Report No. 61
Difference between the effects of export and the effects import.- We had already referred to the importance of foreign trade and customs duties in our national finance and economy, we have also pointed out that the States' power to impose taxes on the sale or purchase of goods should not be unduly curtailed as that may adversely affect the States' finance and economy. In considering the meaning of "occasion" we should keep in view both these aspects. And we should not ignore the impact of export and import trade in its proper perspective on the industrial growth and development of our country. We should in this connection note not only the relative importance of export and import but also the difference between the two so far as our national economy and economic growth are concerned.
Thus, increase in exports not only improves India's foreign exchange position and increases her foreign exchange reserves by reducing and ultimately eliminating adverse balance of trade and payments but also directly encvurages and accelerates the industrial and agricultural growth and development of the/country. Increase in imports has just the reverse effects. It tends to weaken our foreign exchange position and to deplete our foreign exchange reserves and thereby cripples our capacity for self-reliance in the economic sphere, attainment of which should, as far as practicable, be the aim of any self-respecting nation. If imported foreign goods, articles and materials flood our internal markets, then the goods, articles and materials produced in the country may find it difficult to compete with imported goods and in this process imports directly tend to hamper and hinder the growth and development of our industries, trade, business and agriculture.