World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

Turkey 2:

Report by the Secretariat (WT/TPR/S/249): SUMMARY: Page 10, Para. 7

As stated in the Secretariat Report, "India's short term objective, in accordance with the latest FTP, is to achieve annual export growth of 15%; the long term objective is to accelerate export growth to 25% per annum and double India's share in global trade by 2020. In order to meet these objectives, India implements a mix of policies including tax incentives, export promotion, and credit facilitation schemes, to "neutralize" the cost of imported inputs used in exports."

Could India explain what is meant by the neutralization of cost of imported inputs?

Could India explain whether the above mentioned mix of policies are applied to all or specific export sectors?

Reply: Neutralisation of the cost of inputs refers to duty neutralisation by way of rebate or exemption from the indirect taxes on the inputs used in the manufacture of the export product or creating a level playing field. Details are given in the Foreign Trade Policy (2009 2014), which has been notified to WTO and is also available at http://dgft.gov.in.