Selling of goods and services from a country to outside the country is known as Export and buying the goods or services from outside the country is known as Import. Export and import both are the part of International trade.
No country in the World is self sufficient, all the countries are dependent on each other and exchange of the goods and services done by International trade have the mutual benefits of countries. For doing the International trade the International routes are required to be developed to connect the countries for the exchange of commodities. Government has launched various export promotion scheme to promote the export business such as MEIS Scheme and Advance Authorisation Scheme was introduced by the Government of India.
Technologies used in the International trade:-
- Optical Character Recognition (OCR) technology in Trade business
- Radio Frequency Identification (RFID) technology in trade
- QR codes to identify and trace shipments
- Blockchain technology
- Artificial Intelligence and Machine Learning
- 3D-printing
- Mobile payments
Under EPCG Scheme exporters are allowed to import duty free capital goods to manufacture export goods.
Below are the trade agreement signed by the Government of India with other countries to allow the import export.
Unilateral Trade Agreement:-
Under unilateral trade agreement, the agreement imposed on one country by another. The facilities are taken by only one country.
Bilateral Trade Agreements:-
To boost bilateral trade between India and Russia Government has signed a trade agreement, both the country has vision to expand bilateral trade, both are working on the agreements to import crude oil from Russia to India. Prime Minister Narendra Modi signed a MoI(Memorandum of Intent) to open Maritime route to Chennai on easteen seaboard which will be the 10,000 Km sea route and will bring duration of the shipping of goods from India to Russia’s Far east from 40 days to 24 days.
Activation of INSTC after the visit of Mr Trump in India would give rise to opportunities for landlocked Central Asian countries for trade in both the direction and India can connect to Russia through Iran and into Central Assia.
Russia is reportedly facilitating a free trade agreement(FTA) between India & Eurasian Economic Union and Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan are the part of this.
Trilateral agreement:-
A trilateral agreement was signed between India, Iran, Afghanistan to develop the transport and trade through Chabahar port bypassing Pakistan between all three countries.
Chabahar Port is located in Gulf of Oman quite to the Gwadar Port of Pakistan being developed by China, this is the reason it has great importance for Indian trade which give India direct access in Afghanistan with the border town of Zaranj and with Central Asia and Europe through Zarang – Delram highway (Constructed by India).
Government of India launched MEIS Scheme to promote the goods export from the country by providing incentive in the form of license which can be used in waiver of custom duty.