Fig 1: Status holders Classification
Service Exports from India
- All service providers exporting services from India shall
get transferable duty credit scrips with value 3-5% of the
net foreign exchange earned.
Types of Trade Agreements
- Preferential trade agreements:
liberate tariff on limited products. Oldest one was in 1976
with Asian - Pacific countries [Bangladesh, India, China,
Sri lanka, South Korea]
- Free trade agreements: eliminate
tariff on items of trading partners. [ Latest was in 2015
with ASEAN countries]
- Comprehensive Economic cooperation agreement /
Comprehensive economic partnership agreement / Broad based
trade and investment agreement: covers goods, services, IPR,
mutual recognition etc.
Doha Round of WTO:
The deadlock to ministerial talks of WTO has been existing
since 2001 but finally in Bali round [Ninth ministerial
round] a break through was achieved.
Decisions that impact India were:
- Public stock holding to food security
- Agreement on trade facilitation
The Public stockholding norms which were decided would have
put India's Food security mission in threat. However due to
negotiations it was decided that till 2017 no country can
challenge the food security stock holding limits of developing
countries. Later due to India's insistence this moratorium
period was extended till a suitable solution could be found.
This enabled India to agree on the Trade Facilitation
Dept of Commerce defends Indian interests at the dispute
settlement of WTO.
- USA had challenged the Indian government decision to ban
imports of poultry products from countries having an
outbreak of Avian flu. However India lost this case as it
couldn't prove that the ban was based on scientific
- US had imposed high counterveiling duty on Indian carbon
steel products. This was challenged and India won this case.
- US had challenged the domestic sourcing requirement in
Solar products made in India for the National solar mission.
The result is expected on this.
Special Economic Zones
Asia's first SEZ was in Kandla in 1965.Currently 202 SEZ's
are exporting with 114 are IT SEZ's and remaining are multi
product or sector specific. The total units in them are 4100.
EPZ that existed before the SEZ Act of 2005 were converted to
Aim of SEZ:
- Promote domestic and foreign investment
- Develop quality infrastructure
- Increase job creation
- Increase exports of goods and services.
- Generate additional economic activity.
Shipping and Port related improvements
The government is considering increasing the share of Direct Port Delivery of containers to the pre approved clients instead of waiting at the Ports for customs clearance. The cost of keeping the containers at the ports for the day is Rs. 10000 this includes logistics, inventory and transaction cost. Thus DPD will facilitate cost savings and promote ease of doing business.
Other improvements were converting the ports that operated based on paper records to electronic data interchange.
All ports have been asked to integrate the Port Community System and Terminal Operators Filling System with ICEGATE - E-Commerce Portal of Central Board of Excise and Customs.