Economics · Ch 9 — Foreign Trade
Composition of India's Foreign Trade
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Composition of India's Foreign Trade
The composition of trade refers to what a country exports and imports — the commodity-wise break-up of its trade. India's export and import basket has changed enormously since independence, reflecting the shift from a largely agricultural economy to one with a significant industrial and services base.
Broad composition of India's exports (illustrative, recent years):
| Category | Examples |
|---|---|
| Petroleum products | Refined petroleum re-exported after processing imported crude oil |
| Gems and jewellery | Cut and polished diamonds, gold jewellery |
| Engineering goods | Machinery, auto components, iron and steel goods |
| Chemicals and pharmaceuticals | Organic chemicals, bulk drugs, generic medicines |
| Textiles and apparel | Cotton yarn/fabric, readymade garments |
| Agriculture and allied products | Rice, marine products, spices |
| Services (invisible exports) | Software and IT services, business process outsourcing |
Broad composition of India's imports (illustrative, recent years):
| Category | Examples |
|---|---|
| Crude petroleum | India imports the bulk of the crude oil it refines and consumes |
| Gold and precious stones | Gold for jewellery-making and investment demand |
| Electronics | Mobile phones, computer hardware, semiconductor devices |
| Machinery | Capital goods and industrial machinery |
| Coal | Thermal and coking coal for power generation and steel-making |
| Chemicals and fertilisers | Industrial chemicals and fertiliser raw materials |