International Trade
- International trade means
- Transaction of goods, services, capital or technology between different countries. It includes imports and exports between different countries.
- International trade is beneficial for all countries because no country is self-sufficient
- India's share in world trade is only one percent
The changing pattern of India's international trade
- India's foreign trade was Rs 1214 crore in 1951-52, which has increased to Rs 77,19,796 crore in 2021-22
Due to the increase in business
- Development in manufacturing
- liberal policies of the government
- Access to markets
- The growing importance of trade (globalisation)
The changing pattern of India's import composition
- India experienced severe food shortages in the 1950s and 1960s.
- The main items of import at that time were food grains, capital goods, machinery and equipment etc.
- The balance of payments at that time was exactly the opposite; as imports were more than exports despite all efforts at import substitution.
- After the success of Green Revolution, import of food grains was stopped.
- But the energy crisis of 1973 led to a surge in petroleum prices, which increased the import budget.
- The import of food grains was replaced by fertilizers and petroleum.
- There has been an increase in the import of petroleum products.
- It is used not only as a fuel but also as an industrial raw material.
- This points to the momentum of rising industrialisation and better living standards , it is also observed that imports of capital goods continued to decline.
- Imports of food and allied products declined.
- Other major items of India's imports include pearls, precious and semi-precious gems, gold and silver, non-ferrous metals.
Direction of business
- India has trade relations with most of the countries and major trading groups of the world.
- India aims to double its share in international trade over the next five years.
- In this direction, it has already started taking favourable measures like import liberalisation, reduction in import duties, de-licensing, changes in (patents) etc.
- Most of India's foreign trade is conducted through sea and air routes.
- A small portion of foreign trade is carried out by road with neighbouring countries like Nepal, Bhutan, Bangladesh and Pakistan.
sea port
- Seaports are called the gateway of international trade. India is surrounded by sea on three sides and nature has blessed us with a long coastline.
- Water provides a flat surface for cheap transportation. Sea travel has a long tradition in India, an interesting fact about seaports in India is that there are more ports on its western coast than on its eastern coast.
- There are 12 major ports and 200 minor ports in India. The central government makes policy regarding major ports, the state government makes policy regarding minor ports. The British used these ports as centers of absorption of resources.
- The expansion of railways into the interior regions facilitated the linking of local markets to regional markets, regional markets to national markets, and national markets to international markets.
- After independence, due to the partition of the country, two very important ports of India were separated. Karachi Port went to Pakistan and Chittagong Port went to the then East Pakistan and now Bangladesh.
- To compensate for this, many new ports were developed, such as Kandla in the west and Diamond Harbour near Kolkata on the Hooghly River in the east.
- Despite this huge loss, Indian ports have been growing steadily since the country gained independence.
- Today Indian ports are handling huge volumes of domestic as well as foreign trade.
- Most of the ports are equipped with modern infrastructure. Earlier the responsibility of development and modernization of ports was on government agencies, but the increase in work and the need to make these ports at par with international level ports invited private entrepreneurs to modernize the ports of India.
Various Ports
1. Deendayal Patan (Kandla Port)
- This port has been developed as a major port to meet the needs of the western and north-western parts and to reduce the pressure on Mumbai Port.
- This port is specially designed to handle large quantities of petroleum, petroleum products and fertilizers.
2. Mumbai Port
- Mumbai is a natural port and the largest port in the country.
- This port is located near the common route of the countries of Middle East, Mediterranean Sea, North Africa, North America and Europe.
- From where most of the country's foreign trade is conducted.
- This port is 20 km long and 6-10 km wide.
3. Jawaharlal Nehru Port
- Jawaharlal Nehru Port was developed to ease the pressure on Mumbai Port at Nhava Sheva.
- It is India's largest container port.
4. Marmagao Port
- Marmagao Port is a natural harbour of Goa.
- It gained importance after a remodelling in 1961 to handle iron ore exports to Japan.
- The Konkan Railway has made significant expansion into the hinterland of this port.
- Karnataka, Goa and Southern Maharashtra form its backdrop
5.New Mangalore Port
- New Mangalore Port located in Karnataka caters to the export requirements of iron ore and iron concentrate.
- The port also handles fertilizers, petroleum products, edible oils, coffee, tea, pulp, cotton, granite stones, etc.
- Page Karnataka is the main hinterland of this port.
6. Kochi Port
- Kochi Port is also a natural port.
- This port has the advantage of being located near the Suez Colombo route.
- It caters to the needs of Kerala, southern Karnataka and south-western Tamil Nadu.
- It is popularly known as the 'Queen of Arabian Sea'.
7. Kolkata Port
- Kolkata Port is located on the Hooghly River, 128 km inland from the Bay of Bengal.
- Like Mumbai Port, it was also developed by the British.
- Kolkata had the initial advantages of being the capital of British India.
- Kolkata Port has also been grappling with the problem of silt brought by the Hooghly River, whose hinterland includes Uttar Pradesh, Bihar, Jharkhand, West Bengal, Sikkim and the north-eastern states.
- Apart from all this, this port also provides facilities to our landlocked neighbouring countries like Bhutan and Nepal.
8. Haldia Port