Goods Made By Indian Company's Helped Indian Economy?

ECONOMY

Most of the time developed industrial nations that are the most vocal regarding free trade agreements have huge advantages regarding their (already competitive) industries so they are just acquiring markets for export. since the domestic production capabilities of the less developed country is inferior its firms will go out of business. Thus free trade in reality might be beneficial only for one of the parties. Of course according to economic theory the above is not a problem because the people fired can just go and start making something else they have a competitive advantage in. It is remarkable how much this is not happening in reality increasing unemployment instead.

So while free trade is considered generally good it is by no means uncontroversial. Most countries that push for free trade used to heavily protect domestic industries until they become competitive on a global level.

Regrading proofs economics is still pretty controversial about what constitutes a healthy economy and what can be considered good development. This means that depending on your interpretation you can easily argue both for and against free trade. In the end this idea is very similar to most recommendations based on economic theory: It should be benefical but the real outcome depends on an infinite number of unobservable and unquantifiable variable and even that outcome is open to a number of interpretations.

Also several country's such as China Goods Made By Indian Company's Can Help Indian Economy? keep their exchange rates artificially low which gives them an unfair advantages. Consuming such goods would definitely harm the importing economy.

 If you did that (used only local products) and then every other country's people did the same thing, then everyone would have tp be self sufficient. But India does need things from abroad - such as oil. To pay for them, we have to export stuff that we make, like denim trousers while labelled for the likes of lee and levis. If they decide to only use Amercian denim for the same reasons that you decide to buy Indian toothpaste, we can't export our denim and much of our other stuff.