International Trade (India: People and Economy), Class 12

What International Trade is about

Weightage: India: People and Economy, Unit IV: Transport, Communication and International Trade carries 7 of the 70 theory marks; this chapter shares them with Transport and Communication.Source: CBSE Geography (029) syllabus 2026-27, course structure

Key concepts

Growth and characteristics of India's foreign trade

NCERT section Introduction; Table 8.1

Characteristics:

• India's share is about one per cent of world trade, but significant.
• Huge growth: Rs 1,214 crore (1950-51) to Rs 77,19,796 crore (2020-21).
• Reasons: momentum in manufacturing, liberal policies, diversification of markets.
• Persistent trade deficit: imports exceed exports. Table 8.1 (Rs crore):

Year	Exports	Imports	Balance
2004-05	3,75,340	5,01,065	-1,25,725
2013-14	19,05,011	27,15,434	-8,10,423
2021-22	31,47,021	45,72,775	-14,25,753

• Policy aim: double India's share of world trade in five years through import liberalisation, reduced import duties, delicensing and process to product patents.
• Most trade goes by sea and air; a small part by land to Nepal, Bhutan, Bangladesh and Pakistan.

Worked example

Mention the characteristics of India's foreign trade. (3 marks)

Try it first, then show the solutionSolution

1. India's share is only about one per cent of world trade, but its trade has grown enormously from Rs 1,214 crore in 1950-51 to over Rs 77 lakh crore in 2020-21.
2. Imports have consistently exceeded exports, giving a negative trade balance (about -Rs 14.26 lakh crore in 2021-22).
3. Its composition and direction have changed, and most trade is carried by sea and air, with a little by land to neighbours.

Answer: Small world share, rapid growth, persistent deficit and changing composition and direction.

Changing composition of exports

NCERT section Changing Pattern of the Composition of India's Exports

Table 8.2 (percentage share in exports):

Commodity	2015-16	2021-22
Agriculture and allied	12.6	11.9
Ore and minerals	1.6	2.0
Manufactured goods	72.9	67.8
Crude and petroleum products	11.9	16.4
Other commodities	1.1	1.9

Trends:

• Shares of agriculture and allied products and manufactured goods have decreased; crude petroleum and products and other commodities have increased; ore and minerals largely constant.
• Traditional items decline due to tough international competition: among farm products, exports of traditional items like cashew fell, while floriculture, fresh fruits, marine products and sugar rose.
• Manufacturing alone was 67.8 per cent of export value (2021-22); engineering goods grew significantly; China and other East Asian countries are major competitors; gems and jewellery form a large share.
• Table 8.3 (2021-22, Rs crore): manufactured goods 21,32,296; mineral fuels and lubricants 5,15,310; agriculture and allied 3,75,742; ores and minerals 63,754.

Worked example

Describe the changing composition of India's exports. (3 marks)

Try it first, then show the solutionSolution

1. Manufactured goods dominate but their share fell from 72.9 per cent (2015-16) to 67.8 per cent (2021-22); engineering goods and gems and jewellery are important.
2. Agriculture's share fell (12.6 to 11.9 per cent) as traditional items like cashew faced competition, though floriculture, fruits, marine products and sugar rose.
3. Crude and petroleum products rose sharply (11.9 to 16.4 per cent); ores and minerals stayed roughly constant.

Answer: Manufactures dominate but are falling in share; petroleum products are rising; traditional farm exports declining.

Changing composition of imports

NCERT section Changing Patterns of the Composition of India's Import

History: in the 1950s-60s India faced food shortage; major imports were foodgrains, capital goods, machinery and equipment; the balance of payments was adverse despite import substitution. After the 1970s, foodgrain imports stopped due to the Green Revolution, but the 1973 energy crisis raised petroleum prices and the import bill; fertilisers and petroleum replaced foodgrains. Machinery and equipment, special steel, edible oil and chemicals make up much of the import basket.

Table 8.4 (percentage of imports):

Group	2015-16	2021-22
Food and allied	5.1	4.4
Fuel (coal, POL)	25.4	31.6
Fertilisers	2.1	2.3
Capital goods	13.0	10.1
Others	38.1	38.5

Trends:

• Petroleum imports rising: used as fuel and industrial raw material, reflecting industrialisation, better living standards and sporadic international price rises.
• Capital goods imports declining steadily; food and allied imports declining.
• Other major imports: pearls, precious and semi-precious stones, gold and silver, non-ferrous metals.
• Table 8.5 (2021-22, Rs crore): petroleum, oil and lubricants 12,07,803 (largest); non-ferrous metals 4,99,766; chemical products 3,08,882; pearls and precious stones 2,31,279; edible oils 1,41,532; fertilisers 1,05,796.

Worked example

Explain the changes in the composition of India's imports since Independence. (5 marks)

Try it first, then show the solutionSolution

1. In the 1950s-60s, foodgrains, capital goods, machinery and equipment dominated imports due to food shortage; the balance of payments was adverse.
2. After the 1970s the Green Revolution ended foodgrain imports, but the 1973 energy crisis raised petroleum prices; fertilisers and petroleum replaced foodgrains.
3. Today fuel (coal, POL) is the largest group, rising from 25.4 to 31.6 per cent (2015-16 to 2021-22), reflecting industrialisation and price rises.
4. Capital goods (13.0 to 10.1 per cent) and food and allied products (5.1 to 4.4 per cent) have declined.
5. Other key imports: pearls and precious stones, gold and silver, non-ferrous metals, chemicals and edible oils.

Answer: From foodgrains and machinery to petroleum, fertilisers, precious stones and metals, with petroleum now dominant.

Direction of trade

NCERT section Direction of Trade

India has trade relations with most countries and major trading blocs.

Table 8.6: Direction of India's imports (Rs crore):

Region	2016-17	2021-22
Europe	4,03,972	6,40,577
Africa	1,93,327	3,68,156
North America	1,95,332	3,78,041
Latin America	1,15,762	1,61,995
Asia and ASEAN	15,44,520	29,18,577

• Asia and ASEAN are by far the largest source of imports, followed by Europe; imports from all regions rose between 2016-17 and 2021-22.
• Most trade moves by sea and air; small amounts by land to Nepal, Bhutan, Bangladesh and Pakistan.

Worked example

Study Table 8.6. Which region is the largest source of India's imports and how did it change from 2016-17 to 2021-22? (3 marks)

Try it first, then show the solutionSolution

1. Asia and ASEAN is the largest source of imports.
2. Imports from it rose from Rs 15,44,520 crore (2016-17) to Rs 29,18,577 crore (2021-22), nearly doubling.
3. Europe is second (Rs 6,40,577 crore in 2021-22), and imports from all regions increased.

Answer: Asia and ASEAN, whose imports nearly doubled.

Sea ports as gateways: history and organisation

NCERT section Sea Ports as Gateways of International Trade

India is surrounded by sea on three sides with a long coastline; water offers smooth, cheap transport. India has a long sea-faring tradition, with many ports named with the suffix 'pattan' (port). The west coast has more ports than the east.

History:

• Ports became important gateways after the coming of European traders and British colonisation, causing variation in their size and quality.
• The British used ports as suction points of resources from their hinterlands; railways linked local, regional, national and international markets. This continued till 1947.
• Partition took away Karachi (to Pakistan) and Chittagong (to East Pakistan, now Bangladesh); to compensate, Kandla in the west and Diamond Harbour near Kolkata on the Hugli were developed.
• Ports kept growing after Independence; now handle large domestic and overseas trade with modern infrastructure; private entrepreneurs invited for modernisation.
• Capacity rose from 20 million tonnes (1951) to over 837 million tonnes (2016).

Organisation: 12 major ports (policy and regulation by the Central government) and 200 minor or intermediate ports (regulated by state governments); major ports handle a larger share of traffic.

Hinterland: the area served by a port; its boundary is not fixed over space, and hinterlands of ports often overlap.

Worked example

Explain the meaning of hinterland. Why is it difficult to demarcate? (3 marks)

Try it first, then show the solutionSolution

1. A hinterland is the area served by a port, from which it collects exports and to which it distributes imports.
2. Its boundary is not fixed over space and changes with transport links (e.g. Konkan Railway extended Mormugao's hinterland).
3. Hinterlands of different ports often overlap, so demarcation is difficult.

Answer: The area a port serves; it is flexible and overlaps with other ports' hinterlands.

Major ports of the west coast

NCERT section Sea Ports as Gateways of International Trade

• Deendayal Port (Kandla): at the head of the Gulf of Kachchh; developed to serve western and north-western India and reduce pressure on Mumbai; specially designed for petroleum, petroleum products and fertiliser; an offshore terminal at Vadinar reduces pressure.
• Mumbai: a natural harbour and the biggest port; close to routes to the Middle East, Mediterranean, North Africa, North America and Europe; 20 km long, 6-10 km wide, 54 berths, the country's largest oil terminal. Hinterland: MP, Maharashtra, Gujarat, UP and parts of Rajasthan.
• Jawaharlal Nehru Port (Nhava Sheva): a satellite port relieving Mumbai; the largest container port in India.
• Mormugao (Goa): natural harbour at the entrance of the Zuari estuary; important after 1961 remodelling for iron-ore exports to Japan; the Konkan Railway extended its hinterland: Karnataka, Goa, southern Maharashtra.
• New Mangalore (Karnataka): exports iron ore and iron concentrates; also handles fertilisers, petroleum products, edible oils, coffee, tea, wood pulp, yarn, granite, molasses; hinterland Karnataka.
• Kochi (Cochin): at the head of Vembanad Kayal, the 'Queen of the Arabian Sea'; natural harbour close to the Suez-Colombo route; serves Kerala, southern Karnataka and south-western Tamil Nadu.

Worked example

Why was Kandla (Deendayal) port developed? (3 marks)

Try it first, then show the solutionSolution

1. After Partition, Karachi port went to Pakistan, so a new port was needed in the west.
2. Kandla, at the head of the Gulf of Kachchh, serves western and north-western India and reduces pressure on Mumbai.
3. It is designed to receive large quantities of petroleum, petroleum products and fertiliser; the Vadinar offshore terminal further reduces its pressure.

Answer: To replace Karachi's role, serve the north-west and relieve Mumbai, especially for petroleum and fertilisers.

Major ports of the east coast and airports

NCERT section Sea Ports as Gateways of International Trade; Airports

East coast ports:

• Syama Prasad Mookerjee Port (Kolkata): on the Hugli, 128 km inland; developed by the British; initial advantage as capital of British India; has lost significance as exports shifted to Visakhapatnam, Paradwip and Haldia; faces silt in the Hugli. Hinterland: UP, Bihar, Jharkhand, West Bengal, Sikkim, north-eastern states, and land-locked Nepal and Bhutan.
• Haldia: 105 km downstream from Kolkata to reduce congestion; handles bulk cargo: iron ore, coal, petroleum, fertilisers, jute, cotton.
• Paradwip: in the Mahanadi delta, about 100 km from Cuttack; the deepest harbour, for very large vessels; mainly for iron-ore exports; hinterland Odisha, Chhattisgarh, Jharkhand.
• Visakhapatnam (Andhra Pradesh): a land-locked harbour whose channel to the sea was cut through rock and sand; outer harbour for iron ore, petroleum and general cargo; hinterland Andhra Pradesh and Telangana.
• Chennai: one of the oldest east-coast ports; an artificial harbour (1859); not suitable for large ships due to shallow waters; hinterland Tamil Nadu and Puducherry.
• Kamarajar (Ennore): 25 km north of Chennai to relieve it.
• V.O. Chidambaranar (Tuticorin): also relieves Chennai; handles coal, salt, foodgrains, edible oils, sugar, chemicals, petroleum products.

Airports: air transport takes the least time and suits high-value or perishable goods over long distances, but is very costly and unsuitable for heavy, bulky goods, so its trade share is smaller than ocean routes. There were 25 major airports (2016-17), e.g. Ahmedabad, Bengaluru, Chennai, Delhi, Goa, Guwahati, Hyderabad, Kolkata, Mumbai, Thiruvananthapuram. Since 2017, UDAN operationalised 73 unserved or underserved airports, including 9 heliports and 2 water aerodromes.

Worked example

Why has Kolkata port lost its significance? (3 marks)

Try it first, then show the solutionSolution

1. Kolkata port is 128 km inland on the Hugli and suffers from silt accumulation in the river linking it to the sea.
2. Exports have been diverted to other ports such as Visakhapatnam, Paradwip and its satellite port Haldia.
3. Though it still serves a large hinterland (UP, Bihar, Jharkhand, West Bengal, Sikkim, the north-east, Nepal and Bhutan), its initial advantage as the British capital has faded.

Answer: Silting of the Hugli and diversion of exports to other ports.

International Trade in real life

Each concept, met in an everyday situation. Read the situation, answer the question in your own words, then compare with the model answer. The one-line hook is what to remember.

Topics in this chapter

• Changing Composition of India's Trade
• Direction of Trade and Airports
• Major Seaports of India and Their Hinterlands

International Trade: key facts

Trade growth

Rs 1,214 crore (1950-51) -> Rs 77,19,796 crore (2020-21); ~1% of world trade

Imports > exports.

Export shares (2015-16 -> 2021-22)

$Manufactured72.9->67.8;agriculture12.6->11.9;petroleum11.9->16.4;ores1.6->2.0($

Engineering goods, gems and jewellery important.

Import shares (2015-16 -> 2021-22)

Fuel 25.4 -> 31.6; capital goods 13.0 -> 10.1; food 5.1 -> 4.4; fertilisers 2.1 -> 2.3 (%)

POL largest import (Rs 12,07,803 crore, 2021-22).

Direction

Asia and ASEAN largest import source (Rs 29.19 lakh crore, 2021-22), then Europe

Land trade with Nepal, Bhutan, Bangladesh, Pakistan.

Ports organisation

$12major(Centre)+200minor(states);capacity20MT(1951)->837MT(2016)$

West coast has more ports.

West coast ports

Kandla	Gulf of Kachchh, petroleum, fertiliser
Mumbai	largest, natural
JNPT	largest container
Mormugao	Zuari, iron ore
New Mangalore	iron ore
Kochi	Vembanad, Queen of Arabian Sea

Map items.

East coast ports

• •Kolkata (Hugli, 128 km inland, silt)
• •Haldia (105 km downstream)
• •Paradwip (Mahanadi delta, deepest)
• •Visakhapatnam (land-locked)
• •Chennai (artificial 1859)
• •Ennore
• •Tuticorin

Map items.

Partition losses

Karachi (to Pakistan), Chittagong (to East Pakistan); compensated by Kandla, Diamond Harbour

British ports were 'suction points'.

Airports

25 major (2016-17); UDAN: 73 airports incl. 9 heliports, 2 water aerodromes

Fast, costly; high-value, perishable goods.

International airports (map list)

$Ahmedabad,Mumbai,Bengaluru,Chennai,Kolkata,Guwahati,Delhi,Amritsar,Thiruvananthapuram,Hyderabad$

Learn locations.

International Trade: map work

The places on the official CBSE map list for this chapter. Find each one on an outline map of India and practise marking it.

How the board asks International Trade

The question patterns to expect, and the method that works for each.

Tricks to remember International Trade

Short memory aids. Say each one aloud once, then use it on a question the same day.

• West coast ports (north to south)

  "Kind Monks Make New Kites": Kandla, Mumbai, Marmagao, New Mangalore, Kochi.

  Use it when: Map order.

• East coast ports (south to north)

  "Tea, Coffee, Very Pure Honey": Tuticorin, Chennai, Visakhapatnam, Paradwip, Haldia.

  Use it when: Map order.

• Harbour types

  "Natural: Mumbai, Kochi, Mormugao; Artificial: Chennai; Land-locked: Visakhapatnam".

  Use it when: Harbour MCQs.

• Airports list

  Four metros + Bengaluru, Hyderabad + Ahmedabad, Amritsar, Guwahati, Thiruvananthapuram.

  Use it when: International airports.

International Trade: board-level solved questions

Ordered from board level to HOTS. Cover the solution, write your own, then compare step by step.

Case-study practice (Section E style)

Read the situation, then answer every part. In the board paper this is a 3-mark question split into 1 + 1 + 1 marks.

Where the marks are

How a typical answer is split into step marks. Show every step: a right final answer alone rarely earns full marks.

Where students lose marks in International Trade

The slips examiners see most often, and what to write instead.

• ✗Mistake: Calling Chennai a natural harbour

  Old port.

  ✓Do this: Chennai is an artificial harbour (1859); Mumbai, Kochi and Mormugao are natural; Visakhapatnam is land-locked.

  Usually costs: 1 mark.

• ✗Mistake: Saying India has a trade surplus

  Export growth.

  ✓Do this: Imports have continued to exceed exports.

  Usually costs: 1 mark.

• ✗Mistake: Wrong map positions of ports

  Coastal confusion.

  ✓Do this: West: Kandla, Mumbai, Marmagao, New Mangalore, Kochi; East: Tuticorin, Chennai, Visakhapatnam, Paradwip, Haldia.

  Usually costs: 1 mark per item.

• ✗Mistake: Using old data

  Guides have older tables.

  ✓Do this: Use the 2021-22 figures in Tables 8.1-8.6 of the current textbook.

  Usually costs: 1 mark.

NCERT exercise guide: International Trade

What each exercise in the NCERT chapter tests, how to approach it, and a question of the same kind solved step by step. Questions here are written in our own words.

Practice questions on International Trade

Write each answer on paper first. Open the hint only if you are stuck, and the answer only when you have finished.

1. Q1 · 1 mark · MCQBoard level

   Trade between two countries is termed:
   (a) Internal trade
   (b) External trade
   (c) International trade
   (d) Local trade

   Hint

   Across national boundaries.

   Answer

   (c).

2. Q2 · 1 mark · MCQBoard level

   Which port is known as the 'Queen of the Arabian Sea'?
   (a) Mumbai
   (b) Kochi
   (c) Mormugao
   (d) New Mangalore

   Hint

   Vembanad Kayal.

   Answer

   (b).

3. Q3 · 1 mark · Assertion-reasonHarder board level

   Assertion (A): Foodgrain imports were discontinued after the 1970s.
   Reason (R): The Green Revolution made India self-sufficient in foodgrains.
   Choose (a)-(d).

   Hint

   Import history.

   Answer

   (a) Both are true and R explains A.

4. Q4 · 1 mark · MCQHarder board level

   Which port is specially designed to receive petroleum and fertilisers in the west?
   (a) Mormugao
   (b) Kandla (Deendayal)
   (c) Kochi
   (d) JNPT

   Hint

   Gulf of Kachchh.

   Answer

   (b).

5. Q5 · 3 marks · Short answerBoard level

   Name the ports on the east coast of India. (3 marks)

   Hint

   North to south.

   Answer

   Kolkata (Syama Prasad Mookerjee) and Haldia on the Hugli, Paradwip in the Mahanadi delta (Odisha), Visakhapatnam (Andhra Pradesh), and Kamarajar (Ennore), Chennai and V.O. Chidambaranar (Tuticorin) in Tamil Nadu.

6. Q6 · 3 marks · Short answerHOTS / competency

   Suppose a fruit exporter in Maharashtra must send fresh mangoes to Europe quickly, while a mining company in Odisha must ship iron ore to East Asia. Which mode and gateway suit each? (3 marks)

   Hint

   Air vs sea.

   Answer

   Fresh mangoes are perishable and high-value, so air transport via an international airport like Mumbai suits them, as air takes the least time. Iron ore is heavy and bulky, unsuitable for costly air transport, so it should go by sea through Paradwip, the deepest harbour developed mainly for large-scale iron-ore exports, with Odisha in its hinterland.

7. Q7 · 3 marks · Short answerHarder board level

   Why does India import edible oils despite being an agricultural country? Name two other major imports. (3 marks)

   Hint

   Import basket.

   Answer

   Domestic production of oilseeds and edible oils does not meet demand, so edible oils remain a significant import (about Rs 1,41,532 crore in 2021-22). Other major imports: petroleum, oil and lubricants (the largest), non-ferrous metals, chemicals, pearls and precious stones, fertilisers.

8. Q8 · 5 marks · Long answerHOTS / competency

   Describe any four major ports of India along with their hinterlands. (5 marks)

   Hint

   Mix of coasts.

   Answer

   Mumbai: biggest natural harbour, largest oil terminal; hinterland MP, Maharashtra, Gujarat, UP, parts of Rajasthan. Mormugao (Goa): natural harbour at the Zuari estuary, iron-ore exports; hinterland Karnataka, Goa, southern Maharashtra (extended by Konkan Railway). Kolkata: on the Hugli, 128 km inland, troubled by silt; hinterland UP, Bihar, Jharkhand, West Bengal, Sikkim, the north-east, Nepal and Bhutan. Paradwip: deepest harbour in the Mahanadi delta for iron-ore exports; hinterland Odisha, Chhattisgarh, Jharkhand. (Also Visakhapatnam: AP and Telangana; Chennai: Tamil Nadu and Puducherry; Kochi: Kerala, south Karnataka, south-west TN.)

Test your recall

Answer in your head or on paper first, then open the card. Pulling an answer out of memory makes it stick far better than re-reading.

1. 1.What share of world trade does India have?Show answer

   About one per cent.

2. 2.Which is the largest container port of India?Show answer

   Jawaharlal Nehru Port (Nhava Sheva).

3. 3.Which port has the deepest harbour?Show answer

   Paradwip.

4. 4.When was Mormugao port remodelled and why?Show answer

   In 1961, to handle iron-ore exports to Japan.

5. 5.How far inland is Kolkata port?Show answer

   128 km from the Bay of Bengal.

6. 6.How many airports were operationalised under UDAN since 2017?Show answer

   73, including 9 heliports and 2 water aerodromes.

Quick revision checklist

The night before the exam: can you do each of these without looking?

• ☐Can you describe the growth and characteristics of India's trade?
• ☐Can you explain changes in export composition?
• ☐Can you explain changes in import composition since the 1950s?
• ☐Can you name the largest source region of imports?
• ☐Can you explain hinterland?
• ☐Can you describe the role of ports in colonial times and after Partition?
• ☐Can you describe five west coast ports?
• ☐Can you describe five east coast ports?
• ☐Can you explain the role of airports in trade?
• ☐Can you locate the 10 ports and 10 international airports on a map?

International Trade: frequently asked questions