India in the WTO

With Indian national elections due from 16 April, most major political parties have released their election manifestos. I looked at some of these to see if they mentioned the WTO.

The CPI (M) 2009 manifesto does mention the WTO and says this:

WTO and Trade Issues
The CPI (M) stands for:
Protecting Indian interests and that of the developing countries in the ongoing Doha Round of WTO; no further tariff cuts in agriculture and industrial goods.
Restore measures to protect small and marginal peasants, including quantitative restrictions
Keep sectors like health, education, water resources, banking and financial services out of GATS; Press for review of the TRIPS agreement.
Review existing Free Trade Agreements (FTAs); Make public India’s negotiating positions in the FTA negotiations with EU and EFTA.

The Indian National Congress does not mention the WTO in its 2009 election manifesto. The manifesto does talk about its approach to governance and professes a “middle way”:

The Middle Path – the Congress’s way

Balance—or the middle path–has always been the hall-mark of the policies of the Indian National Congress.

As the world experiences a severe recession, it is this balance that is standing India in good stead.

It is a balance between the public sector and the private sector, with an important role assigned to cooperatives and self-help groups.

It is a balance between building a modern economy and imparting a  new thrust to traditional industries.

It is a balance between promoting employment in the organized sector and protecting livelihoods in the unorganized sector.

It is a balance between addressing the needs of urban India and improving the quality of life and standard of living in our villages and towns.

It is a balance between taking advantage of globalization and ensuring that these benefits flow to local communities.

It is a balance between regulation by the government and unleashing the creative spirits of our entrepreneurs and professionals.

It is only the Indian National Congress that cherishes and practices this balance in all spheres of our national life including in the conduct of economic and foreign policy.

This balance is needed now more than ever.

Surprisingly, the BJP is still to release its manifesto.

It would be interesting to look at political party manifestos for all Indian general elections since 1990 and trace how the Indian political debate on the WTO has evolved.

In its 1998 election manifesto, the Congress did mention the WTO. An extract:

The Congress will continue to fight for India’s interests in world forums like the WTO. At the same time, it will honour all international commitments in a responsible manner.

In its 1999 manifesto, the Congress talked extensively about exports, trade and the WTO. This manifesto from 1999 is an interesting document and in its detailing and scope goes way beyond what election manifestos in India usually amount to. Some extracts:

A stable, long-term policy on exports of agricultural products and commodities will be adopted. Apart from increasing incomes for farmers this will also generate new employment.

The Congress will impart a whole new look to the Khadi and Village Industries Commission (KVIC) that has significant potential for generating employment in rural and semi-urban areas. KVIC will be transformed into a modern, research-based, technology-oriented, customer- focussed organisation. New programmes for the development and modernisation of the coir industry, handlooms, powerlooms, handicrafts, food processing, sericulture, wool development, etc. – all of which have a high employment potential – will be launched.

A greater thrust on labour-intensive exports of textiles, handicrafts, gems and jewellery, leather, software, light engineering and consumer goods manufacturing will also significantly boost employment. These industries have considerable export potential, which will be taped.

…

Tourism is yet another major employment generator, apart from being a low-cost way of earning foreign exchange. Considering what we have to offer the world, we must aim at no less than doubling international tourist traffic into India in the next four to five years and facilitating an exponential increase in domestic tourist traffic.

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The services sector, as a whole is another major employment generator. So is the self-employed sector. Both will be expanded and encouraged with the easy availability of finance and reforms of laws and regulations that stand in the way of their growth.

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The terms of trade will always be kept in favour of agriculture. While remunerative procurement and support prices constitute a key element of this strategy, it is essential to sustain favourable terms of trade through productivity gains and marketing support.

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India is one giant common market and must function as one. Unfortunately, there are still many fiscal and other barriers, which are preventing the emergence of a truly national common market. These barriers will be eliminated in consultation with state governments. The objective will be to move towards a system of value-added taxation (VAT) and uniform rules for the treatment of interstate trade.

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Considering the crucial importance of the textiles industry in India, particularly from the point of view of employment and exports, the Congress will come out with a comprehensive, forward-looking textile policy. This policy will, among other things, deal with issues relating to improving the productivity of cotton cultivation, … substantially increasing the global market share of Indian textiles, etc.

…

International Trade and Investment

Immediate steps will be taken to revive the export momentum in the economy that was so much in evidence in the latter half of the eighties and the mid-1990s. India’s exports must grow by at least 15-20% per year on a sustained basis. All policy and procedural barriers to faster exports must be dismantled. Exports create employment and greatly assist in the diffusion of prosperity but high transaction costs and restrictive policies in areas like the small-scale sector are preventing India from increasing her exports and generating new employment.

Government and industry will work closely together to help prepare a plan of action to cope with the new and emerging challenges in the international trading system. A special effort will be mounted in the areas of agriculture, textiles and pharmaceuticals. The Information Technology sector, specifically software, which has emerged as India’s newest motor of growth for exports, will be given every encouragement.

India will continue to meet all her international treaty and multilateral agreement obligations in a responsible and time-bound manner and will continue to work to use the WTO to gain additional market access for products and services of interest to India. It will proactively participate in all existing and proposed global discussions with a view to influencing the agenda and enhancing its bargaining strength. It will work with other countries to push for faster dismantling of controls on trade in textiles and agriculture. The objective of tariff policy will be to reach levels prevalent in south-east and East Asia in the next two to three years and global levels shortly thereafter.

India will continue to proactively encourage investment from foreign companies and overseas Indians. There is an entirely new generation of entrepreneurial overseas Indians, which is making a mark in countries like the United States. A special effort will be mounted to attract this group of investors and build enduring networks with them. In the last few years, India has received a direct foreign investment inflow of around $ 3 billion per year. This is a very low figure considering India’s requirement for investment and considering the global availability of capital. Our target should be to reach at least 8-10 billion dollars of foreign direct investment inflows early in the next decade.