65 Muzafar Performance Evaluation of India's Foreign Trade

Ahmad Mir, Ahmad Bhat, C Buttan, Muzafar Ahmad, Mir Sajid, Ahmad Bhat, C Buttan
2017 unpublished
To become the highly developed nation trade facilitation is the key component. No country can sustain at the global level without resorting to foreign trade. Foreign trade is a best practicing policy across the globe to achieve the economic growth by becoming one of the players of it. India has also embarked on the same since independence with an aim to become the world's top most one and to sustain the image at the global level. As a fact Globalisation has brought the world under one umbrella
more » ... nd has left its spots everywhere. India has shown a great progress in terms of exports since last few years; but has shown fluctuations over time and even trade deficit; however has a potential to grow at an enormous rate than any other country. Being the availability of the resources in the country it is said that India will be the leading exporters throughout the globe in the coming years. In this paper we will examine how far India has benefitted from the foreign trade and what measures should be taken to sustain and progress in the long run. Introduction: In the 15 th century there was a notion that country's main stay is determined by the gold and the silver. So countries which export more andmore get more and more imports in the form of gold and silver which describe the image of a country at the global level. It viewed the well-being of the own nation to be of prime importance (Mercantilism). Its doctrine was to acquire precious metals to grow rich. Another notion was about the about the countries having favourable factor endowments i.e. resources that could benefit a lot in international trade due to absolute and comparative advantage in producing goods at home in which they are expert. It argues that countries with capital abundant will tend to specialise in capital intensive goods and will export some of these in which they have expertise. Similarly labour intensive will specialise in labour intensive goods. These countries will get benefit from each other and would enjoy positive sum game(Factor Endowment Theory). These theories made the countries realise the importance of international trade: how to gain from the international trade and how to produce the goods efficiently at home and buy those which it cannot produce at home. But it was the time whensome countries were enjoying the positive sum game and some zero sum game. Then there was a focus on positive sum game after wards. At international level many organisations were established for the purpose of favourable trade like UNCTAD, GATT etc. but were not success as most of the big nations enjoyed the element of monopoly and favouritism. Least developed counties suffered a lot and were being getting exploited in the hands of favourable nations. It pressurised the countries to set up their own trade policies (that act as the road map for the progress and prosperity) and to trigger in international trade and to cooperate at international level with other countries to derive benefit. It resulted in the formation of the trading blocks to increase the trading share between the countries. One of the most important developments at the international level was the setting up of WTO which played and is still playing a great role in the enhancement of international trade by acting as a watch dog for the member countries. Before independence foreign trade of India was not being carried on the legalised procedures and was not well regulated. India's foreign trade have shown a vast fluctuations over the time as foreign policies were not well developed. In India Delhi was the main trading centre. Due the availability of river routes that facilitated the