EXPORTS from least dev eloped countries (LDCs) to India may get cheaper by 60 per cent as centre gears up to announce third round of 20 per cent reduction in duties under duty free tariff preference scheme.

Over a period of time, the government may even review tariff rates on 326 items under sensitive list.

This is in line with India's commitment to the Aid for Trade initiative of World Trade Organisation anno unced during Hong Kong ministerial confe rence in 2005.

“We have written to the finance ministry to issue a third round of notification this month for further 20 per cent reduction in tariffs on items exported from least developed countries to India. This will lower down tariff rates by 60 per cent and is in accordance with our plan to bring down duties to zero in five years in five equal instalments ever since its launch in 2008,” ministry of commerce and industry joint secretary Amar Sinha said.

According to Sinha, the government may review tariff lines on 326 items in sensitive list as India opens up to global trade over a period of time.

“Currently, these items are untouched in order to protect domestic

manufacturers," he added. Sinha was speaking at national forum on aid for trade: strengthening south-south trade and investment jointly organ ised by Ficci, Unctad and Centre for WTO Studies.

Organisation for Eco no m ic Co-operation and Development (OECD) secretariat data showed that Aid for Trade com mitments reached $41.7 billion in 2008 while actual disbursements incr eased to $26.7 billion.

This was used in trade policy and regulation, building productive capacity, economic

infrastructure and traderelated infrastructure.

While this is the amount or aid by trad itional donors or deve loped countries to dev eloping nations and least developed countries, there is no data available for aid involved under the ini tiative within south-south nations where cou ntries like India, China and Brazil are playing an important role.

Even the Indian Institute of Foreign Trade feels that duty free tariff preference is an important component for Aid for Trade initiative. “However, government of India should also look at pro viding need-based tech nical assistance to recipient countries and there should be a process of consultation within the different ministries in India for effective implementation of duty free tariff preference scheme,” RS Ratna, professor, Centre for WTO Studies at IIFT said.

Bonapas Onguglo, senior economic affairs officer at Unctad feels that India has become a donor under the Aid for Trade initiative and therefore participation of private players in association with government is required to build capacities in least developed countries and support flow of investment.