India's Trade Overview

EXPORT PROCEDURES AND DOCUMENTATION

INTRODUCTION

Trade is essentially an international transformation of commodities, inputs and technology which promotes welfare in two ways. It extends the market of a country’s output beyond national frontiers and may ensure better prices through exports. Through imports, it makes available commodities, inputs and technology which are either not available or are available only at higher prices, thus taking consumers to a higher level of satisfaction. The foremost principle of foreign trade, viz., „the law of comparative costs, signifies that what a country exports and imports is determined not by its character in isolation but only in relation to those of its trading partners.

International trade injects global competitiveness and hence the domestic business units tend to become very efficient being exposed international competition. Due to the integration with the world economy the entrepreneurs can have easy access to the technological innovations. They can utilize the latest technologies to enhance their productivity.

• The developing countries have higher trade protectionism measures as compared to the developed countries. The countries that have adopted such measures are seen to reap the benefits of an open trade regime.

• The products that are labour intensive like clothing, footwear, textiles etc are exported by the developing countries to both developed and underdeveloped countries. Such exports earn heavy tax revenue in countries like Mexico, India, China and many more

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