Blog: #TradeWar #WTO #ExportSubsidy #Economy

Tuesday, 27 March 2018

#TradeWar #WTO #ExportSubsidy #Economy

Thanks for Speaking Up !

Dear Shri Swaminathan S Ankalesaria Aiyar ;

Thanks for telling some bitter truth

I hope our Policy Makers in New Delhi find time to read your views on the recent #TradeWar unleashed by USA , as expressed in your following article, appearing in today’s Economic Times :

India may end up gaining by losing the WTO case on export subsidies

https://blogs.economictimes.indiatimes.com/Swaminomics/india-may-end-up-gaining-by-losing-the-wto-case-on-export-subsidies/

Towards the end, you write :

India needs to accept that subsidies are not the way to promote exports.

Indian exports are uncompetitive and high-cost thanks to ,

· land made expensive by acquisition laws,

· interest rates made high by populist schemes that stoke deficits and inflation,

· labour rates made high by labour laws,

· industrial power tariffs kept high to subsidise farmers, and

· freight rates kept high to subsidise passengers.

If India loses the WTO cases, politicians might finally agree to reform these high-cost policies that hit exports.

In my following blog ( sent last week , as email to the Policy Makers ) , I wrote :

{ https://myblogepage.blogspot.com/2018/03/wto-export-import-economy.html }

Only way to survive, will be by ensuring that we turn India into a :

#LOW-COST-ECONOMY,

where we can compete with the rest of the world ( for our share of the World trade ), on the basis of a BETTER QUALITY / LOWER PRICE / FASTER DELIVERY , of our products and services

We must immediately implement #REFORMS which will help our companies lower their costs of :

# Manpower ( Salaries / Wages )

# Materials ( Raw materials / Components / Sub Assys )

# Money ( Funds / Finance / Capital )

# Space ( Constructed factories / offices / homes )

# Management ( Manufacturing and Marketing Overheads )

# Compliance ( Forms / Reports to be filled / filed )

# Corruption ( Bribes to be paid to Govt Agencies / IT dept )

# Non-Governance ( MPs – MLAs fail their responsibility )

As far as enabling Indian companies to lower their costs is concerned , ( - thereby , effectively making them more competitive in export market ), there is an urgent need for our governments ( both at the Centre and at the States ) , to :

· Speed up the pace of #REFORMS already initiated during past 4 years

· Initiate NEW REFORMS

During the past 4 YEARS , I have sent many suggestions to our Policy Makers

It is not possible to list all of these here

But , readers interested to know , may look up a few of these at :