Foreign Trade - Its Changing Composition and Encouraging Scenario

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Foreign trade : Changing composition and encouraging scenario| |

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Foreign trade has played a crucial role in India's economy growth. The composition and direction of India's foreign trade has undergone substantial changes, particularly, after the liberalization process which began in the early 1990s. Our major exports now includes manufacturing goods such as Engineering Goods, Petroleum Products, Chemicals & Related Products, Gems & Jewellery, Textiles, Electronic Goods, etc. which constitute over 80 per cent of our export basket. On the other hand, major import items constitute capital goods and intermediates which not only support the manufacturing sector but also supply raw-materials for the export oriented units. Over the years, India's trade with countries of Asia & ASEAN and Africa has gone up substantially. Apart from that, India is now a major player in global trading system and all the major sectors of Indian economy are linked to world outside either directly or indirectly through international trade. Total Trade Of Exports And Imports Over The Years In Crore Rupees| |

Year| Exports| Imports| Total Trade | Trade Deficit |
2000-01| 209018| 230873| 434444| -27302|
2001-02 | 255137| 245200| 454218| -36182|
2002-03| 293367| 297206| 552343| -42069|
2003-04| 375340| 359108| 652475| -65741|
2004-05| 375340| 501065| 876405| -125725|
2005-06| 456483| 635013| 1091496| -178530|
2006-07| 571779| 840506| 1412286| -268727|
2007-08| 655864| 1012312| 1668176| -356448|
2008-09(P)| 766935| 1385503| 2072338| -538568|

India has much reason to celebrate, thanks to its performance in world trade. During December 2003, both imports and exports grew at unprecedented rates. While imports rose by 45%, exports increased by 43% Even though figures for January show a slight slow down by comparison for both exports (9% growth) and imports (18% growth), it does not take away...
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