Disadvantages Of Foreign Trade

India is fast emerging as a global leader, what with its vast, natural resources, and huge base of skilled manpower. Combined with cutting edge technology, Indian trade market is making its presence felt all across the world. Indian products and services are seen as of international standards and globally competitive. Trade in India has made good progress on liberalizing trade regimes and cutting tariffs since the recent times, when most of the countries started with reforms. Integrating with the global economy, India has recorded strong export growth to the United States and the European Union markets. Getting on with your intro to Indian trade, it is important to note that Indian government recognizes the need to implement additional reforms

Foreign exchange crunch made India close to defaulting on loans. The response was a slew of domestic and external sector policy measures partly prompted by the immediate needs and partly by the demands of the multilateral organizations, it was none other than the Finance Minister Dr. Manmohan Singh who gifted India with liberalization.

Objectives

After studying you should able to answer

1. Need and Importance of Foreign Trade, advantages and disadvantage of international trade , difference between foreign trade and home trade.

2. Structure of India foreign trade

3. Documents used in export trade and export procedure, different export promotion schemes

4. Different institutions for India foreign trade

5. Import procedure and documentation

6. India’s Exim policy and objectives.

1.2 Meaning of Foreign

In most countries, it represents a significant share of gross domestic product (GDP). While international trade has been present throughout much of history, its economic, social, and political importance has been on the rise in recent centuries .All countries need goods and services to satisfy wants of their people. Production of goods and services requires resources. Every country has only limited resources. No country can produce all the goods and services that it requires. It has to buy from other countries what it cannot produce or can produce less than its requirements. Similarly, it sells to other countries the goods which it has in surplus quantities. India too, buys from and sells to other countries various types of goods and services. Generally no country is self-sufficient. It has to depend upon other countries for importing the goods which are either non-available with it or are available in insufficient quantities. Similarly, it can export goods, which are in excess quantity with it and are in high demand outside.

Structure of India foreign trade

Trade between two or more countries is called foreign trade or international trade. This involves the exchange of goods between the citizen of two nations .when the citizens of one nations exchanged e goods and services with the citizen of other nation , it is called foreign trade for eg india trade with USA, U K, China