Think tank GTRI has suggested that reducing import duties on inputs and capital goods could potentially reduce the need for several existing export schemes, according to a statement released on Friday. This recommendation is seen as crucial in light of the ongoing challenges faced by India in managing these incentives within the framework of international trade laws. GTRI, also known as the Global Trade Research Initiative, highlighted the fact that various countries, including major trade partners such as the European Union (EU) and the United States, continue to label Indian schemes as subsidies and penalize exporters by imposing countervailing duties.
It is worth noting that both America and the EU alone account for more than 20% of India’s total outbound shipments. Presently, India has implemented multiple schemes to facilitate exports, such as the Advance Authorisation Scheme (AAS), Export Promotion Capital Goods Scheme (EPCGS), Duty Drawback Scheme (DDS), the Remission of Duties and Taxes on Exported Products (RoDTEP), Special Economic Zones (SEZ), Export Oriented Units (EOUs), Pre-shipment and Post-shipment credits via banks, and the Interest Equalization scheme (IES). These schemes are designed to enhance the competitiveness of Indian goods in the global market.
Ajay Srivastava, Co-Founder of GTRI, emphasized that the EU, the US, and other nations regularly consider these schemes as subsidies and consequently impose countervailing duties to offset the monetary advantages offered by India to its exporters.
