Foreign trade plays a vital role in the Indian economy. As the country need to import diverse products so foreign trade is extremely important to country. India exports vast number of products and also imports an equal amount of other products.

Export
Being as the major focal point of India's trade policy various items are freely exported from India. Exports during June, 2004 were valued at US $ 5973.68 million where as in 2005 it exhibited a tremendous boom and raised to 7110.96 million which is 19.04% higher.

Taken from site
Major Destinations of Export

Export (Value US$ Million)
Countries	2000-01	2001-02	2002-03	2003-04
USA	9251.55	8542.34	10924.05	11490.30
UAE	2586.26	2500.28	3336.12	5093.42
Hong Kong	2635.60	2374.42	2620.11	3258.92
UK	2275.73	2168.23	2502.89	3041.27
China	830.03	955.19	1980.61	2967.05
Germany	1887.42	1794.45	2112.15	2529.07
Singapore	862.41	975.62	1425.27	2122.14
Belgium	1456.00	1395.36	1666.15	1810.62
Japan	1782.20	1515.58	1868.86	1718.88
Italy	1299.51	1210.64	1360.60	17.08.33
Bangladesh	874.41	1005.59	1179.05	1650.43
Sri Lanka	630.48	633.04	923.37	1323.88
France	1016.88	948.22	1076.88	1293.22
Netherlands	875.80	866.82	1050.63	1281.11
Indonesia	394.87	535.53	828.20	1126.19
Saudi Arabia	809.61	829.25	943.19	1122.93
Spain	663.03	679.51	812.59	994.10
Iran	221.96	253.89	656.43	920.02
Malaysia	601.10	776.33	751.32	891.32
Thailand	528.69	635.29	713.04	829.62
Total (incl. others)	44147.44	43976.01	52856.28	63622.50

Taken from Site
Major Commodities Of Export

PRODUCTS	US$ MILLION		%CHANGE	%SHARE IN TOTAL
	2002-03	2003-04		2003-04
All Commodities	52856.28	63622.50	20.37	100
Gems & Jewellery	9053.38	10537.61	16.39	16.56
Textiles	5942.47	6469.28	8.87	10.17
Readymade garments	5704.68	6104.53	7.01	9.59
Drugs, Pharma & fine chemicals	2567.16	3124.83	17.60	4.91
Machinery & Instruments	2013.65	2778.88	38.00	4.37
Manufacturer of Metals	1852.42	2414.37	30.34	3.79
Ores & minerals	2001.23	2346.88	17.27	3.69
Prim. & semi fin iron & steel	1625.69	2146.13	32.01	3.37
Leather & leather manufactures	1853.12	2030.69	9.58	3.19
Transport equipment	1337.36	1897.49	41.88	2.98
Plastic & linoleum products	1224.84	1743.74	42.36	2.74
Electronic goods	1255.99	1690.88	34.63	2.66
Marine Products	1435.27	1323.99	-7.75	2.08
Dyes & Intermediates	712.69	1024.89	43.81	1.61
Rubber manufactured products	485.08	587.30	21.07	0.92

Import
India's import policy is influenced by many factors such as effective use of industrial, consumer requirements as well as foreign exchange. The main aim of import policy is to promote foreign trade and make indispensable imported goods easily available.

Imports during April-June, 2004-2005 were valued at US $ 23445.70 million. This sector also experienced marvelous growth and rose to US $ 32360.13 million representing an increase of 38.02 in April-June, 2005-2006.

India's Import of Principle Commodities
(US $Million)
Products	2002-03	2003-04
Petroleum Crude & Products	17685.31	20624.05
Electronic goods	5616.95	7515.36
Pearls precious & semiprecious stone	6078.50	7147.18
Gold & silver	4299.39	6835.41
Non electrical machinery	3574.87	4735.14
Organic chemicals	1890.36	2758.66
Vegetable oils (edible)	1818.86	2547.33
Transport equipment	1902.32	2148.18
Coal, coke & briquettes	1242.86	1413.65
Iron & steel	884.04	1410.98
Inorganic chemicals	1142.66	1274.28
Metalliferous ores & metal scrap	1040.48	1253.36
Textile yarn & fab., made-up articles	972.87	1252.77
Professional inst, optical goods etc.	1136.13	1229.67
Artfcl. resins, plastic matrls. Etc.	783.86	1082.87
Non ferrous metals	668.25	945.00
Electrical machinery	665.82	866.14
Wood & Wood products	403.15	713.17
Manufactures of metals	489.56	689.05
Medicinal & pharma. Products	593.58	644.91
Chemical material & products	453.16	632.48
Fertilizer manufactured	358.55	500.14

Major Sources of Import
Imports (Value US$ Million)
Countries	2000-01	2001-02	2002-03	2003-04
USA	2844.37	3160.34	4455.11	4875.49
China	1494.92	2043.33	2799.29	4059.06
Belgium	2868.84	2772.41	3721.56	3904.01
Switzerland	3148.84	2880.53	2335.92	3317.29
UK	3142.98	2571.93	2784.22	3184.41
Germany	1751.60	2035.01	2410.77	2918.98
Japan	1835.52	2153.76	1841.10	2649.26
Australia	1063.01	1310.55	1340.26	2627.36
Korea Republic (South)	891.03	1145.26	1525.96	2460.07
Indonesia	904.42	1040.34	1384.45	2101.80
UAE	654.42	918.21	959.48	2065.15
Malaysia	1151.60	1137.40	1469.22	2050.62
Singapore	1435.68	1308.53	1438.54	2035.33
South Africa	1019.72	1445.80	2098.92	1896.98
Hong Kong	838.90	731.35	975.11	1496.52
Italy	719.96	707.18	814.09	1073.04
France	627.48	847.13	1097.02	1057.34
Russia	517.19	537.33	594.15	962.05
Taiwan (Taipei)	506.98	561.18	664.45	770.91
Total (incl. others)	50056.27	51588.41	61571.55	77236.66