On the eve of independence in 1947, India's foreign trade was characterized by several key features:
1. Dominance of British Trade Relations: The country's trade was largely focused on exporting raw materials, such as cotton, jute and tea to Britain and importing finished goods in return. This trade pattern resulted from the exploitative economic policies imposed by British colonial rule, which hindered India's industrial development.
2. Limited Diversification of Trading Partners: India had limited trading partners outside the British Empire. The colonial rule discouraged India from actively engaging in trade with other countries, and the majority of its foreign trade was confined to British colonies. This lack of diversification in trading partners restricted India's economic growth and hindered the development of a more dynamic foreign trade landscape.
3. Low Share of Industrial Exports: India's foreign trade was characterized by a relatively low share of manufactured or industrial goods in its export basket. The economy was primarily agrarian, and the majority of exports consisted of primary agricultural commodities. This limited India's ability to earn foreign exchange and hindered the development of a self-reliant industrial base.