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

Purpose – In 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/approach – The 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. Findings – Finally, 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/value – This 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.