Advanced Search
MyIDEAS: Login

India's Trade Integration, Realising the Potential

Contents:

Author Info

  • Przemyslaw Kowalski
  • Nora Dihel

Abstract

This study examines economic implications of India’s trade and trade policy reforms during the period from 1990 to 2007. It first describes India’s economic growth and the composition and performance of its trade at the product and broad sector level. Next, recent reforms and the current trade policy stance are assessed and recommendations for further policy reforms are discussed. The impact of India’s openness on its total factor productivity is also addressed. The analysis shows that India has gone a long way in reducing its tariffs on non-agricultural products as well as selected non-tariff barriers and that this had a positive impact on the economy. Nevertheless, moderate to high protection still persists and adds to the hurdles faced by Indian enterprises. Overall, India’s pattern of specialisation is still affected by the pre- 1990s policies; while certain services have recently performed very well, their high reliance on skilled labour and capital means they can only address a small portion of the Indian jobless growth problem. India’s endowment structure and the recent services-dominated export profile suggest that it needs to improve conditions for the development of its manufacturing sector, with a particular emphasis—at this stage—on labour-intensive activities. The remaining goods and services trade barriers combine with domestic red tape, infrastructure bottlenecks and factor markets rigidities that restrict new entry and competition to keep India’s competitiveness, particularly in agriculture and manufacturing, at relatively low levels. In an effort to offset the remaining protection, India has developed a complex system of duty exemption schemes, special investment and establishment rules and special economic zones (SEZs) that provide incentives particularly to exporting firms. The paper argues that, while such a policy can have important demonstration effects, across-the-board reduction of trade and business barriers could have more beneficial economy-wide and export effects.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://dx.doi.org/10.1787/224123212531
Download Restriction: no

Bibliographic Info

Paper provided by OECD Publishing in its series OECD Trade Policy Papers with number 88.

as in new window
Length:
Date of creation: 19 May 2009
Date of revision:
Handle: RePEc:oec:traaab:88-en

Contact details of provider:
Postal: 2 rue Andre Pascal, 75775 Paris Cedex 16
Phone: 33-(0)-1-45 24 82 00
Fax: 33-(0)-1-45 24 85 00
Email:
Web page: http://www.oecd.org
More information through EDIRC

Related research

Keywords: productivity; trade; tariffs; India; services trade barriers; special economic zones; services; revealed comparative advantage; manufacturing;

This paper has been announced in the following NEP Reports:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Przemyslaw Kowalski, 2008. "China and India: A Tale of Two Trade Integration Approaches," Working Papers id:1637, eSocialSciences.
  2. Ana Luísa Coutinho & Maria Paula Fontoura, 2012. "What determines the export performance? A comparative analysis of China and India in the European Union," Working Papers Department of Economics 2012/35, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
  3. Jaejoon Woo, 2012. "Technological Upgrading in China and India: What Do We Know?," OECD Development Centre Working Papers 308, OECD Publishing.
  4. Mehta, Swati, 2010. "Technology Dynamism: Analyses of Changing Structure of Trade in Organized Manufacturing Industries In India," MPRA Paper 41495, University Library of Munich, Germany.
  5. Raja M. Mitra, 2009. "IT industry in transformation: opportunities and challenges for India," LSE Research Online Documents on Economics 38353, London School of Economics and Political Science, LSE Library.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:oec:traaab:88-en. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.