1 / 14

Trade Liberalisation in Environmental Goods Experiences from India

Trade Liberalisation in Environmental Goods Experiences from India. Format of presentation. An overview of Indian environmental industry Autonomous liberalization Challenges and concerns Environmentally preferable products. Development of Indian environmental industry. Growing awareness

gegan
Download Presentation

Trade Liberalisation in Environmental Goods Experiences from India

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Trade Liberalisation in Environmental GoodsExperiences from India

  2. Format of presentation • An overview of Indian environmental industry • Autonomous liberalization • Challenges and concerns • Environmentally preferable products

  3. Development of Indian environmental industry Growing awareness • Health issues related to pollution and increased judicial activism • Industry realizes that being environmentally responsible is being economically sound. Improved enforcement of legislation • 1974: Water (Pollution and Control of Pollution) Act • 1974: Central Pollution Control Board • 1985: Ministry of Environment and Forests • 1986: Environment Protection Act

  4. Composition of Indian environmental industry • Equipment Suppliers – Specialized • System Suppliers • Chemical Suppliers • Engineering, Procurement and Construction Contractors/Lump-sum turnkey Contractors • Consultants • Build Own Operate and Transfer (BOOT) and Build Own Operate (BOO) Operators • Analytical Services – Laboratories etc

  5. Characteristics of Indian environmental industry • Industry dominated by small and medium size units (Large- 100 no’s, Medium - 250 ) • Market dominated by end of the pipe treatment plants • Lack of resources: Deficient in capital, R&D, specialized treatment technologies for complex/ special pollutants • Traditional strength (conventional air pollution equipment / waste water management/ environmental consulting/ solar cells and hydraulic turbines)

  6. Characteristics of Indian environmental industry… • Presence of foreign companies (Licensing, Joint ventures, and wholly owned subsidiaries) • Foreign collaboration (US - 33 %, Germany 14 %, UK 13 %, Canada 7 %) • Important Trading Partners (Import): USA, Germany, Japan, UK, Canada, Australia • Important Trading Partners (Export): Middle East, Vietnam, Indonesia, and other countries in South East Asia

  7. The Market(Estimates in US $millions)

  8. Autonomous Liberalisation • FDI with 100% foreign equity allowed through automatic route • Preferential tariffs for pollution control equipments • Duty exemptions for equipments for R&D projects and public funded research institutions • Preferential tariffs for renewable energy equipments • APEC list: Average Bound rates- 25% to 40% (35%) Average Applied rates-10 % to 25% (22%)

  9. Challenges and Concerns • Availability of funds/investment • Availability of technology and its diffusion • Absence of strict enforcement of quality parameters for imported capital equipments • Use for environmental purposes: Electricity meters, liquid flow meters, heat exchangers, conveyors and centrifugal pumps are general industrial equipments • Tackling tariff anomalies i.e. a structure where duties on inputs would be higher than on finished goods

  10. India’s Trade (Goods in APEC list) (million US$) Categories of goods India’s trade in all the items mentioned in APEC list Imports Exports Air pollution control 135.71 73.25 Water pollution control 237.45 155.83 Solid/ hazardous waste management 137.32 56.14 Remediation/ clean-up of soil and water 0.89 0.1 Monitoring/ analysis and assessment 588.00 108.39 Noise/ vibration abatement 39.87 37.57 Potable water treatment 62.54 37.57 Other recycling systems 25.52 3.56 Renewable energy plant 32.96 41.41 Heat/ energy management 8.09 6.62

  11. Challenges and Concerns… Export opportunities for Indian companies • Trade data in environmental goods APEC list -Imports US$ 1340 million -Exports US$ 610 million • Technology licensing agreements with market restriction clauses (Indian companies have an edge in pricing structure ) • Lack of proper marketing and distribution network • Applied tariff rates in developed countries are already at a nuisance level.

  12. Inherently environmentallyfriendly goods • Environmentally friendly Natural products • Non agricultural products • Superior to other products • Jute • Coir • Rattan and bamboo • Natural and vegetable dyes

  13. Year Jute Coir Bamboo/ Rattan Cotton handloom 1998/99 126.57 64.48 - 455.98 1999/00 119.96 65.88 3.91 456.94 2000/01 150.21 66.19 3.99 465.68 2001/02 133.33 - 4.16 432.97 Trend in exports from India (million US$)

  14. The way forward • Balanced approach needed to ensure flow of trade gains, technology and development of local industries. • General industrial items should not get place in a possible list of environmental goods. • Transfer of technology at affordable terms. The Working Group on Trade and Technology Transfer could look into the relationship between trade in environmental goods and the transfer of clean technology. • Less than full reciprocity for developing countries

More Related