Explain about Import and Export of commodities.

1. FOREIGN
TRADE
Direction and Composition
of Trade

2. INTRODUCTION
 Trade between two or more
nations is called foreign trade or
international trade.
 Foreign trade is also known as
external trade.
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FOREIGN
TRADE
TRANSACTION
Import Trade
Export Trade
Net Exports

4. .
Foreign trade has played a crucial role in
India’s economy and it’s growth.
The composition and direction of foreign
trade has undergone sustained changes
particularly after the liberalization process
which began in early 1990’s.
Over the years, India’s trade with other
countries have gone up substantially. Apart
from that, India is now a major player in
global trading systems and all the major
sectors of Indian economy are linked to the
world outside either directly or indirectly
through international trade.
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Composition
Export Import
Fuels, capital goods,
chemicals, food
grains, petroleum
products, iron and
steel, etc.
Manufactured goods,
textiles, jewellery,
handicrafts, light
machinery etc.

6. IMPORT
It refers to goods that we
buy from other countries is
called import.

7. EXPORT
It refers to the when we are
selling commodities to
other countries.
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8. DIRECTION OF INDIA’SFOREIGN
TRADE
 Direction means countries to which
India exports it’s goods and
countries from which it imports.
 Direction of trade also helps to
understand the diplomatic
relationship maintains by India with
other countries of trade.
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OECD OPEC EASTERN
EUROPE ASEAN

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Organization for
Economic Co-
operation and
Development
(OECD)
Organization of
Petroleum Exporting
Countries (OPEC)
Eastern Europe Developing Nations
 USA, Canada,
European Union
(EU), Australia and
Japan.
 Iran, Iraq, Saudi
Arabia and
Others
 Romania, Russia
and Others
 China, Hong Kong,
South Korea,
Singapore and
Malaysia.

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