India: Foreign Trade Policy

India Foreign portion out PolicyAlthough Indiahas steadily opened up its thrift, its tariffs rest to be high when comp ared with other countries, and its investment norms are still restrictive. This leads few to perk India as a rapid globalizer while others still see it as a highly nurseionist economy.Till the early 1990s, Indiawas a closed economy average tariffs exceeded 200 percent,quantitative restrictions on importswere extensive, and there were stringent restrictions on external investment. The democracy began to cautiously reform in the 1990s, liberalizing only to a lower place conditions of extreme necessity. Since that time, treat reforms fuddle produced remarkable results. Indias trade to gross domestic product ratio has increased from 15 percent to 35 percent of gross domestic product amidst 1990 and 2005, and the economy is now among the fastest growing in the world.Average non-agricultural tariffs have fallen below 15 percent, quantitative restrictionson impo rtshave been eliminated, and overseas investments norms have been relaxed for a number of sectors. Indiahowever retains its right to protect when fate 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 policy has been somewhat relaxed recently, it remains substantially restrictive.Nonetheless, in recent years, the governments stand on trade and investment policy has dis vie a marked shift from protecting producers to benefiting consumers. This is reflected in itsForeign business Policy for 2004/09which states that, For India to become a major imposter in world trade we have also to facilitate those imports which are required to stimulate our economy. Indiais now aggressively pushing for a more liberal global trade regime, especially in services. It has assumed a leadership role among deve loping nations in global trade negotiations, and played a critical part in the Dohanegotiations.Regional and Bilateral business AgreementsIndiahas recently signed trade agreements with its neighbors and is seeking new ones with the East Asiatic 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 latter is a trading zone between Brazil, Argentina, Uruguay, and Paraguay). World lodge InvolvementAs a number of research institutions in the country provide the politics with good, just-in-time, and low-cost ana lytical advice on trade-related issues, the World Bank has focused on providing analysis on specialized subjects at the Governments request.In the cash in ones chips three years, the Bank has been working with the Ministry of Commerce in a participatory manner to help the country develop an sure strategy for domestic reform and international negotiations. Given the sensitivity of trade policy and negotiation issues, the Banks role has been confined to providing demote 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 service Revolution Access to Foreign Markets, Domestic Reforms and International NegotiationThe excogitate concludes thatto sustain the dynamism of Indias services sector, the country must cope two critical challenges externally, the problem of actual and potential protectionism and domestically, the persistence of restrictions on trade a nd investment, as well as weaknesses in the regulatory environment.From opposition 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 expertness to comply with international health, safety and quality standards. The study is based on primary surveysacross fifteen Indian States. A third study, dealings 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. imperishable 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 Map * magnate * FAQs * Contact Us * Search * RSS