Question.
Write a note on the changing nature of international trade in India.
(NCERT class 12 geography, India People and Economy, Chapter-11: International Trade)
Answer.
The trade which is done with foreign countries is called international trade. No country in the world is self-sufficient in all resources at all times, which is why every country does international trade. The demand for goods and services changes over time, which is why the nature of international trade also changes.
Following are the changing nature of India's international trade:
India's international trade was Rs 1,214 crore in the year 1950-51, which increased to Rs 44.30 lakh crore in the year 2016-17.
Before the 1970s, many agricultural products were imported into India; After the 1970s, following the success of the Green Revolution, imports of agriculture and allied goods declined. India is now exporting many agricultural commodities like rice, and wheat to many countries.
The share of manufacturing goods in exports was negligible before the 1980s; After the LPG reform, we export a number of manufacturing items and manufactured goods accounted for 74.6% of the total export values in 2017-18.
After the energy crisis of 1973 and due to the growth of industrialization and the improvement of living standards in India, there has been a huge increase in the import of petroleum and crude oil and the share of petroleum is the most imported commodity in the country.
We import fertilizer from countries like Israel as the demand for fertilizers increased after the Green Revolution.
As per 2016-17 data, the top four import items are petroleum items, non-ferrous metals, pearl-precious metals, and chemical products.
Asia and ASEAN are India's major trading partners and Latin America is India's least trading partner.
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