaluation of 1966 upto 1973-1974: In this country plan to make its export to be more as compare to past.

6. 1974-79 –fifth plan period: in this period we had huge hit by imports due to high demand of petro products, food products and fertilizers.

7. 1980 – sixth and seventh plan period: Another further increase in import of petroleum products which made another huge increase in trade deficit and imports more than export and ultimately. It was the difference which expanded worries of economy and finally India has to approach to IMF for big loan.

8. 1989-90: In this time period economy reached it high on exports as well as imports also. However in this period we had Gulf war which effected the economy’s growth. Ultimate we had increase trade deficit.

9. Eighth plan: In this period we had huge increase in exports and which lead to reduce the trade deficit.

10. Ninth plan, tenth plan and after: After so much of increase in everything we had recession in various economies and which also affected the India foreign trade too.

Q2. Roles of services exports in recent years in India’s composition.

Ans. Services sector is the most notable sector which is growing with huge growth in present conditions. From last few years service sector has huge growth that’s why every youth trying to

get job in MNC. Due to this economy also increased its GDP in terms of revenue and other sources which make economy better and increase the standard of living.

Like as we have various services sector company IT professionals, BPO and others. In this industry we have huge scope and huge income also. However this kind of sector has huge growth then youth also want to join these kinds of jobs. After implication of LPG in our country in 1991 by Dr. Manmohan Singh we had huge growth in our economy and we had enjoyed huge reserves in our country and we have various companies who are coming to our country and opening their offices and which ultimately increase the employment.

Today’s world India has big name in service sector due to its proper service and various options around the country and here we have huge human resources which is working around various MNC companies. In India some of renowned like TCS, WIPRO, and INFOSYS etc which are some biggest giant of service sector. In these companies youth finding various opportunities to grow and earn handsome money. Ultimately service sector has huge growth then it is directly relates to the huge income and income comes from various countries around the world and we have huge inflow from other countries in our country. This thing makes our economy to have huge foreign reserves in our country.

Service sector provides huge opportunities to our country that are developing in terms and developing country has to make sure that his youth are working in proper way and various parts of sectors. Moreover everybody has to be big person and so we have huge number of ways to opening various firms in our country who provides services to country like USA, UK etc.

Q3. Silent features of foreign trade policy 2009-2014.

Ans. In India we have very detailed foreign trade policy which was started from 2009-2014 for five year term. In this government makes various plans which are important to expand the business of foreign trade. This trade policy is called as EXIM policy which makes it very special. These schemes are implement after making some changes according to the that year’s requirement and its apply on 1st of april of every year. The first integral foreign policy is announced on 28 august 2009 which consist year 2009-2014.

Here we have some points which we have to follow while making the polices as given below.

1. While making the policies we have to make all operations should work properly and increase the performance on export front.

2. Its aim was to increase the goods and service sector to be increase double digit by 2014.3. This policy is made for the long term basis which can be increase the business of country

around the world and increase the market share of country in various products thru exporting them.

4. In this we have to take advantage of various incentives from the government as exporting goods from country to make promotion around the exporters.

5. Government to make some list of various incentives for that product which are produce in our country in huge terms. So that we can huge foreign currency as well.

6. After making different policies we have to make banking procedure to be simpler and more flexible.

Aims in general: First of all the we have to make different policies according to the various sectors of economy. As because we have to follow all departments who are working and increasing the GDP which helps to our economy.

Targets: In this we have some certain targets to achieve which increase all economic growth on proper way as per predefined way. In 2010-2011 we have US 200 Billion export as target and we have increase of 15% and thereafter 25% increase in sales.

EPCG Schemes: As every scheme has its own benefit. So here we have various schemes which play important role for promoting our domestic manufacturing to export their products. It also helps us to get more incentive by making huge increase in export thru pushing our domestic manufacturing to achieve sales.

Q4.A Export promotion council.

Ans. Export promotion council which aware exporters about their benefit to be get by increase exprts of their products and increase the GDP of their country. At present we have 20 EPC’s whose are representing various kind of products organizations of country. In this we have huge number of members who are mainly exporters. Each and every council is responsible for the export of their products to various countries and checking the feasibility of export to various regions of worlds. Here are some export councils as given below:

1. Engineering2. Overseas construction3. Electronics and computer software4. Plastics and linoleums5. Basic chemicals, pharmaceuticals and cosmetics.6. Chemicals and allied products.7. Gems and jewellery8. Leather9. Sports goods10. Cashew

11. Shellac12. Apparel13. Synthetic and rayon14. Indian silk15. Carpet16. Handicrafts17. Wool and woolens18. Cotton textiles19. Handloom20. Power loom

Q4 B. India trade promotion organization.

Ans. ITPO is refers to the organization which promote the trade of India around the world. It was first started as Trade development authority with Trade fair authority of India which was established on 1st January 1992. In this we have various promotion things which are playing very important role while expanding our domestic product.

ITPO is mainly doing various things around the world to promote the exports and trade of domestic manufacturing. While making promotion of goods we have to arrange various trade fairs and we have to invite various companies to our country and apart from this we have to encourage the domestic suppliers to go abroad and organize trade fairs and get foreign buyers from their country and increase our domestic exports and increase the revenue of country.

Q5. SEZ zones

Ans. Special Economic zones are those zones which are promoted by government for various sectors of manufacturing of products and goods/ services. In this we have huge opportunities for the trade and get maximum of foreign currency inward into our country. These areas are allocate for the push up the exports of country and push the domestic production to make various product to exported in all over the world. SEZ zones are announced in April 2000. The main objective of the SEZ is to make it export engine of economy to get maximum and increase the sales of goods and services.

SEZ zones very important part of every economy. By making this we have different opportunities of every product to be exported from our country. This is the basic initial part of every economy to encourage the foreign investors and domestic manufacturers and supplier to make their office and infrastructure and put their operation in the SEZ zones. So that they can enjoy different schemes which comes under the government part..

Here we have various SEZ zones which are already in operation in our country.

1. Nokia SEZ in Tamilnadu. (IT products and services)a. In the year 2006-07 to 2010-11the export from this SEZ company worth Rs 44749

crores was affected.b. In this plant 15043 persons are employed.c. In this plant total invested amount is Rs 2718.108 crores and out of which Rs 833.51

crores came from FDI which was very useful for the economy.d. In this direct employed person is around 20 thousand and the investment is worth

Rs 3784.03 Crores projected.2. Mahindra City SEZ Tamilnadu (Apparels and fashion, IT hardware)

Here we have some figures which are noticed under this plant.a. In this plant during five year we have exports worth 8868.92 Crores.b. While we have huge employment to 17523 persons in this plant.c. Total investment in this plant is worth 1652.70 Crores and out of which 191.27

Crores came from FDI.d. In this plant project employment is 57236 persons.

3. Apache SEZ development India private Ltd Andhara Pradesh(Footware SEZ)a. In this plant we had exports worth 600.20 crores in year 2006-07-2010-11.b. In this we had employment of 6362 person out of which we have 2367 as women

employees.c. This plant has total invested money of 275.88 crores and out of which 130.54 is thru

FDI.d. Project employment is about to 20000 persons.

Q6. Need and roles of focus market schemes?

Ans. Focus market schemes are those in which we have particular countries where we have strong tie ups and in that countries we have to make trade between each other. While doing trade between each other we offered low freight rates and other processing charges to be low from the shipping line part. Hence we have to make shipment as much as we can. Focus market schemes offers us various incentives and other benefits exporters to. While making incentives to the exporter’s government encourage exporters to make more and more exports and get maximum benefits. Moreover in this government also offers various opportunities to get incentives on per order value like as government give 2.5% of FOB value. So it will be good for exporters to increase their production and export goods to FMS countries.

However government encourages exporters and provides them more and more incentives on their exports orders. In addition they also make the export order tax free. In this we don’t have to pay any tax of any goods which is under the export order. So these also make the good’s cost which is exported to be minimum as possible.

Here we have some point which we have to remember while making export of goods.

1. In this we also have some terms which are comes under merchant trade. As we call this as third country trade.

2. Goods which are imported and exported to another country refer as third country export and in that we don’t have any tax and duties involved.

3. SEZ export of goods is monitored by the government official DTA units. So that we can have various statistics of goods exported to whom and how much.

4. Deemed exports5. Services exports6. Diamond and other precious stone exports.7. Gold, silver, platinum and other precious metal in any form.8. Ores and concentrates of all types of in all forms.9. All types of cereals10. Sugar and it’s all other forms.11. Crude/ petroleum oil and all other forms.12. Items which are prohibited and dangerous in any form.