Exports of a country play an important role in the economy.

A healthy balance, a sustainable development with trade and foreign exchange reserves to maintain the country's export growth should be a constant and high rate. Exports as a whole affect the industrial environment. To compete internationally, the industry standard for quality products, competitive price, good packaging, etc, which is important for overall industry. For export as a national priority for government and private sectors recognized by all agencies to export, export growth is to maintain high rates. Partnership between public and private sectors, export procedure, the better foreign direct investment (FDI), especially in the manufacturing sectors, the results at all levels should be. Exports as a motivating force to act fast developing Indian economy and India an important player in the global market can make. During 2002-03, merchandise exports are worth Rs. 2, compared to Rs 50 130 crore. 19.67% 209 017 million with a growth rate of Indian exports in 2001-02. India's GDP growth rate in exports strong factor contributing to GDP increases constantly day by day India in terms of population after China the second largest country in the world. India's economy has performed well in recent years after the country began to open in 1991. India's exports enter the WTO since 1995 has doubled. Total exports of goods and commercial services, India's share in the world is up 0.86 percent in 1995 from 0.61 per cent in 2001, total imports of goods and commercial services in the world, the country's stock 0.99 percent from 0.78 percent increase. India's trade usually last two decades, a faster growth rate than GDP growth. Since 1991, especially with liberalization, India's economy has boosted the importance of international trade. As a result of international trade to GDP ratio has gone from 14 percent in 1980, in the late 1990s to about 20 percent. Given the trends of globalization and liberalization to the openness of Indian economy is expected to grow further in the coming two decades. In 2020 India's trade and more precise magnitude of India's national income ratio will be determined by a variety of factors.

What determines the choice of invoicing currency?

Several studies have studied the determinants of invoicing in international trade (Bacchetta and van Wincoop 2005, Devereux, Engel, and Storgaard 2004, Gopinath, Itskhoki, and Rigobon 2009). Two broad categories of determinants emerge. The first reflects industry-specific characteristics, such as the degree to which goods are substitutable. When goods are close substitutes, an exporter wants to limit the ex post fluctuations of her products price relative to the prices of competing goods. This leads to a coalescing effect as the exporters opts for an invoicing currency that is similar to her competitors (Goldberg and Tille 2008). The second category of drivers reflects the need to hedge against macroeconomic shocks. This favours the use of currencies for which monetary policy is relatively stable, or currencies that offer a hedge by appreciating at times when the exporter faces higher production costs. The existing literature suffers from two limitations, however. First, empirical analyses consider aggregate datasets and overlook potentially substantial heterogeneity in invoicing practices in different industries. Second, the models used consider a unilateral invoicing choice where the exporter chooses the invoicing currency taking account of the customers downward sloping demand. But survey evidence from Friberg and Wilander (2008) shows that invoicing is set

through bargaining between exporters and importers.