Question

Give an idea about India’s foreign trade around the decade of 1970-80.

Answer 1

Foreign trade around the decade of 1970-80:

• When a country starts developing, the proportion import of food grains tends to fall. The share of primary sector goods in total exports tends to fall and that of industrial goods tends to rise. India saw such trends in the decades of 1970 and 1980.
• When the country further develops its export trade increases. To maintain and increase the export i.e. to keep on producing items of export the country’s import for raw material, technology, spare parts, petroleum, etc. increases. These imports are necessary for the industries that produce goods for export. So, as India developed its export as well as import also increased