'India's trade environment more favourable'
As per a World Bank report, India's trade environment is favourable compared to its other South Asian neighbours with the substantial reductions in trade tarriffs since the nineties.business Updated: Jul 12, 2008 19:49 IST
India's trade environment is more favourable compared to its other South Asian neighbours with the trade tarriffs in the country substantially reduced since the nineties, a World Bank report said.
"India has achieved substantial reductions in tariffs since the nineties and the current external environment is relatively favourable compared to low-income and South Asian country group averages", Lead Economist and Trade Programe Leader at the World Bank Institute Gianni Zanini said, while releasing a report 'World Trade Indicators (WTI) 2008'.
Zanini, who was speaking at a the event jointly organised by FICCI and World Bank in New Delhi, however, added that India's agriculture exports face high barriers and its share of trade with preferential partners is low.
The report said India's governance environment is relatively more favourable than the average South Asian or low -income country and is an improvement from the situation in the early 2000s.
Along with improvement in trade facilitation, real growth in trade and related jump on trade integration has been high, driven by high import requirements of a booming economy and services exports, it added.
It also said with severe power shortages, congested roads, and poor-quality railways and ports, deficient infrastructure is a major binding constraint to trade activity in the country.
Zanini, was hopeful that the trade growth in India would be maintained despite slowdown in the world economy.
"There is evidence of 'delinking' of the world economy with India's growth", he said.