Trade and Commerce
The influence on trade and commerce inside India's growth is unparalleled. This article is going to discuss in-depth about trade and commerce in the Indian Economy.
There is a mixed economy in India, where public and private sectors coexist in a developing economy. To get a general picture of the Indian economy, one must first look at its strengths rather than weaknesses.
Definition of Indian Economy
The Indian economic system describes the role or pattern of manufacturing and distribution in society. Economics can be complicated or straightforward. In other words, it may be “blended” between capitalism and socialism. The economy may be primarily agricultural, or it may be principally industrial.
History of Indian Trade and Commerce
It’s also worth noting that the development of the Indian economy is heavily influenced by its geography and environment. The Himalayas surround India, mainly in the north and the Arabian Sea, in the south. There has been a great deal of economic expansion across continents because of its proximity to the ocean. Silk, cotton, sugar, and precious stones were some of the most famous exports from India in the past. Spices were also exported from India to the west via the spice route. Gold and silver were used to purchase these commodities from other countries. With the dawn of the Industrial Age in the West, India’s trading fortunes took a backseat. Indian economic growth may be traced back to developing the country’s trade and commerce. A significant role in the development of the Indian economy was played by trade and commerce, as evidenced by archaeological finds on land and at sea.
Some of the elements that contributed to India’s rise to the top of the list in trade and commerce are listed below. Entrepreneurship, entrepreneurial attitude, perseverance, and integrity were all hallmarks of the Indian mercantile class. As a result, Indian-made goods were renowned for their quality since they were unique and unavailable elsewhere globally. As a result of their expertise in shipbuilding, the Indians also had a deep understanding of maritime routes, winds, and other navigation characteristics. They were able to conduct business in faraway regions because of this.
Types of Trade and Commerce Divisions
Ten divisions make up the department’s functional structure of Trade and Commerce in the Indian Economy. They are:
- Branches of International Trade Policy
- Export Industry Branches
- Economic Branches
- Divisions for Foreign Trade Territories
- Exports Product Branches
- Logistics Branches
- Administration and General Service Branches
- Export Services Branches
- Finance Branches
- Supply Division
Functions of Trade and Commerce
It is the responsibility of the Foreign Trade Policy (FTP) to design, implement, and monitor the core framework of policy and planning for exports and trade. There are regular revisions to the Trade and Commerce Policy to keep up with changing economic conditions domestically and internationally. Other duties allocated to the Department include managing multilateral and bilateral trade relationships, overseeing the operation of Special Economic Zones and different state-sponsored trading zones for export promotion, and regulating some export-oriented sectors and commodities.
In the Commerce Department, the Secretary is supported by several senior officers in this Indian economy, including one Special Secretary, one Officer on Special Duty (OSD), three additional Administrative Assistants, one Special Superintendent and Financial Advisor, thirteen Joint Secretaries, two Additional Secretary Rank Officials and one Joint Secretary.
Impact of Indian Economy on Trade and Commerce
Due to India’s highly protected domestic market, the country’s import and export commerce has developed slowly, resulting in a long period of time in which trade deficits have existed. As a result, the Indian economy‘s growth will be slowed by a lack of foreign commerce. This largely made a huge impact on trade and commerce.
Government Initiatives in Indian Economy
Mrs Sitharaman, the Corporate Affairs and Finance Minister, delivered the foremost Union Budget of the 21st Century in Parliament, dated First February 2020. Efforts to resuscitate this Indian economy were directed at immediate, medium, and long-term goals. To encourage private investment, the government is likely to increase its spending to encourage private investment, with every presentation attached to a stimulus programme providing great chances. This Indian economy is envisioned to satisfy a steady stream of graded, proactive, as well as measured policy backing.
Conclusion
The function of merchants, who served as intermediaries in the acquisition and distribution of the products, was elevated due to the expansion of trade and commerce. A rise in profitability was attributed to the value of commodities exchanged in the Indian economy.