Explain the composition of India's Foreign Trade



The change in the composition of India’s foreign trade can be studied under two heads :
(i) Change in the composition of Exports : The share of agricultural goods was 55% in the traditional exports by India in 1950-51. It re-duced to 19.4% in 1989-90 and 10% in 2007-08. The share of engineering goods was 0-05% in 1951. It increased to 24% in 2007-08.
(ii) Change in composition of Imports: The share of jute, cotton and foodgrains had increased too much in the composition of import trade of India after 1947 but now it has reduced, the import of petroleum, fertilizers, steel, iron, metals, machinery capital goods, edible oil and chemicals has stepped up.