EXIM-Foreign Investment

Why blocking all Chinese investment is not a good idea? – UPSC GS3

Context: India’s foreign direct investment (FDI) policy was altered through a press note which made all investment from border sharing countries to be preapproved. But the government is re-examining extra scrutiny on Chinese investment. What was changed in FDI policy? Investment from countries with which India shared a land border would no longer be allowed …

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Bilateral Investment Treaties : Why needed? – UPSC GS3

What are Bilateral Investment Treaties (BITs)? Bilateral investment Treaties (BITs) are agreements between two Countries (States) for the reciprocal promotion and protection of investments in each other’s territories by individuals and companies situated in either State. Aim: To encourage foreign investors to invest in a State and there by contributing towards overall developments and advancements of the economy. …

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Why imposing Anti-Dumping duty is not working for Chinese Products? – UPSC GS3

Context: The Central Board of Indirect Taxes and Customs (CBIC) recently notified the imposition of anti-dumping duty on five products manufactured in China, including certain aluminium goods and some chemicals, for five years. What is the anti-dumping duty? It is a remedy sanctioned by the WTO to protect a member country’s domestic industry from imports that have been priced …

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Issues with India’s Free Trade Agreements (FTAs) – UPSC GS3

Context: To make FTA negotiations successful, India needs to address some of the issues that are hampering India’s FTA with other regional trade blocs. Global developments in FTAs: US-Mexico-Canada Agreement (USMCA) EU-Vietnam FTA 15-member Regional Comprehensive Economic Partnership (RCEP). China and Taiwan, request for membership to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). …

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Benefits of Free Trade Policy – UPSC GS3

Benefits of Free Trade Policy: The principle of comparative advantage: Freeing up trade moves a country towards specialization in products. This encourages the country to move towards products with low output costs and move away from comparatively costly products. Benefits of economies of scale: Open Trade allows each country to specialize in a handful of …

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Need to focus on Export led Growth – UPSC GS3

Importance of Exports in Economic Growth: Since World War II many countries have grown on the back of rising investments and exports. Japan, South Korea, China, and to some extent, Thailand and Malaysia, are all examples of economies where exports played a major role in driving economic transformation. Relation between Exports and Imports: Experience of Asian …

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India as a Global Investment Hub – UPSC GS3

India as a Global Investment Hub: India has the potential to become a Global Investment Hub. India’s unique advantages attract global companies to invest in India. In 2020, despite sharp economic contraction, India witnessed the fastest growth in Foreign Direct Investment (FDI) inflows among all the major economies. (>60 billion) Big firms like Google, Facebook, Walmart, Samsung, …

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