World trade organisation is expected to play an important role in the context of globalisation of world economies. It is supposed to promote free trade in the international market by reducing tariff barriers and by removing non tariff barriers. It is focusing on the competition in the international market and free access to markets across different countries of the world.It is facilitating bilateral as well as multilateral trade agreements.
Impact of WTO on the Indian economy:
1.It is expected that WTO will offer greater export opportunities to the Indian economy.Accordingly ,our share in international trade is expected to increase in future.
2.WTO promises an end to the quota regime imposed by developed countries on the import of textiles and clothing from the less developed countries like India .
3.Due to agreed reduction in trade barriers and reduction in subsidies to the domestic producers of agricultural goods in the developed countries ,prices of these goods are expected to rise in the international market .This is expected to accelerate India’s exports of agricultural products.
With greater stability of the international trading system through WTO,India is expecting a marked deadline in dumping practice adopted by the developed nations of the world .
WTO agreement is offering only an asymmetric treatment to capital and labour market .WTO focuses on the free movement of capital across different nations,not on the free movement of labour ,while both labour and capital are commodities of factor market.Certainly free flow of capital fosters the commercial interests of MNCs of the developed nations.They can find market in less developed countries .But the free flow of labour which would have fostered the commercial interest of less developed countries like India is not allowed by WTO.Accordingly ,Indian labour does not find free access to the labour markets of developed countries.