Impact Of Trade Reforms On India's External Trade

The liberalization process, which started in 1980s, had become intensive by 1991 due to severe BOP crisis coupled with changing external economic environment. To get over the crisis The Government of India enunciated economic reforms and undertook macro stabilization and structural adjustment programme.The basic objective of stabilization and structural adjustment programme was firstly to reduce fiscal deficit, secondly to liberalize the domestic economy by relaxing the restrictions on production, investment, etc., and thirdly to liberalize the external front by relaxing the restrictions on international flow of goods and services, technology and capital. In the liberalization process the third aspect, i.e. reforms in trade sector assumes greater significance due to the emergence of WTO and globalization.