A Study of Imports and Exports in India

A Project report of Under Graduate in Economics

SUBMITTED
BY
Mr. K. Surya Prakash

Under the Guidance of

Dr. A. Kasirajan, M.A., M.Phil., Ph.D.,

Assistant Professor in Economics

P.G. AND RESEARCH DEPARTMENT OF ECONOMICS

RAMAKRISHNA MISSION VIVEKANANDA COLLEGE
MYLAPORE, CHENNAI-600 004

2022 - 2023

1
 CERTIFICATE

This to certify that the project report title “A Study of Imports and Exports In

India” is a bonafied work of K. Surya Prakash, Register No: 2013271018061, who carried out the
internship project work under my supervision during December 2022 to March 2023 for the partial

fulfillment of the award of the Bachelor of Arts.

Signature of the Guide Signature of the HOD

Date:

Place:

2
 DECLARATION

I K. Surya Prakash , Register No: 2013271018061 final year under Graduate student of the

Department of Economics, Ramakrishna Mission Vivekananda College, Chennai, hereby declare that this

project report titled “A Study of Imports and Exports In India ” is an original

work done in partial fulfillment for the award of degree in Bachelor of Arts in Economics by the

University of Madras.

I further declare that it had not been previously submitted for any reward of any degree, diploma,

associate fellowship or other similar titles.

PLACE: CHENNAI

DATE: K. Surya Prakash

3
 ACKNOWLEDGEMENT
I take this opportunity to thanks to express my gratitude and indebtedness to

Dr. T. Jagathesan, Principal and Head, Dr. A.Selvaraju, Head of the Department, P.G, and research

Department of Economics, Ramakrishna Mission Vivekananda College, for his sincere guidance and

valuable suggestions for the completion of my project.

I express my gratitude to Dr. A.Kasirajan , Assistant Professor, P.G. and Research

Department of Economics, Ramakrishna Mission Vivekananda College, for his valuable guidance which

helped me in complete the report.

I take this grand opportunity to express my everlasting thanks to the Professors Dr. X. Vincent

Jayakumar, Dr. T.Chandramouli, Dr. V. Raju, Dr. K.Chandrasekaran, Dr. T. Raghu,

Dr.S.K.Prakash, and Dr. A.Kasirajan for their valuable teaching and continuous encouragement in my

subject as well as for my career growth.

This project report is an output of valuable contribution from certain people and I take this opportunity

to specially thank to all the people concerned who made my project work reality. Above all I thank the

ALMIGHTY GOD who showered me with all his blessings to accomplish this project.

PLACE: CHENNAI

DATE: K. Surya Prakash

4
 Table of Contents

Chapte
DESCRIPTION Page No.
r

1. Introduction 6 - 15

2. Review of Literature 16 - 20

3. Data analysis 21 - 27

4. Conclusion 28 - 30

Bibliography 31 - 33

5
CHAPTER - 1

INTRODUCTION

6
What are Imports and Exports?

Imports are the goods and services that are purchased from the rest of the world by a country’s
residents, rather than buying domestically produced items. Imports lead to an outflow of funds
from the country since import transactions involve payments to sellers residing in another
country.

Exports are goods and services that are produced domestically, but then sold to customers
residing in other countries. Exports lead to an inflow of funds to the seller’s country since export
transactions involve selling domestic goods and services to foreign buyers.

What is Import and Export in the Indian context

Importation or import refers to the products or services that are brought into India. These
products or services are exclusive to other nations brought into India. For instance, the
importation of weapons from Russia to India is an example of imports. If a country exceeds the
importation level, it leads to a trade deficit. Trade deficit refers to more importation that terms
the country’s international trade as negative. 

Exportation or export refers to the domestic products or services in India that are sent to other
countries. These products or services are curated domestically; however, they are sold to other
countries. For instance, Indian spices are exported to countries like the USA, Germany, etc. If a
country exceeds the exportation, it leads to a trade surplus. Trade surplus increases the economic
growth of a country; hence, international trade becomes positive. 

Both exports and imports are the two main components of international trade. Import
acknowledges the participation of foreign countries. In contrast, exportation takes the country
from a domestic level to global recognition. 

India has framed several export and import policies to facilitate the Indian economy. All these
policies can be understood in detail in the next part.

7
 Imports and Exports Policies in India

 Importers in India are expected to register themselves with the DGFT or the Directorate General
of Foreign Trade. 

 The importers can import only the licensed items approved by the DGFT for India.

 Canalised items, such as petroleum, diesel, etc., can only be imported through specialised
transportation mediums or methods.

 Certain goods such as wild animals goods, animal rennet, and unprocessed ivory are totally
banned from being imported into India.

 All the matters regarding imports are to be concerned by the DGFT as it is the sole body for
handling imports in India.

 Export in India has been classified into three categories. These are free, prohibited, and
restricted.

 India has signed the FTA or the Free Trade Agreement. According to this, India accepts exports
from the other member countries at minimised trade barriers.

 It is mandatory for the exporting party in India to back themselves with a good insurance policy.
The government of India has encouraged the signing of the Export Credit Guarantee
Corporation.

 All kinds of export documentation, such as Airway receipts and railway receipts, are mandatory
to be withheld by the exporting parties in India.

Impact of Imports and Exports policies on the Indian Economy

 India extended its relationship with the United States. In 2021, both countries unveiled the
Climate Action and Finance Mobilisation Dialogue. Through this, the two nations have been
working to increase climate saving initiatives and grow the economy too. 

8
 In January 2022, India and the United Kingdom had their first round of discussion for the FTA.
Both the countries were optimistic about liberalising trade restrictions. 

 India is estimated to achieve the exportation of US $400 billion as it has signed export projects
with the UAE, Canada, and the EU.

 India is already on the path of boosting e-commerce. It is seeing a rapid increase in income
through e-commerce, domestically and globally.

 In 2021, the merchandise exportation had increased to US$ 34.06 billion. This marks an
increment of 23.69% in merchandise exportation.

 The Indian economy is also consistently monitoring its importation. This is done to secure the
domestic manufacturers in India and keep up the organic nature of the Indian economy.

 India has also signed the three-year treaty with Israel, wherein the focus will be on agricultural
trade and strengthening bilateral relations as well.

 India has additionally signed a treaty with Bhutan to acquire and develop environment-friendly
growth of the economy.

 The public company, Alankit Imagination Ltd., has signed an agreement with Digital Swiss
Gold. According to this, the trading of gold between India and Switzerland can take place
digitally.

Benefits of Importing and Exporting

Benefits of Importing

When people talk about importing in terms of trade, they refer to purchasing products or services
from another country. These products or services are then offered to customers by the importing
business or individual, broadening their choice of purchase. However, this is not the only benefit
of importing; there are many more to consider. Here are some of them.

9
1. Introducing New Products to the Markets
Many businesses in India and China tend to produce goods for the European and
American market. This is mostly due to the size of these markets and the purchasing
power of the population there. But once a new product is introduced to these two
markets, it may take a year or more before the product is introduced to other, smaller
markets.
If a product produced in China seems attractive/useful to entrepreneurs in Australia, they
can import it and introduce it to their potential consumers. Thanks to the internet
expansion, entrepreneurs can conduct market research prior to importing a certain
product. This will help them determine if there is an actual need on the market for such
an imported product, so they can develop an effective marketing strategy in advance.
2. Reducing Costs

Another major benefit of importing is the reduce in manufacturing costs. Many

businesses today find importing products, parts of products and resources more
affordable than producing them locally.

There are numerous cases when entrepreneurs find products of good quality which are
inexpensive even when the overall import expenses are included. So instead of investing
in modern, expensive machinery, entrepreneurs choose to import goods and reduce their
costs. In most cases, they end up ordering large quantities in order to get a better price
and minimize the costs.

3. Becoming a Leader in the Industry

One of the key benefits of importing products is the opportunity to become a market
leader in the industry of interest. Since manufacturing new and improved products is a
never-ending process, many businesses worldwide use the chance to import new and
unique products before their competitors do. Being the first to import a fresh product can
easily lead you to becoming a leader in a certain industry.

4. Providing High Quality Products

10
 Another benefit of importing is related to the ability to market products of high quality.
Lots of successful entrepreneurs travel abroad, visit factories and other highly
professional sellers in order to find high quality products and import them into their own
country. Moreover, manufacturers may provide informative courses and training, as well
as introduce standards and practices to ensure the company abroad is well prepared to sell
their products.

Benefits of Exporting

Just as there is a variety of benefits of importing products and services, there are numerous
reasons for exporting, too. Here are the two key benefits of exporting products to other countries:

1. Increasing your Sales Potential

While importing products can help businesses reduce costs, exporting products can ensure
increasing sales and sales potential in general. Businesses that focus on exporting expand their
vision and markets regionally, internationally or even globally. Instead of earning money by
selling their offerings on the local market, these businesses are focused on discovering new
opportunities to present their work abroad.

Exporting products is especially good for medium and large businesses – the ones that have
already expanded within the local market. Once they have saturated the market in their country,
exporting products abroad can be a great opportunity for these businesses to increase the sales
potential. Additionally, exporting can be one way of scanning opportunities for overseas
franchising or even production.

2. Increasing Profits

11
 Exporting products can largely contribute to increasing your profits. This is mainly due to
the foreign orders, as they are usually larger than those placed by the local buyers. While
local customers buy a few products or a pallet, businesses abroad oftentimes order a
container of products which inevitably leads to increased profits. Moreover, if your
products are considered unique or innovative abroad, your profits can increase rapidly in
no time.

Advantages of Imports and Exports

 It is one of the simplest routes of entering into the global trade and import and export
generate huge employment opportunities.

 Requires less investment in terms of time and money when contrasted with other
methods of entering into the global trade.

 Is comparatively less risky when compared with different routes of entering in international
business.

 As no nation can be 100% self-sufficient, import and export are very crucial for the
functioning and growth of that nation.

 Can help Countries to access the best technologies available and best products and services in
the world.

 It gives better control over the trade than setting up a market and the risk is considerably low.

Limitations of imports and Exports

 It includes extra packaging, transportation and protection and insurance costs which build up
the total cost of items.

12
 Exporting isn’t doable in the event that the foreign nation prohibits imports.

 Domestic organizations which are closer to the client could serve them better than firms
outside their national borders.

 Merchandises are subject to quality standards any low-grade merchandise which is exported
will result in Country reputation and remarks on countries.

 Obtaining licenses and documentation for foreign trade is a difficult and frustrating task.

 If you are not careful, you can lose grip on the domestic market and existing customers.

How to Decrease Imports/Increase Exports

Taxes and Quotas

Governments decrease excessive import activity by imposing tariffs and quotas on imports. The

tariffs make importing goods and services more expensive than purchasing them domestically.
Imposing tariffs is one way a country can work to improve its balance of trade.

Subsidies

Governments provide subsidies to domestic businesses in order to reduce their business costs.
This helps bring down the price of domestic goods and services, hopefully, encouraging
consumers to buy domestic rather than imported goods. By enabling domestic producers to
produce goods less expensively and, thus, lower their prices, subsidies may also increase exports
as the cheaper goods become more attractive to foreign buyers.

Quality of goods must still be factored into the equation. If consumers are convinced that a
certain product made in country “X” is of substantially better quality than the same product as
made in country “Y”, then they may continue purchasing the product from manufacturers in
country “X” even if government subsidies to manufacturers in country “Y” have made it
significantly less expensive to buy from country “Y”.

13
Trade Agreements

Sometimes, countries ensure a regular flow of international trade, i.e., a high volume of both
imports and exports, by entering into a trade agreement with another country. Such agreements
are aimed at stimulating trade and supporting economic growth for both countries involved.

Trade agreements typically focus on the exchange of different types of products. For example,
the U.S. might enter into a trade agreement with Japan where Japan agrees to buy a certain
amount of American-made automobiles in exchange for the U.S. increasing its imports of
Japanese rice.

Currency Devaluation

Another method of increasing exports and decreasing imports is by devaluing the domestic
currency. Governments devalue their currency with the aim of bringing down the prices of
domestic goods and services, the ultimate goal being to increase net exports. The currency
devaluation also makes purchasing from other countries more expensive, thus discouraging
imports.

How important are Imports and Exports?

Countries vary considerably with regard to how important imports and exports, and their overall
balance of trade is to their economies. For China, the world’s largest exporting country, exports
and a net positive balance of trade are critical to the success and growth of the country’s
economy. Maintaining a high level of exports is also very important to the economies of the U.K.
and Australia.

The growth of economies of developing countries is often fueled by massive exports of

commodities and raw materials to developed nations. For this reason, mining is commonly a key
industry in such countries.

14
How Imports and Exports Impact the Economy

In today’s global economy, consumers are used to seeing products from every corner of the
world in their local grocery stores and retail shops. These overseas products—or imports—
provide more choices to consumers. And because they are usually manufactured more cheaply
than any domestically-produced equivalent, imports help consumers manage their strained
household budgets.

 A country's importing and exporting activity can influence its GDP, its exchange rate,
and its level of inflation and interest rates.
 A rising level of imports and a growing trade deficit can have a negative effect on a
country's exchange rate.
 A weaker domestic currency stimulates exports and makes imports more expensive;
conversely, a strong domestic currency hampers exports and makes imports cheaper.
 Higher inflation can also impact exports by having a direct impact on input costs such as
materials and labour.

Objectives of the Study

 A study on the total Imports, Exports and Trade balances in India

 A study on Particular sectors Imports in India
 A study on particular sector Exports in India

Chapterisation

 Chapter-1 (Introduction, What are Imports and Exports, What are Imports and Exports in
Indian context, Advantages of Imports and Exports, How to Decrease Imports/Increase
Exports, How Important are Imports and Exports, How Imports and Exports Impact the
Economy, Objectives of the Study)
 Chapter-2 (Review of Literature)
 Chapter-3 (Data Analysis and Interpretation)

15
 Chapter-4 (Findings and Conclusion)

CHAPTER - 2

Review of Literature

16
Sani Hassan Hussaini, Bashir Ado Abdullahi, Musa Abba Mahmud (2015) in their paper
“Exports, Imports and Economic Growth in India: An Empirical Analysis” testing the Export
Led Growth Hypothesis for India with annual time series data from 1980 to 2013.they found that
within the period of 1980 to 2013, the variables are cointegrated and there exist bidirectional
relationship between GDP and Export.

G.Jayachandran (2013) investigates the impact of exchange rate volatility on the real exports
and Imports in India using annual time series data for the period 1970 to 2011. He found that
GDP has a positive and significant impact on India s real exports in the long-run, but the impact
turns out to be insignificant in the short-run.

Pradeep Agrawal (2014) in his paper entitled “The Role of Exports in India's Economic
Growth” examines the relationship between export and economic growth. The results of the
causality analysis and suggest that the rapid growth of exports has played a substantial role in
increasing the growth rate in India following trade liberalization in 1991.

Rajwant Kaur, Amarjit Singh Sidhu (2012) in their paper “Trade Openness, Exports and
Economic Growth Relationship in India ” examine the validity of the export-led growth (ELG)
hypothesis implemented in India during the Post WTO Period. The study is based upon quarterly
time series data covering the period from 1996-97 to 2008-09. The results revealed that the
existence of long-run equilibrium relationship between export growth and economic growth. The
unidirectional causality has also been observed among trade openness and economic growth
(GDP), which is running from trade openness to GDP. In the light of above findings, the study
supports the hypothesis that there is a positive correlation between export growth and economic
growth in India during the post reforms.

17
Deepika Kumari and Neena Malhotra (2014) in their entitled paper “Export-Led Growth in
India: Cointegration and Causality Analysis” explores the causal relationship between exports
and economic growth by employing Johansen cointegration and Granger causality approach.
Annual time series data from 1980 to 2012 have been used. Granger causality test exhibits
bidirectional causality running from exports to GDP per capita and GDP per capita to exports.

Kaur & Sidhu (2012) examine the causality between Real GDP, real export, trade openness
using annul data from 1996-97 to 2008-09. They found that unidirectional causality running from
exports to GDP.

Ray, S. (2011) in his work “A Causality Analysis on the Empirical Nexus between Export and
Economic Growth: Evidence from India” found that unidirectional causality running from
exports to GDP. Mishra,

P. K. (2011) study “The Dynamics of Relationship between exports and economic growth in
India” found that no causality exist between exports and GDP.

Devi, S. S. (2013) in paper “Export, Economic Growth and Causality- A Case for India”
examines the relationship between Export and Economic Growth. The result revealed that uni
directional causality running from exports to GDP.

Chandra (1998) in his article wrote on challenges ahead of Indian textile and clothing industry
in post quota regime. It put special emphasis on production capabilities and efficiencies as most
essential elements to fight global competition. It suggests various strategic decisions Indian
textile manufacturers have to make to survive the competitiveness in post quota regime.

Simpson and Shetty (2001) did a vast study on India’s textile industry. The purpose of study is
to analyze India’s textile and apparel industry, its structural problems, market access barriers,
and measurements taken by government of India to enhance the industry’s competitiveness in the
post – Multifiber Agreement (MFA) era. The study also assesses India’s textile and apparel
market potential and trade and investment opportunities for U.S. firms as India steps into a more
free and transparent trade regime.

Verma (2002) did a comprehensive study with objective to evaluate the export competitiveness
of Indian textile and clothing sector. Because Indian textile and clothing sector is predominantly

18
cotton based, the study is focused on cotton textile and clothing and look at the entire value chain
from fiber to garment and retail distribution. The scope of study covers the products in Indian
export basket which have shown a promising growth in value. The Study concludes that Indian
exports to US and EU are export competitive as a whole. Sector wise analysis of export
performance of Indian textile and clothing sectors to US and EU reveal that so far apparel or
clothing and made-up is concerned; quota is the major constraint in the growth, while it is not
true in case of yarn exports. Indian textile and clothing sector has tremendous potential and only
a portion of which is explored till now and this shortcoming is due to policy constraints.

Meenakshi (2003) did a comprehensive study on the opportunities that would be provided by
WTO to Indian Textile industry. This paper gives a lot emphasis on new capacity installation to
take the benefits to the fullest extent in India has to be a true gainer in competition to other
nations. Since India’s own consumption per capita is also on the rise with the rise of income and
consumption habits, the profit margins available to Indian textile and clothing producers will be
more. But in export market, the prices will be driven by international factors and profits will be
under pressure. So the exporters might have to go for strategy of partial exports and partial
domestic sale.

Pandey (2003) in his article expected that Indian textile exporter would be benefited with quota
elimination. It discusses on various sectors of textile and clothing. Also he expects that hosiery
industry will be one of the gainer and small scale exporters will be more competitive due to
small size and controlled cost and lower overheads.

Vivek (2004) in his article had said that JC Penny a leading retail chain of US looks India for
sourcing its garments in woven and hosiery. He is of opinion that India will be fulfilling its major
need of Hosiery and woven garments in cotton while China will be good for synthetic fabrics and
its garments.

Trivedi (2005) in his article concluded that the textile is one sector where India has high
ambitions and can achieve robust growth through moderate human skills. India has skilled labour
and does better in this sector as compared to others. This will also Increase the employment and
the social structure will be better off.

19
Thomas (2005) in his article wrote on why in the competitive scenario wholesalers like Nike are
shy from keeping long inventories and stocks. So pressure is on garment . 104 companies to
deliver the goods in time. India has bottleneck in infrastructure, which hinders the time receipt of
raw material and delivery of finished goods. This would cause rapid airfreight and would
squeeze the margins. Government has to invest heavily in Infrastructure to keep the pace of
growth of garment industry intact and take the benefits to fullest extent.

Chaudhry (2006) did a very comprehensive study on the productivity of Indian Textile sector
and various related sectors. Very technical formulas are used to analyze the competitiveness of
Indian Textile Industry.

Bedi (2009) in his article had prepared detailed report on Indian textile industry covering various
sector of textile industry. This is one of the most comprehensive reports coveting all aspects of
textile industry, performance and hindrances in the growth of it.

20
 CHAPTER - 3

DATA ANALYSIS

21
3.1 Table Imports and Exports
Year Exports Imports Trade Balances
(in US$ billion.) (in US$ billion.) (in US$ billion.)
2011-2012 305.96 489.32 (-)183.36
2012-2013 300.40 490.74 (-)190.34
2013-2014 314.41 450.20 (-)135.79
2014-2015 310.34 448.03 (-)137.69
2015-2016 262.29 381.01 (-)118.72
2016-2017 275.85 384.36 (-)108.50
2017-2018 303.53 456.58 (-)162.05
2018-2019 330.08 514.08 (-)184.00
2019-2020 313.36 474.71 (-)161.35
2020-2021 291.81 394.44 (-)102.63
Source: DGCI&S

22
 Imports & Exports In India (2012-2021)
600

500

400

300

200

100

0
2011- 2012- 2013- 2014- 2015- 2016- 2017- 2018- 2019- 2020-
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
-100

-200

-300

Exports Imports Trade Balances

Source: From the Above Table 3.1

The table 3.1 shows the exports, imports, and trade balances (the difference between exports and
imports) in billions of US dollars for a country for each year from 2011-2012 to 2020-2021. In
India for the years 2011-2012 to 2020-2021. The trade balance represents the difference between
a country's exports and imports, where a negative value indicates a trade deficit (imports exceed
exports), and a positive value indicates a trade surplus (exports exceed imports).

In general, the country has had a trade deficit (negative trade balance) each year, meaning it has
imported more goods and services than it has exported. The trade deficit has fluctuated over the
years, with the largest deficit in 2018-2019 at -$184 billion and the smallest deficit in 2020-2021
at -$102.63 billion.

23
There is also some variability in the amount of exports and imports each year, but there is no
clear trend in either direction. For example, exports were highest in 2018-2019 at $330.08
billion, while imports were highest in 2018-2019 at $514.08 billion. Overall, the country appears
to have a relatively stable level of trade, with no significant growth or decline in exports or
imports over the past decade.

The country has consistently experienced a trade deficit (negative trade balance) over the years.
The trade deficit has been fluctuating between (-)102.63 billion US dollars in 2020-2021 and
(-)190.34 billion US dollars in 2012-2013, with the highest deficit occurring in 2018-2019.
Overall, the country has been importing more than it exports, leading to a negative impact on its
balance of payments and potentially affecting its currency's value.

3.2 Table Imports data

Sub Sector 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021
(Rs. In (Rs. In (Rs. In (Rs. In (Rs. In
Crore) Crore) Crore) Crore) Crore)

Machine Tools 6173 7752 12390 10288 5965

Die, Moulds and Press Tools 1200 1350 5500 6356 6000
Textile Machinery 10098 10687 10834 9273 8096
Printing Machinery 7734 8322 8922 8969 6814
Earthmoving And Mining 4200 5500 5600 4812 1166
Machinery
Plastic Processing Machinery 2300 2600 1304 914 1860
Food Processing Machinery 3686 3900 4742 4487 1965
Process Plant Equipment 11925 10600 4200 4650
Heavy Electrical Equipment 55291 55608 71570 67967 58336
Sector
Source: DGCI&S

24
 Import Data In India (2017-2021)
2016-2017 2017-2018 2018-2019 2019-2020 2020-2021

80000
70000
60000
50000
40000
30000
20000
10000
0
ls ls y y y y y t or
oo oo er er er er er en ct
T T hin hin hin hin hin m e
in
e
es
s ac a c a c ac a c ip tS
ch Pr M M M M M E qu en
a d le g g g g nt pm
M
an xti ir n
tin in
in
s si n si n la ui
s Te M ce es sP lE
q
ld P d ro oc s
ca
ou An P Pr oc
e
M g c od Pr ctri
e, in sti Fo l e
Di ov Pl
a
yE
m av
rth He
Ea

Source: From the Above Table 3.2

From the table 3.2, we can observe that the highest value of Imports in 2020-2021 was the Heavy
Electrical Equipment sector, with a production value of 58,336 crore Indian Rupees. This sub-
sector has consistently had the highest Imports value over the years.

Other sub-sectors, such as Textile Machinery, Printing Machinery, Food Processing Machinery,
and Die, Moulds and Press Tools, have maintained relatively consistent production values over
the years. In contrast, the Earthmoving and Mining Machinery and Plastic Processing Machinery
sub-sectors have experienced significant fluctuations in production values.

25
The highest of Imports of Machine Tools 12390(Rs. In crore) in 2018-2019; The highest of
Imports of Die, Moulds and Press Tools 6356(Rs. In crore) in 2019-2020; The highest of Imports
of Textile Machinery 10834(Rs. In crore) in 2018-2019; The highest of Imports of Printing
Machinery 8969(Rs. In crore) in 2019-2020; The highest of Imports of Earthmoving and Mining
Machinery 5600(Rs. In crore) in 2018-2019; The highest of Imports of Plastic Processing
Machinery 2600(Rs. In crore) in 2017-2018; The highest of Imports of Food Processing
Machinery 4742(Rs. In crore) in 2018-2019; The highest of Imports of Process Plant Equipment
11925(Rs. In crore) in 2016-2017; The highest of Imports of Heavy Electrical Equipment Sector
71570 (Rs. In crore) in 2018-2019.

Overall, the data suggests that the Indian manufacturing industry has seen mixed growth in
different sub-sectors over the years, with some showing growth and others declining. The table
provides insights into the production trends of different sub-sectors within the Indian
manufacturing industry, which can help businesses and policymakers make informed decisions
about investments and policies.

3.3 Table Export Data

Sub Sector 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021
(Rs. In (Rs. In (Rs. In (Rs. In (Rs. In
Crore) Crore) Crore) Crore) Crore)
Machine Tools 361 354 673 768 531
Die, Moulds and Press 1700 1600 1100 1138 973
Tools
Textile Machinery 2438 2939 3665 2556 3307
Printing Machinery 1332 1235 1180 1230 1012
Earthmoving And Mining 3700 4800 5300 3583 1816
Machinery
Plastic Processing 900 1100 247 335 1348
Machinery
Food Processing 2178 2560 2686 2737 4555
Machinery
Process Plant Equipment 9291 8950 7450 8330

26
 Heavy Electrical 39280 41677 52910 60698 63839
Equipment Sector
Source: DGCI&S

Export Data In India (2017-2021)

70000

60000

50000

40000

30000

20000

10000

0
s ls y y y y y t or
ol oo er er er er er en ct
To T hin hin hin hin hin m e
ne es
s ac c a c ac a c ip tS
hi Pr M M
a
M M M E qu en
ac d le g g g g nt pm
M an xti tin in
in si n si n la ui
ds Te rin M ce
s es sP lE
q
l P d ro oc s
ou An P Pr oc
e ca
M g c od Pr ctri
e, in sti Fo l e
Di ov Pl
a
yE
m av
rth He
Ea

2016-2017 2017-2018 2018-2019 2019-2020 2020-2021

Source: From the Above Table 3.3

The table 3.3 shows India's Export Data for different sub-sectors over a period of five years from
2016-2017 to 2020-2021. The data is presented in crore rupees (1 crore = 10 million) for each
year.

The sub-sectors listed in the table include Machine Tools, Die, Moulds and Press Tools, Textile
Machinery, Printing Machinery, Earthmoving and Mining Machinery, Plastic Processing
Machinery, Food Processing Machinery, Process Plant Equipment, and Heavy Electrical
Equipment Sector.

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For Machine Tools, the exports were 361 crore in 2016-2017, which decreased to 354 crore in
2017-2018, increased to 673 crore in 2018-2019, and further increased to 768 crore in 2019-
2020. However, there was a decrease in exports to 531 crore in 2020-2021.

Similarly, for other sub-sectors, the data shows fluctuations in exports over the five-year period.
For example, the Die, Moulds and Press Tools sub-sector had its highest export of 1700 crore in
2016-2017, which decreased to 1600 crore in 2017-2018 and further decreased to 1100 crore in
2018-2019. However, it increased slightly to 1138 crore in 2019-2020 and decreased again to
973 crore in 2020-2021.

It is important to note that the values shown in the table do not include India's domestic
consumption and only represent the exports made by the country in the respective sub-sectors.

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 CHAPTER - 4

CONCLUSION

The present research study concludes that, With the Liberalization, Privatization and
Globalization of the Indian economy and following liberal foreign trade, here had been changes
in the business environment. The traders face more difficulties for selling of goods and services.
Process of import and export are difficult one for every developing country. For the fast and
stable development of the country, the commercial relations of the country with the other
countries all over the world are very important. This is possible when a country allows imports
as well as exports of goods and services. The trade transactions are to be monitored for which
framing of the foreign trade policies is very much essential. Government has encouraged
exporters to improve production of various commodities. The exports and imports of a country
give rise to monetary transactions with other countries. Foreign Trade Policy 2015-20 is unveiled

29
with the objective of bringing stability and ease of doing business. The various new initiatives
undertaken are the move towards promoting exports, promoting use of technology, and reduction
in the transaction cost.

Imports and Exports is often considered to be a main determinant of the production and
employment growth of an economy. Based on various literature reviews and analysis shows that
there is constant of import, exports and GDP on economic growth in India. Therefore, in India on
one side where the economic growth surges by increasing export on the other side there is a
positive trend of exports on economic growth. The study finally suggests that both growth as
well as export promotion strategy is pursued consistently with an emphasis on sustainable and
inclusive growth.
India has efficiently formulated the Foreign Trade Policy to promote exports in the country. The
Government in its policy has tried to increase the exports of those products which have a strong
base in the domestic market. India is also trying to improve the export of other sectors. India has
also been one of the most sought after foreign investment destinations. The MEIS and SEIS are
great initiatives to enhance the export of goods and services and has consolidated the various
schemes which existed before. Around 70% of India’s exports constitute products that have just
a 30% share in global trade. 

The objective of the paper have been achieved. The effect of import volume and export volume
on service sector productivity have been modelled and assessed. The findings indicate that
external shock to import, export, and service sector productivity is not temporary but permanent.
This show that policies designed to influence these variables will have lasting effect on them.

The findings of the study show that export volume and import volume both significantly
influence service sector productivity. However, whereas export volume negatively affect service
sector productivity, import volumes positively affect service sector productivity. The negative
effect of export on service sector productivity do not support theory and empirical works that

30
indicate positive effect between service sector productivity and export volume. The positive
effect of import on service sector productivity support theory and empirical works that indicate
same link between service sector productivity and import volume.

The findings seem to suggest that policies to reduce import volumes might have deleterious
effect on service sector productivity, whereas policies to reduce export might not negatively
influence service sector productivity. Future study should consider the effect of export and
import of goods and services on service sector productivity to determine if the current findings
will be replicated. The long run and short run effects should be examine in future studies to be
able to isolate short run effect from long run effects. Causal studies should be examine in future
studies since the current studies did not consider causal issues.

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