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COMPONENTS OF TRADE POLICY:
External sector reforms beginning with 1991 included dismantling of trade restrictions along with tariff rationalization, a move towards current account convertibility, liberal inflows of private capital, removal of restrictions on dividends, royalties, technical fees outflows and gradual liberalization of restrictions on outflows involving residents. To be more specific, the trade policy changes included simplification of procedures and removal of procedural bottlenecks, removal of QRs, broadening of export incentives and export promotion schemes to a large number of non-traditional and non- manufacturing exports, strengthening the export production base, technological up gradation and improvement of product quality, identification of thrust areas and thrust products, shift from direct export subsidy to indirect promotional measures and phased removal of all BOP related QRs by 2001.
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