Trade policy is an essential aspect of any country’s economic strategy, and India has been actively working on its trade policies to boost its domestic growth and international trade relations. In this article, we will discuss India’s trade policy, its impact on the economy, and the challenges that the country needs to overcome to improve its trade performance.
India’s trade policy focuses on promoting trade and investments, with the objective of creating an environment that facilitates the growth of the country’s export potential. The policy aims to increase the country’s export competitiveness by providing support to various sectors, including manufacturing, services, and agriculture. India’s trade policy also includes measures to protect domestic industries and provide a level playing field for both domestic and international players.
The government has implemented measures such as anti-dumping duties, countervailing duties, and safeguard measures to protect domestic industries from unfair competition. Additionally, the government has been promoting foreign investments in the country through initiatives like Make in India, which aims to increase the share of manufacturing in the GDP and create jobs.
India’s trade policy also involves engagement with regional and multilateral trade agreements. The country is a member of the World Trade Organization (WTO) and has been negotiating various regional and bilateral trade agreements, such as the Regional Comprehensive Economic Partnership (RCEP) and the India-EU Free Trade Agreement.
The impact of India’s trade policy has been significant, with the country’s exports growing substantially in recent years, leading to an improved balance of trade. The government’s focus on promoting manufacturing has also resulted in increased foreign investment and job creation. However, the country needs to address various challenges to improve its trade performance.
One of the significant challenges is addressing infrastructure bottlenecks, including transport and logistics, to reduce the cost of doing business. The government also needs to focus on improving the ease of doing business and reducing regulatory hurdles. These efforts will improve the country’s ability to attract foreign investments and enhance its overall trade performance.
In conclusion, India’s trade policy is focused on promoting trade and investments, protecting domestic industries, and engaging with regional and multilateral trade agreements. The policy has had a significant impact on the country’s economic growth and is expected to continue driving growth in the coming years. However, India needs to address the challenges it faces to improve the ease of doing business and reduce regulatory hurdles to sustain its momentum.