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Total foreign trade (exports
+ imports) as a proportion of GDP is a common measure of the degree of openness of an economy.
The balance of exports and imports of goods is referred to as the trade balance.
Closed Economy: In a closed economy, no external trade takes place. This means that there are no imports or exports. It indicates a self-sufficient, self-reliant economy primarily growing via its domestic sectors. Another term for a closed economy is Autarky.
It is said that India had a near closed economy focusing more on self-development after 1950s, running upto 1980s, finally opening its economy after the economic crisis of 1991.
Open Economy: An open economy is one that trades with other nations in goods and services and also in financial assets.