Key Points

India's international trade has grown significantly, from Rs. 1,214 crore in 1950-51 to Rs. 77,19,796 crore in 2020-21. This sharp rise is due to manufacturing growth, liberal government policies, and market diversification.

A consistent feature of India's foreign trade is that the value of imports has been higher than the value of exports. This results in a negative or unfavorable balance of trade.

The composition of India's exports has shifted over time. The share of agriculture and manufactured goods has decreased, while the share of crude petroleum and its products has increased.

Despite a decline in its percentage share, the manufacturing sector remains the largest contributor to India's exports. In 2021-22, it accounted for 67.8 percent of the total export value, with engineering goods, gems, and jewellery being key items.

In the 1950s and 1960s, India primarily imported food grains and machinery. After the Green Revolution and the 1973 energy crisis, imports shifted to fertilizers and petroleum, which now dominate the import basket.

Petroleum products are the single largest commodity group in India's imports. They are used not only as fuel but also as a critical raw material for various industries, reflecting the country's industrial growth.

India has trade relations with most countries and major trading blocks. Asia and ASEAN countries form the largest region in terms of India's import trade.

The vast majority of India's foreign trade is conducted through sea and air routes. A smaller portion is carried out via land routes with neighboring countries like Nepal, Bhutan, and Bangladesh.

India has 12 major ports, which are regulated by the central government and handle the majority of traffic. There are also around 200 minor or intermediate ports whose functions are regulated by state governments.

The 1947 partition resulted in the loss of two key ports: Karachi port went to Pakistan and Chittagong port went to East Pakistan (now Bangladesh). To compensate, new ports like Kandla (Deendayal Port) were developed.

Major ports on the west coast include Deendayal Port (Kandla), Mumbai (the biggest port), Jawaharlal Nehru Port (largest container port), Marmagao, New Mangalore, and Kochchi.

Major ports on the east coast include Kolkata (a riverine port), Haldia (its satellite port), Paradwip, Visakhapatnam, Chennai (an artificial harbor), Ennore, and Tuticorin.

Visakhapatnam Port in Andhra Pradesh is a unique land-locked harbour. It is connected to the sea by a channel that was cut through solid rock and sand.

Kolkata port, located 128 km inland on the Hugli river, faces the problem of silt accumulation. Its satellite port, Haldia, was developed to reduce congestion and handle bulk cargo.

Air transport is crucial for international trade, especially for high-value or perishable goods that require fast delivery over long distances. However, it is costly and unsuitable for heavy, bulky commodities, limiting its overall share compared to sea routes.