The India after independence followed the protectionist policy and implemented different strategies. These strategies to a large extent were dictated by the objectives of the self-reliance and self-efficiency policy. The principal objectives of this protectionist policy were to stabilize balance of payments and to encourage industrialization to fulfill the objectives of self-reliance and self-efficiency. These in turn helps to in reallocation of resources, and create employment opportunities. The strategies, implemented for achieving the objectives of the protectionist policy, can be classified in two broad groups: (a) tariff and (b) non-tariff measures. These policies were basically used to bring about changes in price, volume or other parameters relating to tradable commodities and services.
Since 1991, Indian Economy has been constantly undergoing drastic economic reforms. These reforms have resulted in the shift from inward-oriented policy of the past to an outward looking policy. The present study objective is to analyze the external trade performance of manufacturing sector in India since economic reforms. It is observed that the export performance of electronic industry improved after trade liberalization. However, the export performance electronic industry is higher than the import performance electronic industry in post-liberalized period. On the other side the Balance of Trade of electronic industry was improved in post-liberalized period. The percentage share of Export of electronic industry in GDP is improved but the Net Terms of electronic industry Trades is continued to be declined. This reveals that due to technological innovation and competiveness in the electronic industry is increase due to Import goods from abroad, as it is cheaper in cost and attractive than domestic electronics goods. Therefore, both producers and consumer starts preferring imported good than domestic electronics good. This in turn improved the performance of electronic industry in India as its contribution to economic growth is improved after liberalization.
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