WTO and India

U.S. challenges India’s export subsidies at WTO


Mains Paper 2: IR | Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests

From UPSC perspective, the following things are important:

Prelims level: Targeted Schemes

Mains level: Reason behind this challenge against Indian Subsidies.


US challenges India’s export subsidies

  1. The US has challenged India’s export subsidy programmes at the WTO
  2. The US had requested dispute settlement consultations with the Government of India at WTO on the issue
  3. It is different: Unlike the many trade disputes between India and America that are sector specific or product specific,
  4. the new move is broad and sweeping in targeting the whole range of Indian export subsidy programmes

Targeted Schemes

  1. A statement from the (United States Trade Representative)USTR has listed
    (1) the Merchandise Exports from India Scheme;
    (2) Export Oriented Units Scheme and sector specific schemes, including Electronics Hardware Technology Parks Scheme;
    (3) Special Economic Zones;
    (4) Export Promotion Capital Goods Scheme, and a duty free imports for exporters programme
    as distorting trade in a way that allows Indian exporters “to sell their goods more cheaply to the detriment of American workers and manufacturers”

Argument against India

  1. According to the US, the above export subsidy programmes harm American workers by creating an uneven playing field on which they must compete
Notify of
Inline Feedbacks
View all comments