Question

What are the new issues and policy challenges in the area of international trade faced by the developing countries including India? Discuss how India has responded to these issues. ANSWER IN MORE THAN 1000 WORDS.

Answer 1

India is one of the most important players in the economic landscapes.Its trade policies,government reforms has contributed to one of the most sought after destination for foreign investments.Also the technological and infrastructural development has led to more growth and more to trade in the years to come.The external sector is contributing more to the economic development of the country and moreover by implementing the FTP 2015-2020, by 2020 the shares of india in world trade is expected to double from the present level to three percent.What India needs today is not a paradigm shift.A new narrative nor a strategy but hard work focus and commitment.The developing countries are facing the problem of mounting growth of its developmental imports which includes the machineris.They also face the problem of burgeoning imports resulting in growing deficit.They also face the problems of depletion of foreign exchange reserves.Such depletion results in shorter import cover for the country.They also face international liquidity problem,these countries are experiencing chronic deficiency of capital and technology resulting heavy dependence on the developed countries for their scarce resources.