An Analysis of Indian Foreign Trade in Present Era

Abstract

Foreign trade plays a vital role in the Indian economy. As the country need to import diverse products so foreign trade is extremely important to country. India exports vast number of products and also imports an equal amount of other products. Although India has steadily opened up its economy, its tariffs continue to be high when compared with other countries, and its investment norms are still restrictive. This leads some to see India as a ‘rapid globalizer’ while others still see it as a ‘highly protectionist’ economy. Nonetheless, in recent years, the government’s stand on trade and investment policy has displayed a marked shift from protecting ‘producers’ to benefiting ‘consumers’. India is now aggressively pushing for a more liberal global trade regime, especially in services. This paper is an attempt to analyse the major changes in volume, composition and direction of Indian Foreign Trade.