International Trade — NCERT Solutions

Hinterland means the region served by a port. It is the inland area from which a port gets goods for export and to which it distributes imported goods. The chapter says the hinterland of a port may overlap with that of another port and is not fixed over space.

From Table 8.5, important items imported by India include:

• Fertilisers and fertiliser manufacturing
• Edible oils
• Pulp and waste paper
• Non-ferrous metals
• Iron and steel
• Petroleum, oil and lubricants
• Pearls, precious and semi-precious stones
• Medicinal and pharma products
• Chemical products

The ports of India located on the east coast mentioned in the chapter are:

• Kolkata Port
• Haldia Port
• Paradwip Port
• Visakhapatnam Port
• Chennai Port
• Kamarajar (Ennore) Port
• V.O. Chidambaranar (Tuticorin) Port

The composition of India’s export and import trade is as follows:

Exports

• Manufactured goods form the largest share of exports.
• In 2021-22, manufactured goods accounted for 67.8% of total exports.
• Crude petroleum and products is another important export item, and its share increased to 16.4% in 2021-22.
• Agriculture and allied products formed 11.9% in 2021-22, showing a decline from earlier years.
• Ore and minerals and other commodities form a small share.

Imports

• The largest share of imports is fuel (coal, POL), which rose to 31.6% in 2021-22.
• Capital goods are also an important import item, though their share declined to 10.1% in 2021-22.
• Food and allied products and fertilisers form smaller shares.
• Other major imported items include petroleum products, pearls and precious stones, edible oils, chemicals, iron and steel, and non-ferrous metals.

Thus, India's exports are mainly manufactured products, while imports are dominated by fuel and capital-related goods.

The nature of India’s international trade has changed considerably over time.

• In terms of volume, foreign trade has increased sharply from Rs. 1,214 crore in 1950-51 to Rs. 77,19,796 crore in 2020-21.
• The composition has also changed. In exports, the share of agriculture and allied products and manufactured goods has decreased, while the share of crude petroleum and products and other commodities has increased.
• In imports, petroleum products have gained importance, while the share of capital goods and food and allied products has declined.
• The direction of trade has also diversified, with India trading with many countries and major trading blocs.
• India now uses sea, air and some land routes for trade.
• The chapter also shows that India is trying to improve trade through import liberalisation, reduction in import duties, delicensing and change from process to product patents.

So, India’s international trade has become larger, more diversified, and more dynamic over time.