Kolkata, July 5 (IANS) In order to evaluate the compliance of export subsidy schemes with WTO regulations, the Directorate General of Foreign Trade will review the progress of a committee set up by the Central government, an official said here on Thursday.
In the wake of US launching a challenge at the WTO to Indian export subsidy programmes, the government planned to evaluate certain export promotion schemes including Merchandise Exports from India Scheme and others.
“The committee was formed about one and half month back and is supposed to give report in three months. There is a meeting next week to understand how far the progress is,” said Director General, Foreign Trade, Alok Chaturvedi on the sidelines of an event organised by Indian Chamber of Commerce.
The committee comprises representatives from Centre for WTO studies under Indian Institute of Foreign Trade as well as legal and export promotion councils.
According to a statement from the office of the US Trade Representative, Indian companies are receiving benefits totalling over $7 billion annually from the subsidy schemes that allows Indian exporters to sell their goods more cheaply to the detriment of American workers and manufacturers.
Chaturvedi said that India has taken up the issue at the WTO level and indicated that India might ask for a transition period, in case the country has to phase out export subsidies.
He, however, said that despite challenging times exports grew in 2017-18 and said that the centre was working on a strategy to boost exports further.
“These are challenging times. There are some uncertainties in the international trade in terms of tariff increases, volatilities in currencies, review of GSP regime by US and political developments in Iran, Russia and Middle East are adding to uncertainty,” he added.