Explain the foreign trade policy after globalization.

1.	Explain the foreign trade policy after globalization.
Answer» India’s foreign trade policy after globalization (1991) : Though India made progress after independence, it was heavily indebted to international financial institutions. It was forced by the International Monetary Fund (IMF) to adopt economic reforms and undergo globalization. Hence, in 1991 India reformed its economic policies to boost trade and investments. India left its old and restricted foreign trade policy and adopted a new, bold and outward trade policy. India also allowed its currency i.e. Indian Rupee should be converted into foreign currencies at market rates from the earlier method of converting at official rates. ’ It made import-export licensing easy. Today, strict licensing method exists only for crude, edible oils and chemical fertilizers. With promotion of FDI and privatization, foreign companies can now sell variety of goods in India. After globalization India’s trade with non-traditional trade partners i.e. new countries increased. The new trade policy aimed at increasing India’s percentage share in world trade. India became a member of World Trade Organization (WTO) in 1995. India changed its trade policy according to the rules framed by WTO. For example, India made changes in import-export rules for agricultural goods, trade related investment measures, etc.

Answer»

India’s foreign trade policy after globalization (1991) :

Though India made progress after independence, it was heavily indebted to international financial institutions. It was forced by the International Monetary Fund (IMF) to adopt economic reforms and undergo globalization.
Hence, in 1991 India reformed its economic policies to boost trade and investments.
India left its old and restricted foreign trade policy and adopted a new, bold and outward trade policy.
India also allowed its currency i.e. Indian Rupee should be converted into foreign currencies at market rates from the earlier method of converting at official rates. ’
It made import-export licensing easy. Today, strict licensing method exists only for crude, edible oils and chemical fertilizers.
With promotion of FDI and privatization, foreign companies can now sell variety of goods in India.
After globalization India’s trade with non-traditional trade partners i.e. new countries increased.
The new trade policy aimed at increasing India’s percentage share in world trade.
India became a member of World Trade Organization (WTO) in 1995. India changed its trade policy according to the rules framed by WTO. For example, India made changes in import-export rules for agricultural goods, trade related investment measures, etc.

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