"Trade openness in India has delivered. Trade liberalisation has done wonders to India... No country has grown more than 6 per cent for longer period without trade growing very rapidly," Panagariya said at an event here.

He said that in the 1980s, "we were fighting for trade liberalisation in India and at that time it was a contentious issue. But on Thursday it is not a contentious issue. "Export to Gross Domestic Product (GDP) was 7 per cent in 1991, now it is close to 25 per cent".
Panagariya noted that trade liberalisation and literacy can go hand in hand. Panagariya also noted that India's import to GDP ratio in 1950s was at around 10 per cent of GDP, which in 1970s came down to 4-5 per cent of GDP.
Most of the South East Asian economies including Singapore, South Korea and Taiwan maintained exceptionally high growth rates between the early 1960s and 1990s on the back of rapid increase in trade.

Latest News  from Business News Desk