Export & Import
India has the seventh largest economy in the world with respect to nominal GDP and third largest with respect to purchasing power parity.
The exchange of capital, goods and services transcending internal borders and territories is known as International Trade. Mostly, this involves government regulations as it affects the domestic and global politics. International trade has existed throughout the history and has impacted the social, economic and political climate of that region. But at the turn of the twenty first century, globalization has led to a great influence of international trade.
Top traded commodities are:
- Mineral fuels, oils, distillation products
- Electrical, electronic equipment
- Machinery, nuclear reactors, boilers
- Vehicles other than railway
- Plastics and articles thereof
- Optical, photo, technical, medical
- Pharmaceutical products
- Iron and steel
- Organic chemicals
- Pearls, precious stones, metals, coins
Exports stands for transporting the goods and services produced using the national resources, out of the jurisdiction of the country. The party that sells the goods is termed as the exporter and it operates from the country of export. The other party is termed as importer.
Imports stands for transporting the goods and services produced using the national resources, into the jurisdiction of the country.
The difference in value for import and export for a country is known as the Balance of Trade. When the domestic demands and needs exceeds the quantities produced within the territory of the nation, it imports the balance requirement. Many a times, when the price of goods or service is cheaper in the international market, the nation imports the same. The country’s income and natural resources impact the degree of imports. Import even affects the world politics.