Internationaltrade is any lawful exchange of products and services between nations. At thepoint when a business in one nation exports (sell abroad) product and serviceto consumer in another nation, it is called international trade. internationaltrade also happens when customers in a nation import (buy from abroad) productsand service from a foreign country.
Internationaltrade is important because it enables national markets to give variety of products and services to theirconsumers that they would be not able to provide if they were limited to theproduction of goods and services within their borders.Theconsequence of international trade is that almost any type of good isaccessible on the global market, from resources, for example, oil, water, andsteel to necessities, for example, food, attire, and building materials toluxury products, for example, precious stones and designer clothing. Numerousservices are exchanged globally, for example, legal, accounting, advertisingand banking. Another major consequence of international trade is that the moremanufactures that participate in an industry, the greater the competitionbetween manufactures becomes. greatercompetition brings about morecompetitive costs, which means that buyers have access to a number of low costproductsIn1991, the Indian economy was opened up for globalization under the initiativeof then Prime Minister P. V. Narasimha Rao and Former Finance Minister ManmohanSingh for empowering international trade in India. India is currently the eighth biggest economy on the world interms of nominal GDP.
In2016 India exported $256B, making it the eighteenth biggest exporter in theworld. during the most recent five years the exports of India have decreased atan annualized rate of – 1.585%, from $274B in 2011 to $256B in 2016. The latestexports are driven by Refined Petroleum which represent 9.9% of the aggregateexports of India, followed by Diamonds, which represent 9.3%. Basedon statics from the International Monetary Fund’s World Economic OutlookDatabase, India’s aggregate Gross Domestic Product amounted to $8.
721 trillionas of October 2016. Along these lines, exports represented around 3% ofaggregate Indian economic output. Froma continental point of view, 49.1% of Indian exports by value are conveyed toAsian nations while 19.
5% are sold to European importers. India transportsanother 18.1% to North American clients with 8.7% worth landing in Africa.Thefollowing exports good groups represent to the highest dollar value in Indianglobal shipments during 2016.
Also indicated the percentage share each exportcategory represent in terms of overall exports from India.1. Gems, precious metals:US$43 billion (16.5% of total exports)2.
Mineral fuels includingoil: $27.7 billion (10.6%)3.
Vehicles: $15 billion(5.7%)4. Machinery includingcomputers: $13.6 billion (5.
2%)5. Pharmaceuticals: $13billion (5%)6. Organic chemicals: $11.3billion (4.3%)7. Clothing, accessories(not knit or crochet): $9 billion (3.5%)8. Electrical machinery,equipment: $8.
2 billion (3.1%)9. Knit or crochetclothing, accessories: $7.9 billion (3%)10. Iron, steel: $6.4billion (2.5%)