The government proposed a World Trade Organization (WTO)-compliant export promotion scheme along with a production based support scheme to boost Make in India.
Under the special and differential provisions of the WTO’s agreement on subsidies and countervailing measures, so-called least-developed countries and developing countries whose gross national income (GNI) per capita is below $1,000 a year at the 1990 exchange rate are allowed to provide export incentives to any sector that has a share below 3.25% in global exports.
According to a notification by the committee on subsidies and countervailing measures in 2017, India’s per capita GNI crossed $1,000 for three consecutive years in 2015.
India has argued that as countries that were already above $1,000 were given eight years to adjust to the new regime, it should also get similar time to change its exports policy.
