Information to help impose duty on subsidised imports & protect local industry.

The government has set up a special cell to compile information on subsidies given by other countries to their industry, official sources told The Hindu. The constitution of the special cell — as well as proposed measures including changes in laws such as Customs Act —is also aimed at indirectly helping India Inc file applications before the government seeking imposition of anti-subsidy duties on subsidised imports of items, such as steel, harming local industries.
The development comes in the backdrop of slowdown in global trade and measures taken (including against merchandise exports from India) by several countries such as the U.S. to protect their domestic industries from unfairly low-priced imports.
Under the WTO norms, subsidies refer to financial contribution (loan, loan guarantee, grant, import duty exemption, equity infusion, fiscal incentives and purchase of goods) by the government or state agencies resulting in advantages to those players availing it. Action against subsidies is meant to level the playing field.
Digital India
The move to create a special cell — with representatives from several ministries including commerce and finance — also comes at a time when the government is keen to boost local manufacturing through initiatives such as Make In India, Start-up India and Digital India.