International TradeClass 12 India - People And Economy NCERT Solutions

(i) Mention the characteristics of Indias foreign trade. India's foreign trade is characterized by a massive increase in volume over the years, a changing composition of traded goods, and diversification in the direction of trade. A persistent feature is the negative trade balance, where the value of imports has consistently been higher than the value of exports.

(ii) Distinguish between port and harbour. A harbour is a sheltered body of water, natural or artificial, where ships can anchor safely. A port is a commercial facility built along a harbour with infrastructure like docks, wharves, and warehouses for loading and unloading cargo and passengers, essentially serving as a gateway for trade.

(iii) Explain the meaning of hinterland. The hinterland of a port is the area that it serves for exports and imports. It is the region from which goods are collected for export and to which imported goods are distributed. The boundary of a hinterland is not fixed and can overlap with that of other ports.

(iv) Name important items which India imports from different countries. Major items that India imports include petroleum, oil, and lubricants (POL), capital goods (machinery and equipment), chemical products, non-ferrous metals, pearls, precious and semi-precious stones, fertilisers, edible oils, and iron and steel.

(v) Name the ports of India located on the east coast. The major ports of India located on the east coast are:

(i) Describe the composition of export and import trade of India. The composition of India's international trade has undergone significant changes over the years, reflecting the shifts in its economy.

Composition of Exports: India's export basket has diversified. While manufactured goods continue to be the largest component, accounting for 67.8% in 2021-22, their overall share has slightly decreased. Within this category, engineering goods, as well as gems and jewellery, are major contributors. The share of agriculture and allied products has also declined due to tough international competition. A notable trend is the increase in the share of crude and petroleum products, which rose to 16.4% in 2021-22. The share of ores and minerals has remained relatively constant.

Composition of Imports: Historically, India imported food grains, but this changed after the Green Revolution. Today, the largest import item is fuel (petroleum, oil, and lubricants), whose share increased to 31.6% in 2021-22, indicating rising industrialization and energy needs. In contrast, the share of capital goods in imports has declined, suggesting an increase in domestic production. Other major imports include chemical products, non-ferrous metals, pearls, precious stones, and edible oils.

(ii) Write a note on the changing nature of the international trade of India. India's international trade has undergone a sea change in recent decades, marked by transformations in its volume, composition, and direction.