New Trade Policy-1991 Onwards Assignment Help

New Trade Policy-1991 Onwards Assignment Help
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New Trade Policy-1991 Onwards Assignment Help

A Brief Note on New Trade Policy-1991

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Main Features of New Trade Policy-1991

We have seen a remarkable change in the business policies in the year 1991 after the adoption of liberalization measures. It was a massive landmark step in the economic history of our country and it was basically taken after the economic crisis that the country faces during that period due to the balance of payment situation. The 1991 new trade policy has a great significance in our country as after the adoption of this policy the crisis with which the country was going through was converted into an opportunity and various fundamental changes were introduced in the economic policy of our country.

Many changes were implemented in the trade policy with the adoption of a new trade policy. Some of these features are discussed as follows:

  • Free import and Export: With the introduction of the new trade policy certain liberalization and substantial simplification has been carried out in the economy of the country. In the year 1996 tariff line wise import policy were introduced in the country with the help of which 6161 tariff lines were made free in India. With Exim policy that was introduced in the year, 2000 certain quantitative restrictions were removed on various import items. This helped to boost the economy of the country.
  • Rationalisation of tariff structure:  The Government has reduced the rate of excise duty with the recommendation of Chelliah Committee. It was seen that the budget of 1993-94 was reduced from 110% to almost 85%.  The government has also reduced the import duty on non-agricultural products and currently it is only 125 percent.
  • De canalization: Before the introduction of new trade policy, import and export are generally canalized in India with the help of various private sector agencies. In the year 1991, the Government has announced s supplementary trade policy with which 16 export item and 20 import items were de canalized.  Apart from that in the year 1992 various item such as newspaper, non-ferrous metals, fertilizers, raw materials, rubber and many other items also de canalized. In the year 2001-2002 various, another essential item such as wheat, rice, petrol, diesel, maize, urea, etc. also came under exim policy and these items were allowed to import through State trading agencies.

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