NCERT Textbook - International Trade | Geography for UPSC CSE PDF Download

 Page 1


86 India : People and Economy
Unit IV Unit IV Unit IV Unit IV Unit IV
Chapter 8
INTERNATIONAL
TRADE
You have already studied about the various
aspects of International trade in the book
Fundamentals of Human Geography.
International Trade is mutually beneficial as
no country is self-sufficient. India’s
international trade has undergone a sea change
in recent years in terms of volume, composition
as well as direction. Although India’s
contribution in the world trade is as low as
one per cent of the total volume, yet it plays a
significant role in the world economy.
Let us examine the changing pattern of
India’s International trade. In 1950-51, India’s
external trade was worth Rs.1,214 crore, which
rose to Rs. 77,19,796 crore in 2020-21. Can
you calculate the percentage growth in 2020-21
over 1950-51? There are numerous reasons for
this sharp rise in overseas trade, such as the
momentum picked up by the manufacturing
sectors, the liberal policies of the government
and the diversification of markets.
The nature of India’s foreign trade has
changed over the years (Table 8.1). Though there
has been an increase in the total volume of import
and export, the value of import continued to be
higher than that of exports.
Changing P Changing P Changing P Changing P Changing Pa a a a attern of ttern of ttern of ttern of ttern of the the the the the
Composition of Composition of Composition of Composition of Composition of India’ India’ India’ India’ India’s Expor s Expor s Expor s Expor s Exports ts ts ts ts
Fig. 8.1
Extent of gap between Exports and Imports in India’s
foreign trade During 2013-14 to 2021-22
Source: Economic Survey 2022-23
2024-25
Page 2


86 India : People and Economy
Unit IV Unit IV Unit IV Unit IV Unit IV
Chapter 8
INTERNATIONAL
TRADE
You have already studied about the various
aspects of International trade in the book
Fundamentals of Human Geography.
International Trade is mutually beneficial as
no country is self-sufficient. India’s
international trade has undergone a sea change
in recent years in terms of volume, composition
as well as direction. Although India’s
contribution in the world trade is as low as
one per cent of the total volume, yet it plays a
significant role in the world economy.
Let us examine the changing pattern of
India’s International trade. In 1950-51, India’s
external trade was worth Rs.1,214 crore, which
rose to Rs. 77,19,796 crore in 2020-21. Can
you calculate the percentage growth in 2020-21
over 1950-51? There are numerous reasons for
this sharp rise in overseas trade, such as the
momentum picked up by the manufacturing
sectors, the liberal policies of the government
and the diversification of markets.
The nature of India’s foreign trade has
changed over the years (Table 8.1). Though there
has been an increase in the total volume of import
and export, the value of import continued to be
higher than that of exports.
Changing P Changing P Changing P Changing P Changing Pa a a a attern of ttern of ttern of ttern of ttern of the the the the the
Composition of Composition of Composition of Composition of Composition of India’ India’ India’ India’ India’s Expor s Expor s Expor s Expor s Exports ts ts ts ts
Fig. 8.1
Extent of gap between Exports and Imports in India’s
foreign trade During 2013-14 to 2021-22
Source: Economic Survey 2022-23
2024-25
International Trade     87
significant growth in the export. China and other
East Asian countries are our major competitors.
Gems and jewellery contributes a larger share
of India’s foreign trade.
Study T able 8.3 and select major commodities exported
in 2021-22 and draw bar diagram.
Changing Patterns of the Composition of
India’s Import
India faced serious food shortage during
1950s and 1960s. The major item of import
at that time was foodgrain, capital goods,
machinery and equipment. The balance of
payment was adverse as imports were more
than export in spite of all the efforts of import
substitution. After 1970s, foodgrain import
was discontinued due to the success of Green
Draw bar diagram to show the trends of exports of all items given in the table. Use pen/pencil of different colours.
Commodities 2015-16 2016-17 2020-21 2021-22
Agriculture and allied products 12.6 12.3 14.3 11.9
Ore and Minerals 1.6 1.9 3.2 2.0
Manufactured goods 72.9 73.6 71.2 67.8
Crude and petroleum products 11.9 11.7 9.2 16.4
Other commodities 1.1 0.5 2.1 1.9
Table 8.2 : Composition of India’s Export, 2015-2022
(Percentage share in Exports)
Source : Economic Survey 2016-17 and 2022-23
The composition of commodities in
India’s international trade has been
undergoing a change over the years. In export
the share of agriculture and allied products
and manufactured goods have decreased,
whereas, share from crude petroleum and
products and other commodities have
increased. The share of ore and minerals have
largely remained constant over the years from
2015-16 to 2021-22.
The decline in traditional items is largely
due to the tough international competition.
Amongst the agriculture products, there is a
decline in the export of traditional item, such
as cashew, etc., though an increase has been
registered in floricultural products, fresh fruits,
marine products and sugar, etc.
Manufacturing sector alone accounted for
67.8 per cent of India’s total value of export in
2021-22. Engineering goods have shown a
Table 8.1 India’s Foreign Trade
(Value in Rs. Crore)
Source : http://commerce.nic.in/publications/annual-report - 2010-11 and Economic
Survey 2016-17, 2022-23
Year Exports Imports   Trade Balance
2004-05 3,75,340 5,01,065 -1,25,725
2009-10 8,45,534 13,63,736 -5,18,202
2013-14 19,05,011 27,15,434 -8,10,423
2016-17 18,52,340 25,77,422 -7,25,082
2021-22 31,47,021 45,72775 -14,25,753
2024-25
Page 3


86 India : People and Economy
Unit IV Unit IV Unit IV Unit IV Unit IV
Chapter 8
INTERNATIONAL
TRADE
You have already studied about the various
aspects of International trade in the book
Fundamentals of Human Geography.
International Trade is mutually beneficial as
no country is self-sufficient. India’s
international trade has undergone a sea change
in recent years in terms of volume, composition
as well as direction. Although India’s
contribution in the world trade is as low as
one per cent of the total volume, yet it plays a
significant role in the world economy.
Let us examine the changing pattern of
India’s International trade. In 1950-51, India’s
external trade was worth Rs.1,214 crore, which
rose to Rs. 77,19,796 crore in 2020-21. Can
you calculate the percentage growth in 2020-21
over 1950-51? There are numerous reasons for
this sharp rise in overseas trade, such as the
momentum picked up by the manufacturing
sectors, the liberal policies of the government
and the diversification of markets.
The nature of India’s foreign trade has
changed over the years (Table 8.1). Though there
has been an increase in the total volume of import
and export, the value of import continued to be
higher than that of exports.
Changing P Changing P Changing P Changing P Changing Pa a a a attern of ttern of ttern of ttern of ttern of the the the the the
Composition of Composition of Composition of Composition of Composition of India’ India’ India’ India’ India’s Expor s Expor s Expor s Expor s Exports ts ts ts ts
Fig. 8.1
Extent of gap between Exports and Imports in India’s
foreign trade During 2013-14 to 2021-22
Source: Economic Survey 2022-23
2024-25
International Trade     87
significant growth in the export. China and other
East Asian countries are our major competitors.
Gems and jewellery contributes a larger share
of India’s foreign trade.
Study T able 8.3 and select major commodities exported
in 2021-22 and draw bar diagram.
Changing Patterns of the Composition of
India’s Import
India faced serious food shortage during
1950s and 1960s. The major item of import
at that time was foodgrain, capital goods,
machinery and equipment. The balance of
payment was adverse as imports were more
than export in spite of all the efforts of import
substitution. After 1970s, foodgrain import
was discontinued due to the success of Green
Draw bar diagram to show the trends of exports of all items given in the table. Use pen/pencil of different colours.
Commodities 2015-16 2016-17 2020-21 2021-22
Agriculture and allied products 12.6 12.3 14.3 11.9
Ore and Minerals 1.6 1.9 3.2 2.0
Manufactured goods 72.9 73.6 71.2 67.8
Crude and petroleum products 11.9 11.7 9.2 16.4
Other commodities 1.1 0.5 2.1 1.9
Table 8.2 : Composition of India’s Export, 2015-2022
(Percentage share in Exports)
Source : Economic Survey 2016-17 and 2022-23
The composition of commodities in
India’s international trade has been
undergoing a change over the years. In export
the share of agriculture and allied products
and manufactured goods have decreased,
whereas, share from crude petroleum and
products and other commodities have
increased. The share of ore and minerals have
largely remained constant over the years from
2015-16 to 2021-22.
The decline in traditional items is largely
due to the tough international competition.
Amongst the agriculture products, there is a
decline in the export of traditional item, such
as cashew, etc., though an increase has been
registered in floricultural products, fresh fruits,
marine products and sugar, etc.
Manufacturing sector alone accounted for
67.8 per cent of India’s total value of export in
2021-22. Engineering goods have shown a
Table 8.1 India’s Foreign Trade
(Value in Rs. Crore)
Source : http://commerce.nic.in/publications/annual-report - 2010-11 and Economic
Survey 2016-17, 2022-23
Year Exports Imports   Trade Balance
2004-05 3,75,340 5,01,065 -1,25,725
2009-10 8,45,534 13,63,736 -5,18,202
2013-14 19,05,011 27,15,434 -8,10,423
2016-17 18,52,340 25,77,422 -7,25,082
2021-22 31,47,021 45,72775 -14,25,753
2024-25
88 India : People and Economy
Commodities 2021-22
Agriculture and allied products 3,75,742
Ores and Minerals 63,754
Manufactured goods 21,32,296
Mineral fuels and Lubricants 5,15,310
Table 8.3 : Export of Some Principal Commodities
(in crore rupees)
Source :  Economic Survey 2022-23.
revolution but the energy crisis of 1973
pushed the prices of petroleum, and import
budget was also pushed up. Foodgrain import
was replaced by fertilisers and petroleum.
Machine and equipment, special steel, edible
oil and chemicals largely make the import
basket. Examine the changing pattern of
imports in Table 8.4 and try to comprehend
the shifts.
Table 8.4  shows that there is a rise in
the import of petroleum products. It is used
not only as a fuel but also as an industrial raw
material. It indicates the tempo of rising
industrialisation and better standard of
living, Sporadic price rise in the international
market is another reason for the same. It is also
noticed that the, import of capital goods
maintained a steady decline.  Import of food
and allied products declined. Other major items
of India’s import include pearls, precious  and
semi-precious stones, gold and silver,
non-metal ferrous metals. The detail of Indian
imports of some principal commodities
during 2021-22 have been given in Table 8.5.
Based on T able 8.5, few activities may
be undertaken:
Arrange the items in ascending or
descending order and write the names
of the first five major items of India’s
import list of 2021-22.
Why does India import edible oil in spite
of being an agriculturally rich country?
Select five most important and five least
important items and represent them by
bar diagram.
Can you identify some items of imports
for which substitutes can be developed
in India?
Source : Economic Survey 2022-23
Commodity Group   2015-16 2016-17 2020-21 2021-22
Food and allied products 5.1 5.6 4.5 4.4
Fuel (Coal, POL) 25.4 26.7 25.1 31.6
Fertilisers 2.1 1.3 1.9 2.3
Paper board manufacturing and news print 0.8 0.9 0.8 0.7
Capital goods 13.0 13.6 12.7 10.1
Others 38.1 37.0 41.6 38.5
Table 8.4 : India Composition of Import 2015-22
(In percentage)
2024-25
Page 4


86 India : People and Economy
Unit IV Unit IV Unit IV Unit IV Unit IV
Chapter 8
INTERNATIONAL
TRADE
You have already studied about the various
aspects of International trade in the book
Fundamentals of Human Geography.
International Trade is mutually beneficial as
no country is self-sufficient. India’s
international trade has undergone a sea change
in recent years in terms of volume, composition
as well as direction. Although India’s
contribution in the world trade is as low as
one per cent of the total volume, yet it plays a
significant role in the world economy.
Let us examine the changing pattern of
India’s International trade. In 1950-51, India’s
external trade was worth Rs.1,214 crore, which
rose to Rs. 77,19,796 crore in 2020-21. Can
you calculate the percentage growth in 2020-21
over 1950-51? There are numerous reasons for
this sharp rise in overseas trade, such as the
momentum picked up by the manufacturing
sectors, the liberal policies of the government
and the diversification of markets.
The nature of India’s foreign trade has
changed over the years (Table 8.1). Though there
has been an increase in the total volume of import
and export, the value of import continued to be
higher than that of exports.
Changing P Changing P Changing P Changing P Changing Pa a a a attern of ttern of ttern of ttern of ttern of the the the the the
Composition of Composition of Composition of Composition of Composition of India’ India’ India’ India’ India’s Expor s Expor s Expor s Expor s Exports ts ts ts ts
Fig. 8.1
Extent of gap between Exports and Imports in India’s
foreign trade During 2013-14 to 2021-22
Source: Economic Survey 2022-23
2024-25
International Trade     87
significant growth in the export. China and other
East Asian countries are our major competitors.
Gems and jewellery contributes a larger share
of India’s foreign trade.
Study T able 8.3 and select major commodities exported
in 2021-22 and draw bar diagram.
Changing Patterns of the Composition of
India’s Import
India faced serious food shortage during
1950s and 1960s. The major item of import
at that time was foodgrain, capital goods,
machinery and equipment. The balance of
payment was adverse as imports were more
than export in spite of all the efforts of import
substitution. After 1970s, foodgrain import
was discontinued due to the success of Green
Draw bar diagram to show the trends of exports of all items given in the table. Use pen/pencil of different colours.
Commodities 2015-16 2016-17 2020-21 2021-22
Agriculture and allied products 12.6 12.3 14.3 11.9
Ore and Minerals 1.6 1.9 3.2 2.0
Manufactured goods 72.9 73.6 71.2 67.8
Crude and petroleum products 11.9 11.7 9.2 16.4
Other commodities 1.1 0.5 2.1 1.9
Table 8.2 : Composition of India’s Export, 2015-2022
(Percentage share in Exports)
Source : Economic Survey 2016-17 and 2022-23
The composition of commodities in
India’s international trade has been
undergoing a change over the years. In export
the share of agriculture and allied products
and manufactured goods have decreased,
whereas, share from crude petroleum and
products and other commodities have
increased. The share of ore and minerals have
largely remained constant over the years from
2015-16 to 2021-22.
The decline in traditional items is largely
due to the tough international competition.
Amongst the agriculture products, there is a
decline in the export of traditional item, such
as cashew, etc., though an increase has been
registered in floricultural products, fresh fruits,
marine products and sugar, etc.
Manufacturing sector alone accounted for
67.8 per cent of India’s total value of export in
2021-22. Engineering goods have shown a
Table 8.1 India’s Foreign Trade
(Value in Rs. Crore)
Source : http://commerce.nic.in/publications/annual-report - 2010-11 and Economic
Survey 2016-17, 2022-23
Year Exports Imports   Trade Balance
2004-05 3,75,340 5,01,065 -1,25,725
2009-10 8,45,534 13,63,736 -5,18,202
2013-14 19,05,011 27,15,434 -8,10,423
2016-17 18,52,340 25,77,422 -7,25,082
2021-22 31,47,021 45,72775 -14,25,753
2024-25
88 India : People and Economy
Commodities 2021-22
Agriculture and allied products 3,75,742
Ores and Minerals 63,754
Manufactured goods 21,32,296
Mineral fuels and Lubricants 5,15,310
Table 8.3 : Export of Some Principal Commodities
(in crore rupees)
Source :  Economic Survey 2022-23.
revolution but the energy crisis of 1973
pushed the prices of petroleum, and import
budget was also pushed up. Foodgrain import
was replaced by fertilisers and petroleum.
Machine and equipment, special steel, edible
oil and chemicals largely make the import
basket. Examine the changing pattern of
imports in Table 8.4 and try to comprehend
the shifts.
Table 8.4  shows that there is a rise in
the import of petroleum products. It is used
not only as a fuel but also as an industrial raw
material. It indicates the tempo of rising
industrialisation and better standard of
living, Sporadic price rise in the international
market is another reason for the same. It is also
noticed that the, import of capital goods
maintained a steady decline.  Import of food
and allied products declined. Other major items
of India’s import include pearls, precious  and
semi-precious stones, gold and silver,
non-metal ferrous metals. The detail of Indian
imports of some principal commodities
during 2021-22 have been given in Table 8.5.
Based on T able 8.5, few activities may
be undertaken:
Arrange the items in ascending or
descending order and write the names
of the first five major items of India’s
import list of 2021-22.
Why does India import edible oil in spite
of being an agriculturally rich country?
Select five most important and five least
important items and represent them by
bar diagram.
Can you identify some items of imports
for which substitutes can be developed
in India?
Source : Economic Survey 2022-23
Commodity Group   2015-16 2016-17 2020-21 2021-22
Food and allied products 5.1 5.6 4.5 4.4
Fuel (Coal, POL) 25.4 26.7 25.1 31.6
Fertilisers 2.1 1.3 1.9 2.3
Paper board manufacturing and news print 0.8 0.9 0.8 0.7
Capital goods 13.0 13.6 12.7 10.1
Others 38.1 37.0 41.6 38.5
Table 8.4 : India Composition of Import 2015-22
(In percentage)
2024-25
International Trade International Trade International Trade International Trade International Trade                     89 89 89 89 89
has a long tradition of sea faring and developed
many ports with place name suffixed with
pattan meaning port. An interesting fact about
ports in India is that its west coast has more
ports than its east coast.
Direction of Trade Direction of Trade Direction of Trade Direction of Trade Direction of Trade
India  has trade relations with most of the
countries and major trading blocks of the
world.
Region-wise and sub-region-wise trade
during the period 2021-22 has been given in
Table 8.6.
Draw a multiple bar diagram to represent the major
trading partners.
Most of India’s foreign trade is carried
through sea and air routes. However, a small
portion is also carried through land route to
neighbouring countries like Nepal, Bhutan,
Bangladesh and Pakistan.
Sea P Sea P Sea P Sea P Sea Por or or or orts as Ga ts as Ga ts as Ga ts as Ga ts as Gate te te te tew w w w wa a a a ay y y y ys of s of s of s of s of
Interna Interna Interna Interna International T tional T tional T tional T tional Tr r r r rade ade ade ade ade
India is surrounded by sea from three sides
and is bestowed  with a long coastline. Water
provides a smooth surface for very cheap
transport provided there is no turbulence. India
India aims to double its share in the
international trade within the next five years. It
has already started adopting suitable measures
such as import liberalisation, reduction in
import duties, delicensing and change from
process to product patents.
Commodities Commodities Commodities Commodities Commodities 2021-22 2021-22 2021-22 2021-22 2021-22
Fertilisers and fertiliser manufacturing 105796
Edible oils 141532
Pulp and waste paper 11934
Non-ferrous metals 499766
Iron and steel 94053
Petroleum, oil and lubricants 1207803
Pearls, precious and 231279
semi-precious stones
Medicinal and Pharma products 67545
Chemical products 308882
Table Table Table Table Table 8 8 8 8 8.5 : Import of Some Principal Commodities .5 : Import of Some Principal Commodities .5 : Import of Some Principal Commodities .5 : Import of Some Principal Commodities .5 : Import of Some Principal Commodities
(in crore rupees)
Source : Economic Survey 2022-23
Fig. 8.3 : Unloading of goods on port Fig. 8.3 : Unloading of goods on port Fig. 8.3 : Unloading of goods on port Fig. 8.3 : Unloading of goods on port Fig. 8.3 : Unloading of goods on port
Source : Economic Survey 2016-17 and 2022-23
Region Region Region Region Region Imports Imports Imports Imports Imports
201 201 201 201 2016 6 6 6 6-1 -1 -1 -1 -17 7 7 7 7 20 20 20 20 2021 21 21 21 21- - - - -22 22 22 22 22
Europe 403972 640577
Africa 193327 368156
North America 195332 378041
Latin America 115762 161995
Asia and ASEAN 1544520 2918577
Table 8.6 Direction of India’s Import trade Table 8.6 Direction of India’s Import trade Table 8.6 Direction of India’s Import trade Table 8.6 Direction of India’s Import trade Table 8.6 Direction of India’s Import trade
(in crore rupees)
2024-25
Page 5


86 India : People and Economy
Unit IV Unit IV Unit IV Unit IV Unit IV
Chapter 8
INTERNATIONAL
TRADE
You have already studied about the various
aspects of International trade in the book
Fundamentals of Human Geography.
International Trade is mutually beneficial as
no country is self-sufficient. India’s
international trade has undergone a sea change
in recent years in terms of volume, composition
as well as direction. Although India’s
contribution in the world trade is as low as
one per cent of the total volume, yet it plays a
significant role in the world economy.
Let us examine the changing pattern of
India’s International trade. In 1950-51, India’s
external trade was worth Rs.1,214 crore, which
rose to Rs. 77,19,796 crore in 2020-21. Can
you calculate the percentage growth in 2020-21
over 1950-51? There are numerous reasons for
this sharp rise in overseas trade, such as the
momentum picked up by the manufacturing
sectors, the liberal policies of the government
and the diversification of markets.
The nature of India’s foreign trade has
changed over the years (Table 8.1). Though there
has been an increase in the total volume of import
and export, the value of import continued to be
higher than that of exports.
Changing P Changing P Changing P Changing P Changing Pa a a a attern of ttern of ttern of ttern of ttern of the the the the the
Composition of Composition of Composition of Composition of Composition of India’ India’ India’ India’ India’s Expor s Expor s Expor s Expor s Exports ts ts ts ts
Fig. 8.1
Extent of gap between Exports and Imports in India’s
foreign trade During 2013-14 to 2021-22
Source: Economic Survey 2022-23
2024-25
International Trade     87
significant growth in the export. China and other
East Asian countries are our major competitors.
Gems and jewellery contributes a larger share
of India’s foreign trade.
Study T able 8.3 and select major commodities exported
in 2021-22 and draw bar diagram.
Changing Patterns of the Composition of
India’s Import
India faced serious food shortage during
1950s and 1960s. The major item of import
at that time was foodgrain, capital goods,
machinery and equipment. The balance of
payment was adverse as imports were more
than export in spite of all the efforts of import
substitution. After 1970s, foodgrain import
was discontinued due to the success of Green
Draw bar diagram to show the trends of exports of all items given in the table. Use pen/pencil of different colours.
Commodities 2015-16 2016-17 2020-21 2021-22
Agriculture and allied products 12.6 12.3 14.3 11.9
Ore and Minerals 1.6 1.9 3.2 2.0
Manufactured goods 72.9 73.6 71.2 67.8
Crude and petroleum products 11.9 11.7 9.2 16.4
Other commodities 1.1 0.5 2.1 1.9
Table 8.2 : Composition of India’s Export, 2015-2022
(Percentage share in Exports)
Source : Economic Survey 2016-17 and 2022-23
The composition of commodities in
India’s international trade has been
undergoing a change over the years. In export
the share of agriculture and allied products
and manufactured goods have decreased,
whereas, share from crude petroleum and
products and other commodities have
increased. The share of ore and minerals have
largely remained constant over the years from
2015-16 to 2021-22.
The decline in traditional items is largely
due to the tough international competition.
Amongst the agriculture products, there is a
decline in the export of traditional item, such
as cashew, etc., though an increase has been
registered in floricultural products, fresh fruits,
marine products and sugar, etc.
Manufacturing sector alone accounted for
67.8 per cent of India’s total value of export in
2021-22. Engineering goods have shown a
Table 8.1 India’s Foreign Trade
(Value in Rs. Crore)
Source : http://commerce.nic.in/publications/annual-report - 2010-11 and Economic
Survey 2016-17, 2022-23
Year Exports Imports   Trade Balance
2004-05 3,75,340 5,01,065 -1,25,725
2009-10 8,45,534 13,63,736 -5,18,202
2013-14 19,05,011 27,15,434 -8,10,423
2016-17 18,52,340 25,77,422 -7,25,082
2021-22 31,47,021 45,72775 -14,25,753
2024-25
88 India : People and Economy
Commodities 2021-22
Agriculture and allied products 3,75,742
Ores and Minerals 63,754
Manufactured goods 21,32,296
Mineral fuels and Lubricants 5,15,310
Table 8.3 : Export of Some Principal Commodities
(in crore rupees)
Source :  Economic Survey 2022-23.
revolution but the energy crisis of 1973
pushed the prices of petroleum, and import
budget was also pushed up. Foodgrain import
was replaced by fertilisers and petroleum.
Machine and equipment, special steel, edible
oil and chemicals largely make the import
basket. Examine the changing pattern of
imports in Table 8.4 and try to comprehend
the shifts.
Table 8.4  shows that there is a rise in
the import of petroleum products. It is used
not only as a fuel but also as an industrial raw
material. It indicates the tempo of rising
industrialisation and better standard of
living, Sporadic price rise in the international
market is another reason for the same. It is also
noticed that the, import of capital goods
maintained a steady decline.  Import of food
and allied products declined. Other major items
of India’s import include pearls, precious  and
semi-precious stones, gold and silver,
non-metal ferrous metals. The detail of Indian
imports of some principal commodities
during 2021-22 have been given in Table 8.5.
Based on T able 8.5, few activities may
be undertaken:
Arrange the items in ascending or
descending order and write the names
of the first five major items of India’s
import list of 2021-22.
Why does India import edible oil in spite
of being an agriculturally rich country?
Select five most important and five least
important items and represent them by
bar diagram.
Can you identify some items of imports
for which substitutes can be developed
in India?
Source : Economic Survey 2022-23
Commodity Group   2015-16 2016-17 2020-21 2021-22
Food and allied products 5.1 5.6 4.5 4.4
Fuel (Coal, POL) 25.4 26.7 25.1 31.6
Fertilisers 2.1 1.3 1.9 2.3
Paper board manufacturing and news print 0.8 0.9 0.8 0.7
Capital goods 13.0 13.6 12.7 10.1
Others 38.1 37.0 41.6 38.5
Table 8.4 : India Composition of Import 2015-22
(In percentage)
2024-25
International Trade International Trade International Trade International Trade International Trade                     89 89 89 89 89
has a long tradition of sea faring and developed
many ports with place name suffixed with
pattan meaning port. An interesting fact about
ports in India is that its west coast has more
ports than its east coast.
Direction of Trade Direction of Trade Direction of Trade Direction of Trade Direction of Trade
India  has trade relations with most of the
countries and major trading blocks of the
world.
Region-wise and sub-region-wise trade
during the period 2021-22 has been given in
Table 8.6.
Draw a multiple bar diagram to represent the major
trading partners.
Most of India’s foreign trade is carried
through sea and air routes. However, a small
portion is also carried through land route to
neighbouring countries like Nepal, Bhutan,
Bangladesh and Pakistan.
Sea P Sea P Sea P Sea P Sea Por or or or orts as Ga ts as Ga ts as Ga ts as Ga ts as Gate te te te tew w w w wa a a a ay y y y ys of s of s of s of s of
Interna Interna Interna Interna International T tional T tional T tional T tional Tr r r r rade ade ade ade ade
India is surrounded by sea from three sides
and is bestowed  with a long coastline. Water
provides a smooth surface for very cheap
transport provided there is no turbulence. India
India aims to double its share in the
international trade within the next five years. It
has already started adopting suitable measures
such as import liberalisation, reduction in
import duties, delicensing and change from
process to product patents.
Commodities Commodities Commodities Commodities Commodities 2021-22 2021-22 2021-22 2021-22 2021-22
Fertilisers and fertiliser manufacturing 105796
Edible oils 141532
Pulp and waste paper 11934
Non-ferrous metals 499766
Iron and steel 94053
Petroleum, oil and lubricants 1207803
Pearls, precious and 231279
semi-precious stones
Medicinal and Pharma products 67545
Chemical products 308882
Table Table Table Table Table 8 8 8 8 8.5 : Import of Some Principal Commodities .5 : Import of Some Principal Commodities .5 : Import of Some Principal Commodities .5 : Import of Some Principal Commodities .5 : Import of Some Principal Commodities
(in crore rupees)
Source : Economic Survey 2022-23
Fig. 8.3 : Unloading of goods on port Fig. 8.3 : Unloading of goods on port Fig. 8.3 : Unloading of goods on port Fig. 8.3 : Unloading of goods on port Fig. 8.3 : Unloading of goods on port
Source : Economic Survey 2016-17 and 2022-23
Region Region Region Region Region Imports Imports Imports Imports Imports
201 201 201 201 2016 6 6 6 6-1 -1 -1 -1 -17 7 7 7 7 20 20 20 20 2021 21 21 21 21- - - - -22 22 22 22 22
Europe 403972 640577
Africa 193327 368156
North America 195332 378041
Latin America 115762 161995
Asia and ASEAN 1544520 2918577
Table 8.6 Direction of India’s Import trade Table 8.6 Direction of India’s Import trade Table 8.6 Direction of India’s Import trade Table 8.6 Direction of India’s Import trade Table 8.6 Direction of India’s Import trade
(in crore rupees)
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90 India : People and Economy
have been invited for the modernisation of
ports in India.
The capacity of Indian ports increased from
20 million tonnes of cargo handling in 1951 to
more than 837 million tonnes in 2016.
Some of the Indian ports along with their
hinterlands are as follows :
Deendayal Port (Kandla port) situated
at the head of Gulf of Kuchchh has been
developed as a major port to cater to the needs
of western and north western parts of the
country and also to reduce the pressure at
Mumbai port. The port is specially designed to
receive large quantities of petroleum and
petroleum products and fertiliser. The offshore
terminal at Vadinar has been developed to
reduce the pressure at the port.
Demarcation of the boundary of the
hinterland would be difficult as it is not fixed
over space. In most of the cases, hinterland
of one port may overlap with that of the other.
Mumbai is a natural harbour and the
biggest port of the country. The port is
situated closer to the general routes from the
countries of Middle East, Mediterranean
countries, North Africa, North America and
Europe where the major share of country’s
overseas trade is carried out. The port is 20
km long and 6-10 km wide with 54 berths
and has the country’s largest oil terminal.
M.P., Maharashtra, Gujarat, U.P. and parts
of Rajasthan constitute the main hinterlands
of Mumbai ports.
Jawaharlal Nehru Port at Nhava Sheva
was developed as a satellite port to relieve the
pressure at the Mumbai port. It is the largest
container port in India.
Marmagao Port, situated at the entrance
of the Zuari estuary, is a natural harbour in
Goa. It gained significance after its remodelling
in 1961 to handle iron-ore exports to Japan.
Construction of Konkan railway has
considerably extended the hinterland of this
port. Karnataka, Goa, Southern Maharashtra
constitute its hinterland.
New Mangalore Port is located in the
state of Karnataka and caters to the needs of the
export of iron-ore and iron-concentrates. It also
handles fertilisers, petroleum products, edible
Can you find out the reasons for the
variations in the location of ports along the
two coasts?
Though ports have been in use since
ancient times, the emergence of ports as
gateways of international trade became
important after the coming of the European
traders and colonisation of the country by the
British. This led to the variation in the size and
quality of ports. There are some ports which have
very vast area of influence and some have limited
area of influence. At present, India has 12 major
ports and 200 minor or intermediate ports. In
case of the major ports, the central government
decides the policy and plays regulatory
functions. The minor ports are there whose
policy and functions are regulated by state
governments. The major ports handle larger
share of the total traffic.
The British used the ports as suction points
of the resources from their hinterlands. The
extension of railways towards the interior
facilitated the linking of the local markets to
regional markets, regional markets to national
markets and national markets to the international
markets. This trend continued till 1947. It was
expected that the country’s Independence will
reverse the process, but the partition of the
country snatched away two very important ports,
i.e., Karachi port went to Pakistan and Chittagong
port to the erstwhile east-Pakistan and now
Bangladesh. To compensate the losses, many new
ports, like the Kandla in the west and the
Diamond Harbour near Kolkata on river Hugli in
the east were developed.
Despite this major setback, Indian ports
continued to grow after the Independence.
Today, Indian ports are handling large
volumes of domestic, as well as, overseas
trade. Most of the ports are equipped with
modern infrastructure. Previously, the
development and modernisation was the
responsibility of the government agencies,
but considering the increase in function and
need to bring these ports at par with the
international ports, private entrepreneurs
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