State with reasons whether you agree or disagree with the following statement (any three): Over the last 75 years, India's foreign trade has undergone a complete change in terms of composition and direction.

Answer: I agree with the statement.

Reasons:

1. Composition of exports: At independence India exported mainly primary goods such as tea, jute, cotton and spices. Now exports are dominated by engineering goods, petroleum products, gems and jewellery, chemicals, pharmaceuticals, textiles and software services.
2. Composition of imports: Earlier imports were mainly food grains and consumer goods. Now India imports crude oil, capital goods, machinery, electronic goods, gold and fertilisers needed for industrialisation.
3. Direction of trade: Earlier trade was mainly with the U.K. and a few western countries. Now India trades with almost all countries; the USA, China, UAE, Saudi Arabia, the European Union and ASEAN countries are major partners.
4. Volume and value: The value of foreign trade has risen many times, especially after liberalisation in 1991.

Thus both composition and direction of India's foreign trade have changed completely.