Trend and balance of trade position of India’s Foreign Trade: An analytical study of pre and post- liberalization period

Abstract

Trade between two or more Nations or countries is thought as Foreign Trade or World Trade. Foreign Trade simply means exchange of products and services among the countries. There are two major reasons for foreign trade occur among the countries. Firstly, no countries able to produce all the products its need because of climate and other reasons and secondly, international specialisation of labour and production gives variety of economic advantages. Before mid-1991, foreign trade of India suffered from strict bureaucratic and discretionary controls. In July 1991.,Government of India finally initiated the long awaited and expected economic reform in trade industry and monetary policy. During post liberalization periods, Government of India introduced a replacement economic reform policies like liberalization, privatisation and globalization. Liberalization means removal of entry and growth restrictions on the private sector enterprises whereas globalization implies integration of Indian economy with the opposite economies of the globe. India’s trade was changed significantly into the post liberalization period. After the new economic reform, volume of trade rose up and composition of trade was also rose up. GATT was signed by 23 countries in 1947. India was one among the founder member of GATT. The most objective of GATT was establishment of World Trade regime during which countries would gradually liberalise trade among themselves. Therefore, reduction of tariff on interchange manufacturers was adopted a serious goal for GATT. The signing of the ultimate act of the Uruguay round by member nations of GATT in April 1994 paved the way for the putting in of the planet Trade Organization (WTO). An agreement to the current effect was signed by 104 members. The WTO agreement came into force from January 1st 1995 and India become a founder member of the globe Trade Organization by ratifying the WTO agreement on December 30, 1994.The main objective of this study is to analyse the trend and balance of trade position of India’s foreign trade(1949-50 to 2021-2022). The information associated with present study is collected from secondary sources. The collected data has been analysed with the assistance of varied statistical techniques like average, median, skewness kurtosis, percentage, variance, annual rate, compound annual rate, tabular and graphs. For testing the hypothesis t-test has been applied. The finding of the paper is that, there is a significant positive relationship in trend and balance of trade position of India’s foreign trade after post liberalization-period (July 1991).