WTO Market Access Negotiations and Indian Small Scale Industry

Abstract: A large section of Indian small-scale industrial sector had been protected from the plundering rivalry of the large-scale industries. The ongoing trade liberalization and globalization talks can put these industries in problem. The main aim of this paper is to assess the implications of present round of World Trade Organisation (WTO) negotiations on Indian products, which are for exclusive manufacture by small-scale sector. As a first step the analyses of the Uruguay round Commitments, Doha declaration and member countries’ proposals, with special emphasis on the developing countries taking India as the case study, has been conducted. Further the structure and levels of bindings, base rates from where negotiations would start and tariff incidence for the products reserved for the exclusive manufacture of Indian small-scale industries has been studied. Finally the likely post negotiations scenarios for Indian small-scale industries have been presented. The study finds some interesting results. At present around 66 per cent items of Indian small-scale industry are bound, which is higher than all India level. India cannot a priori exclude any item from negotiation in the present round. Our preliminary results based on alternate scenarios proves that the WTO-NGMA formula would cause the 53 per cent reduction in the current bindings of the products reserved for the exclusive production of small-scale industry in India.