IDEAS home Printed from https://ideas.repec.org/a/bla/asiapr/v3y2008i2p266-285.html
   My bibliography  Save this article

The Role of Trade and International Economic Policy in Indian Economic Performance

Author

Listed:
  • Anne O. KRUEGER

Abstract

India's economic policies have undergone major reforms since the early 1990s. Before that, government regulation and control of economic activity was pervasive, and the trade sector did very poorly. One consequence was that imports were highly restricted and their scarcity was itself a major constraint on growth. After the crisis of the early1990s, trade policy was substantially liberalized. In this paper, the pre‐1990s regime is first briefly described. Thereafter, the economic policy reforms that impinged most directly on the trade sector are set forth, and the response of exports and imports to those changes is outlined. Exports have grown rapidly, from about 5% of the gross domestic product to around 15%, and they continue to grow at an average annual rate of 20%. Improved performance of the trade sector has been a major contributing factor to India's dramatically accelerated growth performance. A final section of this paper assesses the current situation, and sets forth the major policy challenges that will need to be met if that performance is to be sustained, if not improved upon.

Suggested Citation

  • Anne O. KRUEGER, 2008. "The Role of Trade and International Economic Policy in Indian Economic Performance," Asian Economic Policy Review, Japan Center for Economic Research, vol. 3(2), pages 266-285, December.
  • Handle: RePEc:bla:asiapr:v:3:y:2008:i:2:p:266-285
    DOI: 10.1111/j.1748-3131.2008.00112.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1748-3131.2008.00112.x
    Download Restriction: no

    File URL: https://libkey.io/10.1111/j.1748-3131.2008.00112.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Garry Pursell & Nalin Kishor & Kanupriya Gupta, 2007. "Manufacturing Protection in India Since Independence," ASARC Working Papers 2007-07, The Australian National University, Australia South Asia Research Centre.
    2. Jagdish N. Bhagwati & T. N. Srinivasan, 1975. "Foreign Trade Regimes and Economic Development: India," NBER Books, National Bureau of Economic Research, Inc, number bhag75-1.
    3. Barry Bosworth & Susan M. Collins, 2008. "Accounting for Growth: Comparing China and India," Journal of Economic Perspectives, American Economic Association, vol. 22(1), pages 45-66, Winter.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. David KUCERA & Leanne RONCOLATO, 2011. "Trade liberalization, employment and inequality in India and South Africa," International Labour Review, International Labour Organization, vol. 150(1-2), pages 1-41, June.
    2. Rajesh Chadha, 2009. "Moving to Goods and Services Tax in India : Impact on India’s Growth and International Trade," Trade Working Papers 23071, East Asian Bureau of Economic Research.
    3. Takatoshi ITO & Akira KOJIMA & Colin McKENZIE & Shujiro URATA, 2009. "Editors’ Overview," Asian Economic Policy Review, Japan Center for Economic Research, vol. 4(1), pages 1-18, June.
    4. Kucera, David & Roncolato, Leanne & von Uexkull, Erik, 2012. "Trade Contraction and Employment in India and South Africa during the Global Crisis," World Development, Elsevier, vol. 40(6), pages 1122-1134.
    5. Zaki, Chahir, 2010. "A Global Assessment of the Trade Facilitation Effects: the Case of MIRAGE Model," Conference papers 331990, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Prema‐chandra Athukorala, 2019. "Joining Global Production Networks: Experience and Prospects of India," Asian Economic Policy Review, Japan Center for Economic Research, vol. 14(1), pages 123-143, January.
    7. Kucera, David, & Roncolato, Leanne. & Uexküll, Erik von., 2010. "Trade contraction in the global crisis : employment and inequality effects in India and South Africa," ILO Working Papers 994594013402676, International Labour Organization.
    8. repec:ilo:ilowps:459401 is not listed on IDEAS

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ghosh, Saibal, 2013. "Do economic reforms matter for manufacturing productivity? Evidence from the Indian experience," Economic Modelling, Elsevier, vol. 31(C), pages 723-733.
    2. Singh, Nirvikar, 2008. "India’s Development Strategy: Accidents, Design and Replicability," MPRA Paper 12453, University Library of Munich, Germany.
    3. Ajit K. Ghose, 2016. "Globalization, Growth and Employment in India," Indian Journal of Human Development, , vol. 10(2), pages 127-156, August.
    4. Mesquita Moreira, Mauricio, 2010. "India: Latin America's Next Big Thing?," IDB Publications (Books), Inter-American Development Bank, number 413, November.
    5. Deb Kusum Das & Abdul Azeez Erumban & Jagannath Mallick, 2021. "Economic Growth In India During 1950–2015: Nehruvian Socialism To Market Capitalism," Journal of Economic Surveys, Wiley Blackwell, vol. 35(3), pages 926-951, July.
    6. T.P. Bhat, 2015. "Structural Changes in India’s Foreign Trade," Working Papers id:6603, eSocialSciences.
    7. Joseph Francois & Bernard Hoekman, 2010. "Services Trade and Policy," Journal of Economic Literature, American Economic Association, vol. 48(3), pages 642-692, September.
    8. Bussolo Maurizio & de Hoyos Rafael E. & Medvedev Denis & van der Mensbrugghe Dominique, 2012. "Global Growth and Distribution: China, India, and the Emergence of a Global Middle Class," Journal of Globalization and Development, De Gruyter, vol. 2(2), pages 1-29, January.
    9. Castelló-Climent, Amparo & Mukhopadhyay, Abhiroop, 2013. "Mass education or a minority well educated elite in the process of growth: The case of India," Journal of Development Economics, Elsevier, vol. 105(C), pages 303-320.
    10. Los, Bart & Timmer, Marcel P. & de Vries, Gaaitzen J., 2015. "How important are exports for job growth in China? A demand side analysis," Journal of Comparative Economics, Elsevier, vol. 43(1), pages 19-32.
    11. Kumar, Nikeel Nishkar & Patel, Arvind, 2023. "Nonlinear effect of air travel tourism demand on economic growth in Fiji," Journal of Air Transport Management, Elsevier, vol. 109(C).
    12. Asadullah, M. Niaz & Xiao, Saizi, 2020. "The changing pattern of wage returns to education in post-reform China," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 137-148.
    13. Heinrich, Torsten & Yang, Jangho & Dai, Shuanping, 2020. "Growth, development, and structural change at the firm-level: The example of the PR China," MPRA Paper 105011, University Library of Munich, Germany.
    14. Richard Herd & Sean Dougherty, 2007. "Growth Prospects in China and India Compared," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 4(1), pages 65-89, June.
    15. Isaac Abekah-Koomson & Pang Wei Loon & Gamini Premaratne & Teo Siew Yean, 2021. "Total Factor Productivity Growth: Evidence from West African Economies," Global Business Review, International Management Institute, vol. 22(6), pages 1405-1420, December.
    16. Rosés, Joan R., 2008. "Proximate causes of economic growth in Spain, 1850-2000," IFCS - Working Papers in Economic History.WH wp08-12, Universidad Carlos III de Madrid. Instituto Figuerola.
    17. Mr. Ashvin Ahuja, 2012. "De-Monopolization toward Long-Term Prosperity in China," IMF Working Papers 2012/075, International Monetary Fund.
    18. Amit Shovon Ray, "undated". "The Enigma of the ‘Indian Model’ of Development," Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi Discussion Papers 15-01, Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi, India.
    19. Azam Mehtabul & Han Luyi, 2020. "Accounting for Differences in Female Labor Force Participation between China and India," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 20(2), pages 1-17, April.
    20. Choorikkad Veermani, 2004. "Trade liberalisation, multinational involvement, and intra-industry trade in manufacturing," Indian Council for Research on International Economic Relations, New Delhi Working Papers 143, Indian Council for Research on International Economic Relations, New Delhi, India.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:asiapr:v:3:y:2008:i:2:p:266-285. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/jcerrjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.