Import and Economic Growth in India

Abstract

International trade introduces fundamental changes in a country s economic growth. In fact, newlinetrade is the foundation of modern economic activity. It promotes capital formation and brings newlineinternal as well as external economies of scale in industrial activities through the import of newlinegoods and services. One school of economists advocates that imports in developing countries newlinesignificantly contribute to economic growth whereas the other school believes that economic newlinegrowth promotes imports. newline