The Ministry of Commerce is responsible for the external trade and related matters such as export promotion measures, commercial relations with other countries, development and regulation of export oriented industries and commodities and State trading.
The Ministry formulates and implements policies in the sphere of foreign trade, reflected in the export-import policy of the country. In addition, the Ministry also undertakes promotional measures to promote exports.
Trade policy liberalisation began in June, 1991, and focused on liberalisation, openness, transparency and globalisation.
Image Source: thehindubusinessline.com
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The reform package focused on outward orientation in the economy from import regulating-activity to export promotion activity, moving away from quantitative restrictions to tariff protection and improving the competitiveness of the Indian industry to meet the global market requirements.
Trade policy reforms have provided an export-friendly environment conducive to accelerated export performance with simplified procedures.
Trade reforms revised continuously since 1991 have helped to strengthen the export production base, remove procedural irritants, facilitate input availability besides focusing on quality and technological up gradation and improve competitive edge.
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After a setback during 1991-92, when exports declined by 1.5% in terms of dollars, revival of exports started during 1992-93. Indian exports registered an average growth of 20% in dollar terms during 1993-94 to 1995-96.
However, this high growth could not be sustained and export growth rate declined to 5.3% in 1996-97 and to 1.55 during 1997-98.
During April-December, 1998- 99, India’s exports were valued at US $24,287 million registering a decline of 2.88% in dollar terms, though in terms of rupees, the growth was positive and high at 11.69%.