A Study on Export and Imports of Pearls in India PDF

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A Study on Export and Imports of Pearls in India – Foreign Trade
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CONTENTS
1. Introduction..................................................................................................................................6
Research Objectives.....................................................................................................................8
2. Literature Review......................................................................................................................10
3. Imports and Exports of India.....................................................................................................13
India’s Foreign Trade: January 2018.........................................................................................14
Exports (including re-exports)...................................................................................................14
Imports.......................................................................................................................................15
Crude Oil and Non-Oil Imports.................................................................................................16
Exports (Receipts).....................................................................................................................16
Imports (Payments)....................................................................................................................17
Trade Balance............................................................................................................................17
India’s Top Trading Partners.....................................................................................................18
Top Companies Serving Indian Trading Partners.....................................................................19
India Balance of Trade...............................................................................................................21
3. Research Methodology..............................................................................................................24
About Secondary Data...............................................................................................................24
Scope of the study......................................................................................................................28
Limitations of the study.............................................................................................................28
4. Data Analysis.............................................................................................................................31
Exports of Pearls........................................................................................................................33
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Imports of Pearls........................................................................................................................34
Impact of GDP and Inflation on Pearls Exports........................................................................38
Impact of GDP and Inflation on Pearl Imports..........................................................................40
5. Findings.....................................................................................................................................43
6. Discussion and Conclusion........................................................................................................44
7. Suggestions................................................................................................................................46
Bibliography..................................................................................................................................47
Appendix........................................................................................................................................48
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List of Tables
Table 1: Foreign Trade of Pearl, Precs, Semiprecs Stones............................................................31
Table 2: Descriptive Statistics.......................................................................................................32
Table 3: Correlation between Exports and Imports.......................................................................37
Table 4: ANOVA Summary..........................................................................................................38
Table 5: Linear Regression............................................................................................................39
Table 6: ANOVA for Pearl Imports..............................................................................................40
Table 7: Linear Regression for Imports.........................................................................................41
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List of Figures
Figure 1: Pearls and precious stones................................................................................................7
Figure 2: Exports and Imports of India Trend...............................................................................18
Figure 3: India Country Growth v/s World Growth v/s GDP Growth..........................................22
Figure 4: Source of Secondary Data..............................................................................................29
Figure 5: Year-wise Exports of Pearls (INR Crores).....................................................................33
Figure 6: Year-wise Imports of Pearls...........................................................................................34
Figure 7: Comparison of exports and imports...............................................................................35
Figure 8: Share of Pearls Exports and Imports..............................................................................36
Figure 9: Foreign trade of pearls...................................................................................................48
Figure 10: Top 10 commodities of India’s Foreign Trade............................................................49
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INTRODUCTION
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1. Introduction
India’s second and third largest import is gold and other precious and semi-precious
stones. Collectively, they account for nearly US $57 and $59.6 billion worth of imported goods
in the fiscal year 2015 and 2016, respectively. The domestic consumer demand for gold is
steered by cultural and economic factors. Mostly, Indians purchase gold for various occasions,
like marriage ceremonies or festivals because it is regarded auspicious. Erstwhile, many Indians
consider gold as one of the safest investment options. Likewise, India also imports major
quantities of pearls, precious and semi- precious stones for the same reason as that of gold. The
gem and jewellery sector exports US $24.6 billion per year, as of the latest data. The Indian
government has subsequently identified the jewellery sector for export production (Thankur,
2017).
Trade and exchange rate liberalization has been central to the structural adjustment
programmes implemented by India since the early 1990s. The quantitative restrictions (QRs) on
importing capital goods and intermediates were mostly dismantled in 1992, although the ban on
importing consumer goods continued, with some exceptions, until the late 1990s (Veeramani,
2012). Trade relationships between Asia and Europe have never been interrupted since the
ancient times; as the Europeans were in continuous need for many commodities from the East;
foremost of which were spices, silk, and pearls. In addition, some of them were in dire need for
markets to offer their products for sale; e.g., wool, of which the English produced large
quantities in excess of their actual need (Al-Maani and Alsharari, 2014).
Gems and Jewellery comprising diamonds, gold jewellery, silver jewellery etc. constitute
a growth potential export sector. The product group of gems and jewellery makes significant
contribution to country’s overall export earnings and remains in forefront of foreign exchange
earners. The C.G.R of exports of Gems and Jewellery is found to be 15.4 percent during pre -
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reform period but during the post reform period, exports of gems and jewellery declined slightly
due to non-availability of good quality rough gemstones, breaking of single channel supply and
growing competition, Demand contraction in developed countries resulting from global recession
etc (Sahni, 2014).
Figure 1: Pearls and precious stones
(Source: https://blog.ipleaders.in/legal-requisites-for-starting-the-import-or-export-of-pearls-
precious-and-semi-precious-stones/)
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