Describe the role which India has played as an important member of World Trade Organisation (WTO). Critically appraise the Industrial Licensing policy initiated by the government during the planning period of India.

Question

Accepted Answer

**Role of India in WTO:**

1. India has been at the forefront of framing fair global rules, regulations and advocating interests of developing world
2. India has kept commitments made to WTO
3. India has taken reasonable steps to liberalise trade by removing quantitative restrictions and reducing tariff rates
4. India advocates for fair trade rules that consider interests of developing countries
5. India seeks special safeguard mechanism to protect farmers from sudden import surges

**Industrial Licensing Policy:**

- Before 1991: Industrial licensing was mandatory for most industries
- Post 1991: Abolished industrial licensing for all except 5 industries
- The 5 industries requiring licensing: Distillation/brewing, Cigars/cigarettes, Electronic aerospace/defence, Industrial explosives, Hazardous chemicals
- Purpose: To remove entry barriers and encourage private sector participation
- Impact: Increased industrial growth, competition, and efficiency