Internatoional Env Report

8/9/2019 Internatoional Env Report

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WHAT IS GLOBALIZATION???????

Globalization has many meanings depending on the context and on the person who is talking

about. Guy Brainbant: says that the process of globalization not only includes opening up of

world trade, development of advanced means of communication, internationalization of financialmarkets, growing importance of MNCs, population migrations and more generally increased

mobility of persons, goods, capital, data and ideas but also infections, diseases and pollution. The

term globalization refers to the integration of economies of the world through uninhibited trade

and financial flows, as also through mutual exchange of technology and knowledge. Ideally, it

also contains free inter-country movement of labour. In context to India, this implies opening up

the economy to foreign direct investment by providing facilities to foreign companies to invest in

different fields of economic activity in India, removing constraints and obstacles to the entry of

MNCs in India, allowing Indian companies to enter into foreign collaborations and also

encouraging them to set up joint ventures abroad; carrying out massive import liberalization

programs by switching over from quantitative restrictions to tariffs and import duties, therefore

globalization has been identified with the policy reforms of 1991 in India.

IMPACT OF GLOBALIZATION ON INDIA

Indian economy was in deep crisis in July 1991, when foreign currency reserves had plummeted

to almost $1 billion; Inflation had roared to an annual rate of 17 percent; fiscal deficit was very

high and had become unsustainable; foreign investors and NRIs had lost confidence in Indian

Economy. Capital was flying out of the country and we were close to defaulting on loans. Along

with these bottlenecks at home, many unforeseeable changes swept the economies of nations in

Western and Eastern Europe, South East Asia, Latin America and elsewhere, around the same

time. These were the economic compulsions at home and abroad that called for a complete

overhauling of our economic policies and programs.

India opened up the economy in the early nineties following a major crisis that led by a foreign

exchange crunch that dragged the economy 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 demand of the multilateral organisations. The new policy regime radically pushed

forward in favour of amore open and market oriented economy.


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Major measures initiated as a part of the liberalisation and globalisation strategy in the early

nineties included scrapping of the industrial licensing regime, reduction in the number of areas

reserved for the public sector, amendment of the monopolies and the restrictive trade practices

act, start of the privatisation programme, reduction in tariff rates and change over to market

determined exchange rates.

Over the years there has been a steady liberalisation of the current account transactions, more

and more sectors opened up for foreign direct investments and portfolio investments facilitating

entry of foreign investors in telecom, roads, ports, airports, insurance and other major sectors.

The Indian tariff rates reduced sharply over the decade from a weighted average of 72.5% in

1991-92 to 24.6 in 1996-97.Though tariff rates went up slowly in the late nineties it touched

35.1% in 2001-02. India is committed to reduced tariff rates. Peak tariff rates are to be reduced to be reduced to the minimum with a peak rate of 20%, in another 2 years most non-tariff barriers

have been dismantled by march 2002, including almost all quantitative restrictions.

INDIA BECOME GLOBAL

The implications of globalization for a national economy are many. Globalization has intensified

interdependence and competition between economies in the world market. These economic

reforms have yielded the following significant benefits: Globalization in India had a favorableimpact on the overall growth rate of the economy. This is major improvement given that Indias

growth rate in the 1970s was very low at 3% and GDP growth in countries like Brazil,

Indonesia, Korea, and Mexico was more than twice that of India. Though Indias average annual

growth rate almost doubled in the eighties to 5.9%, it was still lower than the growth rate in

China, Korea and Indonesia. The pick up in GDP growth has helped improve Indias global

position. Consequently Indias position in the global economy has improved from the 8 th position

in 1991 to 4th place in 2001; when GDP is calculated on a purchasing power parity basis. During

1991-92 the first year of Raos reforms program, The Indian economy grew by 0.9%only.

However the Gross Domestic Product (GDP) growth accelerated to 5.3 % in 1992-93, and 6.2%

1993- 94. A growth rate of above 8% was an achievement by the Indian economy during the year

2003-04.


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India's Export and Import in the year 2001-02 was to the extent of 32,572 and 38,362 million

respectively. Many Indian companies have started becoming respectable players in the

International scene. Agriculture exports account for about 13 to 18% of total annual of annual

export of the country. In 2000-01 Agricultural products valued at more than US $ 6million were

exported from the country 23% of which was contributed by the marine products alone. Marine

products in recent years have emerged as the single largest contributor to the total agricultural

export from the country accounting for over one fifth of the total agricultural exports. Cereals

(mostly basmati rice and non-basmati rice), oil seeds, tea and coffee are the other prominent

products each of which accounts fro nearly 5 to 10% of the countries total agricultural exports.

EXPORT

Export in itself is a very wide concept and lot of preparations is required by an exporter before

starting an export business. A key success factor in starting any export company is clear

understanding and detail knowledge of products to be exported. In order to be a successful in

exporting one must fully research its foreign market rather than try to tackle every market at

once. The exporter should approach a market on a priority basis. Overseas design and product

must be studies properly and considered carefully. Because there are specific laws dealing with

International trade and foreign business, it is imperative that you familiarize yourself with state,

federal, and international laws before starting your export business. Price is also an importantfactor. So, before starting an export business an exporter must considered the price offered to the

buyers. As the selling price depends on sourcing price, try to avoid unnecessary middlemen who

only add cost but no value. It helps a lot on cutting the transaction cost and improving the quality

of the final products. Exporting a product is a profitable method that helps to expand the business

and reduces the dependence in the local market. It also provides new ideas, management

practices, marketing techniques, and ways of competing, which is not possible in the domestic

market. Even as an owner of a domestic market, an individual businessman should think about

exporting. Research shows that, on average, exporting companies are more profitable than their

non-exporting counterparts.

MAINLY TWO DUTIES ARE IMPOSED ON EXPORT

CUSTOM DUTY


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Tax levied on imports (and, sometimes, on exports ) by the customs authorities of a country to

raise state revenue , and/or to protect domestic industries from more efficient or predatory

competitors from abroad . Also called tariff, duty is based generally on

the value of goods (called ad valorem duty) or upon the weight , dimensions , or some

other criteria of the item (such as the size of the engine , in case of automobiles ).

EXCISE DUTY

All goods that are produced or manufactured in india and are send to some other country for

export then on that goods excise duty is imposed.

WHY NEED TO EXPORT

There are many good reasons for exporting:

The first and the primary reason for export is to earn foreign exchange. The foreign

exchange not only brings profit for the exporter but also improves the economic

condition of the country.

Secondly, companies that export their goods are believed to be more reliable than their

counterpart domestic companies assuming that exporting company has survive the test in

meeting international standards.

Thirdly, free exchange of ideas and cultural knowledge opens up immense business and

trade opportunities for a company.

Fourthly, as one starts visiting customers to sell ones goods, he has an opportunity to

start exploring for newer customers, state-of-the-art machines and vendors in foreign

lands.

Fifthly, by exporting goods, an exporter also becomes safe from offset lack of demand for seasonal products.

Lastly, international trade keeps an exporter more competitive and less vulnerable to the

market as the exporter may have a business boom in one sector while simultaneously

witnessing a bust in a different sector.
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There are several methods to evaluate the export potential of a company

The most common method is to examine the success of a product in domestic market. It

is believed that if the products has survived in the domestic market, there is a good

chance that it will also be successful in international market, at least those where similar needs and conditions exist.

One should also evaluate the unique features of a product. If those features are hard to

duplicate abroad, then it is likely that you will be successful overseas. A unique product

may have little competition and demand for it might be quite high.

Once a businessman decides to sell his products, the next step is to developing a proper

export plan. While planning an export strategy, it is always better to develop a simple,

practical and flexible export plan for profitable and sustainable export business. As the

planners learn more about exporting and company's competitive position, the export plan

will become more detailed and complete.

OBJECTIVE

The main objective of a typical export plan is to:

Identifies what you want to achieve from exporting.

Lists what activities you need to undertake to achieve those objectives.Includes mechanisms for reviewing and measuring progress.

Helps you remain focused on your goals .

DETERMINING EXPORT PRICING

Export Pricing can be determine by the following factors:

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.


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Specialty value goods and gift items.

Credit offered.

Preference or prejudice for products originating from a particular source.

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

Unique value goods and gift items.

LETTER OF CREDIT

Letters of credit are often used in international transactions to ensure that payment will be

received. Due to the nature of international dealings including factors such as distance, differing

laws in each country and difficulty in knowing each party personally, the use of letters of credit

has become a very important aspect of international trade. The bank also acts on behalf of the buyer (holder of letter of credit) by ensuring that the supplier will not be paid until the bank

receives a confirmation that the goods have been shipped.

Letter of Credit is a payment term generally used for international sales transactions. It is

basically a mechanism, which allows importers/buyers to offer secure terms of payment to

exporters/sellers in which a bank (or more than one bank) gets involved. The technical term for

Letter of credit is 'Documentary Credit'. At the very outset one must understand is that Letters of


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credit deal in documents, not goods. The idea in an international trade transaction is to shift the

risk from the actual buyer to a bank. Thus a LC (as it is commonly referred to) is a payment

undertaking given by a bank to the seller and is issued on behalf of the applicant i.e. the buyer.

The Buyer is the Applicant and the Seller is the Beneficiary. The Bank that issues the LC is

referred to as the Issuing Bank which is generally in the country of the Buyer. The Bank that

Advises the LC to the Seller is called the Advising Bank which is generally in the country of the

Seller.

The specified bank makes the payment upon the successful presentation of the required

documents by the seller within the specified time frame. Note that the Bank scrutinizes the

'documents' and not the 'goods' for making payment. Thus the process works both in favor of

both the buyer and the seller. The Seller gets assured that if documents are presented on time and

in the way that they have been requested on the LC the payment will be made and Buyer on theother hand is assured that the bank will thoroughly examine these presented documents and

ensure that they meet the terms and conditions stipulated in the LC.

EFFECT OF GLOBALIZATION ON INDIAS EXPORT SECTOR

No doubt that in the age of globalization and liberalizations, Export has became of the most

lucrative business in India. Government of India is also supporting exporters through variousincentives and schemes to promote Indian export for meeting the much needed requirements for

importing modern technology and adopting new technology from MNCs through Joint ventures

and collaboration.

Export Sector of Indian Economy has improved immensely over the years and has earned US

$ 125 billion in the current fiscal year. The goods exported from India mainly include wide

variety of agricultural products, chemicals, jewelery, garments, leather goods and so on.

India has developed business relations with a number of foreign countries like the member

countries of SAARC, some Eastern European countries as well as African countries, Members of

EU. The impressive list of countries includes:

Russia


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UAE

USA

Hong Kong

UK

Japan

Germany

Singapore

Belgium

Malaysia

Netherlands

Bangladesh

Italy

Thailand

France

Australia

Belgium

The export sector of Indian economy has always delineated impressive growth in all the areas of

export, like the chemical industry in the financial year 2005-06 recorded US $ 12677.21million

from expots, whereas the export earning from gems and jewelery was US $ 13705.44million inthe same fiscal. The engineering industry has been performing consistently over the years in the

arena of exports as it secured the second position in terms of the earnings from exports in 2004-

05, amounting to US $ 10516.45million, which increased to US $ 14587.37million in the next

fiscal. The performance of textile industry has fluctuated a little as the earning of the textile


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industry from exports in the financial year 2004-05 was US $ 12204.71million which came down

to US $ 12017.46 million in 2005-06.

USA has turned out to be the most significant export partner of India and the export sector of

Indian economy earned approximately US $ 13265.60 million in 2006-07. UAE has stoodsecond only to USA as UAE contributed 9.7 out of the total Indian earnings from exports in

2006-07. UK and China has exchanged their positions in the current year as China's share among

the exports figure in India in 2006-07 has improved by 6.3 % in comparison to 2005-06. In 2004-

05 Belgium and Italy contributed substantially to the earnings from exports, with a contribution

of US $ 2442.09 million and US $ 2160.83 million respectively.

The major export products of India hail from the following divisions within the export sector

of Indian economy like:

Engineering Goods

Agricultural Products

Chemicals

Marine Products

Petroleum products

Leather Goods

Textiles

Plantations

Among the agricultural exports of India include Indian rice, raw cotton, cashew, sugar, tobacco,

spices, coffee, wheat and tea have become very popular in the international market on account of

their variety and excellent quality. The engineering industry serves to export electronic goods ,

transport equipments, iron and steel, and various machineries and the textile industry is engaged

in the export of ready made garments, jute, cotton yarn, carpets, woolen yarn, coir, artificial

fabrics and so on. Other significant export products include paints, rubber, iron ore, plastic,

pharmaceuticals


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The export barriers in India have been hampering Indian exports to a great extent and most of

such barriers have been announced by the European Union regarding certification requirements,

application of pesticides, dumping of waste products. But the most significant export barrier

faced by the Indian exporters is red tapism which is mostly accompanied by corruption.

However, the government of India has considered plans to liberate the Indian exporters from the

cumbersome paper works and simplify the required procedures.

The export sector of Indian economy made comprehensive progress over the last decade. The

exponential growth of the export sector of Indian economy can be attributed to the liberal

Government of India economic policy. Indian exports have an ambitious target of US 160 billion

in 2007-08. The achievement came to the Indian exports in the last fiscal despite the odds against

the exports, minimizing the gains. In the first two months of 2007-08 exports grew by 20.3%,

which was a little lower than the previous year over the same period a year ago.

The Government of India latest export policy for the exporters will help in stabilizing the export

growth levels attained in the 1st quarter of 2007-2008. Ores and minerals exports grew

moderately to 12.9% against 37.4% in 2005-06. Similar trend was also observed in the exports of

manufacturing sector. The exports of manufactured goods from India grew moderately by 15%

in the first quarter of 2007-2008 as compared to 21.2% in the last fiscal year. High value

commodities like engineering goods and rice registered very high growth rate in the 1st quarter

of this fiscal against the same period last year. The overall exports suggests that the Indian

exports grew considerably across all major exporting destinations. The Indian exports to

Pakistan, UAE and Italy showed remarkable growth in the first quarter of the current fiscal year.

The astronomical growth of the Indian export sector was led by the following industry -

Information Technology Information Technology Enabled Services

Telecommunications hardware

Electronics and hardware


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Pharmaceutical and biotechnology products

Consumer durables

Textiles

Construction machinery

Power equipment

Food grains

Iron and steel

Chemicals and fertilizers

The robust overall growth of export sector of Indian economy led to secondary growth of the

following economic parameters -

India's economy grew at 9.3% in quarter April-June and it was driven by manufacturing,

construction and services sector and agriculture sector

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

rate of 9.3% over the corresponding quarter of previous year

Exports grew by 18.11% during the 1st quarter of 2007-2008 and the imports shoot up by

34.30% during the same period

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

of July ' 07

The annual inflation rate was 4.45% for the week ended July 28, 2007

India's Balance of Payments is expected to remain comfortable

Merchandise Exports recorded strong growth

According to reports, productivity growth rate of Indian economy is estimated to be

around 8% and above until 2020


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At this stupendous growth of the export sector of Indian economy, it is expected that India will

become the second largest economy in the world after China.

Exporting items from India is as profitable as importing things to India. You can easily import

the traditional art and crafts of the country, of which you will find great variety and number.These items are in great demand in the western countries and good quality products sell for really

high prices. You can also export natural products like silk, flax seeds and jute fiber. These are

products that are already exported by India in large quantities.

India is a large exporter of aluminum and aluminum ore. Since aluminum takes a lot of

electricity to extract, India mainly exports the ore to other countries where power is cheaper.

Power is not abundant in India and there is a definite deficit in that area.

As mentioned earlier, India is a large exporter of handicraft and some clothing items also fall

within this category. India is known for providing some of the best embroidery works in the

world. Indian embroidery has various styles that are unique to the country and cannot be found

anywhere else. That is why they are prized highly by fashion designers all over the world. There

are also other traditional textiles and clothing that India exports in large quantities.

CLASSIFICATION OF EXPORT ITEMS

CATEGORY CONSTITUENTS

Food and Live Animals

1. Cereals and Cereal Preparations

a) Wheat

b) Rice

c) Others

2. Cashew Nuts Raw

3. Spices

4. Others


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Beverages and Tobacco

1. Tobacco, Unmanufactured

2. Others

Crude Materials, Inedible, except Fuels

1. Crude Rubber Incl. Synthetic and Reclaimed

2. Cotton

3. Jute

4. Wool and Other Animal Hair excl. Wool Tops

5. Manmade Fibres and Waste thereof

6. Synthetic Fibres suitable for Spinning

7. Matalliferrous Ores and Metal Scrap

8. Crude Fertilisers and Crude Minerals

9. Others

Mineral Fuels, Lubricants and Related

1. Petroleum Crude and Partly Refined

2. Petroleum Products

3. Others

Animal and Vegetable Oils and Fats

1. Vegetable oils, fixed

2. Others

Chemicals


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1. Chemical elements and compounds

2. Dyeing, tanning and colouring materials

3. Medicinal and Pharmaceutical Products

4. Fertilisers, manufactured

5. Others

Manufactured Goods Classified Chiefly by

1. Pearls, Precious and Semi-Precious Stones

2. Paper, Paperboard and manufactures thereof

a) Newsprint paper

b) Others

3. Textile Yarn, Fabrics, Made-up Articles and

Related Products

4. Iron and Steel

5. Non-Ferrous Metals

6. Manufactures of Metal, n.e.s.

7. Others

Machinery and Transport Equipment

1. Machinery, other than Electric

2. Electrical Machinery, Apparatus and Appliances

3. Transport Equipment

a) Railway Vehicles


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b) Others

ALTERNATIVE CLASSIFICATION OF EXPORT ITEMS

CATEGORY CONSTITUENTS

Primary Products

A. Agriculture and Allied Products 1. Tea

2. Coffee

3. Rice

4. Cotton Raw including Waste

5. Tobacco

6. Cashew including Cashew Nut Shell Liquid

7. Spices

8. Oil Meals

9. Fruits and Vegetables

10. Processed Fruits, Juices, misc. Processed Items

11. Marine Products

12. Sugar and Molasses

13. Meat and Meat Preparations

14. Others

B. Ores and Minerals 1. Iron Ore

2. Mica

3. Others


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Manufactures Goods

1. Leather and Manufactures

2. Chemicals and Allied Products

a) Drugs, Pharmaceutical and fine Chemicals

b) Others

3. Plastic and Linoleum Products

4. Rubber, Glass, Paints, Enamels and Products

5. Engineering Goods

6. Readymade Garments

7. Textile Yarn, Fabrics, Made-ups etc.

a) Cotton Yarn, Fabrics, Made-ups etc.

b) Natural Silk Yarn, Fabrics, Made-ups etc.

c) Others

8. Jute Manufactures

9. Coir and Manufactures

10. Handicrafts

a) Gems and Jewellery

b) Carpets (Handmade excluding Silk)

c) Works of Art (excluding Floor Coverings)

11. Sports Goods

12. Others


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Petroleum Products

Others

COMMODITY COMPOSITION OF EXPORTSOver the past decade, exports (measured in rupees) have grown by 21.7% on an average. Some

commodities have enjoyed much faster export growth than others. Given below is the export

performance, in Million US$, of some commodities during 1994-95 and its change in percentage

terms over levels in 1993-94.

Composition of India's exports

(Percentage shares)Commodity Group Apr-Sept Apr-Sept

1994-95 1995-96 1995-96 1996-97I. Agriculture & allied 16.0 19.2 16.1 20.61. Tea 1.2 1.1 1.1 1.02. Coffee 1.3 1.4 1.6 1.63. Cereals 1.5 4.7 3.5 4.15. Spices 0.7 0.7 0.7 0.96. Cashewnuts 1.5 1.2 1.3 1.37. Oil meals 2.2 2.2 1.5 2.18. Fruits & vegetables 0.7 0.7 0.7 0.69. Marine products 4.3 3.2 2.8 3.0II. Ores and minerals 3.8 3.7 4.0 3.7

11. Iron ore 1.6 1.6 1.8 1.413. Other ores and minerals 1.0 0.9 1.1 1.1III. Manufactured goods 78.1 75.4 77.8 73.514. Leather & manufactures 4.0 3.6 3.8 3.115. Leather footwear 2.1 1.8 1.2 1.116. Gems & jewellery 17.1 16.6 16.9 14.017. Drugs, pharmaceuticals & fine

chemicals

3.0 3.2 3.1 3.3

18. Dyes / intermediates & Coal tar

chemicals

1.8 1.5 1.6 1.6

19. Manufactures of metals 2.7 2.6 2.6 3.022. Primary & semi-finished iron &

steel

1.6 1.6 1.8 1.3

23. Electronic goods 1.6 2.1 2.0 2.424. Cotton yarn, fabrics, madeups etc 8.5 8.1 8.2 9.225. Ready made garments 12.5 11.6 12.0 11.326. Handicrafts 3.9 3.5 3.8 3.5


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IV. Crude & petroleum products 1.6 1.4 1.6 1.6V. Others & unclassified items 0.6 0.4 0.5 0.6Grand Total 100.0 100.0 100.0 100.0

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

GROWTH RATE OF EXPORTS OF SELECTED MANUFACTURED

PRODUCTS


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Product group Exports

1991-92

US $

million

Exports

2007-08

US $

million

CARG, 1991-92 to

2007-08 (%)

Primary & semi-finished iron &

steel

92.21 4157.51 26.88

Non-ferrous metals 105.38 3055.71 23.42

Iron & steel bar/rods 62.43 1293.04 20.85

Ferro alloys 72.53 1113.99 18.62

Machinery & instruments 585.76 8724.77 18.39

Manufactures of metals 487.81 7027.5 18.14

Transport equipment 500.11 7029.16 17.96

Inorganic/organic/agro

chemicals

201.88 2733.95 17.69

Electronic goods 267.21 3230.73 16.86

Residual chemicals & allied

products

79.2 934.29 16.68

Drugs, pharmaceuticals & fine

chemicals

633.46 7241.44 16.45

Dyes intermediates & coal tar

chemicals

319.31 2699.12 14.27

Paints/enamels/varnishes 91 657.21 13.15

Project goods 18.85 128.34 12.74

Machine tools 47.79 300.14 12.17

Residual engineering items 16.49 89.34 11.14

Cosmetics/toiletries 256.45 678.93 6.27


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Merchandise exports have been increasing quite rapidly in recent years .Between 2001-02 and

2007-08 manufactured exports have increased at the compound annual rate of growth (CARG) of

20%. But the share of manufactured goods in total exports has declined from 73.6% in 1991-92

to 63.6% in 2007-08.

The growth in exports has been interpreted as a success of the reforms process since 1991.

But as Table shows, more than 50% of the growth of exports during 1991-92 to 2007-08 has

been accounted for by engineering goods (39.1%) and chemicals and related products (15.2%).

Again within these two sectors, the products for which exports have been expanding rapidly are

primary & semi-finished iron & steel (CARG 26.88% between 1991-92 and 2007-08), Iron &

steel bar/rods (20.85%), Machinery & instruments (18.39%), Drugs, pharmaceuticals & fine

chemicals (16.45%) etc .

These are precisely the industries which were created and developed in the pre-reforms period

through active state intervention. Consider, for example drugs & pharmaceuticals. This industry

is considered to be one of the success stories of independent India. A conscious industrial policy

worked behind the development of the pharmaceutical industry in India. Among the instruments

used were regulation of foreign capital, promotion of indigenous enterprises, patent reforms,

public investments in manufacturing and R&D.

INDIAS EXPORT

From the above chart it can be seen that indias export has significantly grown from 2004-25 to

2008-09 and . the export sector in india has continuously grown from 2004-05 to 2008-09. In

50

90

130

170

210

2004-05 2005-06 2006-07 2007-08* 2008-09*

83.5

103.1

126.3

155

200

o n


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2004-05 the export was 83.5 USD billion dollar, it increased to 103.4 in 2005-06 and then it

increased to126.3USD dollar in 2006-07. In the year 2007-08 and 2008-09 also the export sector

in india is growing. There was a sharp rise in export from the year 2007-08 to 2008-09.

CONCLUSION

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. It is thus clear

that a globalising economy, while formulating and evaluating its domestic policy cannot afford

to ignore the possible actions and reactions of policies and developments in the rest of the world.

The future in very challenging for Indias export sector. Indian exporters managed to battle the

global economic crisis with aplomb to close the 2009-10 fiscal with shipments worth $176.5

billion, a bare 4.7% lower than the previous year. Though all exports have grown strongly in

recent months, many sectors are still in the red. During the recession time Indias export sector

fall sharply but still there are very untapped market by the export sector which they should look

upon for the future of export sector. Depending on one market will not yield them anything. TheIndian exporter should exposed to different markets so that what happen during economic crisis

will not happen in future.

Documents

Internatoional Env Report