(a) Starting around 1991, some far-reaching changes like barriers on foreign trade and foreign investment were removed in India.
(i) Indian government, after Independence till the early 1990 s, protected domestic manufacturers using trade barriers.
(ii) Indian MNCs also entered into global competition due to removal of trade barriers.
(iii) Foreign companies were allowed to invest in India, which boosted Indian infrastructure.
(iv) This also resulted into a greater number of goods and services being exchanged between countries.
(v) Early 1990 s was the revolutionary time for India to adopt the liberalisation, privatisation and globalisation policy.
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(b) (i) The trade routes connecting India and South Asia to markets both in the East and West and the extensive trade that took place along these routes.
(ii) It was trading interests which attracted various trading companies, such as the East India Company in India.
(iii) Foreign trade creates an opportunity for the producers to reach beyond the domestic markets, Now they can compete with foreign markets.
(iv) Foreign trade has expanded choice of goods beyond domestic markets. It integrates markets of different countries.
(v) The more the countries trade with each other, the more the countries connect with each other through the exchange of goods and services. Moreover, this also facilitates cultural exchange between trading countries.