Imact on indian economy?

indian economy has grown rapidly on past decade, real gdp growth averaging 6% annually, in part due continued structural reform, including trade liberalization, according wto secretariat report on trade policies , practices of india.

social indicators, such poverty , infant mortality have improved during last ten years. in order achieve further significant reductions in poverty, india targeting higher real gdp growth of between 7% , 9% (compared 5.4% expected 2001/02); meet goal, important, stressed authorities, continue, , accelerate, reform process , increase competition in economy.

wto secretariat report, along policy statement government of india, serve basis third trade policy review (tpr) of india trade policy review body of wto on 19 , 21 june 2002.

recognizing important linkages between trade , economic growth, government has simplified tariff, eliminated quantitative restrictions on imports, , reduced export restrictions. plans further simplify , reduce tariff. however, level of protection through tariff remains relatively high , anti-export bias inherent in imports , other constraints still remains. counteract anti-export bias, export promotion measures have gained in importance. government has announced further increase in these measures , plans continue reforms of tariff , other taxes.

tariff , tax reform crucial address problem of high fiscal deficits, have continue grow despite efforts reduce public spending. moreover, customs tariff accounting 30% of net government tax revenue, further reform of tariff may depend on major tax reform.

report notes authorities firm in view improving economic growth rate requires further structural reform. restrictions on trade , competition have been reduced, constraints associated infrastructure , regulatory bottlenecks have become increasingly evident , need addressed urgently both through regulatory reform , through increased investment. despite further liberalization of fdi regime, india’s record in attracting investment remains disappointing, fdi accounting 1% of gdp. government has taken various steps improve enforcement of intellectual property rights should attract fdi.

major development since previous review removal of import restrictions maintained balance-of-payments reasons. thus, customs tariff has become main form of border protection. there have been significant recent efforts rationalize tariff, but, numerous exemptions based on end-use, remains complex , applied tariffs, averaged 32% in 2001/02, remains relatively high. result of additional bindings taken india in wto, share of tariff lines bound has increased since previous review, 67% 72%. average (final) bound rate 50.6%, higher applied mfn rate; gap provided ample scope applied rates raised on few agricultural products.

while import licensing , tariff restrictions declining, there appears have been increase in other border measures such anti-dumping, 250 cases initiated since 1995. internal reforms have concentrated on improving efficiency , competition in economy. thus, while industrial policy remains important, scope seems have been reduced significantly. in addition, since previous review, there has been reduction in number of activities reserved public sector , small scale industry. need increased competition being addressed gradually reducing degree of direct government involvement in economic activities, including through programme restructure , privatize state-owned companies. privatization programme has far had limited success , must stepped address fiscal deficit. in addition, price controls, maintained on several products including fertilizers, petroleum products , in agriculture, add fiscal burden of subsidies. (implicit , explicit subsidies estimated @ 14,5 % of gdp in mid-1990s).

policy in agriculture sector has been guided domestic supply , self-sufficiency considerations. thus, sector shielded through import , export controls, including tariffs, state trading, export restrictions and, until recently, import restrictions. result of policy has been substantial increase in stocks unsustainable levels , costs associated maintaining these stocks.

in services, significant reforms have been pursued since previous review, in telecommunications, financial services and, extent, in infrastructure services, such power , transport. liberalization of telecommunication services has resulted in increase in availability , reduction in tariffs. reduction in telecommunication tariffs benefit software sector, 1 of major success stories in recent years.

efforts have been made address transportation , power shortages although mixed results. electricity, in particular, remains in short supply , constrained loss making state electricity boards (sebs).

report concludes india’s economic reform programme resulted in strong economic growth throughout 1990s. recent slowdown, although partly due overall slowdown in world economy, demonstrates necessity of continuing these reform efforts. in particular, difficult decisions required redress fiscal imbalance, reducing subsidies, completing process of tariff , tax reform, , stepping-up privatization of state-owned enterprises.

trade policy reviews exercise, mandated in wto agreements, in member countries’ trade , related policies examined , evaluated @ regular intervals. significant developments may have impact on global trading system monitored. each review, 2 documents prepared: policy statement government of member under review, , detailed report written independently wto secretariat. these 2 documents discussed wto’s full membership in trade policy review body (tprb). these documents , proceedings of tprb’s meetings published shortly afterwards. since 1995, when wto came force, services , trade-related aspects of intellectual property rights have been covered.



review, wto’s secretariat report, policy statement prepared government of india, discussed trade policy review body on 19 , 21 june 2002. secretariat report covers development of aspects of india’s trade policies, including domestic laws , regulations, institutional framework, trade policies , practices measure, , developments in selected sectors.

attached press release summary observations of secretariat report , parts of government policy statement. secretariat , government reports available under country name in full list of trade policy reviews. these 2 documents , minutes of tprb’s discussion , chairman’s summing up, published in hardback in due course , available secretariat, centre william rappard, 154 rue de lausanne, 1211 geneva 21.

what impacts of wto on indian economy?
wan't know how policies of wto have influenced india or indian economy

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