Professional Documents
Culture Documents
India is one of the founder member of WTO India has most of her foreign trade with those countries, that are members of WTO Will India gain or lose by becoming a member of WTO has been a great issue of debate over the years
Improvement in Services
MNCs have establishes service organisations in India Outsourcing, IT, banking, insurance, transport, hotel etc Better quality services will be available to Indians It have generated ample employment opportunities It will check immigration of young men for jobs
Promotion of R & D
Research has been increased due to patents Increased investment in R & D Researchers get benefit in the form of royalty on patents It has improved variety of seeds, fertilizers, pesticides, medicines and other products
Benefit to farmers
By paying one time farmer will get better quality of seeds It will improve production Farmer can retain a part of their production as seed This seed can be used for the next crop
Restricts dumping
Dumping is done to damage domestic business Affected country can lodge a complaint with WTO WTOs dispute settlement body takes action against such nations
Reduction in subsidy
Subsidy (on inputs and outputs) in agricultural sector will be removed in phased manner Developing countries like India will be adversely affected by this Poor farmers will be the ultimate sufferers
Import of foodgrains
Surplus foodgrains of developed countries will be imported This import will be on large scale Domestic farmers will face competition due to this import Farmers will have to sell their land
Effect on prices
If patents on common products are approved countries like India will have to give huge royalty to the patent holders This will adversely affect prices of these products Pharmaceutical industry will be hard hit because of patents
Increase in unemployment
WTO promotes free trade It means free flow of goods and services MNCs use capital intensive and better technology Domestic companies will not be able to compete with MNCs Domestic companies will have to wind up their businesses leading to unemployment
Disturbance to PDS
WTO critics argue that WTO will adversely affect our PDS WTO has no objection for PDS to people living below poverty line in developing countries
Geographical Indications
India has passed The Geographical Indications of Goods (Registration and Protection) Act in 1999 Under this act correct geographical origin of the product is to be given so that other company or country can not get the patent For example Darjeeling Tea, Chanderi Sarees, Mysore Aggarbatti, Kullu Shawls, Kancheepuram and banarsi Silk etc
Settlement of dispute
DSB of WTO
Increase in agricultural exports Expansion in trade in textile and clothing Restrictions on dumping