I.

MERCHANDISE TRADE
EXPORTS (including re-exports)
Exports have been exhibiting positive growth for the last eight months. In continuation withgrowth
indicated by exports since September 2016, exports during May 2017have shown growth of 8.32per
cent in dollar terms valued at US$ 24014.62million as compared to US$ 22170.62 million during
May,2016. In Rupee terms, duringMay 2017 exports were valued at Rs. 154713.69crore as compared
to Rs. 148336.31crore during May,2016, registering a positive growth of 4.30 per cent.
During May 2017, Major commodity groups of export having a share of 72.09% in total export basket
which have shown positive growth over the corresponding month of last year are Engineering Goods
(8.25%), Gems& Jewellery (6%), Petroleum Products (24.92%), RMG of all Textiles (8.06%), Organic
& Inorganic Chemicals (15.34%),Rice (27.08%), Marine Products (44.58%) and Electronic Goods
(8.57%).
Cumulative value of exports for the period April-May 2017-18 was US $48649.71 million (Rs
313627.48 crore) as against US $42739.47 million (Rs 285056.42 crore) registering a positive growth
of 13.83 per cent in Dollar terms and 10.02 per cent in Rupee terms over the same period last year.
Non-petroleum and Non Gems & Jewellery exports in May 2017 were valued at US$ 17514.36million
against US$ 16404.31million in May 2016, an increase of 6.77 %. Non-petroleum and Non Gems and
Jewellery exports during April -May 2017-18 were valued at US$ 35233.23 million as compared to
US$ 31540.72 million for the corresponding period in 2016-17, an increase of 11.71%.
IMPORTS
Imports during May 2017 were valued at US$ 37856.34 million (Rs. 243888.74 crore) which was
33.09per cent higher in Dollar terms and 28.16per cent higher in Rupee terms over the level of imports
valued at US$ 28443.52 million (Rs. 190306.19crore) in May, 2016. Cumulative value of imports for
the period April-May 2017-18 was US$ 75740.62 million (Rs. 488269.26 crore) as against US$
53857.24 million (Rs. 359229.90 crore) registering a positive growth of 40.63 per cent in Dollar terms
and 35.92 per cent in Rupee terms over the same period last year.
Major commodity group of imports showing high growth in May 2017 over the corresponding month
of last yearare Petroleum, Crude &products (29.54%),Gold(236.69%), Electronic goods(34.16%),
Pearls, precious & Semi-precious stones(37.61%) and Machinery, electrical & non-electrical(6.42%).

CRUDE OIL AND NON-OIL IMPORTS:

Oil imports during May, 2017 were valued at US$ 7692.71 million which was 29.54percent higher than
oil imports valued at US$ 5938.59million in May [Link] imports during April-May, 2017-18 were
valued at US$ 15051.98 million which was 29.82 per cent higher than the oil imports of US$ 11594.51
million in the corresponding period last year.
In this connection it is mentioned that the global Brent prices ($/bbl) have increased by 7.94% in May
2017 vis--vis May 2016 as per World Bank commodity price data (The pink sheet).
Non-oil imports during May, 2017 were estimated at US$ 30163.63 million which was 34.03per cent
higher than non-oil imports of US$ 22504.93million in May, 2016. Non-oil imports during April-May
2017-18 were valued at US$ 60688.64 million which was 43.60 per cent higher than the level of such
imports valued at US$ 42262.73 million in April-May, 2016-17.
II. TRADE IN SERVICES (for April, 2017, as per the RBI Press Release dated 15th June, 2017)
EXPORTS (Receipts)
Exports during April 2017 were valued at US$ 12904 Million (Rs. 83239.96Crore) registering a
negative growth of 8.99 per cent in dollar terms as compared to positive growth of 8.57 per cent during
March 2017 (as per RBIs Press Release for the respective months).
IMPORTS (Payments)
Imports during April 2017 were valued at US$ 7222 Million (Rs. 46587.03Crore) registering a
negativegrowth of 12.64per cent in dollar terms as compared to positive growth of 14.26 per cent
during March2017 (as per RBIs Press Release for the respective months).
[Link] BALANCE
MERCHANDISE: The trade deficit for May 2017 was estimated at US$ 13841.72 million as
againstthe deficit of US$ 6272.90 million during May 2016.
SERVICES: As per RBIs Press Release dated 15th June2017, the trade balance in Services (i.e. net
export of Services) for April, 2017 was estimated at US$ 5682 million.
OVERALL TRADE BALANCE:Taking merchandise and services together, overall trade deficit for
April- May 2017-18 is estimated at US$ 21408.91 million as compared to US$ 5392.77 million during
April-May 2016-17. (Services data pertains to April 2017 as April 2017 is the latest data available as
per RBIs Press Release dated 15th June 2017)

MERCHANDISE TRADE

EXPORTS & IMPORTS : (US $ Million)

(PROVISIONAL)
MAY APRIL-
MAY
EXPORTS(including re-exports)
2016-17 22170.62 42739.47
2017-18 24014.62 48649.71
%Growth 2017-18/ 2016-17 8.32 13.83
IMPORTS
2016-17 28443.52 53857.24
2017-18 37856.34 75740.62
%Growth 2017-18/ 2016-17 33.09 40.63
TRADE BALANCE
2016-17 -6272.90 -11117.77
2017-18 -13841.72 -27090.91

EXPORTS &IMPORTS : (Rs. Crore)

(PROVISIONAL)
MAY APRIL-
MAY
EXPORTS(including re-exports)

2016-17 148336.31 285056.42

2017-18 154713.69 313627.48
%Growth 2017-18/ 2016-17 4.30 10.02
IMPORTS
2016-17 190306.19 359229.90
2017-18 243888.74 488269.26
%Growth 2017-18/ 2016-17 28.16 35.92
TRADE BALANCE
2016-17 -41969.88 -74173.48
2017-18 -89175.05 -174641.78

SERVICES TRADE

EXPORTS & IMPORTS (SERVICES) : (US $ Million)

(Provisional) April 2017
EXPORTS (Receipts) 12904

IMPORTS (Payments) 7222

TRADE BALANCE 5682

EXPORTS & IMPORTS (SERVICES): (Rs. Crore)

 (Provisional) April 2017
EXPORTS (Receipts) 83239.96

IMPORTS (Payments) 46587.03

TRADE BALANCE 36652.93

Source: RBI Press Release dated 15thJune,2017

MJPS

Foreign trade in India includes all imports and exports to and from India. At the level of Central
Government it is administered by the Ministry of Commerce and Industry.[1] Foreign trade
accounted for 48.8% of India's GDP in 2015.[2]

Characterstics

1. Negative or Unfavourable Trade:

India had to import various items like heavy machinery, agricultural
implements, mineral oil and metals on a large scale after Independence for
economic growth.

2. Diversity in Exports:
Previously, India used to export its traditional commodities only which
included tea, jute, cotton textile, leather, etc. But great diversity has been
observed in Indias export commodities during the last few years. India now
exports over 7,500 commodities. Since 1991, India has emerged as a
major exporter of computer software and that too to some of the advanced
countries like the USA and Japan.

3. Worldwide Trade:
India had trade links with Britain and a few selected countries only before
Independence. But now India has trade links with almost all the regions of
the world. India exports its goods to as many as 190 countries and imports
from 140 countries.

4. Change in Imports:
Earlier we used to import food-grains and manufactured goods only. But
now oil is the largest single commodity imported by India. Both the imports
as well as exports of pearls and precious stones have increased
considerably during the last few years. Our other important commodities of
import are iron and steel, fertilizers, edible oils and paper.

5. Maritime Trade:
About 95 per cent of our foreign trade is done through sea routes. Trade
through land routes is possible with neighbouring countries only. But
unfortunately, all our neighbouring countries including China, Nepal, and
Myanmar are cut off from India by lofty mountain ranges which makes trade
by land routes rather difficult. We can have easy access through land
routes with Pakistan only but the trade suffered heavily due to political
differences between the two countries.

6. Trade through a few Selected Ports Only:

We have only 12 major ports along the coast of India which handle about
90 per cent overseas trade of India. Very small amount of foreign trade is
handled by the remaining medium and small ports.

7. Insignificant Place of India in the World Overseas

Trade:
Although India has about 16 per cent of the worlds population, her share in
the world overseas trade is less than one per cent. This shows the
insignificant place of India in the worlds overseas trade. This is, however,
partly due to very large internal trade, vast dimensions of the country
provide a solid base for inter-state trade within the country. Europe is
divided into a large number of smaller countries and the international trade
is quite high (trade counted twice, first time as exports and second times as
imports).

8. State Trading:
Most of Indias overseas trade is done in public sector by state agencies
and very little trade is done by individuals.

(i) Change in the composition of exports:

After independence many changes took place in export trade. India
exported tea, jute, cloth, iron, spices and leather before
independence. Now chemicals, readymade garments, gems,
jewellery, electronic goods, processed foods, machines. Computer
software etc. are exported along with tea, jute and cotton textiles.

(ii) Change in the composition of imports:

India imported consumer goods, medicines, textiles, motor vehicles
and electrical goods before independence. After independence,
imports are fertilizers, petroleum, steel, machines, industrial raw
materials, edible oils and unfinished diamonds.

(iii) Direction of foreign trade:

Direction of foreign trade means those countries with which India
has trade ties. Before independence, India has trade relations with
England and Commonwealth Nations Now India has trade relations
with U.S.A, Russia, Japan, European Union and Organization of
Petroleum Exporting Countries (OPEC).
(iv) Balance of trade:
Simply speaking balance of trade means the difference between
value of exports and imports. Balance of payments is favourable if
exports exceed imports and un-favourable if imports exceeds export.
Indias balance of payment was favourable before Independence. It
was favourable to Rs. 42 crore, but after independence it becomes
un-favourable. It was Rs. 65741 crore adverse in 2003-04.

(v) Dependent trade:

Before independence, Indian foreign trade was dependent on
foreign shipping, insurance and banking companies. After
independence, cargo ships are being built in India. Banks and
insurance companies have started taking interest in foreign trade.

(vi) Trade through sea routes:

Indias foreign trade is through sea routes. India has very little trade
relations with neighbouring countries like Nepal, Afghanistan,
Pakistan, Bhutan and Sri Lanka etc.

(vii) Dependence on a few Ports:

Indian foreign trade is through Chennai, Kolkata and Mumbai ports.
These ports are always over-crowded. After independence ports like
Kandla, Cochin and Vishakhapatnam have been developed.

(viii) Less percentage of world trade:

Indias share in world trade has been diminishing. It was 1.8% of
worlds total imports and 2% of worlds total exports in 1950-51. In
2003-04 Indias share in total world imports was 1% and in total
world exports was 0.8%.

(ix) Increased Share in Gross National Income:

Foreign trade has significant contribution in Indian national
income. In 1950-51, Indias foreign trade contribution into national
income was 12% and rose is 29% in 2003-04.
(x) Increae in value and volume of trade:
The value and volume of imports and exports increased many fold.
In 1950-51 imports were Rs. 608 crores and exports were Rs. 606
crores. So total value was Rs. 1214 crores. In 2003-04, it increased
to Rs. 6, 52,475 crore. Value of exports 2, 93,367 crore and of
imports 3, 59,108 crore.

India's Share in Global Trade

Indias performance in World trade based on the WTO database which provides the data
calendar year-wise is given as follows:

India's Trade Performance: Percentage Share in World Trade

India's Share
India's Share India's Share
Years in World
in World Commercial in World Merchandise
Services Exports Plus Services Exports
Merchandise Exports
2011 1.7 3.2 1.9
2012 1.6 3.2 1.9
2013 1.7 3.1 2.0
2014 1.7 3.1 2.0
2015 1.6 3.3 2.0

Source: World Trade Organization

The Government has launched several schemes and measures to increase Indias share in
global trade, which are as follows:
(i) The Merchandise Exports from India Scheme (MEIS) was introduced in the Foreign
Trade Policy (FTP) 2015-20 on April 1, 2015 with 4914 tariff lines at 8 digit levels. The
Government has extended the market coverage to all countries in respect of 7914 tariff
lines. The revenue forgone under the scheme (MEIS) has increased from Rs. 22000 Crore
to Rs. 23500 Crore per annum.
(ii) The Government launched Services Exports from India Scheme (SEIS) in the FTP
2015-2020. The Scheme provided rewards to service providers of notified services who
are providing service from India.
 (iii) The Government is implementing the Niryat Bandhu Scheme with an objective to reach
out to the new and potential exporters including exporters from Micro, Small & Medium
Enterprises (MSMEs) and mentor them through orientation programmes, counseling
sessions, individual facilitation, etc., on various aspects of foreign trade for being able to
get into international trade and boost exports from India.
(iv) By way of trade facilitation and enhancing the ease of doing business, Government
reduced the number of mandatory documents required for exports and imports to three
each, which is comparable with international benchmarks. The trade community can file
applications online for various trade related schemes. Online payment of application fees
through Credit/Debit cards and electronic funds transfer from 53 Banks has been put in
place.
(v) Interest Equalization Scheme on pre & post shipment credit launched to provide cheaper
credit to exporters.
(vi) Further, the Government continues to provide the facility of access to duty free raw
materials and capital goods for exports through schemes like Advance Authorization,
Duty Free Import Authorization (DFIA), Export Promotion Capital Goods (EPCG) and
drawback / refund of duties.

The details of the sectors covered under MEIS are given below:

S.
Product Category
No.
1 Fruits, Flowers and Vegetables
2 Tea, Coffee, Spices and Cashew
3 Cereals preparation, Seeds, Shellac and Essential oils
4 Processed foods, Cocoa products and Beverages
5 Eco Friendly products that add value to waste
6 Remaining Agriculture and Animal Products
7 Poultry & Dairy Products
8 Marine Products
9 Wines and Beer & Liqueur
10 Pharmaceuticals, Surgical and Herbal Products
11 Chemicals
12 Plastic Articles
13 Moulded and Extruded goods, Rubber, Ceramic and Glass
14 Auto Tyres and Tubes
15 Wood , Paper and Stationary Products
16 Handloom, Coir, Jute products and Technical Textiles
17 Carpets
18 Handicrafts
19 Textile and Garments
20 Sports Goods
21 Finished leather, Leather Garments and Goods, Saddlery Items
 and Footwear
22 Misc Manufactured articles, Auto seats, Steel furniture, Prefabs,
Lighters, Mattresses etc.
23 Furniture and Wood Articles
24 Iron, Steel and Base Metal Products
25 Industrial Machinery, Engineering items, IC Engines, Machine
tools and Parts
26 Hand Tools, Cutting Tools and Implements Made of Metals
27 Pumps of All Types
28 Automobiles, Two wheelers, Bicycles, Ships and Planes
29 Auto Components/Parts
30 Telecom, Computer and Electronics Products