Trade Policy Reforms in India
Geethanjali Nataraj NCAER, New Delhi For the ICRIER-SABER workshop, 29-30 June p, 2009, New Delhi.
Trade Policy in India
• Trade Reforms form the crux of the economic reforms in India. • Export Promotion has been and continues to be a major thrust of India’s trade policy • Accordingly, policies have been aimed at creating a friendly environment by eliminating redundant procedures, increasing transparency by simplifying the processes involved in the export sector and moving away from quantitative restrictions, thereby improving the competitiveness of Indian industry and g p reducing the anti-export bias. • Steps have also been taken to promote exports ...view middle of the document...
Emergence of India • Impact of External Sector Liberalization
1980 90 1980-90* 1999 00 1999-00* 2000 2007 2000-2007**
Note : Figures are in percentage and as CAGR *WDI, 2002, World Bank ** Economic Survey 2007-08
India’s strategic and Important role in global trade governance l b l d
• Started making substantial contribution since Seattle 1999-raising implementation issues • Ending the practice of exclusion of developing countries in core negotiating groups. • US and EU checked f d h k d from i imposing their views i h i i on other members • Created and sustained counter-balancing alliances G-20, G-33, NAMA-11
India in the Doha round of negotiations
• India played a pivotal role in alliance building. building Eg. New QUAD • Influencing agenda – India’s tough stance aided by others saw the exit of competition, investment and government procurement from the Doha round of negotiations. • P Pro-active stance on services trade i i d liberalisation.
India’s role in post-Doha multilateral trading system
• To sustain and improve south-south cooperation p p • To play a pro-active role in implementation will be crucial-delivering on development through increased trade. • To further strengthen trade and economic ties with LDC’s, duty-free, quota free market access. • To popularize trilateral development cooperation for better trade-related capacity building of less income countries.
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Important highlights and positive points of the presentation Evolution of trade policy reforms in India Tariff reforms Trade in Services Comparison on trade reforms in India and China. China Anti-dumping issues. Return of protectionism Behind the border constraints Key problems and future agenda of trade policy
Important Issues in trade policy which the p ese presentation does not d scuss o o discuss
• Impact and changes in the different phases of trade policy p g p p y reform in India. • Comparison of India-China though useful but actually not comparable. India can draw useful policy lessons from the Chinese experience. • Details of export promotion measures through FTP, EXIM Policies, Policies incentives to exports/exporters etc. etc • Impact of WTO on India’s trade policy. • Role of India in global trade. • Trade policy and the global economic crisis. • Agenda for future trade reforms in India and plausible constraints. constraints
Trade Policy Response to Global Economic Crisis ( Source : OECD)
• Restore confidence by governments working together • Avoid protectionist responses in the short run • In the medium term delivering real opportunities to return to stable economic growth....