Writ your observation on the direction of india's foreign trade - Economics - Introduction

Question

Writ your observation on the direction of india's foreign trade?

Rashmi Lakhmani · Accepted Answer

Dear Student,
Direction of foreign trade means those countries with which India
has trade relations
Direction of Indian foreign trade has changed considerably after
independence and it can be discussed as follows:

Organisation of Petroleum Exporting Countries(OPEC):It includes
countries like Kuwait,Iran, Saudi Arabia, UAE and Indonesia India
was exporting 11% of her total export to these countries in 1989-91
But during thus period our imports have steadily declined from 27
8% to 5 8% and due to domestic production of oil
Eastern Europe: Countries like East Europe that include USSR,
Poland, Romania, Bulgaria, Yugoslavia,East Germany and
Czechoslovakia Our export to these countries was 8% and import was
4% in 1960-61 This trade increased after the treaty with Russia but
then after fragmentation of USSR our trade declined
Organisation of Economic Co-operation and development
countries: Developed countries of the west and Japan are included
in this group Our exports with these countries was nearly 46 6% of
the total exports in 1980-81 Our exports to Japan has decreased but
export to European Union during the said period remained more or
less constant
Developing Countries: Asian countries excluding Japan and OPEC
and Latin American countries and fall in this category In
1980-81,Indian exports were 18 9% and imports 15 7% Asian countries
contribute to 65-70% of trade with India

Thus, it can be concluded that
a) India got new trade partners like USA, Germany, Japan, the OPEC
and the USSR after independence which helped in diversification of
its industries
b)India diversified its exports to match its imports; Earlier UK
was the main country for exports but USA has become the biggest
buyer of Indian goods( including Germany ,Japan and OPEC)
Regards,