Indian Economy in The Global Context: India's Exports and Imports and Brief Account of USA Economy

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India’S Exports

  • India exports its surplus of goods and services to many countries. Main export partners are France, Germany, U.K, U.S.A, Iran, U.A.E, China, Hong Kong, Singapore and some African and Latin American countries.

  • The major exports of India include Engineering goods, Agricultural and allied sector products, petroleum products and Electronic goods etc.

Export Data for 2017-18 (source Wikipedia):

Agricultural Products --------- 12.8%

Fuel and Mining products ----13.8%

Manufacturers ------------------70.5%

Others -----------------------------2.9%

  • Major export partners E.U (17.4%), U.S (16.1%) and U.A.E (9.6%)

  • Total Exports Value $303.4 billion

India’S Imports

  • In the beginning of trade policy India usually import more petroleum products. India also imports Non-ferrous metals, capital goods and fertilizers. Due to many some reasons India used to put many import restrictions and barriers in order to protect domestic market. Anyhow, after globalization most of the import restrictions removed and free trade encouraged.

  • Some of the importing goods are Precious metals like gold and pearls, Electronic goods, Chemical materials and products, Fertilizers, Pharmaceutical products etc.

Import Data for 2017-18 (source Wikipedia)

Agricultural Products ----------8.1%

Fuel and Mining products ----30%

Manufacturers ------------------51.7%

Others ----------------------------10.2%

Major Import Partners

China (16.6%), EU (10.4%), U.S (5.7%), UAE (4.9%) and Saudi Arabia (4.6%)

Total Imports Value $465.6 billion

India is still having lees exports compared to imports. India is under trade deficit.

Comparison of Economic Development of India with China and USA

  • It is important to compare Indian economy with other economies in order to know our improvements. USA is a developed economy with more power in the world. The common think between India and USA is that they are two largest democratic countries of the world. China is an emerging power in the world. Earlier it was a developing economy almost at equal level with India. But today China become strong economy.

  • Comparison with these countries is important as they are, we established economies.

Brief Account of USA Economy

  • When we discuss about powerful economy first thing comes in mind is USA economy. Because of US’s dominance, in the world trade.

  • USA is a Service Economy with more than 80% of its GDP contributed by service sector. USA is one of the top three exporters of goods and services in the world and also the biggest importer of the world. USA currency is an international currency because of its power. It can circulate anywhere in the world. Most of the international economic transactions took place in US dollars.

  • Some facts of US Economy to prove it is a Powerful Economy of the world:

    • GDP rank 1st (nominal) and 2nd (PPP) (as per 2017-18 Statistics source: Wikipedia)

    • Ease-of-doing business rank -6th

    • Total Foreign Reserves $121.587 billion

    • GDP per capita Income around $60k per year

  • USA became strong economic power because of many reasons. Most of the giant global companies like Apple, Amazon, Google, Microsoft, Face book, General Motors, Coca cola etc., are from USA. Out of 10, 7 richest people are in USA.

  • USA also has advanced technologies and superior services in health and education services. People living below poverty are around 12% and unemployment is around 3.7%.

The Economy of China

China became a powerful economy after 1980s. Now China is competing with USA in every aspect to get more power. Earlier China Economy was a developing economy. Most of its GDP is contributed by both service and manufacturing sectors. China is the world’s largest manufacturing economy and exporter of goods.

Facts of China Economy

  • GDP Rank 2nd (nominal) and 1st (PPP)

  • GDP per capita Income around $10k

  • Exports US $2.26 trillion and Imports US $1.84 trillion

  • Foreign Reserves $3.16 trillion

There are many reasons behind the success of China Economy.

  • China is the most populous country in the world (more than 135 crore). Country utilized its limited resources to bring out the optimum output to become a strong economy. Available work force in china is more and it was diverted to manufacturing. In this manner, China become world’s largest Manufacturer.

  • China poverty rate fell from 88% in 1981 to 6.5% in 2012, and it is around 3.3% in 2018. China also following five-year planning in order to implement economy.

  • India needs to learn many things from these two economy giants. Even though China is a populous country, it becomes a powerful economy.

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