The Export-Import policy 1992-97 brought about many fundamental changes -in India’s external trade policy. It gradually laid the foundation of globalization ‘of Indian economy by initiating liberalization and making Indian industries to face competition from foreign MNCs. Until 1992 Indian markets were highly protected and the Indian government used to give many incentives to the Indian exporters. But many of these incentives were withdrawn by the 1992-97 and subsequent policies.