What role did the WTO membership (1995) play in India's post-reform globalization strategy?
Show answer & explanation
Correct answer: B
Explanation
Answer: Deepened India's integration into global trade
Explanation: India became a member of the World Trade Organization in 1995, marking a significant step in its post-1991 economic reforms. WTO membership required India to follow global trade rules, reduce trade barriers, and increase transparency in trade practices. This facilitated greater participation in international markets, boosted exports and imports, and integrated India more deeply into the global trading system. Hence, its primary role was to deepen India's integration into global trade.
Additional Key Points:
WTO replaced the General Agreement on Tariffs and Trade in 1995.
India committed to trade liberalization, including reduction in tariffs and quotas.
It improved access to global markets for Indian goods and services.
WTO rules also cover intellectual property rights (TRIPS) and services (GATS).
Membership increased competition, encouraging efficiency in domestic industries.
Potential Exam-Oriented Questions & Answers:
Question: What organization did the WTO replace?
Answer: General Agreement on Tariffs and Trade (GATT)
Question: What does TRIPS stand for?
Answer: Trade-Related Aspects of Intellectual Property Rights