Import Export Data- A look into India’s Balance sheet

Import export data can be very useful to judge the health of an economy. Imports can be broadly classified as the goods that a nation buys from other nations in exchange of a commonly accepted currency. This currency is often the US Dollar or the Euro. Imports are often discouraged by many nations on the grounds that they are drainers of foreign currency and made the country poor. In the pre liberalization age the motto for self- sufficiency was raised by the government and exports were encouraged. But in the post liberalization age the restrictions on many sectors of imports have been lifted.

Exports can be broadly be defined as the goods that one country sends to another country in exchange of a commonly accepted currency. Often trade agreements make the currency of either country acceptable currency, like the Russia India trade agreement of 2010. Exports were encouraged both before and after liberalization as they still pump in large volumes of foreign currency into the nation.  

The balance of Trade:

Import Export Data of India is available on the finance ministry website and gives us an overview of India’s balance of trade. Balance of trade is judged mainly by the imports and exports done by a country. It goes the show if there is a trade deficit in the country or there is a trade surplus. In case there is a trade deficit in the balance of trade it tells us that the country has a larger import of goods than an export of goods. In case the balance of trade shows a Trade Surplus it tell us that the income generated for the government exports are far greater than the income lost in imports.

Import export data published every quarter helps us measure the quarter to quarter balance of trade.

Look into India’s balance Sheet:

The import export data published for the months of April to September 2013 have been used as cornerstone for the analysis in this article. Some sectors that have seen a growth in this financial year over the last are: Tea, Mechanical machinery, automobile, Nuclear power hardware. Some of the sectors that have seen a large growth in import quantities in the same time frame are Crude oil, animal and vegetable oil and pharmaceuticals. The major drainage for India’s foreign currency comes with the import of petroleum on the back of raising demand from the domestic sector. This rising demand has forced the Indian government to sign many trade agreements with oil rich countries like Iran, which allows India to pay in the currency of either of the two nations.

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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