- The World Trade Organization (WTO) is an international organization that sets rules for trade between countries.
- India became a member of the WTO in 1995.
- The WTO has had a mixed impact on small scale industries in India.
- On the one hand, it has opened up new markets for Indian small businesses. On the other hand, it has also exposed them to increased competition from foreign companies.
Positive impacts of WTO on small scale industries in India:
- Access to new markets: WTO membership has given Indian small businesses access to new markets in other countries. This has helped them to expand their businesses and increase their sales.
- Increased competition: WTO membership has exposed Indian small businesses to increased competition from foreign companies. This has forced them to become more efficient and competitive.
- Improved technology: WTO membership has helped Indian small businesses to access better technology from other countries. This has helped them to improve their products and services.
- Increased investment: WTO membership has attracted foreign investment to Indian small businesses. This has helped them to expand their businesses and create jobs.
Negative impacts of WTO on small scale industries in India:
- Job losses: Increased competition from foreign companies has led to job losses in some small scale industries in India.
- Bankruptcy: Some small scale industries in India have gone bankrupt due to increased competition from foreign companies.
- Loss of market share: Some small scale industries in India have lost market share to foreign companies.
- Decreased profits: Some small scale industries in India have seen their profits decrease due to increased competition from foreign companies.
Overall, the impact of WTO on small scale industries in India has been mixed. There have been some positive impacts, such as increased access to new markets and improved technology.
The government of India has taken some steps to mitigate the negative impacts of WTO on small scale industries. These steps include providing financial assistance, providing technical assistance, and providing marketing assistance.