12-03-2012, 04:54 PM
TRADE ANALYSIS OF INDIA WITH SCANDEVIAN COUNTRIES
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1. Introduction
The Indian textiles industry contributes substantially to India’s exports
Earnings .The export basket consists of wide range of items containing
Cotton yarn and fabrics, man-made yarn and fabrics, wool and silk fabrics, made-ups and variety of garments. India’s textile products, includinghandlooms and handicrafts, are exported to more than a hundred countries.
However, the USA and the EU, account for about two-third of India’s
textiles exports.
No. of economic indicators indicate about robust & sustainable economic growth of india.
TRADE FREEDOM
Norway’s weighted average tariff rate was 0.3 percent in 2009. Norway has reduced many of its tariffs over the past decade. Most non-agricultural imports are no longer subject to tariffs. Import bans and quotas, restrictions in services markets, import licensing requirements, restrictive pharmaceutical and biotechnology policies, agriculture and manufacturing subsidies, and inconsistent enforcement of intellectual property rights add to the cost of trade. Ten points were deducted from Norway’s trade freedom score to account for non-tariff barriers.
FREEDOM
Norway has a high income tax rate and a moderate corporate tax rate. The top income tax rate is 47.8 percent (when federal and municipal taxes, a top surtax, and an employee contribution to social security are considered).The flat corporate tax rate is 28 percent. Other taxes include a value-added tax (VAT), a tax on net wealth, a national insurance contribution, and a number of environmental taxes. Petroleum companies’ profits are subject to a different tax scheme. In the most recent year, overall tax revenue as a percentage of GDP was 42.1 percent.
SPENDIN
Government spending is relatively high. In the most recent year, total government expenditures, including consumption and transfer payments, equaled 40.2 percent of GDP. A large discretionary stimulus package measuring 3 percent of GDP was implemented in 2009.
FREEDOM
Inflation has been low, averaging 2.4 percent between 2007 and 2009. The government regulates prices for agriculture products, sets maximum prices for pharmaceuticals, influences prices through state-owned enterprises and utilities, and subsidizes agriculture and manufacturing. Fifteen points were deducted from Norway’s monetary freedom score to account for measures that distort domestic prices.
FREEDOM65.0NO CHANGE
Foreign and domestic investments are treated equally under the law, but regulations, standards, and practices often favor Norwegian, Scandinavian, and European Economic Area investors. The state continues to play a large role in the economy. The government screens new investment and restricts investment in sectors in which it has a monopoly and sectors that are considered politically sensitive, such as fishing and maritime transport. Regulations and bureaucracy are generally transparent and efficient, but regulations can change suddenly. Residents and non-residents may hold foreign exchange accounts. There are no restrictions on payments, transfers, or repatriation of profits.