The SDR (Special Drawing Rights) is an international reserve asset created by the IMF as a supplementary international reserve asset in 1969. The SDR serves as the unit of account of the IMF and other international organizations. The SDR is not a currency, but its value is based on a basket of five currencies—the US…
The World Trade Organization (WTO) is an intergovernmental organization established on January 1, 1995, replacing the earlier General Agreement on Tariffs and Trade (GATT). It is an international organisation headquartered in Geneva, Switzerland dealing with the international rules of trade between nations. WTO is run by its member governments of over 160 countries representing 98…
India is on its way to increase its exports by around three times to reach the target of $2 trillion by 2030 despite the imposition of restrictions on exports of some items to rein in inflation on the domestic front and adverse geopolitical situation, Commerce and Industry Minister Piyush Goyal said on January 6, 2024.…
India faces substantial challenges in the area of trade policy—the global economic slowdown, increasing protectionism, the delayed mega-trade deals that could in time be revived, and maybe more importantly, its domestic preoccupations. Competitions: The Indian exporters are vying for export orders from the same or similar geographies without looking at prospective importers at other places…
There were many reasons for FDI inflows to India have remained low till lately compared to other emerging markets. Some of the major impediments for India have been infrastructure, confusing tax and tariff policies, restrictive labour laws, absence of Center–State coordination, a dormant Special Economic Zone policy and a lack of institutional reform, well-entrenched corruption,…
India witnessed significantly lower or negative FII flows in Calendar Years 2021 and 2022. FII flows were negative US$ 16.5 billion in Calendar year 2022. FIIs have sold large amounts of Indian shares so far despite India’s strong corporate earnings and robust macroeconomic numbers. The major concern for FII’s could be valuations as the prices…
There are three main dimensions of development: economic, social, and environmental. The economic dimension deals with the efficiency of economic and technological activities, fostering investment and productivity, economic growth, and economic output potential. The economic dimension informs us on how to handle limited resources well and to use them in a way that will benefit…
The terms ‘economic growth’ and ‘economic development’ sound similar. However, the two concepts are different. While economic growth is a quantitative concept, economic development is both a qualitative and qualitative concept. However, Economic development cannot be achieved without economic growth. Let us study here how they are different from each other. What is Economic Growth?…
A foreign trade policy provides a set of guidelines that help a country achieve its domestic production and export goals. The Government of India and the Ministry of Commerce and Industry release Foreign Trade Policies (FTP) every five years; the previous FTP (2015-20) came into effect in April 2015. FTP 2015-20 provides a framework for…
The Foreign Trade Policy (FTP) is a policy framework that defines the government’s strategy for promoting trade and investments in the country. The FTP of India underwent several structural changes during the 1990s, which were crucial for the economic development of the country. The major changes to trade policy in the post-1991 period are a…