Implications Of Wto On India

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Implications Of Wto On India

  1. 1. IMPLICATIONS OF WTO ON INDIA Presented by:- Shivani Gautam Shray Jali Vishal Chaudhary
  2. 2. Roadmap  Structure Of WTO  Why do we need WTO  India and WTO  Effect on  Agriculture  Textiles  IT & ITes  Telecom Sector  IPR and TRIPS in India  Sanitary and PhytoSanitary Measures/Technical Barriers To Trade  Our Recommendations
  3. 3. Tariff Reforms
  4. 4. Why Do We Need WTO?  International peace:- by helping the trade to flow smoothly and dealing with disputes over trade issues  Risk reduction:- Confidence to nations to do more and more trade, thereby stimulating economic growth
  5. 5. India in WTO  Founder member  Ensured more stability and predictability  MFN status and national treatment for its exports  India is expected to snatch most of the business deals that are presently catering the developed nations which includes major service based industries like telecom, financial services, infrastructure services such as transport and power
  6. 6. 59.2 54.8 46.3 39.2 32.2 24 13.3 16.6 21.6 23.7 27.2 26.7 27.5 28.6 31.1 36.6 40.6 49.3 1950-51 1960-61 1970-71 1980-81 1990-91 2001-02 Primary Secondary Tertiary GDP share
  7. 7. Agriculture  Reduction in domestic subsidies  Amber box, Green box and Blue box  Total Aggregate Measurement of Support (AMS) is negative so not required to undertake reduction commitments in any of its product  Reduction in export subsidies  No direct subsidies except marketing and transport subsidies  Tariff binding and progressive reduction of tariffs  Primary agricultural products 100%
  8. 8. Textiles  The textile sector remained outside the GATT disciplines for many decades  1974: MFA  ATC : negotiated during the Uruguay Round  Accounted for about 36% of total exports from India  Largest net foreign exchange earner for the country
  9. 9. Anti-dumping probes against India  European Union  Unbleached Cotton Fabrics (UCF)  Cotton Type Bedliner  Polyester Texturised Filament Yarn (PTFY)  Turkey  Polyester Texturised Yarn (PTY)  South Africa  Printed and dyed bed linen  Acrylic fibre blankets
  10. 10. IT & ITes  Key contributor to the Services Sector accounting for 5.8% of India’s overall GDP [Source: PWC report for CII]  The increase in availability and reduction in tariffs has prompted many developed nations to go for business with India especially in IT and ITeS industry  Software exports from the Rajiv Gandhi Chandigarh Technology Park rose from Rs.504 crore in 2007-08 to Rs.750 crore last year.
  11. 11. Telecom  The WTO Agreement on Basic Telecommunications provided for liberalization of trade  India’s approach was primarily defensive  MFN exemptions: for different accounting rates into Pakistan, Bangladesh, Nepal and Bhutan  1998 – 25% FDI  2001 – 49% FDI  2003 – 74% FDI but mgmt. control with Indian operators
  12. 12. Mobile tariffs in India 0.23 0.22 0.19 0.17 0.16 0.11 0.11 0.11 0.09 0.05 0.05 0.04 0.03 0.02 0 0.05 0.1 0.15 0.2 0.25 Belgium Italy UK France Brazil Philippines Taiwan Argentina Malayasia HongKong Thailand Pakistan China India
  13. 13. IPR  Seven types  Copyrights  Trademarks  Geographical indications  Industrial designs  Patents  Integrated circuits  Trade secrets
  14. 14. TRIPS in India  India’s patent policy allowed very little scope for patents in agriculture  Protecting some of the geographical indications of interest to India e.g. Basmati rice, Darjeeling tea, Mysore Dosa  Exclusive Marketing Rights for the producers of patented drugs and agrochemicals
  15. 15. Sanitary and Phytosanitary Measures and Technical barriers to trade (SPS/TBT)  Protects human, animal and plant life and health including from pests and diseases of food  Size, shape, weight and packaging material requirements including labeling and handling safety  Peanuts, Marine products, Mushrooms in EU
  16. 16. Our recommendations  Building up world-class infrastructure like roads, ports and electricity supply  Strength in IT and ITes sector should be tapped and further strengthened  Reorganize its Protective Agricultural policy  Textile industry modernization

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