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ndly the policies also provided special packages to the troubled domestic firms. However, the new trade policies also had some negative impacts on domestic industries and individual firms. A detailed discussion based on the counter arguments on trade liberalisation is provided in the following sections of the report.

Moreover, significant dismantling of the licensing policy was undertaken by the newly appointed government which was headed by Rajiv Ghandi in 1985. The first sign of changes towards trade liberalisation occurred when the new government decided to remove licensing barriers from more than twenty different sectors of industry, and hence open up domestic markets to foreign trade and competition. However, this approach raised many concerns amongst critiques since there was a degree of uncertainty as to how local firms, who were previously under the protection of government legislations, would react to the foreign markets and more crucially how it would impact the performance levels of domestic firms. Another counter argument made against the new trade reforms was that import liberalisation would lead to a sudden surge in imports, which will lead to greater international competition and would harm infant industries. On contrary, many reports seem to indicate that the majority of domestic producers were able to deal with the challenges of competition derived from trade liberalisation. Furthermore, the new measures were only operational until 1991 and had a rather short-run effect on industry growth; the main reason for this was due to the assignation of the current president. Hence, a newly replaced head of state along with new ministers' from the same political party were sworn into parliament during the same year.

The new Prime Minister Narasimha Rao was faced by the overwhelming task of improving the several economic problems the nation was experiencing. Therefore, the government decided that there was an urgent need for a change in reforms and therefore decided to pursue a new set of policies that would be in favour of liberalising trade within the domestic economy. The first step taken by the government was to abolish the licensing policy which had failed considerably in achieving its aims and objectives, with the exception of a few industries that were still protected due to national security, environmental and public safety reasons. Moreover, some of the main aims of the government with regards to engaging in complete trade liberalisation were to, firstly liberalise domestic industries from licensing approvals, secondly to support improvements in local technology through imports of foreign technology, thirdly to attract foreign direct investment from MNCs by opening the economy, and finally to reduce the laws that were preventing local firms acquiring new resources, technology and knowledge. 

The trade liberalisation policies also offered automatic clearance on imports of goods and services made by foreign companies, which attracted more FDI and also encouraged the growth of different industries. However, the extent to which these policies have helped the efficiency and growth of local firms competing in the same industries as their foreign counterparts has raised concerns. Many argue that, such policies have made it easier for MNCs to take本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。