Regulating the post-independence textile trade: Anglo-Indian tariff negotiations from independence to the Multi-Fibre Arrangement (original) (raw)
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lse.ac.uk
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Despite attempts to liberalize India's import trade regime, the structure of import licensing is still restrictive and complex and for most products, trade restrictions are probably redundant as protection. Reforming export policies alone - without reforming India's import and tax systems - will produce only marginal improvements. Problems in the export administration can be resolved only by making changes in four areas. (1) The import licensing system must be rationalizedto eliminate import restrictions on inputs and components. The import regime inflicts heavy administrative costs on the Indian economy. Imports of raw materials and other inputs essential for production are delayed, leaving downstream producers idle when domestic supplies are interrupted (which happens often). The export regime is still not rationalized for smaller producers, indirect exporters, and firms that rely on domestic suppliers. (2) Tariffs and excise taxes must be consolidated around two to three ...