Country Report - Research Paper Example

India’s agricultural industry makes up 18% of the country’s GDP and around 66% of the national population relies on this industry for a source of living (Hanko Hackberry Group n.d.). An excellent information technology industry leads the services sector in India. India’s trade shortfall reached $16.86 billion in November 2014, which is the highest since early 2013 (Sedghi 2013). This shortfall is below November 2013’s record of $10.6 billion, as well as the market’s projected deficit of $15.6 billion. Imports increased 26.

79% annually and exports rose 7.27% (Pawar and Veer 57). This made India’s balance of trade average at $1.932 billion in 2014 from 1957 with record tops and lows in 1977 and 2012 of $258.9 million and $-20.211 billion respectively (Hanko Hackberry Group n.d.). This trade shortfall reached a seven-month maximum of $131.5 billion in September 2014. An outstanding decline in exports drove the rise in India’s trade shortfall. Foreign sales tapered by 5% yearly in October 2014, which compared to the 2.

7% growth of September. At the same time, imports slowed down significantly from a 26% increase in September to a poor 3.6% growth in October 2014 (Sedghi 2013). This notable decline in imports echoed a restraint in gold demand and a decline in oil imports. India’s Foreign Trade (Development and Regulation) Act has been regulating imports and exports since 1992. This act gave the government vast regulation powers over the country’s trade operations. The country’s overall commodity trade rose more than three times from 2006’s $252 billion to 2012’s $794 billion (Hanko Hackberry Group n.d.).

A majority of India’s exports have been moving to Asia and Africa with Asia’s share growing to 51.6% between 2011 and 2012 from 2001 and 2002’s 40.2% (Sedghi 2013). Europe, as a destination of India’s exports, saw a deceleration from 24.7% in 2001 and 2002 to 19% in 2011 and 2012. India’s main export commodities were