Title:TRANSFORMING INDIA INTO A DEVELOPED ECONOMY – AN INTERNATIONAL TRADE PERSPECTIVE
Author:Prof. Anwesha Ghosh Visiting Faculty ITM, Dombivali and IEIBS Akademia, Thane & Vashi
Keywords:Trade policy, FDI, global trade bodies, Competitiveness, WTO, IMF, Economic development, Developing Countries
Abstract:Indian has traversed a long way in its international trade policy from the time of gaining independence in 1947. Right after independence till the pre liberalization era (i.e during the period from 1947 – 1991), India was following a mixed economy combining the elements of capitalism and socialism. This necessitated the intervention policies by the Govt., substituting the imports that failed to take advantage of the post war expansion of trade. Subsequently, ‘internationalization drives’ and ‘export orientation’ became prominent in the organizational strategies of a number of leading Indian firms and multinationals located in India. These have contributed significantly to improving the competitiveness of firms, industries and the nation as whole. Foreign capital in the form of FDI has also played a crucial role in gradually transforming the Indian economy into a potential source for investments and capital formation so as to further economic growth. It has aided in the transfer of new technology, expansion of domestic business enterprises thereby raising wages and income and in the process of debt servicing. India is a newly industrialized country, has a history of collaboration with several countries, is a component of the BRICS and a major part of developing countries. It has maintained formal diplomatic relations with most countries of the world. Its membership of global trade bodies such as the World Trade Organization (WTO), the International Monetary Fund (IMF), Asian Development Bank, G-20 among others, have offered several benefits to the country in terms of accelerating trade and investments domestically and internationally, thereby putting the economy on a fast track of growth and development. In January 2015, President Obama and Prime Minister Modi embarked on the first-ever U.S.-India Strategic and Commercial Dialogue (S&CD) to economic growth, creating jobs and strengthening the middle class.