Role of Investment Friendly Policies for Strengthening India's International Trade - An Overview

This study examines the role of investment-friendly policies in strengthening India’s international trade between 1990 and 2025. Using a systematic review of forty peer-reviewed studies, the research analyses the impact of key initiatives such as SEZs, FDI liberalization, Make in India, Production-Linked Incentive (PLI) schemes, and the Act East Policy on trade performance, foreign investment inflows, and sectoral competitiveness. Findings reveal a strong positive correlation between investment reforms and trade growth, particularly in the services and manufacturing sectors, while highlighting a recent shift toward sustainable and green trade aligned with the United Nations Sustainable Development Goals (SDGs). The study also identifies research gaps, including the need for integrated quantitative models, long-term sustainability assessments, and deeper exploration of under-researched sectors such as agriculture, renewable energy, and MSMEs. Overall, the findings confirm that investment-friendly policies are central to India’s trade success and underscore the importance of their continued evolution to ensure competitive, inclusive, and responsible international trade.