Analytical Study of Foreign Trade Performance in India

Author: Nazaquat Husain

Abstract:
Before the beginning of liberalization, India was largely and intentionally isolated from world market to protect its economy and achieve self reliance. Foreign trade was subject to import tariffs, export taxes and quantitative restrictions, while foreign direct investment was restricted by upper limit equity participation, restriction on transfer of technology, export obligations and government approvals. Since liberalization, India’s international trade increased rapidly with the contribution of total trade in goods and services to the GDP rising from 16% in 1990-91 to 48.8% in 2014-15. India’s major trading partner are the European union, China, United States and United Arab Emirates. Major export commodities included Gems & Jewellery, Textiles & Allied Products, Chemical & Related Product, Petroleum Crude & Products, Agriculture & Allied Products etc. Major Import commodities included Petroleum Crude & Products, Electronic Items, Gems & Jewellery, Chemical & Related Product, Machinery & Base Metals etc. After economic liberalization, India achieved 6-7% average GDP growth annually. Nowadays, Indian economy became world’s fastest growing major economy.

Keywords:Foreign trade, import, export, liberalization, GDP, Indian Economy, CBRC system.

DOI:

International Journal of Trade & Commerce (Vol: 6 Issue:2)