A Mapping of India’s Trade

India’s economy is growing day by day as compared to GDP over the past few years. Since 1991, the International trade strengthens the country’s economy due to the liberalization. Due to which the ratio of international trade to GDP has rises continuously with certain factors.

We are going to classify these factors into three categories

1.The Demand of India’s Export of Goods and Services

2.The Supply of India’s Export of Goods and Services

3.The Demands for India’s Imports

1.Factors that affect Demands for Export- India’s trading factor depend upon the intensities of India trade relation with other countries such as North America, the Middle union, Middle East, Asia and south Asia. Although US market adversely affect the demands for products.

2.Factor Affecting the Supply of Exports- It has been observed that India’s is unable to fulfill the supply scheduled due to following reasons are as follow.

a.Infrastructure Bottleneck - This is one of the critical factors in fulfilling the supply order. Due to power shortage, delay in transportation and less efficient techniques proves to be failure in demand supply.

b.Domestic Demand Growth - The huge growth of domestic demands lessen the exporting products.

c.Inflow of Export-Orientated Foreign Direct Investment -  MNE’S play a great role in the manufacturing of exports from East and South –East Asian countries as they provide  good investment platform from US and Japanese MNE’S.

3.Factor Affecting the Demand for Imports- Due to the overall growth of the economy, trade liberalization and growth changing factors, increases the surplus demand for import. The performances of Indian industry generated a tremendous optimism and sustain an existing competitive platform for future time.

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