• UGI USER
  • Apr 12, 2024
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ADB SUGGESTS INDIA SIMPLIFY TARIFF POLICY FOR ENHANCING MANUFACTURING.

Why in the news?

ADB recommends India simplify tariff policy, enhance trade competitiveness, and integrate into global value chains to boost the manufacturing sector.

About the Simplification of Tariff Policy:

  • ADB suggests India streamline its tariff policy to enhance trade competitiveness and boost integration with global value chains.
  • Simplified tariff regulations can facilitate smoother trade operations and encourage foreign investment in the manufacturing sector
  • India needs to specialise in stages of production where it holds a comparative advantage to effectively integrate into GVCs.
  • Rather than aiming to be present across the entire value chain, India should focus on enhancing its strengths in specific production stages.
About The Asian Development Outlook (ADO):

  • The Asian Development Outlook (ADO) is an annual economic report by the Asian Development Bank (ADB).
  • It offers in-depth analysis of macroeconomic and development issues in ADB’s developing member countries (DMCs).
  • ADO forecasts inflation and GDP growth rates for Asian countries, including China and India.

About Global Value Chains (GVCs):

  • Global Value Chains (GVCs) encompass intricate production and distribution networks across multiple nations, involving diverse stages of goods and services production.

Multinational Collaboration:

  • Involve multiple firms, suppliers, and intermediaries across various countries.
  • Each entity contributes to the creation of a final product or service.

 

source:

https://www.thehindu.com/business/india-needs-a-simpler-tariff-policy-says-adb/article68055228.ece#:~:text=India%20needs%20to%20take%20greater,sector%2C%20which%20was%20critical%20to