In view of the problems associated with developing countries like India, critically evaluate various trade policy options and their suitability in promoting economic growth.

There exists a huge gap in per capita income between developed and developing countries. Most of the world's population lives in the countries that are considerably poor. Efforts to bridge the income gap between developed and developing nations, to raise living standards by increasing income levels and to cope with the uneven development in the domestic countries. With low production base and constraints in value addition. Most developing countries remain marginal players in international trade. To address all these challenges, developing countries like India should follow following trade policy instruments: (a) Attract investment for value addition in their primary sector - This opens up fields of action for macroeconomic policy which range from investment incentives in general to specific incentives for investment in tradeable or non-tradeable sectors. (b) Develop trade infrastructure so as to create economic efficiency in system thus making goods available at low costs (c) Negotiate more trade options rather than foreign aid-Its better to seek trading options with a country than to seek foreign trade for continuous and repeat business and economic upliftment. (d) Negotiate preferential market access in areas of strengths. (e) Build partnership with shared interests (f) Enhance skill level of people for service sector growth and services exports (g) Effective Utilization of Resources: Better utilization of existing resources can boost the economy better than exporting natural resources in raw form. (h) Import quotas: An import quota always raises the domestic price of the imported good. (i) Local Content Requirement: Local content laws have been widely used by developing countries trying to shift their manufacturing base from assembly into intermediate goods.