Overview of International Trade
International trade is defined as the exchange of goods and services across national borders. It encompasses a vast array of transactions that facilitate economic interactions among countries. A country's ability to engage in international trade is often seen as an indicator of its economic prosperity, serving as a fundamental economic barometer. The balance of trade is a crucial aspect, calculated as the difference between a nation's exports and imports, where favorable balances occur when exports exceed imports, and unfavorable balances arise when imports surpass exports.
India exemplifies a robust participant in international trade, maintaining relations with various global trading blocks and countries. Key exports include gems, chemicals, and agricultural products, while imports primarily consist of crude oil, machinery, and electronics. Transport and communication infrastructure plays a pivotal role in enhancing trade efficiency, linking local markets to global platforms. As such, understanding international trade's dynamics and implications helps illuminate its impact on India's economic landscape.