Unit IV You have already studied about the various

aspects of International trade in the book

Chapter 8
Fundamentals of Human Geography.
International Trade is mutually beneficial as
no country is self-sufficient. India’s
international trade has undergone a sea change
in recent years in terms of volume, composition
as well as direction. Although India’s
contribution in the world trade is as low as
one per cent of the total volume, yet it plays a
significant role in the world economy.
Let us examine the changing pattern of
India’s International trade. In 1950-51, India’s
INTERNATIONAL external trade was worth Rs.1,214 crore, which
TRADE rose to Rs. 77,19,796 crore in 2020-21. Can
you calculate the percentage growth in 2020-21
over 1950-51? There are numerous reasons for
this sharp rise in overseas trade, such as the
momentum picked up by the manufacturing
sectors, the liberal policies of the government
and the diversification of markets.
The nature of India’s foreign trade has
changed over the years (Table 8.1). Though there
has been an increase in the total volume of import
and export, the value of import continued to be
higher than that of exports.

Changing Pa ttern of the

Pa
Composition of India’ s Expor
India’s ts
Exports
Extent of gap between Exports and Imports in India’s
foreign trade During 2013-14 to 2021-22

Source: Economic Survey 2022-23

Fig. 8.1

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 Table 8.1 India’s Foreign Trade
(Value in Rs. Crore)
Year Exports Imports Trade Balance

2004-05 3,75,340 5,01,065 -1,25,725

2009-10 8,45,534 13,63,736 -5,18,202
2013-14 19,05,011 27,15,434 -8,10,423
2016-17 18,52,340 25,77,422 -7,25,082
2021-22 31,47,021 45,72775 -14,25,753
Source : http://commerce.nic.in/publications/annual-report - 2010-11 and Economic
Survey 2016-17, 2022-23

Draw bar diagram to show the trends of exports of all items given in the table. Use pen/pencil of different colours.
Table 8.2 : Composition of India’s Export, 2015-2022
(Percentage share in Exports)
Commodities 2015-16 2016-17 2020-21 2021-22

Agriculture and allied products 12.6 12.3 14.3 11.9

Ore and Minerals 1.6 1.9 3.2 2.0
Manufactured goods 72.9 73.6 71.2 67.8
Crude and petroleum products 11.9 11.7 9.2 16.4
Other commodities 1.1 0.5 2.1 1.9

Source : Economic Survey 2016-17 and 2022-23

The composition of commodities in significant growth in the export. China and other
India’s international trade has been East Asian countries are our major competitors.
undergoing a change over the years. In export Gems and jewellery contributes a larger share
the share of agriculture and allied products of India’s foreign trade.
and manufactured goods have decreased,
whereas, share from crude petroleum and
products and other commodities have
Study Table 8.3 and select major commodities exported
increased. The share of ore and minerals have in 2021-22 and draw bar diagram.
largely remained constant over the years from
2015-16 to 2021-22.
The decline in traditional items is largely Changing Patterns of the Composition of
India’s Import
due to the tough international competition.
Amongst the agriculture products, there is a India faced serious food shortage during
decline in the export of traditional item, such 1950s and 1960s. The major item of import
as cashew, etc., though an increase has been at that time was foodgrain, capital goods,
registered in floricultural products, fresh fruits, machinery and equipment. The balance of
marine products and sugar, etc. payment was adverse as imports were more
Manufacturing sector alone accounted for than export in spite of all the efforts of import
67.8 per cent of India’s total value of export in substitution. After 1970s, foodgrain import
2021-22. Engineering goods have shown a was discontinued due to the success of Green

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Table 8.3 : Export of Some Principal Commodities market is another reason for the same. It is also
(in crore rupees) noticed that the, import of capital goods
Commodities 2021-22 maintained a steady decline. Import of food
and allied products declined. Other major items
Agriculture and allied products 3,75,742 of India’s import include pearls, precious and
Ores and Minerals 63,754 semi-precious stones, gold and silver,
Manufactured goods 21,32,296 non-metal ferrous metals. The detail of Indian
Mineral fuels and Lubricants 5,15,310 imports of some principal commodities
during 2021-22 have been given in Table 8.5.
Source : Economic Survey 2022-23.

revolution but the energy crisis of 1973 Based on Table 8.5, few activities may
pushed the prices of petroleum, and import be undertaken:
budget was also pushed up. Foodgrain import Arrange the items in ascending or
was replaced by fertilisers and petroleum. descending order and write the names
Machine and equipment, special steel, edible of the first five major items of India’s
oil and chemicals largely make the import import list of 2021-22.
basket. Examine the changing pattern of Why does India import edible oil in spite
imports in Table 8.4 and try to comprehend of being an agriculturally rich country?
the shifts. Select five most important and five least
Table 8.4 shows that there is a rise in important items and represent them by
bar diagram.
the import of petroleum products. It is used
not only as a fuel but also as an industrial raw Can you identify some items of imports
for which substitutes can be developed
material. It indicates the tempo of rising
in India?
industrialisation and better standard of
living, Sporadic price rise in the international

Table 8.4 : India Composition of Import 2015-22

(In percentage)
Commodity Group 2015-16 2016-17 2020-21 2021-22

Food and allied products 5.1 5.6 4.5 4.4

Fuel (Coal, POL) 25.4 26.7 25.1 31.6
Fertilisers 2.1 1.3 1.9 2.3
Paper board manufacturing and news print 0.8 0.9 0.8 0.7
Capital goods 13.0 13.6 12.7 10.1
Others 38.1 37.0 41.6 38.5

Source : Economic Survey 2022-23

88 India : People and Economy

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Table 8 .5 : Import of Some Principal Commodities
(in crore rupees)
Commodities 2021-22 Draw a multiple bar diagram to represent the major
trading partners.
Fertilisers and fertiliser manufacturing 105796
Edible oils 141532 Most of India’s foreign trade is carried
Pulp and waste paper 11934 through sea and air routes. However, a small
Non-ferrous metals 499766 portion is also carried through land route to
Iron and steel 94053 neighbouring countries like Nepal, Bhutan,
Petroleum, oil and lubricants 1207803 Bangladesh and Pakistan.
Pearls, precious and 231279
semi-precious stones Sea P or ts as Ga
orts
Por Gate te
teww a y s of
Medicinal and Pharma products 67545 Interna tional T
International Trr ade
Chemical products 308882
India is surrounded by sea from three sides
Source : Economic Survey 2022-23 and is bestowed with a long coastline. Water
provides a smooth surface for very cheap
Direction of Trade transport provided there is no turbulence. India
India has trade relations with most of the
countries and major trading blocks of the
world.
Region-wise and sub-region-wise trade
during the period 2021-22 has been given in
Table 8.6.

Table 8.6 Direction of India’s Import trade

(in crore rupees)

Region Imports
2016-1
2016 7
-17 2021
21--22
2021

Europe 403972 640577

Africa 193327 368156
North America 195332 378041
Latin America 115762 161995
Asia and ASEAN 1544520 2918577

Source : Economic Survey 2016-17 and 2022-23

Fig. 8.3 : Unloading of goods on port

India aims to double its share in the
international trade within the next five years. It has a long tradition of sea faring and developed
has already started adopting suitable measures many ports with place name suffixed with
such as import liberalisation, reduction in pattan meaning port. An interesting fact about
import duties, delicensing and change from ports in India is that its west coast has more
process to product patents. ports than its east coast.

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 have been invited for the modernisation of
ports in India.
Can you find out the reasons for the The capacity of Indian ports increased from
variations in the location of ports along the 20 million tonnes of cargo handling in 1951 to
two coasts? more than 837 million tonnes in 2016.
Some of the Indian ports along with their
Though ports have been in use since hinterlands are as follows :
ancient times, the emergence of ports as Deendayal Port (Kandla port) situated
gateways of international trade became at the head of Gulf of Kuchchh has been
important after the coming of the European developed as a major port to cater to the needs
traders and colonisation of the country by the of western and north western parts of the
British. This led to the variation in the size and country and also to reduce the pressure at
quality of ports. There are some ports which have Mumbai port. The port is specially designed to
very vast area of influence and some have limited receive large quantities of petroleum and
area of influence. At present, India has 12 major petroleum products and fertiliser. The offshore
ports and 200 minor or intermediate ports. In terminal at Vadinar has been developed to
case of the major ports, the central government reduce the pressure at the port.
decides the policy and plays regulatory Demarcation of the boundary of the
functions. The minor ports are there whose hinterland would be difficult as it is not fixed
policy and functions are regulated by state over space. In most of the cases, hinterland
governments. The major ports handle larger of one port may overlap with that of the other.
share of the total traffic. Mumbai is a natural harbour and the
The British used the ports as suction points biggest port of the country. The port is
of the resources from their hinterlands. The situated closer to the general routes from the
extension of railways towards the interior countries of Middle East, Mediterranean
facilitated the linking of the local markets to countries, North Africa, North America and
regional markets, regional markets to national Europe where the major share of country’s
markets and national markets to the international overseas trade is carried out. The port is 20
markets. This trend continued till 1947. It was km long and 6-10 km wide with 54 berths
expected that the country’s Independence will and has the country’s largest oil terminal.
reverse the process, but the partition of the M.P., Maharashtra, Gujarat, U.P. and parts
country snatched away two very important ports, of Rajasthan constitute the main hinterlands
i.e., Karachi port went to Pakistan and Chittagong of Mumbai ports.
port to the erstwhile east-Pakistan and now Jawaharlal Nehru Port at Nhava Sheva
Bangladesh. To compensate the losses, many new was developed as a satellite port to relieve the
ports, like the Kandla in the west and the pressure at the Mumbai port. It is the largest
Diamond Harbour near Kolkata on river Hugli in container port in India.
the east were developed. Marmagao Port, situated at the entrance
Despite this major setback, Indian ports of the Zuari estuary, is a natural harbour in
continued to grow after the Independence. Goa. It gained significance after its remodelling
Today, Indian ports are handling large in 1961 to handle iron-ore exports to Japan.
volumes of domestic, as well as, overseas Construction of Konkan railway has
trade. Most of the ports are equipped with considerably extended the hinterland of this
modern infrastructure. Previously, the port. Karnataka, Goa, Southern Maharashtra
development and modernisation was the constitute its hinterland.
responsibility of the government agencies, New Mangalore Port is located in the
but considering the increase in function and state of Karnataka and caters to the needs of the
need to bring these ports at par with the export of iron-ore and iron-concentrates. It also
international ports, private entrepreneurs handles fertilisers, petroleum products, edible

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Fig. 8.4 : India – Major Ports and Sea Routes

International Trade 91

2024-25
oils, coffee, tea, wood pulp, yarn, granite stone, Chennai Port is one of the oldest ports on
molasses, etc. Karnataka is the major the eastern coast. It is an artificial harbour built
hinterland for this port. in 1859. It is not much suitable for large ships
Kochchi Port, situated at the head of because of the shallow waters near the coast.
Vembanad Kayal, popularly known as the Tamil Nadu and Puducherry are its hinterland.
‘Queen of the Arabian Sea’, is also a natural Ennore, a newly developed port in Tamil
harbour. This port has an advantageous Nadu, has been constructed 25 km north of
Chennai to relieve the pressure at Chennai port.
location being close to the Suez-Colombo route.
Tuticorin Port was also developed to
It caters to the needs of Kerala, southern-
relieve the pressure of Chennai port. It deals
Karnataka and south western Tamil Nadu.
with a variety of cargo, including coal, salt, food
Kolkata Port is located on the Hugli river, grains, edible oils, sugar, chemicals and
128 km inland from the Bay of Bengal. Like the petroleum products.
Mumbai port, this port was also developed by
the British. Kolkata had the initial advantage Airports
of being the capital of British India. The port Air transport plays an important role in the
has lost its significance considerably on account international trade. It has the advantage of
of the diversion of exports to the other ports taking the least time for carriage and handling
such as Vishakhapatnam, Paradwip and its high value or perishable goods over long
satellite port, Haldia. distances. It is very costly and unsuitable for
Kolkata port is also confronted with the carrying heavy and bulky commodities. This
problem of silt accumulation in the Hugli river ultimately reduces the participation of this
which provides a link to the sea. Its hinterland sector in the international trade as compared
covers U.P., Bihar, Jharkhand, West Bengal, to the oceanic routes.
Sikkim and the north-eastern states. Apart from There were 25 major airports functioning in
this, it also extends ports facilities to our the country (Annual Report 2016-17). They are
neighbouring land-locked countries such as Ahmedabad, Bengaluru, Chennai, Delhi, Goa,
Nepal and Bhutan. Guwahati, Hyderabad, Kolkata, Mumbai,
Haldia Port is located 105 km Thiruvananthapuram, Srinagar, Jaipur, Calicut,
downstream from Kolkata. It has been Nagpur, Coimbatore, Cochin, Lucknow, Pune,
Chandigarh, Mangaluru, Vishakhapatnam,
constructed to reduce the congestion at Kolkata
Indore, Patna, Bhubaneswar and Kannur. Since
port. It handles bulk cargo like iron ore, coal,
2017, under the UDAN scheme, a total number
petroleum, petroleum products and fertilisers,
of 73 unserved/underserved airports including
jute, jute products, cotton and cotton yarn, etc. 9 Heliports and 2 water aerodromes have been
P a r a d w i p P o r t is situated in the operationalized (Source: PIB, Ministry of Civil
Mahanadi delta, about 100 km from Cuttack. Aviation, Govt. of India, 2023)
It has the deepest harbour specially suited You have already studied about the air
to handle very large vessels. It has been transport in the previous chapter. You consult
developed mainly to handle large-scale export the chapter on transport to find out the main
of iron-ore. Odisha, Chhattisgarh and features of air transport in India.
Jharkhand are the parts of its hinterland.
Visakhapatnam Port in Andhra Pradesh
is a land-locked harbour, connected to the sea
by a channel cut through solid rock and sand. Name the nearest domestic and international airports
An outer harbour has been developed for from your place. Identify the state with maximum number
handling iron-ore, petroleum and general cargo. of domestic airports.
Andhra Pradesh and Telangana are the main
Identify four cities where maximum number of air routes
hinterland for this port. converge and also give reasons for this.

92 India : People and Economy

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Fig. 8.5 : India – Air Routes

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 EXERCISES

1. Choose the right answers of the following from the given options.
(i) Trade between two countries is termed as
(a) Internal trade (c) International trade
(b) External trade (d) Local trade
(ii) Which one of the following is a land locked harbour?
(a) Vishakhapatnam (c) Ennor
(b) Mumbai (d) Haldia
(iii) Most of India’s foreign trade is carried through
(a) Land and sea (c) Sea and air
(b) Land and air (d) Sea
2. Answer the following questions in about 30 words.
(i) Mention the characteristics of India’s foreign trade.
(ii) Distinguish between port and harbour.
(iii) Explain the meaning of hinterland.
(iv) Name important items which India imports from different countries.
(v) Name the ports of India located on the east coast.
3. Answer the following questions in about 150 words.
(i) Describe the composition of export and import trade of India.
(ii) Write a note on the changing nature of the international trade of India.

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