Very Short Answer Type Questions
Q1: What was the value of India's foreign trade in 2010-11?
Ans: The value of India's foreign trade in 2010-11 was ₹28,74,600 crore.
Q2: Which port was developed to relieve the pressure of Chennai port?
Ans: Ennore port was developed to relieve the pressure on Chennai port.
Q3: What was the adverse balance of trade in India in 2011?
Ans: The adverse balance of trade in India in 2011 was ₹540,818 crore.
Q4: Which block receives the majority of India's exports?
Ans: Most of India's exports go to the Asia-Oceania block.
Q5: Name two new ports in India.
Ans: Two new ports in India are Nhava Sheva and Paradip.
Q6: How many domestic airports are there in India?
Ans: India has 11 international airports and 81 domestic airports.
Q7: What is the meaning of the.
Ans: An inland area adjoining the port which provides the resources of a port.
Q8: Name the oldest artificial sea port of India.
Ans: Chennai is the oldest artificial sea port of India. It was built in 1859.
Short Answer Type Questions
Q9: Describe in brief the changing nature of export items in the international trade of India.
Ans:
- India’s international trade is continuously increasing.
- The share of agricultural and allied products is decreasing.
- The import of Petroleum products is increasing.
- The exports of coffee, tea, spices is decreasing.
- The share of fresh fruits and sugar has increased in exports.
- The share of manufactured goods has increased in exports.
- The export of engineering goods has increased.
- Share of Gems-pearls and ornaments in exports has increased.
Q10: Explain the increase of share of petroleum and petroleum products in India’s import trade.
Ans: Largest positive change occurred in petroleum and petroleum product group, which gained 23.8 per cent points during 1960-61 and 2000-01. In 1960-61, these items accounted for only 6.2 per cent of total import value but it reached to 19.2 per cent in 1973-74 and 26% per cent in 2004-05. This rapid growth was more due to the increasing prices and less due to increasing quantity. During 1974, oil producing and exporting countries raised the price of crude petroleum many times. Consequently, petroleum bill jumped very high.
Q11: What is the role of sea ports in the foreign trade of India? Write any three points in this regard.
Ans: Sea ports function as focal points for foreign trade of India.
- Ports act as collection centres of commodities from hinterland for further shipment to foreign distinations.
- Ports act as receiving points of foreign consignment coming to India for distribution.
- Ports are the gateway for foreign trade as these handle exports and imports.
Q12: ‘Ports function as focal points for foreign trade’. Explain.
Ans: Sea ports function as focal points for foreign trade of India. They act as collection centres of commodities from hinterland for further shipment to foreign destinations on one hand, and as receiving points of foreign consignments coming to India for distributing them in the interior part of the country.
Q13: Name the agricultural products of export from India.
Ans: Among agricultural produces, marine products including fish and fish products are at the top accounting for 3.1 per cent of the total value of export. Next in importance are cereals, tea, oil cake, cashew nuts, spices, fruits and vegetables, coffee and tobacco. A small quantity of raw cotton is also exported.
Long Answer Type Questions
Q14: Describe the main features of India’s Foreign trade.
Ans: India's foreign trade is characterized by several key features, which are shaped by its economic structure, policies, and global economic trends. As of my last knowledge update in September 2021, here are the main features of India's foreign trade:
- Diverse Export Basket: India exports a wide range of goods and services, including agricultural products, textiles, gems and jewelry, pharmaceuticals, information technology services, and engineering goods. This diversity helps mitigate risks associated with dependency on a single sector.
- Trade Balance: India has traditionally run a trade deficit, meaning it imports more goods and services than it exports. This is due to the country's reliance on oil imports, capital goods, and electronic goods, among others.
- Trade Partners: India's major trading partners include the United States, China, the United Arab Emirates, Saudi Arabia, and the European Union. The country has been trying to diversify its trade partners to reduce dependence on any single country or region.
- Import Dependence: India heavily relies on imports for essential commodities like crude oil, natural gas, and electronic goods. Fluctuations in global commodity prices can impact India's trade balance significantly.
- Export Markets: While India's exports have diversified, the USA and the EU remain major export markets for Indian goods and services. The software and information technology services sector has been particularly successful in penetrating global markets.
- Trade Policy: India's trade policy has evolved over the years, with periods of protectionism and liberalization. The government has been making efforts to improve the ease of doing business and streamline trade procedures.
- Bilateral and Regional Agreements: India has entered into several bilateral and regional trade agreements, such as the Comprehensive Economic Partnership Agreement (CEPA) with South Korea and the Regional Comprehensive Economic Partnership (RCEP). These agreements aim to enhance market access and trade relations.
- Services Exports: India has a strong services sector, particularly in information technology (IT), software, business process outsourcing (BPO), and pharmaceuticals. Services exports have been a significant contributor to India's foreign exchange earnings.
- Regulatory Challenges: India faces challenges related to regulatory barriers, infrastructure constraints, and bureaucratic red tape, which can hinder the ease of doing business and affect foreign trade.
- Currency Exchange Rate: Fluctuations in the exchange rate of the Indian Rupee can impact the competitiveness of Indian exports and the cost of imports, affecting the trade balance.
- Trade Deficit Management: Managing the trade deficit remains a key challenge for India. The government has taken measures to promote export-oriented industries, reduce import dependency, and encourage domestic manufacturing through initiatives like "Make in India."
Q15: Describe the location, characteristics and commercial importance of major ports of India.
Ans: India has a vast coastline of approximately 7,517 kilometers along the Arabian Sea and the Bay of Bengal. This coastline hosts a number of major ports, each with its unique location, characteristics, and commercial importance. Here are details about some of the major ports of India as of my last update in September 2021:
Mumbai Port:
- Location: Located in Mumbai, Maharashtra, on the west coast of India.
- Characteristics: Mumbai Port is one of the largest and busiest ports in India. It is a natural harbor and handles a variety of goods, including general cargo, liquid bulk, and containers.
- Commercial Importance: Mumbai Port plays a crucial role in India's trade, particularly for goods coming to and from western and central India.
Jawaharlal Nehru Port Trust (JNPT):
- Location: Situated near Mumbai in Navi Mumbai, Maharashtra, it is the largest container port in India.
- Characteristics: JNPT is a modern, all-weather, deep water port. It is specifically designed to handle container traffic and is equipped with state-of-the-art facilities.
- Commercial Importance: JNPT is a hub for containerized cargo and a key gateway for trade in and out of India, especially for the western and northern regions.
Chennai Port:
- Location: Located in Chennai, Tamil Nadu, on the eastern coast of India.
- Characteristics: Chennai Port is the second-largest port in India by container traffic. It handles diverse cargo, including automobiles, general cargo, and containers.
- Commercial Importance: Chennai Port is vital for trade in southern India and is a major entry and exit point for various goods.
Kolkata Port (Kolkata and Haldia Ports):
- Location: Kolkata Port is situated in Kolkata, West Bengal, while Haldia Port is located around 80 kilometers downstream from Kolkata along the Haldia River.
- Characteristics: These ports handle a variety of cargo, including general, bulk, and containerized cargo. Haldia Port is a riverine port.
- Commercial Importance: Kolkata and Haldia Ports serve the eastern and northeastern regions of India, playing a crucial role in trade activities in this area.
Visakhapatnam Port:
- Location: Located in Visakhapatnam, Andhra Pradesh, on the eastern coast of India.
- Characteristics: Visakhapatnam Port is a major port in India, handling diverse cargo such as iron ore, coal, crude oil, and containers.
- Commercial Importance: Visakhapatnam Port serves as a gateway to the mineral-rich regions of Andhra Pradesh, Telangana, and Chhattisgarh.
Paradip Port:
- Location: Situated in Paradip, Odisha, on the eastern coast of India.
- Characteristics: Paradip Port primarily deals with bulk cargo, especially iron ore, coal, and fertilizers.
- Commercial Importance: Paradip Port is crucial for industries in Odisha and neighboring states, serving as a key export point for iron ore and other minerals.