Duty cuts a win-win for both: Experts

India's decision to offer duty- and quota-free access to all least developed nations (LDCs) is being seen as a win-win for both, especially the 34 poor nations in Africa.

Officials say while the poor countries will have greater access to India, the latter will benefit from cheaper imports of minerals and select agricultural goods and also get the much-needed support in the Doha round of the world trade talks.

"Although India's unilateral support for African nations today may impact ... tax revenue, there are certainly benefits in securing commodity supplies over the longer horizon. India's demand for commodities is expected to be strong in the near term.

Furthermore, growing domestic consumption will see manufacturing activity continue to rise at a solid pace and thus demand for imported resources will remain strong," said Sherman Chan, economist, Moody's Economy.com.

TS Vishwanath, Head, International Trade Policy, CII, said Indian companies had a great opportunity to set up facilities in LCDs, especially in Africa. "Moreover, we should also be focusing on the African market, which is emerging as a lucrative destination," he added.

Government officials say the benefits will be applicable from May 1 and the Department of Revenue will notify the decision this month.