International Trade
Class 12 Geography · India People and Economy · Chapter 8
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اردو (اختیاری)
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संस्कृतम् (केन्द्रिकम्)
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Physics
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اردو (کور)
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Fine Art · Painting
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हिंदुस्तानी संगीत (गायन / वादन)
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Accountancy
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Biotechnology
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सृजनात्मक लेखन और अनुवाद
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हिंदुस्तानी संगीत (तबला / पखावज)
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History
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Summary
International trade is mutually beneficial because no country is self-sufficient, and India's foreign trade has changed greatly in volume, composition and direction, though India contributes only about one per cent of world trade. From Rs 1,214 crore in 1950-51, external trade rose sharply due to growth in manufacturing, liberal government policies and diversification of markets, but the value of imports has continued to exceed exports, giving a persistent trade deficit. In exports, the share of agriculture and allied products and manufactured goods has declined while crude petroleum and other commodities have risen; manufacturing alone accounted for about 67.8 per cent of exports in 2021-22, with engineering goods and gems and jewellery prominent. In imports, foodgrain was the major item in the 1950s and 1960s, but after the Green Revolution it was replaced by petroleum, fertilisers, machinery, edible oil and chemicals, with petroleum products rising sharply. India trades with most countries and major blocs, mostly through sea and air routes. Sea ports are the gateways of international trade; India has 12 major ports and about 200 minor ports, with the west coast having more ports than the east. Major ports include Deendayal (Kandla), Mumbai, Jawaharlal Nehru, Mormugao, New Mangalore, Cochin, Kolkata, Haldia, Paradip, Visakhapatnam, Chennai, Kamarajar (Ennore) and Tuticorin, each serving a hinterland. Airports also handle high-value, perishable goods despite high cost.
Key terms
Trade balance
The difference between the value of a country's exports and imports, persistently negative for India.
Composition of trade
The kinds of commodities a country exports and imports, which change over time.
Hinterland
The inland area served by a port from which it draws and to which it distributes goods.
Major port
A port whose policy and regulation are decided by the central government, of which India has 12.
Land-locked harbour
A harbour connected to the sea by a channel, such as Visakhapatnam.
Entrepot trade
The collection of goods from different countries at a port for re-export.
Extra questions & answers
Try one from this chapter
Trade between two countries is termed: