US’ move on Indian export subsidies not trade war, says commerce secretary

Contrary to the US’ complaint about India’s various export schemes, the government on Thursday said it doesn’t count these export promotion programmes as export subsidies and the move doesn’t constitute a trade war.

“It will be an irresponsible statement...because we are interested in selling to each other,” commerce secretary Rita Teaotia said on being asked if the US challenging practically almost the entire of India’s export programmes meant a trade war.

“Wherever we have difference in positions, we will resolve them,” she said.


On Wednesday, Washington filed a complaint at the WTO about India’s export subsidy programmes claiming them to harm American workers. These programmes are the Merchandise Exports from India Scheme; Export Oriented Units Scheme and sector specific schemes, including Electronics Hardware Technology Parks Scheme; Special Economic Zones; Export Promotion Capital Goods Scheme; and a duty free imports for exporters programme.

Teaotia said that there would be no knee jerk reactions to the US’ move and India would understand the assumptions made by the US to arrive at the $7 billion export subsidy number as it doesn’t consider all these as export subsidies.

“We will actively engage with them. We have to respond within 60 days,” she said.