Projects

Ernst & Young

Status – On Going

Consultancy to Ernst & Young PMU Trade Intelligence and Analytics Wing (TIAW) for a Project on Trade Engagement with the Department of Commerce, Ministry of Commerce and Industry.

Association of Man-Made Fibre Industry of India

Status – On Going

Project on Impact of Tariffs on Competitiveness of the Viscose Staple Fibre (VSF) Industry in Competing Investment Destinations/Selected Economies (China, India, Indonesia, any other identified).

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Commonwealth Study on Impact of India’s Slowdown on Commonwealth Member Countries (CWM)

Status – Completed

This study analyses the effects on CWM of a slowdown of the Indian economy. The study distinguishes between the slowdown in the Indian economy during 2019-20 and the impact of Covid-19 from early 2020 onwards. Given the uncertainty of the situation in terms of the GDP growth rate and the period of the impact, the study examines alternative possibilities of a range of GDP growth rates for India in 2020-21 and 2021-22 (see details below). It differentiates between the effects on the Commonwealth (CW) as a whole and developed countries among the CWM, developing countries among the CWM, least developed countries (LDCs) among the CWM and Sub-Saharan African (SSA) countries among the CWM.

The study uses a general equilibrium model from the Global trade analysis program (GTAP). It also uses the database from this program for performing the scenario analysis. For services as consolidated data for the latest years was not available the study uses the estimates in GTAP for 2019. Two kinds of GTAP, i.e. comparative static and dynamic models, have been used.
Executive Summary

Study on Domestic Policy Constraints face by Indian Exporters of Selected Products

Status – Completed

Two separate Reports were prepared for the EXIM Bank of India, one to identify the obstacles created by India’s domestic policies for Indian exports, and another on policies for creating export hubs in India. This large study focused on extensive discussions with a range of stakeholders, with a particular focus on textiles, apparel, gems and jewelry, pharmaceuticals, automotive products, and electronics. These stakeholders included CII (particularly with their main staff looking after ease of doing business and international trade), different parts of the Government (at the Centre, Commerce – both trade and infrastructure, Industry, Agriculture, Electronics, Chemicals and Pharmaceuticals, Revenue, Textiles, as well as officials in several States), Export Promotion Councils, and senior managers/exporters. The discussions were based on a pre-specified conceptual framework to identify priority areas for intervention and those which would be possible to be accomplished within a relatively short period. The enquiry was based questionnaire, which was refined and revised based on feedback from exporters. The project involved visits to major key places across the country, including Head Offices and export hubs/clusters in Andhra Pradesh, Haryana, Karnataka, Kerala, Punjab, Rajasthan, Tamil Nadu, UP, Delhi and Mumbai. In addition, the experts visited Bangladesh, China and Vietnam to better understand the policies these countries used to promote exports in the sectors selected for the study.

The work on this project was a culmination of the work which the IKDHVAJ team (or members of the team) had been doing since mid-2018 on overlapping issues in different context, e.g. consultation with CII membership on FTA strategy for India, policies to address the constraints faced by Indian exports in markets abroad, as members of the High Level Advisory Group on international trade set up by the Minister of Commerce and Industry of India.
Executive Summary

AEPC Project

Status – Completed

Replacing W.T.O Non-Compliant Subsidies
In May of 2018, the Apparel Export Promotion Council awarded IKDHVAJ a contract to study apparels subsidy schemes that are not compliant with WTO provisions and were recently challenged by the U.S. The aim of this study was to develop WTO compliant support mechanisms for apparel exporters, which will also enhance their competitiveness. During the course of this study, our researchers spoke to top policy makers in apparels ministries, including Smt. Smriti Irani, the Minister of Textiles, Secretary of SSIs Textiles and Commerce, to understand the origin and reasons for subsidies provided to textile industries by the government of India. With the help of our interviews, and raw quantitative data, we were able to model cumulative general equilibrium solutions, identify the subsidies that are WTO compliant as well as make the industry more competitive.
Executive Summary

Texprocil Project

Status – Completed

Replacing W.T.O non-compliant subsisides in the Textiles sector The cotton Textiles and Promotion Council awarded IKHDVAJ a contract to study textiles subsidies not compliant with W.T.O provisions, recently challenged by the United States Trade Representative (USTR). The aim of the study was to develop W.T.O compliant subsidies that will also enhance global competitiveness of textile producers. During the course of the study, researchers spoke to top policy makers, and conducted a literature survey of USTR complaints filed to understand the role of specific WTO non-compliant subsidies in the textile industry. With the help of primary and secondary data, and econometric tools, we were able to determine the cost reduction achieved by the subsidies in the textiles sector, identify WTO compliant subsidies, and a way of upscaling them to help enhance competitiveness. We also conducted interviews with top policy makers to formulate a strategy on implementing these newly identified subsidies.
Executive Summary

Contract with Export Import Bank of Indian (EXIM)

Status – Completed

On September 14th 2018, the Export Import Bank of India awarded IKHDVAJ a contract to examine the impact of Non Tariff Measures on India’s exports. The aim of the study is to identify specific non-tariff measures and their impact on specific exporting sectors, specifically in merchandise trade. The report written from the study should analyse the impact of NTMs across major sectors and markets in a way that can be easily translated in bilateral, multilateral, and regional for a regarding merchandise trade. IKHDVAJ is expected to suggest market level and sector level strategies to combat the restriction imposed by NTMs and increase the competitiveness of merchandise exports.
Executive Summary

India Cellular & Electronic Association (ICEA)

Status – Completed

Replacing MEIS by WTO-Consistent Support Schemes To Implement the National Policy on Electronics 2019

The National Policy on Electronics 2019 (NPE 2019) provides the context and background for policies, schemes and instruments for the electronics sector. The target of NPE 2019 is to produce 1 billion mobile handsets by 2025, valued at USD 190 billion, including 600 million mobile handsets valued at USD 110 billion for export. The objective of NPE 2019 is to create an ecosystem for globally competitive Electronics System Design and Manufacturing (ESDM), Promote domestic manufacturing and export in the entire value-chain of ESDM, provide special package of incentives for mega projects and provide incentives and support for manufacturing of core electronic components.
This project will suggest schemes and instruments to help implement the NPE 2019 objectives for the Mobile sector. To achieve these objectives the project should:

1.Examine the schemes and instruments used by leading competing economies (China, Vietnam and Taiwan) to establish a large industry base and exports of mobile handsets and other parts of the supply chain and the eco-system.

2.Assess the support and facilitation policies relevant for India, taking account of the key features of the operational conditions for the industry within India and existing obstacles that limit the achievement of the objectives of NPE 2019.

3.Suggest a WTO-consistent incentive scheme to replace the Merchandise Exports from India Scheme (MEIS) which is the subject of dispute settlement process at WTO

4.Examine a full range of measures by way of trade facilitation, single window clearance, and any other facilitation policy.

5.Examine continuation and improvement of Modified Special Incentive Package Scheme (M-SIPS).

Executive Summary

Contract with Export Inspection Council (EIC)

Study on Unified Authority for agriculture exports and imports

Objective
Developing a Consultation Paper on a Unified Agency for Agriculture Export and Import. The aim is to establish a unified agency empowered to frame, regulate and implement policies related to both agriculture export and import. The agency should be able to influence agriculture production policies for promoting exports.

Background
Foreign buyers work discretely with different agencies in India to maximize their market access efforts. Market access for agriculture products is provided by Indian agencies without due consideration of Indian interest including India’s own market access request, and non-tariff barriers in those markets. Indian exporters in order to comply with importing country regulations incur additional transaction cost. There may be a need for a unified agency for export and import which can ensure certification for domestic and global best practices and in that process significantly reduce the transaction costs. Examples of such initiatives globally may be evaluated for their adaptation to the Indian context.

Examples
A number of regulatory agencies worldwide regulate Agriculture production and trade in their respective countries viz. FSVPS (Russia), USDA & USFDA (USA), CIFIA (Canada), DG SANTE (EU). Best practices in each arrangement may be evaluated for implementation in “Indian context and the feasibility of adopting such unified approach may be examined.

Analysis required
An analysis of the scope of the operation of the above-mentioned agencies, critical evaluation of their functioning, possibility of integration of their jurisdiction with a proposed unified agency, modifications required in the administrative/operational structure etc. The structure adopted by GACC China in this regard may be examined.

Details of the Consultation paper for a Unified Agency
A unified export and import inspection council may need to be established under a specific legal framework. A model scenario may be prescribed to achieve the objective of establishing a unified agency. Stakeholder consultation should be carried out before determining the likely contours of such an agency. The Consultation paper should be comprehensive, self-explanatory and outcome oriented, therefore, any requirement which is not explicitly mentioned above but important for such unified agency, should be considered under the scope of this assignment. The Consultation Paper should be able to provide inputs necessary for decision making process and take forward the proposal of unified authority if needed.

CONTRACT WITH MINISTRY OF ECONOMIC AFFAIRS, ROYAL GOVERNMENT OF BHUTAN

Drafting of E-commerce Policy Framework of Bhutan

The overall objective of the project is to develop an appropriate national e-commerce policy framework which is up-to-date, compatible and facilitates all e-commerce initiatives including the government led e-Payment system for Bhutan. The policy will focus on providing equal opportunities for stakeholders in different locations and areas of the society to take part in the process. It also aims to support policy and lawmakers in understanding the complexities of the legal aspects of ICTs and in preparing harmonized legal frameworks that facilitate the conduct of e-commerce and e-government. The provisions of the policy are intended to comply with international best practices and ensure that emerging practice in commercial transactions are uniform and of acceptable standard.

The expected outcomes of the project are:

1.A National e-commerce policy for Bhutan, and

2.Capacities of the policy makers and law enforcement officials involved in preparation and implementation of e-commerce policy and regulatory/legislative framework/strategies built.

3.Development of e-commerce in the country in partnership with the private sector including global companies.

The assignment shall, among others, include the following;

1.Study and review of all the existing policy documents and plans

2.Conduct ground assessment and prepare an overall e-commerce report

3.Legal framework and enforcement mechanism in Bhutan for e-commerce

4.Regional/International Trade

5.Institutional Structure for e-commerce

6.Taxation

7.Other issues and needs

8.E-commerce Policy of Bhutan