ABSTRACT
Chapter 2 provides a background overview of the history of trade reforms in India. Starting with policy measures aimed at easing import controls for capital goods and export promotion in the late 1970s and 1980s, the chapter proceeds to a give a detailed account of trade liberalisation policies undertaken in the 1990s as part of the systemic economic reforms in the wake of the balance of payment (BoP) crisis in India. The reforms undertaken in the areas of tariff liberalisation and simplification, relaxation of import licensing regime, phased removal of quantitative restrictions and export-incentive schemes are discussed in the chapter. A brief account of FDI liberalisation policy, changes in EPZ policies, India’s multilateral commitments under the Uruguay Round and participation in preferential arrangements are also included in the chapter.
