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India's Trade Policy

From Import Substitution to Liberalisation

India's trade policy evolved from a closed, import-substitution industrialisation (ISI) model post-Independence to progressive liberalisation after the 1991 economic reforms. The Foreign Trade Policy (FTP) is issued by the Ministry of Commerce and Industry typically every five years. India's approach to FTAs has been cautious — India exited the Regional Comprehensive Economic Partnership (RCEP) negotiations in 2019, citing concerns about Chinese goods flooding the market and inadequate services access.

Key details
  • WTO membership since 1995; India is among the most active users of WTO dispute mechanisms.
  • India's goods exports in FY 2024-25 were approximately US$437 billion; the US, UAE, and Netherlands are top export destinations.
  • Services exports account for another ~US$340 billion annually, with IT/BPO dominant.
  • The UK is a major destination for Indian pharmaceutical, textile, and IT service exports.
In the news

Tracked since June 28, 2026 · last seen June 25, 2026 · updates as the daily brief publishes

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