Introduction:

While imports are increasing export to other countries should also increase as the exports are the payment to import. If this does not happen there would be a problem of making payment for import. If exports are not increase corresponding to increase the import, or if a country does not find out the method of paying for imports, it would be forced to restrict its import. This would reduce the rate of economic growth in the country because Indian industries depend upon foreign machinery, spare parts and raw materials. The composition and direction of India’s exports plays a very important role in economic growth. growth.

India need to look for markets elsewhere for her product. India’s internal trade is very much larger than the external trade but for the sake of economic development a government has been showing greater interest in external trade, but with the increase in income and increase in the size of population, internal demand for consumption goods is constantly rising leaving very little surplus for purpose of exports.

Composition of India’s exports:

• Food, beverages and tobacco
• Cereals including rice
• Meat and meat preparation and fish
• Diary product
• Fruits and veggies
• Spices
• Tea, coffee and other beverages
• Tobacco
• Raw materials
• Hides and skins
• Oil seeds
• Crude rubber
• Wood, pulp and waste paper
• Textile fibers which includes silk, wool, cotton and jute
• Crude minerals, metals and metals scrap
• Animal and vegetable oils and fats
• Chemical which includes crude chemicals from coal petroleum and natural gas coloring materials, medical and pharmaceutical products, perfume materials and plastic materials
• Iron ore
• Manufacture goods including machinery
• Leather and leather goods
• Rubber manufacturers
• Wood and cork manufacturer
• Paper and paper board manufacturers
• Textile yarn fabric specially jute and cotton manufacturers
• Non metallic minerals manufacturers such as lime cement, glassware, pottery pearls.
• Iron and steel
• Machinery of all types, electrical machinery apparatus and appliance and transport equipment.

Direction of India’s export:

Since independence of the country there have been changes in the direction of our export also. Before 1951 India’s export were sent to the UK, the USA, Canada, Burma, Egypt, China and others. At present a major country which receive India’s exports are the USA, Russia, Japan, UK, Germany. In 1950 – 1951 the UK and the USA were two major buyers of Indian goods the exports of UK reduce to 5% in 2001 – 2002 from 22%. Russia and Japan which imported so little at one time are now the leading buyers of Indian goods.

also read: explain the volume, composition and direction of India’s imports.