Main Article Content
Abstract
World economy has witnessed a paradigm shift towards market oriented economic policies since 1990s. This in turn with the implementation of New Economic Policy in India has helped it to gain access to ‘world markets, modern technologies and collaborations’. Foreign trade has become an effective instrument of economic growth and employment generation (Mathur, 2009). Since 1991, the Government of India has introduced a series of reforms to liberalise, privatise and globalize the Indian economy, with emphasis on external sector. The new trade policy abolished the import licensing with respect to import of most machinery, equipment and manufactured intermediate products. A number of duty remission and exemption schemes were in place to facilitate exports.