Trade in India

Trade

Trade is an important phenomenon that decides the economic growth of a country. Trade is an act (or) process of buying, selling or exchanging of goods and services. The primitive method of trade was known as the Barter system where goods were exchanged for goods. Later on, money was introduced as a medium of exchange in buying and selling of goods. The difference in value between the imports and exports is called balance of trade. The situation in which the value of exports exceeds the value of imports is termed as favourable balance of trade and the reverse position is termed as unfavourable balance of trade.

Types of Trade

Trade in general, is of two types. They are

1. Internal trade

2. International trade

The trade carried on within the domestic territory of a country is termed as Internal trade. It is also called as Domestic trade or Local trade. Land transport (roadways and railways) plays a major role in this trade. Local currency is used in internal trade. It helps to promote a balanced regional growth in the country.

Trade carried on between two or more countries is called International trade. It is also called as external trade or foreign trade. Export and Import are two components of International trade. Export means goods and services sold for foreign currency. Import means goods and services bought from overseas producers. Waterways and Airways play a vital role in this type of trade. Foreign currency is involved in international trade. The trade between any two countries is called Bilateral trade. The trade between more than two countries is called Mutilateral Trade.

Hots: Find out the major trade blocs which are useful for multilateral trade.

Exports

The major exports of India are tea, marine products, ores and minerals, leather products, gems and jewels, sports goods, chemicals and related products, plastics and rubber articles, articles of stones, plaster, cement, asbestos, mica, glass ware, paper and related products, base metals, optical, medical and surgical instruments, electronic items, machinery, office equipments, textiles and allied products.

Imports

The major imports are petroleum products, pearls, precious stones and semi-precious stones, gold and telecom instruments.

Activity : Find out the countries which have trade realtionship with India