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Total Indian exports & imports now exceed US$350 billion, a statistic that verifies India's growing importance in global trade.
Traditionally, India has imposed tariffs and other restrictions to protect its farm-based domestic economy. In 2005, the Indian economy was 20% agriculture, 19% industries and 61% services. India's Prime Minister, Manmohan-Singh, now promotes freer trade. His government has reduced controls on foreign trade and investment. To give foreigners unfettered access to India's vast and growing market of 1.1 billion consumers, more reforms are required. Averaging 12.5% on non-agricultural items in 2006, Indian tariffs are now competitive with other countries that belong to the Association of South East Asian Nations (ASEAN). Consequently, India has more than doubled its trade with ASEAN members. China is now India's second-largest trade partner, after the United States. Sino-Indian trade has grown an average of 32% per year since 1996, and reached US$20 billion in 2006. Following a recent economic summit in India's commerical capital, Mumbai, both countries set a deadline of October 2008 to complete feasibility studies for a regional trading arrangement. Key to this agreement is the reduction or removal of trade barriers. And The Winner Is...Prime Minister Singh's vision extends far beyond India's role as a regional trade power. Inspired by lower tariffs and Singh's more liberal foreign trade policy, Indian exports have grown more than 25% per year to over $100 billion in fiscal 2005-6. Top Indian exports include engineered goods, gems & jewellery, chemicals and textiles. India has also become a top exporter of software services and software workers. Imports and exports between India and the United States were valued at $30 billion in 2006, with India enjoying a surplus of over $13 billion. American corporations including IBM, Microsoft and General Electric have just announced investments in India totalling more than $20 billion. Also, India has negotiated unprecedented access to American nuclear technology. In addition, India has made great strides in improving trade with the European Union, another major trade partner focused on lowering or eliminating Indian tariffs. Although India's trade deficit is higher than that of the U.S., reduced tariffs are helping to lessen India's trade burden by encouraging global demand for Indian exports. Sources: WTO.org International Trade Statistics 2006, CIA The World Factbook, China Daily November 24, 2006, indiaonestop.com
The copyright of the article India Invests In Lower Tariffs in International Tariffs is owned by Daniel Workman. Permission to republish India Invests In Lower Tariffs in print or online must be granted by the author in writing.
Comments
Feb 1, 2007 8:36 AM
ritesh shah :
Mar 19, 2007 11:15 AM
Daniel Workman :
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