Abstract
The liberalization of consumer goods imports and its effect on Indian industries has been a topic of debate in recent times. However, most of the debate has been more on theoretical conjectures than on empirical findings. In this paper, we have analysed firstly the extent of quantitative restrictions (QRs) on consumer goods imports vis-a-vis other imports and then the implications of their relaxation using a computable general equilibrium model for India. Our findings suggest that the Indian industries do not suffer significantly due to freeing of consumer imports. On the other hand, the economy experiences small positive gains from efficient use of resources.
Get full access to this article
View all access options for this article.