Let’s begin with a very basic yet powerful question: What is a system? Now, various scholars have defined it differently, but let’s look at one definition that gives us a clear and functional idea. According to James, a system is: “A whole (a person, a state, a culture, a business) which functions as a whole…
India’s trade trajectory mirrors its broader economic transformation—from a phase of food insecurity and import-dependence to becoming a global leader in services and a strategic exporter. Over the decades, India has diversified its trade portfolio, increased its global integration, and developed new export capabilities. Broad Trends in Trade Performance India’s trade volume has seen consistent…
Introduction: Why Do We Need Trade Theories? Think of this as asking a very fundamental question: “Countries are trading — but why are they trading the way they do? And what factors decide who should trade what with whom?” Just like Newton gave laws to explain motion, economists created theories to explain the patterns, motivations,…
Introduction Classification of Indian Ports: Major vs. Non-Major Let us begin with the constitutional classification. 🧭 On What Basis Are Ports Classified? This classification is not just administrative — it is rooted in the Constitution of India. 📜 Constitutional Placement: Legal Definition of Major Ports “What makes a port ‘Major’?”This is defined under the Indian…
When countries trade, goods must physically move across borders. Just as doorways are needed to enter a house, countries need gateways to send and receive goods. These gateways are primarily of two types: 🚢 Ports: The Maritime Highways of Trade A port is a location on the coast or shore with facilities to dock, load/unload,…
Imagine a village market where anyone can sell their products—without paying rent, entry fee, or facing restrictions. That’s free trade at the global level. What is Free Trade? Free trade, also called trade liberalisation, is the act of removing or lowering trade barriers such as tariffs, quotas, and import duties to allow unrestricted exchange of…
International trade isn’t just about buying and selling across borders. It’s a complex system with many moving parts. In this section, we explore the types, volume, composition, direction, and balance of trade. Let’s understand them: Bilateral Trade – A Deal Between Two Players “I’ll give you wheat, and in return, you give me oil.” 🧠…
This topic tries to answer a simple question:👉 Why do countries trade with each other at all? Think of countries as people in a big village. One person has rice, another has milk, and a third has wool. Naturally, they will exchange. This same logic of interdependence operates globally—but on a much more complex level,…
Let us understand this as a chronological journey—from ancient civilizations to the modern global economy. Imagine we are unfolding a story across centuries, where trade evolves not just as an economic activity, but also as a political, cultural, and strategic tool. Ancient Beginnings: The Silk Route The following figure shows an illustration of Silk Road…
Let’s begin at the root. International Trade is simply the exchange of capital, goods, and services across national borders. Imagine this: India is producing tea and the UK wants that tea. In return, the UK might send high-end machinery to India. This mutual exchange — of goods, money, and services — across countries is what…
