Question

Describe the composition of the export trade of India.

Answer 1

The composition of commodities in India’s international trade has been undergoing change over the years. The share of agriculture and allied products has declined, whereas shares of petroleum and crude products and other commodities have increased. The shares of ore minerals and manufactured goods have largely remained constant from 1997-98 to 2003-04. The increase in the share of petroleum products is due to rising petroleum prices and India’s refining capacity. The decline in traditional products is largely due to competition from the international market. Among agricultural products, there is a significant decline in exports of traditional items such as coffee, spices, tea, pulses, etc., while exports of floricultural products, fresh fruits, marine products, and sugar have increased. The manufacturing sector alone accounted for 68 per cent of India’s total value of exports in 2010-11. Engineering goods have shown significant growth in the export list. China and other East Asian countries are our major competitors. Gems and jewellery account for a larger share of India’s foreign trade.