Economy
International Trade
Welcome to the International Trade study hub, an indispensable section within your UPSC Economy preparation. International Trade, at its core, involves the exchange of goods, services, and capital across national borders.
70 articles in this topic
Articles on International Trade
India & UK FTA: India’s Maturing Global Presence
The India-UK Free Trade Agreement (FTA) marks a significant milestone in Indias global trade strategy, signaling its transition from a cost-driven export economy to a value-creating powerhouse.
US Remittance Tax Plan Raises Concerns
Context A U.S. bill proposes a 5% excise tax on any remittances that originate in the US to any other country. India’s Remittances: Key Facts Indias remittances have more than doubled from $55.6 billion in 2010-11 to $118.7 billion in 2023-24.
Why is the Agriculture Sector Missing from India's FTAs?
Context Despite India’s active negotiations of Free Trade Agreements with global partners, the agriculture sector, vital to its economy and employment, remains largely excluded. Why Agriculture is Missing from India’s FTAs? Fear of Import Surge: Entry into FTAs like RCEP was abandoned over concerns that cheap agri imports, especially dairy from New Zealand and Australia, would hurt Indian farmers.
IMF Loan to Pakistan
In News The Executive Board of the International Monetary Fund (IMF) decided to allow for “an immediate disbursement” of $1 billion (around Rs 8,500 crore) to Pakistan. What is the Extended Fund Facility (EFF)? The Extended Fund Facility is a loan-based support mechanism provided by the IMF to countries that suffer from medium-term balance of payments problems, particularly due to structural deficiencies in their economies.
FTA with UK: Boosting India’s Textile Sector
The recently signed India-UK Free Trade Agreement (FTA) is expected to enhance exports, create jobs, and strengthen supply chains, with India’s textile sector being a key beneficiary.
Overseas Remittances by Indians under LRS were Down 29%
Context Overseas remittances by Indian residents under the Liberalised Remittance Scheme (LRS) of the Reserve Bank of India (RBI) fell by 29% to $1,964.21 million in February 2025 from $2,768.89 million in January. The Liberalised Remittance Scheme (LRS) LRS is part of the Foreign Exchange Management Act (FEMA) 1999 which lays down the guidelines for outward remittance from India. Under the Scheme, resident individuals, including minors, can freely remit up to $2,50,000 per financial year for pe
Relevance of WTO in Changing Global Trade Landscape
In recent years, the relevance of the World Trade Organisation (WTO) has been questioned due to institutional paralysis, stalled negotiations, and rising protectionism.
India’s Trade Deficit with China Widened
Context India’s trade deficit with China widened to a record $99.2 billion in the 2024-25 fiscal year. About The trade deficit is driven by a surge in imports of electronics, batteries and solar components, even as exports fell sharply. China remained India’s second-largest trading partner in 2024-25, with total bilateral trade amounting to $127.7 billion, behind the United States.
India is Getting More Remittances from Advanced Economies
Findings of the Reserve Bank of India’s (RBI’s) latest Remittances Survey show a significant shift in India’s remittance sources.
Surge in India’s Cotton Imports
Indias cotton imports have significantly increased in recent months, with imports reaching $104 million in August 2024 and rising to $184.64 million in January 2025, compared to $19.62 million in January 2024.