This presentation was a part of my group project study at M S Ramaiah Institute Of Management, Bangalore. Co-Developed by : Shashank M.A, Prasad E. Prabhu, Binit chouraria, Koushik Basak & Uma Maheshwar Rao (MSRIM Bangalore)
By:-
Aniruddh Tiwari
Linkedin :- http://in.linkedin.com/in/aniruddhtiwari
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR
GATT & WTO - Their Impact on India
1. GATT & WTO
Its Impact on Indian Foreign Trade
By:-
• Aniruddh Tiwari
• Binit Chouraria
• Kaushik Basak
• Prasad E. Prabhu
• Shashank M.A.
• Umamaheshwar Rao
2. Objective & Hypothesis
• Objective:
1) To study the benefits of WTO & GATT on
Indian Foreign Trade.
2) Analysis of three sectors namely Agriculture,
Textile & Service.
• Hypothesis(H0):
Indian foreign trade unaffected by WTO Policies
3. Indian foreign trade:
•Indian economic policy after independence was influenced by the colonial
experience, which was seen by Indian leaders as exploitative,and by those
leaders' exposure to democratic socialism as well as the progress achieved
by the economy of the Soviet Union.
•Domestic policy tended towards protectionism, with a strong emphasis on
import substitution, industrialization, state intervention, a large public
sector, business regulation, and central planning,while trade and foreign
investment policies were relatively liberal.
•India's economy was mostly dependent on its large internal market with
external trade accounting for just 20% of the country's GDP.
Until the liberalization of 1991, India was largely and intentionally isolated
from the world markets, to protect its economy and to achieve self-
reliance. Foreign trade was subject to import tariffs, export taxes and
quantitative restrictions.
4. •India's exports were stagnant for the first 15 years after independence, due to
the predominance of tea, jute and cotton manufactures, demand for which was
generally inelastic. Imports in the same period consisted predominantly of
machinery, equipment and raw materials, due to nascent industrialization.
•Since liberalization, the value of India's international trade has increased sharply.
India's major trading partners are the European Union, China, the United States
and the United Arab Emirates.
•In 2009–10, major export commodities included engineering goods, petroleum
products, chemicals and pharmaceuticals, gems and jewellery, textiles and
garments, agricultural products, iron ore and other minerals. Major import
commodities included crude oil and related products, machinery, electronic goods,
gold and silver.
•Its September 2010 exports were reported to have increased 23% year-on-year
to US $18.02bn, while its imports were up 26.1% at $27.14bn. At US$13.06bn
Augusts' trade gap was the highest in 23 months but the economy is well on the
road to cross $200 billion mark in exports for the financial year 2010–11.
5. GATT
The General Agreement on Tariffs and Trade (typically
abbreviated GATT) was negotiated during the UN Conference
on Trade and Employment and was the outcome of the failure
of negotiating governments to create the International Trade
Organization (ITO).
GATT was formed in 1948 and lasted until 1993, when it was
replaced by the World Trade Organization in 1995.
6. GATT and WTO trade rounds
Name Start Duration Countries Subjects covered Achievements
Signing of GATT, 45,000
Geneva April 1947 7 months 23 Tariffs tariff concessions affecting
$10 billion of trade
Countries exchanged some
Annecy April 1949 5 months 13 Tariffs
5,000 tariff concessions
Countries exchanged some
September 8,700 tariff concessions,
Torquay 8 months 38 Tariffs
1950 cutting the 1948 tariff
levels by 25%
Geneva $2.5 billion in tariff
January 1956 5 months 26 Tariffs, admission of Japan
II reductions
September Tariff concessions worth
Dillon 11 months 26 Tariffs
1960 $4.9 billion of world trade
7. Tariff concessions
Kennedy May 1964 37 months 62 Tariffs, Anti-dumping worth $40 billion of
world trade
Tariffs, non-tariff Tariff reductions worth
Tokyo September 1973 74 months 102 measures, "framework" more than $300 billion
agreements dollars achieved
The round led to the
creation of WTO, and
extended the range of
trade negotiations,
Tariffs, non-tariff leading to major
measures, rules, reductions in tariffs
services, intellectual (about 40%) and
Uruguay September 1986 87 months 123 property, dispute agricultural subsidies,
settlement, textiles, an agreement to allow
agriculture, creation of full access
WTO, etc for textiles and clothing
from developing
countries, and an
extension of intellectual
property rights.
Tariffs, non-tariff
measures, agriculture,
labor standards,
environment, The round is not yet
Doha November 2001 ? 141
competition, concluded.
investment,
transparency, patents
etc
8. WTO:
•The World Trade Organization (WTO) is an organization that intends to supervise
and liberalize international trade. The organization officially commenced on January
1, 1995 under the Marrakech Agreement, replacing the General Agreement on
Tariffs and Trade (GATT), which commenced in 1948.
•The organization deals with regulation of trade between participating countries; it
provides a framework for negotiating and formalizing trade agreements, and a
dispute resolution process aimed at enforcing participants' adherence to WTO
agreements which are signed by representatives of member governments and
ratified by their parliaments.
• The WTO has 153 members representing more than 97% of total world trade and
30 observers, most seeking membership. The WTO is governed by a ministerial
conference, meeting every two years; a general council, which implements the
conference's policy decisions and is responsible for day-to-day administration; and
a director-general, who is appointed by the ministerial conference. The WTO's
headquarters is at the Centre William Rappard, Geneva, Switzerland.
9. INDIA AND WTO:
•India is one of the founding members of WTO along with 134 other countries.
India's participation in an increasingly rule based system in governance of
International trade, would ultimately lead to better prosperity for the nation.
•Various trade disputes of India with other nations have been settled through
WTO.
•India has also played an important part in the effective formulation of major
trade policies. By being a member of WTO several countries are now trading with
India, thus giving a boost to production, employment, standard of living and an
opportunity to maximize the use of the world resources.
•According to the WTO Secretariat Report, along with the policy statement by the
Government of India, 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.
•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. If the
trend continues then by 2025, India is expected to cater to the software and
services demands of major giants of the business world.
27. Further Work
• To project the increase in imports and exports
over the next 10 years
• To study the non trade barriers to trade and
its effect on India
• Analysis of WTO provisions on three sectors
namely agriculture , textile and services.
28. References
• Dhar, Biswajit and Kallummal, Murali (2007), Non Trade Barriers in Doha Round- Is a Solution In Sight?
• Acharyya, Rajat (2006), Trade Liberalization, Poverty and Income Inequality in India
• Mehta, Rajesh (2006), Nontrade Barriers Affecting India’s Exports
• Singh, S.P. (2004), Post WTO Era: Impact on Export Prospects of Livestock Products
• Kathuria, Monika (2010), Doha Round of Multilateral Trade Negotiations- Critical Issues in Trade Development Pertaining to
India
• Pathak, Shubhangi (2006), Liberalization of Financial Services Under The WTO
• Sachs, Jeffrey D., Bajpai, Nirupam and Ramiah, Ananthi (2001), Understanding Regional Economic Growth in India
• Srinivasan, T.N., (2002), Economic Reforms and Global Integration
• Goldar, Bishwanath (2005), Impact on India of Tariff and Quantitative Restrictions Under WTO
• Gupta, R.K., (2005), WTO and Implications for Indian Economy- A Review
• Ministry of Commerce website (http://commerce.nic.in)
• Indian Statistical Institute (http://isical.ac.in)
• Reserve Bank of India website (http://rbi.org.in)
• Miscellaneous sources from the internet