Policy reforms: changing pattern of India's foreign trade since 1991

Abstract

Trade Policy was high on the agenda of reform in many developing countries in the I980, a several decade marked by efforts on several fronts. Considerable evidence now indicates a positive association between trade policy reform and economic growth. Since 1991, Indian economy has been constantly undergoing drastic economic reforms. The experience of India with policy reform in some areas has been positive and encouraging. But in some areas the outcome and progress has been discouraging. For the _first time in the history of Indian economy there has been zero growth in industrial production in the year 1991-92. Another important observation was that for the first time India’s manufacturing sector has recorded negative growth of 1.5 per cent in 1991-92. The main thrust of the policy reform is to become Indian industries more competitive internationally. Present study carried out to analyze some aspects of Trade Policy Reforms in India since I991. The policy reforms have resulted in the shift from inward-oriented policy of the past to an outward-looking policy. Labor intensive industries are becoming stronger and their share in export is brighter than capital intensive industries. Traditional items continue to enjoy major share of India’s exports.