Question.
Mention the characteristics of India’s foreign trade.
(NCERT class 12 geography, India People and Economy, Chapter-11: International Trade)
Answer.
India's foreign trade has changed drastically in the recent year in terms of volume, structure, and direction.
At present, India's share in foreign trade is around 1% but it plays a major role in the world economy and India's share in foreign trade is going to increase in the coming times.
Following are the salient features of India's foreign trade:
India's foreign trade is negative as our imports exceed exports. The foreign trade balance (value of exports - value of imports) in the year 2016-17 was (-) 7,25,082 crores.
In 2016-17, the manufacturing sector accounted for 73.6% of the total value of exports. This is a result of the growth of manufacturing sectors in India after the LPG reforms of 1991.
As per the foreign trade data for 2016-17, the top five import items are petroleum refineries, non-ferrous metals, precious metals gold pearls, chemical products, and edible oils.
Earlier during the 1950s and 1960s, the major import items were food grains, capital goods, machinery, and equipment. But now, the imports of agriculture and allied activities have declined and we import mostly edible oil and pulses.
As per the foreign trade data for 2016-17, the top four export items are manufacturing goods, agriculture and allied activities, mineral fuels and lubricants, and ores and minerals.
India's foreign trade is with most of the countries and major trade blocs of the world.
Among regions, Asia and ASEAN are India's major trading partners.
Most of India's foreign trade is done by sea and air routes.
China, the USA, and United Arab Emirates are the major trading countries of India.
We have trade surpluses with the United States and European countries.
We have a huge trade deficit between China and the ASEAN countries.
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