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The Project describes all about the World Trade Organization (WTO), its Introduction in the World Economy, the Objectives laid for the Organization, Functions that operates, EXIM Trade Policies, and Scenarios occurred with India Before the formation of WTO & the Benefits gained by India from the organization. The topic discussed in this project has a long history with India as one of the powerful member attached to it. Following the Uruguay Round Agreement, the General Agreement on Tariff and Trade (GATT) was converted from a provisional agreement into a Formal Organization known today as the World Trade Organization (WTO), with effect from January 1, 1995. There were 128 member countries in 1995, which has increased to 144, with India as one of the important member. The Secretariat of t h e WTO i s based in Geneva, Switzerland. According to the current status WTO now accounts for about 97 per-cent of international trade.
TRADE & INEQUALITIES
Where trade has contributed to increased inequality, its impact has g e n e r a l l y being minor to o t h e r s f a c t o r s , m o s t notably Technological Change.
TRADE & STRUCTURAL ADJUSTMENT
If Trade reforms are introduced, economic changes need to b e m a d e . Importcompeting firms a p p e a r t o a d j u s t efficiency & often by reducing firm s i z e . by reducing mark-offs, increasing
TRADE & POVERTY
One of the biggest challenges facing the world community is to how to address poverty.
“The World Trade Organization (WTO) deals with the rules of trade between nations at a global or near-global level. But there is more to it than that.”
23 countries came into an agreement in Geneva on
multilateral Trade. This agreement was
termed as The General
Agreement on Tariffs and Trade (GATT) w h i c h came into e f f e c t on 1st of Jan 1948. These c o u n t r i e s s o u g h t to expand multilateral trade
among them. India was one of t h e founder members of GATT. Many countries signed of GATT to 124. this agreement in 1994 which resulted no. of members
The agreement consists of two main themes: 1) The agreement f o r m u l a t e d some regulations which were to be observed by the member countries. 2) The member countries were to comply with was the Most Favored Nation (MFN) clause.
GATT was not an organization but was a multilateral treaty, it had no legal status. It provided a platform to its member nations to
negotiate and enlarge their trade.
2) Carry on trade in a non discriminatory way. 2) Ensuring full employment through a steady growth of effective demand and real income. . 5) Liberalize tariff and non-tariff measures through multilateral negotiations. GATT mentions the following important objectives.2 PRINCIPLES 1) Follow the Most Favored Nation (MFN) clause. 1) Raising standard of living of the member countries. 4) Expansion in production exchange of goods and services on a global level. 3) Grant protection to domestic industries. 2-1. 3) Developing optimum utilization of resources of the world.1 OBJECTIVES OF GATT The primary objective of GATT was to expand international trade by liberalizing trade to bring economic prosperity. 4) Condemn the use of quantitative restrictions or quotas.4|Page 2-1.
. ii. Mul ti Fiber Agreement (MFA). TRIM is widely employed by developing countries. The agreement on TRIMs provides that no contracting party shall apply any TRIM which is inconsistent with GATT articles. Arthur Dunkel. An illustrative list identifies the fallowing TRIMS as inconsistent:i. 2) Trade Related Investment Measures (TRIMs): Refers to certain conditions or restrictions imposed by a Government in respect of foreign investment in the country. Trade and foreign exchange balancing requirements.5|Page 2-2 THE URUGUAY ROUND Uruguay Round (UR) is the name by which the 8 t h and the latest round of Multilateral Trade Negotiations (MTNs) held under the auspices of the GATT popularly known in Punta Del Este in Uruguay launched in September 1986. Trade in Services. Who came up or Draft of the Uruguay Round consisted of 28 agreements which spelt out the results of Multilateral Trade Negotiations (MTN). Domestic sales requirements. iv. A committee on anti-dumping practices should look into such matters related to dumping. Some of t h e main agreements of t h e Uruguay Round were as follows:1) Anti-Dumping Code: Dumping is to be condemned if it causes or threatens material injuries to an established domestic industry. Trade balancing requirement. Anti Dumping etc. These d i s c u s s i o n s w e r e resolved b y the then Director General of GATT. iii. The main issues in this round discussed wer e of Agricultural Subsidies. Local content requirement.
They usually give the creator an exclusive right over the use of individual’s creation for a certain period of time. etc. The WTO members now accounts for o v e r 97 percent of the international trade. 1995. Insurance. The draft agreement proposed that all restrictions on such services should be waived. According to GATT “Intellectual Property Rights” are the rights given to persons over the creations of their minds. Conclusion: Following the Uruguay Round (UR) Agreement GATT was converted from a provisional agreement into a formal international organization known as World Trade Organization (WTO).6|Page 3) Trade related aspects of Intellectual Property Rights (TRIPs) One of the most controversial outcomes of Uruguay Round is the agreement o n Trade R e l a t e d aspects of I n t e l l e c t u a l Property Rights (TRIPs) including Trade in counterfeit Goods. Switzerland. It serves as a single institutional framework directed by a Ministerial Conference once every two years and its regular business is overseen by a general council. 4) Trade in services Bank. The membership of the WTO increased from 128 in July 1995 to 144 countries by Jan 1st 2002. Transport and Communication. The organization began its function from 1st Jan. . are trade related services. The WTO secretariat is based in Geneva.
well the WTO charter was still being negotiated. WTO came into effect from 1st January. Its membership increased from 23 countries in 1947 to 123 countries in 1994. 1995 to 144 countries as of 1st January. During its existence from 1948 to 1994 the average tariffs on manufacture good on developed countries declined from about 40% to a mere 4%. It came into force in 1948. It was only during Tokyo and Uruguay Rounds that non-tariff barriers were discussed under GATT. GATT focused on tariff reduction till 1973. 2002.7|Page 2-3 FROM GATT TO WTO After World War II over 50 countries came together to create the International Trade Organization (ITO) as specialize agency of the UN to manage the business aspect of international economic co-operation. With increasing use of non tariff barriers and the increasing significance of service sector in the economy the need was felt to bring non-tariff barriers multilateral trade. The membership of WTO increased from 128 in July. 1995. The GATT was provisional for almost half a century but it succeeded in promoting and securing liberalization of world trade. and intellectual property under the preview of . The combined package of trade rules and tariff concessions negotiated and agreed by 23 countries out of the 50 participating countries came to be known as the General Agreement on Tariffs and Trade.
viable and durable multilateral trading system. 3. 6. To help the developing countries to get a share in the growth in the international trade. To insure linkages between trade policies. To promote sustainable development in member countries by the optimal use of resources. 2. 5. environmental policies and sustainable development. To raise the standard of living in member countries by ensuring full employment and by expanding production and trade in goods and services. . To develop an integrated.1 OBJECTIVES OF WTO The WTO has the following objectives: 1.8|Page 2-3. 4. To reduce tariffs and other trade barriers among member countries and to eliminate discriminatory treatment in international trade relations.
. 3. It is responsible for carrying out periodic reviews of the trade policies of its member countries. It facilitates the implementation.9|Page 2-3. 2. It is responsible for the settlement of the differences and dispute among its member countries. It provides the forum for further negotiations among member countries on matters covered by the agreement as well as the new issues falling within its mandate. 6. It assists developing countries in trade policies issues through technical assistance and training programme. administration and operation of the trade agreements. 5.2 FUNCTION OF WTO The basic functions of WTO are as follows: 1. It encourages co-operation within international organizations. 4.
3 STRUCTURE OF WTO .10 | P a g e 2-3.
GATT and how it changed to WTO 3. India and WTO.11 | P a g e 3 OBJECTIVE 1.India’s role in WTO. EXIM policy . How India was benefited before and after joining WTO 7. Uruguay Round and its resolution 4. How WTO had its impact of India 5. function and objective of WTO. To know about the structure. 2. India’s commitment 6.
those living on one dollar or less per day). inter alia. trade barriers (tariff and non tariff) as well as reduce and eventually remove domestic support and system of export subsidies that distort international trade between nations. These problems of trade distortion are most conspicuous in agriculture sector. most of them as small farmers”. This is achieved by developing a set of rules of multilateral trading system which aims to remove. It has been estimated that “three quarters of them about 900 million people – live and work in rural areas. In the field of the trade the World Trade Organization (WTO) is the principal international institution responsible for laying down rules for the smooth conduct of trade in goods and services among nations in this globalized world. Table 1 shows that where as agriculture contributes 3% to the GDP and employs only 4% of The population in developed countries the corresponding figures for developing countries are 26% and 70% respectively. Agriculture is of special significance for developing countries particularly the extreme poor (i.12 | P a g e 4 4-1 IMPACT OF WTO ON INDIA AGRICULTURE Globalization – manifesting in progressive integration of economies and societies has assumed increasing significance in the lives of common people all over the world.e. .
(2001) Proposal for “development Box” in the WTO Agreement on Agriculture. Kaukab. Government of 2002. CAFOD and South Centre.13 | P a g e Table 1: Key differences between agriculture systems in developed and developing countries Parameters Developed Countries Developing Countries (including developed) Nature of Commercial/Export Oriented 3% to 8.3% 26% 27% Subsistence least Agriculture System Share of GDP Contribution foreign exchange Population engaged agriculture in 4% 27% Source: Green. WTO policies impact agriculture principally through the following agreements: . The agriculture was included in the multilateral trading system after the eighth (Uruguay) round of talks under GATT on demand of developing countries who had a comparative advantage in this sector and its benefits were being denied to them. 2003. Action Aid “Food Rights” The WTO Agreement on Agriculture. This was achieved by developing countries only after paying a heavy price in the form concessions on many fronts especially intellectual property rights and services. Ministry of Pakistan. Islamabad. August. (2002) Presentation at Agriculture and WTO Seminar. R. D and Priyadarshi. Commerce. S. stretched from 1986-1994 This trade round and concluded in establishment of WTO and inclusion among others of agriculture in the discipline of WTO.
a social activist espousing farmer’s causes in South India. Agreement on Application of Sanitary and Phytosanitary Standards (SPS):(Dealing with Health and disease related issues) 3.14 | P a g e 1. "There is going to be 'madness' in the agriculture sector. already reeling under severe drought and fall in cash crop prices. Industrialized countries have been giving huge domestic subsidies to their agricultural sector that there is excessive p r o d u c t i o n . What happens to our vegetable oils. rubber." asks K Sundaran. rice. will die once the import curbs are removed and free flow of food items are allowed into India. testing and certification procedures. Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPs): (Dealing with Patents and copyrights. marking and labeling requirements. But despite the concerns of farmers. He says c u r r e n t l y there is a m a s s i v e distortion in the international trade in agriculture. standards. Agreement on Agriculture (AOA) 2. many believe the WTO rules will not adversely affect the Indian agriculture as it is made out. etc) 4. coconuts and fruits. plant breeders rights etc). import restrictions and dumping of agriproducts in international markets. So t h e n better overseas markets will be available for Indian agricultural products . Agreement on Technical Barriers to Trade (TBT): (Dealing with Regulations. Farmers will be hit hard by the WTO regime. Activists cry foul that Indian agriculture. if similar items can be imported cheaply from other countries. packaging. Developed nations have committed to the WTO that they would reduce subsidies and tariff.
000 pharma firms in the country? Well. self-sufficiency in Indian pharmaceutical sector is more than 70 per cent. For instance. As per the EMR provision. the Matrix-Strides merger is only the beginning of the shakeout that the pharma sector in a few years. Indian pharma players are learning to collaborate and consolidate to grow. which are available cheaply. Product patent rules and Exclusive Marketing Rights (EMR) under the WTO could affect a paradigm shift in India's pharma majors. Indian companies are now producing their own AIDS drugs. According to the Indian Drug Manufacturers' Association. many expect a spate of mergers.000 employees working in roughly 20. But now the rules of the game in the pharmaceutical industry will change as India has committed to toe the WTO line on product patents.quality medicines. This has forced nine leading domestic pharma companies to form the Indian Pharmaceutical Alliance that has demanded a more transparent WTO regime for EMR grants. acquisitions and alliances in the domestic pharmaceutical industry in the coming years." points out the IDMA president Nishchal H Israni. How will the WTO rules affect 500. If the industry is to be believed. introduced in 1970. . Pharmaceutical firms grew mainly thanks to the absence of patent protection of medical drugs in the country. "Worldwide. India is a country of very low prices for high. compared to the original products from foreign countries. a product for which original patent was granted prior to 1995. as the impact of WTO regulations kick in. is not fit for an EMR in the country.15 | P a g e 4-2 PHARMACEUTICALS India has one of the most efficient pharmaceutical industries in the world. The Act allowed them to develop and patent alternative processes for products discovered and patented elsewhere. But the imposition of the new WTO rules will begin to threaten India's achievements in the pharmaceutical field. boosted Indian pharma companies. The Indian Patents Act.
The result is many overseas service providers will enter into the services sectors in the country. investment banking. insurance. health. Which in other words means that areas like banking. engineering construction. two obligations apply to all services. They are the Most Favored Nation (MFN) treatment and transparency by way of publication of all laws and regulations. But experts believe India need not be frightened of the WTO rules on services because the country at present has a distinct competitive advantage in many areas that include health. .16 | P a g e 4-3 THE SERVICE SECTOR As per the WTO rules. computer software and other professional services. and many other professional services that are opened up will be bound by the WTO commitments? India will have to open up its services sector to other WTO member countries. thereby reducing the chances of domestic enterprises.
Canada. the Unites States. import of textiles and clothing will considerably increase Indonesia. the European Community. Availability of high-skilled of IT personnel and low cost of labour and operation will allow India to compete in the international market. The phasing out of MFA will boost textile exports from India. Austria. Finland and Norway -. This will force many textile manufacturers to modernize their mills and improve quality.who apply restrictions by way of quota.the United States. MFA at present groups the major importer countries-. It will also increase investment in textiles and joint ventures.17 | P a g e 4-4 TEXTILES AND CLOTHING The WTO agreement on textiles and clothing states that the Multi-Fibre Agreement (MFA) will eventually be eliminated. Taiwan and 4-5 INFORMATION TECHNOLOGY Under the Information Technology Agreement signed under the WTO. But the risk is that as India opens up its market from next month. . Indian hardware and software companies can become major players in the value-added arena. Exporting countries like India are a part to the MFA. from countries like China.
including some who are not members of WTO. India feels that the multilateral system would itself gain if it adequately reflected these concerns of the developing countries. The bindings range from 0 to 300% for agricultural products from 0 to 40% for other products. It also has to see that the different WTO Agreements are translated into specific enforceable dispensations. India is committed to ensuring that the sectors in which the developing countries enjoy a comparative advantage are adequately opened up to international trade. and is a founding member of the WTO. . Under the Uruguay Round manufactured products were bound at 25% on intermediate goods and 40% on finished goods.18 | P a g e 5 5-1 INDIA AND WTO INDIA’S ROLE IN THE WTO India is a founding member of the GATT (1947). so as to create the necessary impetus to enable developing country members to catch up with their developed country counterparts. 5-2 INDIA’S WTO COMMITMENT Under the Uruguay Round India has bound 67% of all its tariff lines. whereas prior to that only 6% of tariff lines were bound. Within the WTO. in order that developing countries are facilitated in their developmental efforts. it actively participated in the Uruguay Round Negotiations. India strongly favors the multilateral approach to trade relations and grants MFN treatment to all its trading partners.
India has some residual quantitative restrictions on imports maintained for balanceof. In May 1997. .payments purpose. imports. At the request of the United States.1 Balance of payments Under the exceptional provision of Article XVIII: B of GATT.19 | P a g e 5-2. India's prevailing agricultural tariffs are well within the bound rates.714 tariff lines at the eightdigit level of the Indian Trade Classification. processed food products at 150% and edible oils at 300%. The Agreement on Agriculture was designed to improve world trade.Payments Restrictions in June-July 1997.2 AGRICULTURE The only commitment India has undertaken under the Agreement is to bind its agricultural tariffs. including those on consumer goods. raise prices of agricultural products and ensure higher standards of living for farmers. This commitment has been fulfilled by India binding its tariffs for primary agricultural products at 100%. a panel was constituted on 18 November 1997 to examine the US allegation that the continued maintenance of quantitative restrictions on imports by India is inconsistent with India's obligations under the WTO Agreement. India presented to the WTO a plan for the elimination of these restrictions in. renegotiation of tariff bindings have been sought under Article XXVIII of GATT. 5-2. whenever we have bound tariffs on agricultural commodities at zero or very low-levels. Under the Uruguay Round. These aggregate to 2. This plan was considered at the consultations with India of the WTO Committee on Balance-of.
The 1994 amendments to the Act of 1957 provides protection to all original literary.related investment measures maintained by it in terms of Articles 2 and 5 of the TRIMs Agreement and Agreement. without giving full effect to the special dispensation provisions of Article 15 of the Anti-dumping Agreement has resulted in trade harassment for its exporters of textiles. cinematographic. India has already notified the trade. polyester staple fibre and 20 other industrial fabrics on to the list of freely importable goods in 1995. musical and artistic works.5 TRADES RELATED INVESTMENT MEASURES already been made to the where foreign foreign Substantial modifications have investment regime. India's achievements in this field have been in the passing of TRIPS plus legislation in the field of Copyright Law. dramatic. The most recent changes bring sectors such as satellite broadcasting. the Indian Government moved cotton and wool yarn. films and sound recordings.20 | P a g e 5-2.4 INTELLECTUAL PROPERTY India is availing itself of the transition periods due to her under Article 65 of the TRIPS Agreement to meet her obligations under the seven areas covered by the Agreement. the illustrative list annexed to the TRIMs . 5-2. computer software and digital technology under Indian copyright protection. India is concerned about the fact that repeated anti-dumping investigation by certain trading partners on the same product lines.3 TEXTILES As per the obligations under the Agreement on Textile and Clothing (ATC) to integrate this sector into GATT 1994 in stages. 5-2. increasing the number of sector investment can take place and also increasing the foreign equity limit on these investments.
6 ANTI-DUMPING Anti-dumping and countervailing duties are imposed under the Customs Tariff Act 1975 and the Rules made there under.over negotiations. 5-2. private leased circuit services as per details given in the schedule of commitments. . In basic Uruguay Round services activities as compared to an average of 23 for India also participated in the spill. India has undertaken commitments in the areas of voice telephone service for local and long-distance (within the service area). With the increasing number by the the of cases. The Act and Rules are on the lines of the respective GATT Agreement on anti-dumping and countervailing duties. Government of India proposes to set up a Directorate General of Antidumping and Allied Duties for expeditious disposal of anti-dumping and countervailing duty cases. 25% of The services sector accounts for employment and 30% of export earnings. The foreign direct investment regime has been liberalized to attract foreign investment in the services sector. shipping. roads. the government is giving added emphasis to improving services such as telecommunications. The time limits and the procedures prescribed under the Indian laws/GATT Agreement is strictly followed d e s i g n a t e d authority.21 | P a g e 5-2. telecommunication services. India actively participated in the negotiations and made commitments in 33 developing countries. ports and air transport. Recognizing the importance of the services sector in achieving higher economic growth. cellular mobile services and other services such as circuit switched data transmission sources. facsimile services.7 SERVICE SECTOR about 40% of India's GDP.
In Article IV of GATS. most of the developing countries have surplus of skilled. As developed comparative similarly advantage in exporting countries capital intensive have a services. India is committed to phasing out the import tariffs on the products covered by the ITA as scheduled. semi. The the level of asymmetry in development of the services sector in developed and developing countries and a commitment concrete measures aimed sector access of developing that the developed countries will take domestic effective service market at strengthening the countries and providing in sectors and modes of supply of export interest to developing countries.skilled and unskilled workers.22 | P a g e While developed countries have surplus capital to invest.8 INFORMATION TECHNOLOGY India participated in the negotiations on the Agreement from the early stages and after examination of the implications of the proposed agreement and extensive discussions with trading partners joined as a participant on 1 April 1997.qualified professionals capable of providing services abroad. 5-2. in developing countries have a comparative advantage exporting labour intensive services involving movement of persons. . there participation Agreement of also developing recognizes is a clear obligation to increase the countries the basic in trade in services. We have a large pool of well.
. effective 1 March 1997. SAPTA became operational on 7 December 1995 and includes preferential tariff concessions on 226 items and product groups.9 REGIONAL TRADE AGREEMENTS India attaches significance to her participation in regional agreements within the framework of multilateral rules. concessions on 902 tariff lines. A second round of S A P T A t r a d e negotiations w a s India granted launched i n January 1996 to broaden t a r i f f concessions.23 | P a g e 5-2. India has been instrumental in setting up the South Asian Association for Regional Cooperation (SAARC). whose major achievement in 1995 was the conclusion of the negotiations on trade preferences within the framework of the SAARC Preferential Trading Arrangement (SAPTA).
Anti dumping measures can be employed only if dumped imports are shown to cause serious damage to the industry in the import industry. Certain types of subsidies would other fall under” prohibited” category. (2) No Subsidy Facilities (3) Absence of TRIMs & TRIPs (4) Lac of Market Scenario & Strategies 6-2 AFTER BECOMING THE MEMBER OF WTO material injury to an established industry.Technical regulation and standards along with testing and certification procedures should not create unnecessary obstacles to trade. . The problems that India faced before the formation of WTO were the following: (1) Absence of Anti – dumping.The draft agreement d e f i n e d certain specific subsidies which would be subjects to various disciplines. domestic reasonable (1)Anti-Dumping .Dumping is condemned if it causes or threatens for administrative. selling and any other costs and for The measures are not allowed if the margin of dumping is de minimize.24 | P a g e 6 6-1 COMPARISON OF INDIAS FOREIGN TRADE BENEFITS BEFORE BECOMING THE MEMBER OF WTO Its agreed that India was one of the founder member of WTO. A product is considered as dumped when its export price becomes less as compared to the normal price in the exporting country plus a amount profits. (2)Subsidies . (3)Technical barriers to trade . it faced problems in Foreign Trade grounds.
d) Domestic sales requirements. a) Local content requirement b) Trade balancing requirement c) Trade and foreign exchange balancing requirement. textiles etc. inventions . Refers to certain conditions imposed by government in respect of foreign investment. (6) TRIPs (Trade Related Aspects of Intellectual Property Rights-It i s defined a s “information w i t h commercial v a l u e ”. (5)TRIMs (Trade related investment measures) .25 | P a g e (4)Right of m a r k e t -The m a in i s s u e i s to reduce t a r i f f and other trade restriction in case of commodities like agricultural goods.Widely employed by developing countries. Property as a composite of “ideas. Intellectual Rights h a v e been characterized and creative expression”. The agreement of TRIM provides the following inconsistent TRIMs.
At present imports accounts for 17% of the GDP. The norms tell about the amount of duty free import of inputs allowed for specified products. The economic needs of t h e country. health. There are n o restrictions o n imports o f capital g o o d s . c) To promote efficient import substitution. environment protection etc. In the p a s t 3 0 years I n d i a n imports have r i s e n quite dramatically. 7-1. Import o f second hand capital goods whose minimum residual life is of five years is permitted. Input output norms have been specified for m o re than 4200 items.2 Current Scenario of Imports in India There are few goods which cannot b e imported namely tallow fat. wild animals. Export Promotion Capital Goods (EPCG) scheme p r o v i d e s import exporters t o capital goods at a concessionary custom rates. import is a n y commodity brought i n t o one c o u n t r y f r o m another c o u n t r y i n a legal way.26 | P a g e 7 7–1 7-1. Imports are allowed free of d u t y for e x p o r t production.1 IMPORT EXIM POLICY Indian Import Policy Import is the antonym of export. Capital goods h a v e been . effective use of foreign currency are the basic factors which influence India's import policy. Most of the restrictions are on the ground of security. unprocessed ivory etc. There are mainly 3 basic objectives of the import policy of India: a) To make the goods easily available. In the terms of economics. b) To simplify importing license. animal rennet.
The regular The recent imports of oil reflect upon the fact that India is not able to produce the quantity of oil required in India. Some of t h e There are facilities available for t h e service industries to enjoy t h e major imports of I n d i a are edible oil. Moreover the increase in the imports of products also highlights the fact that the Indian domestic industries need to be developed.4 Problems due to Large Import of Products trend o f imports i s of some concern. It also creates pressure on the economy as the money ultimately has to be bearded by the people. .27 | P a g e continued to be imported and in the last three years. petroleum and crude products. 7-1. their share has fallen from 25% to 22%. electronic goods etc. fabrics.3 facility Major Indian Imports of zero import d u t y under EPCG scheme. crude rubber. 7-1. newsprint.
28 | P a g e 7-2 EXPORT Export means the transferring of any good from one country to another country in a legal way for the purpose of trade. . Export goods are provided to the foreign consumers by the domestic producers.
1 The history Indian Exports: A History of Indian exports id very old. A few items are subject to export control to prevent their shortage. But during the B r i t i s h era. The profits from exports are exempted f r o m income tax. India was also famous for its textiles which were a chief item for e x p o r t in the 16th century. The government of India works with the Federation of Indian Export Organization. During prehistoric times India exported spices to the other parts of the world. Indian Exports: Current Scenario Every year I n d i a e a r n s billion of dollars by exporting various goods and items.29 | P a g e 7-2. the leading export promotion organization of In d i a . Indian exports contribute nearly 12. tortoise stones etc. The e x p o r t policies t e l l about the products to be exported and the countries to whom exports are to be done. During the Mughal era India exported various precious stones such as ivory. pearls. .4% in the GDP. Exports are the major focus of India's trade policy and most of the items can be freely exported from India. I n d i a n exports declined as the East India Company foreign trade of India. The Indian government has outlined certain export policies. Textiles and cotton were exported to the Arab countries from Gujarat.
wheat. tea. pickles. any good . preserved vegetables etc. textiles.3 Leading Export Items of India In the past ten years.4 Restriction on the Exports of Items However there a r e some restrictions on the export of goods. Some of I n d i a ’ s m a i n e x p o r t items a r e cotton. Some commodities h a v e enjoyed f a s t e r e x p o r t growth than ot hers .30 | P a g e 7-2. coffee. exports have grown at a rate of nearly 2 2 %. Russia etc. 7-2. Under sub section (d) of section 111 and sub section (d) of section 113. cocoa products. mango pulp. jams. China. USA. rice. jute goods. India exports its goods to some of leading countries of the world such as UK. Belgium. juices.
contrary to any prohibition imposed by or under the customs act or any other law is liable for confiscation. The packaging and branding such be such that countries are interested to export from India. The Indian goods have to be of superior quality. At t h e same time I n d i a m u s t .5 Problems of the Indian Export Sector But there are few problems which need to be solved before India makes a mark for itself in the export sector.31 | P a g e exported or attempted to be exported. look for potential market to sell t h e i r g o o d s . The government should f r a m e policies which gives boost to the export . 7-2.
India of has a agricultural advantage co m par at i v e the production agricultural commodities. On the other side according to the agreement of T r a d e Related Investment Measure’s (TRIMs). it will very difficult to control the restrictive activities of the following investors. Further.32 | P a g e 8 CONCLUSION The developed countries want that the underdeveloped countries observe some restrictions relating to labour employment and ecological balance. . goods in will increase. As a result. Thus. This agreement will a l s o f a v o u r the investors of the developed countries. Thus. Their argument is that the underdeveloped countries use child labours or their social security measures are very poor. the countries tried to impose many restrictions on the production process of the underdeveloped countries. If we consider both sides of a coin then we can conclude that the developed countries export of cost India’s if liberalise their import of agricultural goods. there should not be any discrimination between foreign and domestic investments. Hence India’s of such commodity is expected to increase. As a result. they may stand to gain from the WTO system. So. the developed countries should be allowed to impose tariffs or imports from underdeveloped countries until the developing countries improve the developed condition of l a b o u r and do not employ child labour. cost of production in such countries is low. if the developing countries try to protect their interest as a group. these countries do not take measures to control pollution or to maintain ecological balance.
exprasspharma.org Annual Report 2007 Trade Policy Reviews 2002 BIBLOGRAPHY .wto.wikipedia.33 | P a g e 9 www.com www.org www.
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