Description

At the time when planning was launched, foreign trade in India did not receive the attention it deserved at the hands of planners. During the course of the first five-year plan, the balance of payment position was found to be satisfactory due to accumulated Sterling balances and a spurt in exports of traditional items and the Korean war But the position after the first five-year plan changed and the balance of trade position deteriorated during the period of second and third five-year plans due to huge demand of foreign exchange. Imports of plant, machinery, components and other equipment were necessary for the massive industrialization of the country during these plans