Policies Good for India?
This article examines an empirical regularity with respect to Indian industrial behavior and sets out the implications that fallow from the result derived from the empirical analysis. The analysis explores the exporting behaviour patterns of over 1,000 firms with varying degrees of foreign ownership in India far the years 1088 to 1994, and is principally a cross-section based analysis, Since the 1950s, India fallowed a command-and-contral based economy regime. This regime became exceedingly autarkic, particularly In the 1960s, with negative consequences on her ability to make headway in export markets or to attract foreign investment, Since 1991 an economic policy switch is in progress and there have been moves towards a market-based regime in which foreign capital both on the current account via the generation of export sales as well as on the capital account via foreign investments, is expected to play a big part An empirical examination of the consequences of fallowing, or not realty following as happened in the Indian case, liberal trade policies is absolutely necessary since economic policy-making in India seems to be entirely based on ad hocism and intuition and not on the necessary and vital hard facts.
