Indian Economics 2

  The balance of payment is the statement that files all the transactions between the entities, government anatomies, or individuals of one country to another for a given period of time. All the transaction details are mentioned in the statement, giving the authority a clear vision of the flow of funds. After all, if the items are included in the statement, then the inflow and the outflow of the fund should match. For a country, the balance of payment specifies whether the country has an excess or shortage of funds. It gives an indication of whether the country’s export is more than its import or vice versa. Types of Balance of Payment The balance of payment is divided into three types: Current account : This account scans all the incoming and outgoing of goods and services between countries. All the payments made for raw materials and constructed goods are covered under this account. Few other deliveries that are included in this category are from tourism, engineering, stocks, bus...

COMPOSITION OF INDIA'S FOREIGN TRADE India’s overall exports (Merchandise and Services combined) in September 2021 are estimated to be USD 54.06 Billion, exhibiting a positive growth of 21.44 per cent over the same period last year and a positive growth of 26.03 per cent over September 2019. Overall imports in September 2021 are estimated to be USD 68.49Billion, exhibiting a positive growth of 70.00 per cent over the same period last year and a positive growth of 44.11 per cent over September 2019. I. MERCHANDISE TRADE EXPORTS (including re-exports) Exports in September 2021 were USD 33.79 Billion, as compared to USD 27.56 Billion in September 2020, exhibiting a positive growth of 22.63 per cent. In Rupee terms, exports were Rs. 2,48,605.74 Crore in September 2021, as compared to Rs. 2,02,508.54 Crore in September 2020, registering a positive growth of 22.76 per cent. As compared to September 2019, exports in September 2021 exhibited a positive growth of 29.86 per cent in Dollar te...

The value of India export was around US$ 356.96 billion in April-November 2019. The largest destination for India's export was the USA. It accounts for 15.88% of Indian export. On the other hand, the largest source of India's import was from China. At present the Indian economy has become the 5th largest economy (nominal GDP) in the world.  The government of India has set up an export target of $900 billion by 2020 in the Foreign Trade Policy 2015-2020 . This target is just double to its total export of $465.9 billion in 2013-14. What India export? Petroleum products, Mineral fuels including oil, Gems, precious metals, Machinery including computers, Organic, Electrical machinery, equipment, chemicals, iron, steel, and Pharmaceuticals products. What India Imports? Crude petroleum, gold, pearls, precious stones, petroleum products, Telecom instruments, electronic components, industrial machinery, electronic components, Animal/vegetable fats, oils, waxes, Plastics, plastic article...

MEANING OF FOREIGN TRADE Foreign trade is the mutual exchange of goods or services between international regions and borders. It is important for national economy and world relations. Among the items commonly traded are:- Consumer Goods, such as T.V. sets and clothing; Capital goods, such as Machinery; and Raw Materials and food. TYPES Foreign trade is of 3 types:- 1) IMPORT TRADE- Trade where the goods or services are purchased from other countries. 2) EXPORT TRADE- Trade where the goods or services are sold to other countries. 3) ENTREPORT TRADE- Trade where goods are imported in order to re-export them. For example, If India imports rubber from Thailand, processes it, re-exports it to Japan. ROLE/IMPORTANCE OF FOREIGN TRADE https://edurev.in/studytube/Role--Importance-of-Foreign-Trade-in-India-Sector-/e492d29d-94ce-4391-b872-b38a88022696

  Here we detail about the following nine important roles played by public sector in Indian economy, i.e., (1) Generation of Income, (2) Capital Formation, (3) Employment, (4) Infrastructure, (5) Strong Industrial Base, (6) Export Promotion and Import Substitution, (7) Contribution to Central Exchequer, (8) Checking Concentration of Income and Wealth, and (9) Removal of Regional Disparities. 1.  Generation of Income: Public sector in India has been playing a definite positive role in generating income in the economy. The share of public sector in net domestic product (NDP) at current prices has increased from 7.5 per cent in 1950-51 to 21.7 per cent in 2003-04. Again the share of public sector enterprises only (excluding public administration and defence) in NDP was also increased from 3.5 per cent in 1950-51 to 11.12 per cent in 2005-06. 2.  Capital Formation: Public sector has been playing an important role in the gross domestic capital formation of the country. The sha...

S mall scale industries are industries which produce goods or provide services on a small scale with the help of machines, hired labour and power. Small businesses face various problems because of their small size. They have limited capital for expansion. They are unable to take advantage of economies of large scale production and also lack motivation for expansion as they are unable to take benefit of the government schemes and incentives. As a result, the business units may become sick or even close down their operations. Some of the problems faced by small scale industries in India are:- 1. Shortage of Funds: Small business entrepreneurs don’t have enough long- term or short-term funds. These are, therefore, short of both fixed assets as well as working capital. Even the banks do not come to their help in a big way. Financial institutions like ICICI, IDBI and IFCI help only large scale industries. 2. Lack of Latest Technology: Small business lacks funds. Latest technology is not use...