International-Business-Dr-R-Chandran-E-book

AGREEMENTS OBJECTIVE OF
AGREEMENT
2. General
Agreement on
Trade in Services
(GATT)
173
International Business- Dr. R. Chandran
IMPACT ON
INDIAN
POLICY/ LAWS
BUSINESS
IMPLICATIONS
their activities status like that of
Public
P0etroleum
companies will
• All services
come under
GATS (12
sectors).
Require
countries to
ensure MFN
principle,
transparency,
mutual
recognition of
qualifications
etc.
• Lists
liberalization
commitments of
countries
• Further
negotiation by
2005
• Foreign Trade
Policy
incorporates
services
chapter for the
first time; same
status as to
merchandise
• Committed to
open 10 sectors
• Partial
liberalization in
Banking sector,
Telecom sector
(TRAI
established in
line of SEBI),
insurance (IRA
established) etc
Also see : what is
service, India the
world service
provider
be broken.
• Services
constitute 45% of
GDP, State
monopolies in all
the major sectors
(banking,
insurance,
transport-rail
etc).
Liberalization in
the sectors will
be extremely
beneficial to
Indian companies
in competing
domestically as
well as
internationally.
• Huge potential
for export of
services as
accountancy,
date processing
& software
mgmt,
consultancy,
legal services,
feasibility
studies.
See also ; what is
service, India the
world service
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