A Study of Foreign Trade and Review of Trade Policy in India
Author Name : Ravinder Kumar
ABSTRACT: Foreign trade has been one of the most significant determinants of economic development in a country which consist of invert and inflow and outward movement of goods and services. In pre independence period, India’s foreign trade was confined to exports of foodstuff and raw material to industrialized products from these countries. During post independence era, in order to accelerate the process of industrialization developmental imports were encouraged. During 1952-53to 1956-57, liberal trade policy was adopted. Import licenses were granted on large scale on one side and exports controls were relaxed to a grant on the other side. During 1975-76 to 1978-79, globalization has made the national market more interdependent than earlier. The year 1977-78 initiated in a new era of import liberalization in the country. The annual import policy of 1980-81 to 1984-85 also followed the liberal approach. By 1990, 31 sectors were freed from industrial licensing. Since 1991, India has carried out a substantial liberalization of trade in services along with freeing up of foreign investment.