The export promotion was accorded a very low priority during the initial program of economic development in India. During the 1950s and almost up to mid-1960 export-promotion was not at all considered as an essential element in India’s economic development process. Easy and adequate availability of external assistance from the World Bank and other international agencies as well as developed countries has provided India with more than adequate amount of foreign exchange for financing development as well as essential imports. Hence, the urgency of earning foreign exchange through expanding exports was not there. In addition, because of the large size of the domestic market in India, ‘import substitution’ rather than the’ export promotion’ was considered as a more useful strategy for India’s economic development process. Similarly during the period of the First Three Five year plans over 1950-51 to 1965–66″ Indian economy was in a formative stage. Consequently, India’s capacity to export manufactures or industrial products was extremely limited. Hence, on this account as well, India could not look at international markets especially because of her extremely limited capacity to offer supplies of industrial products.
