IMPACT OF THE World Trade Organization ON THE INDIAN ECONOMY INTRODUCTION: The World Trade organization a! e!ta"li!

!hed to deal ith all the #a$or a!%e&t! o' international trade and it had 'ar rea&hing e''e&t! not onl( on India)! 'oreign trade "*t al!o on it! internal e&ono#(+ The i#%a&t o' the WTO on the Indian e&ono#( &an "e anal(zed on the "a!i! and general &on&e%t!+ IMPACT: The WTO ha! "oth 'a,ora"le and non-'a,ora"le i#%a&t on the Indian e&ono#(+ FA.OURA/0E IMPACT: 12 In&rea!e in e3%ort Earning!: In&rea!e in e3%ort earning! &an "e ,ie ed 'ro# gro th in #er&handi!e e3%ort! and gro th in !er,i&e e3%ort!: 4ro th in #er&handi!e e3%ort!: The e!ta"li!h#ent o' the WTO ha! in&rea!ed the e3%ort! o' de,elo%ing &o*ntrie! "e&a*!e o' red*&tion in tari'' and non-tari'' trade "arrier!+ India)! #er&handi!e e3%ort! ha,e in&rea!ed 'ro# 56 "illion *! 7 8199:2 to 1;: "illion * 7 86<<;-<92+ 4ro th in !er,i&e e3%ort!: The WTO introd*&ed the 4AT= 8general Agree#ent on Trade in =er,i&e!2 that %ro,ed "ene'i&ial 'or &o*ntrie! li>e India+ India)! !er,i&e e3%ort! in&rea!ed 'ro# : "illion *! 7 8199:2 to 1<6 "illion *! 7 86<<;-<92 8!o't are !er,i&e! a&&o*nted2 'or ?:@ o' India)! !er,i&e e3%ort!2 62 Agri&*lt*ral e3%ort!: Red*&tion o' trade "arrier! and do#e!ti& !*"!idie! rai!e the %ri&e o' agri&*lt*ral %rod*&t! in international #ar>etA India ho%e! to "ene'it 'ro# thi! in the 'or# o' higher e3%ort earning! 'ro# agri&*lt*re 52 Te3tile! and Clothing: The %ha!ing o*t o' the MFA ill largel( "ene'it the te3tile! !e&tor+ It ill hel% the de,elo%ing &o*ntrie! li>e India to in&rea!e the e3%ort o' te3tile! and &lothing+ ?2 Foreign Dire&t In,e!t#ent: A! %er the TRIM! agree#entA re!tri&tion! on 'oreign in,e!t#ent ha,e "een ithdra n "( the #e#"er nation! o' the WTO+ Thi! ha! "ene'ited de,elo%ing &o*ntrie! "( a( o' 'oreign dire&t in,e!t#entA e*ro eB*itie! and %ort'olio in,e!t#ent+ In 6<<;-<9A the net 'oreign dire&t in,e!t#ent in India a! 5: "illion *! 7+ :2 M*lti-lateral r*le! and di!&i%line: It i! e3%e&ted that 'air trade &ondition! ill "e &reatedA d*e to r*le! and di!&i%line related to %ra&ti&e! li>e antid*#%ingA !*"!idie! and &o*nter,ailing #ea!*reA !a'eg*ard! and di!%*te !ettle#ent!+ =*&h &ondition! ill "ene'it India in it! atte#%t to glo"alize it! e&ono#(+ UNFA.OURA/0E IMPACT: 12 TRIP! Prote&tion o' intelle&t*al %ro%ert( right! ha! "een one o' the #a$or &on&ern! o' the WTO+ A! a #e#"er o' the WTOA India ha! to &o#%l( ith the TRIP! !tandard!+ Ho e,erA the agree#ent on TRIP! goe! again!t the Indian %atent a&tA 19C<A in the 'ollo ing a(!+ Phar#a&e*ti&al !e&tor: Under the Indian Patent a&tA 19C<A onl( %ro&e!! %atent! are granted to &he#i&al!A dr*g! and #edi&ine!+ Th*!A a &o#%an( &an legall( #an*'a&t*re on&e it had the %rod*&t %atent+ =o Indian %har#a&e*ti&al &o#%anie! &o*ld !ell good B*alit( %rod*&t! 8#edi&ine!2 at lo %ri&e!+ Ho e,er *nder TRIP! agree#entA %rod*&t %atent! ill al!o "e granted that ill rai!e the %ri&e! o' #edi&ine!A th*! >ee%ing tho!e o*t o' rea&h o' the %oor %eo%leA 'ort*natel(A #o!t o' dr*g! #an*'a&t*red in India are o'' D%atent! and !o ill "e le!! a''e&ted+ Agri&*lt*re

=in&e the agree#ent on TRIP! e3tend! to agri&*lt*re a! ellA it ill ha,e &on!idera"le i#%li&ation! on Indian agri&*lt*re+ The MN4A ith their h*ge 'inan&ial re!o*r&e!A #a( al!o ta>e o,er !eed %rod*&tion and ill e,ent*all( &ontrol 'ood %rod*&tion+ =in&e a large #a$orit( o' Indian %o%*lation de%end! on agri&*lt*re 'or their li,elihood!A the!e de,elo%#ent! ill ha,e !erio*! &on!eB*en&e!+ Mi&ro-organi!#!: Under TRIP! Agree#entA %atenting ha! "een e3tended to #i&ro-organi!#! a! ell+ Thi! ill largel( "ene'it MNC! and not de,elo%ing &o*ntrie! li>e India+ 62 TRIM=: The Agree#ent on TRIM! al!o 'a,or! de,elo%ed nation! a! there are no r*le! in the agree#ent to 'or#*late international r*le! 'or &ontrolling "*!ine!! %ra&ti&e! o' 'oreign in,e!tor!+ Al!oA &o#%l(ing ith the TRIM! agree#ent ill &ontradi&t o*r o"$e&ti,e o' !el' D reliant gro th "a!ed on lo&all( a,aila"le te&hnolog( and re!o*r&e!+ 52 4AT=: The Agree#ent on 4AT= ill al!o 'a,or the de,elo%ed nation! #ore+ Th*!A the ra%idl( gro ing !er,i&e !e&tor in India ill no ha,e to &o#%ete ith giant 'oreign 'ir#!+ Moreo,erA !in&e 'oreign 'ir#! are allo ed to re#it their %ro'it!A di,idend! and ro(altie! to their %arent &o#%an(A it ill &a*!e 'oreign e3&hange "*rden 'or India+ ?2 TRADE AND NON D TARIFF /arrier!: Red*&tion o' trade and non-tari'' "arrier! ha! ad,er!el( a''e&ted the e3%ort! o' ,ario*! de,elo%ing nation!+ .ario*! Indian %rod*&t! ha,e "een hit "(+ Non- tari'' "arrier!+ The!e in&l*de te3tile!A #arine %rod*&t!A 'lori&*lt*reA %har#a&e*ti&al!A "a!#ati ri&eA &ar%et!A leather good! et&+ :2 0DC e3%ort! : Man( #e#"er nation! ha,e agreed to %ro,ide d*t( D 'ree and B*ota D 'ree #ar>et a&&e!! to all %rod*&t! originating 'ro# lea!t de,elo%ed &o*ntrie!+ India ill ha,e to no "ear the ad,er!e e''e&t o' &o#%eting ith &hea% 0DC e3%ort! internationall(+ Moreo,erA 0DC e3%ort! ill al!o &o#e to the Indian #ar>et and th*! &o#%ete ith do#e!ti&all( %rod*&ed good!+ CONC0U=ION: Th*! the WTO i! a %o er'*l "od( that ill ena&t international la ! on ,ario*! #atter!+ It ill al!o glo"alize #an( &o*ntrie! and hel% the# to de,elo% their &o#%etiti,e ad,antage! and !ee> "ene'it! 'ro# ad,an&ed te&hnolog( o' other nation!+ Tho*gh &o*ntrie! li>e India ill 'a&e !erio*! %ro"le#! "( &o#%l(ing ith the WTO agree#ent!A it &an al!o "ene'it 'ro# it "( ta>ing ad,antage o' the &hanging international en,iron#ent+