Question

Explain the salient features of trade policy after liberalization.

Answer 1

1. Important quotas have been done away with.

2. The policy of import licensing has almost been scrapped.

3. There is a comprehensive moderation of import duty to enhance competitiveness in the domestic market.

4. Export duty has been withdrawn to enhance the competitiveness of Indian goods in the international market.

Briefly, trade policy after liberalization is to facilitate the integration of the Indian markets with the rest of the world with a view to enhance economic growth through global competition rather than non-competitive controls and protection.