INDIA BUSINESS WORLD - FEBRUARY 2007
The Month that was ...

WTO TO REVIEW INDIA'S TRADE POLICY

The World Trade Organisation (WTO) will review India's trade policy this May after a gap of more than four years. With the Indian economy growing at a rate of 9% and a buoyant foreign trade, the review could not have come at a better time.

Eager to show the world that its reform process is on the right track, the commerce & industry ministry has shot off letters to all economic ministries and departments asking for inputs on important events and significant policy changes since 2002.

India is planning to focus the review around the changes in policy made in various sectors in the last four years, leading to further opening of the economy. It also wants to project a picture of the road ahead.

The commerce department has sought inputs from various ministries and departments including, finance, telecom, textiles, petroleum & natural gas, chemicals and agriculture. These departments have been asked to provide their views on specific concerns related to WTO rules and a road-map on what is expected in the near term.

Review of trade policies of member nations is a regular activity of the WTO with the frequency of each country's review varying according to its share of world trade. In India's case, the review happens every four years. While there are no binding implications flowing from the review, a good review can help in improving the global perception of a country's economic structure.

"The WTO's review as well as the country's own review is put on the WTO's website. An interested party has to just click on these to get a complete picture of all issues pertaining to a country's trade and economy," commerce secretary Gopal Pillai told.

The commerce department has pointed out that in the forthcoming trade policy review, it was important to project policies as well as concerns clearly and effectively. On the road-map to be provided by concerned ministries and departments for inclusion in the country report, the commerce department has advised that it should include the long-term strategic policy orientation that would be followed, the intermediate policy goals and the empirical results that are expected to be realised.