32962535 3 WTO Amp Implications for Indian Economy Ppt

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Impact of WTO onImpact of WTO on IndianIndian

EconomyEconomy



WTO & implications for IndianWTO & implications for Indian

EconomyEconomy

OneOne of of thethe mostmost dramaticdramatic eventsevents thatthat havehave takentaken place placeinin later later part part of of 2020thth centurycentury waswas culminationculmination of of GATTGATT 19471947 intointo WTO,WTO, whichwhich camecame intointo forceforce onon11stst JanuaryJanuary 20052005.. ThisThis WTOWTO hashas setset expectationsexpectationshighhigh inin variousvarious member member countriescountries regardingregarding spurtspurt ininworldworld tradetrade wherewhere IndiaIndia hashas insignificantinsignificant shareshare inin thethe pie pie--OnlyOnly 00..7575%% atat thethe mostmost.. EvenEven inin ITIT exportsexports thetheshareshare of of IndianIndian exportersexporters isis just just peanuts peanuts inin viewview of of overalloverall worldworld marketmarket..



Problems facing India in WTO & itsProblems facing India in WTO & its

ImplementationImplementation Predominance of developed nations in negotiationsPredominance of developed nations in negotiations

extracting more benefits from developing and leastextracting more benefits from developing and leastdeveloped countriesdeveloped countries

Resource and skill limitations of smaller countries toResource and skill limitations of smaller countries tounderstand and negotiate under rules of variousunderstand and negotiate under rules of variousagreements under WTOagreements under WTO

Incompatibility of developed and developingIncompatibility of developed and developing

countries resource sizes thereby causing distortions incountries resource sizes thereby causing distortions inimplementing various decisionsimplementing various decisions

Non Non--tariff barriers being created by developedtariff barriers being created by developednations.nations.

Poor implementation of Doha Development AgendaPoor implementation of Doha Development Agenda



AgricultureAgriculture seemsseems toto be be bone bone of of contentioncontention for for allall typestypesof of countriescountries wherewhere France,France, JapanJapan andand somesome countriescountriesareare just just notnot willingwilling toto budge budge downwardsdownwards inin matter matter of of

domesticdomestic supportsupport andand exportexport assistanceassistance toto farmersfarmers andandexportersexporters of of agricultureagriculture produce produce..

DismantlingDismantling of of MFAMFA (Multi(Multi Fiber Fiber Agreement)Agreement) andand itsits

likelylikely impactimpact onon countriescountries likelike IndiaIndia



Implications for IndiaImplications for India

It appears that India does not stand to gain much byIt appears that India does not stand to gain much by

shouting for agriculture reforms in developedshouting for agriculture reforms in developedcountries because the overall tariff is lower in thosecountries because the overall tariff is lower in those

countries. India will have to tart major reforms incountries. India will have to tart major reforms in

agriculture sector in India to make Agricultureagriculture sector in India to make Agriculture

globally competitive.globally competitive.



It is likely that China, Germany, North AfricanIt is likely that China, Germany, North Africancountries, Mexico and such others may reap benefit incountries, Mexico and such others may reap benefit intextiles and Clothing areas unless India embarks upontextiles and Clothing areas unless India embarks uponmajor reforms in modernization and up gradation of major reforms in modernization and up gradation of textile sector including apparels.textile sector including apparels.

InIn PharmaPharma--sector there is needsector there is need for major for major investments in R &D and mergers and restructuring of investments in R &D and mergers and restructuring of companies to make them world class to takecompanies to make them world class to take

advantage. India has already amended patent Act andadvantage. India has already amended patent Act and both product and Process are now patented in India. both product and Process are now patented in India.



What India should do?What India should do?

TThehe mostmost importantimportant thingsthings for for IndiaIndia toto addressaddress arearespeedspeed upup internalinternal reformsreforms inin building building upup worldworld--classclass

infrastructureinfrastructure likelike roads,roads, ports ports andand electricityelectricity supplysupply..

India'sIndia's rankingranking inin recentrecent GlobalGlobal CompetitivenessCompetitivenessreportreport isis notnot veryvery encouragingencouraging duedue toto infrastructureinfrastructure problems, problems, poor poor governance,governance, poor poor legallegal systemsystem andand

poor poor marketmarket accessaccess provided provided by by IndiaIndia..



Our tariffs are still high compared to DevelopedOur tariffs are still high compared to Developedcountries and there will be pressure to reduce themcountries and there will be pressure to reduce themfurther and faster.further and faster.

India has solid strength, at least for mid term (5India has solid strength, at least for mid term (5--7 years)7 years)in services sector primarily in IT sector.in services sector primarily in IT sector.

India would do well to reorganize its ProtectiveIndia would do well to reorganize its Protective

Agricultural policy in name of rural poverty and FoodAgricultural policy in name of rural poverty and Foodsecurity and try to capitalize on globalization of security and try to capitalize on globalization of agriculture markets.agriculture markets.



India must improve legal and administrativeIndia must improve legal and administrativeinfrastructure, improve trade facilitation through cuttinginfrastructure, improve trade facilitation through cuttingdown bureaucracy and delays and further ease itsdown bureaucracy and delays and further ease itsfinancial markets.financial markets.

India has to downsize nonIndia has to downsize non--plan expenditure in Subsidies plan expenditure in Subsidiesand Government salaries and perquisites like pensionsand Government salaries and perquisites like pensions

and administrative expenditures.and administrative expenditures.

Corruption will also have to be checked by bringing inCorruption will also have to be checked by bringing infast remedial public grievance system, legal systemfast remedial public grievance system, legal systemandand information dissemination by using einformation dissemination by using e--governance.governance.

The petroleum sector has to be boosted to tap crude oilThe petroleum sector has to be boosted to tap crude oiland gas resources within Indian boundaries and enteringand gas resources within Indian boundaries and enteringinto multinational contracts to source oil reserves.into multinational contracts to source oil reserves.



ConclusionConclusion

It wont be a bad idea if Indian textile and garmentIt wont be a bad idea if Indian textile and garmentIndustry go multinational setting their foot in westernIndustry go multinational setting their foot in westernEurope, North Africa, Mexico and other suchEurope, North Africa, Mexico and other such

strategically located areas for large US and Europeanstrategically located areas for large US and Europeanmarkets.markets.

The performance of India in attracting major FDI hasThe performance of India in attracting major FDI has

also been poor and certainly needs boost up, if Indiaalso been poor and certainly needs boost up, if Indiahas to develop globally competitive infrastructure andhas to develop globally competitive infrastructure andfacilities in its sectors of interest for world trade.facilities in its sectors of interest for world trade.

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32962535 3 WTO Amp Implications for Indian Economy Ppt

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