The document discusses India's involvement with the World Trade Organization and provides economic and social indicators for India from 1950-2009. It summarizes India's growing imports and exports over time. The document also analyzes articles related to India granting Most Favored Nation status to Pakistan and the implications of increased trade between the two countries. Key concerns discussed include India's dominant economic position in South Asia and the vulnerability of some Pakistani industries to cheaper Indian imports. The document concludes by noting India's interest in access to trade routes through Pakistan to Afghanistan and Central Asia.

1. Group Members: Arslan Husain Khanzada
Shumail Ather
S@jid Ali Aarain
Class: BBA 8D
Subject: World Trade Organization
Country: Republic Of India
Date: May 2, 2011

2. Table Of Contents
INTRODUCTION 3
INDIA AND THE WORLD TRADE ORGANIZATION 3
INDIA’S ECONOMIC & SOCIAL INDICATORS 4
IMPORTS & EXPORT TREND OF INDIA 5
ARTICLE SUMMARY RELATED TO INDIA AND WTO 6
CONCLUSION OF THE ARTICLE: 7
TRADE INDICATORS AND INDICES 8
TRADE INTENSITY INDEX: 8
INDIA & CHINA TRADE INDEX: 8
INDIA & PAKISTAN TRADE INDEX: 8
INDIA & SRI LANKA TRADE INDEX: 9
INDIA & BANGLADESH TRADE INDEX: 9
RELATIVE GROWTH RATE OF MERCHANDISE EXPORTS AND IMPORTS 9
RELATIVE GROWTH IN TRADE OF RAW COTTON: 9
RELATIVE GROWTH IN TRADE OF IRON ORE: 10
RELATIVE GROWTH IN TRADE OF RICE: 10
RELATIVE GROWTH IN TRADE OF FISH AND FISH PREPARATIONS: 10
RELATIVE COMPARATIVE ADVANTAGE INDEX 11
TRADE COMPLEMENTARY INDEX: 11

3. INTRODUCTION
India, officially the Republic of India, is biggest country in South Asia. It is the seventh-largest country by
geographical area, the second-most populous country, and the most populous democracy in the world.
Bounded by the Indian Ocean on the south, the Arabian Sea on the west, and the Bay of Bengal on the east,
India has a coastline of 7,517 kilometers (4,700 mi). It is bordered by Pakistan to the west; People's Republic
of China, Nepal, and Bhutan to the north; and Bangladesh and Myanmar to the east. India is in the vicinity of
Sri Lanka, the Maldives, and Indonesia in the Indian Ocean.
Home to the Indus Valley Civilization and a region of historic trade routes and vast empires, the Indian
subcontinent was identified with its commercial and cultural wealth for much of its long history. Four major
religions, Hinduism, Buddhism, Jainism and Sikhism originated here, while Zoroastrianism, Judaism,
Christianity and Islam arrived in the first millennium CE and shaped the region's diverse culture. Gradually
annexed by the British East India Company from the early eighteenth century and colonized by the United
Kingdom from the mid-nineteenth century, India became an independent nation in 1947 after a struggle for
independence that was marked by widespread non-violent resistance.
India is a republic consisting of 28 states and seven union territories with a parliamentary system of
democracy. It has the world's twelfth largest economy at market exchange rates and the fourth largest in
purchasing power. Economic reforms since 1991 have transformed it into one of the fastest growing
economies however, it still suffers from high levels of poverty, illiteracy, disease, and malnutrition. A
pluralistic, multilingual, and multiethnic society, India is also home to a diversity of wildlife in a variety of
protected habitats.
INDIA AND THE WORLD TRADE ORGANIZATION
India played an important part in establishment of GATT and then in establishment of WTO. In 1947 it was it
became the member of GATT and started to play its part in GATT. And now it’s an active member of WTO,
the replacement of GATT, which came into effect on 1st January 1995 in Uruguay Round. India is in very favor
of governance of international trade which is based on international rules and regulations. India strongly
believes that trade lead to prosperity and the trade based on rules and regulations will lead to good
predictability.
It believes that trade will not only benefit its economy but it will also benefit all 134 members of WTO. All
countries will enjoy MFN status as India’s economy and receive and provide national treatment to all the
multinational and national organizations.
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4. INDIA’S ECONOMIC & SOCIAL INDICATORS
ECONOMIC INDICATORS
1950-51 1960-61 1970-71 1980-81 1990-91 2000-01 2004-05 2005-06 2006-07 2007-08 2008-09
GDP at factor cost: At 9719 16512 42981 132520 515032 1925017 2877701 3282385 3779384 4320892 4933183
current prices Rs.Cr.
GDP at factor cost: 224786 329825 474131 641921 1083572 1864300 2388768 2616101 2871120 3129717 3339374
At constant prices Rs.
Cr.
Per capita Net 5708 7121 8091 8594 11535 16172 19331 20868 22580 24295 25494
National Product
At constant prices Rs.
Gross Domestic 8.4 14.0 15.1 19.9 26.0 24.3 32.1 35.5 36.9 39.1 na
Capital Formation
As percentage to GDP
at current market
prices
Gross domestic 8.6 11.2 14.2 18.5 22.8 23.7 31.7 34.2 35.7 37.7 na
savings as percentage
to GDP (at current
market prices)
Index of agricultural 46.2 68.8 85.9 102.1 148.4 165.7 177.3 191.9 200.7 207.1 188.7
production (Base:
triennium ending
1981-82)
Index of industrial 7.9 15.6 28.1 43.1 91.6 162.6 204.8 221.5 247.1 268.0 274.3
production
(Base:1993-94=100)
Wholesale Price Index 6.8 7.9 14.3 36.8 73.7 155.7 187.3 195.6 206.2 215.8 234.0
average(Base
1993-94=100)
Consumer Price Index 17.0 21.0 38.0 81.0 193.0 444.0 520.0 542.0 125 133 145
for Industrial Workers
Average (Base
1982=100)
OUTPUT
Foodgrains (million 50.8 82.0 108.4 129.6 176.4 196.8 198.4 208.6 217.3 230.8 229.9
tons)
Finished Steele 1.0 2.4 4.6 6.8 13.5 31.2 41.3 44.4 50.2 53.3 53.5
(million tones)
Cement (million tons) 2.7 8.0 14.3 18.6 48.8 99.2 125.3 140.5 154.7 167.6 181.4
Coal and lignite 32.3 55.2 76.3 119.0 225.5 332.6 413.0 437.1 462.1 491.1 na
(million tons)
Crude oil (million 0.3 0.5 6.8 10.5 32.2 32.4 34.0 32.2 34.0 34.1 33.5
tons)
Electricity generated 5 17 56 111 264 499 587 617 663 704 724
(utilities only) (Billion
KWH)
Plan outlay (Rs. Crore) 260 1117 2524 15023 58369 185737 193114 247178 244230 292336 375486
(Source: Economic Survey 2009-2010)
SOCIAL INDICATORS
1950-51 1960-61 1970-71 1980-81 1990-91 2000-01 2004-05 2005- 2006-07 2007- 2008-
06 08 09
Population (Million) 359.0 434.0 541.0 679.0 839.0 1019 1089 1106 1122 1138 1154
Birth Rate (per 1000) 39.9 41.7 36.9 33.9 29.5 25.4 23.8 23.5 23.1 na na
Death Rate (per 1000) 27.4 22.8 14.9 12.5 9.8 8.4 7.6 7.5 7.4 na na
Life Expectancy at 32.1 41.3 45.6 50.4 58.7 62.5 na na 63.5 na na
Birth (in Years)
(a) Male 32.5 41.9 46.4 50.9 58.6 61.6 na na 62.6 na na
(b) Female 31.7 40.6 44.7 50.0 59.0 63.3 na na 64.2 na na
Education: Literacy 18.3 28.3 34.4 43.6 52.2 64.8 na 67.6 na na na
Rate (%)
(a) Male 27.2 40.4 46.0 56.4 64.1 75.3 na na na na na
(b) Female 8.9 15.4 22.0 29.8 39.3 53.7 na na na na na
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5. Health & Family 61.8 83.7 151.1 268.7 393.6 577.1 660.8 na na na na
Welfare RMP
st
(Thousand) on 31
Dec
RMP per 10,000 1.7 1.9 2.8 3.9 4.7 5.6 6.0 na na na na
population
Beds (All Types) Per 3.2 5.7 6.4 8.3 9.5 na na na na na na
10,000
(Source: Economic Survey 2009-2010)
IMPORTS & EXPORT TREND OF INDIA
Exports and imports are in increasing trend. According to Ministry of Commerce & Industry India the exports
were around $303.696 Billion in 2009 and imports are around $185.295 Billion. There was around 21%
increase in exports and around 13.68% increase in imports as compare to year 2008.
India Imoprts And Exports
488.991
500
450 414
400
350 312 303.696
300 252 251
250
196 186 185.295
200 163
142 149
126
150 114 112 103
95 84
78
100 51 44 61 53 64
50
0
FY 2002 FY2003 FY2004 FY 2005 FY2006 FY 2007 FY 2008 FY 2009
Imports Exports Total
(Source: Economic Survey 2009-2010)
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6. ARTICLE SUMMARY RELATED TO INDIA AND WTO
In the context of Pakistan-India bilateral relations and the bilateral dialogue, India
seems to hold most of the cards; the only cards that Pakistan holds are trade and
transit.
In this article we learned that although this is true that granting MFN is the obligation to all the members but
there is an escape clause as well. This clause permits the individual members to suspend application on
national security grounds. This thought has never been challenged or tested the dispute settlement system
of WTO/GATT. If and when any member feels offended or compelled WTO can utmost authorize the
aggrieved member to suspend or withdraw trade benefits of comparable value from the offending member!
As India is one of the largest importers, the import of consumer articles from India may be needed in
emergency situations. The delivery is apparent in either or the situation, price and freight advantage or
advantage of early delivery. If India is been granted MFN status, Pakistan would lose all control. Therefore
the result would be drastic increase in trade imbalances for India in future years. Whereas, if the Indian
imports’ doors could be open, it does not seem to be a nice idea for dealing with trade imbalances. India has
a diversified industrial base and has vast cost and price advantage.
India extends subsidies to its agriculture as well as industries in all sorts of subtle ways that we can neither
follow nor afford. And India will not hesitate to employ dumping, if it can get away with it, to destroy our
nascent industries and secure a dominant position in our market. Already some of our industries are reeling
under the chill wind of cheaper Chinese imports. Some sectors of our industry (such as light engineering
goods, automobiles, pharmaceuticals, ceramic tiles and sanitary-ware) may be particularly vulnerable in the
face of unrestricted and uncontrolled flood of cheaper imports from India.
If Pakistan continue to withhold the MFN status from INDIA through its lack of enthusiasm about SAARC and
SAFTA, Pakistan has strengthened India’s hand in their bilateral relations, and that they must not use these
levers (which evidently annoys India without hurting it) if they want forward movement on India’s part in
resolving the long-standing problem of Kashmir.
”I do not find much merit in the argument that India is pressing ahead with SAFTA and promoting yet another
regional grouping, BIMSTEC (whatever it means),and Pakistan will lose out and stand isolated in the end if it
does not (grant MFN status to India and) enthusiastically join in the frantic race for the completion of these
regional relationships.”
(Khwaja Mohammad Hamid)
India has a predominant position in South Asia in all respects and there is no getting away from the reality
that it is bound to dominate, manipulate and exploit any South Asian regional arrangement to its own
advantage. The principal markets lie in the Middle East, Europe, North America and the Far East. That is
where most of the potential for the growth of our trade lies and where we should concentrate our energies
and efforts.
It should not be a surprise to anybody; however, that immediately behind the question of MFN status to
India lays the even bigger question, in economic as well as geo-political terms, of the passage of India’s trade
with Afghanistan and with the Central Asian countries through Pakistan. In the context of its regional and
global ambitions as an emerging great power, India desperately needs this access.
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7. Conclusion Of The Article:
We concluded that India should not be forced to seek a close economic and political relationship with Iran in
the interest of acquiring a passage route to these countries. If and when India succeeds in getting MFN
status from Pakistan, it will employ all its economic, political and diplomatic resources to the utmost to
obtain transit through Pakistan. People assume India’s objective is to devastate the road transport
infrastructure of Pakistan. In fact India wants to increase trade relations with Pakistan and further more with
Afghanistan and countries of Central Asia.
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8. TRADE INDICATORS AND INDICES
These indicators are used to identify and analyze a country’s character and pattern of trade with its partners.
With the help of figures and formulas these indicators can show the real position of a countries trade with
the entire world. These indicators can also be very useful in calculating the intra industry trade and it is also
helpful to analyze country’s growth and their interdependence on each other. Some indicators that we
selected to analyze the Indian industry and trade are as follows…
Trade Intensity Index:
This indicator indicates that how much two countries are trading with each other and what is the importance
of these countries in the world. For our analysis we selected China, as it’s a fastest growing economy and
would be next super power, Pakistan, because Pakistan and India are always considered as competitors to
each other, Sir Lanka, because India had a great stake in economy of India and Bangladesh, which is also a
neighbor county of India.
India & China Trade Index:
In 2009 the total exports of India to China were $ 9354 million and the total exports of India were $ 185295
million. The total imports of china were 1.01 trillion and total imports of India were $ 303696 million.
According to the formula given…
( )
( )
Where TIC is trade index between India and China
India & Pakistan Trade Index:
Total export of India to Pakistan = 1440, the total imports of Pakistan were $ 28922.4 million
( )
( )
Where TIP is trade index between India and Pakistan
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9. India & Sri Lanka Trade Index:
Total export of India to Sri Lanka = 2426, the total imports of Sri Lanka were $ 9600 million
( )
( )
Where TIS is trade index between India and Sri Lanka
India & Bangladesh Trade Index:
( )
( )
Where TIC is trade index between India and Bengladesh
Relative Growth Rate Of Merchandise Exports And Imports
This index is used to compare rates of growth of exports and imports with those of the world. This index
actually tells us that are there is a real growth or decrease in imports and exports of the country.
Relative Growth In Trade of Raw Cotton:
The traded volume of raw cotton in 2009 was $ 623 Million and in 2001 it was $ 49 Million. Now putting
these values in the formula…
( )
[( ) ]
( )
%
Where Grc is growth in trade of Raw Cotton
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10. Relative Growth In Trade of Iron Ore:
Total traded volume of iron ore in 2009 was $ 4724 Million and in 2001 it was $ 358 Million. Calculations…
( )
[( ) ]
( )
Where Gio is growth in trade of Iron Ore
Relative Growth In Trade Of Rice:
Total traded volume of iron ore in 2009 was $ 2428 Million and in 2001 it was $ 644 Million. Calculations…
( )
[( ) ]
( )
Where Gr is growth in trade of Rice
Relative Growth In Trade Of Fish And Fish Preparations:
The traded volume of fish and fish preparations in 2009 was $ 1536 Million and in 2001 it was $ 1394 Million.
Now putting these values in the formula…
( )
[( ) ]
( )
Where Gf is growth in fish and fish preparations
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11. Relative Comparative Advantage Index
It measures the potential of exports in a country. It explain that if the country in using its trade potential in a
product of industry or not? The relevant measure for India is as follows…
We selected Indian textile industry for this analysis. The total export of textile industry of India is $ 22130
million and the total export of India is 163132. And the total world exports are around $ 15.78 trillion in 2008
and the share of textile was 345 billion. Now putting all these values in the given formula…
( )
( )
Where RCAit is Indian textile industry revealed comparative advantage index
Trade Complementary Index:
It measures the similarity of one country with the other country. The Pakistan exports of petroleum products
were $ 378.5 million and the imports of India of petroleum products were 79645. So the remaining
calculations are as follows…
(| |)
It shows that India and Pakistan has very much similarity between their imports and exports. Both are
developing countries having major trade shear of agricultural goods. Both are not oil producing countries so
that is why they import huge amount of petroleum products and use them to run their economy.
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