The Foreign Trade Pattern Of India

Foreign trade plays an important role in the economic development of a country. Trade policy is an important part of the economic strategy, serving the overall strategy of a country’s economic development. The formulation of a country’s trade policy is based on the present situation of economic development. Foreign trade pattern formed under the guidance of correct trade strategy is to promote the rapid development of economy, and the improper trade policy is not conducive to the healthy development of economy. Therefore, the choice of foreign trade policy and the foreign trade pattern formed by this influence become an important research topic in the academic circle.India is a developing country with a rising power, and the “unique economic growth model” is presented in the economic reform. This uniqueness is mainly reflected in: first, the economic reform in India has insisted on the principle of evolution; second, as early as in the period of La Gandhi, India has focused on the development of service industry as a key development industry. These two features are also reflected in the evolution of foreign trade mode of India. India’s foreign trade liberalization reform is a gradual procedure, on the other hand, India’s foreign trade structure change is also different from other East Asian countries, showing a unique foreign trade model. The development of India’s foreign trade model as a case study of foreign trade development, to study the evolution of foreign trade policies and patterns, the development of foreign trade in the development of underdeveloped countries has important theoretical and practical significance.Firstly, this paper reviews the relevant literature of India foreign trade mode. Followed by the development of foreign trade policy, including the development of the export promotion policy and the import restrictions, the conclusion is drawn that India foreign trade policy underlines import substitution industry, and pay attention to the development potential of the industry. Concerning the analysis of the evolution of foreign trade mode since the reform of India, the foreign trade structure of India is studied by RCA and foreign trade dependence index. Due to the current economic globalization, the production internationalization of a country’s total exports contains a lot of foreign value-added content, so this paper tries to use the value-added data to eliminate the drawbacks of this statistic. Finally, based on the theory of “Vent for Surplus”, the foreign trade mode of India is evaluated. In the end, Compare the made of China, namely, “foreign trade reform firstly and domestic reform secondly” and the mode of India, namely, “domestic reform firstly and foreign trade reform secondly”, then put forward the corresponding policy recommendations.