International Trade and Long Term-A Few Issues of Growth Strategy for India

For developing economies, technological change and micro-level efficiency is as important as capital accumulation as a source of long-term economic growth. International trade is an important source of incentives in generating both intentional and by-product technological change by increasing aggregate economic activity (market size) and competitive conditions. In the present context, selective policy intervention on the production side may provide a cutting edge in realising dynamic gains through trade.