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International Trade
Question
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Describe the major changes that have occurred in the commodity composition of India's imports during the period between 1960–2001 with examples.

Answer

India's foreign trade has undergone a great change during last 40 years. These are described below:

Positive change:

1. Petroleum and Petroleum Products:

In 1960-61 petroleum and its products accounted for 6.2% of total imports. This percentage rose to 28.7% in 2002-03. Reasons was price rise in petroleum and its products.

2. Chemicals and fertilizers : The import of chemicals also rose from 3.5% in 1961 to 6.9% in 2003. The import was necessary for increasing industrial output.

 Negative change :

(i) Capital goods : Import of machineries, electrical machines, tools and equipments have come down in quantitative terms.

(ii) Food and allied products : The share in the import of these products has come down from 19.1% in 1960-61 to 4.6% in 2002-03.

(iii) Clothes and iron and steel : India is no longer imports clothes instead has become a net exporter on a large scale. The same is the story with iron and steel.

(iv) Raw material : Import of minerals, crude rubber, wood timber, ferrous minerals have also come down. The main reason for this reduction is the increase in the domestic production of these minerals.

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Some More Questions From International Trade Chapter

Trade between two countries is termed as:

Which one of the following is a land locked harbour?

 

Most of India’s foreign trade is carried through

Which one of the following is India's largest trading partner in 2003–04 ?

 

Mention the characteristics of the India's foreign trade.

Distinguish between a port and a harbour.

Explain the meaning of hinterland.

Name important items which India import from different countries.

Name the ports of India located on the eastcoast.

Describe the composition of export and import trade of India.