India and Free trade
Published 21 Dec 2016
The model of market in which the goods and services are transferred without unnecessary barriers of the government is called Free Trade. Western countries are ruling the market now with the advancement they have gone through or the inability of the other countries to cope up with their advancement. But now slowly it’s getting shifted and all the developing countries are contributing their own part in the world free trade market. India which is regarded as the forerunner in the developing countries have already made its mark and even developing states are taking the development of India into account.
Media giants such as Times, Foreign Affairs, The Economist and Newsweek described India as a rising economic power and change of American Perceptions of India and even the chance of becoming “strategically” to it. The major break of India is economic liberalization in 1991 in the economic front. It opened Indian trade to international market where nations have to face the global competition. With the amount of intellectual knowledge and English communication India has dominated the proceedings and sustained in the international market bagging lot of outsourcing work which boosted India’s economy (9.2% growth) and its infrastructure. With that India became a global competitor. India became a perfect example to economic globalization with the liberal democracy principle which is very difficult.
The liberalization hasn’t moved enough in the second half of liberalization attempts. India is having very strong principle safeguarding public rights declaring it as sovereign socialist, secular, democratic republic. Even the adopted principles like liberty, equality and fraternity is taken very seriously. But there are question about the political stability with the coalition era going on and also about the credibility of the politicians and the corruption. There was no enough satisfaction about the Indian administration in India and in the other states. Richard Nixon said “those who think that India is governed badly should marvel at the fact it is governed at all.” India is ranked with 70th position in world corruption Index. Even the corruption is not limited to India it is every where, this was revealed after the scandals in corporate like Enron, WorldCom etc.
Indian farmers are forced to enter into the “unfair global system” where the prices are low due the heavy subsidies given to US and European farmers. In Doha Round of talks India failed to persuade US and other developed nations. Developing countries are looking at India to take this task as they have no enough voice in international stage. There is a prolonged protest by the opposition on this part and even the concept of SEZ is also under reconsideration due to agitations by farmers. The people around the world are favoring the international trade, economic globalization and benefit national economies, consumers and companies etc. But many are in the feeling that the trade threatens jobs and harms the environment. This can be mitigated by labor standards and effective environmental measures.
There is even negative impact of globalization with the current pattern even developed countries as a result of marginalization of specific regions, environmental decline, and social groups such as the aged, the youth and the employees of declined branches of the economy and liberalization of social policy. Anti-global sentiment takes the form of social clashes, terrorism and extremism. With these types of inequalities the tensions are prevailing. Another major problem faced by the nations are due to the public health problems that arise from increased cross- border microbial traffic caused by the increased speed and volume of international trade and travel.
The state is explained as a particular type of political system which has sovereignty. It is categorized into night watch man state, police state and welfare state. There was a break down of democracy in Germany in the year 1930. It took lot of time to get back into normal position. Political fall outs, corruption and frequent change of government are few negative effects of FDI in Nigeria. The comparative advantage of the world production according to countries may gradually redistribute. This results in negative impact on food security and even results on unemployment.
There was several set back in the process of globalization. But if the world won’t embrace the concepts of the globalization it will not go ahead. India is making a long stride in the global market so it should also focus on the internal matters like stability and security. With in less time world is going to witness the perfect meaning of Free Trade.
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