Topic : GS-2: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
GS-3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
4. As per the figures presented by the Reserve Bank of India recently, India is in an economic recession for the first time in its independent history. In this context discuss the need for India to shed its exaggerated fears of trade agreements to create new jobs. (250 words)
Reference: The Hindu
Why the question:
As per the figures presented by the Reserve Bank of India, India is in an economic recession for the first time in its independent history. Thus the question.
Key Demand of the question:
discuss the need for India to shed its exaggerated fears of trade agreements to create new jobs
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Structure of the answer:
Brief upon the issues at hand related to Jobs, exports and trade pacts in the country.
Jobs are the first casualty during a recession. Thousands of people lost their jobs due to the slowing economy in 2018-19 and 2019-20. Unemployment had reached a 45-year high. More than 2 crore people lost their jobs and incomes during the lockdown.
Exports – Despite the “Make in India”, export volumes have decreased in the last six years. The reason for this is seen as the complete reversal in the direction of India’s foreign trade policy with higher tariffs, non-tariff barriers, quantitative limits, the return of licensing, border country restrictions and the appreciating value of the rupee.
Then talk about the trade agreements; Exports are linked to trade agreements. The member-countries of a trade agreement promote trade among themselves with easy rules but restrict trade with non-members with hard rules. Unfortunately, India has turned towards what seems like an anti-FTA policy.
Explain what needs to be done.
Conclude that India must re-learn to engage with other countries and negotiate favorable trade agreements through the bilateral and multilateral routes. The art of survival in a fiercely competitive world is engagement and negotiation.