A STUDY ON FOREIGN TRADE IN INDIA IN THE POST LIBERALISATION ERA

Foreign trade makes a significant contribution to the economic growth of a country. The policy regime in India about the liberalization of the external sector has brought tremendous changes in India’s foreign trade. So, the present study attempts to analyze the trend and composition of trade since 1991 and also to analyze the impact on the economic growth of India. The study reveals that though the total exports and imports both have increased the growth rate of imports is more than the growth rate of exports. It is also noted that manufactured goods comprise the major portion of the export goods while petroleum and crude products contribute to the major portion of the imported goods. The study also reveals that import has a negative influence on economic growth while export and economic openness are positively related to the economic growth of India.