1500 BC - 1947)Post - Independence Phase (1947 - 1990)Post Trade -Liberalization Phase. (from 1991)Phase of developmentCharacteristicsPre- Independence PhaseTrade with far-off lands in West Asia and beyond 1780-1860: India becomes an exporter of raw cotton, opium, and indigo. 1919- 1939: both imports and exports of India declined.Post - Independence PhaseExport PERFORMANCE and five-year plan1970-1990: a market with mobility of factors of productionPost Trade -Liberalization PhaseEconomic reforms in 1991 aimed at establishing macro-economic balance, economic growth, and regain external creditworthiness.Foreign Trade Policy 1991The second phase:This phase can be divided into five sub-phasesThe first phase PERTAINS to the period from 1947-48 to 1951-52:India COULD have liberalized imports, but on account of place by the united KINGDOM on the utilization of the sterling balances, it had to continue wartime controls.Since our balance of payment (BPO) with the Dollar area was heavily adverse. This is also necessitated India to devalue her currency in 1949.By the large, the import policy continued to be restrictive during the period.The second phase covering the period from 1952-53 to 1956-57:The liberalization of foreign as a goal of trade policy.Import license was granted in a literal mannerAn effort also made to encourage export by relaxing export control, reducing export duties, abolishing export quotas, and providing incentives to exports.Liberalization led to a tremendous increase in our imports, but export did not rise appreciably.Fast deterioration in our foreign exchange reserves (FERs)The third phase from 1957-58 to June 1966:The trade policy was reoriented to meet planned economic development.A very restricted, import policy was adopted and import controls further screened the list of imported goods.On other hand a vigorous export promotion drive wasIt was in this period that India’s trade policy was thoroughly reviewed by the Mudaliar Committee in 1962.The fourth phase started after the devaluation of the rupee in June 1966:Started after the devaluation of the rupee in June 1966.During this period, the trade policy attempted to expand export and strongly liberalized imports, export promotion was given a big boost through the acceptance and implementation of the recommendation of the Mudaliar Committee (1962).The major recommendation included the increased allocation of Raw materials to export-oriented industries, income tax relief on export earning, export promotion through import entitlement, removal of disincentives, and setting up of export promotion advisory council, a ministry of international trade.The last phase after 1975-1990:The government adopted a policy of import liberalization, with a view to encouraging the export promotionDuring this phase market with mobility of factors of production, remained in focus.Therefore option '3' is correct here.