India's International Trade Policy Asie.Visions 9, September 2008

Traditionally, the main objective of the Indian International Trade Policy has been to protect its market from foreign competition. Up until the 1980s, India was not interested in exporting its goods and services abroad and not ready to open its economy to foreign investments. The aim of its economic policy was to ensure the country's independent development (the swadeshi principle). At the end of the 1980s, India was one of the most closed economies in the world. Its bilateral trade policy, heavily skewed toward the former communist countries, was full of grand statements about technology transfer, mutually advantageous relations and partnership for development - to very little purpose. The idea of a Free Trade Zone was abhorrent. Therefore, India was left out of the Asian economic boom.