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INDEX

Acknowledgement
Project 1:
1) Introduction:
2) India’s relation to WTO policies
3) NTM and its significance on Indian Economy
4) Importance of NTM in internation trade
5) The Subsidy Clauses of WTO (justification and rationale behind such clause)
6) Case Study (why was it done explain and looking a ntm consequences on subsidy)
7) Impact on International Bilateral Trade relation of India (china)
8) Conclusion
9) Bibliography

In summary, NTMs are drafted by national governments and international organizations to

achieve various policy objectives related to trade, public health, consumer safety,
environmental protection, industry competitiveness, and national security. These measures
are designed to regulate and facilitate trade while addressing regulatory concerns and
ensuring compliance with international standards and agreements.f

Economic growth is crucial for nations as it fosters prosperity, enhances living standards,
reduces poverty, and creates employment opportunities. It enables governments to invest in
infrastructure, education, healthcare, and social welfare programs, contributing to overall
societal well-being. Additionally, economic growth strengthens a country's competitiveness,
fosters innovation and technological advancement, and enhances its influence in the global
arena, enabling it to tackle challenges and pursue sustainable development goals.
n summary, work is necessary for individuals to earn income, contribute to productivity and
value creation, drive innovation and entrepreneurship, foster social cohesion, develop human
capital, and achieve personal fulfillment and well-being. Collectively, the contributions of
individuals through their work are essential for the functioning, growth, and prosperity of the
economy.

This provisions are , and proportionality is essential for maximizing the benefits of NTMs
while minimizing their potential adverse effects on economic outcomes, both domestically
and globally.
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INTRODUCTION P1

Topic 1: This project is to study that how the WTO norms impact India’s economic status in
the international trade recently.
Objective: Here we take a recent decision of India over breaching Subsidy limits set by
WTO and from this, one component of macroecomics of india we derive inferences and
significance of WTO Policies in International Trading.

The transition from GATT to the WTO was a structured process resulting from the Uruguay
Round negotiations, formalized by the Marrakesh Agreement in 1994, and implemented on
January 1, 1995. This transition expanded the scope of international trade governance and
strengthened the institutional framework for managing global trade.
the World Trade Organization (WTO) was created with the primary purpose of facilitating
and regulating international trade, thereby promoting a stable and predictable global economy
Since becoming a founding member of the WTO in 1995, India has played a significant role
in shaping the global trade landscape. . Joining the WTO was a natural progression in this
journey, aligning India with global trade norms and opening new avenues for economic
growth.

Reason to select this topic:

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INDIA’S Relation to WTO

As one of the largest and fastest-growing economies in the world, India has been an active
participant in the WTO. It has contributed to key negotiations and played a pivotal role in
advocating for the interests of developing countries. India's access at the WTO include:
Access to Global Markets
Trade Opportunities: WTO membership ensures acess to global trade in favourable
conditions. Member countries benefit from the Most-Favored-Nation (MFN) principle, which
guarantees non-discriminatory treatment in trade.
Example: Indian IT services have expanded globally, benefiting from reduced barriers to
entry in foreign markets facilitated by WTO agreements.
2. Influence on Global Trade Policies
Negotiation Platform: Membership gives countries a seat at the table in negotiating global
trade rules and policies. This is crucial for shaping an international trade environment that
aligns with national interests.
Example: India has been a vocal advocate for the interests of developing countries in areas
like agricultural subsidies and intellectual property rights.
3. Economic Growth and Development
Trade Liberalization: By committing to WTO agreements, countries often undertake
domestic reforms that enhance economic efficiency and competitiveness.
Investment Attraction: Stable and predictable trade policies can attract foreign direct
investment (FDI), leading to economic growth and job creation.
Example: Liberalization of FDI policies in India, encouraged by WTO membership, has
brought significant foreign investments in sectors such as retail and telecommunications.
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NTM and its significance on Indian Economy

Non-Tariff Measures (NTMs) are policies and regulations other than tariffs that countries
use to control the amount of trade across their borders. Non-Tariff Measures (NTMs)
influences on both national economies and the global economy. (While they serve important
objectives such as consumer protection, industry competitiveness, and regulatory
compliance, market access, and economic growth necessitates careful management and
international cooperation. With pictures LHS )
Rationale behind NMT : Balancing the need for regulatory objectives with the principles of
transparency, non-discrimination, and proportionality is essential for maximizing the benefits
of NTMs while minimizing their potential adverse effects on economic outcomes, both
domestically and globally.

The major consideration which have come to economic decisions in India.

Compliance Costs: Indian businesses incur costs to comply with NTMs such as quality
standards, technical regulations, and sanitary and phytosanitary measures. These compliance
costs may affect the competitiveness of Indian products in international markets, particularly
for small and medium-sized enterprises (SMEs) with limited resources.
Trade Facilitation: NTMs can facilitate or hinder trade flows, affecting India's imports and
exports. Harmonized NTMs that align with international standards can increase trade
processes, reduce transaction costs as they are predictable, and enhance market access for
Indian exporters. However, divergent or excessive NTMs imposed by trading partners can act
as barriers to Indian exports, limiting market opportunities and competitiveness to many
companies to prove qualifications for their products, (such as agriculture and electronics
labelling.
Domestic Regulation : Implementing NTMs effectively requires building institutional
capacity and regulatory enforcement mechanisms within India. This involves enhancing the
capabilities of regulatory bodies, such as the Food Safety and Standards Authority of India
(FSSAI), the Bureau of Indian Standards (BIS), and other relevant agencies, to ensure
compliance with international standards and regulations.
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IMPORTANCE OF NTM IN INTERNATIONAL ECONOMY

The Subsidy Clauses of WTO

The Agreement on Subsidies and Countervailing Measures (SCM Agreement) within the
framework of the World Trade Organization (WTO) contains specific articles that govern
subsidies in international trade. Here are the key articles related to subsidies.
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VIVA PREP

The project focuses on summarizing the key articles of the Agreement on Subsidies and
Countervailing Measures (SCM Agreement) within the World Trade Organization (WTO).
The SCM Agreement comprises eight articles, each addressing different aspects of subsidies
in international trade. Article 1 provides definitions for key terms, while Article 2 identifies
prohibited subsidies. Article 3 outlines criteria for actionable subsidies, and Article 4
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addresses specificity. Article 5 discusses serious prejudice, and Article 6 mandates

notification and surveillance. Article 7 covers consultations and dispute settlement, while
Article 8 provides flexibilities for developing countries. These articles collectively establish
rules and regulations governing subsidies to promote fair competition and transparency in
global trade.