INDIAN FOREIGN TRADE PERFORMANCE: ISSUES AND CHALLENGES

Economics

Foreign Trade is an engine for development of an economy. As the country need to import and export diverse products, foreign trade is extremely important to country. India exports vast number of products and also imports an equal amount of other products. During the period 1950 -1990, India’s foreign trade suffered from strict administrative controls. Before 1991, the government had adopted conservative macro-economic policies. The major task of the government of India was to put restriction on imports in order to reduce the trade deficit and to give protection to domestic industries from foreign competitions. In July 1991, the Government of India introduced a series of economic reforms stated as New Economic Policy-1991. India opened the doors of its markets to the world wide. During post reform period new dynamism of India’s exports performance has been created with various policies like Industrial policy, EXIM policy. These policies emphasize international competitiveness, efficiency, technological up gradation, inflow of foreign capital and liberal import policy ensuring more and easier access of imported inputs. In addition to the entire policy regime in India regard to liberalization of external sector has witnessed positive change in the post -reform periods. In recent years, the government’s stand on trade and investment policy has shown a marked shift from protecting ‘producers’ to benefiting ‘consumers’. India is now aggressively pushing for a more liberal global trade regime, mainly in service sectors. The study focuses on changing trends of export import in the recent years and to analyze the changes in the direction from and to India and also to examine the BOP situation of India.

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