CBSE Class 10 Answered

The Indian economy is far more open to the external sector than it was fifteen years ago.  There exists strong evidence to believe that the economy is being propelled by strong fundamental growth impulses which would sustain in the years to come.  This openness has empowered the Indian economy to become more competitive internationally.  For example, the automobile components industry and the generic drugs industry are in the process of becoming important players in the global market. The growing international competitiveness of the Indian economy is reflected in the steady growth of Indian exports, including services exports.

Rapid economic growth resulted from a mutually reinforcing interaction of external trading opportunities with the favourable waves of internal growth promoting impulses within the economy. The role of international trade is an instrument in reinforcing the mainsprings of the internal autonomous growth impulses.