Foreign Trade of India — Economics STD 12 Commerce / Arts — Question

Export means selling of goods and services by home country to another country. Excessive export can have a positive impact on the home country.

(i) Engineering Goods : Engineering goods includes transport equipment, automobiles and auto components, machinery and instruments. India’s top export item is engineering goods accounting for 22.5% in India’s total export in 2014-15 and this share has increased upto 25% in the year 2017-18. India is exporting engineering goods to Sri Lanka, UAE and USA.

(ii) Petroleum Products : India’s refining capacity increased significantly since 2001-02 due to which India turned a net exporter of petroleum refinery products. In the year 2013-14 the share of petroleum products in total export was 20.1% and in the year 2016-17 it declined upto 11.7%.

(iii) Chemicals and chemical products:
It includes drugs (Medicines) and pharmaceuticals. This is one sector where India is highly competitive on both quality and pricing factor. India became global hub for pharma production. India is exporting its chemicals and chemical products to USA, China and Germany. The share of this item was 10.4% in 2014-15.

(iv) Gems and Jewellery: Gems and Jewellery plays an important role in earning the foreign exchange for India. In the year 2014¬15 the share of Gems and Jewellery was 13.3% in India’s total export and it declined upto 5.32% in the year 2018-19.

(v) Textiles and readymade garments :
India’s readymade garments have huge demand in the international market. India is exporting textiles to USA, China and Bangladesh. India is exporting readymade garments to USA, UAE and UK. In the year 2014-15 India’s export of textile and garments was 11.3% of total export of India and it has declined upto 6.3% in the year 2016-17.