A Study on the Impact of Globalisation in Promoting of Foreign Trade in the Growth and Development of Indian Economy
Author : Dr. Srinivasa Padmakar Sivalanka
Abstract :
For the growth and development of economy of any nation, the economic activities like industry, trade, Commerce, and business are very crucial and highly significant. Among the various classification of trade, foreign trade is a driving force for recording high rate of national economy. Through foreign trade, exchange of goods and services may happen between the countries with the cordial bi-lateral and multi-lateral trade relations. Exchange of goods and services through the exports and imports between the countries will fulfil the needs of people of those countries. These are the result of bilateral negotiations and cordial relations prevailed between the countries.
All the goods and services which are needed for the total population in the country may not be possible to manufacture in the country itself due to lack of infrastructure, resources, skills and technological advancements and scientific knowledge and human resources. With all these reasons, many countries will depend mostly on imports from various countries. For ex: our country mainly depending on Arab countries and gulf countries for crude oil which is very much required for daily public transportation services, cooking gas. Like that many countries depending on various imports of food grains, cloth, material, electronic goods, wheat etc. for their public survival.
Not only goods and services, but also information technology, scientific knowledge, plant, machinery, and equipment, needed for heavy industries, software and hardware technology and software equipment and software programming development., medical and surgery equipment also will be imported from certain countries for their needs and economic growth and development. At the same time exports also be made to other countries from the manufacturing countries, consequent on the bilateral agreements.
Balance of trade and balance of payment, if surplus balance is maintained it is measuring scale to decide countries bill payment capacity. A specific range of foreign trade relations at high peak level between countries also treated as ‘Most favoured nation’ giving priority to deal with trading activities with a particular country. It is status to specific country. It is a globalisation effect.
Advanced countries also like USA, Germany Canada, Australia, and Japan are hiring their services to many countries. Importing human resources by creating employment opportunities to foreign expert in their project which is the result of globalization.
This is a comprehensive paper which studies in depth and examines how the foreign trade between countries leads to growth and development of national economy of a country and how the foreign trade surplus can be achieved and how a country is self-sufficient by minimising imports and maximising the exports and, also how the balance of payments situation shall be improved overcoming the disequilibrium situations.
Keywords :
Balance of trade, balance of payments, forex reserves, credit worthiness, self-sufficiency, multi-lateral trade relations
