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29. FROM WTO TO TRADE DEALS, 3 KEY CHALLENGES NEW
COMMERCE MINISTER IS LIKELY TO FACE
Commerce Ministry is entitled to represent India at the World Trade Organisation (WTO), enter into
international trade deals, keep a check on all the sectors' growth of India and in turn, contribute a major
chunk to the country's GDP.
taking advice from his predecessors, according to
Indian Express.
According to the report, he is taking inputs so that
he is able to learn from their experiences.
The newly-appointed Commerce Minister Trade
Suresh Prabhu, who was earlier the Railways
Minister for three years, is likely to face many India is an import-extensive country, making it
challenges in his new list of duties. one of the biggest challenges for the Commerce
Ministry.The Ministry has to boost India's exports
Commerce Ministry handles the major component and lower the country's imports for the country to
in developing the country. This is the government become more independent.
department entitled to represent India at the World
Trade Organisation (WTO), enter into international If India is made export-extensive, it will not have
trade deals, keep a check on all the sectors' growth to be dependent on other countries for its growth
of India and, in turn, contribute a major chunk to and development.
the country's GDP.
In the recent data released by the Commerce
Here are 3 major challenges lined up for Suresh Ministry, it states that India already has an import
Prabhu share of 79.17 percent as against the export share
of 69.54 percent among the top 25 countries it
WTO trades with. This data accounts for the trade of
April and June this year, making a 10 percent
WTO is the world's largest trade forums where the imbalance in trade prevalent in two months itself.
countries who are a part of this forum take major
decisions which revolve around building trade Higher imports cause a trade imbalance as the
relations by either making new ones or resolving country will have to first pay off its import bills
old ones.The trade-related matters are supervised and then see its overall growth. More import bills
by the WTO body. mean a rise in the government's expenditure and
more export bills mean a rise in the government
The WTO conference is around the corner and revenue. As of now, India's trade balance is
Suresh Prabhu seems to be preparing himself by negative, showing that the imports are much
higher than the exports.
To tackle this situation, the Commerce Ministry
has to boost domestic manufacturing, tap the
resources within the country and make sure that
the products are at par with the international
standards.
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