International Trade (Part-B)
International trade is the exchange of capital, goods, and services across international borders or territories. India is a member of the Asia-Pacific Trade Agreement (APTA), the South Asian Association for Regional Cooperation (SAARC) and the World Trade Organization (WTO), the G20, the International Monetary Fund, the World Bank, the Asian Infrastructure Investment Bank, and the BRICS Bank. India’s contribution in the world trade is as low as one per cent of the total volume, yet it plays a significant role in the world economy.
Two types of trade are recognised in India. Domestic trade is carried within the national boundaries. The foreign trade is the exchange of goods at the international level. India has trade links with practically all the countries of the world. There is an exchange of various commodities.
International trade of India has undergone a sea change in the recent years in terms of volume, composition as well as direction. The balance of trade of India is invariably unfavourable.
The ports are the gateways of International trade. Sea ports are very important in India as most of the India’s foreign trade is carried through sea. There are 12 Major ports of India and 185 Minor or intermediate ports in India, through which trade is conducted. India also conducts trade through air transport. It is very costly and unsuitable for carrying heavy and bulky commodities. So the participation of air transport in the international trade as compared to the oceanic routes is very less.