LEDC means that a country is a developing country (as opposed to a developed country). This distinction is connected to the Brandt line which divides the world into developed and developing country, and India is south of this line (=LEDC, less developed country). Some reasons for this is malnutrition, high child mortality and short life expectancy.
Free Trade is favorable to countries that have control over capital. Small and medium enterprises have to strive harder to penetrate the market.
Huge competitors can dictate the prices of their product and affect the market because of monopoly. Trade restrictions favor for those capitalist nation whose technology are advanced and can do massive production.
