Export performance of India and its impact on GDP during post economic-reforms period

Abstract

Economic and political policy interventions were reflected on the economic development of the countries' with respect to improving economic and social well-being of poor, market productivity and considerable growth rate in GDP. Specifically in Indian context, these economic decisions have been a considerable influence on inclusive growth of the nation. It is evidence that India embarked on economic reforms in July, 1991, from the effect of a balance of payment crisis. The government initiated economic reforms basically is to provide an environment of sustainable growth and stability. Thereby the LPG (Liberalization, Privatization and Globalization) system has come to the picture for economic progress of the country. The present study investigates the linkage between foreign trade trends of India and its economic development in the light of economic reforms in India since 25 years (1991-2016). The outcomes of the study strongly support that there is a causal relationship between exports to GDP and GDP to exports and also causality between imports to exports in India.