5. Indian Exports and Imports

All nations in this Globalized era are dependent on each other. There are bound to import goods which are not available to them locally and to sell to earn money and meet their local demands. It is a boon to have a positive balance of trade meaning more exports than imports which our Nation is earning from outside also apart from the domestic tax receipts.

Let us analyze some data of our country,

Exports during June, 2014 were valued at US $ 26479.72 million (Rs.1,58,165.21 crore).

Imports during June, 2014 were valued at US $ 38242.96 million (Rs.2,28,427.88 crore).

Cumulative value of exports for the period April-June 2014-15 was US $ 80112.30 million (Rs 4,78,928.90 crore)

Cumulative value of imports for the period April-June 2014-15 was US $ 113196.23 million (Rs

6,76,694.53 crore)

So, The trade deficit for April-June, 2014-15 was estimated at US $ 33083.93 million.(Rs. 1,99,380.30 crore)

For 3 months of this fiscal year, We have a trade deficit of nearly 2 lakh crores. Considering, India has 123 crores people. So, Per capita, There is a balance of 1626 crores. This is considering Govt has zero earning but it earns through tax receipts. Total tax collected by Govt of India in 2013-14 is 7,42,115 crores. So, It would amount to 1,85,528 crores per quarter.

But we have already 2 lakh crores as trade deficit. As we can see, Govt is not earning enough even to pay the trade deficit. What about the money for development works, subsidies, Monthly salaries, Loan repayments? Where will come from? Get more loans from IMF or World bank? Will be sustain with this state of economics?

Let us look into what are we exporting,

For the month of June, Our Main exports have been 1. Petroleum products, 2. Engineering goods, 3. Gems and Jewelry, 4. Textiles, Drugs and Pharmaceuticals, 5. Organic and inorganic chemicals, 6. Cotton and other fabrics, 7. Rice 8. Electronic Goods, 9. Plastic and Linoleum, 10. Marine Products 11. Man made yarn/fabrics in the order of their values.

Our Main imports have been 1. Petroleum, Crude and products, 2. Gold 3. Electronic Goods, 4. Machinery, electrical and non-electrical, 5. Pearls, Precious stones, 6. Organic and Inorganic chemicals, 7. Coal, coke and briquettes, 8. Iron and steel, 9. Transport Equipment, 10. Artificial resins, plastic materials 11. Non ferrous metals in the order of their values.

Out of the 38 thousand million dollar imports, Petroleum amounts for 13 thousand million dollars. That would be 34% of our imports. Can we now imagine our dependency on Oil?

If we look at the top 10 list of exports, Not only is it saddening back visionless. Our top export is Petroleum products, Electronic Goods is at 8th position. There is no automobiles in the top ten list. Cant we manufacture transport equipment ourselves? Why do we have to import it?

We need to vitalize Manufacturing sector. Develop sophisticated goods. Export military products which earns huge. We need to end products more and more. Why do we have to import Coal when we have huge reserves of it locally available? Why do we have to import Iron and Steel when we have one of the Asia's best Iron ores available here? Can't we avert Mining mafia and use the local iron ores to manufacture more and more end products?

The crucial factors for attaining all the above concerns are scale, speed and skill. Our PM's new 3S mantra. We need to increase the scale of manufacturing and human capital utilization. Increase the speed of manufacturing. We should have the skill to develop and manufacture Worlds best goods and products.

Time is money. Time lost wont come back. May we move in right direction. All ministries should work cohesively. Involve proactively. Work with Vision. They have the right leader to co-operate and channel their energies. Hope, The current situation of trade imbalance improves in coming days.