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Unit 8: Foreign Trade of India

can meet minimum safety and quality standards. To accomplish this, developing countries Notes
need assistance not only with technology, but also with training workers to use technology
and conform to world food-handling, sanitation, and personal hygiene standards. This
normally requires a cooperative effort between a country’s industry and government and
its external partners. The Bangladeshi shrimp export case demonstrates that these efforts
can be successful. It shows that developing countries, with careful guidance and focused
effort, can successfully face the challenges of the global market.
Questions
1. What are the challenges faced by the shrimp export industry?
2. What do you infer from this study?

Source: http://www.ifpri.org/sites/default/files/publications/focus10_09.pdf
Self Assessment

Fill in the blanks:
5. The objective of Exim Policy is to …………………… in exports from India and import in
India.

6. …………………… is to simplify continual growth in exports from India and import in
India.

8.7 Summary

As India is a growing country, the composition of India’s foreign trade has undergone a
positive change.
It is a remarkable achievement that India has transformed itself from a predominantly
primary goods exporting country into a non-primary goods exporting country. Under
import too India’s dependence on food grains and capital goods has declined.
The trend indicates structural transformation of Indian economy. The import and export
policies had played an important role in the development of Indian Economy.

8.8 Keywords

Industrialization: The process in which a society or country (or world) transforms itself from a
primarily agricultural society into one based on the manufacturing of goods and services.
Production: The action of making or manufacturing from components or raw materials, or the
process of being so manufactured.

Productivity: Productivity is the ratio of output to inputs in production.
8.9 Review Questions

1. Explain the foreign trade policy of India.
2. What are the compositions of the foreign trade policy of India?
3. Explain briefly the India’s balance of payment on current account.

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