Main characteristics of India international trade after independence-

Foreign trade plays an important role in the economic development of country. It is said,
“Foreign trade is not simply a device for achieving productive efficiency but is an engine
of economic growth.”

Many reasons certify this statement.

(i) Nation can optimally use its resources

(ii) Technical know-how can be imported.

(iii) Surplus production can be exported.

(iv) Machinery and raw materials can be imported as and when needed.

(v) Food grains and necessary help can be imported during natural calamities like
earthquake, & flood etc.

Salient Features or characteristics of Foreign Trade of India:

The following are the main features of foreign trade:

1) Change in the composition of exports:

After independence many changes took place in export trade. India exported tea, jute,
cloth, iron, spices and leather before independence. Now chemicals, readymade
garments, gems, jewellery, electronic goods, processed foods, machines. Computer
software etc. are exported along with tea, jute and cotton textiles.

2) Change in the composition of imports:

India imported consumer goods, medicines, textiles, motor vehicles and electrical goods
before independence. After independence, imports are fertilizers, petroleum, steel,
machines, industrial raw materials, edible oils and unfinished diamonds.

3) About 90% of India's foreign trade is done through the sea. India's foreign trade is
handled mainly by Bombay, Calcutta, Madras ports. Therefore, these ports remain over
busy. During planning period Government of India has developed three more ports viz;
Kandla, Cochin and Vishakhapatnam. Countries sharing a land border with India are
either economically backward or they have a political rivalry.

4) As a result of very large population and a small amount of trade, the per capita foreign
trade of India is quite low in comparison to that of developed and developing countries.
India's share in world trade has been sliding down. In 1950-51, India's share in total
import trade of the world was 1.8% and in total export trade was 2%. In 2001-02, it came
down to 0.5% in import trade and to 0.2% in export trade. India has an unfavourable
balance of trade.

5)The total imports of India amounted 608 crores (1950-51) increased to 1126513 crores
in 2011–12 and the export during these years increased from 606(1950-51) crores to
751633 crores (2010-11) Most of the foreign trade is handled by only by the 11 major
ports of the country

6) Today India exports goods to more than 200 countries and imports from more than 180
countries of the world. We export more than 8250 types of goods and the diversity of
goods imported has also increased.

7) There is an invisible item of export. It refers to export at skills include contracts of

consultancy, construction and industrial projects. Exports of electronics, computer
hardware and software had increased significantly during the recent years.