A Study of Analyzing the Role of Indian Government in Promoting International Trade

International trade occupies a central position in the growth trajectory of the Indian economy. Given its developmental needs and resource constraints, India relies significantly on imports to meet domestic demand for essential commodities such as crude oil, capital goods, and advanced technology. At the same time, the country has built a strong export base spanning sectors like textiles, pharmaceuticals, engineering goods, and, more prominently, services such as information technology. This dual engagement underscores the strategic importance of trade in sustaining economic expansion and integration with global markets. In the post-liberalisation period, India has progressively moved towards greater openness. However, its trade policy framework continues to reflect a degree of caution. Tariff levels, although reduced from earlier decades, remain comparatively higher than those of many developed and emerging economies. Similarly, investment regulations in certain sectors still exhibit restrictive features. This has led to a dichotomy in how India is perceived globally—on one hand as an increasingly integrated and fast-globalising economy, and on the other as a system that retains elements of protectionism. Notwithstanding these perceptions, a significant policy shift has become evident in recent years. The government’s approach has gradually transitioned from a producer-centric model to one that prioritises consumer welfare. This shift is reflected in efforts to enhance competition, improve product quality, and expand consumer choice through calibrated liberalisation. Furthermore, India has been actively advocating for a more balanced and inclusive global trade regime, with particular emphasis on services trade, where it holds a comparative advantage. Against this backdrop, the present study seeks to examine the structural changes in India’s international trade. Specifically, it focuses on analysing trends in the volume, composition, and direction of trade over time. Such an analysis is essential for understanding the evolving dynamics of India’s engagement with the global economy and for assessing the broader implications for economic policy and development.