International Trade (Part – II)

Agriculture and allied sectors accounted for nearly 30 percent of the total GDP in 1991 while in 2023-24 (2nd A.E.), it accounted for 17.6 percent of the total GVA of Indian economy on current basic prices. Thus, Statement 1 is incorrect. As per the WTO data, share of India's exports in world's merchandise trade is 1.8 percent in 2022 which was only at 0.5 percent and 0.7 percent in 1990 and 2000 respectively. Total FDI flows into India was increased from US $ 4029 million in 2000-01 to US $ 45148 million in 2014-15 and US $ 44423 million in 2023-24 (April-March). India had Forex reserves of only about US $ 1.1 billion in 1991 which enormously increased to US $ 300 billion in April, 2014 and US $ 651.5 billion on 31 May, 2024. Hence, statements 2,3 and 4 are correct.

Agriculture and allied sectors accounted for nearly 30 percent of the total GDP in 1991 while in 2023-24 (2nd A.E.), it accounted for 17.6 percent of the total GVA of Indian economy on current basic prices. Thus, Statement 1 is incorrect. As per the WTO data, share of India's exports in world's merchandise trade is 1.8 percent in 2022 which was only at 0.5 percent and 0.7 percent in 1990 and 2000 respectively. Total FDI flows into India was increased from US $ 4029 million in 2000-01 to US $ 45148 million in 2014-15 and US $ 44423 million in 2023-24 (April-March). India had Forex reserves of only about US $ 1.1 billion in 1991 which enormously increased to US $ 300 billion in April, 2014 and US $ 651.5 billion on 31 May, 2024. Hence, statements 2,3 and 4 are correct.

Globalization has significantly impacted the Indian Economy in various ways. New opportunities for trade and investment have emerged. It has expanded trade in goods and services. It has led to greater inflow of FDI in India. It also has a favourable impact on the overall growth rate of the economy. Due to globalization, Indian exports and imports both are increased. However, it can not be said that increase in exports is greater than increase in imports. Increasing trends of merchandise trade deficit explicitly reflect this. Hence, statement of option (c) is not true about globalization and its impact on India.

The process of economic reforms started in India in 1991, when India was experiencing a severe economic crisis. The crisis in 1991 served as a catalyst for the government to initiate a comprehensive economic reform agenda, including liberalization, privatization and globalization.

A free trade policy is a pact between two or more nations to reduce barriers to imports and exports among them. Under a free trade policy, goods and services can be bought and sold across international border with little or no government tariffs, quotas, subsidies or prohibition to inhibit their exchange.

Free Trade Zones (SEZs/FTWZs) have been established in India for the promotion of export industries. A free trade zone is an area where goods may be landed, stored, handled, manufactured or reconfigured and re-exported under specific customs regulation and generally not subject to customs duty.

Free Trade Zones (SEZs/FTWZs) have been established in India for the promotion of export industries. A free trade zone is an area where goods may be landed, stored, handled, manufactured or reconfigured and re-exported under specific customs regulation and generally not subject to customs duty.

The Special Economic Zone (SEZ) policy in India first came into inception on 1 April, 2000. Its prime objective was to enhance foreign investment and provide an internationally competitive and hassle free environment for exports. The idea was to promote exports from the country and realizing the need that level playing field must be available to the domestic enterprises and manufacturers to be competitive globally.

The Special Economic Zone (SEZ) policy in India first came into inception on 1 April, 2000. Its prime objective was to enhance foreign investment and provide an internationally competitive and hassle free environment for exports. The idea was to promote exports from the country and realizing the need that level playing field must be available to the domestic enterprises and manufacturers to be competitive globally.

The Special Economic Zone (SEZ) policy in India first came into inception on 1 April, 2000. Its prime objective was to enhance foreign investment and provide an internationally competitive and hassle free environment for exports. The idea was to promote exports from the country and realizing the need that level playing field must be available to the domestic enterprises and manufacturers to be competitive globally.