COUNTRY PROFILE: INDIA

INDEX

I.

Basic Economic & Trade Policies of India

II.

Tariff Schedule of India

III.

Trade-related Government Structures

BASIC STRUCTURE
8th largest in the world (nominal
GDP)
Member of G20 & BRICS
19th largest exporter & 11th largest importer
Total trade in goods & services to GDP: 47%

(2010)

Description
Industry

Services

26% of GDP
(Textile: 14%)

13th in the world (output)

(IT & Process outsourcing)

Largest source of employment

Agriculture

2nd worldwide in farm output

17% of GDP

FOREIGN TRADE POLICY

I. Market Diversification
Recession-induced Decline in demand in
developed economies
& Associated with decline in Indias exports
Market diversification efforts:
26 new countries included within the ambit of
Focus Market Scheme
Incentives for Focus Market Scheme
(special duty credit script up to 3%)

Market Expansion efforts:

Look East Policy

CEPA with South Korea
Trade in Goods Agreement with ASEAN

(2009/08-2014/03)

FOREIGN TRADE POLICY

(2009/08-2014/03)

I. Market Diversification
Recession-induced Decline in demand in
developed economies
& Associated with decline in Indias exports
Market diversification efforts:
26 new countries included within the ambit of
Focus Market Scheme
Incentives for Focus Market Scheme
(special duty credit script up to 3%)

Market Expansion efforts:

Look East Policy

CEPA with South Korea
Trade in Goods Agreement with ASEAN

Concluded

Current
Engagement/
Under negotiation

Under
Consideration

SAFTA (South Asian FTA)

BIMST-EC

IBSA (FTA)

APTA (Asia Pacific TA)

EFTA TIA

South Africa (FTA)

ASEAN (FTA)

EU (FTA)

New Zealand (FTA)

MERCOSUR (PTA)

GCC (FTA)

Taiwan (FTA)

Nepal (Treaty of Trade)

SACU (PTA)

Russia (CECA)

Butan (TA)

Mauritius (CECPA)

Switzerland (FTA)

Sri Lanka (FTA)

Thailand (CECA)

Uruguay (FTA)

Singapore (CECA)

Israel (FTA)

Iran (FTA)

Afghanistan (PTA)

Indonesia (CECA)

Egypt (FTA)

Chile (PTA)

Canada (FTA)

China (FTA)

Korea (CEPA)

Australia (CECA)

Turkey (FTA)

Japan (CECA)

Pakistan (FTA)

Malaysia (CECA)

USA (FTA)

Africa (TA)

FOREIGN TRADE POLICY

(2009/08-2014/03)

I. Market Diversification
Recession-induced Decline in demand in
developed economies
& Associated with decline in Indias exports
Market diversification efforts:
26 new countries included within the ambit of
Focus Market Scheme
Incentives for Focus Market Scheme
(special duty credit script up to 3%)

Market Expansion efforts:

Look East Policy

CEPA with South Korea
Trade in Goods Agreement with ASEAN

Move up in the value chain of export goods to

usher in the next phase of export growth.
Initiatives:
a) EPCG scheme at zero duty
(engineering products, electronics, chemicals &
pharmaceuticals, apparel and textiles, plastics,
handicrafts, chemical products, etc)

b) Minimum 15% valued addition on imported

inputs to encourage value added manufacture
export
II. Technological Upgradation

FOREIGN TRADE POLICY

Restrictive Agricultural Trade Policy
Very high agricultural tariffs: substantial
impediments for to other countries exports
NTMs effectively limiting & prohibiting certain
agricultural imports

Food security; Food self-sufficiency;

and income support for farmers
Import tariffs + Additional duty + Additional
duty (4%) + Landing fee (1%) + Educational
cess (3%)
Unattainable standards of purity; non-sciencebased health standards; ban on GMOs

TARIFF SCHEDULE
Summary

Total

Ag

Non-Ag

Product groups

Simple average final bound

48.6

113.1

34.5

Animal products

Simple average MFN applied (2012)

13.7

33.5

10.4

Dairy products

7.7

48.4

6.1

476.5

17.7

458.8

Trade weighted average (2011)

Imports in billion US$ (2011)

MFN-applied agricultural: 33.5%

Final bound duties

AVG

Max

AVG

Max

105.9

150

31.1

100

65

150

33.5

60

99.3

150

31

100

Coffee, tea

133.1

150

56.3

100

Cereals & preparations

115.7

150

31.3

150

Oilseeds, fats & oils

165.2

300

37.4

100

Sugars and confectionery

124.7

150

35.9

60

Beverages & tobacco

120.5

150

69.1

150

110

150

30

Other agricultural products

105.7

150

22.5

70

Fish & Fish products

100.7

150

29.9

30

38.3

55

7.6

10

4.9

10

Fruit, vegetables, plants

Cotton

Minerals & metals

Among highest in the world

MFN applied duties

Petroleum

Chemicals

39.6

100

7.8

10

Non-electrical machinery

28.2

40

7.3

10

Electrical machinery

27

40

7.3

10

Transport equipment

35.7

40

21.2

100

Manufactures

30.8

40

8.8

10

GOVT. STRUCTURE
Ministry of
Commerce &
Industry

Negotiations at the WTO

& trade negotiations
Mr. Kamal Nath

Directorate General
of Foreign Trade
(DOFT)

Responsible for formulating & executing

foreign trade policy/ Exim policy
Director of Foreign
Trade

Anand Sharma, Minister of Commerce

India must integrate with the world, it cannot

have a wall around itself
I. Removal & Harmonization of Non-tariff
measures
process and product
standards, the application
of intellectual property rights and other behindthe-border trade facilitation measures
II. Benefit Analysis
Early FTA experiences do not suggest simple
positive gains, as exemplified by its trade
deficits with Japan and South Korea
III. A Better (?) Alternative
RCEP between the ASEAN members and their
FTA partners can serve India as a
complementary path to the TPP.

TPP

OR

I. Room for Exceptional/ Preferential

Treatments
de factoset of bilateral
agreements to accommodate
the divergences of the putative members
exemptions and protection of sensitive sectors
(including sheltered U.S. agricultural sectors)

II. Market Expansion

The TPP offers the opportunity to gain
preferential access to thriving and fast-growing
markets in Southeast Asia, in addition to
Canada, Japan, Mexico, and the United States.
III. Political Economic Reasons
TPP as a hedging device to ensure a U.S.
presence in the region amidst Chinas rise

INDIVIDUAL TRADE AGREEM

THANK YOU!