Table of Contents:
- Trade Policy
- Import Substitution Policy
- New trade Policy since 1991
- Make in India Program
- Aatmanirbhar Bharat Program
Trade Policy:
The Policy that promotes or restricts trade is called trade policy. Trade policies are closely related to Industrial policy as both are interdependent
The following are trade policies in India:
- Import Substitution Policy
- New trade Policy since 1991
- Make in India Program
- Atmnirbhar Bharat Program
Import Substitution trade policy
The first seven five years plant up to 1990, Indian trade policy was characterized as inward-looking trade strategies, technically it is called the "Import Substitution" trade policy.
Aims:
- Substituting or replacing imports with domestics production.
- For example, Vehicle import was substituted by the domestic production of vehicles.
How it was done?
The government protected domestic industries from foreign competition.
It was protected in two forms:
- Tariff
- Quota
Tariffs are taxes heavily levied on imported products to make them costlier.
Quota means only a specific quantity would be imported
In this policy, the emulsification of export was not given.
Evaluation of Import Substitution Policy:
- The industrial share has grown 11.8 % from 1950-to 51 to 24.6 %
- In 1950-51, industries were characterized by cotton and jute industry, but in 1990-many a variety of production was done in Indian industries.
LPG reform or New Trade Policies1991:
- Quota system removed
- Liberal Import and export
- Rationalization of tariff barriers
- Denationalization of Industry
- Devaluation of rupees to boost export
- Export houses and complexes
- Special Economic zones
- Focus on Service export
2015-16: Make in India trade policy:
Inviting foreign companies to invest and manufacture in India for domestic and export consumption
Post-Covid; Atmnirbhar Bharat or Self-reliant India:
Aim to produce everything that required for consumption
Reforms:
- Supply chain reforms for Agriculture
- Rationalizing tax system
- Simple and clear law
- Strong Financial System
- Explain the New Industrial Policies in India. (UPSC 2016, 200 words, 15 marks)
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