Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 122 views

    Indo-Lanka Free Trade Agreement

    Uploaded by

    JayaMadhav
    The document summarizes the Indo-Lanka Free Trade Agreement (ILFTA) signed in 1998 between India and Sri Lanka. It led to preferential treatment on over 5,000 tariff lines and the gradual elimination of tariffs over 8 years. Services trade also increased significantly post-FTA. The agreement helped attenuate the effects of global crises by providing cheap Indian imports to Sri Lanka. Deeper economic integration could further stimulate growth in both countries by tapping into India's large market.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd

    Indo-Lanka Free Trade Agreement

    Uploaded by

    JayaMadhav
    122 views6 pages
    The document summarizes the Indo-Lanka Free Trade Agreement (ILFTA) signed in 1998 between India and Sri Lanka. It led to preferential treatment on over 5,000 tariff lines and the gradual elimination of tariffs over 8 years. Services trade also increased significantly post-FTA. The agreement helped attenuate the effects of global crises by providing cheap Indian imports to Sri Lanka. Deeper economic integration could further stimulate growth in both countries by tapping into India's large market.

    Original Description:

    yjn

    Original Title

    Avi

    Copyright

    © © All Rights Reserved

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document summarizes the Indo-Lanka Free Trade Agreement (ILFTA) signed in 1998 between India and Sri Lanka. It led to preferential treatment on over 5,000 tariff lines and the gradual elimination of tariffs over 8 years. Services trade also increased significantly post-FTA. The agreement helped attenuate the effects of global crises by providing cheap Indian imports to Sri Lanka. Deeper economic integration could further stimulate growth in both countries by tapping into India's large market.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    122 views6 pages

    Indo-Lanka Free Trade Agreement

    Uploaded by

    JayaMadhav
    The document summarizes the Indo-Lanka Free Trade Agreement (ILFTA) signed in 1998 between India and Sri Lanka. It led to preferential treatment on over 5,000 tariff lines and the gradual elimination of tariffs over 8 years. Services trade also increased significantly post-FTA. The agreement helped attenuate the effects of global crises by providing cheap Indian imports to Sri Lanka. Deeper economic integration could further stimulate growth in both countries by tapping into India's large market.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    You are on page 1of 6

    Indo-Lanka Free Trade

    Agreement:
    Introduction
     Economic relations between India and Sri Lanka, which date back to
    pre-colonial times, began to pickup in the 1990s with the
    liberalization of the Indian economy
     The year 1998 saw the biggest boost in economic relations when
    the two countries signed a bilateral Indo-Lanka Free Trade
    Agreement (ILFTA), which began implementation in March 2000
     Among other factors, contemporary political forces led to the signing
    of the Agreement
     The two countries agreed for preferential treatment on 5112 tariff
    lines & an 8-year time table was devised for phasing out tariffs
     Indian state taxes were also to be removed gradually
     Asymmetry between the two countries was accommodated by
    special & differential treatment
    Services
    The extent of commercial services exchange between the two countries
    has increased in the post-FTA period as demonstrated by the following
    examples:
     Many SL students & patients travel to India to purchase education &
    health services each year
     Approximately 70% of Colombo port’s income is from transshipment
    earnings from India.
     Approximately 40% of SL airlines’ revenue is from the Indian market
    (SL Airlines)
     SL IT firms have provided technical solutions to Indian companies
    (interblocks sold internet banking solution to Indian banks,
    Microimage sold Tamil SMS adaptation to Bharti Airtel)
     SL tourist sector firms such as Aitken Spence & Jetwing have ventured
    into the Indian market
     India has become the largest source of tourists to SL
     Tourist arrivals from India grew rapidly at 20.9% per annum during
    2000-2007 & accounted for 19.4% of the market share in 2008
    Role Played by the ILFTA in Crisis Situations
     After the global financial & food crises & in the context of the ongoing
    economic slowdown, it is important to examine whether the ILFTA has
    played any role in attenuating the crisis and recovery effects in the SL
    economy
     The main role played by the FTA in the face of the crisis has been in
    providing cheap Indian imports to SL consumers, such as oil, vehicles,
    watches & pharmaceutical products, when prices are on the rise in other
    countries
     The fact that the Indian economy has remained relatively unaffected by
    the economic downturn has been an additional advantage
     Geographical proximity has enabled savings on transport-related costs
     It is thus important to look beyond the FTA in order to promote more
    cooperation which will enable the two countries to follow more inclusive &
    sustainable development policies & provide necessary safeguards against
    future crises
    Conclusion

     It is important to rectify the shortcomings of the FTA & build on its


    achievements
     The key opportunity is to tap into the large and dynamic Indian
    market, by moving beyond the ILFTA towards broader economic
    integration
     Deep economic integration with a fast-moving economy like India
    could contribute to stimulating growth rates in SL
     Today, as an economic crisis grips Sri Lanka’s traditional export
    markets and a food price crisis engulfs the global economy, SL should
    view India as an opportunity and not a threat, and strive towards
    more meaningful cooperation in facilitating inclusive and equitable
    development policies
    Thank YOU

    Presented by:
    Sai Avinash Valluri
    170541048
    BBA-II(A)

    You might also like