New Delhi, Nov 1 (KNN) Concerned over the impact of a World Trade Organization (WTO) panel holding India's export -related schemes as violative of the multilateral Agreement on Subsidies & Countervailing Measures (SCM) on the country's exports, the EEPC India has impressed upon the government to work on a multi-pronged strategy to ensure that such rising global challenges do not impede Indian competitiveness abroad.

'' While , we are sure, the Indian Government would be appealing against the ruling of the WTO Dispute Settlement Panel and defending its case with all the logical and fair arguments, the work on a parallel track to make all export -related schemes WTO -compatible should be speeded up, " said EEPC India Chairman Mr Ravi Sehgal .

He said while the government has announced a roll-out plan for the Remission of Duties or Taxes on Exports scheme which would be WTO-compliant, the latest ruling of the WTO Dispute Settlement, on a complaint from the US, '' we need to make sure that no disruption is caused to our exports''.

The EEPC India Chairman said the country's exports are facing a severe slowdown in the face of rising raw material cost, US-China trade war and non-tariff barriers , besides a crippling deceleration in global trade. Merchandise exports for September, 2019 declined by 6.57 per cent year- on -year.

''Engineering exports, the largest contributor to the country's export basket, too suffered a drop of 6.20 per cent in the September shipments," said  Sehgal, adding that a wrong impression seems to have been created in the multilateral organisation as if Indian exports are given subsidies of USD 7 billion.

''The fact is that the exporters are refunded taxes and duties paid on raw material and the process of value-add. In fact, precious working capital of exporters are held for months; placing them at a disadvantage against competitors," the EEPC India Chairman said. He said, '' obviously, we cannot be exporting taxes and duties along with our products, where is the question of subsidies? ''.

Sehgal said in the face of global trade slowing down and more and more countries becoming protectionists, '' going seems tough for our exporters. Under these circumstances we need to re-draw our strategy , particularly with those countries and blocs with which we have Free Trade and Preferential Trade Agreements; so that we can take full advantage of such pacts''.   

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