Explain the India’s position in world business.

1. India’s Foreign Trade in Goods: India’s exports and imports constitute major economic achieving for the country. India accounts for 0.8% of world exports. The share of foreign trader in the country’s across domestic product has increased from 14.6% in 1990-91 to 24.1% in 2003-2004. In absolute terms, India’s exports have increased from 606 crore in 1950-51 and 293367 crore in 2003-2004. Its imports have increased from 608 crores in 1950-51 to 359108 crore in 2003-2004. Composition wise, textiles and garments, gemus and jewellery, engineering products and chemicals and related products and agricultural and allied products are India’s major items of exports. In many items like tea, pearls, precious and semi precious stones, medicinal and pharmaceutical products, rice, spices, iron-ore and concentrates, leather and leather manufactures, textile yarns, fabrics garments and tobacco India’s share is much higher and ranges between 3% to 13%. India is the largest exporter of some commodities like basmati rice, tea and ayurvedic products. India has to import products like crude oil and petroleum products, capital goods (e.g. machinery) electronic goods, pearl, precious and semi-precious stones, gold and silver and chemicals constitute major items of India’s imports.

2. India’s Trading Partners : India has eleven trading partners comprising of USA, UK, Belgium Germany, Japan, Switzerland, Hong-Kong, UAE, China, Singapore and Malaysia. Among all these trading partners, USA accounts for first position with 11.6% of share in India’s total trade.

3. India’s trade in services : There is tremendous growth in India’s trade services. Export of services has risen from 68 crore in 1960-61 to 35758 crores during 2004-2005.

Import has also risen from 43 crores in 1960-61 to 28,486 crore in 2004-2005 (Comprising of foreign travel, transportation and Insurance). The remarkable thing is the change in the composition of service exports. Software and other miscellaneous services (including professional, technical and business services) have emerged as the main categories of India’s exports of services.

4. India’s Foreign Investment : India’s foreign investment both inward and outward have considerably increased. While the inward foreign investments have grown more than 750 times from Rs. 201 crores in 1990-91 to Rs. 151406 crore in 2003-2004. India’s investment abroad have increased by 4927 times i.e. from Rs. 19 crores in 1990-91 to Rs. 83616 crores in 2003-2004.