GEOGRAPHICAL DIVERSIFICATION OF INDIA’S FOREIGN TRADE PORTFOLIO: EXPLORING THE DIRECTIONS OF INDIA’S TRADE-FLOW

Abstract

The liberalization reforms were initiated in India by eliminating various tariff & non-tariff barriers from the imports of technologically advanced production inputs and capital goods with the primary motive of facilitating the up gradation and modernization of the export-oriented production units thereby enhancing the exports. This study will discover the reality behind the contribution of such productive imports in export enhancement by analyzing the overall trade balance figures. This study will assist in the scrutiny of India’s trading partners yielding favorable and unfavorable trade balance so as to formulate the future strategies and international policies accordingly. This research may also prove beneficial for the exporters and international traders by providing guidance in the identification of existing major export destinations as well as those having export potential for India in future in the light of the implications of regional integration and trade agreements entered into by India with its various trading partners. The study will also provide the researchers with a snapshot of the geographical orientation of India’s foreign trade in terms of the extent of its trade-flows across different regions including EU, North America, Asia and Oceanic, OPEC, Eastern Europe, Asia and Africa among others. Such analysis will assist in framing India’s future international policies by considering the dominating regions having a significant potential of influencing the trade position of India through their economic and political activities. The scope of this research is limited to the study of foreign trade statistics from 1991 since the instigation of liberalization reforms in Indian economy