There is a clear evidence of existence of trade dating back to atleast 9,000 years ago. Today international trade has become the heart of global economy. International trade has led to the development of industrial world and prosperity of the society. International trade gives a country a chance for comparative advantage. It encourages a country to produce more products that it can produce effectively, efficiently and at the lowest opportunity cost.
The growing turmoil in Middle East is likely to impact the growth of exports of India as Middle East, European Union, Russia and Japan are the major consumers of the Indian exports. These markets account for over 20 per cent of the total Indian exports.
However, despite the bleak situation hopes hinges on the ‘Make in India’ campaign and favorable business environment. The advent of this campaign may give a much required boost to the export scenario in the coming future. This campaign launched by government aims at attracting global investment and propel major sectors including textiles, automobile, chemicals etc. The overall export scenario nevertheless depends on the revival of global economy as certain markets look unpropitious. Special Economic Zones (SEZs) contribute to 23 per cent of the country’s total exports. However, these SEZs are facing problems and need revival for better performance.
Countries trade with each other when there is a scarcity of resources. To satisfy the needs and wants, finished and unfinished goods are exported. By exporting these scarce resources the countries can exploit the opportunity for trade and achieve economies of scale.
Exports in India stand at 23,950 USD Million in March of 2015. It has increased from 21,545.33 USD Million in February of 2015. The average exports from India equaled 4,252.46 USD Million from 1957 until 2015. The exports in India are reported by the Ministry of Commerce and Industry, India. India’s key exports include Agricultural, petroleum, gems and jewelry, pharmaceutical, machinery and readymade garments. India has ambitious plans to boost exports to 900 USD billion by 2019-20. The dynamics of global trade would influence how this target is reached. The growth and macroeconomic conditions play a major role in defining the phenomenon of exports.
There is a gradual slowdown witnessed in the growth of Indian exports of goods and services. These could be considered as warning signals for the policy makers to incorporate policies and make amends to the current processes to produce desirable results. The exports must be given much required boost by implementing effective strategies and employ skilled labour. India needs to catch the pace of market because it has country like China as a competitor in export business. The global trade scenario is changing rapidly and it would be certainly difficult for country that do not adapt to the pace.
Import and export could be considered to be backbone for nations to fulfill their requirements and needs. Not every country would be self-sufficient in itself. This lack of self-sufficiency leads to dependency for resources from other countries. Every country is endowed with certain resources that other countries may lack. Export and import helps the nation to serve its domestic base as well as the affluent international consumer base. Small, medium and big businesses rely heavily on the import and export to supply to their consumers.
Countries rely on import and export because the products this way can be bought at comparatively lower rates. The regulations and trade policies have undergone numerous changes to come up with a superior and advantageous policy.
Better import and export is likely to increase the sales as the market for the goods expands and provides better commodities. Another advantage of import and export is that it is a platform to create brand awareness on a global level and increase the recognition of the brand and company internationally. Increase in sales in turn increases overall jobs in the market. There is always a high probability that the businesses and individual consumers end up benefitting from international trading. The products available this way could be bought at better prices and helps to increase the standard of living.
India’s competitive advantage is the innovation and availability of labour. Innovation can bring products faster to the market and could be traded with other countries for advancing the economy. Rules and regulations under international trading help the countries export and import any good or commodity in legitimate fashion. International trading is an excellent platform where the domestic producers can serve the international consumers.
Export and import of commodities is bound by different regulations set as per the authorities in the respective countries. The legal restrictions applied are to benefit the nation and the consumers.
International trading could involve both import and export of raw materials such as Agricultural Products, steel, glass, aluminum, wood etc. as well as finished goods such as furniture, automobiles, clothing etc. Additionally, the countries also export and import partially finished goods which could be later customized and completed in the buyer country. This final product is further used by the buyer country to sell in the domestic market or to export to other country. International trading could be understood as a chain of buying and selling commodities for benefitting consumers and the economy as a whole.