How does the Indian economy benefit from international trade
Describe the ways in which international trade helps the Indian economy grow
- Increased exports: International trade provides an opportunity for Indian companies to expand their customer base and sell their products in international markets. This has led to an increase in India's export earnings, which in turn has helped to strengthen the country's balance of payments position.
- Access to raw materials: International trade allows Indian companies to gain access to raw materials and inputs that may not be available domestically. This has helped certain sectors, such as the IT and pharmaceutical industries, to become more globally competitive.
- Increased foreign investment: International trade has also led to increased foreign investment in the Indian economy. This has helped to create new jobs and boost economic growth.
- Technology transfer: International trade has facilitated the transfer of technology and knowledge from other countries to India. This has helped Indian companies to improve their production processes and become more efficient.
- Competition: International trade has also led to increased competition, which has encouraged Indian companies to become more innovative and efficient in order to compete with foreign rivals.
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2 years ago