INDIA'S INCREASING FOREIGN TRADE DEFICIT

By

Recently the Ministry of Commerce and Industry has released India's foreign trade statistics for the last financial year 2018-19. According to them, in the year 2018-19, India's exports grew by 9 percent to about $ 331 billion. Although this is a record level of exports, it is well below the $ 350 billion export target. Similarly, in the last financial year, the country's imports also increased by about 9 percent to about $ 507 billion. That is, during the last financial year, the trade deficit increased to a record level of about $ 176 billion, which was $ 162 billion in 2017-18.
What is trade balance?
The difference between import and export is called Balance of Trade. When a country imports more than exports, it faces a trade deficit. That is, that country is not able to produce enough goods and services according to the demand of its people, so it has to import them from other countries. Conversely, when a country exports more than imports, it is called Trade Surplus status.
  • ·         In FY 2017-18, India did a total of $ 768 billion in trade ($ 303 billion in exports and $ 465 billion in imports) with around 238 countries and territories.
  • ·         India's trade deficit during this period stood at $ 162 billion. Out of these, India had trade surplus with 130 countries while there was trade deficit with about 88 countries.
  • ·         India's largest trade deficit is $ 63 billion with neighboring China. That is, trade with China is less in India's interest and more beneficial for China.
  • ·         Like India, India also has a high trade deficit with countries like Switzerland, Saudi Arabia, Iraq, Indonesia, South Korea, Australia, Iran, Nigeria, Qatar, Russia, Japan and Germany.
  • ·         As far as trade surplus is concerned, India's trade surplus with America is the highest ($ 21 billion). That is, we reduce imports from America and there are more exports. In this way, the balance of bilateral trade with the US is towards India. Trade with America is compatible with Indian economy.
  • ·         India has trade surplus with countries like Bangladesh, United Arab Emirates, Nepal, Hong Kong, Netherlands, Pakistan, Vietnam and Sri Lanka just like America.
  • ·         Although the US has the largest trade deficit in the world, the US is able to withstand it because its economy is the largest in the world and the dollar is held as a reserve currency all over the world.


Comments

Post a Comment

Popular posts from this blog

Teacher As: Critical Pedagogue

By
Education is not only a process of cognitive development. It is a process of overall development of the child. The whole teaching learning process consist with three important components i.e student, teacher and curriculum. In the process of curriculum construction, evaluation and feedbacks are an important aspect to redesign the curriculum. Evaluation cannot be made on the basis of academic achievement of the students. Teacher should play an important role in the construction of curriculum as well as transaction of curriculum. Thus there is a need that teacher should take initiative to evaluate the whole education system as a Critical pedagogue. It is an ability to evaluate our teaching and the practices prevailing in existing education system critically in relation to methods and practices adopted by the teacher to teach concern pedagogical subjects. Ira Shor defines “ Critical pedagogy is habits of thought, reading, writing and speaking which go beneath surface meaning, first impr...
Read more

ROLE CONFLICT PROBLEM AMONG WORKING WOMEN

By
Women of India have marked their significant presence in the world in various fields. They have been given the status of power and prestige in India.    Indian women has got much more significance in today’s developing times. Where until lately, they were shadowed by patriarchal dominance, the contemporary women in India have moved beyond all social boundaries to emerge as triumphant leaders of tomorrow. Not only has She taken up courageous roles in society, her own individuality as a ‘woman’ has now got an improvised meaning. The world has changed for females in India now. The daughters are pursuing successful ambitions in the male dominated corporate scenario and mothers are taking up flextime jobs to showcase their exceptional managerial talent. Today, our women have stepped out to become bread earners of the family. Although the trend is yet developing in India, The IT-BPO sector is becoming a female dominated industry in India with a significant number of capable a...
Read more

Rights and obligations of Issuer, Participant and Beneficial owner under the Depository Act, 1996

By
As per section 17 of depository Act the rights and obligations of the depositories, participants and the issuers whose securities are dealt with by a depository shall be specified by the regulations. Under the Depository Act, 1996 depository means a company formed and registered under the Companies Act, 1956, and which has been granted a certificate of registration by SEBI under sub-section (1A) of Section 12 of the Securities and Exchange Board of India Act, 1992 ). (Section 2(1) (e)) Work of Depository- The word ‘depositary’ is defined as “the party of the institution (company) receiving a deposit. A depository holds securities (like shares, debentures, bonds, Government Securities, units etc.) of investors in electronic form. Besides holding securities, a depository also provides services related to transactions in securities. It acts as a trustee of the owner since the securities are entrusted with him in trust. He is also the agent of the owner of the securities. Thus...
Read more