Internal Trade is very important not only from the viewpoint of the sellers and buyer, but from the viewpoint of the society in general. The impotance of internal trade can be explained as follows :
1) Optimim utilization of Resources :
Internal trade involves buying and selling of goods within the domestic market. the goods are produced by manufacturers. The producers require resources, such as materials, manpower, machione, etc., to produce goods. therefore there are proper utilization of resources.
2) Employment :
Internal Trade facilitates production. So it provides considerable employment to skilled and unskilled workforce in the industry. It is also require a number of middleman like wholesalers and retailers
3) Expands Aids-to-trade :
There are a number of aids-to-trade, such as banking, insurance, advertising, etc. the growth of internal trade helps to expand the aids-to-trade. the expansion in aids-to-trade not only generates employment, but also facilitates more business.
4) Standared of Living :
Internal trade provides employment to millions of people. this results in increase in the income of the society. the increase in income generates more purchasing power.
5) Spread-effects :
Because of the internal trade a number of supporting industries comes into existence. For instance, because of thetrade in textile industry, a number of other related industries come into existence, such as textile machinery industry, dues industry, etc.
6) Developing of Backward areas :
Internal trade facilitates production in backward areas, may be because of government incentives or because of the availability of cheap labour or raw material.
7) Revenue to the government :
Internal trade brings tax revenue to the Government in form of excise duty charged on production, corporate tax charged on profits, custom duty on imports.
8) Economic Development :
All the above factors, i.e. higher employment, higher production, expansion of aids-to-trade, development of backward areas, etc. results in increase in national income. Therefore, there is econoimic growth and development of the nation.