Globalisation

'Communication Technology' has been the single most important economic force shaping all societies over the past half-century with geography, national borders and time zones becoming irrelevant with 'the new communication revolution'. In today's changing world, global electronic commerce is growing so fast and creating new opportunities for trade that no country can afford to miss it. Such explosive innovations and developments in science and technology have deeply influenced the direction and trends in international trade. The role of international trade in the process of economic development is widely recognized. International trade brings a variety of static and dynamic gains and thus increases the capacity for development. Larger the volume of trade, greater is the potential for development. Economic history finds success stories of various countries, which were relatively underdeveloped at one time but were converted to the category of developed countries through foreign trade. Trade is as old as human society itself, as no man, and more so, no society, can ever be self-sufficient. In ancient times trade was in the form of barter, but afterwards, not only did trade change from barter to money, but from a stroke of a computer keyboard, people could enter into a transaction not only in goods and services but also in stocks and bonds, financial lending and national and international currency dealing from one corner to another corner of the world. Export promotion being one of the main facets of fast and steady growth, considerable attention has been given to export incentives since the nineteen sixties. It has been realized that "export growth is not a luxury" for India. It is a prerequisite for adequate foreign exchange earnings, to maintain the tempo of economic development without sacrificing the country's self-reliance. However, exports can play an effective role "as an engine of economic growth" in Indian conditions. Export trade is a vital variable in the Indian economic situation. It plays a paramount role in Indian economic development. It is indeed exports that activate the use of unexploited natural and human resources, break the limitations of the domestic market, strengthen and organize the stagnant economy and minimize the dependence on foreign aid, which, since long is believed to accelerate the pace of economic transformation. Exports are a key factor in the development process of any economy. The logical grounds can be considered in terms of both, the direct and indirect gains of exports in a developing economy like India.