A STUDY ON IMPACT OF INTERNATIONAL TRADE ON ECONOMIC GROWTH IN INDIA

Abstract

Foreign trade plays a vital role in the Indian economy. As the country need to import
diverse products so foreign trade is extremely important to country. India exports vast
number of products and also imports an equal amount of other products. Although
India has steadily opened up its economy, its tariffs continue to be high when
compared with other countries, and its investment norms are still restrictive. This leads
some to see India as a ‘rapid globalizer’ while others still see it as a ‘highly
protectionist’ economy. India is now aggressively pushing for a more liberal global
trade regime, especially in services. This paper is an attempt to analyse the major
changes in volume, composition and direction of Indian Foreign Trade. This article
focuses on the intricate web of foreign trade, its impact on economic growth, global
interconnectedness, and policy formulation. By synthesizing established trade theories,
empirical studies, and contemporary insights, we explore the evolving landscape of
international trade and its implications for diverse economies. Analysis encompasses
the economic significance of foreign trade, elucidating its pivotal role in fostering
growth, creating employment opportunities, and shaping income distribution.
Emphasizing the interconnectedness of global markets, investigate the influence of
trade policies, geopolitical shifts, and technological advancements on trade patterns
and economic competitiveness.