International Trade-Boon or Bane for Economic Growth

International Trade has exerted a reflective sway on the economic growth of a country. It has been observed that with the advent of LPG policy of the Government and lifting bans on free trade, the developing countries, particularly India has developed enormously over the years. The advancement and innovations in the areas of Science, Technology and Communication, Infrastructure, Retailing, Banking, Education etc have undisputedly contributed to the growth of the country and this is possible due to the free trade policies of the government. The need for going global was felt for the time first in India during 1990s when the then finance minister, Dr Manmohan Singh initialized the economic liberalization plan. Since then, India has progressively turned into one of the economic leaders in the world. Remarkable developments have taken place in the leading sectors contributing to an increased growth rate. Global Trade gives consumers and countries the opportunity to be exposed to new markets and products. Almost all kind of products and services can be found on the international market. Imports and exports are accounted for in a country's current account in the balance of payments. Though economic policies and reforms contribute majorly to the growth of the country, they are not free from drawbacks. This conceptual paper attempts to discuss and put forth the good and bad side of the international trade.