India initiated economic reforms as an aftermath of a serious foreign exchange crisis. The number and the pace of reforms have been increasing ever since. The scope of external liberalization has increased many-fold in several fields, with difficult withdrawl conditions under WTO agreements. Despite all these efforts, the Balance of Trade continues to be adverse, and so is the case with balance in the current account, if the private transfers were not supporting the same. Even then the Balance of Payment position can not be said to be satisfactory, if one takes into account the transfers in capital account and the external debt position, the latter having crossed U.S. $ 100 billion mark in the year 2002. The next round of negotiations at WTO is due soon, in which GATS, including Tourism, is likely to be an important item. International Tourism is a U.S. $ 4 trillion plus service sector, growing at an average rate of 10% per year.
Author: Krishna, Kumar
Source: Indian Institute of Management Kozhikode
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