What are the consequences of trade liberalization on developing economies after decades under a system of import substitutions and other restrictive policies?
What are the consequences of trade liberalization on developing economies after decades under a system of import substitutions and other restrictive policies?
When India became an independent country in 1947, its first prime minister, Jawaharal Nehru, developed economic policies, including import substitution, heavy tariffs, and government licensing; that were designed to foster economic independence and development. Over time, these policies stifled economic growth and India grew isolated from other countries. In the early 1990s the country agreed to adopt a series of trade reforms aimed to improve its economic wellbeing and foster growth. This research brief provides economic data, tariff rates, and sales figures for 800 Indian companies to consider the impact of trade policies on developing economies and the consequences of trade liberalization.