ZENITH International Journal of Business Economics & Management Research
  • Year: 2015
  • Volume: 5
  • Issue: 2

Impact of foreign trade on Indian economic growth-with respect to Gross Domestic Product (GDP)

  • Author:
  • P. Chellasamy, A. Anu Menon
  • Total Page Count: 6
  • Page Number: 67 to 72

*Faculty, School of Commerce, Bharathiar University, Coimbatore-641046. Tamil Nadu, India

**M. Phil, Research Scholar, School of Commerce, Bharathiar University, Coimbatore-641046. Tamil Nadu, India

Online published on 10 February, 2015.

Abstract

The most significant determinants of economic development in a country are foreign trade. The Foreign Trade of a country consists of inward and outward movement of goods and services, which result into outflow and inflow of foreign exchange from one country to another country. This main purpose of this study is to analyze the impact of foreign trade on Gross Domestic Product of India using annual data from 2004–2005 to 2013–2014. Relevant data were collected from the reports of Ministry Of Commerce. Data were analyzed by using statistical tools. The analysis revealed that there is a significant impact posed by foreign trade on Gross Domestic Product. Import contributes positively to our Gross Domestic Product (GDP) where as Export's contribution is unenthusiastic. Finally some recommendations have been provided at policy and strategic level.

Keywords

Foreign Trade, Gross Domestic Product, Economic Development