English, Article, Journal or magazine article edition: The Indian trade regime Aksoy, M. Ataman

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/166097
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • The Indian trade regime
Author
  • Aksoy, M. Ataman
Physical Description
  • preprint
Notes
  • Despite attempts to liberalize India's import trade regime, the structure of import licensing is still restrictive and complex and for most products, trade restrictions are probably redundant as protection. Reforming export policies alone - without reforming India's import and tax systems - will produce only marginal improvements. Problems in the export administration can be resolved only by making changes in four areas. (1) The import licensing system must be rationalizedto eliminate import restrictions on inputs and components. The import regime inflicts heavy administrative costs on the Indian economy. Imports of raw materials and other inputs essential for production are delayed, leaving downstream producers idle when domestic supplies are interrupted (which happens often). The export regime is still not rationalized for smaller producers, indirect exporters, and firms that rely on domestic suppliers. (2) Tariffs and excise taxes must be consolidated around two to three slabs and the quantitative restrictions in intermediate and capital goods must be eliminated so firms can be compensated accurately for their tax burdens. The system that exists is far two complex. (3) The absolute level of tariffs on inputs must be reduced to administer the duty-free import schemes efficiently. High tariffs encourage leakage of duty-free imports into the domestic market and abuse of high drawback rates (incentives). (4) Tariffs and taxes on capital goods must be reduced to reduce the costs of investment. Tariffs in India - especially on key intermediate products (metals and chemicals) and capital goods - are high and getting higher fast. The high cost of basic inputs increases the cost of production, leads to uneconomic import-substitution which causes pressure for more protection, and requires an elaborate, cumbersome system to compensate exporters. High tariffs and excise taxes on capital goods damage Indian competitiveness, adding 10 to 15 percent to the cost of production and severely handicapping exporters. The excessive tariffs do not fulfill their primary purpose of providing protection and incentives; they are aimed at mainly generating revenues. Public revenues should be generated through more efficient instruments especially taxes.
  • Environmental Economics&​Policies,Trade Policy,TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT,Consumption,Water Resources Assessment
  • RePEc:wbk:wbrwps:989
Language
  • English
Contributed by
OAIster

Get this edition

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment