International Trade Class 12 Geography Chapter 8 CBSE Notes 2025-26

India’s international trade has always played a crucial role in its economic development. Since no country is fully self-sufficient, international trade brings mutual benefits. Over recent decades, India’s foreign trade has seen a significant transformation, both in its value and composition. For instance, India’s external trade was valued at just ₹1,214 crore in 1950-51, but it soared to ₹77,19,796 crore by 2020-21. Strong growth in manufacturing, government liberalization, and diversification of markets have been key factors behind this tremendous increase. However, despite this growth, the value of imports has consistently surpassed exports, leading to a persistent trade deficit.

India’s Export Composition Exports from India have gone through significant changes over the years. Traditionally, agriculture and allied products and manufactured goods dominated export earnings. However, their share has declined, while the contribution of crude petroleum, petroleum products, and other non-traditional commodities has risen. Between 2015-16 and 2021-22, the share of manufactured goods in exports fell from 72.9% to 67.8%. Similarly, the share of agriculture and allied products, after varying slightly, stood at 11.9% in 2021-22. On the other hand, crude and petroleum products increased their contribution from 11.9% in 2015-16 to 16.4% in 2021-22.

Export growth in sectors like engineering goods, gems, and jewellery has been notable, even as traditional items such as cashew face stiff international competition. While floriculture, fresh fruits, marine products, and sugar exports have increased, there’s a visible decline in some agricultural exports due to global competition.

The manufacturing sector remains the backbone of India’s exports, accounting for two-thirds of the total export value in 2021-22. In that year, agriculture and allied products contributed ₹3,75,742 crore to exports, manufactured goods stood at ₹21,32,296 crore, ores and minerals ₹63,754 crore, and mineral fuels and lubricants ₹5,15,310 crore.

Composition of Imports India’s imports have evolved to reflect changes in economic priorities and requirements. During the 1950s and 1960s, food grains, capital goods, machinery, and equipment dominated the import basket due to food shortages and industrialization needs. Following the Green Revolution, foodgrain imports decreased, and petroleum replaced them as a major imported commodity, especially after the 1973 energy crisis.

From 2015-16 to 2021-22, the share of food and allied products in imports dropped from 5.1% to 4.4%, while fuel (including coal and petroleum products) rose from 25.4% to 31.6%. Capital goods’ share saw a reduction, falling from 13% to 10.1% in the same period. Imports of fertilisers, special steel, edible oil, chemicals, precious stones, gold, and silver form a significant part of the overall imports.

The figures for 2021-22 highlight petroleum, oil, and lubricants as the largest imported group at ₹12,07,803 crore, followed by non-ferrous metals (₹4,99,766 crore), chemical products (₹3,08,882 crore), pearls and precious stones (₹2,31,279 crore), edible oils (₹1,41,532 crore), and fertilisers (₹1,05,796 crore).

India’s Trade Balance and Trends Despite the surge in exports, the value of imports has remained consistently higher, resulting in a negative trade balance through the years. For example, in 2021-22, India’s exports totaled ₹31,47,021 crore, while imports reached ₹45,72,775 crore, creating a trade deficit of ₹14,25,753 crore. This pattern has persisted due to reliance on imported fuels, capital goods, and raw materials necessary for India's industrial growth.

Direction of India’s Trade India maintains trade relations with almost every region of the world, importing and exporting goods with Europe, Africa, North America, Latin America, Asia, and ASEAN nations. Most of India’s imports in 2021-22 came from Asia and ASEAN (₹29,18,577 crore), followed by Europe (₹6,40,577 crore), North America (₹3,78,041 crore), Africa (₹3,68,156 crore), and Latin America (₹1,61,995 crore). While most international trade is carried out via sea and air, a small but important volume passes by land to neighbouring countries such as Nepal, Bhutan, Bangladesh, and Pakistan.

Sea Ports – Gateways of International Trade Bordered by sea on three sides, India’s long coastline has fostered a robust network of ports; these serve as primary gateways for international trade. Historically, ports with names ending in "pattan" (indicating ‘port’) were vital for goods movement. Currently, India boasts 12 major ports and around 200 minor/intermediate ports, with major ports managing the bulk of overseas trade. Central government policies regulate major ports, while states administer minor/intermediate ports.

After partition, crucial ports like Karachi (now in Pakistan) and Chittagong (now in Bangladesh) were lost, prompting the development of new ports such as Kandla (now Deendayal Port) and Diamond Harbour. India's port system has grown in capacity from 20 million tonnes in 1951 to over 837 million tonnes in 2016.

• Deendayal Port (Kandla): Caters to the west and northwest, mainly for petroleum and fertilizer imports.
• Mumbai Port: India’s largest oil terminal and a key link to central and western regions.
• Jawaharlal Nehru Port (Nhava Sheva): Largest container port, easing pressure on Mumbai Port.
• Marmagao Port (Goa): Focuses on iron ore exports, serving Karnataka, Goa, and southern Maharashtra.
• New Mangalore Port: Exports iron ore, fertilizers, petroleum, and edible oils; serves Karnataka.
• Kochchi Port: Natural harbour near Suez-Colombo, serves Kerala and nearby states.
• Kolkata Port: Oldest port on the Hugli; serves the eastern/northeastern region and partners with Nepal and Bhutan.
• Haldia Port: Downstream from Kolkata; handles iron ore, coal, petroleum products.
• Paradwip Port: Deep harbour in Odisha; major exporter of iron ore for Odisha, Chhattisgarh, Jharkhand.
• Visakhapatnam Port: Andhra Pradesh’s primary port; handles iron ore, petroleum, general cargo.
• Chennai, Ennore, and Tuticorin Ports: Main ports on the east coast, serve Tamil Nadu, Puducherry, and southeast trade movement.

Modernization initiatives have improved port efficiencies, and private sector involvement is encouraged for further upgrades.

Role of Airports in International Trade Air transport is especially valuable for high-value, perishable items in India’s international trade, though its high cost means it is not used for heavy or bulky cargo. Airports are critical for connecting Indian exporters/importers to global markets.

By 2016-17, 25 major airports—including those in Ahmedabad, Bengaluru, Chennai, Delhi, Mumbai, and Kolkata—were operational for international trade. The UDAN scheme has further expanded connectivity, with 73 new airports, heliports, and aerodromes added by 2023. These facilities support quicker movement of goods to and from various parts of India and the world.

Key Terms and Concepts

• International Trade: Exchange of goods and services between countries for mutual benefit.
• Hinterland: The area served by a port, supporting movement of goods to and from the port.
• Port: A place on the coast where ships load/unload goods, equipped for trade.
• Harbour: A sheltered part of a port or coastline where ships are protected from storms and waves.

Review Table – India’s Foreign Trade (Select Data)

India’s Foreign Trade (₹ crore)

Year	Exports	Imports	Trade Balance
2013-14	19,05,011	27,15,434	-8,10,423
2021-22	31,47,021	45,72,775	-14,25,753

Quick Facts for Revision

• India’s share in global trade is about 1% but is important given the country’s size and growth.
• Export basket shifting from traditional goods to manufactured and petroleum products.
• Major imports: fuels, machinery, precious stones, chemicals, edible oils.
• Major ports (west coast): Deendayal (Kandla), Mumbai, Jawaharlal Nehru, Marmagao, New Mangalore, Kochchi.
• Major ports (east coast): Kolkata, Haldia, Paradwip, Visakhapatnam, Chennai, Ennore, Tuticorin.
• Air transport is vital for time-sensitive trade in high-value or perishable goods.
• Government policies and infrastructure upgrades drive the changing trends in India’s international trade.

Class 12 Geography Chapter 8 Notes – International Trade: India People and Economy Key Points

These Class 12 Geography Chapter 8 International Trade notes provide clear explanations and key statistics, helping students quickly understand changing export and import patterns, India’s major trading partners, and the importance of ports and airports. Use these points to revise crucial tables and facts before exams. The notes follow the latest NCERT data and layouts.

By studying these concise revision notes, students can strengthen their answers for both short and long questions in CBSE exams. Each topic—from export trends to infrastructural gateways—is covered with easy-to-remember points and fresh, up-to-date statistics for faster last-minute preparation.