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Context:
The government needs to tilt its green manufacturing mix in favour of nascent industries of the future
Champion sector
The 2018 Economic Survey identifies renewable energy as a champion sector under the Make in India 2.0 programme
Present situation
India currently meets almost 90% of its annual requirement of solar panels through imports (mainly China)
What are trade remedies?
Trade remedies are trade policy tools that allow governments to take remedial action against imports which are causing material injury to a domestic industry. Such remedies are divided broadly into: anti-dumping action; countervailing duty measures; and. safeguard action
Issues
- Trade remedies like increased duty on imported items, might attract retaliatory action from other countries
- Compliance with global trade regime: India needs to comply with international trade rules as going against them results in decreased stakeholder confidence. For eg: Domestic Content Requirement (DCR) scheme was challenged at WTO and India lost the case
- Inter-ministerial conflict: The severity of this conflict is evident in the power given to both the Ministry of Finance (MoF) and the Ministry of Commerce and Industry (MoCI) to implement trade remedies (safeguard duties and anti-dumping duties or ADD, respectively). An inter-ministerial committee headed by the MNRE must be constituted to coordinate moves among the MoF, the MoCI, the Ministry of Power, and the Central and State Electricity Regulatory Commissions
- Voicing concerns: Developers and manufacturers need to voice their needs clearly and respond to policy implications in an unambiguous manner. The industry needs one unified voice representing the key concerns of each stakeholder-category, without ignoring the broader interests of the sector
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