Import duty cut plays down export schemes
Govt should slash import duty on inputs, capital goods as the country facing challenges in managing these incentives within the framework of international trade laws
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New Delhi: Reducing import duties on inputs and capital goods could help the government cut down the need for many of the existing export schemes, think tank GTRI said on Friday. This would be an important step as India continues to face challenges in managing these incentives within the framework of international trade laws, it said.
The Global Trade Research Initiative (GTRI) said that many countries, including major trade partners of India like the European Union (EU) and the US continue to declare Indian schemes as subsidies and punish exporters by charging countervailing duties.
America and the EU account for over 20 per cent of the country’s total outbound shipments. At present, India is implementing many schemes to facilitate exports. These include 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 banks, and Interest Equalization scheme (IES).
These schemes aim to enhance Indian products’ competitiveness in the global market. GTRI Co-Founder Ajay Srivastava said the EU and the US and many others have frequently viewed these schemes as subsidies, and imposed countervailing duties, neutralising the monetary advantages India provides to its exporters.
