Economy Chapters

1. Economy and Economics2. Characteristics of Indian Economy3. Agriculture and Land Development4. National Income5. Planning6. Unemployment7. Trade and Commerce8. New Economic Policy9. Indian Financial System10. Indian Fiscal System11. Banking in India12. Tax System13. Industry14. Foreign Trade15. Glossary of Economic and Financial Terms16. Some Noteworthy Facts17. Socio Economic and Caste Census 2011

Foreign Trade

Foreign trade refers to the exchange of goods and services between India and other countries, playing a vital role in the country's economic growth.

Definition

Foreign trade is the buying and selling of goods and services across international borders to meet the demands of global markets and gain access to resources.

Types of Foreign Trade

  • Export: Selling goods and services produced in India to foreign countries.
  • Import: Purchasing goods and services from other countries for use in India.
  • Balance of Trade: The difference between the value of exports and imports.
  • Trade Surplus: When exports exceed imports.
  • Trade Deficit: When imports exceed exports.

Importance of Foreign Trade

  • Provides access to raw materials and advanced technology not available domestically.
  • Promotes economic growth by increasing exports and foreign exchange earnings.
  • Creates employment opportunities in export-oriented industries.
  • Helps in diversifying markets and reducing dependence on domestic consumption.
  • Encourages competition and innovation through exposure to global markets.

India’s Major Trading Partners

  • United States
  • China
  • United Arab Emirates
  • European Union countries
  • Saudi Arabia
  • Singapore

Major Export and Import Commodities

  • Major Exports: Petroleum products, gems and jewelry, textiles, pharmaceuticals, engineering goods, and chemicals.
  • Major Imports: Crude oil, gold, electronics, machinery, chemicals, and fertilizers.

Trade Policies and Agreements

  • Foreign Trade Policy to promote exports and regulate imports.
  • Free Trade Agreements (FTAs) with countries like ASEAN, Japan, and South Korea.
  • Membership in World Trade Organization (WTO) and adherence to global trade norms.
  • Export Promotion Councils supporting specific sectors.

Previous Year Questions

  • SSC CGL 2021: What is meant by trade deficit?
  • When a country's imports exceed its exports.
  • HSSC 2020: Name two major trading partners of India.
  • United States and China.
  • RRB JE 2019: What are export promotion councils?
  • Organizations that promote exports of specific goods and services.
  • SSC GD 2020: What is the significance of Free Trade Agreements?
  • They reduce trade barriers and increase trade between countries.
  • HSSC 2021: Which commodity is a major import for India?
  • Crude oil.
  • SSC CHSL 2019: Define balance of trade.
  • The difference between the value of exports and imports of a country.
  • RRB NTPC 2020: What role does WTO play in foreign trade?
  • It regulates global trade rules and resolves trade disputes.
  • SSC CGL 2019: What is a trade surplus?
  • When a country's exports exceed its imports.
  • HSSC 2019: Name two major export commodities of India.
  • Textiles and pharmaceuticals.
  • SSC MTS 2020: What is foreign trade?
  • Exchange of goods and services between countries.
  • RRB JE 2021: Name one initiative to boost exports in India.
  • Foreign Trade Policy.
  • SSC GD 2019: Which sector benefits the most from foreign trade?
  • Manufacturing and service sectors.
  • HSSC 2020: What is meant by import?
  • Buying goods and services from other countries.
  • SSC CGL 2020: What is the importance of foreign trade for India?
  • It provides foreign exchange and promotes economic growth.
  • RRB NTPC 2019: What are Free Trade Agreements (FTAs)?
  • Agreements between countries to reduce tariffs and promote trade.
  • SSC CHSL 2021: Mention one major export item of India.
  • Gems and jewelry.
  • HSSC 2021: Which country is one of India's largest import sources?
  • China.
StartPreparation