International trade is defined as the exchange of goods and services between two or more nations. International trade has experienced a huge change in the past 15 years. Along with the exchange of goods and services exchange of knowledge has superseded our nation. India has emerged as a software giant at the international level and it is earning huge foreign exchange through the export of information technology. Economic prosperity of a country is evaluated on the basis of the advancement of international trade of the nation. It is therefore, considered the economic barometer for a country. Income from International trade constitutes a huge share in the economic development. Major Exports • agricultural and allied products-2.53% • ores and minerals-9.12% • gems and jewellery-26.75 • chemical and allied products-24.45% • engineering goods-35.63% • petroleum products-86.12% Major Imports • petroleum and petroleum products-41.87% • pearls and precious stones-29.26% . • inorganic chemicals-29.39% • coal, coke and briquettes-94.17% • machinery- 12.56% • Bulk imports include fertilisers-67%, cereals-25.23%, edible oils-7.94% and newsprint-5.51. India has trade relations with all the major trading blocs and all geographical regions of the world.