Economic reforms and trade performance: private corporate sector in India

Abstract

Since 1991-92, India has undertaken widespread policy reforms in order to integrate its economy with the rest of the world. In this fact-finding study, the balance-sheet data of 557 private sector companies are considered with several ratios and indicators of performance and trade behaviour. The companies are divided into exporting and non-exporting groups. On the whole, exporting companies are found to be performing much better than non-exporting ones. The policy reforms have, however, helped the latter to improve their margins, though they have been pushed to the lower end of the domestic markets.