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CLASS PRESETATION

ON
GLOBALIZATION AND ITS
EFFECT IN INDIA’S EXPORT
SECTOR
PRESENTED BY-

Komal Jeswani
Manish Kumar Yadav
WHAT IS GLOBALISATION ?

 The term globalization means International Integration.

 It is a process through which the diverse world is unified


into a single society.

 Opening up of world trade, development of advanced


means of communication, internationalisation of financial
markets, growing importance of MNC's, population
migrations and more generally increased mobility of
persons, goods, capital, data and ideas
GLOBALISATION
WHY NEED TO EXPORT
 to earn foreign exchange

 to meet international standard

 immense business and trade opportunities

 to be more competitive

 to meet international demand


DUTIES IMPOSED ON EXPORT
CUSTOM DUTY

Tax levied on export by the customs authorities of


a country to raise state revenue

EXCISE DUTY

All goods that are produced or manufactured in india


and are send to some other country for export then on
that goods excise duty is imposed.
DETERMINING EXPORT PRICING
 Range of products offered.
 Prompt deliveries and continuity in supply.
 After-sales service in products like machine tools, consumer
durables
 Product differentiation and brand image.
 Frequency of purchase.
 Presumed relationship between quality and price.
 Specialty value goods and gift items.
 Credit offered.
 Preference or prejudice for products originating from a
particular source
 Aggressive marketing and sales promotion.
 Prompt acceptance and settlement of claims.
 Unique value goods and gift items.
LIST OF COUNTRIES WITH GOOD
BUSINESS RELATION

 Russia
 Netherlands
 UAE
 Bangladesh
 USA
 Italy
 Hong Kong
 Thailand
 UK
 France
 Japan
 Australia
 Germany
 Belgium
 Singapore
 Belgium
 Malaysia
THE MAJOR EXPORT PRODUCTS OF
INDIA
Engineering Goods
Agricultural Products
Chemicals
Marine Products
Petroleum products
Leather Goods
Textiles
Plantations
INDIAN EXPORT SECTOR WAS LED BY THE
FOLLOWING INDUSTRY ALSO

Information Technology
Information Technology Enabled Services
Telecommunications hardware
Electronics and hardware
Pharmaceutical and biotechnology products
Consumer durables
Construction machinery
Power equipment
GROWTH OF EXPORTS OF MANUFACTURED GOODS
Sector Exports Exports Contribution

1991-92 2007-08 (1991-92 to 2007-08)*

US $ million US $ million %

Leather & leather1278.2 3433.38 2.45


manufactures
Chemicals & related1581.3 14944.95 15.20
products
Engineering goods 2256.57 36619.31 39.09
Textiles (excluding2512.46 9528.17 7.98
readymade garments)
Readymade garments 2215.54 9496.69 8.28
Other manufactured3401.17 27128.86 26.99
goods
Manufactured goods 13245.25 101151.4 100.00
COMMODITY COMPOSITION OF EXPORTS
(Percentage shares)
Commodity Group Apr-Sept Apr-Sept
1994-95 1995-96 1995-96 1996-97
I. Agriculture &16.0 19.2 16.1 20.6
allied

1. Tea 1.2 1.1 1.1 1.0


2. Coffee 1.3 1.4 1.6 1.6
3. Cereals 1.5 4.7 3.5 4.1
5. Spices 0.7 0.7 0.7 0.9
6. Cashewnuts 1.5 1.2 1.3 1.3
7. Oil meals 2.2 2.2 1.5 2.1
8. Fruits &0.7 0.7 0.7 0.6
vegetables
9. Marine products 4.3 3.2 2.8 3.0
II. Ores and minerals 3.8 3.7 4.0 3.7

11. Iron ore 1.6 1.6 1.8 1.4


13. Other ores and1.0 0.9 1.1 1.1
minerals
III. Manufactured78.1 75.4 77.8 73.5
goods
14. Leather &4.0 3.6 3.8 3.1
manufactures
15. Leather footwear 2.1 1.8 1.2 1.1

16. Gems &17.1 16.6 16.9 14.0


jewellery
17. Drugs,3.0 3.2 3.1 3.3
pharmaceuticals &
fine chemicals
18. Dyes /1.8 1.5 1.6 1.6
intermediates & Coal
tar chemicals

19. Manufactures of2.7 2.6 2.6 3.0


metals
22. Primary & semi-1.6 1.6 1.8 1.3
finished iron & steel

23. Electronic goods 1.6 2.1 2.0 2.4

24. Cotton yarn,8.5 8.1 8.2 9.2


fabrics, madeups etc

25. Ready made12.5 11.6 12.0 11.3


garments
26. Handicrafts 3.9 3.5 3.8 3.5
IV. Crude & petroleum1.6 1.4 1.6 1.6
products
V. Others &0.6 0.4 0.5 0.6
unclassified items
Grand Total 100.0 100.0 100.0 100.0
Major Items Exported to USA (2006)

ORGANIC CHEMICALS 6%
IRON AND STEEL 5%
ENGINNERING GOOD & 15%
MACHINARY

TEXTILES 36%
CUT &POLISHED 38%
DIAMOND &JEWELLERY
India’s Trade with USA
USD Billion

Exports to US Imports from


US
Service industry..

• Indian software exports were a mere US $4


millions in 1980
• US $128 millions in 1990
• US $12200 millions in 2003-04.
• Growing at a fast pace and now contributes more
than 50% to the GDP
INDIAN IT EXPORT INDUSTRY
 While indian exports of project oriented service grew by almost 18% in
2004 the worldwide market grew by 4.5%

 indian companies currently export software services and product to 112


countries around the world

 69% of the total IT export revenue from USA

 185 of the Fortune 500 companies outsource IT services from india

 emerging markets for IT Exports include Japan, Singapore and Australia,


Latin America , Eastern Europe
INDIA’S EXPORT BEFORE AND
AFTER GLOBALIZATION

YEAR EXPORT US DOLLAR


EXCHANGE(RS
)
1980 90,290 7.86
1985 149,510 12.36
1995 406,350 17.50
1998 1,307,330 32.42
2000 2,781,260 44.94
Growing Exports
The overall growth of export sector of Indian
economy led to secondary growth of the following
economic parameters –

 GDP factor for the first quarter of 2007-08 was at Rs 7,23,132 crore, registering
a
growth rate of 9.3%

 Exports grew by 18.11% during the 1st quarter of 2007-2008

 India's FOREX reserves (excluding Gold and SDRs) stood at $219.75 billion at
the
end of July ' 07
CONCLUSION
The implications of globalisation and its effect on india’s export sector for a
national economy are many. Globalisation has intensified interdependence
and competition between economies in the world market. This is reflected in
Interdependence in regard to trading in goods and services and in movement
of capital. As a result domestic economic developments are not determined
entirely by domestic market and domestic market conditions. Rather, they are
influenced by both domestic and international trading and economic
conditions of both the country.
Thank You

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