International Trade

• Countries need to trade to obtain commodities that they cannot produce themselves or cannot purchase
elsewhere at a lower price.
• The Silk Route, a 6,000-km route connecting Rome to China, is an early example of long-distance trade.
• After the disintegration of the Roman Empire, European commerce grew during the twelfth and
thirteenth centuries with the development of shipping trade between Europe and Asia.
• From the fifteenth century onwards, European colonialism began, and along with the trade of exotic
commodities, a new form of trade emerged — the slave trade.
• The Portuguese, Dutch, Spaniards, and British captured African natives and forcefully transported them
to the newly discovered Americas for their labour in the plantations.
• Slave trade was a lucrative business for more than two hundred years till it was abolished in Denmark
in 1792, Great Britain in 1807, and the United States in 1808.
• After the Industrial Revolution, the demand for raw materials like grains, meat, and wool also expanded,
but their monetary value declined in relation to the manufactured goods.
• The industrialised nations imported primary products as raw materials and exported the value-added
finished products back to the non-industrialised nations.
• In the latter half of the nineteenth century, regions producing primary goods became less important,
and industrial nations became each other’s principal customers.
• During World Wars I and II, countries imposed trade taxes and quantitative restrictions for the first time.
• During the post-war period, organisations like the General Agreement for Tariffs and Trade (which
later became the World Trade Organization) helped reduce tariffs.
• International trade is the result of specialisation in production.
• It benefits the world economy if different countries practise specialisation and division of labour in
the production of commodities or provision of services.
• Each kind of specialisation can give rise to trade.
• International trade is based on the principles of comparative advantage, complementarity, and
transferability of goods and services and should, in principle, be mutually beneficial to the trading
partners.
• In modern times, trade is the basis of the world’s economic organisation and is related to nations' foreign
policies.

Basis of International Trade

• The world’s national resources are unevenly distributed because of differences in their physical
makeup, i.e. geology, relief soil and climate.
• Hence, to obtain the resources needed, countries participate in international trade.
Geological structure

• It determines the mineral resource base.

• Topographical differences ensure the diversity of crops and animals raised.
• Lowlands have greater agricultural potential.
• Mountains attract tourists and promote tourism.

Mineral resources

• They are unevenly distributed the world over.

• The availability of mineral resources provides the basis for industrial development.

Climate

• It influences the type of flora and fauna that can survive in a given region.
• It also ensures diversity in the range of various products, e.g. wool production can take place in cold
regions, and bananas, rubber, and cocoa can grow in tropical regions.

Population factors

• The size, distribution and diversity of people between countries affect the type and volume of goods
traded.

Cultural factors

• Distinctive forms of art and craft develop in certain cultures and are valued worldwide; for example,
China produces the finest porcelains and brocades.
• Carpets of Iran are famous, while North African leatherwork and Indonesian batik cloth are prized
handicrafts.

Size of population

• Densely populated countries have large volumes of internal trade but little external trade because most
of the agricultural and industrial production is consumed in the local markets.
• The standard of living of the population determines the demand for better-quality imported products
because, with a low standard of living, only a few people can afford to buy costly imported goods.

Stage of economic development

• At different stages of countries' economic development, the nature of items traded changes.
• In agriculturally important countries, agro products are exchanged for manufactured goods, whereas
industrialised nations export machinery and finished products and import food grains and other raw
materials.

Extent of foreign investment

• Foreign investment can boost trade in developing countries that lack the capital required for the
development of mining, oil drilling, heavy engineering, lumbering, and plantation agriculture.
• By developing such capital-intensive industries in developing countries, the industrial nations ensure
the import of foodstuff and minerals and create markets for their finished products.
• This entire cycle steps up the volume of trade between nations.

Transport

• In olden times, the lack of adequate and efficient means of transport restricted trade to local areas.
• Only high-value items, e.g. gems, silk and spices, were traded over long distances.
• With expansions of rail, ocean and air transport and better means of refrigeration and preservation,
trade has experienced spatial expansion.

Important Aspects of International Trade

• Important aspects of international trade are volume, sectoral composition and direction of trade.

Volume of Trade
• The actual tonnage of goods traded makes up the volume.
• However, services traded cannot be measured in tonnage.
• Therefore, the total value of goods and services traded is considered to be the volume of trade.
• The total volume of world trade has been steadily rising over the past decades.

Composition of Trade
• The nature of goods and services imported and exported by countries has undergone changes during
the last century.
• Trade of primary products was dominant at the beginning of the last century.
• Later, manufactured goods gained prominence, and currently, though the manufacturing sector
commands the bulk of the global trade, the service sector, which includes travel, transportation and
other commercial services, has been showing an upward trend.
• The volume of imports and exports of the world merchandise has been growing consistently over the
years.
• Manufactured goods contributed to the bulk of world merchandise exports from 2005 to 2015.
• Fuels, mining goods, and agricultural goods are also important contributors to merchandise exports.
• The share of continents in the world merchandise trade has changed, as Europe’s contribution is
declining while the contribution of Asian countries is growing.

Direction of Trade
• Historically, the developing countries of the present used to export valuable goods and artefacts, etc.,
which were exported to European countries.
• During the nineteenth century, there was a reversal in trade direction.
• European countries started exporting manufactured goods for the exchange of foodstuffs and raw
materials from their colonies.
• Europe and the U.S.A. emerged as major trade partners worldwide and were leaders in the trade of
manufactured goods.
• Japan at that time was also the third important trading country.
• The world trade pattern underwent a drastic change during the second half of the twentieth century.
• Europe lost its colonies while India, China and other developing countries started competing with
developed countries. The nature of the goods traded has also changed.

Balance of Trade

• Balance of trade records the volume of goods and services imported as well as exported by a country
to other countries.
• If the value of imports is more than the value of a country’s exports, the country has a negative or
unfavourable balance of trade.
• If the value of exports is more than the value of imports, then the country has a positive or favourable
balance of trade.
• Balance of trade and balance of payments have serious implications for a country’s economy.
• A negative balance would mean that the country spends more on buying goods than it can earn by
selling its goods. This would ultimately exhaust the country's financial reserves.

India’s Foreign Trade (Value in Rs. Crores)

Year Exports Imports Trade Balance
2004-05 3,75,340 5,01,065 -1,25,725
2009-10 8,45,534 13,63,736 -5,18,202
2013-14 19,05,011 27,15,434 -8,10,423
2016-17 18,52,340 25,77,422 -7,25,082
2021-22 71,52,000 78,44,000 -6,92,000
2022-23 66,14,000 72,18,000 -6,04,000

Types of International Trade

• International trade may be categorised into two types:

Bilateral trade
• Two countries do bilateral trade with each other.
• They enter into an agreement to trade specified commodities amongst them.
• For example, country A may agree to trade some raw material with agreement to purchase some other
specified item to country B or vice versa.
Multi-lateral trade
• As the term suggests, multi-lateral trade is conducted with many trading countries.
• The same country can trade with a number of other countries.
• The country may also grant the status of the “Most Favoured Nation” (MFN) to some of the trading
partners.

Case for Free Trade

• The act of opening up economies for trading is known as free trade or trade liberalisation.
• This is done by bringing down trade barriers like tariffs.
• Trade liberalisation allows goods and services from everywhere to compete with domestic products.
• Globalisation, along with free trade, can adversely affect the economies of developing countries by
imposing conditions that are unfavourable and not ensuring an equal playing field.
• With the development of transport and communication systems, goods and services can travel faster
and farther than ever before.
• However, free trade should allow rich countries to enter the markets and developed countries to keep
their markets protected from foreign products.
• Countries also need to be cautious about dumped goods as, along with free trade, dumped goods of
cheaper prices can harm domestic producers.
 The practice of selling a commodity in two countries at a price that differs for reasons not related
to costs is called dumping.

World Trade Organisation

• In 1948, to liberalise the world from high customs tariffs and various other types of restrictions, the
General Agreement for Tariffs and Trade (GATT) was formed by some countries.
• In 1994, the member countries decided to set up a permanent institution to promote free and fair trade,
and the GATT was transformed into the WTO in 1995.
• WTO is the only international organisation dealing with the global rules of trade between nations.
• It sets the rules for the global trading system and resolves disputes between its member nations.
• WTO also covers trade in services, such as telecommunication and banking, and other issues, such as
intellectual rights.
• The WTO has, however, been criticised and opposed by those who are worried about the effects of free
trade and economic globalisation.
• It is argued that free trade does not make ordinary people’s lives more prosperous.
• It is widening the gulf between rich and poor by making rich countries richer.
• This is because the influential nations in the WTO focus on their commercial interests.
• Moreover, many developed countries have not fully opened their markets to products from developing
countries.
• It is also argued that issues of health, worker’s rights, child labour and environment are ignored.

Regional Trade Blocs

• Regional Trade Blocs have come up to encourage trade between countries with geographical proximity,
similarity and complementarities in trading items and to curb restrictions on trade.
• Over 120 regional trade blocs generate more than 52 per cent of the world trade.
• These trading blocs developed as a response to the failure of global organisations to speed up intra-
regional trade.
• Though these regional blocs remove trade tariffs within the member nations and encourage free trade,
in the future, it could become increasingly difficult for free trade to occur between different trading
blocs.
Regional Head Member Origin Commodities Other Areas
Blocs Quarter nations of
Cooperation
ASEAN Jakarta, Brunei Aug, 1967 Agro products, Accelerate
(Association of Indonesia Darussalam, rubber, palm oil, economic
South East Asian Cambodia, rice, copra, growth,
Nations) Indonesia, Laos, coffee, minerals - cultural
Malaysia, copper, coal, development,
Myanmar, nickel and peace and
Philippines, tungsten. Energy regional
Singapore, - petroleum and stability
Thailand and natural gas and
Vietnam Software
products
CIS Minsk, Armenia, December, Crude oil, natural Integration
(Commonwealth Belarus Azerbaijan, 1991 gas, gold, cotton, and
of Independent Belarus, Georgia, fibre, aluminium cooperation
States) Kazakhstan, on matters of
Kyrgyzstan, economics,
Moldova, Russia, defence and
Tajikistan, foreign policy
Turkmenistan,
Ukraine and
Uzbekistan.

EU Brussels, Austria, Belgium, EEC- Agro products, Single market

(European Belgium Bulgaria, Croatia, March 1957; minerals, with single
Union) Cyprus, Czech EU – Nov, chemicals, wood, currency
Republic, 1993 paper, transport
Denmark, Estonia, vehicles, optical
Finland, France, instruments,
Germany, Greece, clocks - works of
Hungary, Ireland, art, antiques
Italy, Latvia,
Lithuania,
Luxembourg,
Malta, Poland,
Portugal, Romania,
Slovakia, Slovenia,
Spain, Sweden,
Netherlands and
United Kingdom
LALA Montevideo, Argentina, Bolivia, 1994
(Latin American Uruguay Brazil, Columbia,
Integration Ecuador, Mexico,
Association) Paraguay, Peru,
Uruguay and
Venezuela
 NAFTA U.S.A., Canada and 1949 Agro products,
(North Mexico motor vehicles,
American Free automotive
Trade parts,
Association) computers,
textiles
OPEC Vienna, Algeria, Indonesia, Crude petroleum Coordinate
(Organisation of Austria Iran, Iraq, Kuwait, and unify
Petroleum Libya, Nigeria, petroleum
Exporting Qatar, Saudi policies.
Countries) Arabia, U.A.E. and
Venezuela

SAFTA (South Bangladesh, Jan-2006 Reduce tariffs

Asian Free Trade Maldives, Bhutan, on inter-
Agreement) Nepal, India, regional
Pakistan and Sri trade
Lanka

Concerns Related to International Trade

• Undertaking international trade is mutually beneficial to nations if it leads to regional specialisation, a

higher level of production, a better standard of living, worldwide availability of goods and services,
equalisation of prices and wages, and diffusion of knowledge and culture.
• International trade can prove to be detrimental to nations if it leads to dependence on other countries,
uneven levels of development, exploitation, and commercial rivalry, leading to wars.
• As countries compete to trade more, production and the use of natural resources spiral up, and
resources get used up faster than they can be replenished.
• As a result, marine life is also depleting fast, forests are being cut down, and river basins are being sold
off to private drinking water companies.
• Multinational corporations trading in oil, gas, mining, and pharmaceuticals keep expanding their
operations at all costs, creating more pollution (which does not follow the norms of sustainable
development).

Gateways of International Trade

Ports
• The chief gateways of the world of international trade are the harbours and ports.
• Cargoes and travellers pass from one part of the world to another through these ports.
• The ports provide facilities of docking, loading, unloading and the storage facilities for cargo.
• In order to provide these facilities, the port authorities make arrangements for maintaining navigable
channels, arranging tugs and barges, and providing labour and managerial services.
• The importance of a port is judged by the size of cargo and the number of ships handled.
• The quantity of cargo handled by a port is an indicator of the level of development of its hinterland.
• San Francisco Bay is the largest land-locked harbour in the world.
• Generally, ports are classified according to the types of traffic which they handle.

Types of port according to cargo handled

1. Industrial Ports: These ports specialise in bulk cargo-like grain, sugar, ore, oil, chemicals and similar
materials.
2. Commercial Ports: These ports handle general cargo-packaged products and manufactured good.
These ports also handle passenger traffic.
3. Comprehensive Ports: Such ports handle bulk and general cargo in large volumes.
• Most of the world’s great ports are classified as comprehensive ports.

Types of port on the basis of location

Inland Ports

• These ports are located away from the seacoast.

• They are linked to the sea through a river or a canal.
• Such ports are accessible to flat bottom ships or barges.
• For example, Manchester is linked with a canal; Memphis is located on the river Mississippi; Rhine has
several ports like Mannheim and Duisburg; and Kolkata is located on the river Hooghly, a branch of
the river Ganga.

Out Ports

• These are deep water ports built away from the actual ports.
• These serve the parent ports by receiving those ships which are unable to approach them due to their
large size. Classic combination, for example, is Athens and its out port Piraeus in Greece.

Types of port on the basis of specialised functions

Oil Ports

• These ports deal in the processing and shipping of oil.

• Some of these are tanker ports and some are refinery ports.
• Maracaibo in Venezuela, Esskhira in Tunisia, Tripoli in Lebanon are tanker ports.
• Abadan on the Gulf of Persia is a refinery port

Ports of Call
• These are the ports which originally developed as calling points on main sea routes where ships used to
anchor for refuelling, watering and taking food items.
• Later on, they developed into commercial ports.
• Aden, Honolulu and Singapore are good examples.

Packet Station

• These are also known as ferry ports.

• These packet stations are exclusively concerned with the transportation of passengers and mail across
water bodies covering short distances.
• These stations occur in pairs located in such a way that they face each other across the water body, e.g.
Dover in England and Calais in France across the English Channel.

Entrepot Ports

• These are collection centres where the goods are brought from different countries for export.
• Singapore is an entrepot for Asia.
• Rotterdam for Europe, and Copenhagen for the Baltic region

Naval Ports

• These are ports which have only strategic importance.

• These ports serve warships and have repair workshops for them.
• Kochi and Karwar are examples of such ports in India.

India’s International Trade

• India’s contribution in the world trade is only one per cent of the total volume.
• In 1950-51, India’s external trade was worth Rs.1,214 crore, which rose to USD 800 billion in 2023.
• There are numerous reasons for this sharp rise in overseas trade, such as the momentum picked up by
the manufacturing sectors, the liberal policies of the government and the diversification of markets.
• Though there has been an increase in the total volume of import and export, the value of import
continued to be higher than that of exports.
• India’s overall exports (Merchandise and Services combined) in March 2023 is estimated to be USD
66.14 Billion.

Changing Pattern of the Composition of India’ Exports

• India's total exports reached a record high of USD 776 billion in 2022-23, nearly double the levels seen
in 2013-14.
• The export landscape in India has diversified, with merchandise exports accounting for almost USD 450
billion and services contributing around USD 326 billion in 2022-23.
• Agricultural exports have also surged to nearly USD 53 billion, showcasing the broadening export
base.
• India's strategic focus on signing Free Trade Agreements (FTAs) with countries like ASEAN, SAARC, Japan,
South Korea, and others has expanded market access and created new trade opportunities.
• The Aatmanirbhar Bharat initiative has played a pivotal role in boosting India's export
competitiveness.
• Merchandise exports have been a significant contributor to India's export growth. The diversification
of merchandise exports across sectors like agriculture, electronics, and manufacturing has been
instrumental in driving overall export growth.
• India's services sector, particularly IT and software services, has been a major driver of export growth.
India has emerged as a global leader in software services. The services sector has witnessed
substantial growth, with India's share of the world's service exports increasing from 0.6% to 2.7%
between 1995 and 2008.
• The Districts as Export Hubs Initiative in India aims to identify products and services with export
potential in various districts and facilitate their export through strategic interventions. This initiative
plays a crucial role in boosting India's export potential across different sectors by leveraging the
strengths and resources available at the district level.
• For example, products like GI-tagged Jalgaon Banana and Bhagalpuri Zardalu Mango have been
successfully exported to countries like the UAE and the UK.
• Among the States, Gujarat (33.29%), Maharashtra (16.13%) and Tamil Nadu (8.93%) have registered
the largest share in the exports for last two years.
• The top five destinations of India's exports during 2022-23 are:
Destination Percentage Share
of India's Total
Exports
USA 17.46%
UAE (United Arab Emirates) 7.03%
Netherlands 4.53%
China PRP (People's Republic of China) 3.33%
Singapore 2.69%
• The top ten principal commodities of export during 2022-23 which constitutes 49.05% of India’s total
export are:
Principal Commodity Percentage Share of India's Major Destinations
Total Export
Petroleum Products 21.78% Netherlands (11.56%), UAE (8.2%),
USA (6.2%)
Pearl, Precious, Semiprecious 5.71% USA (36.52%), Hong Kong (23.68%),
Stones Belgium (10.23%)
Drug Formulations, Biological 4.3% USA (34.72%), Belgium (3.23%), South
Africa (2.98%)
 Iron And Steel 2.94% Italy (12.49%), UAE (8.21%), USA
(7.14%)
Gold And Other Precious 2.82% USA (26.67%), UAE (24.96%), Hong
Metal Jewellery Kong (24.09%)

Changing Patterns of the Composition of India’s Import

• India faced serious food shortage during 1950s and 1960s.
• The major item of import at that time was food grain, capital goods, machinery and equipment.
• The balance of payment was adverse as imports were more than export in spite of all the efforts of
import substitution.
• After 1970s, food grain import was discontinued due to the success of Green revolution, but the energy
crisis of 1973 pushed the prices of petroleum, and import budget was also pushed up.
• Food grain import was replaced by fertilisers and petroleum.
• Machine and equipment, special steel, edible oil and chemicals largely make the import basket.
• There is a steep rise in the import of petroleum products.
• It is used not only as a fuel but also as an industrial raw material.
• It indicates the tempo of rising industrialisation and better standard of living.
• Sporadic price rise in the international market is another reason for the same.
• Import of capital goods maintained a steady increase due to rising demand in the export-oriented
industrial and domestic sectors.
• Non-electrical machinery, transport equipment, manufacturers of metals and machine tools were the
main items of capital goods.
• Import of food and allied products declined with a fall in imports of edible oils.
• Other major items of India’s import include pearls and semi-precious stones, gold and silver,
metalliferous ores and metal scrap, non-ferrous metals, electronic goods, etc.

Petroleum Crude
• During 2022-23, India's most significant import was Petroleum crude. Iraq and Saudi Arabia are the
major import source of petroleum crude. Top 10 countries from which this product was imported
accounted for 88.55% of the total import share.

Top Import Commodities (2022-23)

Commodity Percentage Share Major Sources
Petroleum: Crude 22.89% Iraq (20.53%), Russia (18.3%), Saudi
Arabia (17.85%)
Coal, Coke And Briquettes 7.05% Australia (29.57%), Indonesia (29.5%),
Etc., Russia (9.43%)
Petroleum Products 6.60% Qatar (26.73%), UAE (21.53%), Saudi
Arabia (8.82%)
 Gold 4.83% Switzerland (35.69%), South Africa
(10.38%), UAE (8.25%)
Pearl, Precious, Semiprecious 4.22% UAE (32.85%), USA (18.23%), Hong
Stones Kong (16.09%)

Source: DGFT.gov.in

Import from Sources

• During 2022-23, the highest import of US$ 90,721 million was recorded from China PRP which
constitutes the largest share of 13.83% in India’s total import.
• The top five import sources are:
Source Percentage Share
China PRP 13.83%
UAE 7.45%
USA 7.14%
Russia 6.33%
Saudi Arabia 5.89%

Geographical Factors Influencing India’s International Trade

Maritime Trade and Coastal Advantage

• India's extensive coastline of over 7,500 kilometers provides a natural advantage in maritime trade.
• Major ports along the western and eastern coasts serve as vital gateways for international trade.
• Ports on the western coast historically facilitate trade with the Middle East, Africa, and Europe, while
those on the eastern coast engage with Southeast Asia, East Asia, and the Asia-Pacific region.
• This strategic location makes India as a Gateway to Asia.
Land Borders and Regional Trade
• India shares land borders with seven countries, influencing regional trade dynamics.
• Despite occasional tensions, India actively seeks stronger economic ties with neighbours like
Bangladesh, Nepal, and Bhutan.
• Proximity to Southeast Asia and Central Asia enables overland trade and connectivity projects like the
INSTC and BBIN initiative.

Hinterland Connectivity and Inland Trade

• Extensive rail, road, waterway, and air networks facilitate movement of goods from inland regions to
coastal ports and airports.
• Development of freight corridors, logistics parks, and container depots improves trade efficiency.
• India serves as a transit hub for landlocked regions, enhancing regional trade and commerce.

Resource Endowments and Trade Patterns

• Diverse geographical features and resource endowments influence trade patterns.
• Rich agricultural resources support exports of rice, spices, and marine products.
• Mineral resources contribute to export of mineral and metal products, while fuelling import of raw
materials and energy resources.
• Geographical distribution of industrial clusters shapes trade patterns, with regions like Gujarat,
Maharashtra, and Tamil Nadu emerging as major export centers.

Direction of Trade

• India has trade relations with most of the countries and major trading blocks of the world.
• India aims to double its share in the international trade within the next five years.
• It has already started adopting suitable measures such as import liberalisation, reduction in import
duties, delicensing and change from process to product patents.
• Most of India’s foreign trade is carried through sea and air routes.
• However, a small portion is also carried through land route to neighbouring countries like Nepal, Bhutan,
Bangladesh and Pakistan.

Sea Ports as Gateways of International Trade

• An interesting fact about ports in India is that its west coast has more ports than its east coast.
 Coromandel coast (Tamil Nadu)  Coastline of emergence (shallow continental shelf)
 Malabar coast (Kerala Coast)  Coastline of emergence (shallow continental shelf)
 Konkan coast (Maharashtra and Goa Coast)  Coastline of submergence (deep ports)
 West flowing rivers form estuaries whereas east flowing rivers form deltas (accumulation of
sediments).
 Estuaries are ideal for port construction. Building and maintaining the ports is easy and cost
effective.
 The plants and sand bars in estuaries help prevent shoreline erosion.
• Though ports have been in use since ancient times, the emergence of ports as gateways of international
trade became important after the coming of the European traders and colonisation of the country.
• This led to the variation in the size and quality of ports.
• There are some ports which have very vast area of influence and some have limited area of influence.
• At present, India has 12 major ports and 200 minor or intermediate ports.
• In case of the major ports, the central government decides the policy and plays regulatory functions.
• The minor ports are those whose policy and functions are regulated by state governments.
• The major ports handle larger share of the total traffic.
• The British used the ports as suction points of the resources from their hinterlands.
• The extension of railways towards the interior facilitated the linking of the local markets to regional
markets, regional markets to national markets and national markets to the international markets.
• The partition of the country snatched away two very important ports, i.e., Karachi port went to Pakistan
and Chittagong port to the Bangladesh.
• To compensate the losses, many new ports, like the Kandla in the west and the Diamond Harbour
near Kolkata on river Hugli in the east were developed.
• Despite this major setback, Indian ports continued to grow after the Independence.
• Today, Indian ports are handling large volumes of domestic, as well as, overseas trade. Most of the ports
are equipped with modern infrastructure.
• Previously, the development and modernisation were the responsibility of the government agencies but
considering the increase in function and need to bring these ports at par with the international ports,
private entrepreneurs have been invited for the modernisation of ports in India.
• The capacity of Indian ports increased from 20 million tonnes of cargo handling in 1951 to more than
837 million tonnes in 2016.

Some of the Indian ports, along with their hinterlands

Major Ports Hinterlands
Kandla Port Jammu & Kashmir, Punjab, Himachal Pradesh, Haryana, Rajasthan, Delhi, Gujarat,
parts of Madhya Pradesh, Uttaranchal, and Uttar Pradesh
Mumbai Port Madhya Pradesh, Maharashtra, Gujarat, Uttar Pradesh, parts of Rajasthan
Jawaharlal Nehru Maharashtra, Madhya Pradesh, Gujarat, Rajasthan, Delhi
Port
Marmagao Port Karnataka, Goa, Southern Maharashtra
New Mangalore Karnataka, parts of Kerala
Port
Kochi Port Kerala, southern Karnataka, south-western Tamil Nadu
Kolkata Port Uttar Pradesh, Bihar, Jharkhand, West Bengal, Sikkim, North-eastern states, Nepal,
Bhutan
Paradip Port Odisha, Chhattisgarh, Jharkhand
 Visakhapatnam Andhra Pradesh, Telangana
Port
Tuticorin Port Tirupur, Coimbatore, Erode, and Karur in Tamil Nadu, parts of Kerala
Chennai Port Tamil Nadu, Kerala, parts of Karnataka, Andhra Pradesh
Ennore Port Parts of Tamil Nadu

Airports

• Air transport plays an important role in the international trade. It has the advantage of taking the least
time for carriage and handling high-value or perishable goods over long distances.
• It is very costly and unsuitable for carrying heavy and bulky commodities. This ultimately reduces the
participation of this sector in international trade as compared to the oceanic routes.
• There were 25 major airports functioning in the country (Annual Report 2016-17).
• They are Ahmedabad, Bengaluru, Chennai, Delhi, Goa, Guwahati, Hyderabad, Kolkata, Mumbai,
Thiruvananthapuram, Srinagar, Jaipur, Calicut, Nagpur, Coimbatore, Cochin, Lucknow, Pune, Chandigarh,
Mangaluru, Vishakhapatnam, Indore, Patna, Bhubaneswar and Kannur.

Questions

• Why does India import edible oil in spite of being an agriculturally rich country?
• Most of the world’s great ports are classified as: (a) Naval Ports (b) Oil Ports (c) Comprehensive Ports (d)
Industrial Ports
• Which one of the following continents has the maximum flow of global trade? (a) Asia (b) North America
(c) Europe (d) Africa
• Which one of the following South American nation, is a part of OPEC? (a) Brazil (b) Chile (c) Venezuela
(d) Peru
• In which of the following trade blocs, is India an associate member? (a) SAFTA (b) OECD (c) ASEAN (d)
OPEC
• Trade between two countries is termed as (a) Internal trade (b) External trade (c) International trade (d)
Local trade
• Which one of the following is a land locked harbour? (a) Vishakhapatnam (b) Mumbai (c) Ennor (d)
Haldia
• Most of India’s foreign trade is carried through (a) Land and sea (b) Land and air (c) Sea and air (d) Sea