Indian Imports & Exports

India is today one  of the most exciting markets for foreign tradewith a large base of  import and export centric industries. The Indianmiddle class whose size exceeds the  population of several Europeancountries put together with a large purchasing power and  skilled managerial and technical manpower provide India with distinct advantages in global trade.

Until the foreign exchange crisisof 1991 India's import-export policy had the three  objectives ofpreserving employment in import-competing industries through trade and other barriers, promotion of self-reliance across all industries especiallyexport led  sectors and revenue raising through foreign trade tariffs.This created an inward looking  economy where all exports were desirableand all imports were to be restricted.

However since 1991, India hasembarked on a programme of economic and trade  liberalisation impactingthe contours of the country's foreign trade in a very big way.  Thisprocess has further been hastened by the country's active role in GATTand WTO.  India has agreed with these bodies for a structured andgradual dismantling of its  existing foreign trade tariff structurewhich is even now restrictive with a near free trade  scenario by2005.

The results of this new traderegime contrary to alarmist predictions by some India's  forex resourceshave swelled and the country was one of the very few islands of stability during the recent Asian crisis. This positive experience has enabled the government to  negate opposition from political and bureaucratic establishments.