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Export and Import scenario of India & Related Economic Strategies

Export & Import are the two major activities that contribute to the growth of the economy of any country. They are also the major contributor to the GDP growth and reason for the foreign currency flow in any country. As per the report of Morgan Stanley Capital International (MSCI) 2019, India is considered as one of the fastest growing economies and one of the potential emerging markets in the Asian territory.

frontier market index

The total GDP of the world is continuously growing even after the major recessions like in 1929 & 2009. The total GDP of the world economy is USD 80.935 Trillion in 2017.

gdp of world economy

(Reference: GDP of the World, World Bank Data, https://data.worldbank.org)

The total GDP of India is rapidly growing which also supported by the different factors like ease of doing business, the presence of natural resources, manpower, capital & land. The total GDP of India economy is USD 2.65 Trillion in 2017.

India GDP

Factors & Strategies

In comparison to the other economies, there are many factors & Strategies that are contributing to the constant increase in the export & import in India:

  • The mix presence goods and service industries in the Indian economy
  • Understanding towards different cultures
  • Growing in number of institutions, education and literacy rate gave the confidence to the Global companies to set-up their Office in India
  • Collectivist society, long term-orientation and good at work-orientations as per the Hofstede’s cultural analysis.
  • Long Coastal line
  • Well developed Special economic zones
  • Heavy investment in the development of the road and rail infrastructure
  • Good connectivity in seaports, airports, & ICDs
  • Good relationship with other unions and treaties like the USA, European Union, ASEAN, South Asian and African countries.
  • Tax relaxations to promote the import & export of different commodities
  • Ease of doing business index (Rank:100)
  • Present infrastructure in metro cities.
  • Presence of the stable airline, logistics, cargo, and Shipping companies.
  • India currency & US Dollar value.
  • Growing economic indicators like GDP & GDP Purchasing Power Parity(PPP).
  • Steady growth in the inflation rate
  • Free trade and Bi-lateral agreement with different countries.
  • The stable Indian Government and their upcoming policies to improve the import & export compliances.
  • Implementation of projects like Sagarmala Project and improvement of the brownfield airports, presence of metro connectivity in the cities

The other factors and attributes that have an edge to the imports & exports in the India:

  • Competitive advantages with Companies
  • Presence of Government instructions like
  • APEDA
  • Exports Councils
  • EXIM Bank

Export Analysis

world development indicator

  • In 2017, exports for India was 489,400 million US dollars. Exports of India increased at an average annual rate of 14.26 % in 2017. (Table:1)
  • In 2017, exports of goods for India was 304,106 million US dollars. Exports of goods in India increased at an average annual rate of 13.32 % in 2017. (Table:2)
  • In 2017, exports of services for India was 185,294 million US dollars. (Table:2)

Import Analysis

  • In 2017, imports for India was 561,612 million US dollars. Imports of India increased growing at an average annual rate of 13.81 % in 2017. (Table:1)
  • In 2017, goods imports for India was 452,241 million US dollars. Goods imports of India increased growing at an average annual rate of 14.63 % in 2017. (Table:2)
  • In 2017, service imports for India was 109,371 million US dollars. Service imports of India increased growing at an average annual rate of 12.39 % in 2017. (Table:2)

Competitive Advantages

  • Organizational and network the capability of International firms are significantly associated with strategy and performance. Indian Companies are also emphasizing upon building performance & strategy.
  • Implementation of Inventory Management software’s
  • Continuous improvement through imparting training to their employees
  • Incentive system to the employees & buyers/traders/importers
  • Positive control of the distribution channel
  • Customization

Recommended Strategies

  1. For Incremental Sales:
  • Bundling products 
  • Discounts on bulk buying
  • Achieving economies of scale
  • Participating in the International events & exhibitions.
  • Maintaining relationships with customers for repeat orders
  • Upgrading the certification levels as per the International markets
  • Entering into the untapped markets through collaborations, partnerships, joint ventures.
  • Sales promotion activities
  • cost-leadership strategy i.e. offering better price to the buyers

C) Building the Customer Loyalty:

  • Brand awareness campaigns.
  • Value addition for the target audience which may define benefits.
  • Urge for extensive brand building activities for sustainable growth.
  • Promotion through paid digital marketing tools to increase the impressions and visibility of the company.

Annexure

Reference:  Knoema Corporation (US), https://knoema.com

  • Total Exports of Goods & Services
Exports of Goods & Services 
Date Value in USD
2017 4,89,40,09,13,160
2016 4,30,43,34,87,928
2015 4,28,63,09,03,176
2014 4,85,58,30,46,458
2013 4,68,27,34,26,431
2012 4,43,84,51,80,758
2011 4,46,37,54,04,071
2010 3,48,03,53,71,769
2009 2,60,84,71,57,422
2008 3,05,11,93,36,663
2007 2,40,08,20,39,834
2006 1,93,31,60,62,904
  • Exports of Goods & Services
Date Exports of Goods Exports of Services
Value in USD Value in USD
2017 3,04,10,68,98,883 1,85,29,40,14,277
2016 2,68,61,47,05,000 1,61,81,87,82,928
2015 2,72,35,27,29,600 1,56,27,81,73,576
2014 3,28,38,69,08,294 1,57,19,61,38,164
2013 3,19,10,97,94,565 1,49,16,36,31,866
2012 2,98,32,05,84,200 1,45,52,45,96,558
2011 3,07,84,74,88,406 1,38,52,79,15,665
2010 2,30,96,70,60,095 1,17,06,83,11,674
2009 1,67,95,76,71,240    92,88,94,86,182
2008 1,99,06,50,97,558 1,06,05,42,39,105
2007 1,53,52,95,80,290    86,55,24,59,544
2006 1,23,87,62,14,466     69,43,98,48,438
  • Total Imports of Goods & Services 
Imports of Goods & Services 
Date Value in USD
2017 5,61,61,25,25,786
2016 4,72,01,26,94,193
2015 4,91,88,00,74,571
2014 5,53,55,28,54,081
2013 5,60,40,84,78,124
2012 5,79,90,85,79,784
2011 5,53,06,21,86,680
2010 4,39,05,90,34,248
2009 3,28,25,71,76,213
2008 3,79,47,93,80,179
2007 2,78,78,57,52,272
2006 2,25,08,60,27,162
  • Imports of Goods & Services
Date Imports of Goods Imports of Services
Value in USD Value in USD
2017 4,52,24,13,83,880 1,09,37,11,41,905
2016 3,76,09,02,54,276 95,92,24,39,917
2015 4,09,23,69,78,523 82,64,30,96,048
2014 4,72,43,42,64,991 81,11,85,89,091
2013 4,81,68,62,57,768 78,72,22,20,355
2012 4,99,98,89,61,275 79,91,96,18,509
2011 4,75,30,40,47,600 77,75,81,39,080
2010 3,60,14,60,62,834 78,91,29,71,414
2009 2,75,22,70,34,893 53,03,01,41,320
2008 3,23,91,65,18,439 55,56,28,61,740
2007 2,08,61,08,99,982 70,17,48,52,290
2006 1,66,57,18,62,854 58,51,41,64,307

By: Parul Mehta#MDI Gurgaon

 

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