Planning for Trade: An Exercise in the I-O Framework for the Indian Economy

Liberalization of India's foreign trade sector was one of the main agenda of the New Economic Policy (NEP) which was introduced in June, 1991. The Indian economy is being opened up and a liberal trade regime is prescribed. The argument is that open economies lead to a more efficient allocation of resources. It is believed that an appropriate trade policy can help to push the economy too much higher levels of growth.