Dynamics of Foreign Trade in Growth and Development of Indian Economy in The Backdrop of Globalization

Abstract For the growth and development of Indian economy, the then government of India headed by Late Hon’ble Prime Minister Sri P.V. Narasimha Rao, and Dr. Manmohan Singh the then Hon’ble Finance Minister in 1991 has been introduced “Liberalization, Privatization and Globalization Policy (L.P.G.) concept as a part of Industrial sector reforms under the backdrop of Gulf war. New Industrial Policy 1991 also has been introduced. The impact of New Industrial Policy, 1991, L.P.G Policy, Disinvestment Policy and the industrial sector reforms greatly transformed the Indian industrial scenario with a new dimension appropriately tracking the Indian economy and to overcome the severe financial crisis prevailed in 1991. These industrial sector reforms, through the L.P.G policy given a clear road map through the establishment of private enterprises, MSMEs, Startup companies. And the foreign trade development happened through exports gaining foreign exchange reserves and to clear off the pending import bills and interest on foreign debts. The New Industrial Policy1991 was an historical revolution, paves the way for the growth and development of Indian economy.