Trade Liberalization and Industrial Productivity in India

Beginning in the early 1990s, India started liberalizing its economy in general, and its industrial sector in particular. One of the objectives of liberalization was to make India's industries more efficient, productive, and competitive in the global market. Toward this end, the government of India pursued three sets of reforms: (a) disbanding the complex network of industrial licensing, industrial controls, and permit system; (b) liberalizing foreign trade and currency transactions; and (c) initiating steps to encourage foreign investment inflows, preferably foreign direct investment. This book examines the impact of trade liberalization policy on the growth and productivity of manufacturing sector.