Indo UK trade relation_a critical appraisal
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At the time when planning was launched, foreign trade in India did not receive the attention it deserved at the hands of planners. During the course of the first five-year plan, the balance of payment position was found to be satisfactory due to accumulated Sterling balances and a spurt in exports of traditional items and the Korean war But the position after the first five-year plan changed and the balance of trade position deteriorated during the period of second and third five-year plans due to huge demand of foreign exchange. Imports of plant, machinery, components and other equipment were necessary for the massive industrialization of the country during these plans
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