SANEI: Completed Studies: Abstract

The Impact of Changing Global Trade Policies on India

The world has witnessed major moves towards multilateral trade liberalisation during the last decade. More of it is expected to come once the built-in-agenda of the Uruguay Round gets fully implemented. It is discouraging to have witnessed the Seattle fiasco at a point when the developing countries had started participating more actively in multilateral trade negotiations than ever before. In order to assess the likely impact of these changes, it is important to analyse the expected gains/losses for both the developing as well as the developed countries.

The objective of this study is to provide framework for analysing policy changes that incorporate the interactions between India, its major trading partners and various other countries of the world. The results establish the fact that participating countries gain from multilateral trade liberalisation. The gains come in the form of increased welfare and higher real returns to the factors of production. The factors of production get allocated more efficiently than before in each of these countries. The beneficial effects of India's unilateral liberalisation have also been established.

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