As an emerging economy of the world, India still has a lower percentage contribution in world trade. India ranks 20th in merchandise export and 13th in merchandise import while it stands at seventh rank as far as commercial service export is concerned (WTO statistics, Oct.2011).The annual percentage change in the merchandise export (f.o.b.) and merchandise import (c.i.s) basis is 17 and 18 respectively and surprisingly till date (2010) India’s share of world total export is only 1.44 percent while in import it is merely 2.12 percent. The Draft Twelfth Five Year Plan Document also points out this concern of export-import gap of India’ foreign trade in these words “India’s balance of trade must be managed too. The growth of the Indian economy is sucking in imports – of energy, as well as a whole range of manufactured goods MSMEs(capital goods and manufactured intermediates/components). To balance trade, the country’s export basket must include a much larger volume of manufactured goods. The country cannot just increase raw material exports and import finished goods.