Making Trade and Environmental Policies Compatible: Further Considerations From India

Abstract

There are a number of factors, set at different political, economic and environmental levels, that will influence the potential for conflict between India’s trade objectives and the environmental impact of those objectives. These include the political processes and institutions that will fashion the international and domestic debate on trade and the environment, and the Indian government’s ability to influence these debates. Others include various economic factors, such as India’s balance of payments position, foreign exchange situation and composition of trade and liberalisation of the economy. These will also determine India’s role in the resolution of trade and environment issues. In addition, the impact of industry on India’s own internal environment, particularly where goods are being produced for export, will also play a role. Finally, the constraints of revenue and the transfer and use of environmentally sound technologies will also be important. Throughout this chapter attempts are made to identify potential environment and trade links in the context of economic liberalisation.

The author wishes to thank Dr Prodipto Ghosh (TERI) and Shri Arvinder Sachdev (Planning Commission) for their assistance in the writing of this chapter. However the views reflected are the author’s own and are not be attributed to the Forest Planning Commission.