Reinvigorating India’s manufacturing sector: integrating the services value chain with Southeast Asia

Fostering connectivity through stronger regional trading relationships may hold the key to unlocking growth in India’s manufacturing sector. Opening up regional trade networks will not only reduce the costs of trading but also accelerate the development of manufacturing, production networks, and value chains in the region. Successful market integration requires a foundation of cooperation and knowledge sharing across borders

Sports Retailinf in India: Opportunities, Constraints and Way Forward

Sports retail is a small but fast growing segment of modern retail in India. Recently, thecountry has been hosting many international sports and this has given a boost to thissector. Many foreign and domestic corporate retailers have entered sports retail. Sportsgoods manufacturing is a focus area in the Foreign Trade Policy (2009-2014) and thegovernment is taking a fresh look at the current foreign direct investment policy inretail.In the above context, this paper provides an overview of the sports retail sector in India.Specifically, it presents the different retail formats, consumer profile, retailers’ supplychain and sourcing. It also examines the retail and sports policies and their implicationsfor this segment of retail, analyses the barriers faced by this sector and suggests policyreforms.The study found that the policy of allowing 51 per cent FDI in the single-brand formathas not benefited this sector. The FDI ban on multi-brand retail is not an entry barriersince foreign retailers can establish their presence in India through other routes. Thestudy found that since this is a niche segment of retail, FDI would not have an adverseimpact on traditional retailers. It concludes that government should allow 51 per centFDI in multi-brand sports retail. This will increase sourcing from India, lead todiffusion of technology, proliferation of brands, investment in sports and sportspromotion, among others.Retail, Sports, Government Policy, Trade, Consumer Survey

Trade Agreements and Services Value Chain: The Case of India and Thailand

Services sector is an important component of the world trade and production networks. With the opening up of world economy, the role of services in the global value chain and value added has expanded. Services liberalisation is becoming a crucial component of free trade agreements. This is particularly true for trade agreements between South and Southeast Asia. Given this background, the objective of this paper is to understand the scope of establishing services value chain between two countries in South and Southeast Asia - namely India and Thailand - by integrating the two markets through trade agreement. The analysis is based on secondary data, in-depth interviews with policy makers and stakeholders in India and Thailand and an examination of the existing trade agreements of the two countries. The paper found that the present level of integration between the two markets is low due to the existence of market access barriers and regulatory bottlenecks. The paper makes recommendation on how the two countries can reduce barriers to trade in services, thereby fostering greater integration and leveraging the development of a global value chain

Movement of engineers and architects between India and the EU

CARIM-India: Developing a knowledge base for policymaking on India-EU migrationThis paper examines the current and future prospects for the movement of architects and engineers between India and the EU, based on secondary information and a primary survey. Due to ageing population and a shrinking workforce, the EU Member States are facing shortage of skilled professionals, including architects and engineers.CARIM-India is co-financed by the European University Institute and the European Unio

Examining mode 4 commitments in India and the EU’s agreements : implication for the India-EU BTIA

CARIM-India: Developing a knowledge base for policymaking on India-EU migrationIndia and the European Union (EU) are currently negotiating a Broadbased Trade and Investment Agreement (BTIA) and Mode 4 liberalisation is a key component of the negotiations. India and the EU have different negotiating positions under Mode 4 in the World Trade Organization (WTO) and in their bilateral agreements. The objective of this paper is to examine India and the EU’s offer in the WTO and their existing commitments in bilateral agreements and draw implications for the India-EU BTIA.CARIM-India is co-financed by the European University Institute and the European Unio

Indian Investment in Eastern Europe: Prospects, issues and the way forward

CARIM-India: Developing a knowledge base for policymaking on India-EU migrationWith liberalisation, economic growth and stable macroeconomic conditions, companies from developing countries like India, have started investing abroad. Of late, Indian companies have diversified their investments and have shifted from markets within Asia to European markets. This paper examines Indian investment in Eastern Europe, barriers to investment and possibilities for enhancing it through appropriate policy measures. Eastern Europe is a new destination for Indian investment. The paper highlights that India and East European countries have complementarities. However, despite several initiatives, the present level of Indian investment in Eastern Europe is low and limited to a few countries and sectors. A majority of the Indian investments are directed towards Russia and most of these investments are made in the manufacturing and mining sector. Moreover, a large part of the investments is made by a few large Indian companies. Based on in-depth interviews, the study found that lack of market knowledge, poor governance structure, high level of corruption, non-transparent public procurement process and cumbersome customs procedures are some factors hindering Indian investments in the region. The study identifies various areas of investment and collaborations and suggests measures to remove the barriers to investment. While some of these can be addressed under the on-going India-EU Broadbased Trade and Investment Agreement, others require strengthening diplomatic ties, foster information sharing and domestic reforms in India and East European countries.CARIM-India is co-financed by the European University Institute and the European Union

Anti-corruption agenda of the G20: Bringing order without law

The G20 has emerged as a premier deliberative forum, involving leaders of some of the largest, systematically important countries of the world. Over the years, the G20 agenda has evolved to include pertinent issues for both developed countries and the emerging market economies. After the G20 Summits were launched, certain global concerns that required collective action became permanent features of the G20 agenda. Tackling corruption was one of them. Corruption is being characterised as an international problem requiring collective corrective action. The G20 established an Anti-Corruption Working Group as early as in 2010, at the fourth summit in Toronto, which sets the Anti-Corruption Action Plan for the G20 members. Over the years, the issues under the Working Group have evolved to capture continuous and emerging challenges for the G20 members. India has been actively involved in the anti-corruption agenda of the G20 and has periodically submitted its implementation reports to the G20. More recently, India has also contributed to the anti-corruption agenda by making suggestion on significant issues for G20 members. This paper discusses the evolution of the anti-corruption agenda globally and within the G20, and India's progress and contribution in furthering this agenda. While the objective of this paper is to report the progress of the G20 members including India, the paper also makes observations regarding the G20 as a multilateral body for addressing anti-corruption issues. The paper is based on a review of the G20 documents and discussions with experts in the area

Safeguarding against corruption during the pandemic: Recent evidence from the G20 countries

When Covid-19 was declared as a pandemic, countries administered lockdowns and stimulus packages were announced to address the deteriorating situation. For implementing these packages, routine control measures were simplified and often relaxed. The G20 countries were quick to react by administering relief packages and at the same time, the G20 acknowledged that emergency measures, in the times of economic and social fragility, may result in corruption. This paper investigates the potential threats of corruption due to fiscal expansion during the pandemic and discusses recent evidence from G20 members on the mechanisms in place to address corruption. More generally, using available secondary data, the paper compares how the G20 members and non-members have performed on the corruption perception index over the years. The paper found that to address the Covid-19-situation, most G20 countries announced a mix of budget and off-budget items as stimulus packages. Almost all G20 countries reported corruption risks, the most common being corruption and fraud risks in public procurement of medicines, medical supplies or any related goods or services. At the same time, the G20 undertook accountability assessment for its members and the G20 countries formulated mechanisms to address corruption risks, frequenting the use of technology and by enhancing the role of civil society. Both, in comparison to the last year, and over the last decade, the G20 countries have outperformed the non-member countries on corruption perception. Going forward, the papers argues that the G20, as a platform can affectively continue to address corruption risks by building cooperation and sharing best practices, especially in areas where some G20 members can lead by example

Integrating south and southeast Asia through services value chain: The case of India and Thailand

Liberalisation and technological developments have led to the fragmentation of production and the emergence of the concept of global value chains. This has ushered in the role of services for linking the production network, resulting in a greater composition of services in the value of tradable. Consequently, liberalisation of the entire value chain is being addressed through trade agreements for efficient cross-country delivery of goods and services. This has also been the case with South and Southeast Asian Free Trade Agreements. The objective of this paper is to understand the prospects of enhancing services trade, investment and cooperation between South and Southeast Asia, taking the example of India and Thailand, by focusing on the development of services value chains through services sector liberalisation. Based on a primary survey and an analysis of the trade agreements involving India and Thailand, the paper finds that the present level of physical and people-to-people integration is low. This is due to the presence of certain market access barriers and regulatory bottlenecks in the two markets. The evidence suggests that these barriers can be addressed at the institutional level by means of a comprehensive trade agreement. India and Thailand have singularly liberalised key services sectors in their concluded bilateral and regional trade agreements, thereby fostering greater integration and leveraging the development of a global value chain

Benchmarking adoption of e-commerce across the G20 members

The COVID-19 situation has accelerated the adoption of e-commerce across the world. While, globally, there has been an increase in the share of e-commerce in total retail sales, there are variations in e-commerce adoption across countries and the difference is obtrusive when one compares developed countries and emerging market economies. This paper undertakes a comparative assessment of e-commerce adoption by the G20 countries and, in doing so, it benchmarks the G20 members across different indicators that determine e-commerce adoption. Based on secondary data, the paper presents some stylized facts, discusses the regulatory scenario with respect to e-commerce in G20 countries and identifies key constraints to e-commerce adoption in the comparatively poor performers. It is found that, overall, most emerging market economies are not very well prepared to support e-commerce adoption. Rather, compared to the developed countries, emerging market economies perform poorly on indicators related to access and use of digital technology, financial inclusion, postal reliability, and electronic security. The paper found that the emerging market economies are severely affected by inadequate infrastructure, digital illiteracy, and low use of digital payments by enterprises. Whereas there is no dearth of regulations on e-commerce business, nevertheless a uniform approach for regulating e-commerce operations is missing in the case of some countries. Moreover, different countries have different positions with respect to data privacy and protection. The paper recommends that G20 members should work together to bridge the adoption gap, enhance micro, small and medium enterprises (MSMEs) participation in e-commerce through enhanced financial assistance, build cooperation for adopting common standards, and encourage countries to adopt national policies with the vision to promote e-commerce