India and globalisation: Regional disparities, industrial development and inclusive growth (INGRID)

The main ambition of the project is to develop high-quality cooperation between Indian and Norwegian researchers related to the social impact of globalisation and related international policies. There is one Norwegian partner (NUPI) and two Indian (ISEC, Bangalore and NIPFP, New Delhi). It is a pre-project that includes specific research output in to thematic areas, and seminars and networking activities in a broader field. Research visits in both directions are also envisaged.

The first research are a concerns the particular challenges of globalisation for India, which is a large sub-continent of states that are often - in terms of population - larger than European countries. In the same way that European integration has been vital for European devel opment, inter-state integration in India is crucial if globalisation shall lead to inclusive growth and poverty reduction. For small firms, the first export market may be in the neighbour state. In spite of this, the volume if inter-state trade in India i s unknown and policies related to domestic and international integration are detached. The project aims at presenting the first empirical estimates on the extent of inter-state trade in India, examine its interplay with international trade, and the implic ations for trade and industrial policies.

The second research contribution will examine the sectoral pattern of growth in India and in particular the role of services expansion and exports. India has become the world's largest information technology s ervices exporter, but traditional sectors such as retail trade also contributed strongly to growth. The project will examine whether services-led growth can create the necessary jobs also in low-skill segments, and address related issues concerning trade policy in services.

Beyond these areas, the project will include explore potential cooperation in a wider area including biofuels, WTO and agriculture, and bilateral trade policy issues.