Foreign trade is all about imports and exports. The backbone of any trade between nations is those products and services which are being traded to some other location outside a particular country's borders. Some nations are adept at producing certain products at a cost-effective price. Perhaps it is because they have the labor supply or abundant natural resources which make up the raw materials needed. No matter what the reason, the ability of some nations to produce what other nations want is what makes international trade work.
Globalization and Indian Foreign Trade
Globalization is hardly a new force affecting India. To think so is to ignore a diverse andpluralistic long-standing civilization that was shaped by a long list of "invading" (globalizing)cultures that became what we now know as India. India, knowing its past as a globalizer,sees itself as one of the great nations of the world. But today, India has yet to build on theonetime greatness of its civilization to earn international influence and respect. India sees itself as equally important as Russia, China and the U.S., believing it has much to offer therest of the world.
Benefits of International Trade
With the help of modern production techniques, highly advanced transportation systems,transnational corporations, outsourcing of manufacturing and services, and rapidindustrialization, the international trade system is growing and spreading very fast. International trade has flourished over the years due to the many benefits it has offered todifferent countries across the globe. International trade is the exchange of services, goods,and capital among various countries and regions, without much hindrance.
Importance of International Trade
The international trade accounts for a good part of a country’s gross domestic product. It is also one of important sources of revenue for a developing country
Globalization in India
Theprocess of globalization has been an integral part of the recent economic progress made byIndia. It has played a major role in export-led growth, leading to the enlargement of the jobmarket in India. It has been advantageous for companies that have ventured in the India’s contemerorymarket.
Growth of Foreign Trade: India
Over the years, India's foreign trade has come to occupy a pivotal position in the economicscenario and prosperity of the country. India exports a huge number of products and imports equally a good number of required products. Major export of products of India is to countries such as USA, UK, UAE, Hong Kong, China, Germany, Singapore, Belgium, Japan etc. India's major import of product is from countries such as USA, UK, Germany, China, Belgium, Japan, Switzerland etc.
From the foregoing analysis, India's foreign policy is deeply embedded in the political economy of the world. It is discernible from the development paradigm and policies pursued by successive governments in India.