Why is foreign trade important for country like india?
Answers
Thirdly, foreign trade helps the people to get different varieties of goods both in quantities terms and qualitative terms. Fourthly, foreign trade helps a developing country like India in its economic development. ... There is also scarcity of consumer goods due to natural calamities or due to any other reason.
For a country like India, where the population is very high and the economy is growing at the rate of 8% per annum, foreign trade will bring in good capital adding to the foreign direct investment or FDI. India being still a developing country, would develop a lot with the help of foreign trade. Further, privatisation and liberalisation have opened the trade barriers and allowed free flow of trade. India has put in its efforts in the SAARC(South Indin Association of Regional Cooperation, where Afghanistan , Pakistan, Bhutan, Nepal, Bangladesh, Sri Lanka and Maldives have joined into an organisation) and the trade inflow has brought a trade surplus of $15 billion.