IB PROJECTIB PROJECTON ON

INDO-GERMAN TRADEINDO-GERMAN TRADE

SUBMITTED TO:-SUBMITTED TO:-

Monika Singh mamMonika Singh mamSUBMITTED BY:-SUBMITTED BY:-• Manpreet SahniManpreet Sahni• Mitali NagMitali Nag• Nalini SharmaNalini Sharma• Noopur FalodNoopur Falod

INDO-GERMAN INDO-GERMAN RELATIONRELATION

India today ranks 8India today ranks 8thth amongst 10 most amongst 10 most important countries having trade important countries having trade with Germany. Germany today is the with Germany. Germany today is the 44thth largest trade partner of India. largest trade partner of India.

TRADE RELATIONSHIPTRADE RELATIONSHIP

Agenda for German-India Agenda for German-India partnership in 21partnership in 21stst century adopted century adopted by foreign ministers in 2000.by foreign ministers in 2000.

The Ten Point agreement: origin of The Ten Point agreement: origin of referencereference

Focused on economic, scientific & Focused on economic, scientific & cultural cooperation.cultural cooperation.

Global challenges were addressed.Global challenges were addressed.

AGREEMENTS B/W INDIA AGREEMENTS B/W INDIA & GERMANY& GERMANY

The First Point Agenda deals with:-The First Point Agenda deals with:-

Improving bilateral political Improving bilateral political relations.relations.

Expanding meeting and dialogues.Expanding meeting and dialogues.

Second Point Second Point AgendaAgenda

Issues of security policy & Issues of security policy & disarmament.disarmament.Commitment to worldwide Commitment to worldwide disarmament &disarmament &

Non-proliferation.Non-proliferation.

Third Point Third Point AgendaAgenda

Commitment to deepen & strengthen Commitment to deepen & strengthen economic ties b/w India & Germany.economic ties b/w India & Germany.

Relations in the field of science & Relations in the field of science & research to be strengthen.research to be strengthen.

Fourth Point Fourth Point AgendaAgenda

Science Research & Technology Science Research & Technology Cooperation: centerpiece of Indo-Cooperation: centerpiece of Indo-German relations in future.German relations in future.

Exchange of academics & students.Exchange of academics & students.

Five- Eight Point Five- Eight Point AgendaAgenda

Cultural relations.Cultural relations.

Broader & more comprehensive coverage of Broader & more comprehensive coverage of national media.national media.

Cooperation on the issues of environmental Cooperation on the issues of environmental protection.protection.

Nine-Ten Point Nine-Ten Point AgendaAgenda

Future-oriented.Future-oriented.Commitment to work Commitment to work together on reforming U.N. together on reforming U.N. systems.systems.

ECONOMIC RELATIONSECONOMIC RELATIONS

IGCC celebrated 50IGCC celebrated 50thth year anniversary year anniversary in 2006.in 2006.

India as country partner in India as country partner in HANNOVER FAIR signify strengthen HANNOVER FAIR signify strengthen economic relationship with Germany.economic relationship with Germany.

Mr. Manmohan Singh & federal Mr. Manmohan Singh & federal chancellor Angela Merkel agreed to chancellor Angela Merkel agreed to double trade volume to 20 billion double trade volume to 20 billion euros until 2012. euros until 2012.

TRADE VOLUME B/W TRADE VOLUME B/W INDIA AND GERMANYINDIA AND GERMANY

By the end of 2008 trade has reached 13.4 billion euros.By the end of 2008 trade has reached 13.4 billion euros. Trend shows that trade volume doubles to 10 billion Trend shows that trade volume doubles to 10 billion

euros by 2010.euros by 2010. Growth rate of 11% could be retained.Growth rate of 11% could be retained.

MILITARY, DEFENCE & MILITARY, DEFENCE & SECURITYSECURITY

Indo-German partnership adopted in Indo-German partnership adopted in 2121stst century. century.

Focus on fight against terrorism, still Focus on fight against terrorism, still the impact of security cooperation the impact of security cooperation remains low.remains low.

The overall trend of export from The overall trend of export from Germany is slightly rising.Germany is slightly rising.

GERMAN ARMS SALES TO INDIAGERMAN ARMS SALES TO INDIA

Germany is the 5Germany is the 5thth largest exporter of largest exporter of arms to India.arms to India.

Military acquisitions Military acquisitions from Germany from Germany include:include:

Type-209 submarineType-209 submarine Diesel engines Diesel engines DO-228 aircraftDO-228 aircraft

MAJOR SUPPLIERS OF MAJOR SUPPLIERS OF ARMS TO INDIAARMS TO INDIA

Foreign Trade Policy of Foreign Trade Policy of India India

Foreign trade propels economic Foreign trade propels economic growth & national development.growth & national development.

Primary purpose: stimulation of Primary purpose: stimulation of greater economic activity.greater economic activity.

Doubles share of global Doubles share of global merchandised trade.merchandised trade.

Efficient economic growth.Efficient economic growth.

STRATEGY OF FOREIGN STRATEGY OF FOREIGN TRADE POLICYTRADE POLICY

Promoting entrepreneurship, Promoting entrepreneurship, industrialization & tradeindustrialization & trade

Bringing down transaction costBringing down transaction cost Simplification of levies & dutiesSimplification of levies & duties Development : a global hub for Development : a global hub for

manufacturing trading and servicesmanufacturing trading and services Generating employment Generating employment

opportunitiesopportunities

EXIM POLICYEXIM POLICYEExim policy discussed under different xim policy discussed under different

export sectors:export sectors:

ServiceService AgroAgro Status holderStatus holder Hardware & Hardware &

SoftwareSoftware Gems & jewelleryGems & jewellery

Export clusterExport cluster SEZsSEZs Removal of Removal of

quantitative quantitative restrictionsrestrictions

Transaction cost Transaction cost reductionreduction

BALANCE OF TRADEBALANCE OF TRADE

Meaning:-Meaning:-

The difference between the value of The difference between the value of exports and imports of goods and exports and imports of goods and services is BOT.services is BOT.

BOT= Visible exports –Visible importsBOT= Visible exports –Visible imports

[[favorable BOT= exports – importsfavorable BOT= exports – imports

unfavorable BOT= imports- exportsunfavorable BOT= imports- exports]]

BALANCE OF PAYMENTBALANCE OF PAYMENT

BOP is the record of economic & BOP is the record of economic & financial transaction between a financial transaction between a country & rest of the world over a country & rest of the world over a specified period of timespecified period of time

Further Divided:Further Divided:

*Current Account*Current Account

*Capital Account*Capital Account

CURRENT ACCOUNT CURRENT ACCOUNT TRANSACTIONTRANSACTION

Merchandise Export Fob.Merchandise Export Fob. Merchandise Import Fob.Merchandise Import Fob. Export of non-financial serviceExport of non-financial service Investment income: export of Investment income: export of

financial servicefinancial service An unrequited transferAn unrequited transfer

CAPITAL ACCOUNT CAPITAL ACCOUNT TRANSACTIONSTRANSACTIONS

Autonomous capital Autonomous capital transactiontransaction

Accommodating financial Accommodating financial transactiontransaction

INDIA-GERMAN BALANCE INDIA-GERMAN BALANCE TRADETRADE

    1997-98 1998-99 1999-2000 2000-01 2001-02 2002-03

EXPORT 713971.25 77912.38 75329.20 87146.01 85290.05 101953.44

Growth(%)   9.13 3.32 15.69 -2.13 19.54

India's Total Export 1292777.00 1397531.6 1595617.70 2035710.20 2090179.80 2551372.80

Growth (%)   8.10 14.17 27.58 2.68 22.06

Share(%) 5.52 5.57 4.72 4.28 4.08 4.00

IMPORT 93963.75 90059.82 79775.20 80385.73 96723.83 116367.72

Growth(%)   4.15 -11.42 0.77 20.32 20.31

India's Total Import 1541762.80 1783318.60 2155284.40 2308727.60 2451997.20 2972058.60

Growth(%)   15.67 20.86 7.12 6.21 21.21

Share(%) 6.09 5.05 3.70 3.48 3.94 3.92

TOTAL TRADE 165360.88 167972.20 155104.41 167531.74 182013.88 218321.16

Growth(%)   1.58 -7.66 8.01 8.64 19.95

India's Total Trade 2834539.80 3180850.20 3750902.10 4344437.80 4542177.00 5523431.40

Growth(%)   12.22 17.92 15.82 4.55 21.60

Share(%) 5.83 5.28 4.14 3.86 4.01 3.95

TRADE BALANCE 22566.63 12147.44 4446.00 6760.28 11433.77 14414.28

India's Trade Balance -248985.80 -385787.00 -559666.70 -273017.40 -361817.40 -420685.80

Source: Federal Ministry of Commerce, India

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