Answer to Question #304623 in Economics of Enterprise for Yogesh

Question

1. Discuss the recent trends in India’s foreign trade.

2. Write an essay on New Agriculture Bill 2020. What are the challenges and concerns for its effective implementation?

Maximum word limit 2000 for each question.

Answer 1

1.The pandemic-driven global trade turmoil has hit global trade hard in 2020 and India has not been immune from it. Exports increased by 6.8 percent in fiscal year 2020-2021 to $291.8 billion. Among the major exports, high-grade fuels (petroleum), gems and precious metals were predominantly the most exported categories, with a combined share of 18 percent.

In 2021, the pharmaceutical industry is predictably on the upswing, with its products making up the third largest export statistic for this fiscal year. Over the past year, the pharmaceutical industry in India has received new investment flows, found partners for the production of vaccines and biotechnology, introduced manufacturing initiatives to develop PLI (Production-Linked Incentives) against the backdrop of a natural increase in consumption.

On the other hand, in the 2020-2021 fiscal year, imports were over 16 percent and $394 billion. Mineral fuels, precious stones and metals related to imported goods, as well as increased demand for animal and vegetable fats and oils.

It should be noted that raw materials and intermediate products make up the bulk of India's exports, while finished goods account for a significant portion of India's imports.India's foreign trade volume fell by 6.8 percent - the World Trade Organization (WTO) in October 2020 predicted a fall of 9.2 percent.

Despite the economic downturn during the pandemic, in foreign trade in 2020-2021, the fiscal year saw the pace of expansion and development in large sectors and forecasts due to unique market demand and failures in the probability chain.

2.The laws were supposed to change the system of state wholesale markets: farmers would sell their products directly to food producers. But the abolition of the above system, in the opinion of farmers, will lead to the termination of the state-guaranteed minimum price level, thereby reducing the prices that they will receive for their crops. Accordingly, there were protests and the bill was cance.