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International Trade

Exchange of goods between two parties, such as people, states and countries, is called trade.

The place where this exchange takes place is called market.

Local trades are carried in cities, towns or villages. State level trades are carried between two or more states.

Trade between two countries is called international trade. International trade may take place through sea routes, land routes or air routes.

Advancement of international trade of a country leads to its economic prosperity. International trade of a country, therefore, is considered as its economic barometer.

No country in modern day can survive without international trade. Import and export of goods are essential components of trade.

The difference between exports and imports is known as the balance of trade. If value of exports is more than the value of imports, it is called a favourable balance of trade. If it is the other way round, that is the value of import is more than the value of export, it is called an unfavourable balance of trade.

In 2000-01, India had a foreign trade of Rs. 43 lakh crore; of this, import constituted 53 per cent and export 47 per cent. The import is higher than export and, therefore, India’s international trade is unfavourable.

Major Imports and Exports of India



Agriculture and Allied products Petroleum and petroleum products
Ore and Minerals Pearls and precious stones
Gems and Jewellery Inorganic chemicals
Chemical and allied products Coal, Coke and Briquettes
Engineering goods Machinery
Petroleum products fertilizers
Software products Cereals and edible oil
Textiles Newsprint

Tourism as a Trade

Over 2.6 million people visit India every year and there are more than 15 million people engaged in this tourism industry.

Advantages of tourism

  • Promotes national integration
  • Support to local handicrafts. and cultural pursuits
  • Develops international understanding about our culture and heritage.

Tourism in India

There is a vast potential of tourism development in many regions of India. However Indian tourism industry has a bright future.

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