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.