How I Improved My IMPORTS In One Day

Because of tough competition, you can sell only if the quality of your product is better than that of your competitors, the price most competitive and the buyers get delivery on time.

In order to achieve all this, one needs to have access to international standard quality materials and capital goods.

We also need to have better technology at our command as there is a sea change in the markets worldwide.

We have moved from letters to e-mails, telefaxes to video conferencing and manually operated phones to cellular phones via satellite.

Today it is not possible to compete in the world without a better technological product.

We cannot match the standards of quality and services that others offer if we happen to be out-dated – and that means out of market as well.

By accepting membership of the World Trade Organisation (WTO), India has become a part of the global village.

New trade blocks are emerging and new world order is getting established.

Even regional trading arrangements (RTAs) are mushrooming and it is estimated by the WTO that by 2010 there would be close to 400 RTAs.

Even India is negotiating bilateral agreements with various countries and regional groupings.

A number of joint ventures are being signed for export promotion as well as better quality production for domestic market.

The FDI inflows into the country from 1991 to June, 2008 stand at more than $ 89 billion.

We have witnessed a major change in this area between the years 1992-2007 and if one scans through the newspapers, one will find that economic news has taken priority over political news.

The area in which the imports are almost essential are defence requirements, crude oil, fertilizers, capital goods, industrial inputs like raw materials, components, consumables, spares, etc., import of samples, import of technology, import of drawing and designs, import of services etc.

There are many vital areas where there is a need to import capital goods - new as well as second hand - in order to upgrade our products and services.

Further, there is an increase in factor mobility.

The various factors of production like raw materials, labour, capital goods, spares, consumables, etc. have become mobile.

It is easy to relocate any of these factors from one country to another depending on where they are needed.

This gives rise to opportunities where various components of a value chain are completed in different countries.

For example, a company in USA may buy fabric from China, source design from Italy, labour from Bangladesh and Sri Lanka and arrange to make a garment to be sold in Europe.

Likewise, in the case of contract manufacture, a firm makes a contract with another firm abroad whereby the contracted party manufactures or assembles a product on behalf of the contractor. The contractor retains full control over marketing and distribution