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Growth of Trade:
As far as the growth of exports and imports are concerned, it is evident from Table 17.2 that India has performed better than the world growth rates in recent years and is moving in tandem with developing economies of Asia. India's exports have registered a growth of 25.8 percent in 2003 - 04.The. Corresponding growth rate for developing economies ofAsia and World is 25.3 percent and 19.8 percent respectively. Similarly the imports of India have grown at a rate of 32 percent during the same period. The corresponding growth rate for developing economies of Asia and World is 28.9 percent and 20.3 percent respectively.
Trade-FDI Nexus: Economic liberalization promotes both trade and FDI. FDI could be export-promoting, import substituting or import enhancing depending upon supply and demand f
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