Indian Trade Market
India is fast emerging as a global leader, what with its vast, natural resources, and huge base of skilled manpower. Combined with cutting edge technology, Indian trade market is making its presence felt all across the world. Indian products and services are seen as of international standards and globally competitive. Trade in India has made good progress on liberalizing trade regimes and cutting tariffs since the recent times, when most of the countries started with reforms. Get ready for your introduction to Indian trade market.
Until quite recently, considerable protection levels reflected in the significant tariff peaks and dispersed protection levels were seen in India. Serious constraints to private activity in infrastructure, economic governance, financial impeded export competitiveness too. Insufficient and unreliable power supply, inhibiting red tape is a few of the many examples of these constraints.
Undertaking considerable industrial deregulation and other structural reforms, trade in India recognizes that strong exports are critical for overall economic growth and poverty reduction. Export-led growth has thus become a key thrust for the trade in India.
Integrating with the global economy, India has recorded strong export growth to the United States and the European Union markets. Getting on with your intro to Indian trade, it is important to note that Indian government recognizes the need to implement additional reforms and address significant constraints to ensure that Indian trade supports growth and benefits the poor. Continuing with trade reforms has become more complex because of concerns of how these reforms will affect employment, income distribution, poverty and vulnerability. India is focused on WTO negotiations on agricultural trade policies, and there is strong interest in services trade.
Indian trade market has made significant progress in integrating with the rest of the world. But it is interesting to note that intra-regional trade remains very low. The reasons behind these low levels of trade could be attributed to protectionist trade regimes, which discriminated against trade among larger neighbors. The continued conflict between India and Pakistan including transport and trade facilitation constraints has also contributed to these lower intra-regional trades. Seeking to increase cooperation in the areas of harmonization of product standards and customs procedures, travel rules and facilities are a must to ensure an increase in intra-regional trade in goods and services.
The World Bank too has responded to the recent acceleration in Indian trade reforms and complementary structural reforms by settling its country assistance strategies (CASs) and regional programs. Increasing and diversifying its trade-related support activities for the reform initiatives, the World Bank supports India’ initiative in boosting regional cooperation and intra-regional trade through analytical work and technical assistance. Trade reports and policy notes, technical assistance in capacity building and training are other area where the World Bank is paying attention to in order to support and boost the trade market in India.
Your introduction to trade market in India won’t be complete without mentioning that how today, Indian trade has been consolidating with the global economy, as evidenced by the noticeable increases in the merchandise trade.