Developing Countries Need Trade , Not Aid

Presented By : Deepak Kumar 15115043 Chitranshu Swami 15115041

By world Bank 2011 according to per capita income

Trade :

“Activity or process of buying, selling or exchanging goods and services .”Trade is a key factor influencing prospects for sustainable and equitable growth among developing countries

Aid :“Aid is any form of assistance offered by one country in the form of loans, weapons, medicines, technology etc. to another country in need of it . ”

Trade With Developing Countries : High demand and purchasing power: Economy is in growing state

in developing countries, and hence, the demand is increasing day by day, and in the era of globalization ,purchasing power of people has also increased. So any new product or services launched will be in high demand.

Profit to all: Moreover in a nation like India where there is a huge population with different cultures the demand is also very high ,so any big firm whether its automobile sector or electronics sector will certainly have consumers lined up for there products to get sold .

Reduces poverty: Trade helps in development and reduces poverty by generating growth through increased commercial opportunities and investments.

Employment: Trade creates employment opportunities by boosting economic sector that creates stable jobs and usually higher incomes, thus increasing standard of living.

Business opportunities: Trade openness increases business opportunities for local companies by opening new markets, removing unnecessary barriers and making export easier.

Aid* Aid comes with a price: No aid is provided until and unless there is any

motive behind it. No aid is free and has a cost associated with it, making the receiving countries dependable to the nation or organization providing the aid, therefore adding an extra burden.

Becoming political slaves: As receiving countries, foreign aid often bring about political conditions' exchange. Receiving countries have to obey the political rules which are created by donors' nations.

It promotes corruption: In many developing and under-developed countries, a large percentage of foreign aid is taken by corrupt government officials or organization leaders and placed in their own pockets, As a result those who need assistance often don’t receive it and their condition remains same.

Uncertainty: Even under the best possible circumstances, inflow of foreign aid suffers from an element of uncertainty. Cases are also known where foreign aid was suddenly withheld by an aid-giving country for political or other non-economic reasons.

Trade In India

FDI(Foreign Direct Investment): Government has promoted FDI to encourage foreign investment for better trade opportunity.

Make in India: Another policy to invite foreign investors to improve Indian trade market.

Relaxation of excise and custom duty: All Indian industries (public and private) are subjected to same kind of excise and custom duty levies.

Digitalization: Process of applying Industrial License has been made completely online.

Trade v/s Aid

P.M Narendra Modi promoting trade

UK aid is not ashamed in putting Union Jacks all over Africa. 

We need AID in TRADE

“Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime”