1.What
are QRs?
QRs
or Quantitative Restrictions refer to limits set by countries to curb
imports (or exports). This can be in the form of quotas, licensing requirements
or in the form of canalising of imports — i.e., allowing only a few
players or entities to import specific things. QRs are thus measures,
other than tariffs or duties, taken to restrict imports (or exports).
The
noted economist Dr. Anne Krueger has described QRs, licences and restrictions
as ‘rent-seeking activities’ which carry a premium or windfall profits
for the quota holder. That is why some analysts in India have defined
QRs as "Quota Raj", which breeds corruption and inefficiency.
1. How
did the QR issue originate?
2.
Are QRs being phased
out under pressure from the US? Couldn’t the Government have negotiated
a better bilateral agreement with the US than agreeing to an accelerated
phase-out of QRs by 2001?
3.
What about protection to
agriculture? And the Indian farmers?
4.
Are there any benefits which
will accrue to the Indian economy as a consequence of the removal of
QRs on imports?
5. What
has been the impact of imports in respect of items on which QRs were
removed earlier?
6. How will the Government
protect the domestic industry especially the SSI sector from possible
adverse impact of removal of QRs? What are the mechanisms available
for it?
7. Are there are any other measures
that the Government is contemplating to effectively safeguard the domestic
industry?
