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of state-run and private enterprises were classified as "sick industrial
units" which then obtained state subsidies, as can be seen from the
following Figure.

Source: Singh, R.S(ed: Industrialisation in India, Structure and Pattern,
New Delhi 1992 P. 119

In the context of economic cooperation with industrialized coun
tries like Germany it must be kept in mind that in India there are a few
powerful concerns as against a large number of non-competitive enter
prises. Politically motivated technology policy, which was primarily
concerned with the nuclear, satellite and armament industry, led to a
neglect of technological modernisation in many branches of industry.
India tried to compensate for this deficit in the past decades by purchasing
licences, but this strategy only marginally improved the technological
standard of various industrial products. In the framework of new indus
trial and foreign trade policies these competitive disadvantages are
expected to be minimised.

3.4 India’s international trade relations

India's share in world trade presently amounts to approx. 0.5%, which is
half as much of Austria's and one-fourth of the foreign trade volume of
Hong Kong or the People's Republic of China. This low foreign trade
volume has however increased in the wake of liberalisation. The total
volume of foreign trade (import and export expenditure) increased from

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