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MAJOR PROBLEM

INEXPORT SECTOR

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EXPORT

Defenition:-

Transferring of any good from one country to

another country in a legal way for the purpose oftrade.

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INDIANEXPORT -SECTOR

Agriculture product

Handicraft items

Cotton & readymade garment

Food

Furniture

Textile

Jewellery

Cosmetic goods

Footwear(leather products)

Medical appliances

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India exports its goods to some of the leadingcountries of the world such as UK, Belgium, USA,China, Russia, UAE,

In the past ten years, Indian exports have grown ata rate of nearly 22%. Some commodities haveenjoyed faster export growth than others

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MAJOR EXPORT ITEMSOF INDIA

cotton, textiles,

jute goods,

tea, coffee,

cocoa products, rice, wheat,

pickles, mango pulp, juices, jams, preservedvegetables etc.

medical appliances Petro-chemical product

Steel product

Leather goods

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MAJOR PROBLEMINEXPORT

There are few problems which need to be solvedbefore India makes a mark for itself in the exportsector. The Indian goods have to be of superiorquality. The packaging and branding should be

such that countries are interested to export fromIndia. At the same time India must look for potentialmarket to sell their goods. The government shouldframe policies which gives boost to the exports.

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CONT.

Subsidies introduce in agri sector in developednation

Govt. policy

Emerging china Indian rupee (appreciation)

Infrastructure

Poor transportation

Inadequate port Regional trade block

Lack of industry near coastal area

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AGRICULTURESECTOR

According to the government's agri-trade promotionbody, Agricultural and Processed Food Products ExportDevelopment Authority (APEDA), India's exports ofagricultural and floricultural products, fruits andvegetables, animal products and processed foodproducts was worth US$ 8.1 billion in 2008-09, anincrease of 13.88 per cent from US$ 7.11 billion in 2007-08.

Exports during April-December 2009-10 were worth US$54.16 million

India's agri-export turnover is expected to double in thenext five years, according to APEDA. Agri-exportturnover is set to rise to nearly US$ 18 billion by 2014.

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PROBLEMINAGRICULTURESECTOR

Lack of irrigation facilities

Lack of new technology

Seeds and fertilizers

Financial problem Migration of farmers

Public sector unit not followtransparent procedure in

export

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COTTON &TEXTILE

Cotton priced high in international market

Most buyers are in the US, UK and Europe, and theglobal recession has meant retail activity in the Westhas slipped 20-25%.

Productivity in Indian garment factories is at only 50% ofglobal standards,

Indian exporters are also at a disadvantage on the dutydrawback front. Duty drawback is the reversal of taxes

paid on the inputs used in garment manufacturing. Indiaoffers a duty drawback of 8% on exports while in Chinait is 17%, in Vietnam it is 15% and in Bangladesh it is14%.

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ACCORDINGTOECONOMYSURVEY 2009-10PROBLEMFACEDBY INDIANINTERNATIONALTRADE

Trade credit: Indian scenario:-

As a result of difficult financing conditions prevailingin the international credit markets and increasedrisk aversion by the lending counterparties, grossinflows of short-term trade credit to India declinedby 12.2 per cent to US$ 41.8 billion during 2008-09.Export credit as a percentage of net banking creditalso fell from 5.5 per cent as on March 28, 2008 to

4.6 per cent as on March 27, 2009 and further to4.1 per cent as on January 15, 2010

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STANDARDSTAKERS, NOTSTANDARDS

MAKERS

Developed countries strict rules on internationaltrade .

Sanitary and Phytosanitary Agreement (SPS)

Technical Barriers to Trade Agreement (TBT) EU requiring multiple certification and labeling

NAFTA makes own standard for trade in his area

Japans use of the IFOAM accreditation system as

a model for national organics regulations.

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