Financial Services Negotiations under the General Agreement on Trade in Services (GATS): A Case Study of Indian Banking and Insurance Sectors

Dr. Raju KD, Indian Institute of Technology - Kharagpur

Abstract

Financial services are one of the sectors to be opened under the Agreement on Trade in Services (GATS) entered into force on 1 January 1995 along with other WTO Agreements. In the multilateral negotiations developed countries are taken a two-track approach to the liberalization of their financial markets. Developing countries were reluctant to open their markets fully and open for multinational companies. The movement of persons under Mode 4 services are still a stumbling block in the negotiations. The present article intended to analyse the status of financial negotiations in the WTO and examines the performance of Indian banking and insurance sectors and Indian commitments in the WTO. The study concludes that domestic reforms are vital for the full integration of the financial markets in most of the developing countries including India.