Value of exports and imports in the planning period

Ø The table given below presents information on the value of foreign trade in India over the period of planning in terms of US Dollars. ( US $ million)

Year	Exports	Imports	Trade Balance	Rate of exchange Exports	Rate of exchange Imports
(1)	(2)	(3)	(4)	(5)	(6)
1950-51	1269	1273	-4	24.9	-1.5
1960-61	1346	2353	-1007	0.3	16.7
1970-71	2031	2162	-131	8.8	3.6
1980-81	8446	15869	-7383	6.8	40.2
1990-91	18143	24075	-5932	9.2	13.5
2000-01	44560	50536	-5976	21.0	1.7
2009-10	178751	288373	109621	-3.5	-5.0
2010-11	251136	369769	118633	40.5	28.2

Ø The value of India’s exports and imports has increased considerably over the period of planning.

Ø From 1269 million US $ in 1950-51, exports rose to 2,51,136 million US $ in 2010-11.

Ø Imports during this period rose from 1,273 million US $ to 3,69,769 million US $.

Ø It can also be noted that the country has faced substantial trade deficits during the period of planning.

Ø In fact, the trade balance was positive in only two years during the entire period 1949-50 to 2010-11.

Ø These were the years of 1972-73 and 1976-77 when the country recorded small trade surpluses of 134 million and 77 million respectively.

Ø The year 1990-91 saw a trade deficit of 5,932 million as imports rose by 13.5 per cent against a rise of 9.2 per cent registered by exports over the year 1989-90.

Ø However, strict import restrictions were imposed in 1991-92 which led to a 19.4 per cent reduction in the value of imports and the trade deficit declined to 1,546 million.

Ø This had a decelerating effect on industrial growth.

Ø To reverse this trend, massive import liberalization measures were undertaken in 1992-93.

 The year 2001-02 was bad for exports as they registered a decline by 1.6 per cent due to weakening global demand.

Ø Exports and imports registered a negative rate of growth in 2009-10 as a result of shock from the global economic crisis.

Ø They rebounded by 40.5 per cent and 28.2 per cent respectively in 2010-11.



Ø Trade deficit in 2010-11 touched the highest ever level of 1,18,633 million recorded in the post-independence period.