The Dwindling Trade Policy Scenario in India: Fresh Insights

Wani, Nassir Ul Haq and Grover, Veena (2024): The Dwindling Trade Policy Scenario in India: Fresh Insights.

Abstract

India faces significant challenges in trade policy, including global economic contraction, protectionism, delayed implementation of mega-trade agreements, and concerns related to agriculture and fisheries subsidies. To achieve its policy objectives, the government and industry, particularly the manufacturing sector, must be prepared to seize opportunities and increase their involvement. The Indian government recently unveiled its Foreign Trade Policy 2023, aiming for a $2 trillion export objective by 2030. However, India faces numerous challenges, including a limited understanding of trade policy, an inadequately developed manufacturing sector, unsatisfactory outcomes from regional trade agreements, and constrained relations with its primary trading partners. Economic reforms that produce a technologically innovative, open, and competitive economy are needed to support India's trade policy framework. Implementing initiatives like the Make in India programme can increase the manufacturing sector's contribution to the country's gross domestic product. The new Foreign Trade Policy 2023 should focus on establishing long-lasting international alliances with India's principal trading partners, eliminating obstacles impeded by product and service flow, and promoting enhanced integration into worldwide supply chains. India should also adapt to international standards regarding technical trade barriers and phytosanitary measures. With the current pause or lack of progress in certain trade agreements, India has a significant amount of time to ensure adherence to these standards and re-establish the multilateral trading system's pre-eminence. This revival aligns with India's interests and benefits from the most-favoured-nation treatment facilitated by WTO-anchored multilateral trading systems.

• Item Type: MPRA Paper
• Language: English
• Keywords: Trade Policy, India, Subsidies, FTP 2023, Export Promotion, WTO
• Subjects: F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade

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