Indian Foreign Trade Policy

UGC Sponsored

National Seminar On

Dr. B. R. Ambedkar’s Economical Philosophy and Indian Economic Policy in the Global Scenario

24th Octber, 2009

Organised by : Shri Shivaji College of Arts, Commerce & Science, Akola (M.S.)

Indian Foreign Trade Policy

Abstract

Dr. Mahesh C. Dabre,

Smt. L. R. T. College of Commerce, Akola.

Dr. Shrikrishna N. Raut,

Shri Shivaji College of Arts, Commerce & Science,Akola.

Trade is an important apparatus in a society, based on private property and pursuit of individual gain; without it, it would be difficult for its member to distribute the specialized products of their labour. Surely a lottery or an administrative device would be incompatible with its nature. Indeed, it is to preserve its character, the only mode for the necessary distribution of the products of seperate industry is that of private trading and international trading.
The trade policy reforms initiated in 1991 have drastically changed the foreign trade scenatio and have resulted in the shift from inward-oriented to an outward-oriented policy. With the sweeping liberalisation porcess that is currently underway in the foreign trade sector, the level of protection to Indian industry has declined significantly as the government has resorted to a massive cutting down of import tariffs and allowing more liberal imports of a number of goods whose imports were earlier either totally banned or severely restricted. The euphoria and enthusiasm generated by the large-scale trade policy reforms in recent years and talks of globalisation etc. have led many in the official and non-official circles to regard the foreign trade sector in India now as the ‘leading sector’ of the economy - a sector that will change the face of the economy in the coming years giving it a strong push up in the world economy. According to Dr. B. R. Ambedkar, the relative importance of the home market, the degree of state interrention and development of technology are of fundamental importance in planning for industrialisation.
The new FTP takes an integrated view of the overall development of India’s foreign trade and goes beyond the traditional focus on pure expoerts. This would be clear from the following statement in the policy document, “Trade is not an end in itself, but a means to economic growth and national development. The primary purpose is not the mere earning of foreign exchange but the stimulation of greater economic activity”.
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Ref. : 1.Moon Vasant, Dr. Babasaheb Ambedkar Writings And Speeches, Vol. 1 and 6, Education Department, Government of Maharashtra, First Edition, 1989.
2.Mishra S. K., Puri V. K., Indian Economy-Its Developmnet Experience, Himalaya Publishing House, Mumbai, Twenty Sixth Revised Edition, 2008.