Liberalisation of trade and investment regime was brought about to stimulate international competitiveness of industrial production.
Foreign investment and technology was to be also introduced in the economy. The primary aim was to promote the efficiency of the industries by using modern technologies.
For protecting domestic industires, India's thrust was on "quantitative restrictions on imports". This was attained by keeping tariffs very high.
But it reduced the efficiency and competitiveness of the domestic industries. Ultimately these policies led to slow growth of the manufacturing sector. On the other hand the trade-policy reforms aimed at:

1. Removal of quantitative restrictions on imports and exports.
2. Removal of licensing procedures for imports.
3. Reduction of tariff rates.
4. Abolition of import licensing was an important reform.
5. Export duties were removed to increase the competitiveness of Indian goods in the global markets.