Name: International Trade
Uploaded: 2019-07-19
Duration: 6 min 17 s
Description: Understanding International Trade: India's Journey and Evolution

Question

Write a note on the changing nature of international trade in India.

Accepted Answer

At the time of independence, India's foreign trade was around Rs. $1200$ crore. With rapid industrialisation and development, unprecedented growth has been seen in it within the next $70$ years, as in the year $2016 - 17$ the worth of India's foreign trade was more than Rs. $440000$ crore. The manufacturing sector, liberal policies of the government, and market diversification played an important role in it.

The composition of imports, as well as exports, has also been changed over the years. In the initial days, the share of agricultural and allied products was more in the exports, but it has declined and that of other products, like petroleum and crude products and other goods, has increased in the list of exports. Exports of traditional items such as coffee, cashew, etc. also declined, on the other hand, marine products, floricultural products, fresh fruits, sugar, and some other commodities have seen an increase. There are many Asian countries like China, from which Indian products are facing tough competition.

During the $1950 s$ and $1960 s$ , India faced a serious problem of food shortage. Foodgrain, machinery, capital goods, and equipments were the major item of import at that time, due to which our imports were more than our exports, and hence there was a negative balance of payment. After the success of the Green revolution in India, foodgrain imports were discontinued and were replaced by fertilisers and petroleum. But since there was an energy crisis in the $1970 s$ due to which the price of crude oil increased and the overall impact on India's balance of payment was negative. However, many steps have been taken by the government to make our country self-reliant.

Write a note on the changing nature of international trade in India.

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