Balance of Trade BOT


 
 
Concept Explanation
 

Balance of Trade BOT

Balance of Trade (BOT)  :  The Balance of Trade is the difference between export and import of a country. When the value of export exceeds the value of imports, it is called a favorable balance of trade. On the contrary, if the value of imports exceeds the value of exports, it is termed as Unfavorable Balance of Trade.

Export Share:  Major commodities exported from India include agriculture and allied products (9.9%), gems and jewellery (14.7%), engineering goods, chemicals and petroleum products (16.8%), ores and minerals(4.0%), etc, in 2010-11.

Import Share :  The major items being imported by India include petroleum and petroleum products (28.0%), pearls and precious stones (9.4%), chemicals (5.2%) , coke and briguettes (2.7%), machinery (6.4%), etc in 2010-11. Bulk imports as a group registered account for 28.2% of total imports. These include cereals(14.3%), edible oils (174%), and newsprint and paper board manufacture (40.3%) in 2010-11.

Changing International Trade in India:

International trade has undergone a major change since the start of liberalisation in 1991. India has emerged as a software giant at the international level and is earning large amounts of foreign exchange through the export of information technology.

 
 
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