International trading means export and import process between two different countries.
International trade policy is managed by ministry of commerce through DGFT (Directorate
General Foreign Trade) it is made for 5 years so government made some policies for the
betterment of their citizens and companies. Government take some decisions to promote free
trade policies to increase trade between countries. So the main objective of trading is to
improve our economy and make our country capable of doing healthy competition with other
countries and also provide employment. In previous time goods made in India were cotton
cloth, metals, utensils and so on their was only 2 routes which are available for trading that
was water and land route. India’s foreign trade at the time of independence: India faced a lot of
problem at that time due to British rule. Britisher’s used India’s raw material for their own use
due to which the growth of India’s economy become low . India’s foreign trade after
independence become much better the percentage of export and import got increased that
time India’s export of agricultural products got decreased because of high rise of Indian
population. In 1991 new changes takes place India started trading more goods and they expand
their industries before 1991 trade strategy were poor India look only on domestic industries.
The good impact of this new trading strategy was that growth of different industries takes place
more people got employment so 1991 was the time when India’ trading system brought good
image of India globally.
PARTNERS OF INDIA IN TRADING
3.UNITED ARAB EMIRATES
India’s highest import source is china. the relationship of India and china is very much strong.
So most of the things which imported by china in India is machineries, equipments, plastics
,steel etc India export is cotton ,ores, sound recorders , animal fat oils and so on
India and U.S trading
India’s 2 nd largest trading partner is U.S whereas U.S 9 th largest trading partner is India. India
and U.S trade don’t flourish from 3 to 4 years the main reason is that both the countries U.S
and India faced trade deficit which means India import more than they export so that India
don’t take any trade deal since 2018 and improving their strategy whereas U.S using tariffs
they impose tariffs 25% on aluminium and 10% on steel so India is the 4 th largest producer of
aluminium so India don’t get any profit from exporting aluminium to U.S . U.S also claims that
India copy their ideas, medicines, software’s due to which U.S companies don’t get profit in
India so they want patent regulation in India . U.S also wants to sell their dairy products in
Indian markets like milk, cheese, vegetables and so on
India export to U.S: metals, stone, mineral fuels, vehicles etc
And India import from U.S that is mineral fuels, aircraft, machinery, organic chemicals etc.
The main purpose of government to extend export major scheme made by government are :
1. MEIS : merchandise export from India scheme before this scheme there was 5 different scheme for different goods so that government decided to merge it into a single scheme and given the name MEIS and exporter or importer gets his money not in the form of cash but as a duty scrip’s.
2. SEIS : service export from India scheme so whatever services India export and whatever foreign currency we get we will get profit of 2 % to 5% of that currency so government provide different profits for different services.
3. The government added two more cities of Andhra Pradesh first one is Vishakhapatnam I and 2nd one is Bhimavaram in the list of town of export excellence both cities export seafood before adding Vishakhapatnam and Bhimavaaram the number of town of export excellence was 33 and now it is 35.
4.Two more ports are added for increasing export so they can also export so these are the some policies made by government in 2015 to 2020 the purpose of government is to increase export so more money they get so they can use it for developing those sectors which is not useful and make it productive.they made policies which are beneficial for their citizens and industrial growth so people get employment opportunity and the GDP rate increases so because of that the standard of living of the people are started improving . And also foreign trade policies minimizes war that means if the country taking part in trading so the relationship between them become good .