India Economics

India Chart Book

23 March, 2018

Export subsidies to remain in place for some time

There has been much focus over the past month on the shift towards greater trade protectionism by the US, and yet arguably the most significant development from India’s perspective was the action by the US to challenge India’s export subsidy schemes at the World Trade Organisation. In strict terms, India’s subsidy schemes do appear to contravene WTO rules. But based on past experience, it will be several years before the subsidies actually need to be removed.

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