Question

Changing pattern of foreign trade in india

Answer 1

Among several features of globalization, one relates to increasing interactions among nations and removal of barriers to facilitate movement of goods, capital, labour and technology. It is a process that renders various activities and aspiration worldwide in scope or application. As a part of this process of increasing integration of the world, many countries have adopted economic reforms and liberalization in their own ways. The rapid integration of Brazil, Russia, India, China and South Africa into the world market was an important element of globalization. Trade is the primary manifestation of this increasing integration and changing organizational structure of the global economy which has been much more extensive than in the past involving more countries & regions. In the similar way, it is also much more intensive as foreign trade became a key component of most countries economic activities. Over the years emerging economies like China, India, Brazil, Mexico, Russia and South Africa have made their presence felt in the global market and have come forth as new key drivers of global growth. Among other emerging countries, China and India are the fastest growing economies. India with its distinct development strategy has the potential to influence economic activities of the global economy in the years to come. With this background, this study is an exploratory attempt to measure the quantum leap in export and import to India, and to identify changes in commodity composition and regional patterns of inflows and outflows of merchandise trade. The analysis pertains to four points of time 1990, 1995, 2000 and 2005. Some of the major findings of the study are as follows: (i) Manufacturing sector has increased its share vis-̂-vis other tradable sectors; (ii) Specialization of production and diversification of consumption; (iii) Indian trade is gradually moving away from low value-added product.

Answer 2

Change in the Pattern of Trade and Commerce

The English East India Company, in their initial days, bought their ware from the local market so the artisans benefited. But in the eighteenth century, the pattern of trade underwent a drastic change. With the advent of the Industrial Revolution in England, many new industries came up which started manufacturing on a large scale. These products needed new markets for the goods to be sold. So India was reduced to a raw material producing country. Raw material from India was exported and the goods which were made out of these materials were sold back in India. So the British traders made enormous profits in this two- way trade, all at the expense of the Indians.