Impact of Trade and Commerce on the Politicos Economic Development of India

India has trade relations with the rest of the world namely the United States, China, Australia, Canada, Japan, Great Britain, and the European Union. One nation bought and sold the goods in the International market as all are interdependent. When any change takes place in one country, some of the changes occur in other countries. (Grewal, Sharma 2013). Trade among nations is not free. One has to give money to exchange goods and services between the nations. In the International market, the domestic currency is not accepted. Thus, the concept of exchange rate came into existence. The major aim of the paper is to find out the impact of international trade on economic growth via the secondary sources of data. The paper will also reveal that International trade put an impact on the exchange rate of the country because International trade foreign currency is essential. Furthermore, Due to internal instability, drought, War with China and Pakistan India were not able to increase production in own nation. Thus, India has started to make trade relations with others. Therefore, the Gross Domestic Product of Indian declined and the growth of the Indian economy became stagnant. Therefore, the dependent variable will be the exchange rate and dependent variables will be inflation, interest rate and balance of trade, exports in GDP, Gross Domestic Product, and Imports in GDP. Testing will be done through multiple regression and correlation.