Indian economy is the second largest in the world measured according to nominal GDP and the third largest in the world as per the purchasing power parity (PPP). Also Indian economy is on the fastest growing economies of the world. With an average growth rate of approximately 7%, Indian economy possesses the potential to become the third largest economy of the world by the next decade. With the fastest growing service sector, India has become one of the biggest exporters of IT, BPO and software services with a total export of around $187 billion in 2013-14.
Ever since the liberalization of 1991 the valve of India’s international trade has risen sharply giving way to increase in imports and exports. India accounts for 1.44% of total exports and 2.12% of total imports for merchandise trade and 3.34% exports and 3.13 total imports in the commercial service trade worldwide. .like every other liberalized economy, the growth on Indian economy largely depends upon imports and exports. India has been actively engaged in international trade since the liberalization of its economy and has signed a number of bilateral and multilateral trade agreements with a number of countries. There has been a significant impact of exports and imports on the growth rate of India during the period of 2000-2013.
India exports approximately 7500 goods from 190 countries and imports around 6000 commodities from 140 different countries. Major trading partners of India are European Union, China, United States of America and United Arab Emirates. Imports and exports India have shown a positive growth rate in the last decade and is expected to show the same trend in the coming years as well with the service sector depicting the fastest growth rate.
Major exports of India include engineering goods, petroleum products, chemicals and pharmaceuticals, gems and jewelry, textile and garments, agricultural products, iron ore and other minerals and major imports include crude oil and related products, machinery, electronics, gold and silver. With Indian imports and imports showing a positive trend, it will have a positive impact on the growth of economy and consolidate the hopes of Indian economy becoming the third largest in the world.