MAJOR PROBLEM IN EXPORT SECTOR

EXPORT
Defenition:Transferring of any good from one country to another country in a legal way for the purpose of trade.

INDIAN EXPORT -SECTOR

Agriculture product Handicraft items Cotton & readymade garment Food Furniture Textile Jewellery Cosmetic goods Footwear(leather products) Medical appliances

India exports its goods to some of the leading countries of the world such as UK, Belgium, USA, China, Russia, UAE, In the past ten years, Indian exports have grown at a rate of nearly 22%. Some commodities have enjoyed faster export growth than others

MAJOR EXPORT ITEMS OF INDIA

cotton, textiles, jute goods, tea, coffee, cocoa products, rice, wheat, pickles, mango pulp, juices, jams, preserved vegetables etc. medical appliances Petro-chemical product Steel product Leather goods

MAJOR PROBLEM IN EXPORT

There are few problems which need to be solved before India makes a mark for itself in the export sector. The Indian goods have to be of superior quality. The packaging and branding should be such that countries are interested to export from India. At the same time India must look for potential market to sell their goods. The government should frame policies which gives boost to the exports.

CONT.
Subsidies introduce in agri sector in developed nation Govt. policy Emerging china Indian rupee (appreciation) Infrastructure Poor transportation Inadequate port Regional trade block Lack of industry near coastal area

AGRICULTURE SECTOR

According to the government's agri-trade promotion body, Agricultural and Processed Food Products Export Development Authority (APEDA), India's exports of agricultural and floricultural products, fruits and vegetables, animal products and processed food products was worth US$ 8.1 billion in 2008-09, an increase of 13.88 per cent from US$ 7.11 billion in 200708. Exports during April-December 2009-10 were worth US$ 54.16 million India's agri-export turnover is expected to double in the next five years, according to APEDA. Agri-export turnover is set to rise to nearly US$ 18 billion by 2014.

PROBLEM IN AGRICULTURE SECTOR

Lack of irrigation facilities Lack of new technology Seeds and fertilizers Financial problem Migration of farmers Public sector unit not follow transparent procedure in export

COTTON &TEXTILE

Cotton priced high in international market Most buyers are in the US, UK and Europe, and the global recession has meant retail activity in the West has slipped 20-25%. Productivity in Indian garment factories is at only 50% of global standards, Indian exporters are also at a disadvantage on the duty drawback front. Duty drawback is the reversal of taxes paid on the inputs used in garment manufacturing. India offers a duty drawback of 8% on exports while in China it is 17%, in Vietnam it is 15% and in Bangladesh it is 14%.

ACCORDING TO ECONOMY SURVEY 2009-10 PROBLEM FACED BY INDIAN INTERNATIONAL TRADE

Trade credit: Indian scenario:As a result of difficult financing conditions prevailing in the international credit markets and increased risk aversion by the lending counterparties, gross inflows of short-term trade credit to India declined by 12.2 per cent to US$ 41.8 billion during 2008-09. Export credit as a percentage of net banking credit also fell from 5.5 per cent as on March 28, 2008 to 4.6 per cent as on March 27, 2009 and further to 4.1 per cent as on January 15, 2010

STANDARDS TAKERS, NOT STANDARDS MAKERS

Developed countries strict rules on international trade . Sanitary and Phytosanitary Agreement (SPS) Technical Barriers to Trade Agreement (TBT) EU requiring multiple certification and labeling NAFTA makes own standard for trade in his area Japans use of the IFOAM accreditation system as a model for national organics regulations.