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VOL. 7, ISSUE 3 (2025)
Trade liberalization and its microeconomic effects on Indian industries
Authors
Dr. Peethala Jayanand Kumar
Abstract
Trade liberalization has been a critical driver of economic transformation in India, influencing industries through its impacts on productivity, employment, market competition, and technological innovation. This review examines the microeconomic effects of trade liberalization on Indian industries between 2010 and 2024, drawing insights from 30 recent studies. The findings reveal a dual nature of impacts: while capital-intensive sectors such as IT, pharmaceuticals, and renewable energy have benefited significantly from enhanced access to global markets and technological advancements, labor-intensive industries like textiles and leather have faced challenges, including job displacement and declining competitiveness. Market competition has intensified, favoring large corporations and multinational firms, often at the expense of small and medium enterprises (SMEs). Technological innovation has surged in sectors supported by policy incentives and foreign collaborations, though adoption remains uneven across regions and industries. Gendered impacts, wage disparities, and regional imbalances further underscore the complexities of trade liberalization. This review synthesizes the diverse outcomes and identifies gaps in existing literature, such as the limited focus on the informal sector and rural industries. By interpreting these findings, this article provides actionable policy recommendations to mitigate challenges and maximize benefits, ensuring that trade liberalization contributes to equitable and sustainable industrial growth in India.
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Pages:1-5
How to cite this article:
Dr. Peethala Jayanand Kumar "Trade liberalization and its microeconomic effects on Indian industries". International Journal of Commerce and Economics, Vol 7, Issue 3, 2025, Pages 1-5
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