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India is advocating for preferential market access from the United States, as previously agreed upon.
This demand follows a year of trade instability for India and other nations due to U.S. 'Liberation Day' tariffs.
The issue highlights ongoing efforts to stabilize and improve bilateral trade relations between India and the U.S.
Preferential market access refers to a situation where one country grants another country more favorable trade terms (e.g., lower tariffs or fewer non-tariff barriers) than it offers to other trading partners. This is often achieved through Preferential Trade Agreements (PTAs). The Generalized System of Preferences (GSP) is a specific trade program offered by developed countries to eligible developing countries, allowing duty-free entry for thousands of products to promote economic growth in beneficiary nations. The U.S. terminated India's GSP benefits in 2019.
Simple Analogy: Imagine a special discount coupon for a specific store. While everyone can shop there, coupon holders get better prices. Similarly, preferential access gives certain countries special benefits (like lower tariffs) when trading with another country.
Bilateral trade agreements and preferential access must generally comply with WTO rules, which advocate for non-discrimination (Most Favoured Nation principle) but allow exceptions for PTAs and GSP schemes.
India's trade policy aims to boost exports and integrate with global value chains, making preferential access to major markets like the U.S. a key objective to achieve its export targets.
Increased exports resulting from preferential access can help improve India's trade balance and reduce its current account deficit, contributing to macroeconomic stability.
GS Paper 2 (India and its neighborhood- relations), GS Paper 3 (Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment; Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth; Investment models; WTO).
General Awareness (Indian Economy, International Organizations, Current Affairs)
General Awareness (Economy, Current Affairs, International Trade)
General Awareness (Indian Economy, Current Affairs)
General Awareness (International Relations, Economy)
Consider the following statements: Statement-I: India accounts for 3.2% of global export of goods. Statement-II: Many local companies and some foreign companies operating in India have taken advantage of India's 'Production-linked Incentive' scheme. Which one of the following is correct in respect of the above statements?
Answer: Statement-I is incorrect but Statement-II is correct
With reference to the international trade of India at present, which of the following statements is/are correct? 1. India's merchandise exports are less than its merchandise imports. 2. India's imports of iron and steel, chemicals, fertilisers and machinery have decreased in recent years. 3. India's exports of services are more than its imports of services. 4. India suffers from an overall trade/current account deficit. Select the correct answer using the code given below:
Answer: 1, 3 and 4 only
Among the following, which one is the largest exporter of rice in the world in the last five years?
Answer: India
High for UPSC (Economy, International Relations), Medium for SSC/Banking (General Awareness).
Granting more favorable trade terms to a specific country than to others.
Taxes or duties imposed on imported or exported goods.
A trade program allowing duty-free entry for products from developing countries into developed markets.
A WTO principle requiring countries to treat all trading partners equally, with exceptions for PTAs and GSP.