Tpp intellectual capital ac convertibility

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TRANS PACIFIC PARTNERSHIP

By: Harveer [email protected]

TPP

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HARVEERSIR for GSSCORE

The pact aims to deepen economic ties between these nations, slashing tariffs and fostering trade to boost growth.

Member countries are also hoping to foster a closer relationship on economic policies and regulation.

The agreement could create a new single market something like that of the EU.

some 18,000 tariffs would be affected.

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Collective population of about 800 million - almost double that of the European Union's single market.

The 12-nation would-be bloc is already responsible for 40% of world trade.

If this has not happened before 4 February 2018, it will enter into force after ratification by at least 6 states, which hold together a GDP of more than 85% if the GDP of all signatories. 4


Tariffs on US manufactured goods and almost all US farm products will go almost immediately once the deal is ratified.

Countries would also to co-operate on wider issues such as employment practices, intellectual property and competition policies.

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ISSUESInvestor-state dispute settlement (ISDS)

Food and Environment Safety

Health/MedicinesJob LossNo exit clause. 6


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WHAT INDIA SHOULD DO? Should go ahead with India-EU FTA

Concluding RCEPBlocking effort of these mega blocks to bypassTraditional KnowledgeWTO rules on Labor, environment,

public procurement etc9


THANK YOU.

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SS TARAPORE

By: Harveer [email protected]

SS Tarapore, served as deputy governor at RBI. He worked under C Rangarajan, the then RBI Chairperson.

The mutual understanding and respect led them to reform India’s financial sector and put it on a sound footing. 12


After retiring, he chaired two committees on full capital account convertibility and one on how to streamline the RBI.

Between 1997 and 2016, he wrote and lectured on a scale that is hard to emulate.

He remained steadfast in his belief that RBI knew what it was doing and ought to be left alone (Autonomy) to get on with its job, which was maintaining the monetary stability of India.

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CAPITAL ACCOUNT CONVERTIBILITY

Freedom to convert local financial assets into foreign ones at market-determined exchange rates.

Leads to free exchange of currency at lower rates and an unrestricted mobility of capital.

India currently has full convertibility of the rupee in current accounts such as for exports and imports.

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The Capital can be of any entity/type: Some of these areForeign Direct Investment (FDI)ADRs and GDRs by Indian CompaniesECBsG-SECs Joint Ventures/ SubsidiariesDisinvestmentForeign Venture Capital Investment (FVCI)FIIsCommodity HedgingOverseas Investment by Indian Mutual FundResident’s borrowings in Foreign Currency


However, India’s capital account convertibility is not full.

There are ceilings on government and corporate debt, external commercial borrowings and equity.


DEBATE Inflow of foreign investment increases, and

transactions are much easier and occur at a faster pace.

It also initiates risk spreading through diversification of portfolios.

It could destabilise an economy due to massive outflow of the country.

It could cause currency appreciation/depreciation and worsen balance of trade.


Real liberalization was initiated in 1991 aftermath balance of payment crises.

Rangarajan Committee report outlines the reforms in the external sector.

Recommendations dismantling of trade restrictions transition to market determined exchange rates gradual opening of capital account


1997 S.S.TARAPORE COMMITTEE-I Provided the initial roadmap for the

liberalisation of capital account transactions. A set of preconditions to be achieved prior to

liberalisation of capital account. fiscal deficit to GDP ratio has to come down from a

budgeted 4.5 per cent in 1997-98 to 3.5% in 1999-2000.

Inflation (3-5%) Bring down NPAs to 5% and CRR 3% Debt Service Ration 20% ( Then it was 25%)

It was the time when banking sector reforms were also instigated on the proposition of Narasimhan committee.


2000: FEMA over FERA- All the current account transactions are permitted under FEMA and no prior permission of RBI is required for any such transactions, while there remain restrictions on capital account.

Under FEMA some capital account transactions are completely permitted, some are totally prohibited while some are allowed within a fixed ceiling.

Sectoral rules have also been shaped and enforced with FEMA rules.


2006: TARAPORE COMMITTEE II It also did not recommended unlimited

openings of Capital account but preferred a phased liberalisation of controls on outflows

and inflows.


The committee suggested 3 phases of adopting the full convertibility of rupee in capital account. First Phase in 2006-7 Second phase in 2007-09 Third Phase by 2011.


Allow NRIs to invest in Capital Market

Give Tax benefit to NRI deposit

Prohibit FIIs from investing in P-Notes

Raise ceiling on ECB for automatic route.


SHOULD INDIA GO FOR FULL CAPITAL ACCOUNT CONVERTIBILITY ?

Looking at the fragile economic structure and underlying problems with the free capital flow in world economy, India must be cautious.


THANK YOU.

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INTELLECTUAL PROPERTY INDEX BY GLOBAL INTELLECTUAL PROPERTY CENTRE (GIPC)

Released by U.S. Chamber of Commerce’s Global Intellectual Property Center (GIPC)

There are 6 Categories and 30 Criteria. Categories include patent, copyright and

trademark protections, enforcement, and engagement in international treaties

India remains at the bottom of the Index for the fourth year in a row.

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The 38 economies benchmarked in the 2016 Index accounts for nearly 85 per cent of the global GDP.

In BRICS Russia ranked 20th, China (22nd), South Africa (26th) and Brazil (29th).

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WHAT INDIA’S WEAKNESSES ARE? The use of compulsory licensing (CL) for

commercial and non-emergency situations, and the expanded use of CL being considered by the Indian government.

Poor application and enforcement of civil remedies and criminal penalties.

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DO YOU AGREE THAT THE IP PROTECTION SYSTEM IN INDIA IS LAX. ELABORATE.

Is it because India relatively lacks culture of innovation.

Is it because of huge affordability- aspiration gap.

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SEPARATE ISSUE: WHY INDIA LAGS IN INNOVATION?

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THANK YOU

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Tpp intellectual capital ac convertibility

Economy & Finance

Transcript of Tpp intellectual capital ac convertibility