This document discusses the implications of India's membership in the World Trade Organization (WTO). It outlines how WTO membership has impacted key sectors of India's economy like agriculture, textiles, IT and telecom. It also discusses issues like tariff reforms, intellectual property rights, and sanitary and phytosanitary measures. The document recommends that India focus on improving infrastructure, strengthening the IT sector, reorganizing agricultural policies, and modernizing the textile industry to take better advantage of WTO membership.

1. IMPLICATIONS OF WTO ON INDIA
Presented by:-

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. Tariff Reforms

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. 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
[Source: WTO Secretariat Report]

6. GDP share
Primary Secondary Tertiary
27.5 28.6 31.1 36.6 40.6
49.3
13.3 16.6
21.6
23.7
27.2
26.7
59.2 54.8
46.3 39.2 32.2
24
1950-51 1960-61 1970-71 1980-81 1990-91 2001-02

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. 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. 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. 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.

12. 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

13. Mobile tariffs in India
0.25
0.23
0.22
0.2 0.19
0.17
0.16
0.15
0.11 0.11 0.11
0.1 0.09
0.05 0.05
0.05 0.04
0.03
0.02
0
Argentina
Belgium
Italy
India
China
France
Malayasia
Philippines
Thailand
Hong Kong
Pakistan
UK
Brazil
Taiwan

14. IPR
 Seven types
 Copyrights
 Trademarks
 Geographical indications
 Industrial designs
 Patents
 Integrated circuits
 Trade secrets

15. 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

16. 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

17. 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