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Dilfraz Singh, Lovely Professional University
Unit 8: Foreign Trade of India

Unit 8: Foreign Trade of India Notes

CONTENTS
Objectives
Introduction

8.1 Foreign Trade
8.1.1 Three Types of Foreign Trade
8.2 Need and Importance of Foreign Trade

8.3 Introduction to India’s Foreign Trade
8.4 Composition of India’s Exports
8.5 Composition of India’s Imports
8.6 Balance of Payment on Current Account
8.6.1 Import and Export Policy

8.7 Summary
8.8 Keywords
8.9 Review Questions

8.10 Further Readings

Objectives

After studying this unit, you will be able to:

Discuss about the foreign trade
Describe the need and importance of foreign trade

Explain the introduction to India's foreign trade
Recognise the composition of India's exports
Evaluate the composition of India's imports and balance of payment on current account

Introduction

In this unit, you will learn about the foreign trade, the need and importance of foreign trade and
introduction to India’s foreign trade. You will also study the composition of India’s exports,
composition of India’s imports and balance of payment on current account.
Foreign trade has got a significant place in the economic progress of a country. The significance
of foreign trade for economic development of country is stated below:
Foreign trade supports to yield those supplies which have a relatively inexpensive t than
others. As a result of this is the cost of production in producing a commodity is reduced. If
all the countries accept this process to yield these goods in which they have less relative
cost, it will lead to handiness of goods at a lower price.

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