Direct vs Indirect Subsidies - WTO Concerns
Subsidies are government financial contributions to domestic producers, aiming to support specific industries or achieve social objectives. The World Trade Organization (WTO) regulates these subsidies to prevent unfair trade distortions. WTO rules differentiate between direct (e.g., cash transfers) and indirect (e.g., input cost reductions) subsidies, with varying levels of permissibility under the Agreement on Subsidies and Countervailing Measures (SCM Agreement) and the Agreement on Agriculture (AoA).
Recent Developments
- The WTO's Appellate Body remains largely dysfunctional in 2024-25, complicating dispute resolution.
- India continues to face scrutiny over its agricultural subsidies, particularly Minimum Support Prices (MSP) for products like rice and sugarcane, which ....
Do You Want to Read More?
Subscribe Now
Take Annual Subscription and get the following Advantage
The annual members of the Civil Services Chronicle can read the monthly content of the magazine as well as the Chronicle magazine archives.
Readers can study all the material before the last six months of the Civil Services Chronicle monthly issue in the form of Chronicle magazine archives.
Related Content
Indian Economy
- 1 India’s Economic Growth: Key Statistics & Trends
- 2 Rising Employment Gap despite Strong GDP Growth
- 3 Potential GDP: Determinants and Hindrances
- 4 Inclusive Growth in India
- 5 Rising Income Inequality
- 6 Informal Sector Inclusion in GDP
- 7 Viksit Bharat@2047 & $5 Trillion Economy Roadmap
- 8 Debt Management
- 9 GST: Current Scenario, Impacts & Concerns of States
- 10 Centre-State Fiscal Imbalances
