Since India did not have export subsidies during 1986 to 1988, which is the base period per the Uruguay Round Agreement on Agriculture (AOA), India is not entitled to export subsidies. However, subsidies to reduce the cost of marketing, transportation costs, handling and processing costs are permitted without circumventing the export subsidy reduction commitments.
Developed nations have agreed to eliminate export subsidies based on the Nairobi Ministerial Decision on Cotton and Export Competition, which was adopted on December 19, 2015. This agreement will enable developing countries to eliminate export subsidies by January 1 of 2017.
The Government of India opines that the Nairobi Decision on elimination of cotton export subsidies will be good for Indian cotton exports as it will provide a leveling platform since India is not entitled for the export subsidy provision. India has pushed for the adaptation of Nairobi decision.