Research Paper On International Trade In India


There was a gradual relaation in import licensing by the $irtue of port-Import policy of 1955-5. =oods were shifted to ,=> which were pre$iously not there. There was0adrastic0increase in0no. ,f capital0goods in0the list0,=> which0increased from059 in 195to01150 in 19 )&hat" *011+. ;uring the0190s" the0import licensing0of capital0goodsin0the restricted0list was0administered with0less stringency )?ursell" 199+. As a0result"the0import penetration0ratio in the0capital goods0sector increased0from 11 2 to 2in0199- )=older 3 ranganathan" 1990+. @owe$er 0only those0intermediate goods0andcapital0goods were placed0in the category0of ,=> which 0are not produced0domestically.&y 195-"0the unweighted0a$erage of tariffs 0on manufactured 0goods was 0145 2 withmost 0tariff lines for 0 manufacturing 0clustered around 0a range of 140-10 2 )sen" *009+


The >?= )liberali:ation" pri$atisation and globalisation+ was introduced in 1991. Theyrelaed restricti$e import licensing by the help tariff protection. This policy completelyabolished import licensing on most e7uipment and products used for manufacturing. Themain focus of this policy was liberali:ation of capital good for encouraging domestic industryand to increase growth with the help of eports. India’s financial ser$ices are gradually beingliberali:ed )Ahluwalia" 1999+.

There was additionally a huge change in ta rates with thecrest rate diminished from '00 2 to 10 2" and the crest obligation on capital merchandiseslice to 0 2. Traditions obligation rates tumbled from a normal of 95 2 in 1990-91 to *9 2to in 199-9. There was little or no change in the trade policy with respect to consumer goods which remained on the negati$e list )&alasubramanyam" *00'+.,n an a$erage tariff ha$e been reduced from 512 in 199' to ' in 1995. In;ecember 199 around '000 tariff policies were ta!en bac! which were co$ering rawmaterials and capital goods. @ighest tariff rates were reduced drastically to 402 by the year *000 from '002 in 1990. ,ther than these import license continue to be main barrier for imports. ,$er the years0" the number 0of goods sub#ect to 0import licensing 0ha$e been0reduced with an emphasis 0on industrial and 0capital goods 0rather than consumer 0 products )india" 199'+. In 1995" India displayed a system for the e$acuation of remaininglimitations to its trading partners. The changes in le$y and non-duty hindrances ha$e not been #oined by comparable changes on fare appropriations and moti$ating force programs. Theseincorporate salary charge eclusions" sponsored credit" send out protection and insurances.

Exim Bank endeavours to enrich the knowledge of Indian exporters and to enhance their competitiveness with its periodical research studies. The research work, carried out under the broad classification of sector study, country/regional study, state related study, macroeconomic and policy related studies, is published in the form of occasional papers, working papers and books. The Bank's Occasional Paper Series is an attempt to disseminate the detailed findings of research studies to identify avenues for enhancing India's international engagements. The results of the studies can interest exporters, policy makers, industrialists, export promotion agencies as well as researchers. However, views expressed do not necessarily reflect those of the Bank.

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