India's Exports in the Post-WTO Phase

The ten-year transitory phase of the WTO has come to an end on 31 December 2004. In the post-WTO phase, the members are expected to bring their trade policies increasingly in line with WTO directive, i.e., to reduce the barriers on imports. It is widely held that India's exports would rise significantly in the post-WTO phase, owing to the potential increase in the level of market access. Since future exports are a function of current level of competitiveness, it is interesting to note whether Indian exports are competitive in the world market. The current paper compares the recent Indian export performance with that of China, and attempts to analyze the situation through various features India's export basket, namely competitiveness, diversification trends and instability. In the light of the analysis, the recent stance adopted by India at the WTO negotiation table and elsewhere is critically examined. Finally, based on the findings, the future policy options are explored.