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Foreign Trade Policy of India Implementation Evidence from Indian States

Explore the transformation of India's Foreign Trade Policy pre- and post-1990, examining the shift towards liberalization, increased GDP per capita, and the focus on inclusive growth. Discover the critical role of trade in India's global position and the objectives of the National Foreign Trade Policy. Investigate the impact of trade policy on livelihoods, grassroots stakeholders, and product-specific growth through case studies and recommendations for a more inclusive, consultative approach.

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Foreign Trade Policy of India Implementation Evidence from Indian States

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  1. Foreign Trade Policy of IndiaImplementation Evidencefrom Indian States

  2. India and Trade Liberalisation • Pre 1990 scenario: Closed economy; average tariffs exceeded 200 percent; extensive quantitative restrictions on imports; stringent restrictions on foreign investment • Post 1990 scenario: Peak duties down from 400% to 45%, phasing out of QRs; investment liberalisation • GDP per capita has increased from US$ 374 in 1990 to US$ 1192 in 2009 (World Bank, World Development Indicators, July 2011)

  3. India and World Trade • Critical role in Doha Development Agenda • Major push for liberal global trade regime especially in services • Marked shift from protecting ‘producers’ to benefiting ‘consumers’ ("India: Foreign Trade Policy, "International Economics and Trade-South Asia", World Bank, 2011) This is reflected in India’s National Foreign Trade Policy which aims to double India’s share in global trade by 2020.

  4. Why NFTP as a Theme? Mainstreaming international trade into national development strategy Inclusive growth The objectives of NFTP (2009-14) are to: double exports by 2013-14 generate more employment

  5. Major Export Promotion Schemes ASIDE- Assistance to States for Infrastructure Development of Exports MAI - Market Access Initiative MDA - Marketing Development Assistance TEE - Promotion of Towns of Export Excellence VKGUY - Vishesh Krishi and Gram Udyog Yojana FMS - Focus Market Scheme FPS - Focus Product Scheme

  6. GRANITE Project Objective Enhance economic literacy at the grassroots, foster accountability in economic governance and raise a coherent civil society voice Duration 3 Years (2007-2010) States Andhra Pradesh, Maharastra, Uttar Pradesh, Tamil Nadu, Karnataka, Orissa, Rajasthan and West Bengal

  7. Activities To examine the involvement of state government and other stakeholders in the formation and implementation of NFTP To find out how the NTFP is impacting the livelihoods of stakeholders in specific product categories To advocate for a pro poor, pro development trade policy

  8. Case Studies To understand the impact of NFTP on exports of specific products To explore various channels through which benefits of international tradecan trickle downto the grassroots stakeholders

  9. Scope

  10. Methodology Questionnaires directed to KEY STAKEHOLDERS such as State Government Officials, Farmers, Manufacturers, Trading Houses, Exporters, Workers Interview and focused group discussion to discuss relevant issues

  11. Impact of NFTP

  12. Product Specific Growth

  13. Limitations of NFTP Centralised in nature – state governments are not involved, Inter-State Trade Council is dysfunctional Lack of political awareness on issues and will for reform Lack of reflection of grassroot demands in formulated trade policy Absence of representation of the civil society in the Board of Trade Lack of specific consideration for small producers Lack of necessary export infrastructures and R&D

  14. CUTS Recommendations The policy making process should be more inclusive and consultative with special attention to grassroot stakeholders Special schemes should be targeted towards small producers - technical assistance and capacity building programmes for small producers need to be undertaken more frequently Information dissemination mechanisms need to be more extensive and better structured continuedcontinued

  15. CUTS Recommendations Schemes should be made less complex and more transparent More attention needs to effective implementation of schemes – sustainability impact assessment NFTP should provide a mechanism to achieve better coordination among various stakeholders in the supply chain

  16. Thank You

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