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Composition of India's Trade Class 12 Geography Notes

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GeographyCBSE Class 12 · International Trade

Changing Composition of India's Exports and Imports (Class 12 Geography, India: People and Economy, Chapter 8)

Updated 16 October 2026 · Fact-checked

India's external trade grew from Rs 1,214 crore in 1950-51 to Rs 77,19,796 crore in 2020-21, yet imports remain higher than exports. Manufactured goods made up 67.8 per cent of exports in 2021-22, traditional farm exports declined, and imports shifted from foodgrain and capital goods to petroleum, fertilisers and other raw materials.

Notice that manufactured goods still dominate exports but fell to 67.8%, while crude and petroleum products rose to 16.4% and agriculture dipped.

Illustration drawn for QuestionBuddy.

Understand Changing Composition of India's Trade

Why this topic matters. The syllabus lists "Changing pattern of the composition of India's exports and imports" under Chapter 8, and CBSE has asked it as data-based items and 5-mark answers. Learn the direction of each change, the NCERT reasons and a few key figures. Ports and airports are on other pages.

1. Growth of trade.

  • India's external trade was worth Rs 1,214 crore in 1950-51 and Rs 77,19,796 crore in 2020-21. Reasons for the rise: momentum in manufacturing, liberal policies of the government and diversification of markets.
  • India's share in world trade is only about one per cent, though it plays a significant role in the world economy.
  • The total volume of both exports and imports has increased, but the value of imports continued to be higher than exports.
  • Table 8.1 (Rs crore): 2004-05 exports 3,75,340, imports 5,01,065; 2009-10: 8,45,534 and 13,63,736; 2013-14: 19,05,011 and 27,15,434; 2016-17: 18,52,340 and 25,77,422; 2021-22: 31,47,021 and 45,72,775 (printed "45,72775"). Trade balances as printed: -1,25,725; -5,18,202; -8,10,423; -7,25,082; -14,25,753.

2. Composition of exports (Table 8.2, per cent).

  • Agriculture and allied products: 12.6 (2015-16), 12.3, 14.3, 11.9 (2021-22). Ore and minerals: 1.6, 1.9, 3.2, 2.0. Manufactured goods: 72.9, 73.6, 71.2, 67.8. Crude and petroleum products: 11.9, 11.7, 9.2, 16.4. Other commodities: 1.1, 0.5, 2.1, 1.9.
  • NCERT: the share of agriculture and allied products and manufactured goods decreased; that of crude petroleum products and other commodities increased; ore and minerals remained largely constant.
  • Manufacturing alone accounted for 67.8 per cent of export value in 2021-22. Table 8.3 (2021-22, Rs crore): agriculture and allied 3,75,742; ores and minerals 63,754; manufactured goods 21,32,296; mineral fuels and lubricants 5,15,310.
  • The decline of traditional items (such as cashew) is largely due to tough international competition; floricultural products, fresh fruits, marine products and sugar have increased. Engineering goods have grown strongly, with China and other East Asian countries as competitors. Gems and jewellery contribute a larger share.

3. Composition of imports.

  • 1950s and 1960s: serious food shortage; main imports were foodgrain, capital goods, machinery and equipment; the balance of payments was adverse in spite of import substitution.
  • After the 1970s foodgrain import was discontinued because of the success of the Green Revolution; the energy crisis of 1973 raised petroleum prices and the import budget; foodgrain import was replaced by fertilisers and petroleum. Machinery and equipment, special steel, edible oil and chemicals largely make up the import basket.
  • Table 8.4 (per cent, 2015-16 to 2021-22): fuel (coal, POL) 25.4, 26.7, 25.1, 31.6; capital goods 13.0, 13.6, 12.7, 10.1; food and allied products 5.1, 5.6, 4.5, 4.4; fertilisers 2.1, 1.3, 1.9, 2.3.
  • Rising petroleum imports: used as fuel and as industrial raw material, indicating the tempo of rising industrialisation and a better standard of living; sporadic price rises in the international market are another reason. Import of capital goods and of food and allied products declined. Other major imports: pearls, precious and semi-precious stones, gold and silver, and non-metal ferrous metals (NCERT's wording).

Inference (ours, not NCERT). Ratios such as exports as a percentage of imports, and net fuel imports, are our own calculations from NCERT's tables; NCERT does not compute them or explain the year-to-year changes.

Key quotations

Short lines worth knowing by heart: who says them, when, and why they matter.

  • Though there has been an increase in the total volume of import and export, the value of import continued to be higher than that of exports.

    NCERT, India: People and Economy, Chapter 8: Introduction to the changing pattern of India's trade.

    The core line on the trade gap.

Changing Composition of India's Trade: key facts

Growth of trade
  • 1950-51: Rs 1,214 crore
  • 2020-21: Rs 77,19,796 crore
  • about 1 per cent of world trade
  • imports higher than exports
Causes: manufacturing, liberal policies, market diversification.
Exports 2021-22
  • Manufactured goods 67.8
  • Mineral fuels, crude and petroleum products 16.4
  • Agriculture and allied 11.9
  • Ore and minerals 2.0
  • Other 1.9 (per cent)
Agriculture and manufactured goods shares fell from 2015-16.
Imports
  • 1950s-60s: foodgrain, capital goods, machinery
  • after 1970s: no foodgrain (Green Revolution)
  • 1973 energy crisis
  • fertilisers and petroleum
  • fuel 31.6 per cent in 2021-22
Capital goods fell to 10.1 per cent.
Export trends
Downtraditional farm items such as cashew
Upfloriculture, fresh fruits, marine products, sugar
Strongengineering goods
Largegems and jewellery
Competition: China and other East Asian countries.

How to answer Changing Composition of India's Trade questions

Trade-composition answers need direction (rise or fall), a figure and an NCERT reason. In data items, read the table first and compute only what the question asks.

  1. 1State the direction for each group: which share fell, which rose, which stayed constant.
  2. 2Attach one number to each statement, for example 67.8 per cent or 31.6 per cent.
  3. 3Give the NCERT reason: competition for traditional exports; the Green Revolution, the 1973 energy crisis and industrialisation for imports.
  4. 4In numerical items, show the working (share = part / total x 100) and say it is your own calculation.
  5. 5Keep exports and imports apart and never use a figure from the wrong table.

Changing Composition of India's Trade in real life

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

Fall of a traditional export

Suppose a country's sales of a traditional nut abroad fall because rival suppliers sell it more cheaply, while its exports of cut flowers, fresh fruit and fish rise.

What does this resemble in India's agricultural exports, and what causes the decline?

Try it first, then show the solutionSolution
  1. NCERT: there is a decline in the export of traditional items such as cashew.
  2. The decline is largely due to tough international competition.
  3. An increase is registered in floricultural products, fresh fruits, marine products and sugar.

Answer: The fall of traditional items like cashew because of tough international competition, with growth in floricultural products, fresh fruits, marine products and sugar.

Memory hook: Old crops lose, new crops gain.

Petroleum and industrialisation

Imagine a country where new factories, trucks and cars multiply, so its purchases of oil from abroad keep climbing, even though it also uses oil to make other goods.

How does NCERT interpret rising petroleum imports in India?

Try it first, then show the solutionSolution
  1. Petroleum is used not only as a fuel but also as an industrial raw material.
  2. The rise indicates the tempo of rising industrialisation and a better standard of living.
  3. Sporadic price rises in the international market are another reason.

Answer: It indicates rising industrialisation and a better standard of living, with international price rises as another reason.

Memory hook: More factories, more oil.

Tricks to remember Changing Composition of India's Trade

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

  • 1,214 to 77,19,796

    Rs 1,214 crore in 1950-51 became more than seventy-seven lakh crore in 2020-21.

    Use it when: Growth of external trade.

  • Two down, two up, one flat

    Exports: agriculture and manufactured goods down; crude petroleum products and other commodities up; ore and minerals flat.

    Use it when: Direction of export shares.

  • 73-1-fuel

    The 1973 energy crisis pushed up oil prices; fuel is 31.6 per cent of imports in 2021-22.

    Use it when: Import shift.

  • FFP "food, fertiliser, petroleum"

    Foodgrain imports stopped after the 1970s and fertilisers and petroleum took their place.

    Use it when: Import replacement.

Changing Composition of India's Trade: solved examples

Ordered from board level to HOTS. Try each one before you open the solution.

Example 1: India in world trade · 1 mark · MCQBoard level

NCERT describes India's contribution to the total volume of world trade as:
(A) as low as one per cent
(B) about ten per cent
(C) about twenty-five per cent
(D) more than half

Try it first, then show the solutionSolution
  1. NCERT: India's contribution in the world trade is as low as one per cent of the total volume, yet it plays a significant role in the world economy (1 mark).

Answer: (A) as low as one per cent

Example 2: Statements on the principal exports of 2021-22 · 1 mark · MCQHarder board level

Using Table 8.3 and the total exports of Rs 31,47,021 crore in 2021-22, consider the statements:
I. The four principal groups of Table 8.3 together are worth less than total exports.
II. Manufactured goods account for more than two-thirds of total exports.
III. Ores and minerals earned more than agriculture and allied products.
Which are correct?
(A) I and II
(B) II and III
(C) I and III
(D) I, II and III

Try it first, then show the solutionSolution
  1. I: 3,75,742 + 63,754 + 21,32,296 + 5,15,310 = 30,87,102, which is less than 31,47,021 (our sum), so true.
  2. II: 21,32,296 / 31,47,021 = 67.8 per cent, above two-thirds (66.7 per cent), so true.
  3. III is false: ores and minerals (63,754) earned far less than agriculture and allied products (3,75,742) (1 mark).

Answer: (A) I and II

Example 3: Assertion and reason on fuel and capital goods · 1 mark · Assertion-reasonHarder board level

Assertion (A): The share of fuel (coal, POL) in India's imports rose from 25.4 per cent in 2015-16 to 31.6 per cent in 2021-22.
Reason (R): The share of capital goods in India's imports fell from 13.0 per cent to 10.1 per cent over the same years.
(A) Both (A) and (R) are true and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true but (R) is not the correct explanation of (A).
(C) (A) is true but (R) is false.
(D) (A) is false but (R) is true.

Try it first, then show the solutionSolution
  1. Table 8.4 gives both changes: fuel 25.4 to 31.6 and capital goods 13.0 to 10.1 per cent.
  2. NCERT does not link the two; a fall in one share is not the stated cause of the rise in the other, so R is not the explanation (1 mark).

Answer: (B) Both (A) and (R) are true but (R) is not the correct explanation of (A).

Example 4: Source-based: principal exports 2021-22 · 3 marks · Source-basedHarder board level

Read the data from NCERT Table 8.2, Composition of India's Export (percentage share in exports; 2015-16, 2016-17, 2020-21, 2021-22): Agriculture and allied products 12.6, 12.3, 14.3, 11.9 | Ore and minerals 1.6, 1.9, 3.2, 2.0 | Manufactured goods 72.9, 73.6, 71.2, 67.8 | Crude and petroleum products 11.9, 11.7, 9.2, 16.4 | Other commodities 1.1, 0.5, 2.1, 1.9.
(i) In which year did agriculture and allied products have their highest share? (1)
(A) 2015-16 (B) 2016-17 (C) 2020-21 (D) 2021-22
(ii) By how many percentage points did the share of manufactured goods fall from 2015-16 to 2021-22? (1)
(A) 2.1 (B) 5.1 (C) 6.7 (D) 67.8
(iii) Which group's share rose the most between 2015-16 and 2021-22? (1)
(A) Agriculture and allied products (B) Ore and minerals (C) Crude and petroleum products (D) Other commodities

Try it first, then show the solutionSolution
  1. (i) The agriculture row reads 12.6, 12.3, 14.3, 11.9, so the highest share is 14.3 in 2020-21, (C) (1 mark).
  2. (ii) Our own subtraction: 72.9 - 67.8 = 5.1 percentage points, so (B) (1 mark).
  3. (iii) Our own subtraction for each group: crude and petroleum products 16.4 - 11.9 = 4.5; other commodities 1.9 - 1.1 = 0.8; ore and minerals 2.0 - 1.6 = 0.4; agriculture 11.9 - 12.6 = -0.7. The largest rise is crude and petroleum products, (C) (1 mark).

Answer: (i) C; (ii) B; (iii) C

Example 5: Reading Table 8.3 · 3 marks · Short answerBoard level

From Table 8.3 (2021-22, Rs crore: agriculture and allied products 3,75,742; ores and minerals 63,754; manufactured goods 21,32,296; mineral fuels and lubricants 5,15,310), name the largest and the smallest of the four groups and find by how many times the largest exceeds the smallest, to the nearest whole number. (3 marks)

Try it first, then show the solutionSolution
  1. Largest: manufactured goods, Rs 21,32,296 crore (1 mark).
  2. Smallest: ores and minerals, Rs 63,754 crore (1 mark).
  3. Our own division: 21,32,296 / 63,754 = 33.4, about 33 times (1 mark).

Answer: Manufactured goods (Rs 21,32,296 crore) form the largest group and ores and minerals (Rs 63,754 crore) the smallest. Dividing, 21,32,296 / 63,754 is about 33.4, so the largest group is about 33 times the smallest (our own arithmetic on the NCERT figures).

Example 6: HOTS: is the trade gap narrowing? · 5 marks · Long answerHOTS / competency

Using Table 8.1 (Rs crore: 2009-10 exports 8,45,534, imports 13,63,736; 2013-14 exports 19,05,011, imports 27,15,434; 2016-17 exports 18,52,340, imports 25,77,422), find exports as a percentage of imports for the three years and the fall in each of exports and imports between 2013-14 and 2016-17. State what this shows about the gap and what NCERT does not tell us. Label inference. (5 marks)

Try it first, then show the solutionSolution
  1. Ratios (2 marks): 2009-10: 8,45,534 / 13,63,736 = 62.0 per cent; 2013-14: 19,05,011 / 27,15,434 = 70.2 per cent; 2016-17: 18,52,340 / 25,77,422 = 71.9 per cent (our arithmetic).
  2. Falls (1 mark): exports fell by 52,671 crore and imports by 1,38,012 crore from 2013-14 to 2016-17 (our arithmetic).
  3. Meaning (1 mark): imports exceeded exports in every year, but the deficit shrank from 8,10,423 to 7,25,082 crore because imports fell more.
  4. Limit (1 mark): NCERT does not explain why both fell; any reason is our inference.

Answer: Exports as a percentage of imports were 62.0 in 2009-10, 70.2 in 2013-14 and 71.9 in 2016-17 (our arithmetic). Between 2013-14 and 2016-17 exports fell by Rs 52,671 crore and imports by Rs 1,38,012 crore, so the trade deficit narrowed from Rs 8,10,423 crore to Rs 7,25,082 crore, as the table itself shows.

This fits NCERT's statement that the value of imports continued to be higher than that of exports: the gap exists every year, but it is not always widening. NCERT gives no reason for the fall in both exports and imports in 2016-17, so any explanation, such as lower oil prices, would be our inference.

Where students lose marks in Changing Composition of India's Trade

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

  • Mistake: Saying the share of manufactured goods in exports increased

    Manufactured goods dominate the export basket.

    Wrong working

    The share of manufactured goods in exports rose from 2015-16 to 2021-22.

    Right working

    It fell from 72.9 to 67.8 per cent, though it remains the largest group.

    Do this: Largest is not rising.

    Usually costs: 1 mark.

  • Mistake: Putting foodgrain imports in the 1980s

    Food shortage is linked with the early decades.

    Wrong working

    Foodgrain remained India's main import in the 1980s.

    Right working

    Foodgrain was a major import in the 1950s and 1960s; after the 1970s it was discontinued because of the Green Revolution.

    Do this: Food in the 50s and 60s only.

    Usually costs: 1 mark.

  • Mistake: Calling India a major share of world trade

    India is a large economy.

    Wrong working

    India contributes a large share of world trade.

    Right working

    India's contribution to world trade is as low as about one per cent.

    Do this: About one per cent.

    Usually costs: 1 mark.

  • Mistake: Treating the "fuel" import group and "mineral fuels" export group as identical

    Both look like the same thing in different tables.

    Wrong working

    Fuel imports 31.6 per cent and fuel exports 16.4 per cent are directly comparable.

    Right working

    The import group is fuel (coal, POL) as a share of imports; the export group is crude and petroleum products as a share of exports; use them with care.

    Do this: Name the table and the group.

    Usually costs: 1 mark in a data item.

Exam tips

  • For every composition statement write the direction, the two years and the percentages, for example 72.9 to 67.8.
  • Show your working in any percentage question, and say "our calculation" when NCERT does not give the result.
  • NCERT's own table totals do not always add to 100 (for example Table 8.4); never force them to.
  • The questions on this page are our own and are checked by meaning against the chapter page and past papers; they are not copies of board items.

Practice questions on Changing Composition of India's 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

    India's external trade was worth Rs 1,214 crore in:
    (A) 1950-51
    (B) 1960-61
    (C) 1991-92
    (D) 2004-05

    Hint

    The starting year of NCERT's comparison.

    Answer

    (A) 1950-51. By 2020-21 it had risen to Rs 77,19,796 crore.

  2. Q2 · 2 marks · Very short answerHarder board level

    Calculate the percentage growth of India's external trade in 2020-21 over 1950-51, using Rs 1,214 crore and Rs 77,19,796 crore, to the nearest whole per cent. (2 marks)

    Hint

    Growth = (new - old) / old x 100.

    Answer

    (77,19,796 - 1,214) / 1,214 x 100 = 6,35,797.5, about 6,35,798 per cent, that is, trade became about 6,359 times larger (our own arithmetic on the NCERT figures).

  3. Q3 · 1 mark · MCQHarder board level

    Using Tables 8.1 and 8.3, the share of mineral fuels and lubricants (Rs 5,15,310 crore) in India's total exports of Rs 31,47,021 crore in 2021-22 is closest to:
    (A) 7 per cent
    (B) 12 per cent
    (C) 16 per cent
    (D) 24 per cent

    Hint

    Divide and multiply by 100; compare with Table 8.2.

    Answer

    (C) 16 per cent. 5,15,310 / 31,47,021 x 100 = 16.4, which agrees with the 16.4 per cent shown for crude and petroleum products in Table 8.2 (our own check).

  4. Q4 · 3 marks · Short answerHarder board level

    Table 8.5 gives petroleum, oil and lubricants imports of Rs 12,07,803 crore and fertiliser imports of Rs 1,05,796 crore for 2021-22; total imports were Rs 45,72,775 crore. Find the share of petroleum, oil and lubricants in total imports, compare it with the 31.6 per cent fuel share in Table 8.4, and give one reason for the difference. (3 marks)

    Hint

    Divide, multiply by 100, and note what "fuel" includes in Table 8.4.

    Answer

    12,07,803 / 45,72,775 x 100 = 26.4 per cent (our own arithmetic), against 31.6 per cent for fuel in Table 8.4. The groups are not the same: Table 8.4 names its group fuel (coal, POL), so it includes coal as well as petroleum, oil and lubricants; this explanation is our reading of the table headings, as NCERT does not comment on the difference.

  5. Q5 · 3 marks · Short answerBoard level

    From Table 8.4 (India: Composition of Import, percentage shares for 2015-16 and 2021-22: food and allied products 5.1 and 4.4; fuel (coal, POL) 25.4 and 31.6; fertilisers 2.1 and 2.3; paper board manufacturing and news print 0.8 and 0.7; capital goods 13.0 and 10.1; others 38.1 and 38.5), name the named group with the largest share in 2021-22, name the three groups whose shares fell, and give NCERT's comment on two of them. (3 marks)

    Hint

    Compare the two columns row by row; "others" is not a named group.

    Answer

    Fuel (coal, POL) has the largest share among the named groups in 2021-22, 31.6 per cent. The shares of food and allied products (5.1 to 4.4), paper board manufacturing and news print (0.8 to 0.7) and capital goods (13.0 to 10.1) fell. NCERT notes that the import of capital goods maintained a steady decline and that the import of food and allied products declined.

  6. Q6 · 3 marks · Short answerHOTS / competency

    A report says: "India's trade deficit in 2021-22 was entirely caused by fuel imports." Using Table 8.4 fuel share of 31.6 per cent of imports (Rs 45,72,775 crore), exports of mineral fuels and lubricants of Rs 5,15,310 crore and the deficit of Rs 14,25,753 crore, test the claim. State the limits of your calculation. (3 marks)

    Hint

    Fuel imports minus fuel exports, compared with the deficit.

    Answer

    Fuel imports = 31.6 per cent of 45,72,775, about Rs 14,45,000 crore. Subtracting fuel exports of Rs 5,15,310 crore leaves a net fuel import of about Rs 9,29,700 crore, which is less than the deficit of Rs 14,25,753 crore, so fuel explains a large part but not all of it. Limits (our caution): NCERT's fuel group includes coal as well as POL, while the export group is "mineral fuels and lubricants", so the match is approximate; all figures here are our own arithmetic on NCERT tables.

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 was the value of India's external trade in 1950-51?Show answer

    Rs 1,214 crore.

  2. 2.Which commodity group had 67.8 per cent of exports in 2021-22?Show answer

    Manufactured goods.

  3. 3.Which event of 1973 pushed up petroleum prices and the import budget?Show answer

    The energy crisis of 1973.

  4. 4.Who are India's competitors in engineering goods?Show answer

    China and other East Asian countries.

  5. 5.What replaced foodgrain in the import list after the 1970s?Show answer

    Fertilisers and petroleum.

Changing Composition of India's Trade: frequently asked questions

How has CBSE asked this part of the chapter?

Often, in several forms: a source-based graph on the gap between exports and imports (2023 64/4/1 Q18); the export group with the largest contribution (2026 64/2/1 Q11); answers on the changing composition of exports (2024 64/5/1 Q23; 2025 64/7/2 Q25; 2026 64/4/1 Q28(a); sample paper 2024-25 Q27(A); sample paper 2025-26 Q27, from Table 8.2), of imports (2026 64/4/1 Q28(b)) or of both (2026 64/1/1 Q28(b); 2026 64/1/2 Q28(a); sample paper 2026-27 Q25(B)); the rise of manufactured exports (2026 64/5/2 Q23); and the causes of the sharp rise in trade (2026 64/1/2 Q28(b)). Learn the direction of each change with its figure.

Do all NCERT table figures add up exactly?

Not always. Table 8.1 prints the 2021-22 trade balance as -14,25,753 whereas 31,47,021 minus 45,72,775 is -14,25,754, a difference of one crore; the 2021-22 imports themselves are printed "45,72775". Quote the table as printed and point out the difference rather than correcting it. The groups in Table 8.4 add up to well under 100 per cent (87.6 in 2021-22; 84.5 in 2015-16), so the listed groups evidently do not cover all imports (our reading; NCERT does not explain the gap). Use the printed figures and do not treat "others" as a remainder.

Where are the direction of trade, ports and airports covered?

On the pages for those topics in this chapter. The map list for Chapter 8 asks for ten seaports and ten international airports and is not part of the composition of trade.

Which import table should I use for rankings?

Table 8.4 gives shares of groups and is safest for statements of direction. Table 8.5 gives values of some principal commodities in crore rupees; this page uses only its petroleum and fertiliser rows and does not rank the others.