External liberalization by India and China: recent experience and future challenges

Abstract

PurposeIn this study, the authors aim to analyze India's trade performance from the period of liberalization until the recent financial crisis, and compare it to China's.Design/methodology/approachThe authors then examine Indian trade and investment policy and also institutional factors that potentially determine these trade patterns and performance, especially where they differ from China's.FindingsFinally, the authors highlight future trade policy challenges for India and also provide suggestions to ensure strong growth in trade and integration with the global market.Originality/valueThis paper contributes by performing a comparative analysis of the Indian and Chinese experiences under trade liberalization and also by outlining potential challenges for Indian trade policy in the future.