Economics
Context: India’s rank in the Services trade restrictiveness index (STRI) improved a notch to 47 from 48 among 50 countries surveyed by the Organization for Economic Co-operation and Development (OECD).
About STRI:
- The STRI provides a snapshot of services regulatory regimes to help policymakers to assess reform options.
- The index takes into consideration different sectors like road freight cover, air transport, government regulations, etc.
- It is a unique, evidence-based tool that provides information on regulations affecting trade in services in 22 sectors across all OECD member countries and Brazil, the People’s Republic of China, India, Indonesia, Kazakhstan, Malaysia, Peru, Singapore, South Africa, Thailand, and Vietnam.
India’s performance on STRI:
- lowest scoring sectors (least restricted): computer services, engineering services, sound recording, and road freight transport.
- highest scoring sectors (most restrictive): architecture service, rail freight transport, accounting services, and legal services.
- Government dominance: The railway sector in India is highly restrictive due to the dominance of the Indian government in it.
- Market access for foreigners: Market access to certain key service sectors remains prohibited for foreigners or is subjected to stringent conditions.
About OECD:
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- It is an inter-governmental economic organization, founded to stimulate the economic progress of the world.
- It was founded in 1961.
- Its Headquarters are in Paris.
- It has 36 members. India is not a member but a key economic partner.
- Reports and Indices by OECD: International migration outlook, OECD better life index.
Source: Business Standard
Previous Year Questions
Q.1) ” Rapid Financing Instrument “and “Rapid Credit Facility” are related to the provisions of lending by which of the following:
- Asian Development Bank
- International Monetary Fund
- United Nations Environment Programme Finance Initiative
- World Bank
Q.2) With reference to the “G-20 Common Framework”, consider the following statements:
- It is an initiative endorsed by the G20 together with the Paris Club.
- It is an initiative to support Low-Income Countries with unsustainable debt.
Which of the statements given above is/are correct?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
