Chapter 8 of the Class 12 NCERT Geography textbook India: People and Economy covers a crucial topic—International Trade. This chapter explains how India connects with the rest of the world through the exchange of goods, services, and information. It also talks about trade balance, trade policy, major ports, export-import patterns, and the institutions that support India’s foreign trade. Whether it’s petroleum coming from the Gulf or software services going to the US, all of this is part of international trade.
I chose to write on this topic because international trade is not just about business—it affects our economy, jobs, and even our daily lives. When onion prices rise or mobile phones become cheaper, many times it is due to trade policies. Students often read this chapter only from an exam point of view, but it’s much more than that. If you’re preparing for CBSE board exams or competitive exams like UPSC or SSC, understanding this chapter gives you a clear picture of India’s global role. In this article, I’ll summarise the key points of the chapter, break down important terms and examples, and provide the official link to download the chapter PDF.
What is International Trade?
International trade refers to the exchange of goods and services between countries. It allows a country to get what it cannot produce efficiently and sell what it produces in surplus. India has a long history of trade with countries like Egypt, China, and Rome, and today we trade with almost every major economy in the world.
There are two types of international trade:
- Export – Goods and services sold to other countries
- Import – Goods and services bought from other countries
The difference between export and import value is called the balance of trade. If exports are more, it’s a trade surplus. If imports are more, it’s a trade deficit.
India’s Major Exports and Imports
Here’s a quick look at what India mostly exports and imports today:
| Major Exports | Major Imports |
|---|---|
| Petroleum products | Crude oil |
| Engineering goods | Gold and silver |
| Gems and jewellery | Electronics |
| Software services | Machinery |
| Agricultural products | Chemicals |
Our export destinations include USA, UAE, China, Bangladesh, and Singapore. Our main import partners are China, USA, UAE, and Saudi Arabia.
Key Features of India’s Trade Policy
India’s foreign trade policy has changed over time. In the early years after independence, the focus was on self-reliance and reducing imports. Later, with economic liberalisation in 1991, India opened up to global markets.
Highlights of India’s trade policy:
- Promotes export of Indian goods and services
- Encourages Special Economic Zones (SEZs)
- Signs Free Trade Agreements (FTAs) with countries and groups
- Provides incentives for exporters
- Tries to reduce the trade deficit
Download PDF: NCERT Class 12 Geography Chapter 8 – International Trade
To read the full chapter officially published by NCERT, you can download the PDF directly from here:
NCERT Class 12 Geography (India People and Economy) Chapter 8: International Trade
