International Trade Class 12 Geography

Introduction

• Chapter 8 from "India: People and Economy" explores the complexities of international trade with a focus on India's role and its evolution over the years.
• This chapter builds on foundational geographic knowledge to deepen understanding of global economic interdependencies through the lens of India's trade activities.
• It covers the historical growth of India's trade, changes in the export and import patterns, and the development of infrastructure facilitating trade.
• The chapter aims to provide insights into the economic and strategic significance of trade and how it shapes national economies, particularly highlighting India's integration into the global market.

Changing Pattern of India’s International Trade

• Historical Perspective and Growth Metrics: Beginning from a base of Rs. 1,214 crore in the fiscal year 1950-51, India’s external trade escalated to an impressive Rs. 77,19,796 crore by 2020-21. This section not only provides a chronological overview but also invites students to calculate the percentage growth, facilitating an interactive understanding of trade expansion.
• Drivers of Expansion: Detailed reasons for this growth are provided, including the acceleration of India’s manufacturing sectors, liberalization policies implemented by the government over the years, and strategic diversification into new markets and product segments.

Changing Patterns of the Composition of India’s Exports

The shift in India's export composition is analyzed over the years:

• Agricultural and allied products have seen a relative decline in their share of total exports.
• Manufactured goods and petroleum products have surged, with the latter due to both increased domestic production and global oil dynamics.
• Specific mention of the engineering goods sector, which has shown significant growth and contributes robustly to the export figures.

Changing Patterns of the Composition of India’s Import

Changes in the import structure reflect both economic development and policy shifts:

• The narrative starts from the 1950s and 1960s when there was a heavy reliance on food grains and basic industrial imports due to infrastructural and agricultural deficiencies.
• With the success of the Green Revolution, the focus shifted towards the import of fertilizers and petroleum, the latter becoming crucial due to the 1973 oil crisis.
• Recent trends show a sophisticated import regime consisting of high-value capital goods, electronic items, and components necessary for supporting India's industrial sectors.

Extent of Gap Between Exports and Imports

• Trade Deficits Over the Years: This section provides specific data on the trade deficits for various fiscal years, illustrating how imports have continually exceeded exports. The discussion includes potential reasons and the economic implications of these deficits.

Direction of Trade

• Global Partnerships: India trades with a wide array of regions, reflecting its integrated approach to global economics shaped by changing geopolitical landscapes and policy reforms.

• Key Regions and Partners: Includes significant relationships with the United States, European Union, ASEAN, and East Asian nations, focusing on both goods and services influenced by respective economic agreements and trade policies.

• Regional Trade Dynamics: Detailed insights into trade specifics with regions like Europe, North America, and Asia highlight the diversity of traded commodities ranging from technology products to consumer goods.

• Trade Agreements: Discusses India's participation in agreements like SAFTA and ASEAN Free Trade Area, which are crucial for understanding trade flows and tariff strategies.

• Future Strategies: Outlines India's ambitions to enhance its global trade share through policy liberalization, infrastructural upgrades, and strategic international engagements.

Sea Ports as Gateways of International Trade

India, with its vast coastline and historical tradition of seafaring, has a significant number of ports that play a crucial role in facilitating both domestic and international trade. The location of ports along India's coasts has varied over time due to historical, geographical, and economic factors.

• Reasons for Variations in Port Locations:
  • Ports emerged as vital hubs for international trade after European traders arrived and British colonization began.
  • Historical developments led to differences in the size and quality of ports, influencing their locations.
  • Some ports have a broad sphere of influence, while others have more limited reach.
  • India currently boasts 12 major ports and around 200 minor or intermediate ports.
  • Major ports are governed by the central government, while minor ports are under state government regulation.
  • British colonialism used ports to extract resources from hinterlands, with railways extending market connectivity.
  • Partition in 1947 resulted in the loss of key ports like Karachi and Chittagong, prompting the development of new ports like Kandla and Diamond Harbour.
  • Post-independence, Indian ports continued to expand and modernize, attracting private investment for infrastructure enhancement.
• Major Indian Ports and their Significance:
• 
  • Deendayal Port (Kandla): Located at the Gulf of Kutch, serves the western and northwestern regions, relieving pressure from Mumbai port. Specializes in handling petroleum, fertilizers, and more.
  • Mumbai Port: India's largest port, strategically positioned for trade with the Middle East, Europe, and North America. Hinterlands include states like Maharashtra, Gujarat, and parts of Rajasthan.
  • Jawaharlal Nehru Port (Nhava Sheva): Developed as a container port to ease congestion in Mumbai.
  • Marmagao Port: Located in Goa, gained importance for iron-ore exports post-1961 remodeling.
  • New Mangalore Port: Supports exports of iron-ore, fertilizers, petroleum products, and more, with Karnataka as its primary hinterland.
  • Kochchi Port: Situated at Vembanad Kayal, caters to Kerala, southern Karnataka, and southwestern Tamil Nadu.
  • Kolkata Port: Developed by the British, now faces reduced significance due to diversions to other ports. Hinterlands include states like West Bengal, Bihar, and northeastern states.
  • Haldia Port: Constructed downstream from Kolkata to handle bulk cargo and reduce congestion.
  • Paradwip Port: Located in the Mahanadi delta, specializes in iron-ore exports, serving states like Odisha, Chhattisgarh, and Jharkhand.
  • Visakhapatnam Port: A land-locked harbor connected via a channel, serves Andhra Pradesh and Telangana.
  • Chennai Port: One of the oldest ports on the eastern coast, serving Tamil Nadu and Puducherry.
  • Ennore Port: Developed north of Chennai to alleviate pressure, handling various cargo types.
  • Tuticorin Port: Developed to ease pressure on Chennai Port, handling diverse cargo including coal, salt, and food grains.

Airport

Air transport is a crucial part of global trade, with its main strength lying in the quick transportation of high-value or perishable goods over long distances. However, it is expensive and not suitable for transporting heavy or large items, which limits its involvement in international trade compared to sea routes. In India, there are several major airports and under the UDAN scheme, many more airports have become operational to improve connectivity.

• Role of Air Transport in International Trade:

  Air transport is essential for moving valuable or perishable items quickly across long distances. While it excels in speed, it is costly and not ideal for transporting heavy or bulky goods, making it less common in international trade compared to sea transport.

• Major Airports in India:

  In India, there are 25 major airports including Ahmedabad, Bengaluru, Chennai, Delhi, Goa, Guwahati, Hyderabad, Kolkata, Mumbai, Thiruvananthapuram, Srinagar, Jaipur, Calicut, Nagpur, Coimbatore, Cochin, Lucknow, Pune, Chandigarh, Mangaluru, Vishakhapatnam, Indore, Patna, Bhubaneswar, and Kannur.

• UDAN Scheme:

  Since 2017, the UDAN scheme in India has operationalized 73 previously underserved or unserved airports, including 9 Heliports and 2 water aerodromes. This initiative aims to enhance air connectivity across the country, especially to remote areas.

• Main Features of Air Transport in India:

  Air transport in India is characterized by a network of major airports, the expansion of connectivity through initiatives like UDAN, and the focus on speeding up the movement of high-value or time-sensitive goods.