- The basic role of the Department of Commerce is creation of an enabling environment and infrastructure for accelerated growth of exports.
- The Department formulates implements and monitors the Foreign Trade Policy (FTP) which provides the basic framework of policy and strategy to be followed for promoting exports and trade.
- India’s total merchandise trade as a percentage of GDP increased from 29.5% in 2004-05 to 1% in 2013-14.
- India’s merchandise exports as a percentage of GDP increased from 12.6% in 2004-05 to 1% in 2013-14.
- The year 2013-14 also witnessed a reversal in the trend of trade deficit that had ballooned 6 billion US$ in 2000-01. The deficit fell sharply in 2013-14 by 27.8 percent to 5 billion US $ on the back of 8.3% contraction of imports over the previous year and mild growth of 4.1% of exports.
- India’s GDP growth has come down from 8.6% in 2009-10 to 7% in 2013-14 as per provisional estimates.
- As per the rankings for the year 2013 by WTO in its Press Release, April, 2014, India was the 19th largest exporter (with a share of 1.7%) and 12th largest importer (with a share of 2.5%) of merchandise trade in the world.
- In Commercial Services, India is the 6th largest exporter (with a share of Commerce 3.3%) and 7th largest importer (with a share of 2.9%).
- As per WTO, growth in Global Trade was 2.1% in 2013 against 2.3 percent in 2012.
- Global Trade is expected to grow by 4.7% in 2014 and by 5.3% in 2015. However, the growth of 4.7% in 2014 is still below 20 years (1983-2013) average of 5.3%.
- As per IMF’s World Economic Outlook (WEO) July, 2014, growth in volume of world trade increased marginally to 1% in 2013 over 2.8% in 2012 and is projected to accelerate further to 4% and 5.3% in 2014 and 2015 respectively.
- Emerging market and developing economies is projected to grow at the rate of 4.6% and 5.2% in 2014 and 2015 while advanced economies are projected to grow at the rate of 1.8% and 2.4% in 2014 and 2015.
- India has been pursuing a policy of market diversification directing her export promotion efforts at Asia and ASEAN, Latin America and Africa through Focus Market initiatives and bilateral trade agreements.
- The Foreign Trade Policy 2014 is under the process of formulation.
- The service sector has been a major force in driving growth in the Indian economy It has also been a major financer for India’s merchandise trade deficit.
- Services surplus (net services) financed around 53% of merchandise trade deficit during 2013-14.
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