Recent Trends in Indian Foreign trade

Hess and cateor defines international trade as "the performance of business activities that direct the flow of the goods and services to customers or users in more then one nation. " Marketing is a human activity directed at satisfying needs and wants through exchange process. Marketing try to actualise potential exchange for the purpose of satisfying human needs and wants. International national marketing is a part of the total marketing process. It refers to the marketing activities carried on by a marketer in more then one nation. It may be defined as "marketing carried on across national boundaries. " Marketing activities, i.

e. , buying ,selling, transportation, storage and warehousing , financing risk baring, pricing, standardising, advertising and sales promotion exc. May be called as international trade when performed in foreign markets across the national border. (Balu,V. 2000). International trade involves opening a branch in foreign market for processing. Packing or assembling the products as per the needs of the markets. The branch also carries out export through direct investments. International trade involves creating joint ventures and collaboration in foreign countries with some foreign firms for manufacturing and /or marketing the products.

In these joint ventures; the company works in collaboration with the foreign firm in order exploit the foreign markets. he firm which opens a branch at abroad gets licensing arrangements with the foreign firm where by foreign enterprises are granted the right to use the exporting company's know how, viz. patents, process or trade marks according to the terms of agreement with or without financial investment. In the global market, there is a scope for getting consultancy services. The exporting company offers consultancy services by undertaking turnkey projects in foreign countries.

For this purpose, it sends its consultants and exports to foreign countries who guide and direct the manufacturing activities on the spot. Japan has participated in India's foreign trade even in the early 1950s. As of now Japan is one of the most important trading partners of India, second only to the US in most of the years. The next important trading partner is Germany. The USSR has the major trading partners to India between 1960-62 to 1999-2000; the share of India's exports to Eastern Europe had more than doubled (from 7 per cent to 17 per cent).

The political and economic policy changes in the Eastern Europe have distorted the trade with the region. Since, China is doing much exports to the developed economies and it has become one of the largest trading partner s of the USA. Though India is doing more exports to the US , the share of India in the total imports of US is negotiable. The industrial market economies have recently accounted for more than half of India's exports compared to about two-thirds around 1960. (Southeran Economist. 2002).

Critical evaluation of the Indian Economic liberalisation in aspect of foreign trade: Since 1951, the year of the beginning of Five years plans, economic development in India had been guided by certain policy considerations. Although there have been changes in the policy environment since the beginning of the Eighties the current phase of the policy regime, since 1991, heralds the end of the earlier policy structure. These new changes in policy can be collectively called the policy environment of Economic Liberalisation. (Jingam,M. L. 2002).