Impact of Trade Liberalization on the Level of Protection of Indian Industry

Abstract

The staring point of this study was the need to explore the impact of recent trade liberalization in India on the level of protection of Indian industry. This search led to an exploration of the phenomenon of trade liberalization in general and the process in India, in particular, and this provided the backdrop for the study. Trade liberalization refers to freeing foreign trade of the restrictions imposed on it, in the form of tariffs, non-tariff barriers, like quotas, import licensing or exchange control regulations etc. The objective of trade reform is to move toward freer trade and enhanced competition; and trade reform policy involves a number of design issues ego the extent and sequencing of trade reforms that have to be determined by the authorities, in the light of their economic necessity, political feasibility and the administrative capacity.