International Trade in India

News Related to International Trade in India

• Honda 1.5L diesel Amaze launched in India - May 21, 2013

  Filed under: Transportation News

  Source: Transportation News

• India Agriculture Ministry Plans 5% Hike in 2013-14 Paddy Rice Procurement Prices - May 21, 2013

  India??s Agriculture Ministry has forwarded to state governments the suggestion by the Commission for Agriculture Costs and Prices (CACP) to increase the minimum support price (MSP) of paddy for the marketing year 2013-14 (October - September) by around Rs.60 per quintal (about $11 per ton) or abo

  Source: Oryza

• India: Second greatest mango region on the decline - May 21, 2013

  The Krishna district farmers in Andhra Pradesh, producers of mango varieties —Banginapalli and Chinna-rasaalu — are facing bad experiences every year. The district, the country’s second largest mango producer, is seeing its mango production area shrink on an annual basis as a result. According to.....

  Source: FreshPlaza

• India: Bengal plans increased onion production - May 21, 2013

  Availability of locally produced onions in West Bengal is set to improve starting this year.The State Government is planning to supply seeds at subsidised rates to farmers to grow onions in the kharif season (June-end October).The State currently produces onions only during the rabi season (mid November to.....

  Source: FreshPlaza

• just-food's research round-up: Baby food in central Europe, biscuits in India - May 21, 2013

  The latest batch of reports from the just-food research store includes baby food markets in central Europe, biscuits in India, and UK bread production.

  Source: Just Food

• China offers India a "handshake across the Himalayas" - May 21, 2013

  NEW DELHI (Reuters) - India and China will study new ways to ease tensions on their ill-defined border after an army standoff in the Himalayas, Chinese Premier Li Keqiang said on Monday on his first official foreign trip.Related StoriesChief Palestinian peace negotiator backs Kerry's effortsCouncil of Europe tells Putin of concern over Russian NGO lawU.S. says concerned with charges against Egyptian journalistsMonster tornado devastates area near Oklahoma CityLibya war weapons may be killing central Africa elephants - U.N.

  Source: Reuters

• India confirms presence at LIWF - May 21, 2013

  Wines of India has confirmed that it will be at this year's London International Wine Fair for the third year running.

  Source: Wine Business

• World War II Bike Maker in Overseas Sales Push: Corporate India - May 20, 2013

  World War II Bike Maker in Overseas Sales Push: Corporate India

  Source: Bloomberg

• India gripes over border, trade woes on Li's first foreign trip - May 20, 2013

  NEW DELHI (Reuters) - India's Prime Minister Manmohan Singh told visiting Chinese President Li Keqiang on Sunday a recent military standoff in the Himalayas could affect relations between the two countries as they looked to boost bilateral trade.Related StoriesInsight - Despite curbs, China's vast hot money triangle flourishesExclusive - Bangladesh factory banned by Wal-Mart still makes Wrangler shirtsMilitants kill 10 Iraq policemen in checkpoint attacksIndonesia's nationwide healthcare plan stumbles at first hurdleObama walks a fine line with Myanmar president's landmark visit

  Source: Reuters

• Pakistan army will be watching Sharif's cosying up to India - May 20, 2013

  ISLAMABAD (Reuters) - Pakistan's all-powerful military overthrew Nawaz Sharif 14 years ago and hustled him off into exile in handcuffs. Now he's back as prime minister-elect, with the army watching his every move, especially steps planned to ease tension with arch-rival India.Related StoriesInsight - Despite curbs, China's vast hot money triangle flourishesExclusive - Bangladesh factory banned by Wal-Mart still makes Wrangler shirtsMilitants kill 10 Iraq policemen in checkpoint attacksIndonesia's nationwide healthcare plan stumbles at first hurdleObama walks a fine line with Myanmar president's landmark visit

  Source: Reuters

• Times of India Film director Teja who in 2002 made the Telugu blockbuster Jayam - May 19, 2013

  HYDERABAD: Railways, they say is the lifeline of India and movie makers taking a cue from the line are making a beeline to Andhra Pradesh's railway stations with a camera crew in tow. The state which

  Source: Congoo

Business outline for India

Main Industry Sectors

India is the world's fourth agricultural power. Agriculture contributes to about 20% of the GNP and employs close to two-thirds of the active population. The main agricultural products are: wheat, millet, rice, corn, sugar cane, tea, potatoes and cotton.  India is also the second producer of cattle, third producer of sheep and fourth in fishing production. 

Coal is the country's main energy source (India is the third largest world producer of coal). In the manufacturing industry, textile plays a predominant role. In terms of size, the chemical industry is the second largest industrial sector (12% of the GNP).

The services sector is the most dynamic part of the Indian economy.  It contributes to more than half of its GDP, and it does not employ but a third of its active population.  The software sector, which grows rapidly, is boosting the export of services and modernizing the Indian economy.

Economic Overview

India is amongst the world's 10 largest economies. The average GNP growth rate was 9.4% in average over the period 2006-07. This growth rate dropped during the global recession, the crisis affected India by the increase of risk aversion, a withdrawal of foreign capital and the drop of global demand.  However, India was a country that quickly got out of the crisis, its growth was stimulated by private consumption and by the state's expenditures.  From 5.7% in 2009, the growth has jumped up and it is expected to reach 9.7% in 2010 according to the estimations. 

The government has established as its priorities to continue the reforms that will allow to sustain the growth, to modernize the economic structure and to fight against poverty.  Programs concerning jobs, health, education, infrastructures and rural communities have also been announced.  The pursuit of a re-balance in public finance is also projected, the objective is to bring the deficit to 5.5% of the GDP. 

India remains a poor country: the GDP per capita is low, almost 25% of the population still lives below the poverty line and the inequalities are very strong.

FDI in Figures

Thanks to its many assets, especially a high specialization in services, with skilled, English-speaking and inexpensive labor force, and a potential market of one billion inhabitants, India is a country that welcomes more and more foreign investment.  The inflow of FDI in India registered a record of  USD 40 billion in 2008, and the FDI has remained, since then, very stable.  In the context of the global economy crisis, the foreign investors tried to limit their exposition in the surging markets.  However, there was not a decline of FDI in India.  According to the UNCTAD report, India is placed in third position in terms of FDI inflows in 2009.

FDI Government Measures

The government has set up tax and non-tax incentives to establish new industrial entities in specific sectors, which include energy, ports, highways, electronics and software. The government has also created special areas dedicated to export, called export-processing zones (EPZs) or special economic zones (SEZs), to encourage foreign investment.
The central government development banks and state industrial development banks offer medium to long-term loans and sometimes invest their own capital in new projects.
However, the government has set sector-specific ceilings on foreign assets in certain industries, such as basic and cellular telecommunications services, banking, retail and civil aviation.
For more details visit: Investment Commission of India.

Country Strong Points

- A three-tiered democratic system that ensures a stable polical environment;
- a well developed administration and an independent judicial system;
- a vast geography making India a repository of resources;
- an unparallel resource of an educated, hard-working and skilled work force, which includs engineers, management personnel, accountants and lawyers;
- a ever growing consumer base making it one of the world's largest markets for manufactured goods and services;
- a dynamic and robust financial system consisting of a comprehensive banking network, a number of financial institutions both at the national and State levels as well as a vibrant financial market;
- an economy that will continue to grow despite the international economic crisis.

Country Weak Points

- The corruption (particularly at the federal level)
- political pressures;
- restricted FDI in certain sectors;
- the weakness of infrastructures;
- inadequate security & safety in certain areas.

Foreign Trade Overview

India was a protectionist state for a long time, but the country has become progressively more open to international trade.  It has recently signed free trade agreements with South Korea and the ASEAN, and has entered into negotiations with several partners (EU, MERCOSUR, Australia, New Zealand, South Africa). 

India recorded a high commercial deficit due to the price rise of raw materials which increased the import invoices.  In regards of exports, they have recorded a lower progression during the last recent years due to the rise of the rupee in relation to the dollar (most of the exports are drawn up in dollars) and the decline of the global demand.  During the economic crisis, exports dropped at a slower rhythm than imports, creating a reduction of the commercial deficit. 

The main trade partners of India are the European Union, the United Arab Emirates, China and the United States.