Foreign trade in India includes all imports and exports to and from India. At the level of

Central Government A central government is the government that is a controlling power over a unitary state. Another distinct but sovereign political entity is a federal government, which may have distinct powers at various levels of government, authorized or dele ...

it is administered by the

Ministry of Commerce and Industry A Ministry of Trade and Industry, Ministry of Commerce, Ministry of Commerce and Industry or variations is a ministry that is concerned with a nation's trade, industry and commerce. Notable examples are: List *Algeria: Ministry of Industry and M ...

. Foreign trade accounted for 48.8% of India's GDP in 2018.

History

Even before independence, the

Government of India The Government of India (ISO: ; often abbreviated as GoI), known as the Union Government or Central Government but often simply as the Centre, is the national government of the Republic of India, a federal democracy located in South Asia, c ...

maintained semi-autonomous diplomatic relations. It had colonies (such as the

Aden Settlement The Chief Commissioner's Province of Aden was the administrative status under which the former Aden Settlement (1839–1932) was placed from 1932 to 1937. Under that new status, the Viceroy of India assumed direct control over Aden, which had h ...

), who sent and received full missions, and was a founder member of both the

League of Nations The League of Nations (french: link=no, Société des Nations ) was the first worldwide intergovernmental organisation whose principal mission was to maintain world peace. It was founded on 10 January 1920 by the Paris Peace Conference that ...

and the United Nations. After India gained independence from the United Kingdom in 1947, it soon joined the

Commonwealth of Nations The Commonwealth of Nations, simply referred to as the Commonwealth, is a political association of 56 member states, the vast majority of which are former territories of the British Empire. The chief institutions of the organisation are the Co ...

and strongly supported independence movements in other colonies, like the

Indonesian National Revolution The Indonesian National Revolution, or the Indonesian War of Independence, was an armed conflict and diplomatic struggle between the Republic of Indonesia and the Dutch Empire and an internal social revolution during Aftermath of WWII, postw ...

. The

partition Partition may refer to: Computing Hardware * Disk partitioning, the division of a hard disk drive * Memory partition, a subdivision of a computer's memory, usually for use by a single job Software * Partition (database), the division of a ...

and various

territorial dispute A territorial dispute or boundary dispute is a disagreement over the possession or control of land between two or more political entities. Context and definitions Territorial disputes are often related to the possession of natural resources su ...

s, particularly that over

Kashmir Kashmir () is the northernmost geographical region of the Indian subcontinent. Until the mid-19th century, the term "Kashmir" denoted only the Kashmir Valley between the Great Himalayas and the Pir Panjal Range. Today, the term encompas ...

, would strain its relations with Pakistan for years to come. During the

Cold War The Cold War is a term commonly used to refer to a period of geopolitical tension between the United States and the Soviet Union and their respective allies, the Western Bloc and the Eastern Bloc. The term '' cold war'' is used because the ...

, India adopted a foreign policy of non-alignment policy itself with any major

power bloc In international relations, power is defined in several different ways. Material definitions of state power emphasize economic and military power. Other definitions of power emphasize the ability to structure and constitute the nature of social ...

. However, India developed close ties with the Soviet Union and received extensive military support from it.

Around 100CE

The

Periplus of the Erythraean Sea The ''Periplus of the Erythraean Sea'' ( grc, Περίπλους τῆς Ἐρυθρᾶς Θαλάσσης, ', modern Greek '), also known by its Latin name as the , is a Greco-Roman periplus written in Koine Greek that describes navigation and ...

is a document written by an anonymous sailor from

Alexandria Alexandria ( or ; ar, ٱلْإِسْكَنْدَرِيَّةُ ; grc-gre, Αλεξάνδρεια, Alexándria) is the second largest city in Egypt, and the largest city on the Mediterranean coast. Founded in by Alexander the Great, Alexandria ...

about 100CE describing trade between countries, including India.

Around 1500

In 1498

Portuguese explorer Portuguese maritime exploration resulted in the numerous territories and maritime routes recorded by the Portuguese as a result of their intensive maritime journeys during the 15th and 16th centuries. Portuguese sailors were at the vanguard of Eu ...

Vasco da Gama Vasco da Gama, 1st Count of Vidigueira (; ; c. 1460s – 24 December 1524), was a Portuguese explorer and the first European to reach India by sea. His initial voyage to India by way of Cape of Good Hope (1497–1499) was the first to link E ...

landed in Calicut (modern day

Kozhikode Kozhikode (), also known in English as Calicut, is a city along the Malabar Coast in the state of Kerala in India. It has a corporation limit population of 609,224 and a metropolitan population of more than 2 million, making it the second la ...

Kerala Kerala ( ; ) is a state on the Malabar Coast of India. It was formed on 1 November 1956, following the passage of the States Reorganisation Act, by combining Malayalam-speaking regions of the erstwhile regions of Cochin, Malabar, South ...

) as the first European to ever sail to India. The tremendous profit made during this trip made the Portuguese eager for more trade with India and attracted other European navigators and tradesmen.

Pedro Álvares Cabral Pedro Álvares Cabral ( or ; born Pedro Álvares de Gouveia; c. 1467 or 1468 – c. 1520) was a Portuguese nobleman, military commander, navigator and explorer regarded as the European discoverer of Brazil. He was the first human in ...

left for India in 1500 and established Portuguese trading posts at Calicut and Cochin (modern day

Kochi Kochi (), also known as Cochin ( ) ( the official name until 1996) is a major port city on the Malabar Coast of India bordering the Laccadive Sea, which is a part of the Arabian Sea. It is part of the district of Ernakulam in the state of K ...

), returning to Portugal in 1501 with pepper, ginger, cinnamon, cardamom, nutmeg, mace, and cloves. The profits made from this trip were huge.

1991 economic reform

Prior to the 1991

economic liberalisation Economic liberalization (or economic liberalisation) is the lessening of government regulations and restrictions in an economy in exchange for greater participation by private entities. In politics, the doctrine is associated with classical liber ...

, India was a closed economy due to the average tariffs exceeding 200 percent and the extensive quantitative restrictions on imports. Foreign investment was strictly restricted to only allow Indian ownership of businesses. Since the liberalisation, India's economy has improved mainly due to increased foreign trade.

Trade in services

India was the eighth largest exporter of commercial services in the world in 2016, accounting for 3.4% of global

trade in services Trade in Services refers to the sale and delivery of an intangible product, called a service, between a producer and consumer. Trade in services that takes place between a producer and consumer that are, in legal terms, based in different countrie ...

. India recorded a 5.7% growth in services trade in 2016–17.

Exports and imports

India exports approximately 7500 commodities to about 190 countries, and imports around 6000 commodities from 140 countries.

Trade statistics

Summary table of recent India foreign trade (in billion $): The top 10 commodity exports in 2007 were as follows: The top 10 commodity imports in 2007 were as follows:

Trading partners of India

India's largest trading partners in alphabetical order are

Bangladesh Bangladesh (}, ), officially the People's Republic of Bangladesh, is a country in South Asia. It is the eighth-most populous country in the world, with a population exceeding 165 million people in an area of . Bangladesh is among the mos ...

Bhutan Bhutan (; dz, འབྲུག་ཡུལ་, Druk Yul ), officially the Kingdom of Bhutan,), is a landlocked country in South Asia. It is situated in the Eastern Himalayas, between China in the north and India in the south. A mountainous ...

Germany Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated betwe ...

Hong Kong Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China ( abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delt ...

Iraq Iraq,; ku, عێراق, translit=Êraq officially the Republic of Iraq, '; ku, کۆماری عێراق, translit=Komarî Êraq is a country in Western Asia. It is bordered by Turkey to Iraq–Turkey border, the north, Iran to Iran–Iraq ...

Israel Israel (; he, יִשְׂרָאֵל, ; ar, إِسْرَائِيل, ), officially the State of Israel ( he, מְדִינַת יִשְׂרָאֵל, label=none, translit=Medīnat Yīsrāʾēl; ), is a country in Western Asia. It is situated ...

Japan Japan ( ja, 日本, or , and formally , ''Nihonkoku'') is an island country in East Asia. It is situated in the northwest Pacific Ocean, and is bordered on the west by the Sea of Japan, while extending from the Sea of Okhotsk in the north ...

Nepal Nepal (; ne, नेपाल ), formerly the Federal Democratic Republic of Nepal ( ne, सङ्घीय लोकतान्त्रिक गणतन्त्र नेपाल ), is a landlocked country in South Asia. It is mai ...

Russia Russia (, , ), or the Russian Federation, is a List of transcontinental countries, transcontinental country spanning Eastern Europe and North Asia, Northern Asia. It is the List of countries and dependencies by area, largest country in the ...

Saudi Arabia Saudi Arabia, officially the Kingdom of Saudi Arabia (KSA), is a country in Western Asia. It covers the bulk of the Arabian Peninsula, and has a land area of about , making it the fifth-largest country in Asia, the second-largest in the A ...

China China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...

Singapore Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, borde ...

Switzerland ). Swiss law does not designate a ''capital'' as such, but the federal parliament and government are installed in Bern, while other federal institutions, such as the federal courts, are in other cities (Bellinzona, Lausanne, Luzern, Neuchâtel ...

, the

United Arab Emirates The United Arab Emirates (UAE; ar, اَلْإِمَارَات الْعَرَبِيَة الْمُتَحِدَة ), or simply the Emirates ( ar, الِْإمَارَات ), is a country in Western Asia (The Middle East). It is located at th ...

and the

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...

. India is biggest exporter of

pharmaceuticals A medication (also called medicament, medicine, pharmaceutical drug, medicinal drug or simply drug) is a drug used to diagnose, cure, treat, or prevent disease. Drug therapy (pharmacotherapy) is an important part of the medical field and rel ...

, some food products and is a

mixed economy A mixed economy is variously defined as an economic system blending elements of a market economy with elements of a planned economy, markets with state interventionism, or private enterprise with public enterprise. Common to all mixed economi ...

References

External links

Directorate General of Foreign Trade

India Exports and Imports
{{Economy of India