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India to continue sops for textile exporters despite US demand to do away immediately

Related Keywords: export subsidies, Indian textile exporters, Subsidies and Countervailing Measures, textile sector, US demand, WTO rules

Washington argues that New Delhi no longer qualifies to give concessions for textile exporters under the World Trade Organisation (WTO) rules as it attained export competitiveness in the textile sector eight years back. But India has decided to continue with export sops for the sector in the new fiscal and, probably, the following two years as well.

India sought clarification from the WTO on phasing out the subsidy for textile exports

Related Keywords: export credit, export promotion capital goods scheme, export subsidies, focus market scheme, FPS, India textile industry, Indian textile and garment sector, market-linked FPS, phase out subsidy, WTO rules

India’s textile and garments sector employ over 35 million people and accounts for over 12% of its total exports. The export subsidies offered by India for Textile and Clothing are under certain heads such as the Focus Market Scheme, Focus Product Scheme (FPS), market-linked FPS, Export Promotion Capital Goods Scheme, interest subvention on pre- and post-shipment export credit as well as tax breaks for special economic zones.

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