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8/9/2019 International Nv.
1/22
CLASS PRESETATION
ON
GLOBALIZATION AND ITSEFFECT IN INDIAS EXPORT
SECTOR
PRESENTED BY-
Komal Jeswani
Manish Kumar Yadav
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WHAT IS GLOBALISATION ?
The term globalization means International Integration.
It is a process through which the diverse world is unifiedinto a single society.
Opening up of world trade, development of advancedmeans of communication, internationalisation of financialmarkets, growing importance of MNC's, populationmigrations and more generally increased mobility of
persons, goods, capital, data and ideas
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GLOBALISATION
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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
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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 onthat goods excise duty is imposed.
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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 aparticular source
Aggressive marketing and sales promotion. Prompt acceptance and settlement of claims.
Unique value goods and gift items.
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LIST OF COUNTRIES WITH GOOD
BUSINESS RELATION
Russia
UAE
USA
Hong Kong
UK
Japan
Germany Singapore
Belgium
Malaysia
Netherlands
Bangladesh
Italy
Thailand
France
Australia
Belgium
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THE MAJOR EXPORT PRODUCTS OF
INDIA
Engineering Goods
Agricultural Products
ChemicalsMarine Products
Petroleum products
Leather GoodsTextiles
Plantations
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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
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GROWTH OF EXPORTS OF MANUFACTURED GOODS
Sector Exports
1991-92
US $ million
Exports
2007-08
US $ million
Contribution
(1991-92 to 2007-08)*
%
Leather & leather
manufactures
1278.2 3433.38 2.45
Chemicals & related
products
1581.3 14944.95 15.20
Engineering goods 2256.57 36619.31 39.09
Textiles (excluding
readymade garments)
2512.46 9528.17 7.98
Readymade garments 2215.54 9496.69 8.28
Other manufactured
goods
3401.17 27128.86 26.99
Manufactured goods 13245.25 101151.4 100.00
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COMMODITY COMPOSITION OF EXPORTS
(Percentage shares)
Commodity Group Apr-Sept Apr-Sept
1994-95 1995-96 1995-96 1996-97
I. Agriculture &
allied
16.0 19.2 16.1 20.6
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 &
vegetables
0.7 0.7 0.7 0.6
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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 and
minerals
1.0 0.9 1.1 1.1
III. Manufactured
goods
78.1 75.4 77.8 73.5
14. Leather &
manufactures
4.0 3.6 3.8 3.1
15. Leather footwear 2.1 1.8 1.2 1.1
16. Gems &jewellery
17.1 16.6 16.9 14.0
17. Drugs,
pharmaceuticals &
fine chemicals
3.0 3.2 3.1 3.3
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18. Dyes /
intermediates & Coal
tar chemicals
1.8 1.5 1.6 1.6
19. Manufactures of
metals
2.7 2.6 2.6 3.0
22. Primary & semi-
finished iron & steel
1.6 1.6 1.8 1.3
23. Electronic goods 1.6 2.1 2.0 2.4
24. Cotton yarn,
fabrics, madeups etc
8.5 8.1 8.2 9.2
25. Ready made
garments
12.5 11.6 12.0 11.3
26. Handicrafts 3.9 3.5 3.8 3.5
IV. Crude & petroleum
products
1.6 1.4 1.6 1.6
V. Others &
unclassified items
0.6 0.4 0.5 0.6
Grand Total 100.0 100.0 100.0 100.0
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Major Items Exported to USA (2006)Major Items Exported to USA (2006)
ORGANIC CHEMICALS 6%
IRON AND STEEL 5%
ENGINNERING GOOD &MACHINARY
15%
TEXTILES 36%
CUT &POLISHEDDIAMOND &JEWELLERY
38%
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Indias Trade with USAIndias Trade with USA
Imports fromUS
Exports to US
USD
Billion
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Service industry..
Indian software exports were a mere US $4millions 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
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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
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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
INDIAS EXPORT BEFORE AND
AFTER GLOBALIZATION
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Growing ExportsGrowing Exports
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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
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The implications of globalisation and its effect on indias 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.
CONCLUSION
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Thank YouThank You