Foreign Trade of India: 1991-2014

The world's economy has changed rapidly, in both the horizontal and vertical spectrum. These changes clearly demonstrate that no nation can isolate itself completely from the rest of the world and survive. Additionally, the recent explosion of information technology has generated new waves of dynamism and has virtually reduced the entire world into a global village. International trade is considered a catalyst agent for sustaining and accelerating economic growth. All the factors of production are not adequately available in a single country. Hence, countries engage in international trade, mitigating the disadvantages of disproportionate geographical distribution of productive resources. International trade decidedly increases the exchangeable value of possessions, means of enjoyment, and wealth of the countries concerned. For about 40 years, foreign trade in India suffered from strict bureaucratic and discretionary controls. However, beginning in 1991, the government of India introduced a series of reforms to liberalize and globalize the economy. The major changes to trade policy in the post-1991 period have included: simplification of procedures, removal of quantitative restrictions, substantial reduction in the tariff rates, liberal inflows of private capital, shift towards market-determined exchange rate, focus on export growth, and entering into regional trade agreements. In view of the growing importance of foreign trade in India's economy, this book provides a comprehensive description and analysis of post-1991 developments in the country's foreign trade.