Trade battle between the US -world’s largest economy and India world’s fastest growing economy is on an uptrend and WTO battles have increased in recent years. the latest incident is the US’s follow up compensation demand out of its poultry trade dispute victory at WTO’s DSB(Dispute Settlement Body). In the latest development, the US has requested WTO to initiate compensation from India for the poultry trade restrictions against US imports. Earlier, the US had won a case against India’s import restrictions against US imports including poultry, egg and live pigs at WTO’s DSB. The DSB in June 2015, ruled that Indian ban on import of poultry meat,
India has demanded special and differential treatment for the country’s small fishermen at World Trade Organization. According to a report in the Business line (July 4, 2016), New Delhi has insisted the concession at a recent Geneva meeting. The meeting was organized to design rules for a global agreement to check overfishing. India has also demanded capacity-building assistance to developing countries for its implementation. Special and differential treatment under WTO gives special concessions to developing countries for giving subsidies and retaining permissible level of restrictions. Backwardness and subsistence agricultural practices are the main ground for providing s
The referendum on Britain’s continuation in the EU has produced a close call with early lead indicating Brexit despite forecasts for a marginal win for ‘remain’. Pound has plunged against other major currencies with the news of initial lead for Brexit. Overall, forecasts are that remain vote will consolidate towards the end. Economist have indicated turbulence in financial markets if ‘leave’ wins. Both for Britain and for UK, the leave verdict will cause negative economic outcomes. Already, central bankers and financial sector regulators have deployed stabilizing mechanism so that market remain cushioned in the context of a Brexit vote. In India, th
The Pound Sterling tumbled like a third world currency, financial markets shattered and a government fell on a vote that will restructure economic relations in Europe. Scotland and Northern Ireland interestingly voted to remain in the EU. The fact that Britain dragged the two out of the EU may give more political instability to the Brexit decision. Brexit is more than sentimental in terms of its outcome. Britain has to modify its economic management seriously in this old age. Some of the aging economic problems may be settled through exit, but not most of them. Its ability to raise productivity as seen in the industrial revolution era is difficult to bring back; especially at a ti
Softbank’s promised CEO and Indian origin executive Nikesh Arora resigned from the Japanese tech company. His resignation came after the Japanese business world's difficulty in adapting a non-Japanese head and later disagreement with the founder Masayoshi Son. Arora was one of the highly paid executives in the world but was in serious trouble due to lack of support from shareholders of the company. The Japanese shareholders were generally unhappy about the big salary package to an executive from outside their cultural territory. The lack of synergy transformed into accusations against the India born executive for conflict of interest, financial misdeal high paid salary et
US Trade Representatives’ annual Special 301 report has kept India on the priority watch list. But a visible shift in the US stance is that it goes less vocal on pharma patent issues and criticizes the Make in India programme. The Report is a US perspective on other countries’ IPR policies given their potential impact on US interests. Altogether eleven countries are included under the priority watch list including India, China and Russia. Pakistan is upgraded from the Priority Watch List to the Watch List. The report this time seems to be more a political interpretation of IPR issues, as it intervenes with domestic policies of other countries and interpret them as hin
Saudi Arabia has unveiled a revolutionary plan to make the oil kingdom free from oil dependence in just four years. The most orthodox country in the Middle East has brought out the new plan called Saudi Vision 2030 which needs tremendous adjustment from the present pattern. The plan is the work of Mohammed bin Salman, 30-year-old son of King Salman. The deputy crown prince who has taken control of economic and oil strategy of the Kingdom. The crown prince has launched the plan for transition by accepting that Saudi Arabia is ‘addicted to oil.’ Revealing the urgency and perhaps making the targets unrealistic, he declared that the wish is to live without oil by 202
US President Barack Obama and German Chancellor Angela Merkel have called the partnering countries in Europe to fasten negotiations on world’s largest free trade bloc -the Transatlantic Trade and Investment Partnership (TTIP). The proposal for speedy discussion came at the end of the US President’s visit to Germany which is the high power economy of the EU. Obama’s call and Merkel’s positive response will give a new life into the TTIP, which has been affected by political opposition both in the US and Europe. Pressure groups in the EU accuse that the trade deal will steal away EU jobs to America. Amidst doubts and uncertainties, the trade discussions
China’s central bank -the People’s Bank of China (PBC) has indicated that it is considering introduction of tax on short term capital flows to check volatility in its currency. The Yuan is under pressure as capital outflows intensified amidst weak macroeconomic performance. Tobin tax is a form of capital transaction tax aimed to stop speculative short term capital or otherwise called hot money. It is this short term capital that usually goes to the banking sector, capital market and other financial assets that is quickly withdrawn during a crisis. The tax was previously advocated by economist James Tobin. In its usual from, Tobin tax is imposed on both inflow and outf
Indirectly launching criticism on countries especially China for adopting currency war strategies, Prime Minister Modi highlighted that India has followed a neighbor friendly trade policy. The Prime Minister was speaking at Advancing Asia Conference jointly conducted with IMF. In his speech the PM stressed two points about India’s growth story. First, the country has achieved growth in the context of a vibrant democracy. India has dispelled the myth that growth and democracy can’t go together. “India’s growth rate of over seven per cent is being achieved in a country that is also a vibrant democracy.” Secondly, the PM indicated that India&rsquo
Dictionary on Indian Economy
- Logic of withdrawing Rs 1000 and Rs 500 notes
- Raghuram Rajan: The Gladiator returns to Chicago
- Why the GST reform is transformational?
- Good intention but poor thinking - what troubles demonetization?
- India Black Money Report: CBI underestimates black money at Rs 25 lakh crore
- High interest rate rather than inflation is the macroeconomic problem for India right now
- Japan’s first trade deficit in 30 years is part of the Global Shift
- Why we need an emergency monetization plan as well?
- Arvind Subramanian rocks with 'Chakravyuha' in Economic Survey
- NREGS: give respect to the tax payer’s money