Journal Press India^®

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By an estimate of UNDP the total production of three emerging economics (India, China, Brazil) will surpass the total production of six developed countries (US, UK, Canada, France, Germany and Italy) by 2020. The access technology, information and infrastructure in emerging economics like India has enabled the business fertility to be abreast of the changing consumer and producer behavior patterns. It is fair that the changing pattern of international trade is reflected in production of goods and services within the borders open economy. This change in domestic production pattern of goods and services due to change in pattern of foreign trade is the topic of research analysis of this study. The study is done in three parts. Part one focuses on gross domestic product at factor cost of Indian economy and the changing pattern of contribution of three prime sectors namely agriculture, industry and service sector. Part two focus on pattern of foreign trade of Indian economy since 1950. The final part analysis the change in production within Indian economy due to the change foreign trade off the economy itself. The impact of international trade has been interrupted using aggregation analysis on secondary data taken from central banks database. It is found that exports and imports of merchandise have greater and more significant impact on GDPFC the of invisibles. The findings are exceptional for labor intensive economy which advocates improvement in service to focus on strength.

Keywords

Foreign trade, contribution, Indian income, exports, imports, GDP, services, goods, regression analysis, economic growth.

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MPRA Paper No. 30961, posted 19. May 2011 09:40UTC.