The essence of this chapter for last-minute revision: definitions, the key trade and port tables, and the named facts examiners ask most. The full notes, with the complete explanation, are available separately.
1 Four definitions to learn by heart
International trade is the exchange of goods and services between two or more countries, driven by the fact that no country is fully self-sufficient in everything it needs.
The trade balance is the difference between the value of a country’s exports and its imports. If imports are worth more than exports, the trade balance is negative, called a trade deficit.
Import substitution means producing goods at home that a country would otherwise have to import, to reduce dependence on foreign supplies and save foreign exchange.
A hinterland is the inland area a port serves for export collection and import distribution. Its boundary is not fixed over space and can overlap with a neighbouring port’s hinterland. A harbour is a sheltered stretch of water giving safe anchorage (natural or artificial); a port is a harbour developed with berths, cranes and warehousing for loading and unloading cargo.
2 Growth and composition of trade
| Year | Exports (₹ cr) | Imports (₹ cr) | Trade Balance (₹ cr) |
|---|---|---|---|
| 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 | 31,47,021 | 45,72,775 | −14,25,753 |
Table 8.1, India’s Foreign Trade. Imports have exceeded exports in every year shown.
| Export commodity group | 2015-16 | 2021-22 | Trend |
|---|---|---|---|
| Agriculture and allied products | 12.6% | 11.9% | Falling |
| Ore and Minerals | 1.6% | 2.0% | Roughly constant |
| Manufactured goods | 72.9% | 67.8% | Falling |
| Crude and petroleum products | 11.9% | 16.4% | Rising |
| Other commodities | 1.1% | 1.9% | Rising |
Table 8.2 (Percentage share in exports). Cashew (traditional item) declining; floriculture, fresh fruits, marine products, sugar rising.
- Table 8.4 (2021-22): Fuel (Coal, POL) 31.6% (largest named group; “Others” 38.5%); Capital goods 10.1% (falling); Fertilisers 2.3%; Food and allied 4.4%
- Table 8.5 (2021-22, ₹ crore): Petroleum/oil/lubricants 12,07,803 (largest single item); Non-ferrous metals 4,99,766; Chemical products 3,08,882; Edible oils 1,41,532
- Other major imports: pearls, precious and semi-precious stones, gold and silver, non-ferrous metals
- Why petroleum imports rise (Table 8.4): fuel and industrial raw material; tempo of rising industrialisation and better standard of living; sporadic price rise in the international market
3 Direction of trade and trade policy
| Region | Imports 2016-17 (₹ cr) | Imports 2021-22 (₹ cr) |
|---|---|---|
| Europe | 4,03,972 | 6,40,577 |
| Africa | 1,93,327 | 3,68,156 |
| North America | 1,95,332 | 3,78,041 |
| Latin America | 1,15,762 | 1,61,995 |
| Asia and ASEAN | 15,44,520 | 29,18,577 |
Table 8.6. Asia and ASEAN is by far India’s largest source of imports.
- Goal: double India’s share in international trade within the next five years
- Measures started: import liberalisation, reduction in import duties, delicensing, change from process patents to product patents
- Most trade moves by sea and air; a small share by land to Nepal, Bhutan, Bangladesh and Pakistan
4 Sea ports as gateways
Partition (1947) cost India two important ports: Karachi (to Pakistan) and Chittagong (to the then East Pakistan, now Bangladesh). Kandla (west) and Diamond Harbour near Kolkata on the river Hugli (east) were developed to compensate. India’s west coast has more ports than the east coast.
| Port | Coast | One defining fact | Hinterland |
|---|---|---|---|
| Deendayal (Kandla) | West | Head of Gulf of Kuchchh; petroleum, fertiliser | Western & north-western India |
| Mumbai | West | Natural harbour, biggest port, 54 berths | M.P., Maharashtra, Gujarat, U.P., Rajasthan (parts) |
| Jawaharlal Nehru (Nhava Sheva) | West | Satellite of Mumbai; largest container port | Same as Mumbai |
| Mormugao | West | Remodelled 1961 for iron-ore exports to Japan | Karnataka, Goa, S. Maharashtra |
| New Mangalore | West | Iron-ore, iron-concentrate exports | Karnataka |
| Cochin | West | “Queen of the Arabian Sea”; natural harbour | Kerala, S. Karnataka, SW Tamil Nadu |
| Kolkata (Shyama Prasad Mookerjee) | East | 128 km inland on Hugli; silt problem | U.P., Bihar, Jharkhand, W.B., Sikkim, NE states, Nepal, Bhutan |
| Haldia | East | Kolkata’s satellite port, 105 km downstream; reduces its congestion | Same as Kolkata |
| Paradwip | East | Deepest harbour; large-scale iron-ore export | Odisha, Chhattisgarh, Jharkhand |
| Visakhapatnam | East | Land-locked harbour, channel cut through rock/sand | Andhra Pradesh, Telangana |
| Chennai | East | Artificial harbour, built 1859 | Tamil Nadu, Puducherry |
| Kamarajar (Ennore) | East | 25 km north of Chennai, relieves it | Tamil Nadu |
| V.O. Chidambaranar (Tuticorin) | East | Also relieves Chennai; varied cargo | Tamil Nadu |
The book describes Haldia separately although it is Kolkata’s satellite port, so 13 names appear for the 12 major ports.
5 Airports and air trade
- Advantage: least time for high-value/perishable goods over long distances
- Disadvantage: very costly, unsuitable for heavy/bulky goods → smaller share than sea routes
- 25 major airports functioning (Annual Report 2016-17)
- UDAN scheme (since 2017): 73 unserved/underserved airports operationalised, including 9 heliports and 2 water aerodromes (Source: PIB, Ministry of Civil Aviation, 2023)
6 Map work (CBSE 2026-27)
| Locate and label | Places (State) |
|---|---|
| 10 seaports | Kandla (Gujarat), Mumbai (Maharashtra), Marmagao (Goa), Mangalore (Karnataka), Kochi (Kerala), Tuticorin (Tamil Nadu), Chennai (Tamil Nadu), Visakhapatnam (Andhra Pradesh), Paradwip (Odisha), Haldia (West Bengal) |
| 10 international airports | Ahmedabad (Gujarat), Mumbai (Maharashtra), Bengaluru (Karnataka), Chennai (Tamil Nadu), Kolkata (West Bengal), Guwahati (Assam), Delhi, Amritsar (Punjab), Thiruvananthapuram (Kerala), Hyderabad (Telangana) |
Mark each with a dot and write the name beside it. The full notes carry both maps.
- India’s world trade share ~1%; trade value ₹1,214 cr (1950-51) → ₹77,19,796 cr (2020-21); trade balance always negative
- Exports 2021-22: Manufactured goods 67.8% (largest); crude petroleum 16.4% and other commodities 1.9% rising; agriculture 11.9% and manufacturing share both falling; ore/minerals ~constant at 2.0%
- Imports 2021-22: Fuel (coal, POL) 31.6% (largest named group; “Others” 38.5%); petroleum imports rising (fuel and industrial raw material, rising industrialisation and living standards, sporadic international price rise); petroleum/oil/lubricants ₹12,07,803 cr the single biggest import item; capital goods declining
- Direction: Asia and ASEAN India’s largest import source (₹29,18,577 cr, 2021-22); goal to double trade share in 5 years
- Ports: 12 major (Centre) + 200 minor/intermediate (states); west coast has more ports than east; capacity 20 → 837+ million tonnes (1951 → 2016); Karachi and Chittagong lost at Partition; Kandla and Diamond Harbour compensated
- Air: 25 major airports (2016-17); UDAN since 2017 → 73 airports (incl. 9 heliports, 2 water aerodromes)