India’s Trade Policy

India’s Trade Policy Review (TPR) has been carried out by the World Trade Organization (WTO) under the Trade Policy Review Mechanism, wherein the trade related policies of Member countries are reviewed at regular intervals by the WTO. India’s TPR meetings were held on 6th & 8th January 2021.

USA and the EU have flaggedcertain trade related issues, including increase in import duties, during the recently held TPR meetings.

Applied rates of customs duty in India are determined keeping in view the overall economic and other policy objectives, which include enhancing domestic value addition, creating a level playing field, ensuring availability of raw materials at competitive prices, securing economic interests of the country, ensuring supply of essential items at affordable prices. Import duties have been rationalized across a few sectors, which can be accessed at https://www.cbic.gov.in/.

Some Member countries, including USA and the EU, raised certain questions regarding MFN applied tariff rates, agricultural support programmes such as MSP, etc.  Replies thereto have been given to the WTO. The WTO Agreement on Agriculture provides the rules for trade in agriculture. India’s agriculture support programmes, including the support through MSP mechanism, are consistent with India’s obligations under the Agreement and are being notified to the WTO as required therein.

This information was given by the Minister of State in the Ministry of Commerce and Industry, Shri Hardeep Singh Puri, in a written reply in the Lok Sabha today.