India's Trade Reforms Since 1991.

1. FTP 2004-09, 2009-14, 2015-20: Recognized that trade is an end in itself, aiming to stimulate economic activity and generate employment.
2. Trade Statistics (2017-18):
• Exports: $302.84 billion
• Imports: $459.67 billion
3. Global Share:
• India's share of global merchandise exports was 2.2% in 1948, dropped to 0.42% in 1980.
• After trade reform measures, India's share rose to 1.7% in 2016.
• Import share increased from 0.6% to 2.4% during the same period.
4. Export Diversification:
• Special trading arrangements facilitated the diversification of exports to high-growth regions like Asia, CIS countries, Africa, and Latin America.

India's foreign trade policies have played a pivotal role in shaping the country's trade dynamics, facilitating economic growth, and increasing its global presence in merchandise exports. The move from protectionism to liberalization has contributed to India's integration into the global economy.

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Special Economic Zones (SEZs) and Trade Reforms Since 1991

Special Economic Zones (SEZs): Introduced in 2005 under the SEZ Act, SEZs were established with the aim of promoting economic activity, boosting exports, attracting domestic and foreign investment, creating employment, and developing infrastructure. The objectives of SEZs align with the broader goal of enhancing India's global competitiveness.

India's Trade Reforms Since 1991: The period post-1991 witnessed comprehensive economic reforms, with a central focus on globalizing the economy and liberalizing foreign trade. Key trade-related reforms include:

1. Devaluation of Currency (1991): Devalued the currency to stimulate exports and enhance competitiveness in the global market.
2. Rupee Convertibility (1992): Introduced rupee convertibility on the trade account to incentivize exporters and facilitate international trade transactions.
3. Reduction in Customs Duty (1991): Reduced peak customs duty from over 300% in 1991 to 10% on most non-agricultural industrial goods, primarily supporting exports.
4. Procedural Simplification: Streamlined procedures for export activities, with no Goods and Services Tax (GST) on exports.
5. SEZs Implementation (2005): The establishment of SEZs as a strategic initiative to provide designated areas with favorable conditions for economic growth, attracting investments and promoting exports.
6. Free Trade Agreements (FTAs)/Cepa/Ceca: Engaged in bilateral and regional trade agreements to facilitate trade and strengthen economic ties with partner countries.
7. WTO-led Global Trade Integration: Adherence to the World Trade Organization (WTO) agreements and commitments, contributing to global trade integration.
8. Incentives for Exporters: Provided incentives for exporters, including interest rate subsidies (subvention), sector-specific packages, and other measures to boost export activities.
9. Diversification: Efforts to diversify export products and markets to enhance resilience and competitiveness in the global economy.

Impact: The cumulative effect of these reforms has been significant:

• Remarkable growth in exports.
• Job creation.
• Enhanced foreign exchange reserves.
• Improved competitiveness of the Indian economy.
• Attraction of Foreign Direct Investments (FDIs).

These initiatives collectively played a crucial role in positioning India as an active participant in the global economy and fostering economic development through increased international trade and investment.