(a)OR(b)

Describe the role which India has played as an important member of World Trade Organisation (WTO).

As a member of the World Trade Organization (WTO), India has been at the forefront of framing fair global rules and regulations advocating the interests of the developing world. India has kept its commitments towards liberalisation of trade by removing quantitative restrictions on imports and reducing tariff rates.

The licensing policy, introduced under the IPR $\displaystyle 1956$, required industries to obtain prior permission from the government for production decisions. The aim of this policy was to ensure balanced regional growth, and prevent concentration of economic power.

While the licensing system initially helped in guiding industrialization and protecting small industries, it gradually led to bureaucratic delays, corruption, reduced competition, and inefficient resource allocation, thereby hindering growth.