13.
Explanation
The direction and composition of India’s foreign trade have undergone significant changes before and after independence (which occurred in 1947). Here’s an overview of these changes:
Before Independence (Pre-1947):
1. **Colonial Trade: During the colonial period, India’s foreign trade was heavily influenced by British colonial policies. India primarily served as a supplier of raw materials, such as cotton, jute, and spices, to British industries.
2. Agricultural Exports: India’s exports were dominated by agricultural products, while manufactured goods were limited. Jute, cotton, and tea were some of the major exports.
3. Narrow Export Base: The export base was relatively narrow, with a limited range of products.
4. Trading Partners: The United Kingdom was the dominant trading partner, with India’s trade largely oriented toward British markets.
5. Trade Restrictions: Colonial policies often imposed trade restrictions and tariffs that benefited British interests at the expense of Indian economic development.
After Independence (Post-1947):
1. Diversification: India adopted a strategy of economic self-reliance and diversification of its trade portfolio.
2. Import Substitution: There was a shift toward import substitution industrialization, encouraging domestic manufacturing to reduce reliance on imports.
3. Emerging Industries: The composition of exports and imports evolved, with a focus on emerging industries like heavy machinery, steel, and chemicals.
4. Trade Agreements: India signed trade agreements with various countries and became a member of international trade organizations like the General Agreement on Tariffs and Trade (GATT).
5. Diversified Trading Partners: India expanded its trading partners beyond the UK and began trading with countries worldwide, including the United States, the Soviet Union, and other Asian nations.
6. Service Exports: In recent decades, there has been significant growth in service exports, particularly in the information technology and business process outsourcing (IT-BPO) sectors.
7. Globalization: India embraced globalization and liberalization in the early 1990s, leading to increased foreign investment, trade liberalization, and greater integration into the global economy.
8. Technology and Pharmaceuticals: India became a significant exporter of information technology services and pharmaceuticals.
9. Trade Deficits: India faced trade deficits due to a rising demand for imported goods and energy resources.
These changes reflect India’s efforts to transform its economy, diversify its trade portfolio, and adapt to the evolving global economic landscape. While India’s foreign trade has evolved considerably, it continues to be a vital driver of the country’s economic growth and development.