Module 2: Background of India's Export.
Channel: GyaanShaala Education
Date: 2021-08-30

EXIM COURSE: https://www.youtube.com/playlist?list=PL8mmNg0gfaIZiykBYEfB34pOkxsc3IE5f

This session will cover Basic Steps to Export, Export Preliminaries, How to export, Marketing related issues, Where to Export, Pricing and Costing, FTP related issues, WTO Related Issues

The trade potential of a country depends on a number of parameters. Some of the major demand side parameters include income of the trading partners, exchange rate movements, price movements in domestic as well as foreign countries etc. On the other hand, supply side parameters affect cost of producing export products. Cost of inputs, managerial efficiency, incentives provided by government schemes etc. affect the competitiveness of export products. Other than these some qualitative factors like macro policy in home and partner countries, trade arrangements (in the sense whether the countries are members of Regional Trading Agreements (RTAs)), trade barriers both tariff and non-tariff etc. also affects trade potential of a region. Trade potential at the regional level within countries may not differ from that at the country-level as far as demand side parameters are concerned since national and international factors affects all the regions equally. But the supply side parameters may give rise to differences in competitiveness of regions with respect to potential export products. Depending on the availability of resources and skills cost of producing the same product may differ across regions. The “Make in India” initiative can support India’s manufacturing sector, backed by boosting domestic demand and further regulatory reforms.

Export is considered to be as an important instrument in the economic growth of any country. It not only improves the financial condition of a country, but it also adds to the foreign exchange reserves of a country thereby correcting its Balance of Payments position. It also facilitates efficient production of goods and services by gaining comparative advantage over other countries. India has remained the eighth largest exporter in commercial services in the world in 2016 with share of 3.4 per cent. This is double the share of India‘s merchandise exports in the world at 1.7 %. India‘s services sector registered an export growth of 5.7 % in 2016-17. During the period April-September 2017-18, growth in services exports was robust at 16.2 % but imports also rose by 17.4 %. Net services receipts rose by 14.6 % during this period.
WTO related issues,

In order to ensure smooth trading relations internationally and maximize global trade after Second World War, an international institution in the form of General Agreement on Tariffs and Trade (GATT) was setup. Its objective was to work for reducing tariff on international trade in goods and provide a forum for negotiation on trade disputes and trade related issues among nations. The GATT mandated for trade in goods. The WTO, which replaced GATT in 1995 mandated for trade in goods as well as services and issues affecting international trade. Hence, WTO has considerably greater influence on trade among nations. The present chapter discusses various provisions of WTO and its implications and influence on agricultural sector in India.

The WTO is a multilateral framework (an agreement among governments) for conduct of international trade in goods and services and also for protection of intellectual property rights, i.e., patents, copyrights, trademarks, etc and for discussion of trade related issues. The WTO has a set of multilateral agreements primarily on the rights and obligations (of governments) that prescribes for governments in formulation of rules, procedures and practices related to international trade.