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Growth of Foreign Trade – The Upward Curve! 📈

Fact: In 1950, India's share in world trade was 2%. Fact: In 1990, it dropped to 0.5%. Fact: In 2023, it is back to around 2.5%.

What happened? Let's analyze the trends.

Global Trends 🌍

  1. Volume Explosion: Trade has grown faster than GDP.
  2. Service Sector Boom: Earlier, trade was only "Goods" (Coal, Steel). Now, "Services" (Software, Banking) rule.
  3. Rise of Asia: China and India are the new engines of growth.

Indian Trends 🇮🇳

Phase 1 (1950-1990)"Stagnation. Closed Economy. Export Pessimism."
↓
Phase 2 (1991-2000)"Recovery. Liberalization. Rise of IT."
↓
Phase 3 (2000-Present)"Diversification. Petroleum Exports. Service Superpower."

Composition of Trade (What we buy/sell) 📦

  • Exports:
    • Then: Tea, Jute, Cotton (Raw materials).
    • Now: Petroleum Products (Reliance Jamnagar), Software, Pharmaceuticals, Engineering Goods.
  • Imports:
    • Then: Food grains (PL-480), Machines.
    • Now: Crude Oil (Biggest), Gold, Electronics.

Direction of Trade (Who we trade with) 🧭

  • Then: UK and USA were dominant. USSR was a big partner.
  • Now:
    • USA: Largest export destination.
    • China: Largest source of imports.
    • UAE: Major partner (Oil + Exports).
The Petroleum Paradox

India imports Crude Oil (Raw). Refines it. Exports Petrol/Diesel (Finished). So, Petroleum is our biggest Import AND our biggest Export!

Quiz Time! 🎯

Test Your Knowledge

Question 1 of 5

1. India's largest import item by value is:

Gold
Crude Oil
Electronics
Tea

💡 Final Wisdom: "Trade is not static. It changes with technology. Yesterday we sold Spices. Today we sell Software. Tomorrow we might sell AI!" 🤖

Next up: Significance of Foreign Trade - Why does it matter? 🌟

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