Even within the broad strategy of import substitution oriented strategy, there could be two types of policy approaches. First, import substitution in the framework of protection, accorded primarily, by tariff policies. Secondly, import substitution in the framework of protection to the domestic industry, through a mix of policy in quantitative controls and quotas for imports and high tariff rates. In India, we adopted the latter paradigm and thus created a plethora of rigid institutions for the implementation of the license-quota system. This had led to the creation of a high cost economy and created biases against export promotion. However, India has been liberalising her trade policy regime, since the early part of 1980s by gradually removing the import licensing system and adoption of tariff policies for domestic protection. Further, it was in the period after 1991, that comprehensive liberalisation of the import control regime has taken place and this has further strengthened the role of market and competition, both in the domestic production space as also in regard to the international trade regime. Further, with the emergence of a new global free trade regime, under the supervision of the World Trade Organisation, since 1995, India’s approach to trade policy system has undergone radical shift towards free trade and export orientation.