Intrnational economy

The stresses of India's planned econo mic development over the past decades arising out of paucity of foreign exchange resources have been reflected in India's persisting balance of payments disequili brium while India's development needs have resulted in increased import and export earnings are not keeping pace with the growth. Although foreign aid has assisted India in coming over its difficulty temporarily, an ending solution can be found only in expanding export earnings.

It is in these circumstances that India has constantly endeavoured to develop a dynamic trade policy aiming at increased export earning through diversification of exports and exploring new markets. Bilateral trade and payments agreements. have become an important instrument in achieving these twin objectives. These agreements have been used to channelise trade mainly with East European Countries.

Economic relations between the developed and under-developed countries of the world are a major recent develop ment in the field of international financial mechanism. It has become a recognised responsibility of the more advanced nations to assist economically the poor ones in order to achieve their enlightened self interest. The most striking result of this is the development of institutional growth of international economic assistance.

The study covers various important issues as which are classified in the con tent of nine units. The first chapter is of introductory nature which deals with the concept of economic relations, impor tance of economic relations and foreign trade and economic development. The second chapter presents a panoramic review of India's foreign trade. The Third Chapter is the study of the Indian Economy. The Fourth Chapter deals with the economy of the East European Coun tries and gives the evidence of economic performance in these countries. The fifth chapter analysis the India's trade with East European Countries and the share of East Europe in India's total imports and exports. The sixth Chapter gives the overview of India's imports from East European Countries and presents the commodity composition. of India's imports from these countries. The seventh chapter deals with the composi tion of exports and brief description of exports to East European Countries. The eighth chapter presents a scenario of Indo-East European economic coopera tion in external assistance and joint collaborations. The last chapter presents a brief summary and contains important findings, suggestions and prospects of trade. These presentation are relevant and useful for those engaged in the field of international economics.