NCERT Textbook - International Trade Humanities/Arts Notes | EduRev

NCERT Textbooks (Class 6 to Class 12)

UPSC : NCERT Textbook - International Trade Humanities/Arts Notes | EduRev

 Page 1


124 India : People and Economy
Unit IV Unit IV Unit IV Unit IV Unit IV
Chapter 11
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. 44,29,762 crore in 2016-17. Can
you calculate the percentage growth in 2016-
17 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 11.1). 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
Source : Economic Survey, 2016-17
Fig. 11.1
Extent of gap between Exports and Imports in India’s
foreign trade During 2012-13 to 2016-17
2020-21
Page 2


124 India : People and Economy
Unit IV Unit IV Unit IV Unit IV Unit IV
Chapter 11
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. 44,29,762 crore in 2016-17. Can
you calculate the percentage growth in 2016-
17 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 11.1). 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
Source : Economic Survey, 2016-17
Fig. 11.1
Extent of gap between Exports and Imports in India’s
foreign trade During 2012-13 to 2016-17
2020-21
International Trade     125
East Asian countries are our major competitors.
Gems and jewellery contributes a larger share
of India’s foreign trade.
Study Table 11.3 and select major commodities
exported in 2016-17 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
revolution but the energy crisis of 1973
pushed the prices of petroleum, and import
Draw bar diagram to show the trends of exports of all items given in the table. Use pen/pencil of different colours.
Table 11.1 India’s Foreign Trade
Value in Rs. Crores
Source : http://commerce.nic.in/publications/annual-report - 2010-11 and Economic Survey 2016-17
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
Commodities 2009-10 2010-11 2015-16 2016-17
Agriculture and allied products 10.0 9.9 12.6 12.3
Ore and Minerals 4.9 4.0 1.6 1.9
Manufactured goods 67.4 68.0 72.9 73.6
Crude and petroleum products 16.2 16.8 11.9 11.7
Other commodities 1.5 1.2 1.1 0.5
Table 11.2 : Composition of India’s Export, 2009-2017
(Percentage share in Exports)
Source : Economic Survey 2016-17
The composition of commodities in
India’s international trade has been
undergoing a change over the years. The
share of agriculture and allied products has
declined, whereas, shares of petroleum and
crude products and other commodities have
increased. The shares of ore minerals and
manufactured goods have largely remained
constant over the years from 2009-10 to
2010-11and 2015-16 to 2016-17.
The decline in traditional items is largely
due to the tough international competition.
Amongst the agricultural products, there is a
decline in the export of traditional items, such
as coffee, cashew, etc., though an increase has
been registered in floricultural products, fresh
fruits, marine products and sugar, etc.
Manufacturing sector alone accounted for
73.6 per cent of India’s total value of export in
2016-17. Engineering goods have shown a
significant growth in the export. China and other
2020-21
Page 3


124 India : People and Economy
Unit IV Unit IV Unit IV Unit IV Unit IV
Chapter 11
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. 44,29,762 crore in 2016-17. Can
you calculate the percentage growth in 2016-
17 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 11.1). 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
Source : Economic Survey, 2016-17
Fig. 11.1
Extent of gap between Exports and Imports in India’s
foreign trade During 2012-13 to 2016-17
2020-21
International Trade     125
East Asian countries are our major competitors.
Gems and jewellery contributes a larger share
of India’s foreign trade.
Study Table 11.3 and select major commodities
exported in 2016-17 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
revolution but the energy crisis of 1973
pushed the prices of petroleum, and import
Draw bar diagram to show the trends of exports of all items given in the table. Use pen/pencil of different colours.
Table 11.1 India’s Foreign Trade
Value in Rs. Crores
Source : http://commerce.nic.in/publications/annual-report - 2010-11 and Economic Survey 2016-17
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
Commodities 2009-10 2010-11 2015-16 2016-17
Agriculture and allied products 10.0 9.9 12.6 12.3
Ore and Minerals 4.9 4.0 1.6 1.9
Manufactured goods 67.4 68.0 72.9 73.6
Crude and petroleum products 16.2 16.8 11.9 11.7
Other commodities 1.5 1.2 1.1 0.5
Table 11.2 : Composition of India’s Export, 2009-2017
(Percentage share in Exports)
Source : Economic Survey 2016-17
The composition of commodities in
India’s international trade has been
undergoing a change over the years. The
share of agriculture and allied products has
declined, whereas, shares of petroleum and
crude products and other commodities have
increased. The shares of ore minerals and
manufactured goods have largely remained
constant over the years from 2009-10 to
2010-11and 2015-16 to 2016-17.
The decline in traditional items is largely
due to the tough international competition.
Amongst the agricultural products, there is a
decline in the export of traditional items, such
as coffee, cashew, etc., though an increase has
been registered in floricultural products, fresh
fruits, marine products and sugar, etc.
Manufacturing sector alone accounted for
73.6 per cent of India’s total value of export in
2016-17. Engineering goods have shown a
significant growth in the export. China and other
2020-21
126 India : People and Economy
Commodities 2016-17
Agriculture and allied products 228001
Ores and Minerals 35947
Manufactured goods 1363232
Mineral fuels and Lubricants 216280
Table 11.3 : Export of Some Principal Commodities
(in crore rupees)
Source :  Economic Survey 2016-17.
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 11.4 and try to comprehend
the shifts.
Table 11.4  shows that there is a steep
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. Import of capital goods maintained a
steady increase due to rising demand in the
export-oriented industrial and domestic
sectors. Non-electrical machinery, transport
equipment, manufacturers of metals and
machine tools were the main items of capital
goods. Import of food and allied products
declined with a fall in imports of edible oils.
Other major items of India’s import include
pearls and semi-precious stones, gold and
silver, metalliferrous ores and metal scrap,
non-ferrous metals, electronic goods, etc. The
details of Indian imports of some principal
commodities during 2016-17 have been given
in Table 11.5.
Based on table 11.5, 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 2016-17.
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 2016-17
Commodity Group   2009-10 2010-11 2015-16 2016-17
Food and allied products 3.7 2.9 5.1 5.6
Fuel (Coal, POL) 33.2 31.3 25.4 26.7
Fertilisers 2.3 1.9 2.1 1.3
Paper board manufacturing and news print 0.5 0.6 0.8 0.9
Capital goods 15.0 13.1 13.0 13.6
Others 42.6 47.7 38.1 37.0
Table 11.4 : India Composition of Import 2009-17
(In percentage)
2020-21
Page 4


124 India : People and Economy
Unit IV Unit IV Unit IV Unit IV Unit IV
Chapter 11
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. 44,29,762 crore in 2016-17. Can
you calculate the percentage growth in 2016-
17 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 11.1). 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
Source : Economic Survey, 2016-17
Fig. 11.1
Extent of gap between Exports and Imports in India’s
foreign trade During 2012-13 to 2016-17
2020-21
International Trade     125
East Asian countries are our major competitors.
Gems and jewellery contributes a larger share
of India’s foreign trade.
Study Table 11.3 and select major commodities
exported in 2016-17 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
revolution but the energy crisis of 1973
pushed the prices of petroleum, and import
Draw bar diagram to show the trends of exports of all items given in the table. Use pen/pencil of different colours.
Table 11.1 India’s Foreign Trade
Value in Rs. Crores
Source : http://commerce.nic.in/publications/annual-report - 2010-11 and Economic Survey 2016-17
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
Commodities 2009-10 2010-11 2015-16 2016-17
Agriculture and allied products 10.0 9.9 12.6 12.3
Ore and Minerals 4.9 4.0 1.6 1.9
Manufactured goods 67.4 68.0 72.9 73.6
Crude and petroleum products 16.2 16.8 11.9 11.7
Other commodities 1.5 1.2 1.1 0.5
Table 11.2 : Composition of India’s Export, 2009-2017
(Percentage share in Exports)
Source : Economic Survey 2016-17
The composition of commodities in
India’s international trade has been
undergoing a change over the years. The
share of agriculture and allied products has
declined, whereas, shares of petroleum and
crude products and other commodities have
increased. The shares of ore minerals and
manufactured goods have largely remained
constant over the years from 2009-10 to
2010-11and 2015-16 to 2016-17.
The decline in traditional items is largely
due to the tough international competition.
Amongst the agricultural products, there is a
decline in the export of traditional items, such
as coffee, cashew, etc., though an increase has
been registered in floricultural products, fresh
fruits, marine products and sugar, etc.
Manufacturing sector alone accounted for
73.6 per cent of India’s total value of export in
2016-17. Engineering goods have shown a
significant growth in the export. China and other
2020-21
126 India : People and Economy
Commodities 2016-17
Agriculture and allied products 228001
Ores and Minerals 35947
Manufactured goods 1363232
Mineral fuels and Lubricants 216280
Table 11.3 : Export of Some Principal Commodities
(in crore rupees)
Source :  Economic Survey 2016-17.
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 11.4 and try to comprehend
the shifts.
Table 11.4  shows that there is a steep
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. Import of capital goods maintained a
steady increase due to rising demand in the
export-oriented industrial and domestic
sectors. Non-electrical machinery, transport
equipment, manufacturers of metals and
machine tools were the main items of capital
goods. Import of food and allied products
declined with a fall in imports of edible oils.
Other major items of India’s import include
pearls and semi-precious stones, gold and
silver, metalliferrous ores and metal scrap,
non-ferrous metals, electronic goods, etc. The
details of Indian imports of some principal
commodities during 2016-17 have been given
in Table 11.5.
Based on table 11.5, 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 2016-17.
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 2016-17
Commodity Group   2009-10 2010-11 2015-16 2016-17
Food and allied products 3.7 2.9 5.1 5.6
Fuel (Coal, POL) 33.2 31.3 25.4 26.7
Fertilisers 2.3 1.9 2.1 1.3
Paper board manufacturing and news print 0.5 0.6 0.8 0.9
Capital goods 15.0 13.1 13.0 13.6
Others 42.6 47.7 38.1 37.0
Table 11.4 : India Composition of Import 2009-17
(In percentage)
2020-21
International Trade     127
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
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 2016-17 has been given in
Table 11.6.
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 2016-17
Fertilisers and fertiliser manufacturing 33726
Edible oils 73048
Pulp and waste paper 6537
Non-ferrous metals 262961
Iron and steel 55278
Petroleum, oil and lubricants 582762
Pearls, precious and 159464
semi-precious stones
Medicinal and Pharma products 33504
Chemical products 147350
Table 11.5 : Import of Some Principal Commodities
(in crore rupees)
Source : Economic Survey 2016-17
Source : Department of Commerce based on DCCI&S
provisional data, Economic Survey 2011-12 and 2016-17.
Region Imports
2010-11 2016-17
Europe 323857 403972
Africa 118612 193327
North America 100602 195332
Latin America 64576 115762
Asia and ASEAN 1029881 1544520
Table 11.6 Direction of India’s Import trade
(in crore rupees)
Fig. 11.3 : Unloading of goods on port
2020-21
Page 5


124 India : People and Economy
Unit IV Unit IV Unit IV Unit IV Unit IV
Chapter 11
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. 44,29,762 crore in 2016-17. Can
you calculate the percentage growth in 2016-
17 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 11.1). 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
Source : Economic Survey, 2016-17
Fig. 11.1
Extent of gap between Exports and Imports in India’s
foreign trade During 2012-13 to 2016-17
2020-21
International Trade     125
East Asian countries are our major competitors.
Gems and jewellery contributes a larger share
of India’s foreign trade.
Study Table 11.3 and select major commodities
exported in 2016-17 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
revolution but the energy crisis of 1973
pushed the prices of petroleum, and import
Draw bar diagram to show the trends of exports of all items given in the table. Use pen/pencil of different colours.
Table 11.1 India’s Foreign Trade
Value in Rs. Crores
Source : http://commerce.nic.in/publications/annual-report - 2010-11 and Economic Survey 2016-17
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
Commodities 2009-10 2010-11 2015-16 2016-17
Agriculture and allied products 10.0 9.9 12.6 12.3
Ore and Minerals 4.9 4.0 1.6 1.9
Manufactured goods 67.4 68.0 72.9 73.6
Crude and petroleum products 16.2 16.8 11.9 11.7
Other commodities 1.5 1.2 1.1 0.5
Table 11.2 : Composition of India’s Export, 2009-2017
(Percentage share in Exports)
Source : Economic Survey 2016-17
The composition of commodities in
India’s international trade has been
undergoing a change over the years. The
share of agriculture and allied products has
declined, whereas, shares of petroleum and
crude products and other commodities have
increased. The shares of ore minerals and
manufactured goods have largely remained
constant over the years from 2009-10 to
2010-11and 2015-16 to 2016-17.
The decline in traditional items is largely
due to the tough international competition.
Amongst the agricultural products, there is a
decline in the export of traditional items, such
as coffee, cashew, etc., though an increase has
been registered in floricultural products, fresh
fruits, marine products and sugar, etc.
Manufacturing sector alone accounted for
73.6 per cent of India’s total value of export in
2016-17. Engineering goods have shown a
significant growth in the export. China and other
2020-21
126 India : People and Economy
Commodities 2016-17
Agriculture and allied products 228001
Ores and Minerals 35947
Manufactured goods 1363232
Mineral fuels and Lubricants 216280
Table 11.3 : Export of Some Principal Commodities
(in crore rupees)
Source :  Economic Survey 2016-17.
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 11.4 and try to comprehend
the shifts.
Table 11.4  shows that there is a steep
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. Import of capital goods maintained a
steady increase due to rising demand in the
export-oriented industrial and domestic
sectors. Non-electrical machinery, transport
equipment, manufacturers of metals and
machine tools were the main items of capital
goods. Import of food and allied products
declined with a fall in imports of edible oils.
Other major items of India’s import include
pearls and semi-precious stones, gold and
silver, metalliferrous ores and metal scrap,
non-ferrous metals, electronic goods, etc. The
details of Indian imports of some principal
commodities during 2016-17 have been given
in Table 11.5.
Based on table 11.5, 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 2016-17.
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 2016-17
Commodity Group   2009-10 2010-11 2015-16 2016-17
Food and allied products 3.7 2.9 5.1 5.6
Fuel (Coal, POL) 33.2 31.3 25.4 26.7
Fertilisers 2.3 1.9 2.1 1.3
Paper board manufacturing and news print 0.5 0.6 0.8 0.9
Capital goods 15.0 13.1 13.0 13.6
Others 42.6 47.7 38.1 37.0
Table 11.4 : India Composition of Import 2009-17
(In percentage)
2020-21
International Trade     127
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
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 2016-17 has been given in
Table 11.6.
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 2016-17
Fertilisers and fertiliser manufacturing 33726
Edible oils 73048
Pulp and waste paper 6537
Non-ferrous metals 262961
Iron and steel 55278
Petroleum, oil and lubricants 582762
Pearls, precious and 159464
semi-precious stones
Medicinal and Pharma products 33504
Chemical products 147350
Table 11.5 : Import of Some Principal Commodities
(in crore rupees)
Source : Economic Survey 2016-17
Source : Department of Commerce based on DCCI&S
provisional data, Economic Survey 2011-12 and 2016-17.
Region Imports
2010-11 2016-17
Europe 323857 403972
Africa 118612 193327
North America 100602 195332
Latin America 64576 115762
Asia and ASEAN 1029881 1544520
Table 11.6 Direction of India’s Import trade
(in crore rupees)
Fig. 11.3 : Unloading of goods on port
2020-21
128 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 :
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 Kandla 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
2020-21
Read More
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