COMPONENTS OF TRADE POLICY:

External sector reforms beginning with 1991 included dismantling of  trade restrictions along with tariff rationalization, a move towards current account convertibility, liberal inflows of private capital, removal of  restrictions on dividends, royalties, technical fees outflows and gradual liberalization of restrictions on outflows involving residents. To  be more  specific, the trade policy changes  included  simplification of procedures  and removal  of procedural bottlenecks, removal of QRs, broadening of export incentives and export promotion schemes to a large number  of non-traditional  and  non- manufacturing exports,  strengthening  the export  production  base, technological up gradation and improvement of product quality, identification of thrust areas and thrust products, shift from direct export subsidy  to indirect promotional measures and phased removal of all BOP related QRs by 2001.