Q.3 (ii):- Write a note on the changing nature of the international trade in the last fifteen years.
India has trade relations with all the major trading blocks and all geographical regions of the world. Among the commodities of export, whose share has been increasing over the last few years till 2004-05, are agriculture and allied products (2.53%), ores and minerals (9.12%), gems and jewellery (26.75%) and chemical and allied products (24.45%), engineering goods (35.63%) and petroleum products (86.12%).
The commodities imported by India included petroleum and petroleum products (41.87%), pearls and precious stones (29.26%), inorganic chemicals (29.39%), coal, coke and briquettes (94.17%) machinery (12.56%). Bulk imports as a group registered a growth accounting for 39.09% of total imports.
This group includes fertilisers (67.01%), cereals (25.53%), edible oils (7.94%) and newsprint (5.51%)
International trade has undergone a sea of change in the last fifteen years. Exchange of commodities and goods have been superseded by the exchange of information and knowledge. India has emerged as a software giant at international level and it is earning large foreign exchange through the export of Information Technology because of its fast growing Business Process Outsourcing (BPO) sector.