International Nv

8/9/2019 International Nv.

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CLASS PRESETATION

ON

GLOBALIZATION AND ITSEFFECT IN INDIAS EXPORT

SECTOR

PRESENTED BY-

Komal Jeswani

Manish Kumar Yadav


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WHAT IS GLOBALISATION ?

The term globalization means International Integration.

It is a process through which the diverse world is unifiedinto a single society.

Opening up of world trade, development of advancedmeans of communication, internationalisation of financialmarkets, growing importance of MNC's, populationmigrations and more generally increased mobility of

persons, goods, capital, data and ideas


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GLOBALISATION


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WHY NEED TO EXPORT

to earn foreign exchange

to meet international standard

immense business and trade opportunities

to be more competitive

to meet international demand


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DUTIES IMPOSED ON EXPORT

CUSTOM DUTY

Tax levied on export by the customs authorities of

a country to raise state revenue

EXCISE DUTY

All goods that are produced or manufactured in india

and are send to some other country for export then onthat goods excise duty is imposed.


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DETERMINING EXPORT PRICING

Range of products offered. Prompt deliveries and continuity in supply. After-sales service in products like machine tools, consumer

durables Product differentiation and brand image. Frequency of purchase. Presumed relationship between quality and price. Specialty value goods and gift items. Credit offered.

Preference or prejudice for products originating from aparticular source

Aggressive marketing and sales promotion. Prompt acceptance and settlement of claims.

Unique value goods and gift items.


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LIST OF COUNTRIES WITH GOOD

BUSINESS RELATION

Russia

UAE

USA

Hong Kong

UK

Japan

Germany Singapore

Belgium

Malaysia

Netherlands

Bangladesh

Italy

Thailand

France

Australia

Belgium


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THE MAJOR EXPORT PRODUCTS OF

INDIA

Engineering Goods

Agricultural Products

ChemicalsMarine Products

Petroleum products

Leather GoodsTextiles

Plantations


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INDIAN EXPORT SECTOR WAS LED BY THE

FOLLOWING INDUSTRY ALSO

Information Technology

Information Technology Enabled Services

Telecommunications hardware

Electronics and hardware

Pharmaceutical and biotechnology products

Consumer durables

Construction machinery

Power equipment


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GROWTH OF EXPORTS OF MANUFACTURED GOODS

Sector Exports

1991-92

US $ million

Exports

2007-08

US $ million

Contribution

(1991-92 to 2007-08)*

%

Leather & leather

manufactures

1278.2 3433.38 2.45

Chemicals & related

products

1581.3 14944.95 15.20

Engineering goods 2256.57 36619.31 39.09

Textiles (excluding

readymade garments)

2512.46 9528.17 7.98

Readymade garments 2215.54 9496.69 8.28

Other manufactured

goods

3401.17 27128.86 26.99

Manufactured goods 13245.25 101151.4 100.00


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COMMODITY COMPOSITION OF EXPORTS

(Percentage shares)

Commodity Group Apr-Sept Apr-Sept

1994-95 1995-96 1995-96 1996-97

I. Agriculture &

allied

16.0 19.2 16.1 20.6

1. Tea 1.2 1.1 1.1 1.0

2. Coffee 1.3 1.4 1.6 1.6

3. Cereals 1.5 4.7 3.5 4.1

5. Spices 0.7 0.7 0.7 0.9

6. Cashewnuts 1.5 1.2 1.3 1.3

7. Oil meals 2.2 2.2 1.5 2.1

8. Fruits &

vegetables

0.7 0.7 0.7 0.6


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9. Marine products 4.3 3.2 2.8 3.0

II. Ores and minerals 3.8 3.7 4.0 3.7

11. Iron ore 1.6 1.6 1.8 1.4

13. Other ores and

minerals

1.0 0.9 1.1 1.1

III. Manufactured

goods

78.1 75.4 77.8 73.5

14. Leather &

manufactures

4.0 3.6 3.8 3.1

15. Leather footwear 2.1 1.8 1.2 1.1

16. Gems &jewellery

17.1 16.6 16.9 14.0

17. Drugs,

pharmaceuticals &

fine chemicals

3.0 3.2 3.1 3.3


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18. Dyes /

intermediates & Coal

tar chemicals

1.8 1.5 1.6 1.6

19. Manufactures of

metals

2.7 2.6 2.6 3.0

22. Primary & semi-

finished iron & steel

1.6 1.6 1.8 1.3

23. Electronic goods 1.6 2.1 2.0 2.4

24. Cotton yarn,

fabrics, madeups etc

8.5 8.1 8.2 9.2

25. Ready made

garments

12.5 11.6 12.0 11.3

26. Handicrafts 3.9 3.5 3.8 3.5

IV. Crude & petroleum

products

1.6 1.4 1.6 1.6

V. Others &

unclassified items

0.6 0.4 0.5 0.6

Grand Total 100.0 100.0 100.0 100.0


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Major Items Exported to USA (2006)Major Items Exported to USA (2006)

ORGANIC CHEMICALS 6%

IRON AND STEEL 5%

ENGINNERING GOOD &MACHINARY

15%

TEXTILES 36%

CUT &POLISHEDDIAMOND &JEWELLERY

38%


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Indias Trade with USAIndias Trade with USA

Imports fromUS

Exports to US

USD

Billion


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Service industry..

Indian software exports were a mere US $4millions in 1980

US $128 millions in 1990

US $12200 millions in 2003-04. Growing at a fast pace and now contributes more

than 50% to the GDP


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INDIAN IT EXPORT INDUSTRY

While indian exports of project oriented service grew by almost 18% in

2004 the worldwide market grew by 4.5%

indian companies currently export software services and product to 112

countries around the world

69% of the total IT export revenue from USA

185 of the Fortune 500 companies outsource IT services from india

emerging markets for IT Exports include Japan, Singapore and Australia,

Latin America , Eastern Europe


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YEAR EXPORT US DOLLAR EXCHANGE(RS

)

1980 90,290 7.86

1985 149,510 12.36

1995 406,350 17.50

1998 1,307,330 32.42

2000 2,781,260 44.94

INDIAS EXPORT BEFORE AND

AFTER GLOBALIZATION


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Growing ExportsGrowing Exports


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economy led to secondary growth of the following

economic parameters

GDP factor for the first quarter of 2007-08 was at Rs 7,23,132 crore, registering

a

growth rate of 9.3%

Exports grew by 18.11% during the 1st quarter of 2007-2008

India's FOREX reserves (excluding Gold and SDRs) stood at $219.75 billion at

the

end of July ' 07


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The implications of globalisation and its effect on indias export sector for a

national economy are many. Globalisation has intensified interdependence

and competition between economies in the world market. This is reflected in

Interdependence in regard to trading in goods and services and in movement

of capital. As a result domestic economic developments are not determined

entirely by domestic market and domestic market conditions. Rather, they are

influenced by both domestic and international trading and economic

conditions of both the country.

CONCLUSION


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Thank YouThank You

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International Nv