India’s relationship with the OECD dates back to the late 1990s. Today, with India’s extraordinary economic performance and increasing importance for the world economy, that partnership is more important than ever.
Since 1991, India has put in place a series of stabilisation-cum-structural adjustment measures with far reaching effects. The central objective has been to increasingly integrate India’s economy with that of the rest of the world by reducing barriers to trade and investment. The promotion of FDI was also seen as a way of reducing the country’s dependence on debt-creating capital inflows, while at the same time revamping outdated technologies and easing the country’s entry to international markets.
The OECD’s analytical work is carried out in support of a strong, open and rules-based multilateral trading system. It promotes an improved understanding of the role of trade in the economy and includes a particular focus on trade liberalisation and economic development. Through its Trade Committee, the OECD considers a broad range of trade policy issues in an effort to build consensus and thereby advance the evolving multilateral trade agenda.
OECD analysis of India’s economic and trade performance can be found in the OECD Working Paper India’s Trade Integration, Realising the Potential and a 2009 publication entitled Globalisation and Emerging Economies. The analysis provides insights into India’s trade and regulatory policies, analyses of trade relations and trade performance trends, and examines barriers to trade and productivity. Policy recommendations to help India realise its significant trade potential complement this work.
% change in merchandise trade, 2000 - 2008
India and selected other economies
Source: OECD Main Economic Indicators
The OECD is also working on comparative advantage. Analysis of specialisation patterns among exports show that many emerging economies, including India, have a similar export structure to those of OECD economies, especially in the growth in human capital-intensive products. The 2011 publication Globalisation, Comparative Advantage and the Changing Dynamics of Trade underscores the importance of physical and human capital, the availability of credit, and the quality of regulations, notably labour market institutions, for competitiveness.
In addition, the OECD is leading the International Collaborative Initiative on Trade and Employment, engaging ten partner organisations in research and dialogue on trade and employment issues. Regional conferences - including one held at the Asian Development Bank focusing on Asia and the 2011 OECD Global Forum on Trade - consider trade and employment developments and related policies in Asia and beyond.
India is a major provider of official export credits and since 2007 has attended the meetings of the OECD export credit committees. India joined the November 2008 Statement on Export Credits and the Financial Crisis in which governments confirmed their strong commitment to continue to be reliable partners to exporters and financing banks. Official export credit support and finance play an increasingly important role in counterbalancing instability in periods of economic uncertainty and risk-averse behaviours of economic players, by helping to fill the gap where market capacities are temporarily limited.
In light of these considerations, through the November 2008 Statement, OECD member and partner governments determined to maintain their export credit support and ensure that sufficient capacity is available with the aim of supporting international trade flows, in line with sound underwriting principles, and within the limits of their respective international obligations.
Active with India (pdf, 52 pages, 4.2 MB)
An overview of OECD work with India on a wide range of topics including agriculture, industry, environment and social inclusion.