wto implications for indian economy
Post on 04-Jun-2018
226 Views
Preview:
TRANSCRIPT
-
8/14/2019 WTO Implications for Indian Economy
1/11
[Document Title]
NOTICE
Please contact the appropriate department for validating the version of this document and any changes.
Classification: Genpact Public
-
8/14/2019 WTO Implications for Indian Economy
2/11
Impact of WTO on Indian
Economy
Classification: Genpact Public
-
8/14/2019 WTO Implications for Indian Economy
3/11
WTO & implications for Indian
Economy
One of the most dramatic events that have taken placein later part of 20th century was culmination of
GATT 1947 into WTO, which came into force on1st January 2005. This WTO has set expectationshigh in various member countries regarding spurt inworld trade where India has insignificant share in the
pie-Only 0.75% at the most. Even in IT exports theshare of Indian exporters is just peanuts in view ofoverall world market.
Classification: Genpact Public
-
8/14/2019 WTO Implications for Indian Economy
4/11
Problems facing India in WTO & its
Implementation
Predominance of developed nations in negotiationsextracting more benefits from developing and leastdeveloped countries
Resource and skill limitations of smaller countries tounderstand and negotiate under rules of variousagreements under WTO
Incompatibility of developed and developing
countries resource sizes thereby causing distortions inimplementing various decisions
Non-tariff barriers being created by developednations.
Poor implementation of Doha Development Agenda
Classification: Genpact Public
-
8/14/2019 WTO Implications for Indian Economy
5/11
Agriculture seems to be bone of contention for all typesof countries where France, Japan and some countriesare just not willing to budge downwards in matter of
domestic support and export assistance to farmers andexporters of agriculture produce.
Dismantling of MFA (Multi Fiber Agreement) and its
likely impact on countries like India
Classification: Genpact Public
-
8/14/2019 WTO Implications for Indian Economy
6/11
Implications for India
It appears that India does not stand to gain much by
shouting for agriculture reforms in developedcountries because the overall tariff is lower in those
countries. India will have to tart major reforms in
agriculture sector in India to make Agriculture
globally competitive.
Classification: Genpact Public
-
8/14/2019 WTO Implications for Indian Economy
7/11
It is likely that China, Germany, North Africancountries, Mexico and such others may reap benefit intextiles and Clothing areas unless India embarks uponmajor reforms in modernization and up gradation oftextile sector including apparels.
In Pharma-sector there is needfor majorinvestments in R &D and mergers and restructuring ofcompanies to make them world class to takeadvantage. India has already amended patent Act and
both product and Process are now patented in India.
Classification: Genpact Public
-
8/14/2019 WTO Implications for Indian Economy
8/11
What India should do?
The most important things for India to address arespeed up internal reforms in building up world-classinfrastructure like roads, ports and electricity supply.
India's ranking in recent Global Competitivenessreport is not very encouraging due to infrastructure
problems, poor governance, poor legal system and
poor market access provided by India.
Classification: Genpact Public
-
8/14/2019 WTO Implications for Indian Economy
9/11
Our tariffs are still high compared to Developedcountries and there will be pressure to reduce themfurther and faster.
India has solid strength, at least for mid term (5-7 years)in services sector primarily in IT sector.
India would do well to reorganize its ProtectiveAgricultural policy in name of rural poverty and Foodsecurity and try to capitalize on globalization ofagriculture markets.
Classification: Genpact Public
-
8/14/2019 WTO Implications for Indian Economy
10/11
India must improve legal and administrative
infrastructure, improve trade facilitation through cuttingdown bureaucracy and delays and further ease its
financial markets.
India has to downsize non-plan expenditure in Subsidiesand Government salaries and perquisites like pensions
and administrative expenditures.
Corruption will also have to be checked by bringing infast remedial public grievance system, legal systemand information dissemination by using e-governance.
The petroleum sector has to be boosted to tap crude oiland gas resources within Indian boundaries and enteringinto multinational contracts to source oil reserves.
Classification: Genpact Public
-
8/14/2019 WTO Implications for Indian Economy
11/11
Conclusion
It wont be a bad idea if Indian textile and garmentIndustry go multinational setting their foot in westernEurope, North Africa, Mexico and other suchstrategically located areas for large US and Europeanmarkets.
The performance of India in attracting major FDI has
also been poor and certainly needs boost up, if Indiahas to develop globally competitive infrastructure andfacilities in its sectors of interest for world trade.
Classification: Genpact Public
top related