FOREIGN TRADE POLICY REFORMS IN INDIA: IMPACT ON TRADE PERFORMANCE

In this paper, researchers study and analyse the impact of foreign trade policy reforms on India’s trade performance since independence. Initially after independence, India followed protectionism, using import substitution and strict trade controls to support domestic business and industries. This approach became unsustainable, and resulted in inefficiency and slow growth. In 1991, country was facing a balance of payments crisis. And hence, India started major economic reforms, lowering barriers of trade, ending licensing, and moving towards a market-driven forex rate. These changes started a period of privatisation, liberalization, globalization, trade expansion, and focus on exports. The researchers used secondary time-series data from 1991–92 to 2022–23 to analyse trends in exports, imports, and total trade. The findings approve a significant improvement in trade performance during the period of reforms. Trade volumes increased sharply, exports became more diversified, and India became more integrated into the world economy. However, growth patterns remained cyclical and were strongly affected by global events such as financial crises and the COVID-19 pandemic. Despite strong growth, total exports remained behind total imports due to ongoing high import demands. The researchers suggest further policy focus on export diversification, digital trade processes, SME support, and building resilience to global shocks to continue improving India’s global trade standing. Keywords: Foreign Trade Policy, Export-Import Policy (EXIM), Economic Reforms, Foreign Trade Performance.