Research Studies, Export Potential Surveys, Seminars/Workshops

Research activities occupy a critical place at IIFT because of the institutional emphasis on a strong pervasive interface between research and training. The Institute has so far brought out over 650 research studies and surveys. In addition, it has developed substantial consulting capacity in analysing international business situations and developing appropriate corporate strategies. Prominent institutions and national and international organisations that have been consulting the Institute on issues related to international business include: FICCI, CII, FIEO, CID – Harvard University, European Union Office, USAID, UNDP, ESCAP, Commonwealth Secretariat, and Central & State Governments of India.

The Institute has set up the Centre for WTO Studies, Centre for International Trade in Technology (CITT) and Centre for SMEs. as part of its efforts to focus on important international trade policy issues.

   Research Studies Completed During 2006-2007

  Seminars/Workshops During 2006-07

WTO-Related Studies/Seminars

 Dispute Settlement Systems under WTO
 Special and Differential Treatment for Developing Countries under WTO
 China’s Accession to WTO
 Russia’s Accession to WTO
 Moldova’s Accession to WTO
 WTO: Trade and Environment Linkages (in Collaboration with CII)
 Experts Group on Interaction Between Trade & Competition Policy
 WTO Consistency of Trade Policy of Major Trading Partners for the Year 1999-2000
 WTO Agreement on Agriculture & Indian Economy
 WTO Compatible Scheme for State of Uttar Pradesh, India
 WTO Related Issues
 Round Table Discussion on Multilateral Framework for Competition Policy: Initiative in WTO
 Round Table Conference on WTO Dispute Settlement Mechanism
 WTO: Its Impact on SMEs
 Implications of WTO for India
 WTO & Indian Leather Industry at Calcutta
 WTO Issues Seminar for Chief Secretaries
 WTO: Agreement on Agriculture India’s Negotiating Agenda
 WTO Ministerial Round at Doha & Indian Economy
 Seminar on Trade Facilitation
 Seminar on WTO Negotiations on RTAs
 National Conference on WTO Issues
 National Workshop on Technical Barriers to Trade
 WTO and Indian Business in Bombay
 WTO: Its Implications for Business

WTO Related Issues

i)       Measures for Fair Protection and Promotion of Indian Food Processing Sector

ii)      Global Challenges for Indian Food Processing Sector

WTO-TBT Notifications Issued during 2001-2003 in Select Sectors

Article 39.9 of the TRIPS Agreement: Its Genesis and the Present Context

Removal of MFN Exemptions in Services

Implementation of the Doha Ministerial Declaration on Agreement on TRIPS and Public Health

Compulsory Licensing Provisions: A study of Select Country Experiences

Analysis and Preparation of Initial offers in Services

Biotechnology Patenting : The Way Forward

Implementation of the Agreement on Agriculture: A Review

Implications of the WTO Commitments on the Indian Automobile Industry

 
Free / Preferential Trading Arrangements

 Desirability of India's Bilateral Free Trade Agreement with Chile
 Desirability of Bilateral Free Trade Agreements with Select Countries
 Analysis of the Desirability of a Bilateral Free Trade Agreement with Egypt
 Strategic Trade Alliance between India and the Sultanate of Oman
 Bilateral Free Trade Agreement Between India and South Africa
 AFTA-India-Linkages for Enhancement of Trade & Environment
 RTAs: An Impact Analysis of NAFTA with Special Reference to India
 Study on India-Morocco PTA/ FTA
 Preferential Trading Regime for Bhutan
 RTAs: An Impact Analysis of with Special Reference to India: i) ASEAN ii) Mercosur iii) SAPTA iv) New Bilateral

Agreements with EU

Products / Services Studies

 Project Exports: Central Excise Bond Formalities
 Export Marketing of Select Products From Punjab
 Capabilities and Export Opportunities in Select Non-conventional Technology Based Services
 Strategy for Steel Exports
 Supply Base and External Market Opportunities for Select Non-Conventional Technology Based Services From India
 Export Marketing Strategies for Powerloom Sector
 Import of Raw Silk and Exim Policy 1997-2002
 Export Prospects of Alcoholic Beverages in Russia, Ukraine and Uzbekistan
 Market Survey on Marine Products in China, S. Korea & Taiwan
 Commodity Exports from ESCAP
 Non-Tariff Measures on India's Exports: An Assessment
 A Compendium on Technology Exports from India
 Quarterly Newsletter on Technology Exports
 Export Potential of Table Eggs in Dubai and Kuwait
 Export Market Strategy for Select Handicrafts
 Bio-technology with Special Focus on Genetically Modified Foods
 Medium Term Plan For Tobacco Exports from India and Strategies for the Next Five Years
 Guidelines and Rules Pertaining to the Export of Non-Conventional Energy Products, Services and Technologies
 India's Export Potential in Pharmaceutical Products in Select African Countries
 Export Competitiveness and the Market for Textiles
 Reports of Foreign Delegations and Indian Delegations Abroad
 A Study on Technology Intensive Exports - Policies and Incentives
 "EMCB-ENVIS and IIFT"
 Evaluation of Export Promotion Scheme for Handicrafts
 Export of Food Grains by FCI
 Tariff and Non-tariff Barriers on Export of Jute Product
 Colloquium on Technology Exports

Review of Financial Control System at Export Inspection Council

Enhancement of PEC Branding in Developing Countries

Analysis of Surge in Imports of Dairy Products, Fresh Fruits and Processed Fruits by India

SPS/TBT Type of Technical Barriers to Trade Faced by Indian Food Product Exporters

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South and South East Asian Studies

 Import Cooperation Among SAARC Countries
 Prospects of Indo-ASEAN Trade & Economic Cooperation in association with FIEO
 Trade Related Joint Ventures between India and Bangladesh
 Currency Turmoil in South-East Asia: Impact on India's Exports
 How to Promote Exports from Bangladesh to India
 China's Accession to Bangkok Agreement


European Union – Studies / Seminars

 Agriculture GSP Scheme of the European Union : A Comparative Analysis
 The Impact of the Expansion of the European Union on India's Exports
 Impact of EU's Enlargement on India

EU Enlargement and Its Impact on India’s External Setor
 Euro: Implications for India
 Advent of Euro

Agriculture-Related Studies

 Jute Products
 India's Food Security Issues: Export Policy & Institutional Framework
 Export Competitiveness of Select Agro Products of India (with CID, Harvard University )

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Export Potential Surveys

 Export Potential Survey of North Eastern Region
 Export Potential Survey of Maharashtra
 Export Potential Survey of Andhra Pradesh
 Export Potential Survey of Vidarbha
 Export Potential Survey of Madhya Pradesh
 Export Potential Survey of Tripura
 Export Potential Survey of Jharkhand
 Export Potential Survey of Orissa

Export Potential Survey of Chhattisgarh
 Export Development Plans for North-East

i)       Assam

ii)      Arunachal Pradesh

iii)     Meghalaya

iv)    Tripura

Market–Related Studies

 Trade and Investment Opportunities in Select West & East African Countries
 Identification of India's Potential Export Products in the WANA Region
 India’s Export Potential to MERCOSUR Countries
 Promotion of India’s Trade with Sub-Saharan African Countries


Sector–Specific Studies

 Impact of Trade Liberalisation on Small Scale Industry in India
 The Impact of Economic Reforms on the Social Sector Development
 Informal Sector's Contribution to India's Exports: A Quantitative Evaluation
 Promotion of Exports of Small Scale Products

      Exportable R&D Services from CSIR System

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Organisation-Related Studies

 Addressing Financial Requirements of EOUs and EPZ Units
 Peer Review of Export Inspection Council (EIC), Export Inspection Agency (EIAs)
 Restructuring and Strengthening of VITC


Workshops / Training Modules

 Negotiation Techniques in the Area of Trade and Investment Liberalisation
 Research and Training Needs in International Trade in Asia-Pacific Countries
 Intensive Training Session for Negotiators of International Investment Agreements
 A Compendium on Institutions Offering Management Education, Courses Offered & Structure in Indian Ocean Rim Countries
 Intensive Training Session for Negotiators of International Investment Agreements
 Training Module on Trade in Environmental Services and Human Development
 Workshop on Integrating Business Institutes and Industries

Handicrafts Portal for the Office of Development commissioner

Creation of a web-portal on Environment Services and Trade-II


Miscellaneous Policy–Related Studies / Seminars

 Amendment to the Central Sales Tax Act 1956
 Implementation Model for Establishment of Free Port in India
 External Trade Procedures and Regulations-Scope for Simplification
 Proper and Useful Utilization of the Space Allotted to APSTC by IIMT at Rotterdam
 Costs and Benefits of Taking Marine Insurance on Import of Urea on Government Account
 Cost Benefit Analysis of Insurance
 Reservation through Transchart: Policy Issues
 Compendium on NTMs facing India's Exports
 Trade & Environment Linkages: Issues from Indian Standard
 Issues Relating to Foreign Direct Investment
 Establishment of Warehousing Facility in Southern Africa
 NIC Code Numbers for Select Products
 Market - Audit on India International Trade Fair – 2002
 Market - Audit on India International Trade Fair – 2003
 Maintenance & Management of the Portal of Handicrafts between IIFT
 World Trade Environment and India’s Export Strategy
 Electronic Commerce in International Trade
 Geopolitics of International Trade and Finance at the end of the 20th Century
 Implications of EU GSP Rules of Origin on Indian Textile and Clothing Sector
 International Conference on New Dimensions in Global Business Perspective 2001
 Implications of the Removal of Quantitative Restrictions

Textiles and Clothing Exports of India to EU with Special Reference to EU Enlargement and ASEAN Competition in the EU Market

Management Teachers’ Programme on International Business Strategy

Study on WTO Related Issues - (Dr. Sunitha Raju and Ms. Tamanna Chaturvedi)

The Study on WTO related Issues had the following components: (i) Global Challenges for Indian Food Processing Sector; and (ii) Measures for Fair Protection and Promotion of Indian Food Processing Sector.
The Study was undertaken on behalf of Ministry of Food Processing with the following objectives.

• Identification of import sensitive agro products;

• Analysis of the modalities for tariff reduction and their implications for India;

• Analysis of the global trends in agricultural subsidies and their import trade implications for India;

• Identification of export potential agro and processed food products;

• Analysis of the export competitiveness of the identified products;

• Analysis of the external constrains for export growth in terms of market access issues, domestic and export subsidies on products of export interest to India;

• Analysis of the domestic constraints for export growth;

• Analysis of export promotion measures.

 i) Global Challenges for Indian Food Processing Sector

The Indian agri export sector is poised for growth. The medium term projections of global agricultural trade clearly highlight the trade opportunities particularly in Beef, Vegetable Oils and Rice. Fruits & Vegetables (both fresh & processed) is also another area where international trade offers significant export opportunities. Exploiting these opportunities requires an integrated approach to production and trade as world markets are becoming increasingly competitive along with a multitude of standards to be met. The challenge for India is to retain the production cost advantages evenwhile seeking to upgrade the quality and marketing systems.

Changes in consumption patterns is leading to increased demand for “high value” products such as vegetable oils & meat in developing countries and fresh fruits & vegetables and organic products in developed countries. At the same time, food scares and health concerns have challenged the confidence in food quality. As such, consumers expect retailers to ensure food safety measures through their purchasing practices. Therefore, competition among retailers increasingly involves food safety aspects. Consumers are also demanding more transparency, traceability and assurance in the food chain. Meeting these requirements is a significant challenge for entering global value chains of food products.

The organization of commodity chains has also changed significantly. A few decades ago, the dominance of large companies in world commodity economy was mostly in terms of their marketing initiatives in international markets. Now, increasingly, these companies are also influencing what is produced and how. Thus, at the international level, there is a continuing concentration of trade and vertical integration of large firms. At the level of commodity-exporting developing countries, trading networks (both for domestic and export markets) are being appropriated by foreign firms. In the retail markets of developed countries, the most important change has been the growth of supermarkets, which has led to the near elimination of independent traders and increased the importance of brand name.

Under these evolving production and marketing systems and considering the large number of small farmers in agricultural production, the constraints that characterize Indian exports fall in three broad areas: (i) access to information; (ii) access to finance; and (iii) access to marketing and trade networks. This is under the assumption that agricultural trade liberalization will progress subsequent to the ongoing negotiations.

India has also the potential to develop niche markets especially in fresh fruits & vegetables. The approach could be either in developing producer-driven commodity chains or buyer – driven chains. However, the challenge is that of the effective governance of food chains. Especially in cases where the food retailers in developed countries are sourcing from developing countries, it is important to close the gap between producer capabilities and the requirements of the export markets. Secondly, considering that food products have distinct marketing channels, it is important to monitor the coordination between the producer and retailer, especially when the product quality is not standardized.

The above approaches for revamping the food export systems, has clear implications for Foreign Direct Investment (FDI) both in developing production systems and retailing. In this regard, it is important to define the permissible role of FDI in developing these networks. Although the various programmes/schemes for production enhancement, infrastructure development and export promotion have highlighted the underlying issues, the possible role of FDI in these areas has not been clearly defined.

The challenges for broadening the export base of Indian food products, thus, briefly, are:

(i) developing national food standards and a strong certification system which is harmonized with the internationally accepted CODEX or HACCP;

(ii) negotiating for equivalence agreements with major trading partners;

(iii) providing appropriate support (regulatory and incentive systems) for the efficient integration of production and marketing systems based on well defined government – private sector partnership; and

(iv) developing product – wise export promotion strategy through market studies, support for upgrading existing export capabilities and developing effective governance for monitoring and management of food value chains.

ii) Measures for Fair Protection and Promotion of Indian Food Processing
Sector

From the analysis of agri import trends, it is observed that besides the traditional (general) imports, new items entered into India’s agri import basket due to trade liberalization drive and the gradual phasing out of QRs. Considering the fact that higher imports could have detrimental effects on the production base of the country and thereby affect rural livelihood, the selection of import sensitive items was done on the basis of average annual growth rates.

A closer examination of imports indicated that inspite of a lower flexibility in terms of tariff protection, the threat of import growth is only for a few products. Import threat is high for Food preparations, Edible oils, Spices, Fruits and vegetables. Further if QRs are withdrawn, the import threat was particularly high for Spices, Oilseeds, Cereal preparation and Edible Oils.

Further selection was done on the basis of comparison between bound rates and applied rates. The identified import sensitive products were ranked on the basis of their livelihood and food security dimensions including parameters like average import growth rate, percentage share of area under cultivation under gross cropped area in major producing state and percentage population dependent on the crop. Wheat, Soybean oil and Milk Powder were identified as most sensitive imports followed by Fruits (chiefly Apples and Grapes), Maize, Cheese, Vegetables an Orange juice.

The study reveal that AoA has opened a new horizon of opportunities for increased access to imports from developed markets into India. The removal of QRs would further endanger the livelihood systems of the poor farmers, as there is a possibility of further import surge. The extent of domestic support to farming families is far below even the WTO-prescribed ceiling. There are also no export subsidies in India. India has specific duty only for a few items, and for items with NTBs, there are no specific duties. As a result of this, Indian agriculture continues to need protection and support. Hence immediate action to protect domestic industry lies in : (i) Adjustment of Tariffs within bound levels; (ii) Special Agricultural Safeguard mechanism (SSM) and (iii) Non Tariff Measures.

Further, creation of infrastructure, watershed development, increased availability of subsidized inputs and greater thrust on research, extension and risk management is required to compete with imports. Better integration across rural markets is necessary for price signals from abroad to be fully effective in generating comparative advantages. A danger posed by weak integration across rural markets is that the price depressing effects of potential imports can be quicker and affect more regions and farmers.

Hence, India’s initial negotiating proposals should seek to protect the interest of Indian agriculture especially on its concerns for food and livelihood security, demanding more flexibility for protection from surge in imports and by conceding minimal market access. These negotiating proposals with matching efforts of protection, support and market-friendly domestic policy regime will take Indian farming to higher levels of growth and prosperity. 

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Handicrafts Portal for the Office of Development Commissioner - (Mr.O.P.Wali, Mr. Bimal Panda, Dr. Anshu Saxena and Mr. Tarun Kumar Sharma)

The Handicraft Portal Project was taken up with the following objectives:

• Maintenance of the portal developed by IIT Delhi

• E-commerce strategy and execution

• Identify Target Cluster

• More focus on artisans

• Involve Marketing Centres of Handicrafts Department for artisan registration

• Promotion of the Portal

IIFT looked into both Maintenance and Management of the portal. Maintenance was an ongoing activity necessary to keep the portal up to date and functional. Management of portal referred to following activities:

 Launch of portal in October 2004v

 Populate the portal member database with stakeholders’ information.v

 Stakeholders Data Capturing and preparing comprehensive cluster databasev

 Portal Promotionv

The portal is a Web enabled repository of information and data on handicraft sector. The objectives of portal are two fold, Information dissemination and Providing Platform where stakeholders can interact with other stakeholders to develop business. .

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Review of Financial Control System at Export Inspection Council (Prof. K. Rangarajan)

The Terms of Reference of the Study comprised the following:

1. To identify the weak links in the existing financial control system in terms of
control on inflow and outflow of funds;

2. To review the current reporting system and its effectiveness in actionable
terms;

3. To find out the current practices in the management of investible funds;

4. To analyse the current status of financial flows between EIC and EIAs; and

5. To suggest a suitable financial control system for the organization.

The survey shows that the major sources of revenue for EIAs are inspection fees and fees generated through GSP forms sale and certification. Among the EIAs, the major contribution to the tune of around 30% comes from EIA Chennai, followed by Delhi, Mumbai, Cochin and Calcutta respectively. The major contribution of all EIAs, except Delhi, is derived from inspection fees. Also, more than 90% of the inspection fees of Chennai and Mumbai are derived from fish and fisheries products, whereas it is more than 80% in case of Cochin and Calcutta. Out of the total expenditure of all EIAs, major share is attributed to EIA Calcutta followed by Cochin, Delhi, Mumbai and Chennai respectively. The expenditure statement of EIAs shows that major share of total expenditure to the tune of 85% is incurred in the form of establishment expenditure, of which more than 80% of the expenditure is accounted by pay, DA and other allowances. Cash Management is very crucial in EIC/EIAs. The financial statements show that the cash/near-cash balances are very high, indicating loss of interest. Though the Council is funded by the Government, EIC needs to tune the financial control system of EIAs not only for effective utilization of the financial resources but also to ensure proper performance evaluation of the functioning of EIAs. The revenue management at EIC at present is more centralized. It is recommended that it should be decentralised to facilitate free functioning of EIAs with the sound centralized control system. One of the important principles of financial control system in multi-locational organization is uniformity in the heads of reported items which is missing in the case of EIC/EIAs.

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Study of Textiles and Clothing Exports of India to EU with Special Reference to EU Enlargement and ASEAN Competition in the EU Market - (Prof. K. Rangarajan)

The Study was conducted against the backdrop of the removal of MFA removal w.e.f 1st January 2005. The Multi-Fibre Arrangement (MFA) and other earlier agreements through quantitative restrictions had governed the international trade in textiles and clothing for more than three decades. The Study focused on the strategies for India in facing the challenges due to full MFA phase-out.

Analysis of the cost structure of the textiles sector in India showed that the power cost and steam cost of India is one of the highest in the region. Similarly, the labour cost, though misconceived as a competitive advantage factor, is higher than that of Bangladesh, Indonesia, Sri Lanka and Pakistan. However, the labour cost of China is more than that of India. The finance cost represented by nominal rate of interest and technology up-gradation are less than that of the other competitors except China.

The intermediate inputs also have high import content as opposed to countries like Vietnam, Morocco, Italy and Czech Republic. The increased import content in the value chain adds to the vulnerability of the sector in the post MFA regime. However, the industry scores high in terms of backward linkages as most of the supply chain activities in the clothing sector is located within the country. Yet, in order to maintain competitiveness, it may have to strive for linkages outside the country also, especially in non-cotton requirements. Besides, lean retailing has pushed some of the work and related cost up the value chain to manufacturers. As a response, manufacturers can either absorb the cost and lower margins, reduce cost by improving productivity, thereby shortening lead time and possibly are relocating to lower cost countries, are passed the costs further up the supply chain to the textile sector. In the post MFA regime, sustainable cost competitiveness may be achieved more through increasing the labour productivity and leveraging on the resources for supply chain and value chain efficiency.

The competitiveness of India has been compared in the Study in terms of its labour productivity, supply chain & value chain dependence, technology capabilities etc. The Indian T&C industry experiences low labor productivity, which is one of the major barriers for enhancing competitiveness in the down-stream activities of the value chain. The productivity level of the industry in major products of garment segment is compared here with some of the competitors in Asia. It has been measured in terms of number of pieces produced per machine per day in India vis-à-vis its competitors. As per the data, India’s productivity in the value added products like Trousers and Ladies dresses are not even half of the productivity of competitors like Hong-Kong, Taiwan and Thailand. Even an in Gents shirt, which is considered to be one of important items of India’s garment export basket, the productivity was the lowest at 9.1 pieces per machine per day. Though it is argued that due to flexibility of production line, Indian manufacturers could not achieve specialization, the productivity gaps were very high and could not be leveraged by the labor cost or the net tariff deferential available to India.

In the high quality fashion end of the market and in the mass consumer market, flexibility is the important consideration for value chain effectiveness. With the phase out of quota system, the industry needs to gear up to meet this flexibility to tap the opportunities created in the export markets.

Further, key issues for developing countries like India are the level of market access under the preferential schemes like GSP and the extent of cost of compliance with the rules of origin. On a relative basis, the Indian T&C industry is globally more competitive than other industries in the manufacturing sector. Consistency in supplies, flexibility in value chain and social and environmental performance are going to be the important ingredients of any successful strategy for the India in the post-MFA T&C exports. Price, quality and responsiveness will be only essential ingredients.

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A Study on WTO-TBT Notifications Issued during 2001-2003 in Select Sectors - (Mr. Rajeshwar Dayal, Mr. Abhijit Mukhopadhyay)

The Study was conducted for the Department of Scientific and Industrial Research (DSIR) against the backdrop of the provisions of the GATT 1947 which contained only a general reference to technical regulations and standards. Subsequently a working group, set up to evaluate the impact of non-tariff barriers in international trade, concluded that technical barriers were the largest category of non-tariff measures faced by the exporters. After years of negotiations at the end of Tokyo round in 1979, 32 GATT contracting parties signed the plurilateral agreement on technical barriers to trade. The Standards Code, as the agreement was called, laid down the rules for preparation, adoption and application of technical regulations, standards and conformity assessment procedures. The new WTO agreement on technical barriers to trade (TBT) agreement has strengthened and clarified the provisions of the Tokyo round Standard Code.

The TBT agreement, negotiated during the Uruguay round with the objective of improving market access to ensure that non tariff barriers in the form of technical standards become non-operative, is now an integral part of the WTO agreement. The paradox is that the TBT itself is now perceived to be a major barrier for exports from developing countries.

The Study shows that countries have introduced the TBT regulations to meet a diverse set of objectives. The highest number of technical regulations and standards have been adopted with a view to protecting human safety or health. It is seen from the text of various notifications that these are really meant for protection of human health or safety, adoption of new domestic laws and technology, harmonization, consumer protection, consumer information and labeling. Besides, there have been 723 notifications related to labeling alone during the period January 1995 – August 2002, notified by 54 member countries. The products covered include all packaged foods, electrical and hydrocarbon fuelled appliances, consumer packaging and labeling, motor vehicles, electrical washer driers, refrigeration appliances, cigarette packets and alcoholic beverage bottles, chemical substances, textile products etc.

Developing countries face formidable challenges posed by the Agreement on TBT. On the one hand, they face the daunting task of getting effective market access in the major markets given the plethora of the regulations that have been imposed by their developed countries counterparts. On the other hand, they have found that implementing and enforcing international standards may require technical and financial resources (to bring relevant issues to Dispute Settlement) beyond their capabilities. The TBT Agreement is expected to obviate these problems to some extent by easing the impact of certain provisions whose full application would not be compatible with developing country members’ development, financial and trade needs. Moreover, in view of their particular technological and socio-economic conditions, developing country members may adopt technical regulations; standards or test methods aimed at preserving indigenous technologies and production methods and processes compatible with their development needs. Finally, developing country members may request international standardizing bodies to examine the possibility of, and if practicable, prepare international standards for products of special trade interest to them..

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Exportable R&D Services from CSIR System (Shri Rajeshwar Dayal, Ms. Jasmine Acharya)

The study “Exportable R&D services from CSIR System” was undertaken with the following objectives:

I. To find out from the survey of 38 laboratories of CSIR, their potential for
entering into the export market of R&D services;

II. To examine the areas of expertise in which CSIR laboratories have given or are capable to providing R&D services; and

III. To find out the constraints being faced by CSIR Laboratories in exporting R&D Services and their views to overcome those

To fulfill the objectives a conceptual model was developed for CSIR Labs so as to compare them with this ideal model and thus observe the discrepancies.

CSIR is one of the main organizations in India engaged in the promotion and development of science and technology. At present, CSIR has a network of 38 laboratories / institutes and 80 extension / field / regional / polytechnology transfer centres spread all over India to undertake R&D in several disciplines. The areas of activity vary from molecular biology to leather, from seismicity to computer modeling, from aerospace to ocean sciences, from glass to steel, from micro-electronics to a range of test facilities and so on. The CSIR’s role in the overall industrial development of the country, over the last six decades of its existence, has been in terms of providing technical know-how for upgrading existing technologies and generating fresh technologies in tune with the growing needs of the Indian industry.

CSIR laboratories have responded to the changes in the industrial, economic and trade policies introduced by the Government to successfully integrate the Indian economy in the global scene. Successful technology transfers have been achieved in various fields like drugs, agro-chemicals, petroleum refining, wood substitutes, waterproofing compounds and effluent treatment.

Patents

CSIR files highest number of patents not only in India but also abroad by any Indian entity. During 2001 -02, CSIR filed 410 patents with in the country and were granted probably the highest number of 341 patents. During the same time CSIR filed 580 patents abroad and 86 patents were granted to it. The utilization of patents of CSIR is more than 7%, which is much higher as compared to the global average of less than 5%. Some of the CSIR laboratories have also joined hands with several multinationals and globally renowned business houses like Parke Davis, Du Pont of America and Mitsui of Japan. In the domestic market, CSIR laboratories work closely with Indian industry and provide comprehensive solutions to their problems, technology packages and turnkey plantjs.

Manpower

CSIR possesses a large reservoir of R&D manpower numbering 13,338 scientists of finest caliber in the country who have demonstrated time and again their ability and skills in meeting challenges for the development of the country and have played a vital role in not merely making India self-reliant, but also a net exporter in the fields of drugs and pharmaceuticals, food, energy, housing, environment and rural development sectors.

Expertise

Some of the CSIR laboratories, over the years, have acquired expertise and recognition for providing a range of R&D services which meet international standards. A few of the significant ones are coal resource surveys; maintaining databases in the areas of drugs, toxicology, leather, food, chemicals etc; primary standards and calibration; environmental impact assessment; product evaluation etc. Specialised major facilities include wind tunnel, acoustic test facility and tower testing facilities among others. CSIR also has collaborative agreements with 35 agencies in 29 countries, including 13 developed and 16 developing countries.

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Article 39.3 of the TRIPS Agreement: Its Genesis and the Present Context (Dr. Biswajit Dhar)

Article 39.3 of the TRIPS Agreement has assumed considerable significance during the past few years since the associations of pharmaceutical majors in the United States and Europe made it a major plank of their campaign for strengthening the patent laws in favour of the patentee the world over. This Article provides that WTO Members would have to provide for protection of undisclosed test or other data while giving approval for the marketing of pharmaceutical or agricultural chemical products, which utilize new chemical entities. The study provided a genesis of Article 39.3 of the TRIPS Agreement, the proposals that were submitted during the Uruguay Round negotiations and the views expressed therein. It also examined the national laws of identified countries in respect of data exclusivity and providing interpretation and commentary on their consistency with Article 39.3 of the TRIPS Agreement.

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Compulsory Licensing Provisions: A Study of Select Country Experiences (Dr. Biswajit Dhar)

An examination of select country experiences was considered beneficial for developing countries like India as they try to give effect to their commitments under the TRIPS Agreement, including those that arise from the implementation of the Doha Declaration on TRIPS Agreement and Public Health. The study also examined the Indian experience of implementing the compulsory licensing system. The following broad issues were examined in the study:

A comparative analysis of compulsory licensing provisions in the regimes of§ select countries

Working of compulsory licensing system in select countries§

Determination of the terms of license , in particular the compensation paid§ to the patentee for the use of the patent.

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Implementation of the Agreement on Agriculture: A Review (Dr. Biswajit Dhar/Ms. Poornima Verma)

The study analysed the problems that have accompanied implementation of the WTO Agreement on Agriculture (AoA). The basic objective of AoA was to reduce and eventually eliminate the distortions in the markets for agricultural commodities. For realizing this objective, the AoA introduced two sets of disciplines on the WTO members. Countries acceding to the WTO were expected to reduce the use of two forms of subsidies, viz. domestic support and export subsidies, over a period of time. However, in the period since the AoA has been implemented, there is little evidence to show that the AoA has had any meaningful influence on the markets. The major players in the global agricultural markets have continued to give large doses of subsidies to their domestic agricultural sectors. If anything has changed during the implementation period of the AoA, it has been the degree to which these countries have targeted the use of subsidies.

Data on implementation of AoA in respect of major food crops which this study has provided have established the fact that several WTO members were using subsidies to strengthen their position with the objective of gaining enhanced access in the markets that were opening up. As a result of this targeting, the prices of agricultural commodities included in this study were found to have declined quite steeply, quite contrary to the expectations prior to the implementation of the AoA. Countries like India had expected to gain from the implementation of the AoA since the withdrawal of subsidies by the major players in the global agricultural market was to bring about rise in prices of agricultural commodities which would have benefited the low cost producers in the developing world.

The study highlighted the point that the two largest players in the market for agricultural commodities, viz. the US and EU, have been granting very high doses of subsidies. The US, in particular, has been increasing its subsidies to the farm sector in the second half of the 1990s by taking advantage of the flexibilities that are available in the discipline introduced by the AoA.

Recent policy initiatives taken by the US, particularly in the form of the new Farm Act, reinforces the past trends in the grant of subsidies. The Farm Security and Rural Investment Act of 2002 introduces new forms of farm support, besides strengthening the existing forms, including the de-coupled payments.

The latest in the series of reforms of the CAP undertaken by the EU emphasizes on the de-coupling of farm support, without promising any significant reduction in the levels of subsidies in the near future. The EU has, thus, taken a step in the direction towards aligning its farm policies with that of the US.

These developments which have been discussed in considerable detail in the study could have serious implications for the already distorted markets for agricultural commodities.

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Removal of MFN Exemptions in Services (Mr. Shailandra Kumar/Dr. Biswajit Dhar)

During Uruguay Round, a number of developed countries had taken MFN Exemptions, particularly in those services sector which are of vital export interest to India. It is in our interest that these exemptions are removed as early as possible during the ongoing services negotiations. In order to achieve that a detailed project study was undertaken. The aim was to consider the existing MFN exemptions in depth with a view to analysing their implications for India.

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Analysis and Preparation of Initial Offers in Services (Mr. Shailandra Kumar/Dr. Biswajit Dhar)

As per the mandate of Doha Ministerial Declaration, the member countries had to submit their initial offers as part of on going services negotiations. This project had two components: (i) examination of the offers submitted by WTO Members, and (ii) preparation of India’s offers.

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Implications of the WTO commitments on the Indian automobile industry (Dr. Murali Kallummal /Dr. Biswajit Dhar)

The issues that are particularly important in the context of the negotiations that are being conducted in the WTO as a part of the Doha Development Agenda include rules of origin and tariffs and other non-tariff barriers. This project involved preparing short notes/briefing papers, which were aimed at providing options that the automobile industry could consider while preparing itself for the WTO negotiations. The notes/briefing papers were prepared with inputs from the SIAM Secretariat and other industry players.

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Implementation of the Doha Ministerial Declaration on Agreement on TRIPS and Public Health - (Dr. Biswajit Dhar)

Access to medicines has been a major concern in developing countries as these countries have been engaged in implementing their commitments taken under the WTO Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS). These issues have come into sharp focus since the adoption of the Doha Declaration on the TRIPS Agreement and Public Health. The singular contribution made by the Doha Declaration on Public Health is that it opens up a range of options that the developing countries can explore for fulfilling their need for access to medicines taking into consideration their commitments under the Agreement on TRIPS. A study was undertaken to identify the options that the developing countries have for effectively implementing the Doha Declaration on Public Health and thus ensure access to medicines in the emerging regime of intellectual property protection.

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Biotechnology Patenting: The Way Forward (Dr. Biswajit Dhar)

The extending of patent protection to life forms raises several issues, which need to be analysed from India’s perspective. These issues can be divided into two sets. The first relates to the definitional aspects of micro-organisms. At the TRIPS Council, India, along with several other developing countries, has taken the position that the scope of the term ‘micro-organism’ should be left to the sovereign discretion of countries. The second issue that assumes importance in this context is whether or not there is a case for extending patentable subject matter to cover higher forms of life. This dealt with the following issues:

(i) The global trends in patenting of living organisms: This discussion would cover the major industrialised countries and the relatively advanced developing countries

(ii) The experience of defining micro-organisms in a select set of countries

The subsequent sections are a list of Research Studies in progress, Research Studies proposed to be initiated to during October 2005- March 2006 and IIFT Publications between May-September 2005.

 Integrated Trade & Tariff data-base

 a)      Analysis of Surge in Imports of Dairy Products, Fresh Fruits and Processed Fruits by India (Mr. T.P. Ghosh, Ms. Tamanna Chaturvedi)

 Surge in imports of dairy products, fresh fruits and processed fruits was analysed in detail. A methodology of higher growth rate of imports of tariff lines at 6-digit level of HS Code than the growth rate of imports of corresponding 2-digit level was used to identify tariff lines experiencing import surge. A total of 50 tariff lines at 6-digit level (9 for dairy products, 30 for fresh fruits and 11 for processed fruits) were found to exhibit import surge during 1996-2003. However, most of these items accounted for a very small amount of imports even in 2003. There were only 13 tariff lines at 6-digit level (3 for dairy products, 8 for fresh fruits and 2 for processed fruits) that recorded an import of US $ 1 million or more in 2003. The associations of factors like removal of QR, preferential trading arrangement, increase in export of the same item in similar or value-added form, etc. were analyzed as possible factors behind import surge.

 b)      SPS/TBT Type of Technical Barriers to Trade Faced by Indian Food Product  Exporters – (Ms. Tamanna Chaturvedi and Shri T.P. Ghosh)

 The process of globalization and trade liberalization has increased access of the Indian food producers to the international markets, but it also presents new challenges in terms of quality and safety of the domestic and exported food. For the exporters of most of the food products, the challenges of international competitiveness have moved well beyond price and basic quality to food safety and health concerns. As a result, sanitary and phytosanitary (SPS) standards adopted by importing countries have become increasingly more stringent over the last few years. Under WTO framework, the SPS agreement recognizes that the government has the right to adopt sanitary and phytosanitary measures but stipulates that they should be applied only to the extent necessary to achieve the necessary level of protection. In this context, guidelines of the Codex Alimentarius are accepted as benchmark standards under the SPS agreement. Although the SPS standards by themselves may not amount to a trade barrier, their adoption in practice can be used as a trade barrier. Hence, the chief concern of the developing countries including India about SPS requirements is that they will impede their access to the developed country markets.

 In this context a study on SPS/TBT type of technical barriers to trade faced by Indian Food Products exporters and its justification in terms of science-based standards for (i) fresh fruits (ii) processed fruits including juices and syrups and (iii) marine products was done by IIFT for Planning Commission. The study analyses different regulatory standards in major export destinations, and points out the challenges posed by rising private and public SPS standards in major exporting destinations for India. The scientific justification to some extent is taken into consideration through comparative analysis of identified country standards with CODEX.

 The study finds that there is a widespread use of SPS/TBT in both developed & developing countries. For fruits and marine products, the NTM coverage is 100%. There are numerous instances of a single product facing multiple SPS standards in the same market (e.g. USA & Japan for fish and Australia, Japan, USA, Mexico & Singapore for fruits). The number of food safety problems in marine sector is higher than for fruits. Both number & complexity of EU public regulations for food safety has increased significantly.

 Analysis of SPS notification reveals that most new measures differ from international standards. Most new measures cover areas where no international standard exists. Significant differences exist among countries on maximum residue limits (MRLs), sampling & testing methods used to access conformity, and operative standards. High cost of certification and requirement of certificates from agencies in different markets are factors that marginalize the smaller growers of developing countries.

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 Export Development Plans for Tripura (Prof.  R.M. Joshi )

 Tripura is located in the southwest corner of the north-eastern region of India.  Although it is the smallest state in terms of area but it is the second largest in terms of population in the north eastern region. It shares about 856 km. border with Bangladesh.  The state has abundant horticultural and agricultural resources besides significant reserves of natural gas with high methane content. However, the resource potential of the state is yet to be fully harnessed and the industrial development is still in a primitive stage. 

 As Tripura shares about 85% of its total border length with Bangladesh, border trade through Bangladesh gains strategic significance not only for development of exports but also for state’s overall economic growth.  Besides, access to transit routes through Bangladesh to mainland and use of port facilities for export and import shipment has significant implications for trade promotion from Tripura. 

 Out of India’s total exports worth US$ 52,856 million in 2003, China accounted for US$ 1,981 million (3.7%), Bangladesh for  US$ 1,179 million (2.23%), Myanmar for US$ 75 million (0.14%), and Bhutan for US$ 39 million (0.07%).Thus, countries bordering to North East accounted for about 6.19 percent of India’s total exports. India’s exports to the countries bordering to North East has gone through a significant change over the last 5 years.  Among the countries bordering North East, Bangladesh accounted for 68% of exports from India in 1999 decline to 36% in 2003 whereas exports to China that accounted for 29% in 1999 doubled to 61% in 2003.  However, the share of Myanmar and Bhutan remain unchanged to 2% and 1% respectively. 

India’s exports to Bangladesh had shown a fluctuating trend but grown from US$ 334 million 1993 to US$ 1,179 million in 2003 exhibiting a CAGR of 33.44% whereas import from Bangladesh increased from US$ 11.44 million in 1993 to US$ 62.21million in 2003.  The major items exported from India to Bangladesh in 2003 include engineering goods, textiles, non-basmati rice, wheat, other manufactured goods, chemicals and related products, sugar & molasses, coal, oil meals, pulses and fresh fruits whereas the major items imported from Bangladesh to India include jute raw, inorganic chemicals, readymade garments, fruits & nuts, textile yarn, fabrics, leather, woollen & cotton rags, made-up textile articles, cotton yarn & fabrics, etc.

The export competitiveness analysis indicates that India is the largest supplier to Bangladesh for rice with 98.34% share, wheat with 74.06% share, coal with 100% share, other sugars with 81% share, chassis fitted with engines with 70% share, oil cake with 99% share, lentils (mosur) with 28.5% share, cotton yarn with 96% share, new pneumatic tyres with 60% share, motor cycles (including mopeds) with 70% share, reactive dyes with 35% share, organic compounds (others) with 98% share, cane sugar with 81% share, pebbles, gravel, broken or crushed stones with 98% share, disodium carbonate with 47.9% share.

 The study attempts to identify the weak links related to export marketing which need to be stressed for evolving a export marketing strategy.  The action points proposed in the study include development of institutional mechanism for export promotion, development of export marketing skills, creation of website and establishment of integrated international marketing information system, establishment of cold storage and refrigerator transport facilities, creating permanent display information centre at Agartala, development of virtual trade fair, providing incentives for export promotion, creating a WTO cell, formulating an integrated strategy for promoting exports oriented production,  development of infrastructure facilities, at LCS and establishment of border haats to curb unofficial trade. 

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Research Studies Completed During 2006-2007

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Seminars/Workshops During 2006-07

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