Contributions of Various Factors in Growth of Output and Employment Vis-A-Vis Liberalisation of Trade in India

This paper presents an analysis of impact of international trade an the shares of various factors for growth of production and employment in the Indian economy. The period of study is from the financial year 1979-80 to 1996-97. This period has witnessed significant changes in the policy framework regarding international trade in India. While prior to the year 1984-85. the policy of Import Substitution (IS) was followed in India, gradual transition to Export Promotion (EP) led policy was undertaken from 1984-85 onwards. It later prepared ground for further liberalisation of industrial and foreign trade policies during 1991-92.