5.6   Trade

. Trade Trade is an important phenomenon that decides the economic growth of a country. Trade is an act (or) process of buying, selling or exchanging of goods and services. The primitive method of trade was known as the Barter system where goods were exchanged for goods. Later on, money was introduced as a medium of exchange in buying and selling of goods. The difference in value between the imports and exports is called balance of trade. The situation in which the value of exports exceeds the value of imports is termed as favourable balance of trade and the reverse position is termed as unfavourable balance of trade. India - Population, Transport, Communication & Trade any two countries is called Bilateral trade. The trade between more than two countries is called Mutilateral Trade. Exports The major exports of India are tea, coffee marine products, ores and minerals, leather products, gems and jewels, sports goods, chemicals and related products, plastics and rubber articles, articles of stones, plaster, cement, asbestos, mica, glass ware, paper and related products, base metals, optical, medical and surgical instruments, electronic items, machinery, office equipments, textiles and allied products. Imports The major imports are petroleum products, pearls, precious stones and semi-precious stones, gold and telecom instruments.