India: Foreign Trade Policy

India unconnected handle polityAlthough Indiahas steadily open up up its economy, its tariffs continue to be high when compared with other countries, and its investment norms are still restrictive. This leads some to debate India as a rapid globularizer while others still see it as a highly protectionist economy.Till the primordial 1990s, Indiawas a closed economy average tariffs exceeded 200 part,quantitative restrictions on importswere extensive, and there were stringent restrictions on foreign investment. The landed estate began to cautiously reform in the 1990s, liberalizing only under conditions of extreme necessity. Since that time, foxiness reforms deplete produced remarkable results. Indias sell to GDP ratio has increased from 15 percent to 35 percent of GDPbetween 1990 and 2005, and the economy is now among the fastest growing in the world.Average non-agricultural tariffs have fallen beneath 15 percent, quantitative restrictionson importshave been eliminated, and foreign investments norms have been relaxed for a number of sectors. Indiahowever retains its proper(a) to protect when need arises. Agricultural tariffs average between 30-40 percent, anti-dumping measures have been liberally used to protect trade, and the country is among the few in the world that continue to ban foreign investment in retail trade. Although this form _or_ system of government has been somewhat relaxed lately, it remains considerably restrictive.Nonetheless, in recent years, the governments stand on trade and investment policy has displayed a marked shift from protecting producers to benefiting consumers. This is reflected in itsForeign Trade Policy for 2004/09which states that, For India to become a major player in world trade we have also to despatch those imports which are required to stimulate our economy. Indiais now aggressively pushing for a more liberal globular trade regime, especially in services. It has assumed a leadership role among developing na tions in global trade negotiations, and played a critical part in the Dohanegotiations.Regional and Bilateral Trade AgreementsIndiahas recently signed trade agreements with its neighbors and is seeking new ones with the East Asian countries and the United States. Its regional and bilateral trade agreements or variants of them are at different stages of development * India-Sri Lanka Free Trade Agreement, * Trade Agreements with Bangladesh, Bhutan, Sri Lanka, Maldives, China, and South Korea. * India-Nepal Trade Treaty, * Comprehensive Economic Cooperation Agreement (CECA) with Singapore. Framework Agreements with the Association of Southeast Asian Nations (ASEAN), Thailand and Chile. Preferential Trade Agreements with Afghanista, Chile, and Mercosur (the remainder mentioned is a trading zone between Brazil, Argentina, Uruguay, and Paraguay). World Bank InvolvementAs a number of research institutions in the country provide the Government with good, just-in-time, and low-cost analy tical advice on trade-related issues, the World Bank has focused on providing analysis on specialized subjects at the Governments request.In the last three years, the Bank has been working(a) with the Ministry of Commerce in a participatory manner to help the country develop an informed dodge for domestic reform and international negotiations. Given the sensitivity of trade policy and negotiation issues, the Banks role has been confined to providing better information and analysis than was previously available to Indias policymakers.World Bank ReportsOver the last two years, the World Bank has completed two reportsSustaining Indias Services Revolution Access to Foreign Markets, Domestic Reforms and International NegotiationThe study concludes thatto sustain the dynamism of Indias services sector, the country mustiness address two critical challenges externally, the problem of actual and potential protectionism and domestically, the persistence of restrictions on trade and investme nt, as well as weaknesses in the regulatory environment.From Competition at Home to Competing Abroad The Case of Horticulture in IndiaThis study finds that the competitiveness of Indias horticulture sector depends critically on efficient logistics, domestic competition, and the ability to abide by with international health, safety and quality standards. The study is based on primary surveysacross fifteen Indian States. A third study, dealing with barriers to the movement of professionals is under preparation.The Bank has also held a number of workshops and conferences with a view to providing different stakeholders with a forum to express their views on trade-related issues. Permanent URL for this pagehttp//go. worldbank. org/RJEB2JGTC0 Publications * Studies on India-Bangladesh Trade (Vol. 1 of 2) * Studies on India-Bangladesh Trade (Vol. 2 of 2) * Sustaining Indias Services Revolution * Home * Site make up * Index * FAQs * Contact Us * Search * RSS