This thesis discusses India's Industrialization and Trade policies and their impact on the Indian economy before and after 1991. The findings of this thesis indicate that these policies have played an important role in developing India's economy. The adoption of an Import Substitution strategy before 1991 helped, in most cases, to contain the balance of payment problems within manageable levels, however, it did not stimulate and enhance economic growth and India's competitiveness in the world market to the same extent The extensive use of an Export Promotion strategy during after 1991 has resulted in significant changes leading to higher growth rates and increased competitiveness of Indian products in the world markets, as well as improvement in foreign reserves and the birth of a new dynamic export industry - the software industry. Consequently, it is recommended that for India, an Export Promotion strategy under the guidance of the Government will be more productive than an Import Substitution strategy. Guidance is needed because of the risk of market failures as well as the influences of economic factors and non-economic factors, both of which are very complex.