WTO and its impact on India

<–2/”>a >The World Trade Organization came into being in 1995 as the successor organization to the General Agreement on Tariffs and Trade (GATT) established in the wake of the Second World War. It is a multilateral framework (an agreement among governments) for conduct of international trade in goods and Services and also for protection of Intellectual Property Rights, i.e., patents, copyrights, trademarks, etc and for discussion of trade related issues. The WTO has a set of multilateral agreements primarily on the rights and obligations (of governments) that prescribes for governments in formulation of rules, procedures and practices related to international trade.

agriculture was originally kept outside the purview of GATT till 1995. However, Uruguay Round has succeeded in bringing agriculture on the main track of GATT and agriculture trade is now firmly within the multilateral trading system. All the member countries of WTO are committed to follow set of rules embodied in WTO agreement on agriculture which covers:

(i) Domestic support,

(ii) Market access i.e., tariffs, and restrictions on imports and exports, and,

(iii) Export subsidies. The agreement-sought reduction in trade distorting domestic policies like price interventions and subsidies; reduction in export subsidies; replacing quantitative restrictions on trade with tariffs and reduction in tariffs to encourage more and freer trade.

India has always demanded that developed countries must bring down their bound tariff rates, and suggested the creation of a separate safeguard mechanism, for Food Security in developing countries. In fact, India continued to emphasize on food security as a prime Non Trade Concern and wanted that any measures adopted for its POVERTY alleviation programmes, food security and other social objectives, be exempt from any reduction commitments, while it demanded that developed countries should cut back their domestic farm support below the de-minimis levels.

Non-product specific subsidy is calculated by taking into account subsidies given for Fertilizers, water, seeds, credit and electricity. The ‘Green Box’ covers subsidies must not involve price support that is expected to cause minimal or no trade distortions.,

The World Trade Organization (WTO) is an international organization that deals with the rules of trade between nations. It was established in 1995 and has 164 member countries. The WTO’s goal is to help countries grow their economies by promoting free trade.

India joined the WTO in 1995. The WTO has had a significant impact on the Indian economy. It has helped to increase India’s exports and to attract foreign Investment. The WTO has also helped to improve India’s trade policies.

The WTO has also had some negative impacts on the Indian economy. It has led to job losses in some sectors, and it has made it more difficult for India to protect its domestic industries.

Overall, the WTO has had a positive impact on the Indian economy. It has helped to increase India’s exports and to attract foreign investment. The WTO has also helped to improve India’s trade policies. However, the WTO has also had some negative impacts on the Indian economy, such as job losses and difficulty in protecting domestic industries.

History of the WTO

The WTO was established in 1995 as a successor to the General Agreement on Tariffs and Trade (GATT). The GATT was established in 1947 and was the first international agreement to regulate international trade.

The WTO is a much more comprehensive organization than the GATT. It has a wider range of rules and regulations, and it has a more powerful dispute settlement system.

Membership of the WTO

The WTO has 164 member countries. India joined the WTO in 1995.

The WTO’s membership is open to all countries that are willing to accept its rules and regulations.

Goals of the WTO

The WTO’s goal is to help countries grow their economies by promoting free trade.

The WTO does this by:

Reducing tariffs and other trade barriers
Providing a forum for countries to negotiate trade agreements
Settling trade disputes

Impact of the WTO on India

The WTO has had a significant impact on the Indian economy. It has helped to increase India’s exports and to attract foreign investment. The WTO has also helped to improve India’s trade policies.

Positive impacts of the WTO on India

The WTO has helped to increase India’s exports. India’s exports have grown by an Average of 10% per year since it joined the WTO.

The WTO has also helped to attract foreign investment. Foreign Direct Investment (FDI) into India has increased by an average of 15% per year since it joined the WTO.

The WTO has also helped to improve India’s trade policies. India’s trade policies have become more open and transparent since it joined the WTO.

Negative impacts of the WTO on India

The WTO has led to job losses in some sectors. The WTO’s rules have made it more difficult for India to protect its domestic industries. This has led to job losses in some sectors, such as textiles and agriculture.

The WTO has also made it more difficult for India to regulate foreign investment. The WTO’s rules have made it more difficult for India to screen foreign investment and to protect its national security.

Overall impact of the WTO on India

The WTO’s impact on India has been positive. India has benefited from the WTO’s rules on tariffs and subsidies, which have helped to reduce the cost of imports and increase exports. The WTO has also helped India to negotiate trade agreements with other countries, which has opened up new markets for Indian goods and services.

Here are some frequently asked questions about the WTO:

What is the WTO?
The WTO is an international organization that deals with the rules of trade between nations. It was established in 1995 and has 164 member countries. The WTO’s goal is to help countries grow their economies by promoting free trade.
What are the WTO’s main functions?
The WTO’s main functions are to:
Administer the rules of trade between nations
Settle trade disputes between countries
Promote trade Liberalization-2/”>Liberalization
Provide technical assistance to developing countries
What are the WTO’s rules on tariffs and subsidies?
The WTO’s rules on tariffs and subsidies are designed to ensure that trade is fair and that countries do not use these measures to give their own industries an unfair advantage. Tariffs are taxes on imports, while subsidies are payments that governments make to their own industries.
How has the WTO helped India?
The WTO has helped India by:
Reducing the cost of imports
Increasing exports
Opening up new markets for Indian goods and services
Helping India to negotiate trade agreements with other countries
What are some of the challenges facing the WTO?
The WTO faces a number of challenges, including:
The rise of protectionism
The Doha Round of trade negotiations
The global financial crisis
What is the future of the WTO?
The future of the WTO is uncertain. The Doha Round of trade negotiations has been deadlocked for many years, and the global financial crisis has led to a decline in trade. However, the WTO remains an important organization for promoting free trade and helping countries to grow their economies.

The World Trade Organization (WTO) is an international organization that regulates and facilitates international trade. It was established in 1995 and is headquartered in Geneva, Switzerland. The WTO’s main functions are to:

(a) ensure that trade flows smoothly, freely, fairly and predictably;
(b) help countries negotiate trade agreements;
(c) provide a forum for resolving trade disputes;
(d) monitor national trade policies; and
(e) provide technical assistance to developing countries.

The WTO has 164 member countries, including India. India joined the WTO in 1995. The WTO’s impact on India has been positive overall. The WTO has helped to increase India’s exports and to improve its access to foreign markets. The WTO has also helped to reduce tariffs and other trade barriers, which has made it easier for Indian businesses to compete in the global marketplace.
However, the WTO has also had some negative impacts on India. For example, the WTO has forced India to open up its markets to foreign competition, which has led to job losses in some sectors. The WTO has also made it more difficult for India to protect its domestic industries from unfair trade practices.
Overall, the WTO has had a positive impact on India. However, there have been some negative impacts as well. The WTO has helped to increase India’s exports and to improve its access to foreign markets. However, the WTO has also forced India to open up its markets to foreign competition, which has led to job losses in some sectors. The WTO has also made it more difficult for India to protect its domestic industries from unfair trade practices.
The following are some of the benefits of India’s membership in the WTO:

(a) Increased exports: India’s exports have increased significantly since it joined the WTO. In 1995, India’s exports were worth US$26 billion. By 2017, India’s exports had grown to US$300 billion.
(b) Improved access to foreign markets: India’s membership in the WTO has helped it to improve its access to foreign markets. India has signed free trade agreements with several countries, including the United States, Japan, and the European Union. These free trade agreements have helped to reduce tariffs and other trade barriers, which has made it easier for Indian businesses to export their goods and services.
(c) Reduced tariffs: India’s membership in the WTO has helped to reduce tariffs on its exports. In 1995, the average tariff on Indian exports was 30%. By 2017, the average tariff on Indian exports had fallen to 10%.
(d) Increased foreign investment: India’s membership in the WTO has helped to attract more foreign investment. In 1995, foreign direct investment (FDI) in India was worth US$2 billion. By 2017, FDI in India had grown to US$60 billion.
(e) Improved intellectual property rights: India’s membership in the WTO has helped to improve its intellectual property rights (IPR) regime. India has strengthened its laws and regulations on IPR, which has helped to protect the rights of Indian inventors and creators.

The following are some of the challenges of India’s membership in the WTO:

(a) Job losses: India’s membership in the WTO has led to some job losses in certain sectors. For example, the opening up of the Indian market to foreign competition has led to job losses in the textile and garment Industry.
(b) Loss of domestic industries: India’s membership in the WTO has also led to the loss of some domestic industries. For example, the Indian government has been forced to withdraw subsidies to some industries, which has led to the closure of some factories.
(c) Unfair trade practices: India has faced some unfair trade practices from its trading partners. For example, some countries have imposed anti-dumping duties on Indian goods, which has made it difficult for Indian businesses to compete in these countries.
(d.) Environmental concerns: India’s membership in the WTO has also raised some environmental concerns. For example, some countries have argued that India’s environmental standards are not high enough.

Overall, India’s membership in the WTO has been positive. However, there have been some challenges as well. India has benefited from increased exports, improved access to foreign markets, reduced tariffs, increased foreign investment, and improved intellectual property rights. However, India has also faced some challenges, such as job losses, loss of domestic industries, unfair trade practices, and environmental concerns.