International business law ( Trade law in India)

International business law ( Trade law in India)

**Author : Sumaiya khatun Student at Sultan ul uloom college of law Hyderabad

Introduction

International trade laws are those areas of law that deal with certain rules and customs regarding the handling of trade between countries. It is also used for trade between two private sector companies in two countries.

GATT – General Agreement on Tariffs and Trade

The General Agreement on Tariffs and Trade (GATT), a free trade agreement involving 23 nations, reduced tariffs and boosted global trade. Between January 1, 1948, and January 1, 1995, GATT, the first global multilateral free trade agreement, regulated a large amount of international trade. When the World Trade Organization (WTO) replaced it, the agreement came to an end.

WTO – world trade organisations

International trade is governed by the World Trade Organization (WTO), an intergovernmental body. By offering a foundation for negotiating trade agreements and a dispute resolution procedure intended to enforce participants’ conformance to WTO agreements, which are agreed to be signed by officials of signatory countries and approved by their parliaments, the WTO regulates trade between participating nations. The majority of the WTO’s current concerns originate from earlier trade discussions, particularly the Uruguay Round (1986–1994).

India’s Foreign Trade policy

It will be clear when we look into India’s economy before the 90’s. Till then, India was a closed economy where average tariffs exceeded 200 percent, quantitative restrictions on imports were very extensive, and there were strict regulations on foreign investments. India started to reform during the 1990’s as it opened up the economy so that there will be a flow of foreign investments and an increase in the foreign trade policies of the country as well.

Scope of improvement

1. The primary objective is to enhance Indian export performance by utilising innovation and manufacturing.

2. Numerous low-cost, low-quality goods, particularly from China, have entered the market as a result of mismanagement and insufficient quality management. These are harmful to India’s economy, ecosystem, and balance of trade.

3. Logistical challenges are another major hurdle to Indian exporters. India’s leading access points, such as Kochi, have timeframes that are two to three times lengthier than Chinese ports. 

4. India falls far short of its prospects in trying to attract foreign direct investment (FDI), which is critical for increasing exports.

Modification proposed on foreign trade policies

2021 – 2026 

With the 60 percent drop in Indian exports and the 59 percent drop in imports as a result of COVID-19, the government established and continues to update a long-term strategy that takes such circumstances into account. This is one of the main reasons why the new Foreign Trade Policy 2021-2026 should include goods delivery. Parliamentarians, officers, merchants, exporters, and others provided input to the FTP 2021-2026 throughout its planning phase. 

 

Conclusion

On the whole, international trade gives an opportunity for the buyers and the sellers to be exposed to a new market environment as well as to new products. Industrialization, advanced technology, globalization, multinational corporations, as well as outsourcing, receives a major impact on the area of international trade and commerce. Hence, there lies utmost importance in the area of international trade so that there are effective laws and statutes in this sector which are applicable and convincing to each and every member nation under the WTO as well as various other international trade federations.