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The new trade policy of economic liberalization was put into effect from 1991 onwards. The main aspect of economic liberalization is liberalizing the field of foreign trade. This new policy opened the doors of a nation’s economy for worldwide exposure.

Students pursuing Economics are often given assignments on this topic. However, many students face a lot of troubles completing an assignment on Economics topics like: New Trade Policy and this makes them avail of New Trade Policy-1991 Onwards assignment help from BookMyEssay. We have hired the best industry experts who can offer a reliable academic assignment help.

About New Trade Policy-1991 Onwards

In the backdrop of the major Balance of Payment Crisis during the year 1991, the Government to continue the measures announced in the 1980s announced a New Trade Policy 1991 on July 24. The new trade policy was a significant break for the Indian economy. 


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This policy has deregulated the industrial field in a major way. The aims of this new policy included carrying forward the gains that were already made in an industrial sector, correcting the prevalent market distortion from an industrial sector, offering productive and gainful employment, and attaining global competitiveness.

The Features of New Trade Policy Since 1991

The features of the New Tarde policy since 1991 are discussed in our New Trade Policy-1991 Onwards assignment help firm:

Free Imports and Exports: Substantial liberalization and simplification have been performed post-1991. The quantitative restrictions on the import items have been entirely withdrawn.

Decanalisation: A significant number of imports and exports were canalized via the public sector agencies. The trade policy reviewed the canalized items and also decanalised 20 import items and 16 export items. Many imported items were decanalized including non-ferrous metals, newsprint, intermediaries, natural rubber, and raw materials.

Trading Houses: The New Trade Policy allowed the trading houses and export houses to import many items. The government allowed the establishment of trading houses along with 51% foreign equity for promoting exports. A new category of trading houses was introduced known as Super Star Trading Houses. They are entitled to the membership of the consultative bodies regarding trade promotion and policy, special permission for special import licenses at an increased rate.

EOU Scheme: The EOU or Export Oriented Units scheme was introduced in 1981 as complementary to an SEZ scheme. It provided many options in places regarding factors such as ports of export, source of raw materials, availability of technical skills, hinterland facilities, and the existence of the industrial base and the requirement for a huge land area.

Special Economic Zone: A scheme to set up SEZ for promoting exports was announced in the EXIM Policy 2020. The SEZs offers a hassle-free and competitive environment for exports.


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The Objectives of the New Trade Policy 1991

The objectives of the Policy are stated in our New Trade Policy-1991 Onwards homework assignment help online as follows:

  • To give a boost to the economy in the area of globalization
  • It wanted to reduce the rate of inflation.
  • The policy wanted to achieve a higher economic growth rate and build adequate foreign exchange reserves.
  • It wanted to allow the international flow of capital, services, goods, technology, and human resources without a lot of restrictions.
  • It wanted to get economic stabilization and change the economy to a market economy by the removal of unnecessary restrictions.
  • It wanted to enhance the participation of foreign players in all economic sectors.

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