A presentation (Office 13) describing the shift in India's policy towards foreign collaborations since liberalization. Includes illustrations to support the same. Concept of counter trade arrangements are also mentioned.

1. Indian Policy on Foreign
Trade Collaborations
&
Counter Trade
Arrangements

2.  Collaboration is working with each other to do a
task. It is a recursive process where two or more
people or organizations work together to realize
shared goals
Collaboration

3.  Arrangement between two or more business entities
so as to gain from the added advantage of shared
manpower, technology and finance.
Trade Collaboration

4.  “Foreign collaboration is an alliance incorporated to
carry on the agreed task collectively with the
participation (role) of resident and non-resident
entities.”
Foreign Trade Collaboration

8. Pre
Liberalization
Era
Post
Liberalization
Era
India & Foreign Collaborations

9.  Highly Restrictive Trade Policy
 Protecting Market from foreign competition
 Import Substitution Industrialisation
 Export Pessimism backed by Swadeshi Principle
 Comparative Advantage is not-at-all considered
 Deep inward oriented approach
 Our bilateral trade policy was heavily skewed
toward the former communist countries
 Kept out of emerging trade blocks
Pre Liberalization Era

10.  India was a founding member of the General
Agreement on Tariffs and Trade (GATT) in 1947
 It was always influenced by its policy of non-
alignment
 Promoted the idea of a Special and Differential
Treatment (SDT), allowing developing countries to
exempt themselves from the central commitments
made by developed countries.
INDIA & GAAT

11.  Liberalized foreign Policy
 Capital and Technology flow
 Export oriented policy
 Collaborations, both in number and value took pace
in the growth rate
 Free trade agreements emerged
Post Liberalization Era

12.  The unrestricted purchase and sale of goods and
services between countries without the imposition
of constraints such as tariffs, duties and quotas.
 Free trade is a win-win proposition because it
enables nations to focus on their core competitive
advantage(s), thereby maximizing economic output
and fostering income growth for their citizens.
Free Trade

13.  India Afghanistan Free Trade Agreement
 India Bangladesh Free Trade Agreement
 India Bhutan Free Trade Agreement
 India Ceylon Free Trade Agreement
 India Chile Free Trade Agreement
 Agreement on South Asia Free Trade Area (SAFTA)
 India Maldives Free Trade Agreement
India’s Trade Agreements

16.  Asia Pacific Economic Cooperation (APEC)
 Association of South-East Asian Nations (ASEAN)
 Gulf Cooperative Countries (GCC) August 2004
 With US & EU
 Southern African Customs Union (SACU)
India’s relation with Trade Associations

17. fall of the Soviet Union
Asian financial crisis of 1997-98
India’s Balance of Payment crisis in 1990
Driving forces of the shift

20.  Countertrade means exchanging goods or services
which are paid for, in whole or part, with other
goods or services, rather than with money.
 A monetary valuation can however be used in
counter trade for accounting purposes. In dealings
between sovereign states, the term bilateral trade is
used. OR "Any transaction involving exchange of
goods or service for something of equal value."
Counter Trade Arrangements

21.  Barter
 Switch Trading
 Counter Purchase
 Buy Back
 Offset
 Compensation Trade
Types of counter trade

22.  Wheat
 Tobacco
 Tea
 Coffee
 Jute
 Engineering
 Electronic goods
 Minerals including iron ore
What we offer?

23.  Crude oil
 Petroleum products
 Chemicals
 Steel and
 Machinery
What we Demand?

24.  BHEL-MMTC countertrade arrangement with
Malaysia
 Palm Oil – Hydro Power Project
 4510 Cr worth deal
Example

25. Thank You..