MCQ
- Choose the right answers of the following from the given options.
(i) Trade between two countries is termed as:
- (a) Internal trade
- (b) External trade
- (c) International trade
- (d) Local trade
Ans. (c) International trade
Explanation: When trade takes place between two or more countries, it is called international trade. Internal or local trade is confined within national boundaries, whereas international trade crosses them.
(ii) Which one of the following is a land-locked harbour?
- (a) Vishakhapatnam
- (b) Mumbai
- (c) Ennor
- (d) Haldia
Ans. (a) Vishakhapatnam
Explanation: Vishakhapatnam port is a landlocked harbour, meaning it is protected and requires artificial entry points. In contrast, Mumbai and Haldia are natural ports located along the coast.
(iii) Most of India’s foreign trade is carried through:
- (a) Land and sea
- (b) Land and air
- (c) Sea and air
- (d) Sea
Ans. (c) Sea and air
Explanation: The majority of India’s international trade is carried through seaports, as they are cost-effective for bulk cargo. Air transport is mainly used for high-value, perishable, or urgent goods.
Short Answer Type
- Answer the following questions in about 30 words.
(i) Which are the characteristics of India’s foreign trade?
Ans. India’s foreign trade shows growth in both imports and exports, but imports remain higher, leading to trade deficits. Exports have shifted from primary goods to manufactured and petroleum products.
(ii) Distinguish between port and harbour.
Ans.
- Port: A place on the coast where ships anchor, load, and unload goods. It provides warehouses and transport links.
- Harbour: A sheltered area of sea offering safety to ships from winds and waves, natural or artificial in nature.
(iii) Explain the meaning of hinterland.
Ans. Hinterland refers to the inland area served by a port. It is the region where exports originate and imports are distributed. For example, Kolkata port serves Uttar Pradesh, Bihar, and Jharkhand.
(iv) Name important items which India imports from different countries.
Ans. India imports petroleum, fertilisers, capital goods, chemicals, precious stones, pearls, paper, machinery, gold, and silver, which are essential for industry, trade, and economic growth.
(v) Name the ports of India located on the east coast.
Ans. The major east coast ports are Kolkata, Haldia, Paradip, Vishakhapatnam, Ennore, Chennai, and Tuticorin, handling bulk cargo and supporting trade with Southeast Asian nations.
Long Answer Type
- Answer the following questions in about 150 words.
(i) Describe the composition of export and import trade of India.
Ans.
India’s trade composition has changed significantly since independence.
- Exports: Traditional agricultural exports like tea, coffee, and spices have declined in percentage. Petroleum products have grown due to increased refining capacity. Engineering goods, chemicals, marine products, fruits, and sugar now form a major part of exports. Manufactured goods maintain steady importance.
- Imports: In the past, food grains dominated imports, but after the Green Revolution, these declined. Imports today are mainly petroleum, fertilisers, capital goods, machinery, chemicals, gold, silver, and special steels. These reflect industrial growth, urban demand, and the need for energy resources.
Overall, India’s exports are increasingly diversified, while imports show dependence on petroleum and capital goods, highlighting industrialisation and rising consumption.
(ii) Write a note on the changing nature of the international trade of India.
Ans.
India’s international trade has shifted in composition, direction, and scale:
- Policy Changes: Liberalisation, tariff reductions, and de-licensing have expanded trade.
- Composition: Exports are moving from raw materials to manufactured goods, petroleum, and IT services. Imports focus on energy, machinery, and technology.
- Direction: Asia and Oceania dominate trade, followed by Europe and America. India has diversified partners, reducing dependence on a few nations.
- New Dimensions: Knowledge-based services, software exports, and IT-enabled services have gained prominence, earning valuable foreign exchange. Tourism and global outsourcing have further integrated India into the world economy.
- Challenges: Rising domestic demand, global competition, and trade imbalances remain concerns.
Thus, India is emerging as an active participant in global trade, with greater emphasis on services and technology.