Impact of the General Agreement On Trade In Services (GATS) on Foreign Direct Investment (FDI) in Services in India
Abstract:The four key items on the agenda for the Hong Kong ministerial meetings in 2005 were services, agriculture, Non-Agricultural Market Access (NAMA), and differential treatment for developing countries. The draft of the Hong Kong declaration agreed on 18 December 2005 speaks about further liberalization in Mode 3; that is, the ‘commercial presence’ category of service providers. This will usher in increased Foreign Direct Investment (FDI) in a vast gamut of service sectors, such as banking, insurance, construction, engineering, tourism, education, telecommunication, and computer-related and professional services. It also provides for removal or substantial reduction of economic needs tests, such as relaxing the norm that local employment should be generated. India should utilize the opportunity the liberalization has provided, in attracting the FDI in services sectors to the optimum, and maintain regulation aimed at economic growth.
Document Type: Research Article
Publication date: January 1, 2012