The book examines the trade liberalization measures which were initiated in India during 1991
and which focused on manufacturing industries. This industry was considered because of its
strong inter-sectoral links and its capacity to stimulate the growth of other sectors. The
resulting liberal trade policies involving a reduction in trade barriers and inflows of FDI
capital and technologies were adopted to increase the manufacturing output. However these
measures were most beneficial to those industries whose products have greater demand in
developed countries. Against this backdrop the book breaks down the overall effect of
trade-induced manufacturing growth into scale composition and technique effects to discuss the
impact on environmental externality. In addition to manufacturing activity it also
investigates the effect of other factors that improve with economic growth and examines the
extent to which India's trade-led economic growth allows production activitiesto move to
cleaner technologies and whether India has achieved its economic growth by specializing in
pollution-intensive (low technology) industries. The book also estimates the impact of these
environmental externalities on society's wellbeing.
