Policies for international trade in india


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M.A. FINAL ECONOMICS
PAPER II
INTERNATIONAL TRADE AND FINANCE

BLOCK 4
TRADE POLICIES IN INDIA

PAPER II
INTERNATIONAL TRADE AND FINANCE
BLOCK 4

TRADE POLICIES IN INDIA

CONTENTS
Page number
Unit 1 Policies for international trade in India 4

Unit 2 Trade reforms and Multinational corporations in India 33


BLOCK 4 TRADE POLICIES IN INDIA
This block comprises two units. The first unit deals with the policies for international trade in India. It basically discusses the trade issues in India followed by foreign trade policy of India and its history since decades. India Exim policy and recent changes in foreign trade policies along with implications will be some other areas of discussion.
Unit 2 throws light on trade reforms and working and regulations of Multinational corporations in India. Crisis as the cause to reforms and various trade reforms are revealed. Impact of trade reforms on growth of the nation and employment are discussed. External debt problem of India has been dealt in detail and Multinational corporations their mechanism and regulations in India are explained in detail. Finally various initiatives taken by Indian government to promote trade are focused.

UNIT 1
POLICIES FOR INTERNATIONAL TRADE IN INDIA
Objectives
On successful completion of this unit, you should be able to:


  • Appreciate the concept of trade policy in context of India

  • Identify the Trade issues in India

  • Know the history of trade policy in India

  • Recognize the India Exim policy

  • Explain the recent changes and their implications in foreign trade policy



Structure
1.1 Introduction

1.2 Trade issues in India

1.3 Foreign trade policy of India – Since decades

1.4 India Exim policy

1.5 Recent changes and their implications

1.6 Summary

1.7 Further readings

1.1 INTRODUCTION

International trade is the exchange of goods and services across national borders. In most countries, it represents a significant part of GDP. While international trade has been present throughout much of history (see Silk Road, Amber Road), its economic, social, and political importance have increased in recent centuries, mainly because of Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing. In fact, it is probably the increasing prevalence of international trade that is usually meant by the term "globalization".

Although there are usually few trade restrictions within countries, international trade is usually regulated by governmental quotas and restrictions, and often taxed by tariffs. Tariffs are usually on imports, but sometimes countries may impose export tariffs or subsidies. All of these are called trade barriers. If a government removes all trade barriers, a condition of free trade exists. A government that implements a protectionist policy establishes trade barriers.

The fair trade movement, also known as the trade justice movement, promotes the use of labour, environmental and social standards for the production of commodities, particularly those exported from the Third and Second Worlds to the First World. Such ideas have also sparked a debate on whether trade itself should be codified as a human right.

Standards may be voluntarily adhered to by importing firms, or enforced by governments through a combination of employment and commercial law. Proposed and practiced fair trade policies vary widely, ranging from the commonly adhered to prohibition of goods made using slave labour to minimum price support schemes such as those for coffee in the 1980s. Non-governmental organizations also play a role in promoting fair trade standards by serving as independent monitors of compliance with fair trade labeling requirements.

In this unit we will throw light on various initiatives to promote Indian foreign trade.
1.2 trade issues in India
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