Parliamentarians? Forum on Economic Policy
India?s Foreign Trade Policy and
New Delhi, India, August
To facilitate an
informed discussion among the Indian parliamentarians on issues
of trade-related infrastructure in India and how it is being
dealt in the National Foreign Trade Policy of India, 2009-14
Background & Context
Infrastructure services can produce positive externalities. For
example, developing a new road infrastructure project to relieve
congestion in access to a port produces advantages not only for
the users of the project but also for users of other roads where
congestion is lessened as a result of a new project. Even
non-users gain through reduction of pollution and improvement of
the natural environment, and the country as a whole benefits as
a result of increased trade benefits.
In order to make
efforts to take advantage of economies of scale in production,
procurement, and/or marketing, firms to look beyond national
borders for both trade and investment opportunities. Promoting
efficient financial intermediation, coordinating and promoting
regional public goods, reducing macroeconomic vulnerability to
shocks, and strengthening security offer governments? similar
incentives to design, develop, and manage regional
infrastructure cooperation and integration.
In short, regional
infrastructure coordination can lower infrastructure costs and
limit environmental and other negative social impacts, while
contributing to trade expansion. For example, in the Greater
Mekong Sub-Region, special forums have been established to
coordinate transport infrastructure developments, particularly
for the development of cross-country economic corridors.
investment that reduces trade costs facilitates regional
economic integration through trade and investment expansion,
which motivates regional cooperation, including cooperation in
infrastructure development, generating a virtuous cycle of trade
expansion and development.
Background and Context, this meeting is aimed to sensitise the
Indian parliamentarians on the importance of trade-related
infrastructure in expanding trade opportunities and generating
better regional cooperation.
A paper will present
an objective analysis of India's trade-related infrastructure,
how it has been treated in the National Foreign Trade Policy of
India, and what should be done, why and how.