India'S Textile And Garment Industry Will Shrink Or Export Subsidies Will Be Cancelled.

According to the reporter, according to WTO's subsidies and countervailing measures, if a developing country (with a per capita annual income of less than US $1000), for a period of two years, an export product occupies 3.25% of global exports, then export subsidies will be abolished within eight years from second years.

For countries with a per capita annual income of more than $1000, there is no direct export subsidy.

The United States pointed out that textile and clothing exports in India had exceeded 3.25% in 2005 and higher in 2006, so India should cancel export subsidies from January 2015.

However, India cited the relevant provisions in WTO to refute and insisted that it would not be lifted until January 2018, because the Multilateral Trade Organization began to ask India to phase out export subsidies in 2010.

The provisions of the WTO stipulate that "the formation of export competitiveness should be determined by the fact that the developing countries have notified the country that they have reached the level of export competitiveness or that the export to the country is calculated by WTO at the request of any member country".

Export subsidies are provided under specific frameworks, such as theFocusMarke, Scheme, FocusProductScheme (FPS), market-linkedFPS and ExportPromotionCapitalGoodsScheme, which are presented as information subsidies for export credit before shipment or after shipment and tax relief for special economic zones.

Textiles and textiles in India

More than 3 million 500 thousand workers were employed, accounting for more than 12% of the total exports of the country.

It is reported that India has always wanted to specify the definition of "products" and "phasing out export tariffs" in appropriate period under the provisions of WTO.

NewDelhi claims: "although the export proportion of textiles and garments has exceeded the prescribed global share as a product category, many specific products under this product category have not yet reached the level of export competitiveness, so India's approach should be supported."

However, there are also reports that the new

From 2015 to 2020, the Ministry of Commerce realized that the phasing out of export subsidies may be implemented halfway, many of them before 2018.

This is due to India's acceptance of WTO accession.

At the same time, the Ministry of commerce wants incentive subsidies for weaker textile and clothing products rather than exports.

The WTO is directly related to export subsidies, but it does not prohibit production subsidies.

However, production subsidies may be subject to a countervailing duty imposed by importing countries to offset losses caused by cheaper imports than those produced in our country.

However, there are also reports that the general WTO regulations permit import duties to neutralize export subsidies, but export tax rebates for industrial centres are not feasible.

But for cotton production technology upgrading, capital subsidy is feasible, because the subsidy is incentive production.

DKNair, Secretary General of India Textile Industry Federation, said: "if India is to completely abolish export subsidies under the pressure of the state in 2015, the textile industry will face many serious problems.

India's domestic cotton prices are still higher than the global prices, and producers can no longer shift the increased cost to consumers and curb consumer demand.

Because of the decline in demand for high-end consumers in China, a lot of textile exports in India are under great pressure. Compared with the previous period, the export of cotton yarn in India from April to October decreased by 16%.

The growth rate of export of pure cotton clothing is also slowing down.