what do you mean be foreign trade?eplain the composilions direclion of forign trade of India
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Answer:
Meaning and Definition of Foreign Trade or International Trade! Foreign trade is exchange of capital, goods, and services across international borders or territories. In most countries, it represents a significant share of gross domestic product (GDP). ... Production of goods and services requires resources.
➲Indian Foreign Trade
➣Before independence, the foreign trade of India wasmbeing operated on the principles of colonialism. But after independence, there have been huge changes in its state and direction.
➣After independence, inward looking foreign trade policies were accepted and the policy of import replacement was its base.
➣Efforts were made for trade liberalisation during the decade of 1980 and the comprehensive policy of liberalisation and globalisation was made in the decade of 1990s (after the year 1991).
➲Volume of India's Foreign Trade
➣After independence, Indian foreign trade has quantitatively. Though the size of foreign trade and its value both have increased during post-independence made cumulative progress both qualitatively and era, this increase in foreign trade cannot be said
satisfactory because Indian share in total foreign trade of the world has remained remarkable low.
➣In 1950, the Indian share in the total world trade was 1.78%, which came down to 0.6% in 1995. According to the Economic Survey 2001-02 this share percentage of 0.6% continued in years 1997 and 1998. Since 1970, this share has remained around 0.6% which clearly indicates that India has failed to increase its share in the total world trade.
➲Composition of Foreign Trade
➣The top eight export sectorspetroleum products, gems and jewellery, textiles, chemicals and related products agriculture and allied sector, transport equipment, base metals and machinery-continue to dominate India's export basket, accounting for nearly 86.4% of total exports in 2014-15 (as compared to 78.1% in 2010-11).
➣Petroleum, crude and products occupy top position among the top eight export sectors with an 18.3% share of total exports in 2014-15 (as against 14.6% in 2010-11),
➣The shares of agriculture and allied exports, chemicals and related products and transport equipment in total exports have increaseed from 7.1%, 8.3% and 6.6% respectively in 2010-11 to 9.7%, 10.2% and 8.6% in 2014-15.
➣Overall export growth declined by 1.3% in 201415.
➣Similarly imports into India declined by 0.5% to US$ 448.0 billion in 2014-15 as compared to US$ 450.2 billion in 2013-14, on account of a fall in POL imports by 16.00. The decline in POL imports owed to a fall in international crude oil prices (Indian basket) from US$105.5 per barrel in 2013-14 to US$ 84.2 per barrel in 2014-15.
➣Petroleum, crude and products, chemicals and related products, gold, electronic goods and machinery accounted for 62.5% of India's total imports in 2014-15.