Vol: 10, Issue: 2 2020

Page: 01-11

Trade Agreements and Foreign Investment: Contemporary Issues in the Indian Economy

Dr. Suhasini Parashar

In economy , trade agreements and foreign investment approach helps in the country to upgrade capital formation and encourage employment opportunities .Trade agreements through , the World Trade Organization(WTO) was established with motive of enhancing the free and fair trade, improve growth rate of world trade by encouraging members to reduce trade barriers and to increase the overall prosperity in the global economies. The WTO Administers Trade agreements ; Trade negotiations; Settles trade disputes; Monitors and reviews national trade policies ; Provides technical assistance and training for developing countries; Co-operates with other International organization . The developing countries favored the legalistic model on the grounds that , it offered more effective protection of their rights than the pragmatic model that could be more easily dominated by the more powerful countries . The agreements of WTO cover everything from trade in goods, services and agricultural products. These agreements are based on the principles nondiscrimination , reciprocity, transparency. The another issue is ,India opened its market to foreign investors after the liberalization of the economy in 1991. FDI in India facilitate economic growth through overseas direct investment by bridging the gap between foreign investors and investing opportunities in India. FDI also helps bring in more job opportunities, new technology, managerial expertise and improved infrastructure. In this article , the focus remain on trade agreement and foreign investment on economy .