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    Europe And The United States Urge India Textile Industry To Abolish "Improper" Export Subsidies

    2012/5/16 11:40:00 20

    Textile IndustryTextile And GarmentTextile Industry

    The United States, the European Union, Japan and Turkey are urging India to cancel it.

    textile industry

    The "unfair" export subsidies provided, but New Delhi is keen to phase out further negotiations to ensure that India's key export departments will not be deprived of all support.



    "Yes, we do cancel part of the next three years," a senior official from the Ministry of Commerce said.

    textile industry

    Export subsidies, because India has broken through the threshold of these petty favors.

    However, India will be careful to ensure that the subsidies that must be abolished.


     


    The World Trade Organization (WTO) agreement on subsidies and countervailing measures allows export subsidies to countries whose per capita income is less than US $1000, as long as a specific industry exports less than 3.25% of world trade.

    India's share of the global textile market is almost 4%, which has been higher than WTO's threshold for 5 years.


    Since each country has given 8 years to abolish subsidies, India has abolished subsidies until 2015.


    Nair, Secretary General of the India Textile Industry Federation, said: "the government needs to negotiate carefully to cancel what kind of subsidy, because the subsidy that the textile industry receives is not a direct subsidy, but a subsidy to all industries". DK


      

    India textiles

    Exports, including garments, are said to be between $31 billion and $32 billion.

    It accounts for about 14% of the industrial output value, accounting for more than 10% of India's total exports.

    The textile industry employs about 35 million people, the largest employer after agriculture.


    The textile sector in India has benefited from a series of export promotion plans, such as export oriented enterprises and special economic zone plans, export promotion capital goods plan and promotion measures, such as key products and key market plans.


    In addition to these plans, there are tax and plans, such as tax rebates and pre approval schemes.

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