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Doha Round: what India’s new government needs to do August 19, 2009

Posted by southasiamasala in : India, Kalirajan, Kaliappa , comments closed

Kaliappa Kalirajan

Though India has demonstrated that there exists broad political support for its economic reform program, agricultural trade policy reforms need to be accelerated. The new government enjoys a better standing than before in terms of stability.  Its challenge now is to mitigate the inefficiency that exists in Indian agriculture and close the gap between its potential and actual performances by implementing a proper policy framework.

As a net exporter in agriculture products, India has more to gain than to lose from trade reforms. It has sufficiently high bound rates on most of the products and therefore flexibility can be ensured against unfair competition. It does not have to worry about its agricultural subsidies as they are already below the required ceiling. And it also does not have any serious domestic opposition to reckon with. All of these factors place India in an advantageous position. (more…)