The aims and needs of Foreign trade are:
(i) To raise national income and standard of living:
The aim of foreign trade is to increase the income of the nation and increase the standard of living of the people.
(ii) To enable equal distribution of natural resources:
Every country has a different type of natural resources. A country which has more natural resources gives to other countries. For example, Kuwait has more petrol Hence, foreign trade distributes surplus resources to the needy countries.
(iii) To enable even distribution of agricultural products:
Different countries have different facilities to produce agricultural resources. For example, Cuba produces more sugar, Egypt produces more cotton and Argentina produces surplus wheat. Thus, foreign trade distributes surplus production to needy countries.
(iv) To minimise hurdles in production:
The developing and under-developed countries face a shortage of raw materials, machinery, technical know-how, etc. Through foreign trade, these countries can import goods from other countries.
(v) To reduce differences in economic growth rate:
Economic growth rate differs from one country to another. The underdeveloped countries takes financial and technical help from the advanced countries. This increases international trade.
(vi) To share the benefits of low cost of production:
Foreign trade enables a country to share the benefits of low cost of production by importing goods from the country, where the cost of production is minimum.
(vii) To enjoy the fruits of the development of science and technology:
Due to the advancement of science and technology, the needs of the consumers have increased Internal trade alone cannot satisfy the needs of the people, so international trade becomes essential.

The demerits of Foreign Trade are:
(i) Complicated procedure:
Export and import procedures are very complicated. A layman cannot understand them easily.
(ii) Economic dependence:
The underdeveloped country has to depend on the exporting country which leads to the exploitation of the developing country.
(iii) Adverse effect on the home industry:
International trade provides a threat to the smalland cottage industries at home. These industries cannot stand in competition to the developed countries products.
(iv) Import of harmful goods:
Import of luxury goods and harmful drugs hamper the well being of the people,
(v) World war:
Due to unhealthy competition, enmity among the countries may increase. This may lead to war between countries.
(vi) Political dependence:
It may make one country a slave of other country. Because economic dependence endangers the political stability of the dependent country.
(vii) Exhaust of natural resources:
With the intention of earning more money excessive use of natural resources may take place. This will cause the economic downfall of the country in the long run.

Merits of International Trade.
(i) Leads to specialization:
People trade because it is profitable. When goods are produced on large scale, it promotes the productive ability in terms of labor efficiency and other available resources. This, in turn, leads to. specialization and encourage the production of different types of goods in various countries.
(ii) Increase in consumption capacity:
Foreign trade enables a country to get goods which it cannot produce and enlarges a country's consumption capacity, increasing world output. In other words, trade is an 'Engine of Growth'.
(iii) Provides benefits of large-scale production:
Goods are produced for the world economy, hence resources are fully utilized and all the economies of  Large-Scale production are enjoyed by the producer country.
(iv) Stabilise prices and promote international equality:
Foreign trade equalizes the prices of goods throughout the world. With the help of E-commerce, information reaches every work and corner in a fraction of a minute. Foreign trade enables the consumer to get good quality products at lesser prices all over the world.
(v) Encourages fuller utilization:
Due to better production methods, every country can produce goods by fully utilization of installed capacity. Wastes are reduced. As a result cost of production falls and prices are cheaper.
(vi) Exchange of know-how and establishment of new industries:
A developed country can provide all types of technical know-how, machinery and equipment to the developing countries. This helps in the establishment of new industries in the importing countries.
(vii) Increase employment opportunities: 
The establishment of new industries under foreign collaborations create employment opportunities in the country.
(viii) Development of communication and transport facilities:
The International Trade brings people of different countries together, With the help of internet valuable information is exchanged between different countries. It also. leads to. the development of means of transportation.
(ix) Promotes International Understanding:
Better relationships among trading countries are established. This promotes mutual help, understanding of each other's problems and promotion of world peace.

India's important export and import Items: 

India's important Import items.
i) Minerals, fuels including oil.,
ii) Gems, precious metals.
ii) Electrical machinery and equipments.
iv) Machinery including computers.
v) Organic chemicals.
India's important Export items
i) Petroleum products.
ii) Jewellery.
iii) Automobile.
iv) Bio-chemicals.
v) Pharmaceuticals.