(i) No country in the world is self-sufficient in all its needs. Surplus goods can be exchanged via International trade and needs fulfilled.
(ii) International trade helps in exchange of surplus goods with those of deficit countries through foreign trade.
(iii) Foreign trade has helped India to improve its productivity of manufactured goods.
(iv) International trade has contributed to India’s economic growth, raising income levels of people, thus, increasing the foreign exchange reserves.
(v) International trade helps India to import advanced technology of other countries to improve its own production.
(vi) Hence, prosperity of a country depends on the advancement of the International trade and hence is called the ‘Economic Barometer’ of a nation.
