Question

Answer the following question in about 30 words.

Mention the characteristics of India’s foreign trade.

Answer 1

The nature of India’s foreign trade has changed over the years. Although the total volume of imports and exports has increased, the value of imports remains higher than that of exports. There has also been an increase in the trade deficit over the last couple of years. This increase in the deficit is attributed to the rise in crude petroleum prices, which are a major component of India’s international trade. The share of primary products in India’s total exports has decreased, whereas the share of petroleum products has increased; the share of manufactured products has remained constant over the years.