Page 185 - DECO303_INDIAN_ECONOMY_ENGLISH

Indian Economy

Notes Progress in structural reform has been uneven and often stalled. Plans to open up key
service sectors have been reversed, and no significant reforms have been implemented
effectively in recent years.
Efforts continue, however. Reform measures aiming at reducing government subsidies
and encouraging foreign direct investment were announced in 2012.

10.7 Keywords

Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS): It is an international
agreement administered by the World Trade Organisation (WTO) that sets down minimum
standards for many forms of intellectual property (IP) regulation as applied to nationals of other
WTO Members. It was negotiated at the end of the Uruguay Round of the General Agreement on
Tariffs and Trade (GATT) in 1994.
Free-trade Area: It is a trade bloc whose member countries have signed a free-trade agreement
(FTA), which eliminates tariffs, import quotas, and preferences on most (if not all) goods and
services traded between them. If people are also free to move between the countries, in addition
to FTA, it would also be considered an open border. It can be considered the second stage of
economic integration. Countries choose this kind of economic integration if their economic
structures are complementary.

General Agreement on Tariffs and Trade (GATT): It was a multilateral agreement regulating
international trade. According to its preamble, its purpose was the “substantial reduction of
tariffs and other trade barriers and the elimination of preferences, on a reciprocal and mutually
advantageous basis.” It was negotiated during the United Nations Conference on Trade and
Employment and was the outcome of the failure of negotiating governments to create the
International Trade Organisation (ITO).
Most-favoured-nation (MFN): Treating other people equally. Under the WTO agreements,
countries cannot normally discriminate between their trading partners. Grant someone a special
favour (such as a lower customs duty rate for one of their products) and you have to do the same
for all other WTO members.

10.8 Review Questions

1. Explain nature of economy of India and WTO.

2. Write a short note on GATT.
3. What are the issues that are faced by India as a developing country?
4. Explain how it is affected by the GATT.
5. Give a historical emergence of the WTO.

Answers: Self Assessment

1. Decrease of tariffs 2. Spreading out

3. Fundamental principles 4. To manage and liberalise
5. Liberalising Trade in agriculture 6. WTO manages
7. Emerging countries 8. The world bank and the IMF
9. Multidimensional instrument 10. Issue

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