Y




 

   







 
  Y 

   Y 

 
 !Y"#Y#$"

  
 
 


  


 %

 
&%
    


  


  &
 % 




 ' ( 
 )**+( 

%
 
 





   ,   &
 ( %

    


   
 
%

,%
   


-$

-$
 (

./
Y 


 INDIAN TRADE REFORMS
j Economic liberalization in India started in 1991
j The reforms brought changes in three broad areas
known as liberalization, privatization & globalization
j Liberalization did away with regulatory hurdles &
did away with licensing requirements
j Privatization reduced the role of state & public sector
in business
j Globalization made it easier for MNC to operate in
india
j Competition increased tremendously post
liberalization
j Indian being a part of WTO had to bring in certain
changes, which went well with the reforms. And
resulted in -
j Import duty reduction.
j Competition in the Market
j Increased foreign investment

As a result of the economic reforms India became one

of the fastest growing economy in the world &
became and attractive destination for MNC
 0"" 
Ê The General Agreement on Trade and Tariff (GATT) came
into existence in 1947

Ê It sought substantial reduction in tariff and other barriers to

trade and to eliminate discriminatory treatment in
international commerce.

Ê India signatory to GATT 1947 along with twenty two other

countries

Ê Eight rounds of negotiations had taken place during five

decades of its existence
 WTO
j WTO Came into existence on 1-1-1995 with the conclusion of
Uruguay Round Multilateral Trade Negotiations at Marrakesh
on 15th April 1994, to

j Ii is a organization that intends to supervise and liberalize

international trade

j The GATT still exists as the WTO's umbrella treaty for trade in
goods
 FUNCTIONS
j Administering trade agreements
j Acting as a forum for trade negotiations
j Settling trade disputes
j Reviewing national trade policies
j Assisting developing countries in trade policy
issues, through technical assistance and training
programms
j Cooperating with other international organizations
 #!!#"
j  )12
&

 

*34
%



j 2+ 
5 

6

j 
  
 
  


/
 

5)7 
)**16
  8 


 9   



 PRINCIPLES
1. Non-Discrimination
1. Most favoured Nation(MFN)
2. National Treatment policy policy.
2. Reciprocity ±
( gain from doing so be greater than the gain available from
unilateral liberalization; reciprocal concessions intend to
ensure that such gains will materialize.
3. Binding and enforceable commitments ±
( a country can change its bindings, but only after negotiating
with its trading partners, which could mean compensating
them for loss of trade
1. Transparency ±
( publish trade regulations
( respond to requests for information by other members
( notify changes in trade policies to the WTO
2. Safety valves - In specific circumstances, governments are
able to restrict trade. There are three types of provisions in this
direction
· articles allowing for the use of trade measures to attain
noneconomic objectives
· articles aimed at ensuring "fair competition³
· provisions permitting intervention in trade for economic
reasons
#"0#""Y"
The WTO oversees about 60 different agreements
which have the status of international legal texts.
some important agreements are ±
o Agreement on Agriculture
o General Agreement on trade in Services
o General Agreement on Tariffs & Trade (GATT)
o Agreement on Trade-Related aspects on Intellectual
Property Rights
BENEFITS
There are many over-riding reasons why we¶re
better off with the system than without it. Here are
10 of them ±
1. The system helps promote peace
2. Disputes are handled constructively
3. Rules make life easier for all
4. Freer trade cuts the costs of living
5. Provides more choices of products & qualities
6. Trade raises income
7. Trade stimulates economic growth
8. The basic principles make life more efficient
9. Governments are shielded from lobbying
10. The system encourages good government
 CRITICISM
j WTO is accused of widening the sociological gap
between rich and poor it claims to be fixing.
j According to Y
 $
&      %
% 
 Rich countries are able to maintain high import duties and
quotas in certain products, blocking imports from
developing countries (e.g. clothing)

 The increase in non-tariff barriers such as anti-dumping

measures allowed against developing countries
 Many developing countries do not have the capacity to
follow the negotiations and participate actively in the
Uruguay Round

 The TRIPs agreement which limits developing countries

from utilizing some technology that originates from abroad
in their local systems (including medicines and agricultural
products).
Dr Raoul Marc Jennar argues that a consultative
parliamentary assembly would be ineffective for the
following reasons
 It does not resolve the problem of "informal meetings"
whereby industrialized countries negotiate the most
important decisions
 It does not reduce the de facto inequality which exists
between countries with regards to an effective and
efficient participation to all activities within all WTO
bodies
 It does not rectify the multiple violations of the general
principof les law which affect the dispute settlement
mechanism
 India¶s commitment to WTO.
j India is committed to phased liberalization of trade
and investment and progressive integration of its
domestic economy with the world economy
j 
    
      
     




j 
 
 

j  
   

 
 
 


 
j 
 #  
  

 #
j 
 #    Y



 
j Economic reforms led to an overall increase in the
income levels in the country pushing up the demand for
FMCG.
j Increased activity and investments by MNC¶s in India
j Categories within categories created in products (such as
feminine hygiene products, men¶s toiletries, processed
foods, etc.) ,earlier not explored.
j !
 among players for greater share of the Indian
fmcg market
j 
  



led to consolidation in the country.
j Increase in product offerings.
j Many local and regional players emerged as tough
competitors.
 !Y:;"
Y#$"


Y0
j    


  Y 

0 5Y06


   8 


  

 /
°


° †
j 


   
   &
 
  /
j 

 

 
  


 
< 
 /
j Y =
 
  
/
j ; 

 
 /
j :
 %

  
 &


 
 

%
 
 
 Y0
°
   
  
 

 



   

 

 

 



 
  


  


  
 
 > 
 & 
 &
  ?

  & 
 

 5
 &

  &
 6& 
&

  &



 & &
& 
 &

 

 &  & 


 &
% 
&

&


& 
&
= 
 
/


 

 


& 


& 

&
 
% 5   6&
 
 
 &

 &
  & /
  Y0 


· 
 

 

 
( 0/
· @ 
  


 
  
1


 

 /
·     
 %
   

%
 9  
 9  /
· 
 
Y
 


 
  

 /
· 
  

  & 
 


Y0/
j 


  


 &AB
)++
  %Y & 
  
 
  /
j 
  % AB
 & B3
 
%>  ;
/
j )+
   Y0 

†
_ 
  

B6 5  


 6
26  
@6 0YY5  6
16  

A6    
36  

C6 :
   

*6 


    


)+6 Y

 

 


 
 Y0



 
 




j " 

  &
    

 

 5 ;
 # =6
8 
    %
)*@3 )**+/
j   &>;;&  & 
  & 
 

Y0 

 

 

 



   
/
j Y Y0

  

  
 


  
 9 
/
j ;   %

 %


 
 
(  
  

 

/
j >  ;
;5>;;6Y

   

    
  

  /
j ,
 

 

  

  
/
j ;%


 

/
j ;% 
/
j 
 
 

 /
  
j 
 
  !
 


  /
j > 
  
 


 Y 
   
/
j 
 / 
 
  


  &  !&   

 
 
  <  
/
j  
 #     

 
 
%  !  
  
56/
  
  Y0
 
% -
( / 2
&


  &  
  & 


  &

  &

 
  

/  



   

 
9 & %


 /   
 

% 
 , 



   

 
  & 


Y0

 
 &   





 /
X  
 

 
 

j X#
 B+++ B++)/

j :
 

Y( 
 

 
 %

 

/
j 

 
/
j    
   %

  
    
    
  /
j  
 


/
j   

 
 %%



BC

B++)
  1A


)**+/
 
 
 
 
·  % 
 >;;&&0
=
/
·     


  &
   >;;&

  

>;; 99 0YY 
0
= 
/
·    
 


% 



  &

&& 
&
 &  /
· :
  
 )++Y0
 &  

 

/
·     =  
 
 
 

/
·  
  
 


 




% 3+4
 
/
 
!
 
 
° 
 ! 
;
 B++1&







 
    


 



 
 


'0 B++3& 
@% 



 


  

 

Y

 B++B&Y

$  




 

 



 

>!;  B++3&,   



 




 


 

"# !$%%&"#





'







  


  B++C&,   
 




 5

%  &
   

6&


 5      &

 6

 5
 6

$ B++C&   

 $

  
    
 

 
%
 Y0 




  
( 
 +
,
_
%)
*%) _ %) 


 
 0 



 Lifebuoy, Cinthol, Liril, 




     
Lux, Pears, Rexona,
Mysore Sandal, Neem,
Margo


   Fair & Lovely, Pond¶s, 




Oriflame, Avon, Biotique,
Johnson & Johnson Amway,Garnier
    

  Fena, Lakhani Ariel, Tide, Henkel

     


  




   





 
  
   
  
 

 


 
!

    "




 !
   ;
  


   

Y0
 




 

Y0


 
Y0 

ÊY


    
D

 
% 


Ê

 %


  D$  %


Ê   
 
   




 

  


 
 

 D
  
 




Ê  
 





  

 D




D 

 

 


 


j #

   
 1+45)126 (   
j  < %
 
  & >;;&  
    






/

° 
 $%%*   



 

 )B+4
0
=
 


 

 2+4
0Y;5 =


 

 B+4


/

 
 

  1+4

 -


'
    .
/
0


     
  
 
 


   


E 





 


 /


1 2 



3
4  



 



  
%




  



  

  
  
 < 



 
  & 



   &


 
    
/
j    $
 

 
 9 
 
 

 %
 
 

 


 /
j :
:; 
  


 

  
 %    /
j #
   0 


 



  

 /
 



 Y0



F 

%
 
/< 

  
  ( 
%

%     = 
 /G
â   
 %




 /
â 



 
 
/
â # 
 9 &

 

 
 


 

%


 

/
°5+.16/71/0846
!+71."/9!+!+7!0

0
j  

& 
  


       8 

%
 &

 

& 
 

 
 



 
  % 





&

&E 


/
!
)° 
:
 (
 

 
 


   
 
( 

/

       %


    
     

 & 
 

  

%   
 
 /

    %
&  

 
%

 
 /
.
 !

° 
:
 54!°90+7!+!"!0"!#6.
j 
  )++

   

 



 
    ,
 

,
 / % 
 
 
 

% 
  &  



  ,
/

j ">5"


>
%


6   

 
   




 

 %
  

/

j "> 
 ,


 &  


 

 8 &   ,
 & 
,
,


 /
!
 / 
j 
  

&

  %



& %  
     

 % ( 
 


#/

j 



&   
F
# 
 
 
 

 5# 6
G  


&   #

  #  


 
/

j  
#   


 



 

 
 &

  
 
 &


 
   &

 &



 &    



   
 

 /

j 
 



 
  

 ,


 
 

  
 

/
 °0446+ 6.
j >  , 
 
 
  

 
/ 
  


  ,


 %    
 B12+4&
%
 


 
 
  

 
 
%3 )34/

j 



   

 

 

 
/

j 




  

    
 
 
/# 
%
  


 
 





/
5 
j 
 

%0&
 

 %
%


 
 %



  

 
% 

   
%%  

/

j 

 

 % 


   
 
    
 %


 /

j 




 

 
  
 
%  /

 
   

 

 %
  
  %
 


 
 
 /

j #

    
%


 

 



%  &% 
 9 8    /
% &

  

%
   
/
$0
%


.  6

# "   A3/2

  0  @A/A

Y0 BC/C

 BA/*

;

 B)/@

:  B+/*

'0  )*/3

  )*/1

 

  )C/)

Y  )2/C

?"
 i   8   ° 6 

#


Y,
Y

 Y
 0

 



Y

%  Y2 

  "8  
 E  

"


 

# 



:  38

0: 






 
 
:3

   

 
 ;

 
 ;
 "   
 "   

       
    
   

 
 ' 


%
 

;


 

 
 % 
% 
  
  





  
 
 
  &


 
%
 '


% 


 

 


   


 /
% 
  
 
 
  /
 
 

  


 
 



5E &E
 
     
/6 
 

 
 5  % % 6




&% 
 & 



5? 6&

%  &

 
 
 % 
/
Y     






9
 
&

%
  
5 
 Y 6 

  

 &


   ,
 
 /
   
° 
6   !

j 




  
 

  
 




& 
 







/
j  
     

 

  
 H,
 
 & 8 > Y2
 
 
&( Y
  


   



%
&
%
 
 
/
   .

j #   
 



 
  
 


   /

 
  
   

 
 
 
 


  / 
%


 
  &E  
 
   /
 .


 ( 

  


ï
 

    
°56"!"!5+5#6/#!6i
_ ï

j   

 
 
 

)**1& =  
 


! I)= 


 
 
/
j     


,
   


 


  &
Y
&
#


  Y

ß


j 
  


9

  
     

 

B14/
j 
Y

<+A&  



 
  


 % # /)&231


 /
j 


Y#:
 


=     
 




  

 % 


 /



j <   

 
 

   


&E 
&
Y   & 
   

 
   /
@/
/ 
j 0
= %    )C*3/ 

 
 

 
 


  /
j 
  

J

Y

2)&B++A&    
# /1C&+++5! I)&B3+6/
j    %
2C
 %#  
 &
 
B&B++  
& 
 
)C&+++#   /

:


( 



 
:

:.

 
( 

i
 
 

@/ 
"


   

 % 


 

B++)/

1/ï 


&7  &     
 
)**@/
 &    
 %


 
3+++
 

&
B)1 
  ",
    B)




 /

A/ï 

 % 


)*C1 $   
 
  
"


 ;/
   

 
 % 

%
 *++)




&B++)/ 
 




 
 E &E# &E   

 /
 % 


% *++)




&B++)/

3/ 

>;( 



   


    /
   
    E &;E &;
=

& 
:
 
E 


/

:

  


   "#

:
 


 

  

  

 Y
   &  

 ///
  & & 
 /J 

&

&
 & /
:  
 
/

 J .