India may soon end up its export subsidy regime in the current form, as according to World Trade Organization (WTO) rules, export incentives are not permitted for any sector including textiles, when it reaches certain thresholds. The deadline for ending direct subsidies to textile companies is December 2018.
WTO grants permission to least developed countries and developing countries whose Gross National Income (GNI) per capita is below US $ 1,000 per annum at the 1990 exchange rate, to provide export incentives to any sector that has a share of below 3.25 per cent in global exports.
If a sector in above mentioned countries crosses the 3.25 per cent threshold for two consecutive years, it has to phase out export subsidies for that sector within eight years.
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India’s textile exports have crossed the 3.25 per cent mark in 2010, requiring it to end its export incentives to the sector by December 2018.
Bharat Tex Special Report 2026 
