NCERT Class 12 Geography India -People And Economy: Chapter 8 — International Trade
This chapter, 'International Trade,' from NCERT's Class 12 Geography textbook 'India - People and Economy,' examines the evolution of India's foreign trade. It highlights the significant increase in trade volume since 1950-51, driven by manufacturing growth and liberal policies. The chapter details the changing composition of India's exports and imports, noting that imports consistently exceed exports, resulting in a trade deficit. It discusses the shift from food grains to manufactured goods and petroleum products in imports and exports, while also mentioning the growth in specific agricultural and marine products. The text emphasizes the role of international competition and the increasing importance of East Asian countries in India's trade dynamics.
Quick info
| Board | CBSE / NCERT |
|---|---|
| Class | Class 12 |
| Subject | Geography |
| Book | India -People And Economy |
| Chapter | Chapter 8 — International Trade |
| Language | English |
| PDF type | NCERT Textbook |
| Session | CBSE 2026 |
| Reading time | 3 minutes |
| Word count | 435 |
Learning outcomes
- Analyze the changing patterns of India's international trade over time.
- Identify the major commodities in India's exports and imports.
- Understand the reasons behind the trade deficit in India's foreign trade.
- Recognize the impact of government policies and global competition on trade.
Vocabulary
| Word | Meaning |
|---|---|
| Self-sufficient | Having all that is needed; independent. |
| Sea change | A profound or noticeable transformation. |
| Volume | The amount or quantity of something. |
| Composition | The nature of something's ingredients or constituents; the way in which a whole is put together. |
| Direction | The course along which someone or something moves. |
| External trade | Trade between countries. |
| Import substitution | A strategy of replacing foreign imports with domestic production. |
| Trade balance | The difference between a country's imports and exports. |
| Commodities | Raw materials or primary agricultural products. |
| Floricultural | Relating to the cultivation of flowers. |
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Practice questions
- What is international trade? Answer: International trade is the exchange of capital, goods, and services across international borders or territories.
- Why is international trade mutually beneficial? Answer: It is mutually beneficial because no country is self-sufficient and trade allows countries to obtain goods and services they cannot produce themselves.
- What has been the trend in India's foreign trade since 1950-51? Answer: India's foreign trade has seen a significant increase in volume, composition, and direction since 1950-51.
- What is the general trend of the trade balance in India's foreign trade? Answer: The value of imports has consistently been higher than that of exports, leading to an adverse trade balance.
Practice MCQs
Q1. Which book is referred to for studying international trade in the initial part of the chapter?
Explanation: The chapter states that students have already studied international trade in the book 'Fundamentals of Human Geography'.
Q2. What is India's approximate contribution to the total volume of world trade?
Explanation: The text mentions that India's contribution in the world trade is as low as one per cent of the total volume.
Q3. Which sector accounted for the largest share of India's total export value in 2021-22?
Explanation: Manufacturing sector alone accounted for 67.8 per cent of India's total value of export in 2021-22.
Q4. Which commodity was a major item of import for India during the 1950s and 1960s?
Explanation: India faced serious food shortage during 1950s and 1960s, and the major item of import at that time was foodgrain.
Q5. According to the text, which countries are major competitors for India in trade?
Explanation: The chapter explicitly mentions that China and other East Asian countries are India's major competitors.
Frequently asked questions
What is the significance of international trade for a country?
International trade is significant because no country is self-sufficient, and it allows for the exchange of goods and services, contributing to the global economy.
How has India's international trade changed over the years?
India's international trade has undergone a significant change in terms of volume, composition, and direction, with a substantial increase in value.
Does India export more than it imports?
No, the value of India's imports has consistently been higher than that of its exports, leading to an adverse trade balance.
What are the main components of India's exports?
The main components include manufactured goods, agriculture and allied products, and crude petroleum products, with manufactured goods holding the largest share.
What used to be a major import item for India in the past?
During the 1950s and 1960s, foodgrain was a major import item due to food shortages.
What factors have contributed to the rise in India's overseas trade?
Factors include the momentum of manufacturing sectors, liberal government policies, and the diversification of markets.
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NCERT Class 12 Geography — India -People And Economy — Chapter 8 — International Trade. Verified by NCERT Help Editorial Team. Reviewed on 29 Jul 2026. Last updated 10 Aug 2026.