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Overview of International Trade

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Estimated time: 6 minutes
CBSE: Class 12

Key Points: Changing Pattern of India’s Exports and Imports

  • Exports Pattern Change: Share of agriculture and traditional items has declined, while crude petroleum products and manufactured goods have increased.
  • Manufactured Goods Important: Manufacturing sector contributes about 67.8% (2021–22) of total exports. Engineering goods and gems & jewellery are major export items.
  • Imports Pattern Change: Earlier India imported foodgrains, but after the Green Revolution, imports shifted mainly to petroleum, fertilisers, machinery and capital goods.
  • Petroleum Imports Rising: Import of petroleum products has increased due to industrial growth, higher living standards and rise in international prices.
  • Direction of Trade: India trades with most countries of the world. Most foreign trade is carried through sea and air routes, while some trade is done through land routes with neighbouring countries.
CBSE: Class 12

Key Points: Sea Ports as Gateways of International Trade

  • India has a long coastline, so sea transport is cheap and important for trade.
  • India has 12 major ports and 200 minor ports.
  • Major ports are controlled by Central Government, minor ports by State Government.
  • After Partition, India lost Karachi and Chittagong, so ports like Kandla developed.
  • Cargo handling increased from 20 million tonnes (1951) to 837 million tonnes (2016).
  • Important ports: Mumbai, JNPT, Kandla, Kochchi, Chennai, Visakhapatnam, Paradwip.
  • Air transport is fastest but costly, used mainly for high-value and perishable goods.
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