India started liberalising its economy in general, and its industrial sector in particular, from early 1990s. One of the objectives of liberalisation was to make Indian 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) liberalising foreign trade and currency transactions and (c) initiating steps to encourage foreign investment inflows, preferably foreign direct investment (FDI). The new Foreign Trade Policy, 2009-2014 announced on August 27, 2009, aims to achieve an annual export growth of 15 percent with an annual export target of US$ 200 billion by March 2011. This book examines the impact of trade liberalisation policy on the growth and productivity of manufacturing sector.
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