India's Foreign collaborations & counter trade arrangements
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Transcript of India's Foreign collaborations & counter trade arrangements
Indian Policy on Foreign Trade Collaborations
& Counter Trade Arrangements
Collaboration is working with each other to do a task. It is a recursive process where two or more people or organizations work together to realize shared goals
Collaboration
Arrangement between two or more business entities so as to gain from the added advantage of shared manpower, technology and finance.
Trade Collaboration
“Foreign collaboration is an alliance incorporated to carry on the agreed task collectively with the participation (role) of resident and non-resident entities.”
Foreign Trade Collaboration
Pre Liberalization
Era
Post Liberalization
Era
India & Foreign Collaborations
Highly Restrictive Trade PolicyProtecting Market from foreign competitionImport Substitution IndustrialisationExport Pessimism backed by Swadeshi PrincipleComparative Advantage is not-at-all consideredDeep inward oriented approachOur bilateral trade policy was heavily skewed
toward the former communist countriesKept out of emerging trade blocks
Pre Liberalization Era
India was a founding member of the General Agreement on Tariffs and Trade (GATT) in 1947
It was always influenced by its policy of non-alignment
Promoted the idea of a Special and Differential Treatment (SDT), allowing developing countries to exempt themselves from the central commitments made by developed countries.
INDIA & GAAT
Liberalized foreign PolicyCapital and Technology flowExport oriented policyCollaborations, both in number and value
took pace in the growth rateFree trade agreements emerged
Post Liberalization Era
The unrestricted purchase and sale of goods and services between countries without the imposition of constraints such as tariffs, duties and quotas.
Free trade is a win-win proposition because it enables nations to focus on their core competitive advantage(s), thereby maximizing economic output and fostering income growth for their citizens.
Free Trade
India Afghanistan Free Trade AgreementIndia Bangladesh Free Trade AgreementIndia Bhutan Free Trade AgreementIndia Ceylon Free Trade AgreementIndia Chile Free Trade AgreementAgreement on South Asia Free Trade Area
(SAFTA)India Maldives Free Trade Agreement
India’s Trade Agreements
Asia Pacific Economic Cooperation (APEC)Association of South-East Asian Nations
(ASEAN)Gulf Cooperative Countries (GCC) August
2004With US & EUSouthern African Customs Union (SACU)
India’s relation with Trade Associations
fall of the Soviet Union
Asian financial crisis of 1997-98
India’s Balance of Payment crisis in 1990
Driving forces of the shift
Countertrade means exchanging goods or services which are paid for, in whole or part, with other goods or services, rather than with money.
A monetary valuation can however be used in counter trade for accounting purposes. In dealings between sovereign states, the term bilateral trade is used. OR "Any transaction involving exchange of goods or service for something of equal value."
Counter Trade Arrangements
BarterSwitch TradingCounter PurchaseBuy BackOffsetCompensation Trade
Types of counter trade
WheatTobaccoTeaCoffeeJuteEngineeringElectronic goodsMinerals including iron ore
What we offer?
Crude oilPetroleum productsChemicals Steel and Machinery
What we Demand?
BHEL-MMTC countertrade arrangement with Malaysia
Palm Oil – Hydro Power Project4510 Cr worth deal
Example
Thank You..