(Amiti Sen – The Hindu-Business Line)
The newly packaged export incentives in the latest foreign trade policy (FTP) have created fresh trouble for the textile sector at the World Trade Organisation (WTO).
The US has accused India of handing out additional export subsidies to the sector which has become globally competitive and should not be incentivised going by global trade rules.
India, however, has defended itself, saying that it has three more years to remove all subsidies and a number of schemes in the textile sector had either been removed or should not be considered as export subsidies.
Criticising the new sops announced recently for the textiles sector at a recent meeting of the WTO’s committee on safeguards and countervailing measures in Geneva, the US representative said that providing new incentives to the sector is a step backwards as India is supposed to remove all textile export subsidies this year. Click here to read more.