Effect of foreign trade on Indian Economy

Effect of foreign trade on Indian Economy

Author Name : Divya

ABSTRACT Foreign trade is profitable to the countries or nations on the basis of comparative advantage. Until 1991, India’s trade strategy was mainly depend upon import substitution .The Government of India aimed to open up the economy by applying the LPG policy and do economic reform in 1991.The significance of foreign trade has increased in India due to liberalization, privatization and globalization. During the reform period, India’s GDP increased continuously. After the policy applied export and import both increase simultaneously.However, exports are lower than import after LPG policy due to the fact that India is one of the largest importers of crude oil. The present paper inspect the impact of foreign trade on India’s economic growth.