This volume on India is one of a series of research projects
on exchange control, liberalization, and economic development,
undertaken for many less developed countries. The study deals with three
major topics: exchange control, liberalization, and growth. First, under
'The Anatomy of Exchange Control', the methods of allocation and
intervention in the foreign trade and payments practised by the
government during the restrictive period 1956-66 and their economic
impact are discussed. Then, a detailed analysis of the 'Liberalization
Episode' which covers the policies in the period 1966-68, including the
June 1966 devaluation, and the episode's effect on price level, economic
activity, and exports is given. Finally, the overall growth effects of
the foreign trade regime (broadly defined as exchange rate policy plus
the frame-work of relevant domestic policies such as industrial
licensing), and their possible contribution to India's rather
unsatisfactory economic performance are examined.