CH 5 INDIAS FOREIGN TRADE

Question 1

Indian foreign trade at time of independence

Answer 1

Due to exploitation by British , India used to export raw materials and import finished goods. This lead to positive trade balance (x>m). The volume of trade was moderate, composition was backward , direction was limited to Britain .

Question 2

India foreign trade after independence

Answer 2

Volume
showed increase of nearly 3200 times
(Due to small base, which is not good)
Decrease in global share fro, 1.8(independence) to 0.5(1991)

Composition
Decline in agricultural exports
Increase in manufactured good

Direction
Major exports to USA (15%)
Major imports from China (15%)