India’s Trade Reform: Progress, Impact and Future Strategy

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I offer a comprehensive analysis of India's trade policy, particularly since 1991, and its impact on the economy.  I provide evidence showing that trade liberalization has had a major impact on the quality and availability of goods and on services growth.  The evidence on productivity growth in the industrial sector varies across studies, however. I also explain why India lags behind China and what India must do to catch up.  The strategy for future liberalization, including a possible U.S.-India free trade area, is discussed.