  
  
WT/TPR/M/403/Add.1  
12 March 2021  
(21-2072) Page: 1/332 
Trade Policy Review Body  
6 and 8 January 2021  Original: English/Spanish  
anglais/espagnol  
inglés/español  
 
  
TRADE POLICY REVIEW  
INDIA 
MINUTES  OF THE MEETING  
Addendum  
Chairperson: H.E. Mr. Harald Aspelund (Iceland)  
This document contains the advance written questions  and additional questions by WTO 
Members , and replies provided by  India.1 
 
 
Organe d'examen des politiques commerciales  
6 et 8 janvier 2021  
EXAMEN DES POLITIQUES COMMERCIALES  
INDE 
COMPTE RENDU DE LA RÉUNION  
Addendum  
Président : S.E.  M. Harald Aspelund (Islande)  
Le présent document contient les questions écrites communiquées à l'avance par les 
Membres de l'OMC, leurs questions additionnelles, et les réponses  fournies par  Inde.1 
 
 
Órgano de Examen de las Políticas Comerciales  
6 y 8 de enero de 2021  
EXAMEN DE LAS PO LÍTICAS COMERCIALES  
INDIA 
ACTA DE LA REUNIÓN  
Addendum  
Presidente: Excmo.  Sr. Harald Aspelund (Islandia)  
En el presente documento figuran las preguntas presentadas anticipadamente por escrito  y 
las preguntas adicionales de los Miembros de la OMC,  así como las respues tas facilitadas por  India.1 
  
 
1 In English and Spanish only./En anglais et espagnol seulement./En inglés y español solamente.  WT/TPR/M/403/Add.1  
 
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  Contents  
CANADA  4 
CANADA (FOLLOW -UP QUESTIONS)  26 
AUSTRALIA  29 
NEW ZEALAND  37 
OMAN  40 
HONG KONG, CHINA  41 
REPUBLIC OF KOREA  44 
JAPAN  55 
JAPAN (ADDITIONAL WRITTEN QU ESTIONS)  71 
JAPAN (FOLLOW -UP QUESTIONS)  72 
UNITED STATES  75 
UNITED STATES (FOLLO W-UP QUESTIONS)  98 
NORWAY  104  
CHILE  106  
CHINESE TAIPEI  119  
UKRAINE  124  
BRAZIL  134  
COLOMBIA  142  
ICELAND  155  
SINGAPORE  156  
UNITED KINGDOM  158  
UNITED KINGDOM (FOLLOW -UP QUESTIONS)  167  
SWITZERLAND  172  
ISRAEL  179  
COSTA RICA  181  
THAILAND  183  
THAILAND  (ADDITIONAL WRITTEN QUESTIONS)  184  
BANGLADESH  195  
EUROPEAN UNION  196  
EUROPEAN UNION (FOLLOW -UP QUESTIONS)  227  
MEXICO  233  
MEXICO (ADDITIONAL WRITTEN QUESTIONS)  236  
TURKEY  241  
TURKEY (ADDITIONAL WRITTEN  QUESTIONS)  243  
MALAYSIA  247  
MALAYSIA (ADDITIONAL WRITTEN QUESTIONS)  248  
PERU  260  
KAZAKHSTAN  262  
RUSSIAN FEDERATION  265  WT/TPR/M/403/Add.1  
 
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  INDONESIA  290  
INDONESIA (ADDITIONAL WRITTEN QUESTIONS)  298  
CHINA  302  
CHINA (ADDITIONAL WRITTEN QUESTIONS)  307  
PHILIPPINES  317  
 
  WT/TPR/M/403/Add.1  
 
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  CANADA  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
Secretariat Report - India (S403)  
 
1.2 Recent Economic Developments  
Page 18 (Footnote "a" to Box 1.1 ) 
The Atmanirbhar Bharat Abhiyan programme " indicates that "MSMEs are to be redefined as follows: 
micro enterprises are those that have investment of less than INR 10 million and turnover of less 
than INR 50 million; small enterprises are those with an investment of less than INR 100 million and 
turnover of less than INR 500 million; and mediu m-sized enterprises are those with investment of 
less than INR 200 million and turnover of less than INR 1 billion. " 
Question 1:  Please provide any readily available statistics on the role of MSMEs in India 's economy 
and participation in international trad e: (i) total number of MSMEs in India; (ii) percentage of 
businesses that are MSMEs; (iii) employment profile of MSMEs, e.g., percentage of total employment 
generated by MSMEs; (iv) export and imports by MSMEs, e.g., percentage of all exports and imports 
for MSMEs, total number of MSMEs that are exporting and importing.  
Reply:  (i) India's MSME Sector comprises of about 64 Million enterprises.  
(ii) MSMEs contribute to about 30% of GDP [2018 -19]. 
(iii)  MSME sector has created about 111 million jobs in the country.  
(iv) In 2019 -20, Export of MSME produced products was INR 11 trillion, which accounted 
for about 50% of India 's total merchandise exports.  
Question 2:  Does India collect statistics on MSME ow nership by diverse groups (e.g., women, youth, 
etc.)? If so, please provide this information.  
Reply:  Enterprises owned by Males have a share of about 76.5% of the total enterprises. This is 
followed by women -owned enterprises at 19.5%. The rest are constit uted by other firms.  
Question 3:  Does India include provisions in in its Regional Trade Agreements in support of MSMEs 
in cross -border trade, e.g., cooperation, investment?   If so, please provide an overview of these 
provisions.  
Reply: Provisions of the Regional Trade Agreements/FTAs India has entered are neutral to the size 
of the partner countries' business entities.  
Page 20 para.  1.12 of the report notes , "Minimum support prices of key agricultural crops were 
raised, while the PM Jan Dhan Yojana enable d the direct transfer of a growing number of subsidies 
to a targeted population. The Government aims to double farmers' incomes by 2020. Central 
government expenditure on explicit subsidies was around 2.5% of GDP during the review period, 
although extra -budgetary expenditure on subsidies has increased significantly in recent years. "  
Question 4:  Could India clarify whether the increased minimum support prices for key agricultural 
commodities and direct transfer of subsidies in the rural sector will continue to be important policy 
strategies to double farmers ' incomes by 2020 and beyond?  
Reply:  For doubling the farm income, the government has adopted a multi -pronged strategy 
including attracting private investment, strengthening extension services, addressing structural 
weaknesses, improving resource efficiency, increasing productivity along with ensuring minimum 
support prices for key agricultural crops.  WT/TPR/M/403/Add.1  
 
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  2. TRADE AND INVESTMENT REGIMES  
Page 34 (para . 2.14)  
The report states that advice on trade policy objectives is provided by groups such as the Federation 
of Indian Chamber of Comme rce and Industry.  
Question 5:  Can India indicate if organizations representing traders, importers and foreign 
producers are allowed to provide views for the development of trade policy objectives?  
Reply:  Yes, the Government regularly organizes stakeholder  consultations and interacts with 
industry bodies, traders & importers etc. to solicit their views for developing trade policy objectives.  
Page 34 (para . 2.15)  
The report states that the Foreign Trade Policy 2015 -21 aims at providing a stable and sustainable 
policy environment for foreign trade in merchandise.  
Question 6:  Can India explain how frequent changes to applicable tariff rates are compatible with 
the objective of providing a stable policy environment?  
Reply:  Applied rates of customs duty in India are prescribed, keeping in view the bound rates and 
overall policy objectives. This includes enhancing domestic value addition, ensuring the availability 
of raw materials at competitive prices, and securing the country's economic interests, ensuri ng the 
supply of essential items at affordable prices. Extensive deliberations, including stakeholder 
consultations and inclusive policy -making ensure that tariff changes are transparent and according 
to the country's stated policy and international commit ments, thus providing a stable policy 
environment.  
Page 34 (para . 2.17)  
The report states that frequent use of India 's trade policy is largely focused on domestic issues and 
encourages domestic production to meet domestic inflation and supply objectives.  
Question 7:  Can India provide more detail regarding its policy objectives for domestic production 
and explain how it is consistent with WTO obligations?  
Reply:  The domestic production policies are aimed at improving competitiveness of Indian industry, 
making India a global hub for manufacturing, design and innovation. The policies are formulated 
keeping WTO obligations in mind.  
Page 36 (para. 2.21) 
The report states that "India was involved in 24 disputes as complainant and 32 as respondent in 
the WTO. The status of disputes involving India since the last Review is shown in Table 2.3. India 
was also a third party in 165 disputes. "  
Question 8:  Taking into account that the Appellate Body cannot hear new appeals as of December 
11, 20 19, has India considered alternative mechanisms, for example the Multi -Party Interim Appeal 
Arbitration Arrangement (MPIA) established under DSU Article 25, to enable prompt and binding 
resolution of its WTO disputes?  
Reply:  No. India's first and foremost priority is the restoration of the full strength of the Appellate 
Body by MC12. Stop -gap arrangements that do not apply to all Members cannot be a viable 
alternative to a binding, independent, two -stage mechanism as agreed to by the Members in the 
DSU. 
Page 37 (para. 2.3.2 ) (Regional Trade Agreements)  
Question 9: With regards to new and ongoing negotiations, could India inform as to whether there WT/TPR/M/403/Add.1  
 
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  have been any changes in its approach to environment and sustainable development provisions in 
trade agreements since the 2015 TPR?  
Reply: While India recognises the importance of issues related to environment and sustainable 
development, it continues to view that these issues are not trade -related.  
Question 10:  Could India indicate whether its approach t o such agreements would encompass 
environment and sustainable development provisions similar to those found in the India -Japan 
Comprehensive Economic Partnership Agreement? If so, can India provide more detail on what type 
of environment and sustainable de velopment provisions it would be seeking? If not, can India explain 
what makes the agreement with Japan unique?  
Reply:  While India recognises the importance of issues related to the environment, it is of the view 
that there are alternative fora to discuss these issues. Additionally, trade agreements with different 
trading partners could vary based on mutual trade interests.  
2.4 Investment Regime  
2.4.2 Foreign investment  
2.4.2.1 Policy Framework  
It is noted that there are 11 sectors for which FDI must be app roved by the Government, one of 
which is the mining sector. However, in the Government 's Report (G/403, 5.1 FDI Policy), it is noted 
that approval of 100% FDI is now automatic for most sectors/activities.  
Question 11: Can India confirm if reforms in the mining industry have resulted in 100% FDI in the 
mining sector now being permitted under the automatic route?  
Reply:  100% FDI under the automatic route is allowed in Mining and Exploration of metal and non -
metal ores in cluding diamond, gold, silver and precious ores, and in coal & lignite, whereas in Mining 
and mineral separation of titanium bearing minerals and ores and related activities, 100% FDI is 
permitted under the government route.  
Question 12: Can India explain how reforms in the mining sector will improve the investment 
climate for foreign investors in the mining sector?  
Reply:  Reforms being undertaken also aim at promoting exploration through private agencies, 
funding private exploration agencies through Nation al Mineral Exploration Trust, making prospecting 
licence -cum-mining lease regime seamless,  making available those blocks which are not in use by 
the PSUs and  resolving legacy issues, making available more mineral blocks for auction etc. These 
initiatives a re expected to improve the investment climate in the mining sector for domestic as well 
as foreign investors.  
Question 13:  Can India provide more information about the proposed National Mineral Index?  
Reply:  The Government is in the process of developing a  National Mineral Index for different 
minerals.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
Page 44 (para . 3.12)  
The report states that in 2016, India introduced deferred payment of customs duties in order to 
further facilitate trade.  
Question 14:  Can India provide more detail regarding its policy objectives for deferred payment 
and how beneficial it has been for tr ade facilitation?  
Reply:  Deferred Payment of Import Duty Rules, 2016 came into effect from 16.11.2016. This facility 
has been extended to the Trusted importers certified under India 's Authorized Economic Operator 
Programme for Tier -II and Tier -III operato rs. Deferred payment facility enables faster clearance by 
allowing payment of customs duty on fortnightly basis instead of payment for every transaction.  WT/TPR/M/403/Add.1  
 
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  Page 48 (para . 3.26)  
The report states that the simple  average applied MFN tariff increased for all products in India since 
the last TPR.  
Question 15: Can India explain its policy objective for the increase in tariff rates for agricultural 
and non -agricultural products ? 
Reply:  The tariff rate of certain agri cultural and non -agricultural products was increased as a 
response to the price volatility in the domestic market and as a measure of balancing the interests 
of consumers and domestic farmers/manufacturers. Moreover, changes in applied tariffs are within 
India's bound rate commitments at the WTO.  
Question 16: Can India explain its policy objective for the increase in tariff rates on clothing from 
10% to 19.6%?  
Reply: Clothing manufacturing is a significant economic activity in India in terms of employment, 
investment and its share in manufacturing. Tariffs are prescribed taking into account all relevant 
factors, including India 's international obligations, such as bound rate commitments, and after 
extensive deliberation. The decision on tariff ra tes on clothing has also been guided by these 
considerations.  
Page 51 (para . 3.38)  
The report states that India grants preferential treatment on imports originating in regions with 
which it has negotiated preferential agreements. It mentions that in some agreements ( SAFTA), the 
number of duty -free lines exceeds 99% while with others (MERCOSUR), the number of duty -free 
lines is 3%, and the preferential tariff is slightly lower than the average MFN tariff.  
Question 17: Can India explain what determines the coverage and margin of preference it provides 
to trading partners?  
Reply:  Coverage and Margin of Preference are determined, inter alia , by a number of factors such 
as the reciprocity by trading partner, export interests in the trading partne r, feasibility of possible 
value chains, domestic sensitivity for stakeholders, overall ambition in other areas of negotiations 
etc., including whether it is a comprehensive agreement or a limited one.  
Question 18:  Could India elaborate on how it determine s the level of tariff liberalization in its 
various RTAs and what factors explain its lower level of ambition for the preferential treatment of 
agricultural products under these agreements?  
Reply:  The level of tariff liberalization is contingent on, inter alia, many factors like the reciprocity 
by trading partner, export interests in the trading partner, domestic sensitivity for stakeholders, 
overall ambition in other areas of negotiations etc.  
Page 55 ( para. 3.53)  
Paragraph 3.53 notes that import restrictions can be imposed to prevent "the traffic of arms, 
ammunition, and implements of war. "  
Question 19: Could India please provide details of its import licensing requirements for these types 
of goods and, if availab le, links to the relevant laws and regulations?  
Reply:  The import licensing procedure is laid down in para. 2.50 and 2.51 of the Handbook of 
Procedure (2015 -20). For import of items which are under the 'Restricted ' list of imports, an importer 
may submit an online application form available on DGFT 's website. The online applications are 
considered in a monthly m eeting of the Exim Facilitation Committee, consisting of representatives 
of Technical authorities and Departments/Ministries concerned. In the case of arms and 
ammunitions, which are restricted for import and where the end user is the Government 
department /organization, import licen ces are granted on the basis of 'no objection certificate ' from 
the end user. Similarly, import of the arms and ammunition and its parts are also allowed to Arms WT/TPR/M/403/Add.1  
 
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  and Manufacturer/Dealer on the basis of their entitlement as in the  arms Manufacturing/ dealership 
licence issued by the Central/State Governments. Further, para. 2.46 of this Handbook of Procedure 
lays down the policy/procedure for import of ammunition by licen ce/authori zed arms dealers.  
Page 65 ( para. 3.86)  
It is noted that India initiated 233 anti -dumping duty investigations during the period of review 
(2015 -2019) which is a significant increase from the 82 anti -dumping investigations initiated from 
2011-2014.  
Questions 20: Could India explain the reasons for this  large increase in the number of 
investigations?  
Reply:  Directorate General of Trade Remedies (DGTR) of India initiates anti -dumping investigations 
on the basis of fully documented petitions filed either by, or on behalf of, the concerned domestic 
industry . For an anti -dumping investigation to be initiated, the petitioner must furnish sufficient 
evidence regarding dumping of the goods in question, injury to the domestic industry and a causal 
link between the dumped imports and alleged injury to the domestic  industry. This is done in 
accordance with WTO provisions and t he increase in antidumping investigations is only India 's 
reaction to mitigate the increase in incidence of unfair trade practices.  
Page 72 (Table 3.19, Export restrictions by HS section, 2019 -20) 
Table 3.19 notes that the export of "arms and ammunition " is "free with conditions ".  
Question 21:  Could India please provide details of the attendant conditions, of its export licensing 
requirements for these types of goods and, if avail able, links to the relevant laws and regulations?  
Reply:  The policy conditions as per the export policy for the 6 HS tariff  lines (mentioned in 
Table  3.19) under Chapter 93 for "Arms and Ammunition" are as under:  
Export is "free" subject to the following p olicy conditions : 
(a) License under Arms Act and Rules framed thereunder;  
(b) Certificate from the Archaeological Survey of India certifying that the firearms to be exported 
are not antiques/rare specimens nor manufactured in India prior to 1956; and  
(c) Firearms to be exported, shall bear appropriate marks of identification and proof tests.  
The above policy condition is available in the public domain and can be accessed at the following 
link: https://www.dgft.gov.in/CP/?opt=itchs -import -export . 
Page s 73-74 (para. 3.117)  
It is noted that the Merchandise Exports from India Scheme (MEIS) grants higher "duty credit scrip " 
rates to "industrial products from 'potential winning ' sectors ".  
Question 22: When is a sector considered to be a "potential winning " sector?  
Reply:  The potential winning sectors include items in which both world demand was growing and/or 
where India has been able to export competitively in the recent past. There are mu ltiple embedded 
prior-stage cumulative indirect taxes that the MEIS seeks to refund and in some cases, such taxes 
or duties are industry -specific and state -specific.  
Page s 74-75 (para. 3.122)  
It is noted that the MEIS will end on January 1, 2021 and will b e replaced by the Remission of Duties 
or Taxes on Export Products (RoDTEP).  
Question 23: How will sectors covered by this scheme be prioritized?  
Reply:  The details of the RoDTEP scheme are yet to be notified by the Government.  WT/TPR/M/403/Add.1  
 
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  Question 24: Will this new sc heme provide the same set rates as the MEIS (2%, 3%, or 5% of the 
FOB value of the export)? If not, how will the rates be determined?  
Reply:  The RoDTEP rates shall be based on the recommendations of the RoDTEP Committee, 
specifically constituted by the Government for this purpose. They are yet to be notified.  
Page 77 (para . 3.132)  
The report states that India continues to implement other schem es to promote exports of gems and 
jewellery.  
Question 25:  Can India provide details on the utilization of these schemes?  
Reply:  The utilization details in respect of the aforementioned para. 3.132 is as under:  
  2015 -16 2016 -17 2017 -18 2018 -19 2019 -20 2020 -21 
(Up to Sept 
2020)  
(i) Advance 
Procurement/  
Replenishment of 
Precious Metals from 
Nominated Agencies;  
(ii) Replenishment 
Authorisation for Gems;  
(iii) Replenishment 
Authorisation for 
Consumables  Number of 
authori sations  24 45 63 103 120 7 
(iv) Advance 
Authorisation for 
Precious Metals  Number of 
authori sations  77 63 51 94 76 14 
PART III.  TRADE POLICIES AND PRACTICES BY MEASURE: MEASURES AFFECTING 
PRODUCTION AND TRADE; STANDARDS AND OTHER TECHNICAL REQUIREMENTS  
Page 84 (para. 3.161 ) 
It is noted that "Indian standards are developed by sectional (technical) committees, comprising 
public and private -sector representatives, and academics ". It is also  noted that Indian standards 
may become mandatory if it is stipulated in a contract or referred to in a piece of legislation or in a 
Quality Control Order issued by the DPIIT.  
Question 26: Can India explain the selection process for public and private -sector representative 
to participate in these committees?  
Reply:  The committee structure of BIS seeks to bring together all those with substantial interest in 
a particular field, w herever possible, by having a balanced representation from all the stakeholders 
(industry, academic, research institutions, scientific organizations, regulatory bodies, testing 
laboratories, Ministries/Departments under Government, etc.). This approach aim s to achieve a wide 
measure of consultation and support in standards formulation work. Membership in technical 
committees is open to any organization or an individual expert subject to limitations on the workable 
size of the committees and to balanced repr esentation of all stakeholders ' interests. Participation of 
stakeholders are reviewed periodically and all technical committees are reconstituted every 3 years.  
Question 27:  Can India confirm at which step of the process is the decision to make Indian 
standards mandatory taken? For example, once the draft standard is adopted by the Division Council.  
Reply:  An Indian Standard gets established after adoption by the Divisional Council and publishing 
of notification in the official gazette. Once the Indian Standard is published in the official gazette, 
then Central Government may consider it for bringing under mandatory BIS certification under the 
provision of BIS Act, 2016 after due consultations with stakeholders, including with international 
stakeholders through notification of draft TRs to the WTO TBT Committee.  WT/TPR/M/403/Add.1  
 
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  Question 28:  Considering the voluntary nature of standards, stakeholder 's views and 
recommendations on a specific standard may ultimately differ should the standard be unexpectedly 
made mandatory. Do stakeholders have further opportunities to comment on a standard once the 
decision is taken to make it  mandatory?  
Reply:  Standards are not made mandatory unexpectedly. It is finalised after undertaking extensive 
consultations with the stakeholders. Quality control orders as well as other technical regulations 
issued by various Ministries for making standar ds mandatory are done after extensive stakeholder 
consultation and are also notified to the WTO TBT Committee so that comments on the same can be 
received and considered.  
Page 85 (para. 3.162 ) 
It is noted that "Technical regulations are formulated in accor dance with the Code of Good Practice 
of the WTO Agreement on Technical Barriers to Trade and by sectoral legal instruments. " 
Question 29: Considering that proposal for standards formulation may lead to either a voluntary 
standard or a mandatory technical regulation (if a Quality Control Order is issued), can India confirm 
if the Procedure for the formulation of standards (as depicted in chart 3.4 on page 84) also follow 
the Code of Good Practice of the WTO Agreement on Technical Barriers to Trade ? 
Reply:  Yes, the procedure for formulation of Indian Standards as depicted in chart 3.4 on page 84 
is aligned with the WTO -TBT– Code of Good Practice.  
Page 85 (para. 3.163 ) 
It is noted that, once technical regulations are finalized as rules, regulations o r Quality Control 
Orders, they are notified to the WTO, and enter into force after a reasonable period of time. The 
"final" nature of these notification makes it impossible for interested foreign parties to make 
suggestions on an Indian standard made voluntary.  
Question 30: Can India explain how submissions made as part of the WTO notification process may 
influence or modify t he content of a mandatory Indian standard once it has been "finalized "? 
Reply: Even after the Indian Standard has been made mandatory, stakeholders can comment on 
the Indian Standard anytime which is then considered by the concerned technical committee.  
Question 31:  Could India please explain how it determines whether it will:  
a) base its technical regulations on domestic Indian standards or international standards; and  
b) accept conformity assessments conducted by ILAC, or similarly accredited, conformity 
assessment bodies outside India?  
Reply : a) India's technical regulations are prepared, adopted and applied in line with its 
commitments under the TBT Agreement.  
b) In India, NABCB and NABL are full members of ILAC as well as signatories to their MRAs. India 
does accept accredited conformity assessment reports/certificates bearing ILAC MRA Mark from 
conformity assessment bodies outside India. For products under Technical Regulations, the 
conformity assessment mechanism, as pres cribed in respective Indian Technical Regulation prevails.  
Question 32:  Could India please describe the scope and purpose of its telecommunications Mutual 
Recognition Agreement with Singapore?  
Reply:  India and Singapore have Mutual Recognition Agreement fo r telecommunications equipment. 
Presently under Phase I, each Party recognises mutual test reports. The scope applies to 
telecommunications equipment including wire and wireless equipment, and terrestrial and satellite 
equipment, whether or not connected t o a Public Telecommunications Transport Network subject to 
the Regulations of each Party.  WT/TPR/M/403/Add.1  
 
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  Page 86 (para. 3.169 ) 
It is noted that India recognized 243 other laboratories (OSLs) to preform conformity assessment 
tests, and that none of the 243 OSLs are located overseas.  
Question 33:  Can India explain the reasons why there are no overseas OSLs?  
Reply:  As on date, there  are no pending application from overseas OSL seeking recognition from 
BIS in compliance to the provisions of Laboratory Recognition Scheme (LRS).  
Question 34:  Considering the increase of mandatory Quality Control Order for substances, the 
one-to-two-year authorization for the ISI symbol, and the impact of these Orders on foreign goods 
entering India, has India considered the accreditation of overseas OSLs?  
Reply: There is a provision under clause 12 of BIS LRS for recognition of foreign labora tories.  
Question 35:  What process would a foreign laboratory follow in order to be accredited?  
Reply: Clause12 of BIS Laboratory Recognition Scheme (LRS) deals with recognition of foreign 
laboratories. Additionally, the decision regarding recognition of f oreign laboratories will be taken by 
BIS taking into account the MRA (Mutual Recognition Agreement) with the concerned nation. BIS 
LRS is available on BIS website  www.bis.gov.in  under laboratories tab.  
3.3 MEASURES AFFECTING PRODUCTION AND TRADE  
3.3.3 Sanitary and Phytosanitary Requirements  
Page 87 ( para. 3.173)  
The report notes that India's legislative framework for food safety, animal and plant health did not 
undergo any major changes since 2015 and that, over the review period, several regulations to 
implement the Food Safety and Standards Act, 2006, were adopted.  
Question 36: Does India have any planned sanitary and phytosanitary regulatory initiatives not 
referenced in the TPR reports that will impact Canadian exports of agriculture, f orestry, or aquatic 
products?   
Reply:  While considering  that this is a broad -based question, India maintains that there are no 
major changes in the SPS regulatory initiatives as is also indicated in the TPR reports. At the same 
time, policy changes made f rom time to time in the SPS regulations are notified to WTO.  
Page s 87-88 (paras. 3.174 -3.177)  
Canada notes that under India 's Plant Quarantine (Regulation of Import into India) Order, 2003, 
plants and plant materials may be imported after an Import (Pest) Risk Analysis (PRA) is conducted, 
which is based on scientific principles. As stated in the Secretariat 's report, products are thereafter 
categorized under Schedule VIII (weeds that require quarantine), among other Schedules. Canada 
equally notes th at in October 2019, India published amendments to its List of Quarantine Weed 
Seeds (Schedule VIII), adding 26 new weed seeds species.  
Question 37: Could India provide the technical justification for the regulation of these newly -added 
species to its Sche dule VIII?   
Reply:  Based on the interceptions of quarantine weeds in the imported consignments, 26 weeds 
were compiled and added which were already regulated on different commodities from specific 
countries in Schedule -VI of PQ Order, 2003. The compiled l ist was notified vide Gazette Notification 
S.O.No.3843(E) dated 24.10.2019. There was no addition of new weed species under this 
notification.  
Question 38: Could India provide the scientific basis for amending the List of Quarantine Weed 
Seeds?  WT/TPR/M/403/Add.1  
 
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  Reply: The weed seeds regulated in PQ Order, 2003 are of quarantine significance to India and it 
was compiled under Schedule -VIII to ensure the freedom from exporting country to safeguard 
biosecurity of the country.  
Question 39: Could India clarify regarding the presence of the newly -added weed seeds species in 
India's territory?  
Reply: Most of the species added in the revised list under Schedule -VIII are not reported in India 
and the revised list under schedule VIII is based on scientific risk assessment.  
Canada also notes that  India has not notified the amendment to the WTO Committee on Sanitary 
and Phytosanitary Measures (SPS Committee). The movement of the weed seed species into 
Schedule VIII as quarantine weed species has a significant impact on trade.  
Questi on 40:  Could India confirm that the amendment will be notified to the WTO SPS Committee, 
pursuant to WTO Agreement on the Application of Sanitary and Phytosanitary Measures transparency 
obligations?  
Reply: India is notifying all the amendments of import r egulations to WTO -SPS committee. However, 
this notification was not sent to WTO, as these weeds were already being regulated under PQ Order, 
2003. It was only a compilation of existing quarantine weed species regulated under Schedule -VI 
and updation of Sch edule -VIII of PQ Order, 2003. Further, to facilitate the trade, as one -time 
measure, 336 containers of pulses imported from Canada, contaminated with quarantine weeds 
were granted relaxation after removal and destruction of quarantine weeds at port of entr y in India.  
Page s 90-91 (paras. 3.192 -3.195)  
Question 41: Could India further elaborate on the decision -making process to regulate a given GMO 
product in India, including providing an explanation of the scientific basis upon which the decision is 
made?  
Reply:  Regulation of GMO products are dealt as per "Rules for the Manufacture, Use, Import, Export 
and Storage of Hazardous Microorganisms/Genetically Engineered Organisms or Cells, 1989 (Rules, 
1989) " notified under the Environment (Protection) Act,  1986. Details are available on website 
www.geacindia.org .  
It is Canada 's understanding that  India is in the process of developing a regulatory framework 
for genetically modified (GM) food products, under which the Food Safety and Standard Authority of 
India (FSSAI) would conduct food safety assessments and grant approvals.  
Question 42: Could In dia elaborate  on the status of the regulatory developments and anticipated 
implementation timelines for the GM food regulations? Could India advise whether they intend to 
include products developed using gene -editing as part of this framework?  
Reply: The regulation of all activities related to GMOs and products derived from GMOs is governed 
by Rules for the Manufacture/Use/Import/Export and Storage of Hazardous Microorganisms, 
Genetically Engineered Organisms or Cells, 1989  under the provisions of the Environment 
(Protection) Act, 1986. The Food Safety and Standards Act, 2006 empowers the Central Government 
to formulate regulations concerning genetically modified articles of food. Any rules or regulations 
made in this regard would be notified in the Gazette of India and will also be accessible at FSSAI 
Portal, www.fssai.gov.in . 
Question 43: Could India distinguish between the role played by that Genetic Engineering Appraisal 
Committee an d the FSSAI in the assessment and approvals of GM food products, and provide details 
on the process and requirements to seek authorizations, both for the cultivation of GM products but 
also for the import of GM food products?  
Reply: The GEAC regulates the production, sale, import and use of food stuffs and additives etc. 
consisting of genetically engineered organisms or cells  with reference to their impact on 
environment, nature and health. Food Safety and  Standards Authority of India lays down standards 
for articles of food, including GM foods, to regulate their manufacture, storage, distribution, sale and WT/TPR/M/403/Add.1  
 
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  import,  to ensure availability of  safe and wholesome food for human consumption and for matters 
connected therewith or  incidental thereto. The process an d requirements for authorization are laid 
down in the respective regulations.  
Page 95 ( para. 3.210)  
Paragraph 3.210 of the report notes, "An extra payment (bonus) above the MSPs, may also be given 
to encourage farming of certain crops in certain years (e.g. oilseeds and pulses 2016/17); in 
2019/20, no bonuses were paid ". 
Question 44:  Could India clarify whether it has plans to provide an extra payment (i.e. bonus) to 
encourage farming of certain crops, including pulses, in the coming cropping seasons an d will there 
be any changes in the amount of this extra payment?  
Reply:  Currently, India does not have any plan to provide bonus for crops including pulses.  
Page 101 ( para. 3.234):  
Under the Make in India program, global tender enquiries cannot be issued for tenders of up to INR 
2 billion, or such limit as may be prescribed by the Department of Expenditure from time to time.  
Question 45: Could India provide more detail on how this value of INR 2 billion was determined?  
Reply:  There is no bar on issuance of global tender enquiries to any value. Only for small value up  
to INR 2 billion, the approval of the competent authority needs to be ob tained before issuance of 
global tender enquiries.  
Page 104 (para. 3.243 ) 
Under  the Public Procurement (Preference to Make in India) Order, if there is sufficient local supply 
and competition in the domestic market, no matter the value of the contract, only local suppliers 
are eligible to bid.  
Question 46: How is it determined if there is 'sufficient local supply and competition in the domestic 
market '? 
Reply:  The notification of items with 'sufficient local supply and competition in the domest ic market ' 
is issued by designated nodal Ministries under the Public Procurement (Preference to Make in India) 
Order . Only those items are notified in this category for which there are adequate number of Class -
I local suppliers and in procurement of which Class -I local suppliers submit competitive bids based 
upon past tendering experience.  
Intellectual Property Rights  
Page 105 ( para. 3.246)  
The Secretariat Report notes that among the objectives of India 's 2016 National IPR Policy, the 
policy aims to raise awareness on IPR.  
Question 47: What programs have been developed for this purpose since 2016 and how have they 
been implemented?  
Reply: India has entered into Memorandum of Understanding (MoU) with the IP offices of various 
countries. C urrently, there are 12 active MoUs with IP offices of United States of America (USA), 
Denmark, Portugal, European Union, Canada, Sweden, France, Japan, Singapore, United Kingdom 
and WIPO. Further, a Cell for IPR Promotion and Management (CIPAM), under Depa rtment for 
Promotion of Industry and Internal Trade (DPIIT) has been created for awareness among various 
stakeholders and enforcement agencies. Since inception in 2017, CIPAM along with the office of the 
Controller General of Patents, Designs, and Trade Ma rks (CGPDTM) has carried out awareness events 
with different target groups:  WT/TPR/M/403/Add.1  
 
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  S. No.  Target group  No. of program mes 
1. Schools, Colleges, Universities  342 
2. Industry  294 
3. Enforcement Agencies  114 
Page 107 ( para. 3.253)  
On the subject of trade secrets, the Secretariat Report notes that India has no specific legislation to 
protect trade secrets, and that parties rely on contract clauses of non -disclosure to safeguard trade 
secrets. Also, per the Secretariat report, "under  the Information Technology Act, 2000 (Section 72A), 
the disclosure of unauthorized information may be punished by a fine (up to INR 500,000) and/or 
by a three -year imprisonment term; however, this protection is universal, not limited to the IT 
industry. T he protection of trade secrets is identified in the NIPR Policy as a prerequisite to 
strengthen the IPR legal framework. A toolkit to help stakeholders protect trade secrets was 
developed by the CIPAM in 2019. " 
Question 48:  Does India anticipate new policy  developments domestically with respect to protecting 
trade secrets?  
Reply:  National IPR Policy identifies Trade Secret as an important area of study and research for 
future policy development. Accordingly, a tool kit on Trade Secrets has been prepared by Cell for 
IPR Promotion and Management (CIPAM) in collaboration with Global Trade Secret Council for benefit 
of the industry. At present, no specific proposal for bringing in a dedicated legislation for trade 
secrets is being considered.  
Question 49:  Can In dia clarify whether there are alternate ways, beyond the Information 
Technology Act, where criminal sanctions are made available for the breach of trade secrets? 
Furthermore, can India provide information on whether there have been cases perused related to  
trade secrets under the Act, and what the results may have been?  
Reply:  India covers trade secrets under the common civil and criminal laws. In addition to remedies 
such as injunctions or damages available under the Information Technology Act, India allo ws for 
criminal proceedings under the Indian Penal Code 1860, such as for criminal misappropriation, 
breach of trust and theft of property. Information on criminal enforcement is compiled by the 
National Crime Record Bureau and it is available on the websi te http://www.ncrb.gov.in . 
Question 50:  Noting that the CIPAM has developed a toolkit on trade secret protection for 
stakeholders, can India provide information on stakeholder feedback regarding their protection of 
their trade secrets? What types of challenges do stakeholders encounter regarding the protection of 
their trade secrets?  
Reply:  India has developed a toolkit for creating awareness among Industry and the same is shared 
on CIPAM 's website. As India is not working on any specific legislation in Trade Secrets, it has not 
sought any feedback regarding the protection of trade secrets from any of its concerned 
stakeholders.  
Page 108 ( para. 3.256)  
The Secretariat Report indicates that "protected IP works may be e xploited through compulsory 
licences in the public interest. No compulsory licences were granted over the review period ." 
Question  51: Canada would welcome greater clarity on whether compulsory licen ces are available 
for various types of protected IP (e.g.  patents, copyrights, trademarks)?  
Reply:  Under the Copyright Act, 1957 and Indian Patents Act, 1970 (as amended), compulsory 
licences can be granted in certain cases.  
Page 109 ( para. 3.259)  
The Secretariat Report notes that since 2016, start -ups (resident and non -resident) and Patent 
Cooperation Treaty applicants may request expedited patent examination.  WT/TPR/M/403/Add.1  
 
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  Question 52:  Does IP India plan to extend this expedition to other categories of patents, such as 
"green " or "clean" technology?  
Reply:  Facility for expedited examination of patent as provided under Rule 24C of the Patents Rule, 
2003 is provided to the applicant, not to any specific technology.  
Page 109 ( para. 3.260)  
The Secretariat Report indicates that the 2017 Trade Marks Rules introduced modalities to determine 
well-known marks. The Report further notes that Trademark Registry has the authority to de termine 
if marks are well -known. Previously, only the Indian courts could determine if a mark was 
well-known; therefore, only marks recognized by a court decision, as well -known marks, could be 
registered.  
Questions 53: Can India provide additional informa tion on the level of protection afforded to 
non-registered well -known trademarks?  
Reply: A 'well known ' trademark is protected in a proceeding for registration of trademarks even if 
it is unregistered under Section 11 of the Trade Marks Act, 1999. Further,  the owner of the 
'well-known ' trademark can also seek remedy under the common tort law of passing -off. 
Questions 54: Does the Trademark Registry provide an opportunity for public opposition for every 
well-known mark application prior to designating the mark as a well -known mark?   
Reply: Yes. Before accepting and including any mark in the list of well -known trademarks , the mark 
is advertised in Trademarks  Journal and anyone from the general public may file objection against 
such applicati on for well -known trademarks  within 30 days.  
Page 110 ( para. 3.263)  
The Secretariat Report notes that India encourages innovation by promoting IP generation by 
start-ups, MSMEs, and "less visible and silent IP generators ", such as farmers.  
Questions 55: Can India provide additional information on the types of outreach or education 
initiatives undertaken to facilitate information sharing on promoting IP generation to start -ups, 
MSMEs, and less visible IP generators, such as farmers?  
Reply: A major focus of awareness programs in industry has been towards Micro, Small, and Medium 
Enterprises (MSMEs) and start -ups. This awareness drive includes both short -term and long -term 
programmes. A number of long term intensive IPR trainings for MSME Office rs have been organi zed 
to enable them to provide IPR related services to MSMEs. Additionally, about 176 IPR short -term 
awareness workshops have been conducted for various state MSME clusters in India. Similarly, for 
start-ups and entrepreneurs 80 awareness  programmes have been conducted wherein they were 
made aware about more IPRs, IP commerciali zation and IP strategy for businesses. These have been 
conducted in association with industry chambers, universities and have been majorly facilitated 
through the T echnology and Innovation Support Centres (TISCs) established in India.  
Questions 56: Does India provide specific support of or recognitions for female innovators and 
entrepreneurs in India as IP generators? If not, does India foresee implementing any such measures?  
Reply:  To support female innovators, India in 2019 amended its patent rules and brought female 
innovators under the category of list of expedited examinations. Now, female innovators can also 
enjoy the benefits of expedited examination. Further, for female entre preneurs as start -up entities, 
India launched a Start -up Intellectual Property Protection Scheme (SIPP), whereby, fee for engaging 
facilitators for filing of IP application with Indian IP office is reimbursed and facility of expedited 
examination is provid ed along with rebate in patent/trademark filing fees.  
Page 110 ( para. 3.264)  
The Secretariat Report indicates that the number of trademark applications filed by non -residents 
remained low, accounting for 5.4% of the total filings.  WT/TPR/M/403/Add.1  
 
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  Question 57: Noting the significantly low number of trademark applications filed by non -residents, 
would India be able to provide additional information on why trademark applications by 
non-residents are so low in the report?  
Reply: After India acceded to Madrid Protocol system o f WIPO, majority of the non -resident Indian 
prefer to file application through Madrid International application system.  
Year Indian 
applicant  Foreign 
applicant  Total 
received 
vide 
national 
mode  % of 
foreign 
applicant  Application 
designated 
to India 
through 
Madrid  Total 
foreign 
application 
(national + 
Madrid 
mode) % of 
foreign 
applicant 
(incl. 
Madrid 
mode) 
2011 -12 169,602 13,986 183,588 7.6 0 13,986 7.60%  
2012 -13 179,436 14,780 194,216 7.6 0 14,780 7.60%  
2013 -14 184,140 15,865 200,005 7.9 3,138 19,003 9.40%  
2014 -15 202,654 7,847 210,501 3.7 8,716 16,563 7.60%  
2015 -16 267,390 15,670 283,060 5.5 12,221 27,891 9.40%  
2016 -17 266,740 11,440 278,180 4.1 9,713 21,153 7.30%  
2017 -18 247,734 11,835 259,569 4.6 13,472 25,307 9.30%  
2018 -19 310,116 13,682 323,798 4.2 14,778 28,460 8.40%  
2019 -20 320,940 13,865 334,805 4.1 14,004 27,869 8.00%  
Note:  India acceded Madrid Protocol on  08.07.2013.  
In addition to this, due to various IPR awareness program mes across the country, resident players 
are getting more aware of their rights and are filing increasingly a greater number of applications to 
protect their IPR. Hence the relative gap between resident and non -resident in terms of application 
filed. 
Page 111  (para. 3.267)  
The Secretariat Report notes that counterfeiting and piracy are challenges for India to further 
develop e -commerce, and that customers are encouraged to act as whistle -blowers. Additionally, 
the report notes that several measures to address counterfeiting and piracy are identified in the 
draft National E -commerce Policy, which is still under consultation.  
Question 58:  Can India provide additional information on the process in place for whistle -blowers 
to report counterfeits or acts of piracy?  For example, is there a website where whistle -blowers may 
file concerns?  
Reply:  The centralized public grievance redressal and Monitoring System ( https://pgportal.gov.in/)  
allows consumers to submit grievances including those related to sale of counterfeit products or acts 
of piracy, to the government. Grievances received are examined and resolved, in consultation with 
specified e -commerce entities. Further, consumers also raise such concerns by direc tly writing to 
concerned Departments, and these are taken up with Industry, from time to time, for consolidated 
resolution. In addition, the National Consumer Helpline (NCH) also handles such grievances.  
Question 59:  Can India provide additional informatio n on the consultations to date on its National 
E-Commerce Policy, in particular whether input has been received from rights -holders and users?  
Reply:  The draft National E -commerce policy document has been placed in public domain for 
comments/suggestions fr om public and various stakeholders including  companies, Industry 
associations and think tanks. Comments received, inter-alia, include, suggestions on treatment of 
counterfeit goods. The finalization of the policy is in process.  WT/TPR/M/403/Add.1  
 
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  Page 111 ( para. 3.268)  
The Secretariat Report indicates that currently, online intermediaries (e.g. Internet service 
providers, search engines, and e -commerce marketplaces) may claim safe -harbour protection under 
the Information Technology Act, 2000 (Section 79), and the Copyrig ht Act, 1957 (Section 52(1)).  
Question 60: Can India clarify if these safe -harbour provisions apply only in the case of copyright, 
and what level of liability, if any, online intermediaries have with respect to counterfeit goods sold 
on their e -commerce ma rketplaces?  
Reply:  As clarified by the Delhi High Court, Section 79 of the Information Technology Act 2000, 
does not provide blanket immunity from liability to online intermediaries. With regard to Copyright 
Act 1957, Section 52(1) (b) and (c) prescribes c ertain acts, such as transient or incidental storage 
of copyright content, or providing electronic links or access or integration by any person, if such 
person is not expressly prohibited by the copyright owner, to not be considered as infringement. If 
such person receives a complaint from the copyright owner conveying that such transient or 
incidental storage is an infringement, and that such person should refrain from facilitating such 
access within 21 days of receiving such notice, liability entails on t he intermediary, only if such 
infringing content is still not removed. For e -commerce marketplaces, the Consumer Protection 
(e-Commerce) Rules, 2020, provide that the safe harbour provisions are available only if they comply 
with the requirements of Rule 5  of the said rules.  
Page 111 ( para. 3.269)  
To combat online infringement, the Secretariat Report notes that "in 2019, the High Court of Delhi 
allowed the use of dynamic injunctions; thus, once an injunction order is granted against a rogue 
website, a copyright owner may request the High Court to extend this injunction to mirror rogue 
websites. " 
Question 61: Can India provide information on its review and enforcement process and approaches 
to identifying mirror rogue websites?  
Reply: The Information Tec hnology (IT) Act, 2000 has provisions for removal of objectionable online 
content. Section 69A of the IT Act, 2000 empowers Government to block any information  generated, 
transmitted, received, stored or hosted in any computer resource in the interest of  sovereignty and 
integrity of India, defence of India, security of the State, friendly relations with foreign states or 
public order or for preventing incitement to the commission of any cognizable offence relating to 
above. detailed process for blocking und er this section is notified as "The Information Technology 
(Procedure and Safeguards for Blocking for Access of Information for Public) Rules, 2009 ". No 
Website is blocked suo -moto by the concerned ministry. Any request received  for blocking from 
nominated  nodal officers from Ministries/States, which is examined by an Inter -Ministerial  
Committee comprising of Joint Secretary level officers and based on  recommendation of this 
Committee, orders for blocking are issued with the approval of  competent authority.  Blocking is also 
done if a competent court issues such order.  
4. TRADE POLICIES BY SECTOR  
4.1 Agriculture   
Page 116 ( para.  4.7) 
In the secretariat report it stated that:  
"Similarly, for products subject to TRQs, quota quantities and in -quota rates are adjusted from time 
to time to meet domestic needs. India provides additional market access through MFN TRQs on 
imports of powdered milk and cream, maize, and edible oils (sunflower seed, safflower, rape, colza 
and mustard). Since 2018, the quota fill rates  have been negligible, except for rape, colza and 
mustard oils, and fractions thereof, for which the fill rate was 100%. " 
Question 62: Could India explain why the quota fill rates for products other than rape, colza and 
mustard oils have been negligible si nce 2018? Please provide this information for each quota.  WT/TPR/M/403/Add.1  
 
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  Reply: During 2018 -19, for sunflower seed oil, the prevailing MFN applied rate was below the 
in-quota bound TRQ rate while for other products viz. milk and maize, no applications were received 
for import under TRQ licen ce.  
4.4.1 Financial Services  
Page 137 ( para. 1) 
4.83. There were no changes to foreign investment policy in the sector since the last Review, which  
is restricted to 74% of the paid -up share capital of the bank (up to 49% through the automatic route  
and up to 74% with prior government approval). For investment in the PSBs, the limit is up to 20%  
with prior government approval.  
Question 63: How does this cap interact with the Wholly -Owned Subsidiary track?  
Reply: In terms o f FDI Policy, the aggregate foreign investment in a private bank from all sources 
will be allowed up to a maximum of 74 % of the paid -up capital of the bank. At all times, at least 
26% of the paid -up capital will have to be held by residents, except in rega rd to a wholly -owned 
subsidiary of a foreign bank. Foreign banks regulated by banking supervisory authority in the home 
country and meeting Reserve Bank 's licensing criteria will be allowed to hold 100 % paid up capital 
to enable them to set up a wholly -owned subsidiary in India.  
Question 64: Can a country choose whether to enter as a Wholly -Owned Subsidiary or under this 
FDI limit?  
Reply: As per FDI Policy, a foreign bank may operate in India through one  of the three channels 
viz., (i) branches (ii) a wholly -owned subsidiary and (iii) a subsidiary with aggregate foreign 
investment up to a maximum of 74 % in a private bank.  
Page 142 ( para. 2) 
4.104. The key changes brought in by the Insurance Laws (Amendment) Act, 2015 include raising  
the FDI limit in the sector, from 26% to 49% automatically (rather than requiring government  
approval), with control remaining with Indian shareholders; permitting foreign re -insurers to open  
branches for re -insurance business in India (up to the 49% FDI limit); and allowing insurance  
companies to raise capital through capital instruments other than equity. Furthermore, since  
2 September 2019, up to 100% foreign equity is permitted in insurance intermediation services,  
subject to verification by the IRDAI and registration and licensing requirements and conditions.  
Question 65: How does India apply the FDI cap to branches (i.e., how would the 49% FDI limit be 
calculated for a foreign re -insurance branch that is not legall y distinct from its foreign parent 
company)?  
Reply: There is no stipulation of FDI for branch office of foreign reinsurance company in India. The 
assigned capital of the branch office of foreign re -insurer shall not be less than the amount specified 
at the  time of grant of certificate of registration. This amount shall be invested in accordance with 
the IRDA (Investment) Regulations, 2000 as amended from time to time.  
Page 166 ( para.  4.8) 
In its mentioned in the secretariat report that:  
"Certain products may be imported subject only to minimum import prices. Under the Foreign Trade 
Policy, at the end of 2019, such agricultural products were cashew and areca nuts, black and green 
pepper, and cardamom (Section 3.1.5.1). " 
Question 66: Could India exp lain, why imported cashew and areca nuts, black and green pepper, 
and cardamom are subject to minimum import prices?  
Reply: Import of most of agricultural items is free. Necessary intervention  for these specified 
products is made for ensuring import of qua lity food products.  WT/TPR/M/403/Add.1  
 
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  Page 166 ( para.  4.9) 
In its mentioned in the secretariat report that:  
"Restrictions are also used to regulate imports, including of agricultural products. For instance, the 
Government recently prohibited the import of cashew nut kernels, after having subjected imports to 
minimum import prices. " 
Question 67: Could India explain why it prohibits the import of cashew nut kernels?  
Reply: Import of cashew nut -in shells is "free". Import of cashew kernels, broken or whole, is also 
"free", subject to certain conditions for ensuring import of quality food product.  
According to the secretariat report:  
"To protect the livelihood of farmers from cheap imports, quantitative restrictions on imports of peas 
of up to 100,000 tonnes per year were imposed in April months, 2015, initially for three and then 
extended three times. On 28 March 2020, quantitative restrictions on imports of peas were 
announced, of up to 150,000 tonnes (for green peas and other 21.8 peas) and 400,000 tonnes (for 
pigeon pea s) for 2020 " 
Question 68: Could India explain the effects these quantitative restrictions had on the prices 
received by farmer for pulses, and more precisely for gram, which is commonly substituted for dried 
peas?  
Reply:  Incomes of or prices received by farmers depend on a number of factors including cost of 
production, market demand and supply situations, trade policy measures of other countries, etc. 
Therefore, it may be difficult to isolate the effect of quantitative restrictions on the inc omes of or 
prices received by the farmers.  
Question 69: Could India elaborate on the effects of these policies have had on the incomes of 
farmers?  
Reply:  Incomes of or prices received by farmers depend on a number of factors including cost of 
production, market demand and supply situations, trade policy measures of other countries, etc. 
Therefore, it may be difficult to isolate the effect of quantitative r estrictions on the incomes of or 
prices received by the farmers.  
Question 70: Given that prices received by farmers for pulses are protected by the Government of 
India's minimum support price policy, could India explain why there is also a need to protect prices 
received by farmers from imports?  
Reply: MSP is intended to provide minimum remunerative prices to the farmers so that they do not 
have to resort to distress sales. Import policy is reviewed on the basis of market supply and demand 
situation in the domestic market.  
Question 71: Could India elaborate as to when these quantitative restrictions will be removed?  
Reply: The Government regularly undertakes review of such measures and a decision will be taken 
based on the overall demand -supply situation in the domestic market.  
Question 72: Could India elaborate on the reasons it set yellow dried peas imports to zero?  
Reply: During the current year (2020 -21), a total quantity of 33,832 MTs of yellow peas have been 
imported (01.04.2020 - 21.11.2020).  WT/TPR/M/403/Add.1  
 
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  Page 177 (para.  4.11)  
According to the secretariat report:  
"According to the Agriculture Export Policy (AEP), the objectives are: to increase agricultural exports 
to reach a value of around USD 60 billion by 2022 and USD 100 billion in the following few years. " 
Question 73: Could India provide more information on its actions to increase agriculture exports to 
USD 60 billion by 2022 and USD 100 billion in the following few years?  
Reply: In order to increase agriculture exports, a number of measures including stable export policy, 
liberalised import of agricultural p roducts for value addition, focus on developing infrastructure, 
focus on high -value, value -added and organic products, etc., are being adopted.  
Question 74: Could India explain how this objective to significantly increasing agricultural exports 
is compatib le with India 's policies to restrict agricultural imports (both in the market access, SPS, 
technical barriers, and domestic support)?  
Reply: The measures for enhancing export of agricultural products include stable export policy, 
liberalised import of agr icultural products for value addition, focus on developing infrastructure, and 
focus on high -value organic products. As far as import of agricultural products is concerned, import 
of most of the tradeable agricultural products is free.  
Page 117 ( para. 4.12) 
Paragraph 4.12 of the report notes, "Acknowledging that frequent use of export and import 
restrictions tends to reduce certainty in policy, the Agriculture Export Policy aims to provide 
assurance that processed agricultural products and organic products  will not be subject to export 
restrictions, while imports of agricultural products will be liberalized for the purposes of value -added 
production and export of processed goods. " 
Question 75:  Could India clarify what product imports are more likely to be liberalized and what 
products are less likely?  
Reply: The Government regularly undertakes review of the overall demand -supply situation in the 
domestic market. Hence, it will be speculative to  "clarify what product imports are more likely to be 
liberalized and what products are less likely".  
Page 118 ( para. 4.18)  
Paragraph 4.18 of the report notes, "India's subsidy for food accounts for almost half of the 
Government's total explicit subsidies (Table 3.25). An additional third of total explicit subsidies are 
accounted for by the subsidy for fertilizers. Electricity and water consumption are also subsidized. 
Recent independent research has estimated that the size of the Government's sub sidies for 
agriculture has been rising over time, and was at around 8% of agricultural output in 2015/16, while 
public -sector investment in the sector has been declining.  
Question 76:  Could India clarify whether the government plans to continue with signif icant explicit 
subsidies to support the agriculture sector, despite public -sector investment in the sector has been 
declining?  
Reply: India's subsidies are in accordance with its WTO Commitments. To support agriculture, the 
government has adopted a multi-pronged strategy including attracting private investment, 
strengthening extension services, addressing structural weaknesses, improving resource efficiency 
and productivity. Further, the Agriculture Infrastructure Fund (AIF) has been announced in yea r 
2020 by the government for catering to the financing needs of the sector for post -harvest 
management infrastructure and community farming assets in order to improve agriculture 
infrastructure in the country.  WT/TPR/M/403/Add.1  
 
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  Page s 118 and 129 ( paras.  4.16, 4.17 and 4.46)  
According to paragraph s 4.16, 4.17 and 4.46 of the secretariat report India has in place numerous 
export subsidies program mes.  
Question 77: Could India elaborate on its plans to conform to the Nairobi Ministerial Decision on 
export subsidies?  
Reply:  The Nairobi Ministerial Decision on Export Competition (2015) allows developing countries 
including India to provide export subsidies under Article 9.4 of the Agreement on Agriculture until 
the end of year 2023.  
Question 78: Could India explain when will the m easures mentioned in these paragraphs will be 
eliminated?  
Reply: The Nairobi Ministerial Decision on Export Competition (2015) allows developing countries 
including India to provide export subsidies under Article 9.4 of the Agreement on Agriculture until 
the end of year 2023.  
Page 118 ( para.  4.18)  
According to the secretariat report:  
"An additional third of total explicit subsidies are accounted for by the subsidy for fertilizers. 
Electricity and water consumption are also subsidized.  
Question 79: As input subsidies are widely recognized by most economists as the most trade 
distorting type of support, could India explain the effect of such a significant amount of input 
subsidies in its domestic market and the international markets?  
Reply: With low market surplus, subsistence farming, low per farmer support along with dominance 
of low -income or resource -poor farmers, India believes that input subsidies have insignificant trade 
distorting impact. These are also consistent with Article 6.2 of the Agreement on Agriculture.  
Question 80: Could India indicate if it is considering other forms of support to reduce the trade 
distorting effects of its input policies?  
Reply: India has continuously undertaken steps to rationalise the input subsidies i n recent years. 
Direct Benefit Transfer (DBT) of fertiliser subsidies is a step in this direction.  
Page 120 (Table 4.3)  
In table 4.3 of the secretariat report, it is indicated that the minimum support price for gram 
increased from INR 3,175 per quintal in 2014 to INR 4,875 per quintal in 2019.  
Question 81: Could India explain what factors contributed to this 54% increase in the minimum 
support price for Gram?  
Reply: Minimum Support Prices (MSPs) are announced by the Government following the 
recommendations of the Commission for Agricultural Costs and Prices (CACP), which takes into 
account various factors including the cost of cultivation/production, changes in input prices, 
input/output price parity, inter -crop price parity, effects on the cost of living, e ffects on general price 
level, parity between prices paid and prices received by farmers, etc.  
Question 82: Could India provide information on the factors that contributed to the increase in the 
minimum support price for the other types of pulses (Arhar, Moong, Urad and lentils)?  
Reply: Minimum Support Prices (MSPs) are announced by the Government following the 
recommendations of the Commission for Agricultural Costs and Prices (CACP), which takes into 
account various factors including the cost of cultivation/production, changes in input prices, WT/TPR/M/403/Add.1  
 
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  input/output price parity, inter -crop price parity, effects on the cost of living, effects on general price 
level, parity between prices paid and prices received by farmers, etc.  
Page 120 ( para.  4.25)  
According to the secretariat report:  
"The Gover nment, through its agencies such as the FCI and others, intervenes when the price of 
these products falls below the MSP, and purchases crops at the MSP. In practice, however, as noted 
by the Taskforce of the NITI Aayog on Agricultural Development, farmers are only guaranteed MSPs 
in regions in which the government agencies procure, and only for commodities that are procured. 
In other regions, even for commodities covered, not all farmers are able to sell their produce at the 
MSP." 
Question 83: Could India e xplain why farmers in all regions are not eligible to receive the MSP?  
Reply: Farmers of all regions in the country are eligible to receive MSP. The marketable surplus 
offered by the farmers that meet prescribed specifications is procured under MSP operat ions. 
Question 84: Could India explain why all farmers are not able to sell their produce at the MSP for 
commodities?  
Reply: Farmers of all regions in the country are eligible to receive MSP. The marketable surplus 
offered by the farmers that meet prescrib ed specifications is procured under MSP operations.  
Page 121 ( para.  4.26)  
According to the secretariat report:  
"In September 2018, the Government launched an umbrella scheme, the Pradhan Mantri Annadata 
Aay Sanrakshan Abhiyan (PM -AASHA), which is aimed at protecting farmer incomes through the 
Price Support Scheme (PSS) for pulses, oilseeds and copra and, through eit her the PSS or a "price 
deficiency payment" (under the Price Deficiency Payment System), for all oilseeds for which MSPs 
are notified. The price deficiency payment ensures that, if the market price falls below the MSP, the 
difference is paid directly to pr e-registered farmers that sell their produce on the notified market. 
This ensures that the procurement agencies do not need to intervene when the market price falls 
below the MSP, thereby reducing the Government's subsidy bill as well as the cost of storag e.  
Question 85: Could India elaborates on how many farmers are eligible for PSS payments and what 
are the eligibility criteria to register?  
Reply: Under the PM -AASHA, only farmers producing pulses, oilseeds and copra of prescribed 
specifications are elig ible for PSS payments. Further, farmers from only those states that are willing 
to avail PSS for a marketing season for a crop are eligible under the scheme.  
Question 86: Could India elaborate on what "notified market " means in the context of that 
paragrap h? 
Reply: Notified market means Agricultural Produce Market Committee (APMC) yards.  
Question 87: Could India indicate what part of its total production of pulses, oilseeds and copra is 
eligible for the Price Deficiency Payment System?  
Reply: Only the oilseeds for which MSP is declared are covered under PDPS. Pulses and copra are 
not eligible for coverage under the PDPS.  
Question 88: Could India indicate if PSS payments were reported in its 2018 domestic support 
notification, and if so how it was classified and in which supporting table is this information provided?  WT/TPR/M/403/Add.1  
 
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  Reply: Market price support for the relevant products has already been notified in the Supporting 
Table 5 of DS:1 notification for year 2018 -19. 
Page 121 ( para.  4.32)  
According to the secretariat report:  
"The Government also implements a Market Intervention Scheme (MIS) for perishable 
agricultural/horticultural commodities for which MSPs are not announced. This is implemented in the 
event of prevailing market prices fal ling by 10% over the previous "normal" year, or production 
rising by 10% from the previous marketing period, and on request by the affected state. Under the 
Scheme, perishable crops are procured by state procurement agencies at a pre -determined market 
intervention price (MIP) that covers production costs. The MIS is implemented for a specific period 
or until the market prices stabilize (whichever is earlier). " 
Questions 89: Could India indicate which agricultural/horticultural commodities are eligible for t he 
Market Intervention Scheme (MIS)?  
Reply: All the horticultural/agricultural commodities which are perishable in nature, and for which 
Minimum Support Price (MSP) is not fixed by the Government, are eligible for MIS.  
Questions 90: Could India provide eac h of the pre -determined market intervention price (MIP) for 
each eligible agriculture commodities at which state procurement agencies can procure these 
commodities?  
Reply: The scheme is implemented only at the request of State Governments in the event of 
prevailing market prices falling by 10 % over the previous normal year.  
Questions 91: Is there any limitations on the total quantity eligible to receive this pre -determined 
market intervention price (MIP)?  
Reply: The quantity eligible to receive the MIP dep ends on various factors such as market prices 
and demand & supply situation. The quantity eligible for procurement is up to 20% of the anticipated 
production of the commodity.  
Page 128 ( para. 4.52)  
The Secretariat Report provides an overview of the assista nce provided by the Marine Products 
Export Development Authority for the production and export of fish products, including catch 
certification and traceability of fish products.  
Question 92:  Can India state to what extent the Marine Products Export Develop ment Authorities 
assistance programs on catch certification and traceability are accessible to subsistence, artisanal 
and small -scale fishermen?  
Reply: The catch coming from subsistence, artisanal and small -scale fishers are included in the 
catch certificate and traceability programme. There is no assistance provided to subsistence, 
artisanal and small -scale fishers under catch certificate and traceability programme.  
Page s 154-155 ( para.  4.154)  
According to the secretariat report:  
"The Central Gove rnment has a programme in place to grant financial support to vessel builders. 
The programme, which is aimed at promoting competitiveness in the sector, has been in place since 
2016, and is expected to end in 2026. The support amounts to a specific percent age of the contract 
price or "fair price ", whichever is lower. This percentage will be gradually reduced by 3% on an 
annual basis, from 20% (in 2016/17) to 11% in 2025/26. In 2018/19, INR 290.2 million were 
provided to shipyards under this programme. To fu rther support the industry, inputs used in 
shipbuilding and repair are exempt from customs duties and the GST. '' WT/TPR/M/403/Add.1  
 
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  Question 93: Could India share information on the preliminary progress achieved with the financial 
grant support programme in terms of promoting the competitiveness of its domestic vessel builders?  
Reply: The present policy is effective since April 2016, and based on the applications received, 
contracts for building of 142 vessels were received by shipyards out of which 49 vessels have be en 
delivered.  
Question 94: Has India identified major discrepancies between vessel contract prices and "fair 
prices "?  
Reply: No, there are no significant discrepancies in vessels "Contract price " and "fair price ". 
Question 95: Can India explain the method ology used to determine the "fair price " of purchasing 
a vessel?  
Reply: The term "fair price " is used only in context to the new build vessels under the Ship Building 
Financial Assistance policy. The fair price is defined as the least of three valuations provided by the 
approved valuers in case of shipbuilding contract by a private party. In the c ase of shipbuilding 
contract floated by any public -sector entities, the lowest bid price is considered as the "Fair price " 
and in such case no valuation is required to be carried out.  
Question 96: Could India share the list of inputs used in shipbuilding and repair that are exempt 
from custom duties?  
Reply: The present list of exemptions from customs duties on items relating to ship -building and 
ship-repair is as under:  
i. Capital goods and spares, raw materials, parts, material handling equipmen t and 
consumables for repairs of ocean -going vessels by a ship repair unit.  
ii. Spare parts and consumables for repair of ocean -going vessels registered in India.  
iii. Raw materials and parts for use in the manufacture of specified vessels.  
PART II: QUESTIONS REGA RDING THE GOVERNMENT REPORT  
Government Report  - India (G403)  
Page 12 ( para. 3.1.9)  
Paragraph 3.1.9 of the report notes , "Direct Benefit Transfer (DBT) has been able to contribute 
to "Faceless, Paperless, Cashless " economy and achieve greater transparency, better targeting, 
timely delivery of benefits, improved accountability and reduced cost of delivery and leakages across 
public programs "  
Page 17 ( para.  7.1) 
According to the country report, for future bilateral t rade agreements, India will seek to "engage 
with regions and countries that have complementarities with the Indian economy ". 
Question 97: Could India elaborate on its strategy for bilateral trade agreements and its intentions 
in the near future?  
Reply: India's strategy for bilateral trade negotiations is determined, inter alia , by a number of 
factors such as the reciprocity by trading partner, export interests in the trading partner, domestic 
sensitivity for stakeholders, overall ambition in other areas of negotiations etc.  
Question 98: Could India advise on what key factors Indian authorities consider when determining 
if a prospective trade agreement partner has "complementarities with the Indian economy "? and 
whether agricultural trade interests are ta ken into account?   
Reply: Trade agreement takes into account a number of factors such as the reciprocity of the trading 
partner, the available market access, value chain for the products, domestic sensitivity etc. All recent 
trade agreements are comprehen sive and covers substantial trade volumes for both agricultural and 
non- agricultural  goods.  WT/TPR/M/403/Add.1  
 
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  Question  99: Could India briefly explain the effectiveness of the Direct Benefit Transfer program 
as a pilot delivery mechanism for the Public Food Distribution Sy stem?  
Reply: The Direct Benefit Transfer program as a  pilot delivery mechanism for the Public Food 
Distribution System,  has substantially reduced the cost of delivery as it has eliminated the storage, 
movement and disbursement costs of food grains. Additio nal benefits include elimination of leakages 
and ghost beneficiaries from the system while ensuring accountability and transparency of funds 
being disbursed.  
Page 21 ( para. 8.15)  
Paragraph 8.15 of the report notes, "Food security and agriculture -related initiatives highlights the 
important role played by public stockholding programmes in mitigating the adverse impact on food 
security for the vulnerable population, especially, amidst the COVID -19 pandemic. "  
Question 100:  Could India ex plain about the lessons learned and the efficacy of the public 
stockholding program to meet food security needs in times of a crisis?  
Reply: The Government launched the Pradhan Mantri Garib Kalyan Yojana to counter the adverse 
impact of the C OVID -19 pandem ic on food security. Under this programme, 5 kgs of wheat/rice and 
1 kg of pulses were provided to almost two -thirds of the Indian population. This was only possible 
because of the public stockholding programmes maintained by India which helped in mitigati ng the 
food security challenges faced by the vulnerable population.  
Section 8.4 Government 's Response to COVID -19 
Question 101: Is India considering environmental sustainability as it plans its post -COVID -19 
economic recovery? If so, can India please share what role trade policy will play in this context?  
Reply: India is continuously striving towards building a stronger economy in post COVID -19 
scenario. While India recognizes the importance of issues rela ted to environment and sustainable 
development, it continues to remain of the view that these issues are not trade -related.  
  WT/TPR/M/403/Add.1  
 
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  CANADA  (FOLLOW -UP QUESTIONS)  
1.2 RECENT ECONOMIC DEVELOPMENTS  
Page 18 (Footnote "a" to Box 1.1 ) 
The Atmanirbhar Bharat Abhiyan programme indicates that "MSMEs are to be redefined as follows: 
micro enterprises are those that have investment of less than INR 10 million and turnover of less 
than INR 50 million; small enterprises are those with an invest ment of less than INR 100 million and 
turnover of less than INR 500 million; and medium -sized enterprises are those with investment of 
less than INR 200 million and turnover of less than INR 1 billion. " 
Question 2:  Does India include provisions in in its R egional Trade Agreements in support of MSMEs 
in cross -border trade, e.g., cooperation, investment? If so, please provide an overview of these 
provisions.  
Reply:  Provisions of the Regional Trade Agreements/FTAs India has entered are neutral to the size 
of the partner countries' business entities.  
Follow -up Question:  Could India provide a list of the mechanisms in place to provide views for the 
development of trade policy objectives?  
Reply:  India's Foreign Trade Policy (FTP) provides the basic framework of po licy and strategy for 
promoting exports and trade. It is periodically reviewed, based upon stakeholder 's consultations, to 
adapt to the changing domestic and international scenario. The new foreign trade policy 2021 -26 is 
under formulation and will come in to effect from 1 April, 2021.  
2.4 Investment Regime  
2.4.2 Foreign investment  
2.4.2.1 Policy framework  
It is noted that there are 11 sectors for which FDI must be approved by the Government, one of 
which is the mining sector. However, in the Government 's Report (G/403, 5.1 FDI Policy), it is noted 
that approval of 100% FDI is now automatic for most sectors/activities.  
Question 11:  Can India confirm if reforms in the mining industry have resulted in 100% FDI in the 
mining sector now being permitted under the  automatic route?  
Reply:  100% FDI under the automatic route is allowed in Mining and Exploration of metal and 
non-metal ores including diamond, gold, silver and precious ores, and in coal & lignite, whereas in 
Mining and mineral separation of titanium bearing minerals and ores and related activities, 100% 
FDI is permitted under the government route.  
Follow -up Question: Can India please provide a definition and clarification of process for FDI for 
the automatic route and the government route?  
Reply: The routes under which foreign investment can be made is as under:  
Automatic Route:  Foreign Investment is allowed under the automatic route without prior approval of 
the Government or the Reserve Bank of India, in all activities/ sectors as specified in the Regulation 
16 of FEMA 20 (R).  
Government Route:  Foreign investment in activities not covered under the automatic route requires 
prior approval of the Government. Procedure for applying for Government approval is given at 
http://fifp.gov.in/Forms/SOP.pdf . 
Question 12:  Can India explain how reforms in the mining sector will improve the investment 
climate for foreign investors in the mining sector?  WT/TPR/M/403/Add.1  
 
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  Reply:  Reforms being undertaken also aim at promoting exp loration through private agencies, 
funding private exploration agencies through National Mineral Exploration Trust, making prospecting 
licence -cum-mining lease regime seamless, making available those blocks which are not in use by 
the PSUs and resolving le gacy issues, making available more mineral blocks for auction etc. These 
initiatives are expected to improve the investment climate in the mining sector for domestic as well 
as foreign investors.  
Follow -up Question: Can India please clarify whether 'privat e entities ' refers only to Indian private 
entities or does it also include foreign private entities?  
Reply: As per the extant policy, 100% FDI is allowed in the mining. This can also be noted from the 
earlier response to Canada 's question no.11.  
4.4.1 Fin ancial Services  
Page 137 ( para. 1)  
4.83. There were no changes to foreign investment policy in the sector since the last Review, which 
is restricted to 74% of the paid -up share capital of the bank (up to 49% through the automatic route 
and up to 74% with prior government approval). For investment in the PSBs, the limit is up to 20% 
with prior government approval.  
Question 64: Can a country choose whether to enter as a Wholly -Owned Subsidiary or under this 
FDI limit?  
Reply:  As per FDI Policy, a foreign  bank may operate in India through one of the three channels 
viz., (i) branches (ii) a wholly -owned subsidiary and (iii) a subsidiary with aggregate foreign 
investment up to a maximum of 74 % in a private bank.  
Follow -up Question:  Are foreign financial inst itutions able to choose the channel through which 
they wish to enter India 's market, or are there limitations on which option they can choose? If there 
are limits, what are they?  
Reply:  Foreign banks may choose the channel through which they wish to enter India's market. The 
entry is subject to certain conditions. As per the 'Scheme for Setting up of Wholly Owned Subsidiaries 
by Foreign Banks in India', foreign banks, if eligible, are allowed by the Reserve Bank of India to set 
up business in India through a single mode of presence i.e., either branch mode or a wholly owned 
subsidiary (WOS) mode. For further details, the Scheme can be accessed at: 
https://rbidocs.rbi.org.in/rdocs/Content/PDFs/SBSC061113F.pdf. Details on India's FDI Policy may 
be accessed at https://dipp.gov.in/sites/default/files/FDI -PolicyCircular -2020-
29October2020_1.pdf . 
Page 142 ( para. 2)  
4.104. The key changes brought in by the Insurance Laws (Amendment) Act, 2015 include raising 
the FDI limit in the sector, from 26% to 49% automaticall y (rather than requiring government 
approval), with control remaining with Indian shareholders; permitting foreign re -insurers to open 
branches for re -insurance business in India (up to the 49% FDI limit); and allowing insurance 
companies to raise capital through capital instruments other than equity. Furthermore, since 
2 September 2019, up to 100% foreign equity is permitted in insurance intermediation services, 
subject to verification by the IRDAI and registration and licensing requirements and conditions . 
Question 65: How does India apply the FDI cap to branches (i.e., how would the 49% FDI limit be 
calculated for a foreign re -insurance branch that is not legally distinct from its foreign parent 
company)?  
Reply:  There is no stipulation of FDI for branch o ffice of foreign reinsurance company in India. The 
assigned capital of the branch office of foreign re -insurer shall not be less than the amount specified 
at the time of grant of certificate of registration. This amount shall be invested in accordance with  
the IRDA (Investment) Regulations, 2000 as amended from time to time.  WT/TPR/M/403/Add.1  
 
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  Follow -up Question:  What FDI limit is this paragraph referring to when it states "permitting foreign 
re-insurers to open branches for re -insurance business in India (up to the 49% FDI l imit)"? 
Reply:  Section 7 (A) of Insurance Act, 1938 is applicable only for "Indian Insurance Company" in 
which the aggregate holdings of equity shares by a foreign company, do not exceed 49% paid up 
equity capital of such Indian Insurance Company. It is reiterated that  there is no stipulation of FDI 
for branch office of foreign reinsurance company in India.  
 
  WT/TPR/M/403/Add.1  
 
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  AUSTRALIA  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
Secretariat Report - India (S403)  
2 TRADE AND INVESTMENT REGIMES  
2.2.2 Trade policy objectives  
Page s 34-35 (para.  2.17) 
The report highlights that frequent changes in import and export policy create uncertainty for 
economic actors including trading partners. A report to the High -Level Advisory Group in 
September  2019 advised India to reduce and rationali se tariffs, in order to make them simpler and 
more predictable.  
Question 1:  Can India explain measures that are being taken to ensure that frequent changes in 
agriculture import regulations are simpler, more predictable and do not create uncertainty for trading 
partners?  
Reply: Import of most of agricultural items is free and trade policy has generally remained stable. 
Any change in relation to import regulation is notified on the relevant department's website.  
Question 2:  Can India explai n the actions they have taken in response the report 's recommendation 
to the High -Level Advisory Group, particularly on reducing and rationalising tariffs, to make trading 
with India simpler and more predictable?  
Reply:  Applied rates of customs duty in In dia are prescribed and moderated, as and when required, 
keeping in view the overall economic and other policy objectives which include enhancing domestic 
value addition, creating level playing field, ensuring availability of raw materials at competitive 
prices, securing economic interests of the country, ensuring supply of essential items at affordable 
prices. Extensive stakeholder consultations are done while making tariff changes. Extensive 
deliberations and inclusive policy making ensures that tariff cha nges are transparent and in 
accordance with the conscious stated policy and international commitments of the country, thus 
providing a stable policy environment.  
2.4.2 Foreign investment policy framework  
Page 41 (para.  2.37) 
Investment proposals are examined after they are filed on the Foreign Investment Facilitation Portal.  
Question 3: What are the criteria used in examining investment proposals? Where can intending 
investors find out about the criteria? Does a negative test apply in the approval of investment 
proposals?  
Reply: The SOP for processing Foreign Investment proposals is available at : 
https:// fifp.gov.in/Forms/SOP.pdf . There is no negative test prescribed for approval of investment 
proposals. However, sectoral and security conditions are kept in view while processing investment 
proposals.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures D irectly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements  
Page 43 (paras. 3.6 and 3.7 ) 
The report highlights the introduction of the Single Window Interface for Facilitating Trade (SWIFT) 
the Indian Customs Electronic Gateway (ICEGATE) to facilitate trade.  
Question 4:  Can India elaborate more on its initiatives on agriculture trade, includi ng paperless 
trading programs SWIFT and ICEGATE. Australia would welcome advice on India 's plan to join the 
IPPC Phyto hub, to facilitate paperless trading.  WT/TPR/M/403/Add.1  
 
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  Reply: India has enabled paperless procedure for all Customs processes, which includes agriculture 
trade. Online storage facility known by the name e -Sanchit has also enabled electronic submission 
of supporting documents to Customs. India welcomes Australia 's suggestion to engage bilaterally on 
exchange of phytosanitary certification in elec tronic mode.  
3.1.5.1 Import prohibitions  
Page 55 (para.  3.55) 
The report highlights the minimum import price (MIP) to protect the domestic growers/farmers and 
their livelihood.  
Question 5:  Can India explain how the minimum import price (MIP) is determined?  
Reply:  Import of most of agricultural items is free. Necessa ry interventions are made based on 
various factors including cost of production, overall demand -supply situation in the domestic and 
world market, domestic and international prices, etc.  
3.1.5.2. Import licensing and restrictions  
Page s 59-60 (paras. 3.60-3.61) 
The report highlights that quotas on imports and quantitative restrictions of certain varieties of 
pulses were imposed to protect domestic industry including small and marginal farmers. Any 
agricultural import policy changes such as quota and q uantitative restrictions need to be in line with 
the WTO agreement, and notified to the trading partners in advance including through the WTO 
notification system. This will provide trading partners the opportunity and time to respond on the 
new policy and to inform their industry (including exporters) so exporters can adopt the new 
changes.  
Paragraph 3.60 of the report states: "In 2018, India also imposed a quota of 100,000 MT of peas 
(including yellow, green, dun and kaspa peas) for a period of three month s (1 April to 30 June 2018), 
which was extended three times. New quotas were announced in April 2020 for FY 2020 -21. On 28 
March 2020, quantitative restrictions on imports of peas were announced of up to 150,000 tonnes 
(for green peas and other peas) and 4 00,000 tonnes (for pigeon peas). Quotas on imports of certain 
varieties of pulses were imposed to protect small and marginal farmers, who were affected by an 
increase in imports, to ensure their food and livelihood security. " This information is also conta ined 
in paragraph 4.9 on page 116.  
Further, paragraph 3.61 of the report states:  "India may impose quantitative restrictions if the 
Central Government, after conducting an investigation, determines that goods are imported in such 
an increased quantity and under such conditions as to cause or threaten to cause serious injury to 
domestic industry. " 
Australia notes that pursuant to Article 4 of the Agreement on Agriculture: "Members shall not 
maintain, resort to, or revert to any measures of the k ind which have been required to be converted 
into ordinary customs duties [footnote 1]. " Footnote 1 clearly notes that those measures include: 
"quantitative restrictions ". Additionally, for over three years, India has characterized these 
Quantitative Restr ictions as 'temporary ', and has justified the Quantitative Restrictions under various 
GATT provisions, including:  
- under GATT Article XX General Exceptions (a) 'necessary to protect public morals ' and (b) 
'necessary to protect human, animal or plant life or  health '; and  
- under GATT Article XI(2)(c)(ii), whereby members may be exempt from the disciplines on 
the elimination of quantitative restrictions in order to remove a temporary surplus of a like 
domestic product.  
Australia believes that the Agreement on Ag riculture supersedes GATT Article XI with respect to the 
use of Quantitative Restrictions, and therefore, since India has not explained how GATT Article XX 
applies to India 's use of QRs during the review period despite repeating requests for Australia and WT/TPR/M/403/Add.1  
 
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  other WTO Members, the measures appear inconsistent with India 's WTO -commitments and should 
be removed immediately.  
Question 6: Can India confirm that the quotas imposed on imports and the quantitative restrictions 
imposed on certain varieties of pulses meet its WTO obligation?  
Reply:  India has stated the legal basis of these measures pertaining to quantitative restrictions on 
certain varieties of pulses previously in response to the questions raised by Members in the 
Committee on Market Access and  the Council for Trade in Goods. India has taken these measures 
in exercise of Article XX (General Exceptions) of the GATT 1994.  
Question 7: Can India confirm that advance notice of any future changes in trade policy for pulses, 
including tariff increases and quantitative restriction, will be provided to trading partners including 
through the WTO? Alternatively, can India explain why this cannot be done?  
Reply: In India, the import (and export) of goods is governed by the Customs Act, 1962; the 
Customs Tari ff Act, 1975; the Foreign Trade (Development and Regulation (D&R)) Act, 1992; and 
the Foreign Trade Policy (FTP) issued by the Directorate General of Foreign Trade (DGFT). These 
agencies/authorities notify changes in the trade policy measures on their resp ective websites which 
is available for information.  
Question 8: Can India please provide specific details on how the range of QRs, and the way they 
have been implemented, are justified under GATT Article XX? How does the 'serious injury to the 
domestic inj ury' referenced in paragraph 3.61 fit with the exceptions in GATT Article XX relied on by 
India?  
Reply: The measure has been imposed for food and livelihood security of small and marginal farmers 
in India. It has been imposed after due consultations and is  being regularly reviewed taking into 
consideration domestic demand and supply situation.  
Question 9:  Can India advise when it plans on removing the Quantitative Restrictions on a variety 
of pulses that it has maintained without any clear WTO -justification  for three of the five years 
covered by this trade policy review?  
Reply:  The Government regularly undertakes review of such measures and a decision will be taken 
based on the overall demand -supply situation in the domestic market.  
Question 10:  Regardless o f India 's response to Question 4, can India advise what trigger, 
measurement or policy is being followed to decide on the continued use, or removal, of these 
Quantitative Restrictions?  
Reply:  The measure has been imposed for food and livelihood security of small and marginal farmers 
in India. It has been imposed after due consultations and is being regularly reviewed in the light of 
domestic demand and supply situation.  
3.2 Measures Directly Affecting Exports  
3.2.5 Export support and promotion  
Page 73 (paras.  3.113 and 3.114 ) 
Under paragraph 3.113, the report notes that India continues to implement programs to promote 
exports, including in the agricultural sector. The report notes that these p rograms grant "fiscal and 
financial incentives, while others provide marketing assistance ".  
Furthermore, under paragraph 3.114, the report states that during the review period, India "did not 
provide a notification regarding export subsidies for agricultural goods. "  
Additionally, under 3.2.5.4 Transport and marketing assistance, on page 78 parag raph 3.138, the 
report states that under the Transport and Marketing Assistance (TMA) Scheme: "financial assistance 
is provided to transport and commercialize agriculture products in specific exports markets ". WT/TPR/M/403/Add.1  
 
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  Question 11:  Noting that India does not have a ny export subsidy entitlements for agricultural 
products in its WTO Goods Schedule, and that India did not provide any notification regarding export 
subsidies for agricultural goods during the review period, can India explain when it will notify the 
WTO wi th respect to the financial assistance provided to transport and commercialize agriculture 
products in specific exports markets?  
Reply: India's Export Subsidies notification will be notified in due course.  
3.3 Measures Affecting Production and Trade  
3.3.3 Sanitary and phytosanitary requirements  
Page 87 (para. 3.174 ) 
The Secretariat 's report notes India 's National Plant Protection Organization is regulated by the Plant 
Quarantine (Regulation of Import into India) Order, 2003 and the Destructive Insects and Pests Act, 
1914, with the main objective of preventing the introduction of exotic pests posing a threat to 
agriculture and amended as required by the changing phytosanitary conditions.  
Question 12:  Can India please explain how its c urrent regime operates consistently with 
International Plant Protection Convention standards when establishing quarantine tolerance levels 
and phytosanitary measures?  
Reply:  India takes into account IPPC standards when establishing quarantine tolerance lev els and 
phytosanitary measures and at the same time ensure the plant biosecurity by regulating the pest 
and diseases of quarantine significance under PQ Order, 2003.  
Page 88 (paras. 3.175 –3.179 ) 
The report highlights the sanitary and phytosanitary requirements for agricultural products imported 
into India, including the Import (Pest) Risk Analysis (PRA).  
Question 13:  Can India explain the scientific basis it draws from for an Import (Pest) Risk Analysis 
(PRA) when a pest already exists  in India?  
Reply: PRA is a science -based analysis and India conducts PRA based on guidelines provided under 
ISPM-2, 11 and 21.  
Question 14: Will India publish its import risk assessments that inform the development of its 
Sanitary and Phytosanitary measures for scrutiny and comment consistent with the Agreement on 
Sanitary and Phytosanitary Measures?  
Reply:  India publishes draft notification to WTO -SPS Committee on import requirements and 
phytosanitary measures based on Pest Risk Analys is and invites comments before finalizing the 
import requirements.  
Page 88 (para.  3.176 ) 
The report refers to visit of phytosanitary experts to production sites to carry out pre -shipment 
inspections and evaluate post –harvest treatment technologies and quarantine inspection, and 
certification facilities, as part of the Pest Risk Analysis.  
Question 15: Can India confirm if virtual or desktop audits will take the place of in -person audits 
for the pre -shipment inspection component of Pest R isk Analysis if international travel restrictions 
continue in response to COVID?  
Reply:  Yes, India will positively consider virtual or desktop audits for the pre -shipment inspection, 
if required as a component of PRA, if international travel restrictions c ontinue in response to COVID 
and the same is expected from other countries too.  WT/TPR/M/403/Add.1  
 
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  Page 90 (paras. 3.188 -3.189 ) 
The report specifies FSSAI role in developing standards based on scientific evidence and on 
international standards (i.e. Codex). Recently, FSSAI has issued a number of new food standards 
that are based on quality parameters which are more commercial matte rs rather than a food safety 
standard in line with guidance issued by the Codex Alimentarius Commission.  
Question 16:  Can India confirm that future food standards changes that may impact imports will 
be scientifically justified and in line with internatio nal standards such as Codex Alimentarius?  
Reply: Development of regulations/standards is a dynamic process and is being carried out on the 
basis of scientific assessment and after considering international standards. Any amendment or new 
regulation/standards will be duly notified in WTO for the information and suggestions/comments 
from the member countries.  
Question 17: Will India please advise how it will publish its food safety risk assessments that inform 
the development of its food saf ety standards consistent with the Agreement on Sanitary and 
Phytosanitary Measures?  
Reply:  India will abide by its obligations under the SPS Agreement with reference to information on 
food safety risk assessment.  
4. TRADE POLICIES BY SECTOR  
4.1. Agricultur e 
4.1.1 Measures affecting imports  
Page 116 (paras.  4.5-4.10) 
The report highlights India 's measure to regulate the import of agriculture products including through 
tariffs, tariff rate quotas (TRQs), minimum import prices, import licensing and prohibitions, and state 
trading.  
Question 18: Can India confirm that advance notice of any future changes in trade policy –including 
tariffs, tariff rate quotas (TRQs), minimum import prices, import licensing and prohibitions, and state 
trading –will be provided to trading partners including through the WTO? Alternatively, can India 
explain why th is cannot be done?  
Reply: As mentioned in reply to question no. 2 above, the tariff changes are done with various 
objectives and are well within the Bound rates as per our International Commitments. The tariff 
changes are notified to the WTO as per prescri bed requirements thereof. These rate changes are 
widely disseminated and also made available in the Public domain, which can be accessed at 
www.cbic.gov.in . Changes in import policy are made keeping in exigencies of s ituation. However, in 
order that trade is not impacted, provisions have been made in para. 1.05 of Foreign Trade Policy 
(FTP) for transitional arrangements.  
Page 116 (para.  4.8) 
The report states that: "Certain products may be imported subject only to minimum import prices. 
Under the Foreign Trade Policy, at the end of 2019, such agricultural products were cashew and 
areca nuts, black and green pepper, and cardamom. "  
Australia notes that pursuant to Article 4 of the Agreement on Agriculture: "Members s hall not 
maintain, resort to, or revert to any measures of the kind which have been required to be converted 
into ordinary customs duties (footnote 1). " Footnote 1 clearly notes that those measures include: 
"minimum import prices ". 
Question 19:  Can India e xplain how it intends on rectifying the use of minimum import prices, 
noting their inconsistency with the provisions of the Agreement on Agriculture?  
Reply:  Import of most of tradable agricultural items is free. These measures are temporary in nature 
and are reviewed regularly.  WT/TPR/M/403/Add.1  
 
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  Page 118 (para.  4.18) 
The report notes that India 's "agricultural policy aims to provide stability in domestic food prices and 
food security ". 
This follows on from paragraph 4.11 on page 117 that states that "the Agriculture Export Policy 
(AEP), the objectives are: to increase agricultural exports to reach a value of around USD 60 billion 
by 2022 and USD 100 billion in the following few years. " According to the 'WTO – Trade Profile 2020 
for India ', Indian agricultural exports in 2019 totaled USD 30.719 billion.  
It appears India aims to both provide for its own domestic food needs, but also increase agricultural 
exports significantly. It appears f rom the report that India aims to achieve this by, among other 
measures, continuing to intervene in the market through minimum support prices (MSPs), "but 
farmers may also sell their crops on the open market if the prices are higher. " This policy guarantee s 
farmers a price above market prices, and distorts both domestic and global markets. Furthermore, 
according to the report, actual payments to farmers for purchases of agricultural products at MSPs 
were worth INR 743 billion (referring to Box 1.1 on page 1 7 under Section 1 Economic Environment: 
1.1 Main Features of the economy), indicating that these MSP are valued and used heavily by 
farmers.  
According to paragraph 4.29 on page 122 of the report, these MSP policies distort "cropping patterns 
in favour of commodities procured by the central Government at the MSP (principally, wheat, rice, 
cotton and sugar) and away from other commodities, such a s pulses, coarse grains and oilseeds; 
and a strain on water resources, especially in the states where most procurement takes place. "  
Australia notes that India 's domestic support is of constant and significant concern to many WTO 
Members. This is evidence d by the substantial and substantive engagement by numerous Members 
in the Committee on Agriculture on India 's domestic support measures. Measures for a number of 
agricultural products were, indeed, subject to numerous 'counter notifications ' under Article  18.7 of 
the Agreement on Agriculture, whereby members ' brought to the WTO Membership 's attention 
India's excessive use of domestic support and its subsequent distortive impact on India 's domestic, 
and global agricultural markets.  
Question 20: Can India explain how it plans on reforming its domestic support regime across its 
agricultural sector to ensure it does not distort domestic and global markets, and complies with its 
WTO obligations?  
Reply:  India is a Member with limited domestic support enti tlements viz. de minimis  in relation to 
large trade distorting subsidy entitlements in the form of FBT -AMS to some countries. Further, India 
has been transparent and proactiv e in notifying its domestic support to the WTO. As part of the 
agricultural reforms, a number of measures have been taken in the light of country's commitments 
at the WTO.  
Question 21: Can India confirm if it plans on increasing exports of the products sub ject to the 
MSPs?  
Reply:  Exports are undertaken by private entities and in order to facilitate this, a number of 
measures including stable export policy, liberalised import of agricultural products for value addition, 
focus on developing infrastructure, f ocus on high value, value -added and organic products, etc. are 
being adopted.  
Question 22:  Has India undertaken an assessment of the impact of the MSPs on India 's export 
competitiveness?  
Reply: MSP is intended to provide minimum remunerative prices to the farmers so that they do not 
have to resort to distress sales.  
Question 23:  Can India explain how it reconciles the conflicting policies of ensuring domestic food 
security through market intervention and increasing exports by such significant level in a sho rt 
period of time, given the likely positive impact of the MSPs and market intervention on India 's 
competitiveness?  WT/TPR/M/403/Add.1  
 
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  Reply: Government interventions in the market are primarily for ensuring food security and ensuring 
remunerative prices to the farmers. On t he other hand, exports are commercially driven and the 
Government plays only a facilitative role in promoting exports.  
4.1.3.3 Support prices  
Page 122 (para.  4.27) 
Australia notes that India is undertaking significant reforms to its agricultural sector. For example, 
paragraph 4.27 of the report notes that in September 2020, an ordinance passed both houses of 
Parliament that would amend the Essential Commodities Act, liberalising the supply and stocking 
requirements for cereals, pulses, potatoes, onions and edible oilseeds (and oils). Although, the report 
notes that the ordinance does not apply to any order relating to the minimum support prices (MSPs) 
that are establi shed each year. Furthermore, according to paragraph 4.29 on page 122 of the report, 
those MSPs distort "cropping patterns in favour of commodities procured by the central Government 
at the MSP ". 
Question 24: Australia acknowledges that reforms to India's agricultural sector are complex and 
ongoing. Nevertheless, can India explain how these ordinances will liberalise India 's agricultural 
sector and allow it to engage fully with the global, market -based agricultural trading system if no 
reform to the  MSP system is being undertaken?  
Reply:  The reforms will reduce the risk of market unpredictability for the farmer and also enable 
the farmer to access modern technology and better inputs. Farmers will engage in direct marketing 
thereby eliminating interm ediaries, resulting in full realization of price. The contract farming will 
facilitate in aggregation of produce.  
4.1.4 Other measures  
Page 125 (paras. 4.41 and 4.46 ) 
The report highlights a number of subsidies and poverty alleviation schemes across the Indian 
agriculture sector including:  
• input support (fertiliser, electricity and water subsidy) (p. 118, para. 4.18 and page 118 -119, 
para. 4.19-4.23)  
• seed subsidy under  Essential Commodities Act, 1955 (p. 119, para. 4.22)  
• minimum support price (worth INR 743 billion) (p. 17, box 1.1 and page 119 -120, 
para. 4.24-4.32)  
• National Food Security Mission (NFSM) (page 125, para. 4.41)  
• Transport and Marketing Assistance (TMA) Sch eme (p. 78, para. 3.138 and p. 118, 
para. 4.17)  
• Merchandise Export from India Scheme (MEIS) (p. 118, para. 4.16)  
• Agriculture Export Promotion Scheme (p. 118, para. 4.16).  
• National Dairy Plan Phase I, particularly the subsidy for exported skim-milk products 
(page  126-127, para. 4.46).  
It is widely acknowledged that subsidies including export subsidies are highly trade -distorting and 
that the negative spill overs from such measures in the global marketplace do not discriminate 
between devel oping and developed nations.  
Question 25:  Can India advise how it considers that these subsidies meet its WTO obligations with 
respect to agricultural export subsidies?  
Reply: The subsidies mentioned in para. 4.41 and 4.46 of the Secretariat Report are provided by 
India under various provisions of the Agreement on Agriculture. On Australia's specific question on 
export subsidies, it may be noted that the Nairobi Ministerial Decision on Export Competition allows 
developing countries including India to pro vide export subsidies under Article 9.4 of the Agreement 
on Agriculture until the end of year 2023.  WT/TPR/M/403/Add.1  
 
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  Question 26:  Can India confirm that these subsidies do not negatively impact global agricultural 
markets and distort international trade?  
Reply:  India's agr icultural products' share in world exports is insignificant at around 2 % (World 
Trade Statistical Review 2020). The Nairobi Ministerial Decision on Export Competition allows 
developing countries including India to provide export subsidies under Article 9.4  of the Agreement 
on Agriculture until the end of year 2023.  
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
Government Report - India (G403)  
3 REFORMS: ECONOMIC POLICY AND OTHER INITIATIVES  
3.1 Economic Reforms and Better Delivery of Services  
3.1.8 Skill development  
Page 12 (para. 3.8) 
The report states India is one of the youngest nations in the world and needs to meet the challenge 
of skilling -up its young population, including the goal of training 300 million by 2022.  
Question 27: Can India please explain how it intends to up -skill and train its population by 2022, 
specifically in relation to online training qualifications?  
Reply:  India recognizes the significance of online training  qualifications for providing access to a 
large section of the population. During the pandemic induced restriction period, the Government 
rolled out the e -skills portal through the National Skill Development Corporation to offer training in 
more than 40 co urses to increase access to skill development and ensure continuity in learning. On 
similar lines, the long -term skilling ecosystem was rolled out through the Bharatnet portal which 
offered 6 courses in online/blended format. There will be increasing thrus t on online training of 
theoretical aspects in all new/ future programs including the Pradhan Mantri Kaushal Vikas Yojana 
(PMKVY) 3.0. It is also aimed to make the skill eco -system more conducive to blended learning in 
the future through investments in the  entire value chain viz. mobilization, counselling, delivery of 
training, instructor training, assessment and monitoring.  
Question 28: Could India please explain how it considers foreign online training providers as part 
of this goal?  
Reply: 100% FDI is al lowed under the automatic route for the Vocational Education and Training 
(VET) segment of the education sector. Foreign VET providers, including online providers, are free 
to set up in the country and offer courses as per market demand. However, they need  to get 
themselves accredited with a unified regulator, National Council for Vocational Education and 
Training (NCVET), and get their courses included in the National Qualification Register, for their 
certification to have acceptability in the country.  
  WT/TPR/M/403/Add.1  
 
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  NEW ZEALAND  
Part I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
Secretariat Report - India (S403)  
SECTION 3:  TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.4 Other charges affecting imports  
Page 54 (para. 3.46) 
Paragraph 3.46 of the Secretariat 's report notes that alcoholic beverages and five petroleum 
products are exempt from the Goods and Services Tax (GST) introduced in 2017. When imported, 
these goods are subject to both additional (or countervailing) duty (A D), and special additional duty 
(SAD). This creates uncertainty, impacts on the economic viability of imports, and restricts 
movement of imports between states. The Secretariat 's report notes that the GST Council will 
recommend the date when these goods will be subject to the GST.  
Questions 1:  Can India provide more information on its plan and timetable for applying GST to 
currently exempted goods such as imported alcohol?  
Reply:  As per statutory provisions, GST is levied on supply of goods or servi ces, except on the 
supply of alcoholic liquor for human consumption. Therefore, alcoholic liquor for human consumption 
is outside the scope of GST. As regards five petroleum products , the GST Council,  which is a 
Constitutional body, has not yet deliberated  the date from which the GST would be levied.  
SECTION 3:  TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production And Trade  
3.3.1 Incentives  
Page 81 (para.  3.146 and Table 3.2.5 )  
Para. 3.146 of the Secretariat 's report notes that "India's explicit subsidies continue to be targeted 
mainly at supporting the agricultural sector, ensuring food security and reducing poverty ".  
Question 2:  Noting India 's goal of reducing poverty and helping households shift to cleaner fuels, 
could India share its experiences on its targeted fossil fuel subsidies schemes for natural gas, 
kerosene, and petroleum which support this goal?  
Reply:  Liquid Petroleum Gas (LPG):  In order to promote the uptake of clean cooking, sustainable 
environment (protecting wood and water) and good health (smoke -less cooking experience), India 
launched PM UY (Ujjawala Yojana) to provide deposit -free LPG connection to rural poor women. This 
has helped in moving towards stated objectives.  
Question 3:  Can India provide more information on the rational for its explicit subsidies for 
petroleum increasing between 2015 -2021, as shown in table 3.25?  
Reply:  LPG: Increase in petroleum subsidy is on account of shift towards clean cooking fuel, which 
is helpful in addressing environmental concerns with less use of wood/coal as cooking fuel, ensuring 
better health conditions (due to smoke -less cooking) and water cons ervation due to lower use of 
water for cleaning utensils. Also, market prices of LPG fluctuate based on international prices of 
Butane and Propane. To insulate residents from wide fluctuations in international prices and to 
encourage LPG adoption, the Gove rnment of India has been providing subsidies for LPG usage with 
an upper cap of 12 cylinders per Household Per year. There is some LPG incentive in markets in far -
flung areas due to high transportation costs.  WT/TPR/M/403/Add.1  
 
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  SECTION 4: TRADE POLICIES BY SECTOR  
4.1 Agricu lture Policies  
4.1.1 Measures affecting imports  
Page 116  
New Zealand notes from the WTO Secretariat report that India employs a number of methods to 
control imports and exports of agriculture. These measures vary on an annual basis and can cause 
uncertainty for trade.  
Question 4:  What policy changes does India intend to implement/establish/adopt that will decrease 
uncertainty and help facilitate trade in agricultural products?  
Reply:  India is committed to ensuring a predictable and transparent trade policy in agriculture 
products. India's export and import policies are reviewed in consultation with the concerned 
stakeholders keeping in view, inter alia , the availability of the item and its domestic and international 
prices. Interventions are made, as and when necessary, and such policy changes are notified by the 
concerned agencies/authorities on their respective websites.  
SECTION 4: TRADE POLICIES BY SECTOR  
4.1 Agricultural Policies  
Page 116 (para. 4.4) 
Paragraph 4.4 of the Secretariat 's report notes that India 's Agricultural Export Policy suggests that 
frequent interventions "break export supply chains and affect India's image as a reliable supplier", 
and recommends "that, apart from a few products that are essential for food security, export 
restrictions should  not be used for processed agricultural products and organic products ". 
Question 5:  What criteria does India use to define products as "essential to food security "? 
Reply:  Food security is a dynamic, evolving and multidimensional concept. Some of the crite ria used 
for defining products as "essential to food security" include importance of a product in poor peoples' 
consumption basket, nutritional considerations, traditional food habits across regions etc.  
Question 6: In line with India 's Agricultural Export Policy, how does India provide consistency and 
clarity of any export restrictions so as not to affect India 's image as a reliable supplier?  
Reply:  Export Restrictions are a WTO consistent policy tool. India resorts to export restriction s only 
on a temporary basis and for compelling reasons. Whenever imposed, these are transparent in 
nature and India takes into consideration the concerns of the importing countries in this regard.  
SECTION 4: TRADE POLICIES BY SECTOR  
4.1 Agriculture Policie s 
4.1.4 Other measures  
Page 127  
Paragraph 4.46 of the WTO Secretariat report states that India 's leading milk producing states, 
Gujarat and Maharashtra, offer a subsidy of INR 50,000 per tonne of exported skim -milk products. 
However, under Section 3.2.5 Export Support and Promotion  (page 73, paragraph 3.1114) the WTO 
Secretariat report notes that In dia did not provide a  notification regarding export subsidies for 
agriculture goods during the review period.  
Question 7:  Can India provide more information on the inconsistency identified in the report 
between providing export subsidies, but not submitti ng a notification on export subsidies on 
agriculture goods during the review period?  
Reply:  India maintains its export subsidies as per Article 9.1 (d) and Article 9.1 (e) of the Agreement 
on Agriculture. These subsidies are available to developing countries until 2023 as per the terms of WT/TPR/M/403/Add.1  
 
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  the Nairobi Ministerial Decision on Export Competition. Ex port subsidy notification will be provided 
in due course.  
Question 8:  Can India confirm that it has no scheduled export subsidy commitments subject to 
elimination under the Nairobi Decision?  
Reply:  India has no scheduled export subsidy commitments at the W TO. Being a developing country, 
India is allowed to provide export subsidies under Article 9.4 of the Agreement on Agriculture until 
the end of year 2023 as per the Nairobi Ministerial Decision on Export Competition.  
Question 9:  Can India provide more info rmation on the subsidy that Maharashtra is offering on the 
export of skim milk products?  
Reply:  The Government of Maharashtra in 2018 provided the said financial assistance to defray the 
costs of marketing including handling, domestic and international fr eight which are allowed for 
developing countries under the WTO 's Agreement on Agriculture.  
SECTION 4: TRADE POLICIES BY SECTOR  
4.1 Agriculture Policies  
4.1.4 Other measures  
Page 128  
Table 4.5: Measures to Increase Fish Production of the Secretariat 's report notes that India is 
providing financial assistance for the conversion/construction of tuna long liners.  
Question 10: Can India provide more information on how much financial assistance it provided over 
the last three financial years at  the national and state level for the conversion/construction of tuna 
vessels?  
Reply:  India has been diligently and regularly notifying its financial assistance programmes to 
fisheries sector to the WTO. India 's latest notification of fisheries subsidies to the WTO is for the 
year 2018 -19.  
Question 11:  Can India provide more information on how many vessels have been 
converted/constructed in that three -year period?  
Reply:  Around 93 long liner cum gill netter fishing vessels of overall length of less than 24 meters 
(average length between 18 -22 meters) h ave been constructed since last three years.  
Question 12:  What measures has India taken to ensure that the tuna fishing capacity resulting 
from the conversion/construction of tuna vessels does not contribute to overcapacity in the tuna 
fisheries of the Ind ian Ocean?  
Reply:  India has no fishing fleet that specifically targets tuna fishery. The new vessels which have 
been constructed were in replacement of old vessels, mostly trawlers so as to ensure that there is 
no overcapacity and also to encourage sustain able fishing methods.  
Question 13:  What measures has India taken at the national and state level to ensure that the 
subsidised tuna fishing capacity does not further deplete tuna stocks which the Indian Ocean Tuna 
Commission has determined to be overfished?  
Reply:  There is no dedicated Industrial tuna fishing fleet in India. India follows the conservation and 
management measures of IOTC.  
  WT/TPR/M/403/Add.1  
 
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  OMAN  
In Page 13 paragraph 4.1of India's report WT/TPR/G/403: India indicates a number of initiatives 
and prog rammes to facilitate customs procedures including: the implementation of the India  
Customs Single Window, the Authorized Economic Operator (AEO) program and TURANT:  
Question 1: Can India Clarify the process under these programmes for raising concerns about 
customs valuations?  
Reply: Under "Turant Customs " initiative, a functionality has been enabled in the Indian Custom 's 
ICEGATE Portal to interact with Importers/Customs broker by raising queries, including those 
relating to customs valuation.  Further, Turant Suvidha Kendras (TSKs) have also been set up across 
Custom locations, for addressing doubts/grievances related to Customs clearances.  
  WT/TPR/M/403/Add.1  
 
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  HONG KONG, CHINA  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
Secretariat Report - India (S403)  
Trade Policies by Sector  
Insurance  
Page 141 (para. 4.101 ) 
In life insurance, the market is dominated by one public -sector company, the Life Insurance 
Corporation of India, although its share continues to fall (66% in January 2019, compared to 75.4% 
in 2013/14).  
Question 1: The Life Insurance Corporation of India dominates the life insurance market. We are 
interested in knowing if there is any plan to increase private sector investment from foreign investors 
in the life insurance market, and whether t here have been hurdles to such attempts.  
Reply:  The Insurance Act, 1938 has been amended to increase FDI participation in insurance 
companies from 26% to 49%.  To ease the process of investment, FDI has been allowed through the 
automatic route. Insurance in termediaries have been permitted 100% FDI through the automatic 
route.  The Government will examine further opening up of FDI in  insurance sectors in consultation 
with all stakeholders. Further, the government proposes to sell a part of its holding in LIC b y way of 
Initial Public Offer (IPO). The issues are under examination as part of the process of stakeholder 
consultation.  
Page 142 (para. 4.105 ) 
Tariffs in the insurance sector are not regulated (except third -party motor insurance). Insurers may 
file new schedules of tariffs with the Insurance Regulatory and Development Authority of India 
(IRDAI) anytime and are required to charge premiums on the basis of their filed tariffs. The IRDAI 
accepts the schedules as provided by the insurer but retains the ri ght to query or require changes.  
Question 2: Are there cases that the tariff schedules filed by insurers are not accepted by the 
IRDAI? Would India share with us what factors will be considered as unacceptable and that IRDAI 
needs to ask the insurers to am end their schedules?  
Reply:  Insurers file insurance products along with premium rates (tariff schedule) for approval of 
the IRDAI. During the examination process, queries, if any, are raised to the insurers and accordingly 
filed premium rates are changed by the insurers, if required . The premium rates, which depend on 
the risks being covered,  the benefit structure and terms and conditions of the insurance products, 
are derived based on various actuarial assumptions including mortality rates, morbidity rates, 
expenses, interest rates,  risk & rating factors etc. During the approval process, reasonableness and 
consistency of those assumptions are examined by IRDAI, with the major principles, at the minimum 
including:  
- Tariff schedules filed by the insurer should not be excessive or inadeq uate or unfairly 
discriminatory.  
- It has to be based on sound actuarial principles and appropriate & reliable data with sufficient 
technical justification on methodology adopted, derivation of assumptions etc.  
- If revision in existing tariff schedule is prop osed, then deviation from existing tariff has to 
be reasonable and it has to be based on adequate statistical information on claim experience.  
Telecommunications  
Page 147 (para. 4.121 ) 
India has taken measures to expand the telecommunication services cover age since 2015. For 
example, the government has harmoni zed the procedure to apply for right -of-way permits, to deploy 
optical fibre cables, and install mobile towers on public land and buildings; also a maximum period 
of 60 days to process applications was  introduced. Yet none of these provisions had been fully 
implemented as at June 2020.  WT/TPR/M/403/Add.1  
 
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  Question 3:  What are the reasons that the above -mentioned measures could not be fully 
implemented?  Are there any difficulties faced by the authorities during the impleme ntation, and is 
there any concrete schedule for full implementation?  
Reply:  The Government of India notified the Indian Telegraph Right of Way Rules, 2016 (IT RoW 
Rules, 2016) in November, 2016 to harmonize the Right of Way procedures across the country. All 
States/Union Territories (UTs) and the concerned Central Government Departments/Agencies were 
asked to align their Right of Way policies with the IT RoW Rules, 2016. Federal nature of the Republic 
requires consultation and on boarding of State Governme nts. So far 17 States/UTs have done the 
required alignment and remaining Stats/UTs are in the process.  
Maritime Transport  
Page 155 (para. 4.155 ) 
Ports in India are classified as major and non -major ports. All ports are owned by the State, and are 
regulated by the Indian Ports Act, 1908. Major ports are also regulated by the Major Port Trust Act, 
1963. A Major Port Trust Authorities Bill 2019 is under consideration, which would repeal the 1963 
Act. 
Question 4:  What are the main differences between t he Major Port Trust Authorities Bill 2019 and 
the 1963 Act to be repealed? What is the current status of the 2019 Bill?  
Reply:  The Union Cabinet approved 'The Major Port Authorities Bill, 2020 ' in February, 2020. The 
said Bill has been passed by the Lok Sa bha in September, 2020 and is awaiting 
introduction/consideration by the Rajya Sabha. With a view to promote the expansion of port 
infrastructure, the Major Port Authorities Bill 2020 aims at reorienting the governance model in 
central ports in line with t he global practice. Some of the salient features of the Bill include a compact 
Board of Port Authority with professional independent members, delegation of power to the Board 
of Port Authority to take operational decisions, prior approval of Central Govern ment limited to select 
matters and an Adjudicatory Board for dispute resolution in PPP projects. Further details regarding 
the Bill are available at:  
http://1 64.100.47.4/BillsTexts/LSBillTexts/Asintroduced/78%20_2020_LS_ENGLISH.pdf . 
Tourism  
Page 158 (para. 4.169 and Table 4.24 ) 
To further develop the tourism sector, the Indian government provides assistance, mainly regarding 
building infrastructure and participating in overseas travel fairs.  
Question 5:  Are foreign companies eligible to apply for assistance under the incentive schemes? 
Besides promoting public private partnership (PPP) in tourism infrastructure projects and 
encouraging  participation in overseas travel fairs, are there other types of support provided by the 
government to promote development of the tourism sector?  
Reply:  Eligibility for assistance of incentive schemes of Ministry of Tourism, Government of India 
may be che cked at : https://tourism.gov.in/schemes -and-guidelines/schemes . The Ministry of  
Tourism, Government of India provides assistance to foreign tour operators to promote India as a 
preferred tourist destination through its overseas India  Tourism  Offices under the Scheme of  
Overseas  Promotion & Publicity Including Market Development Assistance  (OPMD).  
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
Government Report - India (G403)  
Reforms: Economic Policy and Other Initiatives  
Startup India  
Page 12 (para.3.7 ) 
Startup India is a flagship initiative of the Government of India, which intends to build a strong 
ecosystem conducive for the growth of startup businesses and generating large scale employment WT/TPR/M/403/Add.1  
 
- 43 - 
 
  opportunities. Under the Startup India initiative, eligible co mpanies can get recogni zed as Startups 
by the Government. This enables them to access easier compliance, IPR fast -tracking and obtain 
certain benefits such as rebate in patent/trademark filing fees, etc. As on 31 July 2020, 
34,226  startups have been recogn ized under the initiative.  
Question 6: How can a company get recogni zed as a startup by the Indian Government under the 
initiative?  What are the eligibility criteria? Would a foreign company be eligible?  
Reply: The eligibility criteria for consideration o f an entity as a Startup is detailed in the notification 
GSR 127 (E) dated 19th February 2019 [https://www.startupindia.gov.in/content/dam/invest -
india/Templates/public/198117.pdf]. An entity fulfilling the eligibility criteria of a startup can make 
an onl ine application on the portal www.startupindia.gov.in . A foreign company is not eligible to be 
recognized as a Startup.  
  WT/TPR/M/403/Add.1  
 
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  REPUBLIC OF KOREA  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
Secretariat Report - India (S403)  
Page 59 ( paras. 3.56 and 3.57)  
3.56. To facilitate the importation of restricted items, an import licensing system is in place. In 
2019/20 there were 440 tariff lines (3.7% of all tariff lines) subject to import licensing.  All importers 
holding a valid IEC may apply for a licence. Import licences are issued, on an MFN basis, by the 
DGFT. The practice of routing import licensing applications through the sponsoring authorities was 
stopped. Applications are considered by the E xim Facilitation Committee, a single administrative 
organ, constituted for this purpose. Import licences are valid for 18 months, renewable for 6 months 
on merit. Fees are calculated based on the c.i.f. value of imports, one per thousand of the c.i.f. 
value, with a minimum of INR 500 and a maximum of INR 100,000.60 Import licences are issued 
for a specific port as specified by the applicant. If the import policy specifies a port of entry for a 
particular product, then the licence will indicate it.  
3.57 The DGFT may refuse to grant an import licence, inter alia , if the applicant has contravened 
any law; if India decides to import through a STE; or if the applicant is not eligible in accordance 
with any provisions of the FTP. In addition, import licen ces of specified goods, services or 
technology may be suspended or cancelled without giving prior notice to the licence 
holder . The importer (exporter) may contest the decision, through the DGFT's grievance redressal 
mechanism, within six months, when it w ould be reassessed.  
Question 1: India has introduced import licen ce restrictions by amending its import policy without 
any prior notification or specific rationale placing certain items in the category of "Free" to 
"Restricted ", and thus requiring import l icences to be obtained in advance. This has resulted in 
difficulties for companies due to delays in granting import licen ces. In this context, we would like 
India to explain its position on the consistency of such measures with the WTO, particularly in ter ms 
of GATT Article III, XX and XVIII: B? Does India have any future plans to outline the specific rationale 
for the measures imposed with prior notifications or grace periods, and operate a transparent import 
licensing system to monitor the import licen ce granting process?  
Reply: Decisions regarding regulating any item of import are always taken in consultation with the 
line ministries/ departments and it is subject to revision/ withdrawal/ amendment. Reasons include 
a check on quality issues and standards,  and to ascertain import statistics.  The measures are 
immediate and thus are taken without any procedural delay. Import licensing measures taken by 
India are consistent with the WTO rules under the GATT and the Agreement on Import Licensing 
Procedures and are administered in a fair and equitable manner, including with respect to the 
timeframes for grant of import licen ces. 
Page 61 ( para. 3.68)  
In May 2018, the Directorate General of Trade Remedies (DGTR), under the Department of 
Commerce, replaced the Directorate General of Anti -dumping and Allied Duties (DGAD) as the sole 
agency dealing with all trade remedies in India. The DGTR deals with anti -dumping, countervailing, 
and safeguard (both duty increases and quantitative restrictions) measures. Prior to the creation of 
the DGTR, the DGAD dealt with anti -dumping and countervailing cases; and the Directorate General 
of Safeguards (DGS) and the Dire ctorate General of Foreign Trade (DGFT) both dealt with 
safeguards. The DGTR is in charge of conducting anti -dumping, countervailing and 
safeguard investigations, and for making recommendations to the Minister of Finance 
regarding the imposition of any suc h measures.  
Question 2:  We have noticed that the Ministry of Finance occasionally denies the imposition of 
measures after the DGTR 's recommendation. Can India explain the specific rationale for such cases?  
Reply:  DGTR 's recommendations are examined by the Central Government taking into account all 
relevant factors, and decisions are taken on merits of individual case within the extant policy and 
legal framework.  WT/TPR/M/403/Add.1  
 
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  Page 62 ( para. 3.73)  
The DGTR recommends the imposition of a final anti -dumping duty that re moves the injury to the 
domestic industry. India follows the lesser duty rule;  it applies the amount of anti -dumping duty 
equal to or lower than the margin of dumping that would remove the injury to the domestic industry.  
Question 3:  India follows the lesser duty rule (LDR). In July 2019, an amendment to the Rules of 
the Anti -Dumping Rules 1995 suggested some exceptions for the LDR, which was not reflected in 
the amendment to Rules of the Anti -Dumping Rules 2020 announced last Februar y. Does India have 
any plans to introduce exceptions in the near future to the LDR as proposed last year?  
Reply:  This is purely a policy issue and any view in such cases is taken after extensive deliberations, 
keeping in view the overall interest of the co untry.  
Page 65 ( para. 3.86)  
India continues to be an active user of anti -dumping measures ; it is currently the main user 
of antidumping measures  in the WTO. During 2015 -19 (December 2019), India initiated 
233 investigations, a sharp increase since 2011 -14 (June), when the number of initiations 
stood at 82 . Most of the investigations initiated during the review period are related to products 
originating in China, followed by those originating in the Republic of Korea and the EU -28. At end -
2019, India had imp osed 254 anti -dumping duties. These measures affected mainly chemicals 
and products thereof, accounting for 40.6% of all measures (Chart 3.2). The average 
length of an anti -dumping measure in force as at December 2019 was 5.9 years; however, 
58 measures ha ve been in place for more than 10 years.  These measures apply mainly 
(45%) to China.  
Question 4: The initiation of Anti -dumping investigations has sharply increased from 82 cases to 
233 cases compared to the last review period. Does India intend to take a more prudent approach 
in initiating anti -dumping investigations and related actions? Why are chemicals and products thereof 
primarily affected by such measures? Please explain India 's position on the fact that measures that 
have been in force for ov er 20 years may be regarded as excessively protectionist actions.  
Reply: Directorate General of Trade Remedies (DGTR) of India initiates anti -dumping investigations 
on the basis of fully documented petitions filed either by, or on behalf of, the concerned domestic 
industry to the DGTR. For an anti -dumping investigation to be initiated, the petitioner must furnish 
sufficient evidence regarding dumping of the goods in question, injury to the domestic industry and 
a causal link between the dumped imports and a lleged injury to the domestic industry. This is done 
in accordance with WTO provisions and t he increase in antidumping investigations is only India 's 
reaction to mitigate the increase in incidence of unfair trade practices. Further, a measure remains 
in force so long and only to the extent necessary, to counteract dumping which is causing injury. A 
measure is not extended unless the Designated Authority comes to a conclusion, on a review initiated 
before that period on its own initiative or upon a duly subs tantiated request made by or on  behalf 
of the domestic industry within a reasonable period of time prior to the expiry of that period, that 
the expiry of the said anti -dumping duty is likely to lead to continuation or recurrence of dumping 
and injury to th e domestic industry.  
Page 67 ( para. 3.88)  
3.88. The DGTR, which is responsible for anti –dumping, is also the Authority in charge of 
administering countervailing measures. It initiates investigations to determine the existence, degree 
and effect of any alle ged subsidy in relation to imports, upon receipt of a properly documented 
application by, or on behalf of, the domestic industry. The DGTR may also initiate investigations on 
its own behalf (Rule 6(4) of Countervailing (CVD) Rules, 1995). The application furnished by the 
industry should include, inter alia , evidence of subsidy on imports ; if possible, its amount; 
injury; and causal link.  
Question 5:  As a member of the WTO, India has the obligation to abide by Articles 11.2 and 11.3 
of the SCM Agreement when initiating an investigation for imposing countervailing measures.  WT/TPR/M/403/Add.1  
 
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  Please provide a description of domestic regulations regarding on the initiation of CVD investigation, 
and please explain your positions on WTO consistency of investigati on practice of the DGTR, 
particularly in terms of 11.2 and 11.3 of the SCM Agreement.  
Reply:  Rule 6 of Countervailing (CVD) Rules, 1995 provides provisions for initiating CVD 
investigations. These are compatible with Articles 11.2 and 11.3 of the SCM Agre ement.  
Page 67 ( para. 3.89)  
3.89. The Central Government imposes a countervailing measure only after determining that injury 
to a domestic industry, which is difficult to repair, was caused by massive imports in a relatively 
short period, of an article that is subsidized. The Designa ted Authority has one year from the date 
of initiation of an investigation to determine if the article under investigation is being subsidized, 
and submits to the Central Government its recommendation as to the amount of duty which, 
if levied, would be ade quate to remove the injury to the domestic industry.  
Question 6:  It is generally requested to stipulate the standard of calculation on CVD margin to 
prevent to arbitrary decision of the Authority. For example, U.S 19 CFR §351.524 prescribes the 
standard of  allocation of benefit to a particular time of period. You are kindly requested to provide 
your domestic regulations or the standard regarding on this issue. Does India plan to take more 
prudent approaches in calculation on fair and adequate margin on CVD investigations? Please explain 
if Inia has any plans.  
Reply: Annexure IV of the Countervailing (CVD) Rules, 1995 provides Guidelines for the calculation 
of the amount of subsidy in Countervailing Duty investigations.  
Page 69 ( para. 3.99)  
Safeguard duties may be levied in addition to anti -dumping and countervailing duties or 
in addition to any other duties imposed under any other laws . Safeguard duties are not levied 
on articles imported by export -oriented undertakings (EOUs, foreign trade zones (FTZ s) or SEZs.  
Question 7:  How are total duties calculated when the Safeguard duties have been levied in addition 
to anti -dumping and countervailing duties? Could India explain the relevant regulations in its 
domestic law?  
Reply:  In the event that an anti -dumping duty is already imposed on a product on which the 
safeguard duty is to be applied then in such a scenario for the purposes of calculation of the duty 
imposed, the existing anti -dumping duty is deducted from the proposed safeguard duty.  
Page 69 ( para. 3.100)  
During the period under review, India initiated seven safeguard investigations, three of which 
resulted in the implementation of a measure; one investigation was dismissed; and three are 
ongoing (Table 3.13). Regarding the ongoing investigation rela ted to imports of single -mode optical 
fibre, the DGTR recommended the imposition of a provisional safeguard duty of 25% for imports 
originating in all countries, with the exception of developing countries other than China. India 
imposed an ad valorem safeg uard duty in all instances that a final safeguard measure was imposed, 
except in the case of hot -rolled flat products of steel, which are subject to a specific duty. During 
the period 2015 -19, India withdrew six safeguard measures, all within the maximum f our-year 
period for which a safeguard may be imposed. As in the case of anti -dumping, India is a major 
use of safeguard measures. As at June 2019, India had initiated 46 safeguard measures 
(12% of all the safeguards investigations initiated at the WTO), th ere is one safeguard 
measure in force  
Question  8: Given the many cases of safeguard measures initiated compared to those measures in 
force, could this be interpreted that India 's competent authorities have initiated Safeguard 
investigations in an overly ex pansive manner? Does India intend to take more a prudent approach 
to initiating safeguard investigations and related actions going forward?  WT/TPR/M/403/Add.1  
 
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  Reply:  Like Anti -Dumping investigations, the Safeguard investigations are initiated on the basis of 
fully documented  petitions filed either by, or on behalf of, the concerned domestic industry to the 
DGTR. For a safeguard investigation to be initiated, the petitioner must furnish sufficient evidence 
regarding increased imports of the goods in question, serious injury to  the domestic industry and a 
causal link between the increased imports and alleged serious injury to the domestic industry. The 
increase in Safeguard investigations is only India 's reaction to mitigate the increase in incidence of 
surge in imports in accor dance with Safeguard Rules, 1997 which are in accordance with WTO 
provisions.  
Page s 69-70 (Table 3.13 Safeguard duties , 2015 -19) 
 
Question 9: India initiated the first Safeguard (Quantitative Restrictions) Investigation for Isopropyl 
alcohol last year, which is still ongoing. Does the Safeguard Measures (Quantitative Restriction) 
Rules 2012 provide any provisions for the formulation of a real time import monitoring system to 
ascertain the quantity of imports entering India and alert the exporters t o its remaining quota on a 
real time basis? Could India please explain how it will manage and track the allocated quota if the 
Safeguard Measures (Quantitative Restriction) are imposed?  
Reply: The Safeguard Measures (Quantitative Restrictions) Rules 2012 p rovide guidelines for 
quantitative restrictions so that imports are not reduced to levels below the average of imports of 
the last three representative years for which statistics are available and justification if a different 
level is necessary to prevent or remedy  serious injury.  Most of the ports in India are EDI enabled 
and imports can be monitored with ease and accuracy.  The Safeguard (Quantitative Restrictions) 
Investigation for Isopropyl alcohol is still under investigation. These procedural concerns will be 
appropriately considered while concluding the investigation.  
Page s 10 (para. 21) and 86 (para. 3.100)  
Over the review period, India revised its standardization legislation; the Bureau of Indian Standards 
(BIS) Act, 1986 was replaced by the  BIS Act, 2016. Under the new Act, standardization covers goods 
and was introduced for services, systems, and processes; and several new provisions were adopted, 
such as new types of conformity assessment schemes. The BIS is India's national standards body , 
which formulates standards in all sectors, except those stipulated in the Agricultural Produce 
(Grading and Marking) Act, 1937 and the Drugs and Cosmetics Act, 1940. Procedures to formulate 
and implement standards and technical regulations did not change  significantly over the review 
period. Since 2015, some of India's technical regulations have been subject to specific trade 
concerns in the WTO Committee on Technical Barriers to Trade . Some products are subject 
to mandatory product certification. Product  certification applies to both locally produced and 
imported goods. Regarding SPS, according to the notifications submitted to the WTO, SPS measures 
comply with, or are based on, relevant international standards, and they mostly apply to all 
Members. India  took one emergency measure that applies to all trading partners. During the review 
period, Members raised seven concerns, of which two were resolved.  Certified products may use the 
BIS Standard Mark (ISI symbol). Licences to use this symbol are granted fo r up to two years and 
may be renewed for up to five years. Foreign manufacturers must have an authorized representative 
in India to obtain a licence to use the BIS Standard Mark (ISI symbol). The terms to grant a licence 
to a foreign manufacturer varies ac cording to the product. The certification process for imports 
includes an on -site visit.  The licence fee amounts to INR 1,000. The BIS also manages the ECO 
Mark for environmentally friendly products; its use is voluntary.  
Question  10: With regard to India's BIS (Bureau of Indian Standards), some of India's technical 
regulations have been subject to specific trade concerns in the WTO Committee on Technical Barriers 
to Trade. In addition, the certification process for imports to use the BIS Standard Mar k includes an 
on-site visit. Given the current difficulties arising from COVID -19, how can India carry out on -site 
WT/TPR/M/403/Add.1  
 
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  visits?  Does India have any plans to temporarily adopt 'remote inspections ' and grant a sufficient 
extension for obtaining licen ces? 
Reply:  Foreign inspection visits are on hold due to the prevalent restrictions on International travel, 
imposed by not only India, but in certain cases by the Government of other respective country as 
well, in view of the ongoing COVID -19 Pandemic. As soon as the situation of COVID -19 improves 
and the restrictions are lifted, India will plan the inspections (factory visit).  The product certification 
activity of BIS for licence to use Standard Mark (ISI Mark) is governed in accordance with Scheme -
I of BIS (Conformit y Assessment) Regulations, 2018. This scheme specifies factory visit of the 
applicant manufacturing premises. During the visit Product sample from the factory  premises is also 
drawn & dispatched for independent testing in a laboratory situated in India. It  is not feasible to 
carry out this activity through remote inspection.  With regard to grant a sufficient extension for 
obtaining licences, Concerned Regulator is considering the requests as and when received from 
various associations/industries regarding e xtension in date of implementation of various technical 
regulations (Quality Control Orders) keeping in view the difficulties arisen due to COVID -19. 
Page 13 ( para. 35) 
Since 2015, air transport services have been further opened to FDI, but cabotage is still reserved 
for national air carriers. During the review period, several initiatives were implemented to improve 
air connectivity, and to relax certain conditions impose d on Indian air carriers regarding operating 
international routes. Measures were also put in place to promote the maintenance, repair, and 
overhaul of aircraft in India. Regarding maritime transport, over 2015 -18, India relaxed cabotage 
for specialized ves sels, container traffic, and certain commodities, to encourage a shift from road/rail 
to coastal shipping. Incentives were introduced to promote ship -building in India. Since 2016, port 
infrastructure has been extended and upgraded, with a view to facilita ting trade. As a result of 
COVID -19, major ports deferred the payment of various port charges , and offered storage 
capacity free of charge to help operators . Private port operators were also offered 
deferred payments of charges and royalties . 
Question 11:  Despite the Indian government 's decision of a "waiver of demurrage charges levied 
by ICDs/CFSs/Ports/Terminal Operators during lockdown " (F.No. 394/46/2020 -Cus (AS)) dated 
22 April 2020, several cases have been reported to the Korean government that a numb er of major 
harbours, airports, ICDs, CFSs have applied demurrage charges up to 20 thousand rupees for a 
20-feet container per day during the lockdown. Also, several cases of legal actions by cargo owners 
have been reported. Could India please explain its position on this matter and elaborate on what 
subsequent measures have been put in place or in consideration at the central government level to 
address the situation?  
Reply: As part of COVID related trade facilitated measures, the Government has urged the 
custodians concerned for waiver or part waiver of demurrage charges. We have also notified these 
measures to the WTO. This specific matter has however been agitated before the Hon 'ble Courts 
and being sub -judice, any further course of action shall be conti ngent upon the verdict(s) concerned.  
Page 47 ( para. 3.23)  
Preferential rules of origin are used in accordance with India's trade agreements. Some of the key 
criteria used in the determination of the rules of origin are: (i) wholly obtained; (ii) change in tariff 
classification; (iii) value addition; (iv) non -minimal operations; and (v) specific rules of origin.  
Question 12: Could India please explain factual background of India 's newly -made regulation 
regarding Rules of Origin (CAROTAR 2020)? Woul dn't the rules increase the cost of applying 
preferential tariffs and act as obstacle to the use of trade agreements?  
Reply: The question raised pertains to the bilateral FTA, which does not fall within the purview of 
TPRM [the function*  of the TPRM is to examine the impact of a Member's trade policies and practices 
on the multilateral trading system].  However, a comprehensive document containing relevant 
information on the CAROTAR 2020 is available in public domain, which may be referred 
at:https://www.cbic.gov.in/resources//htdocs -cbec/customs/CarotarBrochure_8thOct2020.pdf . 
[*Annex 3  to the Marrakesh Agreement establishing the WTO] . WT/TPR/M/403/Add.1  
 
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  Page 50 ( para. 3.34)  
3.34. In general, there are no imports under TRQs; fill ratios are very low. According to the 
authorities, in certain instances, this is because the out -of-quota rate (i.e. the MFN tariff rate) is 
lower than the in -quota rate; hence, there is no need  to use the quota. As result, in 2018 -19, imports 
of rape, colza and mustard oil exceeded the TRQ quantities.  
Question 13:  Regarding low fill ratio of TRQ, paragraph 3.34 of WT/TPR/S/403 says that it is 
because the "out of quota " tariff rate is lower than the "in quota " rate. Yet this is only applicable for 
one item. For the rest of the items, it is unclear. Could India please explain if there is any other 
reason, and please elaborate on its future plans to increase the TRQ exhaustion rate in the future?  
Reply:  TRQs have  been notified in accordance with India 's commitment to the WTO. Over a period 
of time, the MFN rates are reviewed periodically taking into account all prevailing relevant factors. 
As a result, the MFN rate for "Crude sunflower or safflower seed oil is les s than the in -quota tariff 
rate whereas it is equal to in quota tariff rate in case of "Rape, colza or mustard oil and fractions 
thereof ", the importer has the option to avail the MFN rates in such cases.  For other products viz. 
milk and maize no applicati ons were received for import under TRQ. Besides fulfilling the eligibility 
and other conditions for availing of quotas under TRQ scheme, importers have the prerogative to 
decide whether or not to avail of these quotas, based on demand and commercial consid eration.  
Page 63 ( para. 3.79)  
Sunset reviews must be concluded within 12 months of their date of initiation. The Central 
Government may, under special circumstances, extend this period by six months. While the sunset 
review is being conducted, the anti -dumping duty may be extended for one year, pending 
investigation. In a sunset review, the DGTR examines the like lihood of either the continuation or 
recurrence of dumping and injury. In accordance with the result of the investigation, the review may 
result in the renewal of the duty, its withdrawal, or the variation of the level of the duty. A review 
should follow t he same procedure as prescribed for investigation of a fresh case, to the extent 
possible. However, the methodology to be adopted for such an examination has not been prescribed. 
Hence, the DGTR may examine whichever parameters it deems relevant for a like lihood analysis, if 
it can justify its determinations. However, according to the authorities, the parameters for 
likelihood analysis used by the DGTR are in accordance with Annexure II of the Anti -
dumping Rules, 1995 (i.e. those used in a normal investigat ion). Regarding sunset reviews, 
the onus is on the domestic industry to prima facie establish the likelihood of continuation or 
recurrence of dumping and injury. The DGTR may reject a request for initiation if it is not 
substantiated and if there is no pri ma facie evidence of likelihood.  
3.81. During the period under review, most measures were subject to sunset reviews. The duties 
were extended in most of the cases, except in the investigations initiated in 2017, when most duties 
were withdrawn. In those instances, when the measure was extended, the duties were not changed 
(Table 3.11).  
Question 14: According to the Appellate Body in US – Corrosion -Resistant Steel Sunset Review , 
"[i]n an original anti -dumping investigation, investigating authorities must determine whether 
dumping exists during the period of investigation. In contrast, in a sunset review of an anti -dumping 
duty, investigating authorities must determine whether the expiry of the duty that was imposed at 
the conclusion of an original inv estigation would be likely to lead to continuation or recurrence of 
dumping. " However, it seems that the investigating authorities of India apply rules for the original 
anti-dumping investigation to sunset review investigations. Does India have any plan to  improve the 
rules for the sunset review investigation?  
Reply: India has separate Rules for Review investigations (Rule 23 of Anti -Dumping Rules). Further 
detailed procedures for reviews are prescribed through Trade Notices which are available on the 
DGTR website.  Further, Rule 23 also specifically mentions about those provisions of the AD Rules 
which are mutatis mutandis applicable to review investigations.  WT/TPR/M/403/Add.1  
 
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  Page 86 ( para. 3.168)  
Certified products may use the BIS Standard Mark (ISI symbol). Licences to use this symbol are 
granted for up to two years and may be renewed for up to five years.164 Foreign manufacturers 
must have an authorized representative in India to obtain a licence to use the BIS Standard Mark 
(ISI symbol). The terms to grant a licence to a foreign manufacturer varies according to the product. 
The certification process for imports includes an on -site visit. The licence fee amounts to 
INR 1,000.165 The BIS also manages the ECO Mark for environmentally friendly products; its use is 
voluntary.  
Question 15:  Could India please explain why foreign manufacturers must have an authorized 
representative in India to obtain a licen ce, and how long it will normally take to obtain such a licen ce? 
Reply:  As far as nomination of an Authorized Indian Representative (AIR) is concerned, the foreign 
manufacturer is required to nominate an incharge of their  branch /office in India or a senior person 
of the branch/office as AIR. In case, there is no such branch / office established in India or till i t is 
established in India, the foreign manufacturer is required to nominate an AIR, who shall be an Indian 
resident. He shall declare his consent to be responsible for compliance to the provisions of the BIS 
Act, Rules, Regulations and Terms & Conditions l aid down in BIS  Licence, Agreement, Undertaking 
etc. executed by or on behalf of the foreign manufacturer in connection with grant and operation of 
the licence.  The time norm of grant of licence for foreign manufacturer is normally 180 days provided 
the ap plicant (foreign  manufacturer) complies with all the requisite requirements for grant of licence 
within the stipulated time period.  
Page 139 ( para. 4.89)  
4.89. Since 2015, if banks are unable to meet these targets, they may buy priority sector lending 
certificates (PSLCs), thereby transferring funds to banks that are able to lend to the 
priority sector . The PSLCs may only be used during the current year and  cannot be transferred to 
the following year. They may also continue, as before, to invest the amount of the shortfall in the 
Rural Infrastructure Development Fund, (RIDF) run by the NABARD. The rates of return on this 
investment range from the bank rate m inus 2 percentage points to the bank rate minus 4 percentage 
points, depending on the shortfall.  
Question 16: Commercial banks in India are required to invest a share of their credits to 'priority 
sectors ', and if the conditions are not met, they may buy p riority sector lending certificates (PSLCs) 
thereby transferring funds to 'banks '. Could India elaborate on the related mechanism, such as which 
are those 'banks ', when are those certificates checked up on? Furthermore, what is the percentage 
of banks not meeting the targets and buying the certificates?  
Reply: Priority Sector Lending Certificates (PSLCs) are introduced to drive priority sector lending by 
leveraging the comparative strength of different banks. Banks that have a shortfall in achieving the 
PSL target/s can achieve the same by purchasing PSLCs after  paying a market determined premium 
and vice versa. PSLC transactions take place through e -Kuber portal of RBI which are accessible to 
RBI and all scheduled commercial banks. There are four categories of PSLCs, viz., PSLC General, 
PSLC Small and Marginal F armer, PSLC Agriculture & PSLC Micro Enterprises. The validity of PSLCs 
is for one financial year, i.e., all PSLCs will be valid till 31 March and lapse on 1 April to make it 
co-terminus with annual PSL targets for banks. Banks submit returns to RBI on the ir PSL 
achievements and these are also examined by banking supervisors at the time of annual inspection 
of banks. Banks not meeting PSL targets have the freedom of either purchasing PSLCs or contributing 
to Rural Infrastructure Development Fund (RIDF) and other refinance funds as mandated by RBI. 
Banks are also allowed to achieve PSL targets by partly purchasing PSLCs and partly contributing to 
RIDF and other re -finance funds. For FY 2019 -20, the percentage of scheduled commercial banks 
(SCBs) purchasing PS LCs is as under:  
PSLC Agri  PSLC SMF  PSLC Micro  PSLC General  
28% 33% 41% 30% WT/TPR/M/403/Add.1  
 
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  Page 140 ( para. 4.94)  
To specifically address the problem of rising NPAs  in PSBs, in October 2017, the central 
Government launched the Indradhanush Plan to recapitalize PSBs. The Plan raised INR 2.1 billion 
during 2017/18, of which INR 881.39 million was provided through the central government Budget 
and the rest in the form o f bonds and capital raised by the PSBs. The 2019/20 Budget announced a 
further INR 700 billion for recapitalization  of the PSBs, and the intention to consolidate  10 PSBs 
into 4. As a result, the number of banks monitored by the RBI under its PCA Framework declined to 
4 PSBs (and two private banks) as at December 2019.143 The infusion of funds under the Plan made 
it possible for the PSBs to absorb losses and reduce the level of NPAs.144 In addition, following 
recommendations by the Committee to Review Boards  of Governance of Banks in India in May 2014, 
the central Government also disinvested in the IDBI Bank Ltd. to below 50%. In the 2020/2021 
Budget, it was announced that the central government shareholding would be brought down further.  
Question  17: Rising Non -Performing Assets are addressed by recapitalization or consolidation. 
Could India elaborate on other means intended to fundamentally ameliorate the performance of 
loans?  
Reply: Resolution of stressed assets has been one of the  focus areas over the past few years. 
Several measures have been taken to  ameliorate the position of non -performing loans, such as:  
i. The Government enacted Insolvency and Bankruptcy Code (IBC), 2016 in May 2016 
to provide an effective legal framework for timely resolution of  insolvency and bankruptcy.  
ii. The promulgation of the Banking Regulation (Amendment) Act, 2017 that empowers RBI to 
issue directions to any bank to initiate insolvency resolution process in respect of a default, 
under the provisions of the IBC, 2016.  
iii. RBI issued the Prudential Framework for Resolution of Stressed Assets in June, 2019 which 
is a principle -based framework for out -of-court workouts with bright -line tests for desired 
outcomes. Inter alia , it provides discretion to lenders with regard to design a nd 
implementation of resolution plans, subject to the specified timelines and independent credit 
evaluation.  
The above measures provide strong mechanisms for resolution of stressed assets, both within as 
well as outside a formal insolvency framework, in ad dition to the existing legal mechanisms for 
recovery such as the Securitisation and Reconstruction of Financial Assets and Enforcement of 
Security Interests Act, 2002.  
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
Government Report - India (G403)  
Page s 17 (para. 7.1) and 18 (para. 7.3) 
7.1. In order to put the trade on a high growth trajectory, India has engaged actively with the 
external market and diversified its strategy based on the changing dynamics of commerce and 
economic growth in the world  economy. In future, India seeks to engage with regions and countries 
that have complementarities with the Indian economy. India views regional trade agreements 
(RTAs) and preferential trading arrangements (PTAs), as "building blocks" towards 
achieving the  overall objective of trade liberalization/harmonisation of Tariffs and Non -
tariff Measures . India's initial foray into RTAs was through the Bangkok Agreement (1975), the 
Global System of Trade Preferences (GSTP, 1988), and the SAARC PTA (SAPTA, 1993). Ind ia's 
important trade engagements are briefly discussed in this section. The India ASEAN Trade in Goods 
Agreement became operational from January 2010 onwards (with different dates for ASEAN 
countries). The Services and Investment Agreement entered into for ce on 1 July 2015. Besides this, 
India's deepening economic and commercial engagement with South East Asia is evident from the 
following agreements: a bilateral agreement with Thailand (2004), a Comprehensive Economic 
Cooperation Agreement (CECA) with Sing apore (2005), a Comprehensive Economic Cooperation 
Agreement (CECA) with Malaysia (2011).  The India -Republic of Korea Comprehensive 
Economic Partnership Agreement (CEPA) came into force in January 2010,  while that with 
Japan came into force in August 2011.  WT/TPR/M/403/Add.1  
 
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  Question 18:  While India has entered into regional and free trade agreements with countries to 
achieve the overall objective of trade liberalization, India has initiated four bilateral safeguard 
investigations since 2019, with three related measures curre ntly in force. Could these actions be 
interpreted as nullifying the already established Free Trade Agreements that India has entered into 
achieve trade liberalization? Additionally, could India explain its efforts to ensure that bilateral 
measures conform to the provisions of the governing FTAs, and provide opportunities for 
consultations to reach an agreement on compensation for the imposed measures?  
Reply:  India entered into bilateral agreements with various trading partners with the intention of 
mutually beneficial and reciprocal outcomes and these agreements are expected to result in 
furthering the economic development in the partner countries. The bilateral safeguard provisions 
are inbuilt and inherent part of almost all FTAs to provide temporar y relief to the domestic industry 
with respect to surge in imports from the partner country as a result of tariff eliminations/reductions. 
Bilateral safeguard investigations have been initiated by India in accordance with the relevant 
Bilateral Safeguard M easures Rules which were notified by the Central Government in the official 
gazette. These Rules were framed in accordance with the corresponding Free Trade Agreement. 
Such measures are being applied strictly following the said provisions. Since the action s conform to 
the FTA agreement, they cannot be construed as nullifying the objective of trade liberation under 
FTA. Partner country aggrieved by the measure can approach the Central Government with its 
grievances or alleged inconsistencies, if any.  
Page 14  (para. 4.2) 
As a part of India 's commitment under the TFA (under Article 23.2 of the TFA), a National Committee 
on Trade Facilitation (NCTF) has been set up under the Chairmanship of the Cabinet Secretary. This 
Committee periodically reviews the implement ation of the TFA and facilitates domestic co -ordination 
towards it. Formulation of the National Trade Facilitation Action Plan (NTFAP) 2017 -2020 was an 
early measure by the NCTF. The NTFAP has been envisioned as a live document containing 96 specific 
measu res assigned to stakeholders with indicative timelines for implementation. The commitments 
underlined therein are the commitments under the TFA as well as TFA+ commitments related to 
infrastructure and technology adoption. The collective aim of these measu res is to enable a reduction 
in the overall release time associated with the clearance of goods with regards to:  
• Imports – less than 48 hours for Sea / ICD / ICP and less than 24 hours for Air  
• Exports – less than 24 hours for Sea / ICD / ICP and less  than 12 hours for Air . 
Question 19:  Could India please explain why the overall release time associated with the clearance 
of importing goods and exporting goods is significantly different? Many difficulties are raised by 
businesses regarding cumbersome cu stoms procedures when they export products to India. What is 
India's view on this issue and does India have any plans to improve its customs procedures, 
especially those for imports, in a more business -friendly way?  
Reply: India has taken several measures to ease the trading environment by facilitating various 
infrastructural and functional simplifications for the import/export clearances. The trade facilitative 
measures initiated by the Government have been instrumental in a drastic reduction of t he time and 
costs of border and documentary compliances for exports and imports in the last few years and have 
been adequately reflected in the improvement in the country 's rank to 68 on the Trading Across 
Borders indicator in the World Bank 's Doing Busine ss Report released in 2019, a vast improvement 
from a rank of 126 in the Report released in 2014. Some of the measures taken by Indian customs 
specifically for facilitating faster clearances of imports include, Implementation of 'India Customs 
Single Windo w' to allow traders the facility to lodge their clearance documents online at a single 
point, supported by the e -SANCHIT portal enabling online uploading of supporting documents by the 
trade; Online Goods Registration; PDF based clearance copy; Reducing nu mber of consignments 
that need to be inspected on arrival by introduction of the post clearance audit of consignments 
identified by the Risk Management System (RMS); Direct Port Entry at the ports; Faceless and direct 
contact -free assessments, etc. As rega rds difference in release times for imports and exports, it is 
due to the difference in assessment requirements, wherein, in case of exports, documentation is 
normally done before arrival of goods/consignment into customs for export, while it is not so in 
imports, requiring more time for clearance. A late fee for delayed presentation of Import declaration 
to encourage advance filing has also been prescribed by the Indian Customs.  WT/TPR/M/403/Add.1  
 
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  Page 16 ( para. 5.8.)  
5.8. Reforms have been carried out across sectors such as  Defence, Insurance, Pension, Other 
Financial Services, Asset reconstruction Companies, Broadcasting, Pharmaceuticals, Single Brand 
Retail Trading, Construction and Development, Civil Aviation, Power Exchanges, e -commerce 
activities, Coal Mining, Contract Manufacturing, Digital Media etc.  
Page 17 ( para. 6.9) 
India has been playing a constructive role in services negotiations in the WTO. India has made efforts 
to reinvigorate the Work Program on Electronic Commerce with the belief that as the digital 
revolu tion is still unfolding, it is important to first understand the complex and multi -faceted 
dimensions of issues related to e -commerce. India has accordingly been a proponent of 
strengthening the multilateral work under the non -negotiating and exploratory w ork program on 
e-commerce.  
Question  20: Could India please provide the factual background of India 's newly -made regulation 
regarding e -commerce? Would India have any other plan for additional regulations?  
Reply: Guidelines for FDI in e -commerce were issued in 2016 and the extant FDI Policy states that 
FDI in e -Commerce is permitted in marketplace -based model. Further, in order to provide clarity to 
the FDI policy on e -commerce and to streamline the provisions contained therein, clarifications were 
issued in 2018.  India's FDI Policy is available on the official website of the Department for Promotion 
of Industry and Internal Trade i.e., http://www.dipp.nic.in  . The FDI Policy is reviewed on an ongoing 
basis to ensu re that India remains attractive & investor friendly destination. The draft National 
E-commerce policy document has been placed in the public domain  for comments/ suggestions from 
public and various stakeholders. The finalization of the policy is in proces s. 
PART III: OTHER QUESTIONS  
Question 21: The Issues regarding Procedural Due Process in CVD Investigation  - In light 
of the principle of procedural due process, please provide a description of your effort for this issue 
in terms of 12.3 and 12.11 of the S CM Agreement, particularly on the CVD investigation practice of 
the DGTR  
Reply: In accordance with Rule 7 (7) of CVD Rules, 1995, the Designated Authority makes available 
the evidence presented by one party to other interested parties participating in the investigation. 
Public Files are maintained by the Authority which may be accessed by any interested party during 
the period of investigation.  Also, the Authority takes note of the difficulties that may be experienced 
by interested part ies and addresses them suitably.  
Question 22 : Strengthened Verification of Rules of Origin - India announced an amendment 
to its 1962 Customs Act last April, and in September implemented the 'Customs (Administration of 
Rules of Origin under Trade Agreement ) Rules, 2020 '(CAROTAR) to strictly verify the Rules of Origin 
under Free(preferential) Trade Agreements to guard against the misuse of FTA benefits. Could India 
explain its position on FTA inconsistency, particularly in terms of the excessive submission o f origin 
related information? Many issues have arisen with regard to Customs clearances, resulting in much 
administrative burden and confusion for importers struggling to comply with new obligations. Could 
India please explain its efforts to improve this s ituation?  
Reply : The question raised pertains to the bilateral FTA, which does not fall within the purview of 
TPRM [the function*  of the TPRM is to examine the impact of a Member's trade policies and practices 
on the multilateral trading system].  However, a comprehensive document containing relevant 
information on the CAROTAR 2020 is available in public domain, which may be referred 
at:https://www.cbic.gov.i n/resources//htdocs -cbec/customs/CarotarBrochure_8thOct2020.pdf . 
[*Annex 3  to the Marrakesh Agreement establishing the WTO]  
Question 23: Import Licensing for Tyres  - It is required to acquire prior import licen ce in order 
to export tyres to India. But it has been 6 months from the most recent import licen ce issued, which 
is causing serious damage to some companies who are doing business in India by importing tyres. 
Moreover, companies have to acquire import licen ces for tyres for each import cases, and com panies WT/TPR/M/403/Add.1  
 
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  without production facilities in India, in particular, are having difficulties getting import licen ces, 
which all prove that this is a non -tariff barrier. What is India 's view on this issue and does India have 
any plans to resolve this barrier?  
Reply: The measure has been taken keeping in view the quality issues, and the non -automatic 
licensing requirements are administered in a manner consistent with the rules of the WTO Agreement 
on the Import Licensing Procedures, including with respect to the tim eframes for grant of import 
licences. This is being administered in a fair and equitable manner and a number of licen ces have 
been granted, after approval by the Exim Facilitation Committee (EFC).  
  WT/TPR/M/403/Add.1  
 
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  JAPAN  
PART I: QUESTIONS REGARDING THE GOVERNMENT REPORT  
Government Report - India (G403)  
3 REFORMS: ECONOMIC POLICY AND OTHER INITIATIVES  
3.1 Economic Reforms and Better Delivery of Services  
3.1.5 Make in India  
Question 1: page 11 (para. 3.5 ) 
Japan understands that India has continuously raised tariffs imposed on ICT products, for which the 
country has committed to zero tariffs under the WTO Agreement. under the "Make in India" 
campaign since 2014. Japan considers these measures imposed by India on ICT products to be 
inconsist ent with Article II:1(b) of the General Agreement on Tariffs and Trade (GATT), which 
stipulates that the Member countries shall not impose tariffs on goods imported from other countries 
in excess of the rates in their respective schedules of concession, as  well as Article II:1(a) of the 
GATT which provides the Member countries shall accord to the commerce of the other countries 
treatment no less favourable than that provided for in the appropriate part of their schedules of 
concession.  Japan would like to r equest India to verify in writing the current situation of custom 
duties imposed on the imports of the products under HS codes stated below as well as the relevant 
acts and notifications etc.:  
HS85171219  
HS85171211  
HS85171290  
HS85176100  
HS85176290  
HS851770 10 
HS85177090  
Reply:  The measures are the subject matter of a WTO dispute. India considers these measures to 
be WTO consistent.  
Question 2: page 11 (para. 3.5 ) 
The description of subheading 8517.12 in the First Schedule is "Telephones for other wireless 
networks, other than cellular networks", which differs from the description "Telephones for cellular 
networks or for other wireless networks" in India's schedule of concession as well as that defined by 
the World Customs Organization ("WCO"). Japa n is of the view that, when looking at the descriptions 
below 8517.12 in the First Schedule, "Telephones for cellular networks" clearly falls under 8517.12. 
Japan requests India to clarify whether the description of subheading 8517.12 in the First Schedule  
is erroneous.  
Reply: India recalls that the Question relates to a tariff line which is currently under dispute. India 
reiterates that it is consistent with its WTO obligations with respect to this tariff line.  
4 EASE OF DOING BUSINESS AND TRADE FACILITATI ON 
Question 3: page 13 
There is an issue of access to import/export invoice information relating to India by registering with 
a paid service of private companies located in India. Japan would like to receive information on the 
following matters in order to  determine their appropriateness (Example: Infordrive 
https://www.infodriveindia.com/).  
(1) Laws and specific provisions protecting the business confidentiality of importers and exporters 
in India.  
(2) Laws and specific provisions requiring customs brokers to protect the information of importers 
and exporters.  
(3) The position of the Government of India in relation to such information services.  WT/TPR/M/403/Add.1  
 
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  Reply: Indian Customs gives utmost importance to trade data security and privacy with ISO 27001 
standards f or information security, and access controls.  
PART II: QUESTIONS REGARDING THE SECRETARIAT REPORT  
Secretariat Report - India (S403)  
1 ECONOMIC ENVIRONMENT  
1.6 Developments in Trade and Investment  
1.6.1.2 Services trade  
Question 4: page 28 (para. 1.30 ) 
According to Table 1.5 in the report by the secretariat, India is a net exporter in trade in services, 
particularly with "Computer, information, and telecommunication" accounting for over 40% of total 
credit. Is India requesting to lift the moratorium on e lectronic transmissions in WTO, taking into 
consideration this reality? Does India not expect other countries to impose customs duties on its 
electronic transmissions if the moratorium is lifted?  
Reply:  India has taken all relevant aspects into considerati on, including approaches of other 
countries, while deciding its approach to the temporary moratorium on customs duties on electronic 
transmissions. In December 2019, India had joined the consensus on the six months ' extension of 
the moratorium with the und erstanding that the Work Programme on Electronic Commerce will be 
reinvigorated, with the specific objective of achieving clarity on issues related to the scope of the 
moratorium; the definition of electronic transmissions; identification of products which  are covered 
under the moratorium; as well as its impact. India remains actively engaged on this issue at the 
WTO.  
2 TRADE AND INVESTMENT REGIMES  
2.4 Investment Regime  
2.4.2 Foreign investment  
Question 5: page s 40-41 (para. 2.35 ) 
With regard to the restr ictions on the entry of foreign companies in the retail industry (single -brand 
and multi -brand), it is not an immediate violation of the WTO Agreement, but Japan requests the 
relaxation of such restrictions from the viewpoint of further promoting investmen t by Japanese 
companies, and would like to seek understanding from the Indian side.  
Reply: As per extant FDI Policy, 100% FDI is allowed in Single Brand Retail Trading under Automatic 
route and FDI up to 51% in Multi -Brand Retail Trading is permitted under  Government Approval 
route, subject to conditions mentioned in the extant FDI Policy, which may be seen at 
https://www.dipp.gov.in . The FDI Policy is reviewed on an ongoing basis, to ensure that India 
remains attractive & investor friendly destination and decisions on changes to the FDI policy are 
taken, in accordance with policy priorities and in consultation with all stakeholders.  
Question 6: page s 40-41 (para. 2.35 ) 
Regarding restrictions on entry to retail by foreign companies, Japan understands that restrictions 
on single -brand retail have been decided to reduce. Japan would like to request India to provide 
information on the relevant actions regarding the relaxing regulation on multi -brand retail, such as 
schedule and details, which would allow more investment by foreign companies.  
Reply:  As per extant FDI Policy, up to 51% FDI in Multi -Brand Retail is allowed under Government 
approval route  subject to conditions mentioned in the extant FDI Policy, which ma y be seen at 
https://www.dipp.gov.in . The FDI Policy is reviewed on an ongoing basis, to ensure that India 
remains attractive & investor friendly destination and decisions on changes to the FDI policy are 
taken, in accordance with policy priorities and in consultation with all stakeholders.  WT/TPR/M/403/Add.1  
 
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  3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements  
Question 7: page 43 
In order to determine the appropriateness of the measures taken in relation to CAROTAR, Japan 
would like to receive information on the following matters  
(1) The number of instructions to provide information issued per month since the implementation 
of the scheme (21 S eptember) and the percentage of them in the total import transactions 
(with special reference to major ports such as Chennai, Mumbai, Nabasheva and Delhi).  
(2)  Data on the following cases that were the subject to instructions to provide information (per 
month)  
 (i)  Minimum clearance period  
 (ii)  Longest customs clearance period (for cleared and uncleared cases)  
 (iii)  Average customs clearance period  
 (iv)  Number and percentage of cases subject to verification (vs. cases subject to information 
provision instructions)  
 (v)  Number and percentage of cases for which additional information instructions were 
issued after Form I was submitted  
 (vi)  Percentage of preferential rate responses within 15 working days of Form I submission.  
 (vii)  Number and percentage of customs clearance by deposit payment or bank guarantee 
(BG) 
 (viii)  Number of cases and percentage of cases where instructions for provision of cost 
information were issued.  
(3)  The following data (monthly) for cases where cu stoms clearance by deposit or bank guarantee 
was implemented  
 (i)  Number and percentage of refunded cases (vs. cases where deposit payment or customs 
clearance with bank guarantee was carried out)  
 (ii)  Minimum refund period  
 (iii)  Maximum refund period  (refunded and un -refunded cases)  
 (iv)  Average refund period  
 (v)  Number of unclaimed refunds  
(4) Government of India's official position on CAROTAR.  
Reply:  The question pertains to the India -Japan CEPA, which is a bilateral trade agreement and 
does not fall within the purview of TPRM [the function* of the TPRM is to examine the impact of a 
Member's trade policies and practices on the multilateral trading system]. However, a 
comprehensive document containing relevant information on the CAROTAR 2020 is  available in 
public domain, which may be referred at : https://www.cbic.gov.in/resources//htdocs -
cbec/customs/CarotarBrochure_8thOct2020.pdf  
[*Annex 3 to t he Marrakesh Agreement establishing the WTO]  WT/TPR/M/403/Add.1  
 
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  Question 8: page 43 
There have been a number of cases where the use of preferential tariff rates has been denied in 
relation to certificates of origin issued under the Japan -India CEPA due to the failure of customs 
officials to update the information on the authorized signatory.  
(1)  Number of applications for preferential tariff rates under the Japan -India CEPA  
(2)  Of the number of cases mentioned in (1) above, the number of cases in which questioning 
was c arried out to determine the validity of the certificate of origin.  
(3)  Number of cases out of (2) above where the application for preferential tariff rates was 
rejected.  
(4)  The process by which the signature authority information is delivered to the customs officers 
in the field.  
(5)  Views of the Government of India on the issue.  
Reply: The question pertains to the India -Japan CEPA, which is a bilateral trade agreement and 
does not fall within the purview of TPRM [the function* of the TPRM is to exam ine the impact of a 
Member's trade policies and practices on the multilateral trading system]. However, a 
comprehensive document containing relevant information on the CAROTAR 2020 is available in 
public domain, which may be referred at  https://www.cbic.gov.in/resources//htdocs -
cbec/customs/CarotarBrochure_8thOct2020.pdf . 
[*Annex 3 to the Marrakesh Agreement establishing the WTO]  
Question 9: page 43 
Japan re cognizes that complexity of customs clearance process has increased with additional 
documentations and information required as a result of the implementation of CAROTAR 2020 on 
21st September. The same is true with different manners of operation among diff erent local customs 
within India. As such, Japan would like to request India to provide with the detailed explanation 
regarding India's measures, if any, toward simplifications of the process and harmonization of the 
operation at the customs.  
Reply: The qu estion pertains to the India -Japan CEPA, which is a bilateral trade agreement and 
does not fall within the purview of TPRM [the function* of the TPRM is to examine the impact of a 
Member's trade policies and practices on the multilateral trading system]. H owever, a 
comprehensive document containing relevant information on the CAROTAR 2020 is available in 
public domain, which may be referred at : https://www.cbic.gov.in/resources//htdocs -
cbec/customs/CarotarBrochure_8thOct2020.pdf . 
[*Annex 3 to the Marrakesh Agreement establishing the WTO]  
3.1.2 Rules  of origin  
Question 10: page 47 (para. 3.22 ) 
With respect to rules of origin, Japan understands that the Customs (Administration of Rules of 
Origin under Trade Agreements) Rules, 2020 (CAROTAR 2020) came into force on 21st September, 
2020. Since there are some cases where the execution of each Customs does not seem to accord 
with the guideline of the Central Government, please explain how India attempts to make each 
Customs comply with the guideline.  
Reply: The question pertains to the India -Japan CEPA,  which is a bilateral trade agreement and 
does not fall within the purview of TPRM [the function* of the TPRM is to examine the impact of a 
Member's trade policies and practices on the multilateral trading system]. However, a 
comprehensive document contain ing relevant information on the CAROTAR 2020 is available in 
public domain, which may be referred at : https://www.cbic.gov.in/resources//htdocs -
cbec/custom s/CarotarBrochure_8thOct2020.pdf  
[*Annex 3 to the Marrakesh Agreement establishing the WTO]  WT/TPR/M/403/Add.1  
 
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  3.1.3 Tariffs  
Question 11: page 48 (para. 3.26 ) 
According to the report by the Secretariat, the simple average applied MFN tariff of India increased 
from 13.0% in 2014/15 to 14.3% in 2020/21. Isn't it a deliberate tariff raising which aims to foster 
specific industries in India, and to achieve policy goals such as "Make in India"?  
Reply:  Applied rates of customs duty in India are prescribed keeping in view the overa ll economic 
and other policy objectives which include enhancing domestic value addition, creating level playing 
field, ensuring availability of raw materials at competitive prices, securing economic interests of the 
country, ensuring supply of essential it ems at affordable prices. The tariff changes are transparent 
and in accordance with the conscious stated policy and international commitments of the country.  
3.1.3.4 Tariff concessions  
Question 12: page 50 
On 11 November, the Indian Ministry of Commerce and Industry (MCI) increased the duty on HS8529 
(Specified parts for manufacture of Open Cell for LED/LCD TV Panels (Chip on Film, PCBA, Cell)) 
from duty free to 5%. This measure is not considered to necessarily contribute to Make in India as 
these parts are mostly imported even by domestic companies in India. Given this situation, what is 
the policy objective of this measure?  
Reply: The Custom Duty rates are calibrated on account of several factors and are based on 
extensive stakeholder consultati ons. The duty raised on said item, which is within India 's WTO 
commitments, has been guided by such factors and the need for harmonization of tariff rate 
structure.  
3.1.5 Import prohibitions, restrictions, and licensing  
Question 13: page 55 (para. 3.54 ) 
Japan understands that India has prohibited imports of air conditioners with refrigerants since 
15 October 2020. Could India clarify the consistency between this prohibition and the WTO rules?  
Reply:  The measure was necessary for application of standards a nd regulations for marketing of the 
item, besides reducing risks to human, animal and plant life and health, consistent with India 's 
commitment to Montreal Protocol. Further, as per the Ozone Depleting Substances (Regulation and 
Control) Amendment Rules, 2 014, import of air conditioners containing Group VI substances (HCFCs) 
is prohibited since 1  July 2015 . 
Question 14: page 55 
Japan would like to request India to provide with the detailed explanation regarding India's views 
on the relationship between the Gazette of India on 15th October, which prohibits the split system 
(HS Code 84151010) and others (HS Code 84151090), and GATT article XI, which stipulates that no 
prohibitions or restrictions other than duties, taxes or other charges shall be instituted on  the 
importation of any product.  
Reply:  The measure was necessary for application of standards and regulations for the marketing 
of the item, besides reducing risks to human, animal and plant life and health in light of India 's 
commitment to Montreal proto col. 
Question 15: page 55 
Japan would like to request India to indicate whether or not air conditioners (HS Code 84151010 or 
HS Code 84151090) without refrigerant deviate from the import prohibition for the next few years, 
and to provide with the classific ation of HS codes.  WT/TPR/M/403/Add.1  
 
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  Reply:  Prohibition is applicable on import of AC with refrigerants under HS Code 84151010 and 
84151090.  
3.1.5.1 Import prohibitions  
Question 16: page 55 
The Indian Ministry of Defence announced a phased embargo of defence equipment on 9 August, 
but these 101 subject items include measures for items that may not necessarily be directly related 
to security reasons, such as bulletproof vests and helmets, and items with dual use, such as 
fixed-wing UAVs. Japan sees that it is n ot appropriate to prohibit imports solely on security grounds 
and this measure may violate Article 11.1 of the GATT. What is India's position on the WTO 
consistency of this measure?  
Reply: Defence procurements by Government of India is a Government procure ment, based on a 
well laid -out transparent policy and procurement process. India is not a signatory of the WTO 
Government Procurement Agreement.  
Question 17: page 55 
The Indian Ministry of Commerce and Industry (MCI) has imposed a ban on the import of air 
conditioners (HS: 84151010, but only those with refrigerant) on 15 October. What is India's position 
on the WTO consistency of this measure, which may violate Article 11(1) of the GATT?  
Reply: The measure was necessary for application of standards and regulations for marketing of the 
item, besides reducing risks to human, animal and plant life and health in light of India 's commitment 
to Montreal protocol. Hence the measure is consistent with India 's commitment to WTO.  
3.1.5.2 Import licen sing and restrictions  
Question 18: page 59 
The Indian Ministry of Commerce and Industry (MCI) has placed the import of finished LCD 
televisions (HS852872) on a Restricted basis on 30 July, which may violate Article 11.1 of the GATT. 
What is India's positio n on the WTO consistency of this measure?  
Reply: Intervention on finished LCD televisions was necessary for application of standards and 
regulations for marketing of the item. The measures taken by India are consistent with the WTO 
rules under the GATT and  the Agreement on Import Licensing Procedures and are administered in a 
fair and equitable manner, including with respect to the time frame for grant of import licen ces, post 
approval by the Exim Facilitation Committee (EFC).  
Question 19: page 59 
The Indian Ministry of Commerce and Industry (MoIT) has placed finished tyres on a Restricted basis 
on 12 June, which may violate Article 11.1 of the GATT. What is India's position on the WTO 
consistency of this measure?  
Reply: The decision regarding regulatin g any item of import is always taken in consultation with the  
line ministries / departments and it is subject to revision / withdrawal / amendment. This measure 
has been taken keeping in view the quality and safety issues and is consistent with the WTO rul es 
under the GATT and the Agreement on Import Licensing Procedures.  
Question 20 : page 59 
On 2 July, the Ministry of Power of India announced that it would impose an import review system 
for power supply related equipment, machinery and components, but sin ce this measure is imposed 
only on imported equipment, machinery and components and does not apply to domestic 
equivalents, it may violate the principle of national treatment stipulated in Article 3 of the GATT. In 
addition, since it is difficult to elimin ate security concerns only by examining imports, there is a WT/TPR/M/403/Add.1  
 
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  suspicion that this measure is an unnecessarily trade -restrictive restriction in light of the policy 
objectives.  
Reply: Power sector is a strategic and critical sector wherein the Power Supply Sys tem is critical 
infrastructure and sensitive to the country as it supports not only our national defence and vital 
emergency services (including health, disaster response, critical national infrastructure), but also 
the entire economy and the day to day li fe of the citizens of the country. Any disruption to Power 
Supply System can have catastrophic effects and has the potential to cripple the entire country. 
Therefore, the Government of India order of 2nd July 2020 to test all imported equipment, 
components  and parts for use in the Power Supply System for checking any kind of embedded 
malware/Trojans/cyber threat has been issued to ensure security, integrity and reliability of our 
Power Supply System. Therefore, the order is to address India 's Security conce rns and cannot be 
construed as trade restrictive.  
Question 21: page 60 (Table  3.10) 
According to Table 3.10, Import quota is distributed to Sandalwood. Japan would like to request 
India to provide following information.  
1)  When this measure was introduced  
2)  Objective of this measure (As the purpose of this measure is described as "Protect plant life; 
and conservation of exhaustible natural resources", Is this measure intended to protect 
Sandalwood in foreign countries? If so, in which countries ? why?)  
3)  Countries from which India imports Sandalwood  
4)  Relevance to domestic timber industry (e.g. types of processed products made from the 
imported Sandalwood, volume of domestic production of Sandalwood log and processed 
products)  
Reply: The meas ure was introduced in the year 2006 vide DGFT Notification No.02 of 07.04.2006, 
which is available in the public domain and can be accessed at dgft.gov.in.  Sandalwood trade is 
regulated in many countries including India as it is considered a highly -restric ted tree species. India 
has put import of Sandalwood under restricted category keeping in view the objectives of 
conservation of this rare tree and ensuring fair and legal trade. Imports of Sandalwood (12119050 
& 44039922) are taking place from Australia, UAE, Indonesia and Mauritius. Within India, in 
Reserved and Protected Areas, felling of trees is regulated under the Forest Conservation Act, 1980, 
whereas in private areas, felling of tree species, including Sandalwood, is regulated as per the State 
specific Acts/State Forest Act/ Felling and Transit Rules/Tree Preservation Act, etc.  
3.1.6 Anti -dumping, countervailing, and safeguard measure  
Question 22: page 60 
Japan would like to request India to provide with the detailed explanation separately on eight 
questions (points) below regarding the bilateral safeguard investigation on PVC Suspension Grade 
Resin, which India announced on its gazette on 8th September, and belatedly notified Japan on 
22 September. 1) The petitioning companies, which are terme d as "domestic industries" in 
India-Japan CEPA, only constitutes about 25% of the Indian production. Japan considers it goes 
against the definition of "domestic industry" that collective output should constitute a major 
proportion of the total domestic pro duction; and would like to ask India's views on its grounds of 
the safeguard investigation. 2) Why the safeguard investigation was conducted only for Japan, while 
imports from other countries have also increased. 3) Under CEPA India has to identify the inj ury 
caused specifically by the increased imports from Japan, and wonder how India comply. 4) On what 
basis India assesses the remedies of injuries, while the domestic production falls short of the 
demand. 5) Until when India continues the investigation. 6)  When India holds the public hearing. 7) 
When India provides the prior consultation with Japan to exchange views and to reach an agreement 
on compensation. 8) Whether or not India plans to utilize the WTO safeguard measures.  WT/TPR/M/403/Add.1  
 
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  Reply:  Since this is an ongoing  bilateral investigation, it is premature to comment on the questions 
put by Japan. DGTR will conduct this investigation in accordance with the Bilateral Safeguard Rules 
under India – Japan CEPA. Japan is encouraged to raise/ discuss this issue bilaterally . 
Question 23: page 68 (para. 3.94 ) 
According to the report by the Secretariat, the Applications to initiate an investigation to impose a 
safeguard measure must be made on behalf of the domestic industry. Are there any standards on 
deciding whether the Application is made "on behalf of the domestic industry" or not?  
Reply:  The term 'domestic industry' in relation to a safeguard investigation is defined in 
Section  8B(6)(b) of the Customs Tariff Act, 1975.  
3.1.6.3 Safeguard measures  
Question 24: page 69 (para. 3.1 ) 
Japan regrets the finding of serious injury for single mode optical fibre. There is a concern about the 
consistency with the requirement of unforeseen developments under the WTO Agreements, and the 
government of India does not seem to have confirmed an inc rease in imports as a result of the effect 
of the obligations incurred by a contracting party under the WTO Agreements (including tariff 
concessions). An overwhelming majority of Optical Fiber imports to India is from China. Japan 
believes that the investi gating authority should have carefully determined the scope of products and 
its country of origin, whose increased imports are found to be a substantial cause of serious injury 
or threat of injury to the domestic industry. The Indian investigating authorit y should also have 
properly examined the injurious effect of the products to the domestic industry by excluding the 
products which do not directly compete with those of the domestic industry. Additionally, India 
projected the annual import figures by multi plying the figure of one quarter period in the relevant 
year (so called "annualization "). This method was found inconsistent with the WTO Agreement in 
the DS518 Panel Report, so wonder why India decided to use the same method.  Japan also wonders 
why the In dia notification was belated and done only after 3 weeks from the final findings by Ministry 
of Commerce & Industry. Also, India has not notified the decision, so we would like to ask when the 
measure will be imposed, if the authority is still examining th e proposed measure or not, and if there 
are any chance for interested parties to express the views.  
Reply: India has already notified that a safeguard measure on this product shall not be applied.  
3.2 Measures Directly Affecting Exports  
Question 25: page 72 (para. 3.109 ) 
Japan would like to request India to provide the following information regarding export restrictions 
on wood products described in the table 3.19: restricted with conditions for 1 line, prohibited for 
4 lines and prohibited with condit ions for 15 lines.  
1)  HS codes and tree species for the regulated products  
2)  Descriptions on the regulations for each regulated line  
3)  Reasons for the regulations for each  
4)  Law and its provisions that stipulates each regulation, and the competent authority for each 
regulation  
5)  Rationale for consistency with WTO rules of export prohibition. (Supposing there would be the 
reason such as protection of specific tree species, Japan would appreciate if India would share 
the legal rationale of the meas ures in terms of WTO consistency)  
Reply: The policy and policy conditions related to Wood and Wood Products, against the HS codes, 
are explicitly mentioned in the ITC HS Export Policy, 2018, which is available in the public domain 
and can be accessed at dg ft.gov.in. All other products which are not mentioned in the export policy, WT/TPR/M/403/Add.1  
 
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  are freely exportable.  As per the provision of the Foreign Trade Policy, all the wood products are 
prohibited for export except handicraft items of wood. Further, Value Added products of Sandalwood 
and red sanders are under 'Restricted Category ' and hence export of such products  is allowed subject 
to export authori zation issued by the DGFT.  
3.3 Measures Affecting Production and Trade  
3.3.2 Standards and other technical requirements  
Question 26: page 84 (para. 3.161 ) 
According to the report by the Secretariat, 27.3% of Indian standards were harmonized with 
international standards as of March, 2018. Does India have an intention to raise the ratio and 
improve consistency with international standards? Isn't there a deliberate adoption of 
trade -restrictive standard, with the  intention to exclude foreign products?  
Reply:  Bureau of Indian Standards (BIS), India's national standard body, has formally accepted the 
'Code of Good Practice for the preparation, adoption and application of standards '. BIS technical 
committees try to a lign the Indian Standards with the International Standards of International 
Standardization Organizations ISO and IEC, where available and to the extent possible, keeping in 
consideration the specific climatic / environmental conditions and technological d evelopment of the 
country.  In order to facilitate global trade and improve market competitiveness, BIS is continuously 
striving to increase the extent of harmonization of Indian Standards with ISO/IEC standards.  
Question 27: page s 83-85 (para. 3.166 ) 
India states that the policy objective of the compulsory standardization of steel products under the 
Quality Control Order (QCO) issued by the Ministry of Steel of India is to ensure the safety and 
quality of the products. What is India's position on the W TO consistency of this measure, which may 
violate Article 2.2 of the TBT Agreement, as it is suspected to be an unnecessarily trade -restrictive 
regulation in light of the policy objective?  
Reply: It may be noted that the Ministry of Steel of India has been  introducing Quality Control 
Orders from the year 2012 in a phased manner with an aim to cover all steel products under the 
mandatory BIS standardi zation. It applies equally to both domestic and foreign manufacturers. It is 
non-discriminatory and is not trade restrictive and is consistent with the provisions of the TBT 
Agreement. Before issuing the Quality Control Orders, these are uploaded in WTO website and 
comments are sought from the WTO members.  The main aim of the polic y is to set the benchmark 
for the quality of steel products being manufactured or imported in the country. The quality of steel 
products directly affects the human health or safety as steel has diversified uses which has direct 
consequences on the environm ent, safety and on the health of the public at large. The 
standards/grades are framed after considering the relevant elements such as scientific and technical 
knowledge, process technology or intended end -use. 
Question 28: page 86 (para. 3.166 ) 
With respec t to mandatory certification for steel products, Japan would like to request India to 
provide with the views regarding consistency with article 2.2 of WTO/TBT agreement. The goal of 
this policy is to control quality and ensuring safety of the steel product s, however this objective 
cannot be achieved to impose regulations on intermediate goods.  
Reply:  The quality of the final products depends on the quality of input material/intermediate 
products. Accordingly, regulation has been introduced to ensure that th e input/intermediate products 
conform to the relevant standards. This is in line with India 's WTO commitments.  
Question 29: page 86 (para. 3.166 ) 
Could India explain procedure within the government to decide exemption from mandatory BIS 
certification for steel product based on the fact that mill audits of overseas steel plant cannot be 
conducted due to COVID -19? WT/TPR/M/403/Add.1  
 
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  Reply:  The Government is aware of the limitation because of COVID -19 pandemic and suitable 
measures including  extensions of date  of enforcement of the QCO standards are being considered 
by the Ministry of Steel based on the merits of requests from the stakeholders.  
Question 30: page 86 (para. 3.166 ) 
Could India explain criteria of issuing exemption from mandatory BIS certification for steel product?  
Reply: A Technical  Committee (TC) for examination and analysis of  the applications received for 
issuance of  clarifications, whether the products are covered  under the purview of the QCO, has been 
constituted. For evaluation  of steel or steel products by the TC, the applicant  needs to apply online 
on the portal  https://tc -qco.steel.gov.in/tc -qco/. If the steel or steel  products are decided by the 
Technical Committee  to be out of purview of the QCO then they are  exempted from mandatory BIS 
certification.  However, clarification in this regard is issued on  consignment basis.  
Question 31: page s 83-86 (para. 3.168 ) 
It is mentioned that licen ces to use BIS Standard Mark are granted for up to two years and may be 
renewed for up to 5  years. It is a heavy burden especially for foreign companies to apply every few 
years. TBT agreement article 2.2 stipulates that technical regulations shall not be more 
trade -restrictive than necessary to fulfil a legitimate objective. Japan would like to  know the reason 
and basis for establishing such a period of time?  
Reply:  Before establishment of BIS Act, 2016, licence was granted for a period of one year and 
further renewed for up to 2 years.  Under the provisions of BIS (Conformity Assessment) regulat ions, 
2018 framed under BIS Act, 2016, the time period of grant of licence has been extended for up to 
02 years and time period of renewal of licence has been extended up to 05 years to equally facilitate 
the domestic manufacturers as well as foreign manuf acturers.  
Question 32: page s 83-86 (para. 3.168 ) 
It is mentioned that the certification process for imports includes an on -site visit, but especially in 
the current COVID -19 pandemic situation, feasibility of on -site visit is limited particularly for those  
located outside of India. How is India considering to deal with this? If there are not alternative 
certification method, Japan presumes that the time required for certification will differ between 
products made in India and outside of India.  
Reply: Foreig n inspection visits are on hold due to the prevalent restrictions on international travel 
in view of the ongoing COVID -19 Pandemic. As soon as the situation of COVID -19 improves and the 
restrictions are lifted, India will plan the inspections (factory visi t). The product certification activity 
of BIS for licence to use Standard Mark (ISI Mark) is governed in accordance with Scheme -I of BIS 
(Conformity Assessment) Regulations, 2018. This scheme specifies factory visit of the applicant 
manufacturing premises.  During the visit, product sample from the factory  premises is also drawn 
& dispatched for independent testing in a laboratory situated in India. It is not feasible to carry out 
this activity through remote inspection.  With regard to grant a sufficient extension for obtaining 
licences, concerned regulator considers the requests as and when received from various 
associations/industries regarding extension in date of implementation of various technical 
regulations (Quality Control Orders) keepin g in view the difficulties arising due to COVID -19. 
Question 33: page s 83-86 (para. 3.169 ) 
It is mentioned that no overseas OSLs have been recognized. What is the reason for this?  
Reply: Bureau of Indian Standards under its Laboratory Recognition Scheme (B IS LRS) grants 
recognition to laboratories for testing of products as per the relevant Indian Standards for the 
purpose of conformity assessment schemes of BIS. There is a provision given in clause 12 of BIS 
LRS for recognition of overseas laboratories. BI S LRS is available on BIS website  www.bis.gov.in . As 
on date, there is no pending application from overseas laboratories seeking recognition from BIS in 
compliance to the provisions of LRS.  WT/TPR/M/403/Add.1  
 
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  Question 34: page s 83-86 (para. 3.170 ) 
The Food Safety and Standards Agency of India (FSA), under the Food Safety Standards (Labelling 
and Labeling) Regulations, has decided to allow food labelling by sticker only for some labelling 
items. Since the policy objective of this stand ard is to ensure the safety and quality of products, and 
stickers are commonly used in many other countries to achieve this objective, there is a suspicion 
that this measure is unnecessarily trade restrictive in light of the policy objective. What is India 's 
view on the WTO consistency of this measure?  
Reply:  Food Safety and Standards (Labelling and Display) Regulations, 2020 have been finalised 
after stakeholder consultations and the same were notified on 17th November  2020.  The regulation 
is aimed to stri ctly ensure that thin stickers aren 't pasted over packets and also to guarantee 
durability. These regulations are implemented with an objective to ensure consumer 's access to safe 
and quality food products. Such a requirement is applicable to domestic manu facturers also.  India 
believes that these regulations are consistent with India 's commitments at the WTO . 
Question 35: Page 86 (para. 3.170 ) 
Japan would like to request India to consider the proper modification of the current food labelling 
regulation so that the putting stickers on package are allowed for imported products.  
In the current Indian regulation, food labelling must be directly printed on a product package in 
English or Hindi and putting a sticker on package is prohibited though i t is permitted in many 
countries.  The prohibition of sticker use is excessively trade restrictive for the countries where Hindi 
or English is not commonly used in the domestic situation. In Article 8.1.1 of Codex General Standard 
for the Labelling of Prepa ckaged Foods, it is stipulated that Labels in prepackaged foods shall be 
applied in such a manner that they will not become separated from the container, and the standard 
does not require food labelling to be directly printed.  
Although India claims that t he policy object of this regulation is to ensure the safety and quality of 
food products, this measure is unnecessary trade restrictive measure because the claimed object 
can be achieved by affixing sticker, which is common in many countries and less trade  restrictive. 
Therefore, Japan would appreciate any information regarding the consistency with Article 2.2 of the 
TBT Agreement and the consideration on this issue.  
Reply:  In case of imported packaged food consignments, special dispensation for rectification on 
labelling requirements has been allowed, as per Reg. 6(4) of FSS (Import) Regulations, 2017 only 
for the following, namely (a) name and address of the importer, (b) Food Safety and Standards 
Authority of India 's logo and licen ce number, (c ) Non -Veg or Veg logo (d) Category or Sub -Category 
along with generic name, nature and composition for proprietary food. Also, special dispensation for 
rectification of labelling deficiencies with stipulated conditions has been allowed vide order dated 
22.05.2018. In Order dated 14.01.2019, Rectification is allowed on imported food consignments 
from all countries, at Customs bound warehouses in India by affixing a single non -detachable sticker 
or by any other non -detachable method next to principal display panel without altering or masking 
the original label information in any manner.  
Question 36: page 86 (para. 3.170 ) 
Japan has been requesting India to withdraw the regulation which requires the food imported to 
India to have its valid shelf life not less than the certain standard period (i.e. 60% of the whole shelf 
life or three months, whichever is shorter) at the time  of import.  The relevant Codex standard 
requires the date of minimum durability but not require the valid shelf life to be marked on food. 
Furthermore, the date of manufacture is not mandatory in the Codex standard, which may make the 
valid shelf life calc ulation difficult.  Additionally, the requirement excessively limits the transportation 
methods (i.e. sea freight cannot practically meet the condition for certain food products and only air 
cargo can be used), and it is difficult for such foods to be expor ted to India because of high costs. 
This is a serious trade barrier and not acceptable without relevant scientific evidence.  Therefore, 
Japan would like to once again request India to repeal the trade restrictive regulation, and would 
appreciate any inform ation on the consideration responding the request.  WT/TPR/M/403/Add.1  
 
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  Reply:  The regulatory provisions as stated in the regulations 5 (6)  of FSS import Regulations, 2017 
and are uniformly applicable for food import from all the countries. The idea behind this regulation 
is to empower the consumers to make informed decisions.  
3.3.3 Sanitary and phytosanitary requirements  
Question 37: page s 87-88 (para. 3.174 ) 
Japan would like to request India to provide information on specific regulations regarding GMO food, 
including restrictions on import, distribution, sales and retail as well as labelling requirement.  
Reply: At present, in India, the regulation of all activities related to GMOs and products derived 
from GMOs is governed by Rules for the Manufacture/Use/Import /Export and Storage of Hazardous 
Microorganisms, Genetically Engineered Organisms or Cells, 1989 under the provisions of the 
Environment (Protection) Act, 1986.  Food Safety and Standards Authority of India lays down science 
based standards for articles of food, including GM foods, to regulate their manufacture, storage, 
distribution, sale and import, to ensure availability of safe and wholesome food for human 
consumption and for matters connected therewith or incidental thereto. Any rules or regulations 
made in this regard would be notified in the Gazette of India and will also be accessible at the FSSAI 
Portal, www.fssai.gov.in .  
Question 38: pages 86-90 (para. 3.188)  
The Food Safety and Standards Agency of India, under the Food Safety Standards (Labelling and 
Labeling) Regulations, provides for the labelling of the date of manufacture of foodstuffs. Although 
the policy objective of this standard is to ensure the safety and quality of products, many countries  
do not require labelling of the date of manufacture of food products, and from the point of view of 
food safety, labelling of the best before or after date of consumption is sufficient to ensure this. 
What is India's view on the WTO consistency of this me asure?  
Reply: As per Food Safety and Standards (Import) Regulations, 2017 imported food product should 
have shelf life of not less than 60% or three months before expiry, whichever is less at the time of 
import. Thus, it is necessary to have "manufacturing  date". Further, Codex has also defined "Date 
of Manufacture " for use in date marking of pre -packaged foods.  
Question 39: page s 86-90 (para. 3.188 ) 
The Food Safety and Standards Authority of India (FSA) has notified proposed amendments to the 
Food Safety Standards (Food Importation) Regulations to add new registration and audit 
requirements for manufacturing facilities for foods identified as high risk by the food authority. 
Although the policy objective of this regulation is to ensure the safety an d quality of products, it is 
not sufficiently clear which foods are classified as high risk foods and which facilities are subject to 
audit, and there are doubts that this measure is unnecessarily trade restrictive in light of the policy 
objective. What is  India's view on the WTO consistency of this measure?  
Reply: As per this regulation, the food authority from time to time based on the risk, specifies the 
categories of food products to be exported to India. Accordingly, based on the risk assessment and 
history of compliance of the import of food products, the food authority, if required, may specify 
such risk categories and the same will be notified to all member countries.  
Question 40: page s 86-91 (para. 3.194 ) 
The Food Safety and Standards Authority of I ndia, under Regulation 12(2) of the Food Safety 
Standards (Food Import) Regulations, requires that exports of 24 specified crops to India be 
accompanied by a certificate stating that the crop is non -GMO. While the policy objective of the 
Standard is to ens ure the safety and quality of the product, the measure is unnecessarily trade 
restrictive in the light of the policy objective as there is currently no globally available detection 
method for proving whether a crop is GM or not and virtually no certificate  can be provided by the 
exporting country. What is India's view on the WTO consistency of this measure?  
Reply: The implementation of said order has been extended up to 1st March 2021.  WT/TPR/M/403/Add.1  
 
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  3.3.4 Competition policy and price controls  
3.3.4.1 Competition policy  
Question 41: page 91 (para. 3.197 ) 
The report by the secretariat shows anti -competitive practices. Japan would like to request India to 
provide information regarding (i)"dead copies of forms" of goods, and (ii)"to discredit another 
enter prise". Can these acts, namely (i), (ii), be regulated under the Competition Act? If so, please 
tell us the details, such as article number or actual cases, respectively. If not, can these acts be 
regulated under any other laws or will there be any revisio ns of laws in future to regulate these acts?  
Reply:  Under Section 4(1) of Indian Competition Act 2002, no enterprise or group shall abuse its 
dominant position. As per Section 4(2) of the Act, there shall be an abuse of dominant position if an 
enterprise o r a group directly or indirectly imposes, inter alia , unfair or discriminatory condition in 
purchase of sale of goods or service, denial of market access etc. Thus, the cases involving 
disparaging other enterprises (referred to as "to discredit other enterprise ") may be examined within 
the framework of law on fulfilling ingredients of the relevant provisions of competition law. As regards 
the case involving "dead copies of form ", as referred to in the query, it is stated that phrase seems 
to relate to cases of counterfeiting / infringement of IPR 's in the Indian context, which are primarily 
dealt with under specific IPR Statutes. However, in appropriate cases, competition law also may 
have an interface with such issues and in that event such cases may b e examined within the 
statutory framework of competition law on fulfilling ingredients of the relevant provisions.  
3.3.6 Government procurement  
Question 42: page s 100-101 (para. 3.232)  
On 23 July, the Ministry of Finance of India amended the General Financ ial Rules to require bidders 
from bordering countries to pre -register with a committee constituted by the Ministry of Commerce 
and Industry for public procurement by the Central Government of India for defence and security 
purposes. India is not a signator y to the Government Procurement Agreement of the WTO, and this 
measure does not immediately constitute a violation of the WTO Agreement, but we request that 
the system be properly administered and information be provided in order to create a fair and free 
competitive environment for domestic and foreign companies.  
Reply:  Rule GFR 144 (xi) dated 23.07.2020, to be read with the Public Procurement Order dated 
23.07.2020 prescribes the relevant guidelines. Accordingly, same has been incorporated in "Public 
Procurement, Preference to Make in India,  Order (PPP -MII Order) 2017 ". The system is being 
properly administered. Though India is not committed to any obligation under WTO for its 
Government Procurement, India 's Public Procurement system does not discriminate between 
domestic and foreign companies. Both Foreign and domestic c ompanies manufacturing in India are 
given same preferential treatment.  
Question 43: page 104 (para. 3.243 ) 
The Public Procurement Order (Make in India Preference), enacted by the Ministry of Commerce and 
Industry of India in June 2017, provides for preferential treatment of businesses with more than 
50% local content (local suppliers). India is not a signatory to the Government Procurement 
Agreement of the WTO, and this measure does not immediately constitute a violation of the WTO 
Agreement, but we request that the system be properly implemented and information be provided 
in order to create a fair and free competitive environment for domestic and foreign companies.  
Reply: The PPP -MII Order, 2017 provides for equal and fair ecosystem for domestic and  foreign 
companies. In fact, clause 13 & 13A of PPP -MII Order, 2017 provides for manufacturing under 
licence/ technology collaboration agreements with foreign manufacturers and foreign companies 
may enter into a Joint venture with an Indian company to part icipate in the tender.  WT/TPR/M/403/Add.1  
 
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  3.3.7 Intellectual property rights  
Question 44: page 109 (para. 3.260 ) 
According to 11(5) of Trademark Act, we understand even if a trademark filed by others in bad faith, 
which  
(a)  is identical with or similar to an earlier well-known trademark; and  
(b) is to be registered for goods or services which are not similar to those for which the earlier 
well-known trademark is registered in the name of a different proprietor, such trademark filed 
by others cannot be rejected in the process of examination unless a right holder opposes to 
the trademark.  
Japan would like to know India's plan to amend examination requirement to reject bad faith 
trademark in the process of examination without opposition by a right holder. If India does no t have 
such a plan, Japan would like to what kind of measures against bad faith trademarks Indian 
government plans to do.  
Reply: Every application for registration of trademark is examined by the registrar as to whether it 
fulfils the requirements of the A ct and the Rules.  Section 11 of the Trademark Act refers to relative 
ground of refusal for grant of registration, which can only be determined on the basis of evidence 
filed in opposition proceedings.  
Question 45: page 111 (para. 3.267 ) 
According to Report by the Secretariat, counterfeiting or pirated goods are expanding via 
E-commerce. In order to prevent these infringements, Japan would like to know what counter 
measures against such goods are implemented by Indian government.  
Reply:  The Consumer Pr otection (e -commerce) Rules 2020, provide for liabilities on e -commerce 
entities and sellers, for sale of spurious goods/services.  Additionally, the e -commerce policy is being 
drafted with a vision of providing a level playing field to all stakeholders, in cluding individual 
consumers, Micro, Small and  Medium Enterprises (MSMEs), traders, artisans, startups, while 
pursuing  developmental agenda, which addresses growth, reduces prevalent market distortions and 
inter alia , lays down requirements to restrict sal e of pirated and counterfeit products.  
3.3.7.5 IPR enforcement  
Question 46: page 112 (para. 3.271)  
We would appreciate any data that can be shared about the recent performance of the Indian 
Customs injunction at the border (e.g., the number of cases to seize infringing goods).  
Reply:  In 2018, 230 cases related to IPR violations were booked which included commodities like 
Computers, Multimedia Speakers, Halogen Tubes, Ceramic Mug, Toys, shoes, Optic Frames, Water 
Bottle Metal, Tennis Racket, Toner Cartrid ges, Shoes, Auto Parts, Men Canvas Shoes, Tyres, Auto 
Parts, Hardware Items, Baby Belly/Shoes, Fabric, footwear & Cosmetic, Automotive Safety Glass, 
Mobile phone, CDs, CDs of Window 10 Pro full version 64 Bit, Headphones, Hand Wallets, 49 " & 55" 
LED Panel, wrist watches, man hand bag, hand bag, passport cover etc.  
In 2019, 218 cases related to IPR violations were booked. The commodities were Watches, 
garments, shoes, cosmetics, HDMI Cable, Buttons, mobile phone, HDD/ computer parts, hair 
straight ener, toothbrushes, perfumes, metal chain etc.  WT/TPR/M/403/Add.1  
 
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  4. TRADE POLICIES BY SECTOR  
4.2 Energy  
Question 47: page 130 (para. 4.57 ) 
According to the report published by an automobile maker, the productions phase of the 
battery -powered electric vehicle emits more CO2 (due to the battery production) than that of an 
internal -combustion engine vehicle. In order to reduce the total amount of CO2 emissions in the 
automotive sector, therefore, the technology -neutral approach that promotes all low -emission 
technologies, s uch as hybrid -energy and bio -fuel vehicles, could be more effective. Japan would like 
to request India to provide details of its plan towards reducing the emission of CO2 in the automotive 
sector from the perspectives of well -to-wheel and life -cycle assess ment.  
Reply: Government of India supports promotion of xEV 's including Strong Hybrid vehicles. India has 
also taken measures to curb vehicular pollution through regulatory measures such as early 
introduction of Bharat Stage - VI in 2020. With this aim, necessary steps are being taken to promote 
other low emission vehicles such as bio -fuel & Hydrogen fuel vehicles.  
4.4 Services  
4.4.2 Telecommunications  
Question 48: page 144 (para. 4.111)  
Japan would like to request India to provide with the details regarding its plans to introduce (1) 
National E -commerce Policy, (2) Personal Data Protection Bill, and (3) Non -personal data governance 
bill, especially on the aspect where new obligations to be introduced to the companies engaging in 
the cross -border dat a transfer. We request sufficient transparency on the bills and policy are ensured 
to make its scope and content be specific, clear and responsible so that free flow of information and 
the rights of foreign enterprises will not be unduly infringed.  
Reply: The draft e -commerce policy document has been placed in the public domain for comments/ 
suggestions. The draft is still under the consideration of the Government.  'The Personal Data 
Protection Bill, 2019' is under consideration of the Parliament. The said Bill has provisions for data 
privacy, storage, cross border data transfers and processing. For further details, the PDP Bill can be 
accessed at : 
http://164.100.47.4 /BillsTexts/LSBillTexts/Asintroduced/373_2019_LS_Eng.pdf . 
With respect to the Non -Personal Data and its further protection and governance, the Government 
has constituted a committee of experts which is deliberating on the subject.  The draft bills/policy 
and regulations are being prepared with extensive stakeholder consultations and the entire exercise 
is being done with great transparency.  
Question 49: page 144 (para. 4.111 ) 
Regarding the Personal Data Protection Bill, 2018 referred in paragraph 4.111 of the Secretariat 's 
report, Japan would like to hear India's views on the consistency of the regulations on storing and 
processing personal data to be introduced based on the Bill with India's commitments for national 
treatment under the GATS.  
Reply:  India c onsiders its Personal Data Protection Bill, 2019 to be consistent with India's 
commitments under the GATS.  
4.4.3 Transport  
4.4.3.1 Air transport  
Question 50: page 150 (para. 4.133)  
The link Footnote. 208 cannot be accessed, please correct the link.  WT/TPR/M/403/Add.1  
 
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  Reply:  The correct link is as below:  
https://dgca.gov.in/digigov -
portal/?dynamicPage=civilAviationRequirements/6/0/viewDynamicRulesReq   
Question 51: page 153 (para. 4.148 ) 
If there are any restrictions regarding aircraft repair and maintenance services for foreign suppliers, 
Japan would like to request India to provide with the details.  
Reply: In so far as technical requirements are concerned, there are no restrictions on aircraft repair 
and maintenance services provided by the Director General Civil Aviation (DGCA), India approved 
foreign maintenance organi zations. Such organi zations are required to meet the requirements laid 
down by the DGCA, India for obtaining approval before they can carry out maintenance of Indian 
registered aircraft including engines.  
  WT/TPR/M/403/Add.1  
 
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  JAPAN (ADDITIONAL WRITTEN QUESTIONS)  
QUESTIONS  REGARDING THE SECRETARIAT REPORT  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.5 Import prohibitions, restrictions, and licensing  
Question 1:   
Japan would like to request India to provide the information regarding the purpose of the import 
prohibition on air conditioners with refrigerant (HS84151010 and HS84151010) announ ced by the 
Government of India on October 15, 2020, and the reasons for its immediate enforcement without 
transitional period.  
Reply:  Air conditioner with refrigerant falling under ITC HS codes 84151010 and 84151090, as 
specified in the DGFT Notification N o.41 dated 15.10.2020, are 'Prohibited ' for import. The 
prohibition was necessary for application of standards and regulations for marketing of the item, 
besides reducing risks to human, animal and plant life and health in light of India 's commitment to 
Montreal protocol.  Moreover, as per the Ozone Depleting Substances (Regulation and Control) 
Amendment Rules, 2014, import of air conditioners containing Group VI substances (HCFCs) is 
prohibited since 1st July, 2015 . 
3.3 Measures Affecting  Production and Trade  
3.3.7.5 IPR enforcement  
Question 2: Page 111 (para.  3.267 ) 
The Draft National E -Commerce Policy in the report has attracted the attention of many parties 
involved in Japan as a measure against the increasing number of counterfeit pr oducts on the 
Internet, including in India. We know that Japanese stakeholders concerned have submitted 
comments on the public comments in March 2019. Please tell us the current progress (e.g., timeline 
and prospect for enacting the bill, any big change th rough the public comments).  
Reply: The draft e -commerce policy document has been placed in the public domain for comments/ 
suggestions. Detailed consultations are ongoing. Based on consultations, the next steps will be 
taken. Further, the Consumer Protecti on (e -commerce) Rules 2020 have been introduced, which 
provide for liabilities on e -commerce entities and sellers, for sale of spurious goods/services.  
 
  WT/TPR/M/403/Add.1  
 
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  JAPAN  (FOLLOW -UP QUESTIONS)  
2 TRADE AND INVESTMENT REGIMES  
2.4 Investment Regime  
2.4.2 Foreign investment  
Question 5: With regard to the restrictions on the entry of foreign companies in the retail industry 
(single -brand and multi -brand), it is not an immediate violation of the WTO Agreement, but Japan 
requests t he relaxation of such restrictions from the viewpoint of further promoting investment by 
Japanese companies, and would like to seek understanding from the Indian side.  
Reply:  As per extant FDI Policy, 100% FDI is allowed in Single Brand Retail Trading under Automatic 
route and FDI up to 51% in Multi -Brand Retail Trading is permitted under Government Approval 
route, subject to conditions mentioned in the extant FDI Policy, which  may be seen at 
https://www.dipp.gov.in . The FDI Policy is reviewed on an ongoing basis, to ensure that India 
remains attractive & investor friendly destination and decisions on changes to the FDI policy are 
taken, i n accordance with policy priorities and in consultation with all stakeholders.  
Follow -up Question:  Appreciating the Indian flexible reply, Japan believes ongoing bilateral 
discussions and reviews for foreign investment promotion in India will help India to  further attract 
foreign investors. Regarding the FDI Policy, Japan would like India to consider the gradual increase 
of the share of FDI in Multi -Brand Retail, which is currently allowed up to 51%.  
Reply:  The FDI Policy is reviewed on an ongoing basis, to  ensure that India remains attractive and 
investor friendly destination and decisions on changes to the FDI policy are taken, in  accordance with 
policy priorities and in consultation with all stakeholders.  
Question  24: Japan regrets the finding of serious injury for single mode optical fibre. There is a 
concern about the consistency with the requirement of unforeseen developments under the WTO 
Agreements, and the government of India does not seem to have confirmed an increase in imports 
as a result of the e ffect of the obligations incurred by a contracting party under the WTO Agreements 
(including tariff concessions). An overwhelming majority of Optical Fiber imports to India is from 
China. Japan believes that the investigating authority should have carefull y determined the scope of 
products and its country of origin, whose increased imports are found to be a substantial cause of 
serious injury or threat of injury to the domestic industry. The Indian investigating authority should 
also have properly examined the injurious effect of the products to the domestic industry by excluding 
the products which do not directly compete with those of the domestic industry. Additionally, India 
projected the annual import figures by multiplying the figure of one quarter peri od in the relevant 
year (so called "annualization "). This method was found inconsistent with the WTO Agreement in the 
DS518 Panel Report, so wonder why India decided to use the same method.  
Japan also wonders why the India notification was belated and done only after 3 weeks from the final 
findings by Ministry of Commerce & Industry. Also, India has not notified the decision, so we would 
like to ask when the measure will be imposed, if the authority is still examining the proposed measure 
or not, and if  there are any chance for interested parties to express the views.  
Reply:  India has already notified that a safeguard measure on this product shall not be applied.  
Follow -up Question:  Japan thanks India's response and welcomes India 's decision that a safeg uard 
measure on this product shall not be applied. Just to make sure, is it correct understanding that it 
was the final decision and India will not apply the recommended safeguard measure on the product 
anymore?  
Reply:  Yes. An order in this regard has also  been published on the website of DGTR:  
https://www.dgtr.gov.in/sites/default/files/TRU%20Final%20Recommendation.pdf  
Question 29: Could India explain procedure wit hin the government to decide exemption from 
mandatory BIS certification for steel product based on the fact that mill audits of overseas steel plant 
cannot be conducted due to COVID -19? WT/TPR/M/403/Add.1  
 
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  Reply:  The Government is aware of the limitation because of COVID -19 pandemic and suitable 
measures including  extensions of date of enforcement of the QCO standards are being considered by 
the Ministry of Steel based on the merits of requests from the stakeholders.  
Follow -up Question: India replied to Question 29 by stating "The Government is aware of the 
limitation because of COVID -19 pandemic and suitable measures including extensions of date of 
enforcement of the QCO standards are being considered by the Ministry of Steel based on the merits 
of requests from the stakeholde rs.", Japan understands that date of enforcement of QCO standards 
are extended partly. Could India explain the criteria for extension?  
Follow -up Reply: QCOs are formulated to ensure that the quality of steel, being placed in the Indian 
market is as per the  required standards. The request for extension of entry into force of the 
regulations may be considered by the regulator based on facts and circumstances of the case and 
suggestions received from the stakeholders.  
Question 34:  The Food Safety and Standards  Agency of India (FSA), under the Food Safety 
Standards (Labelling and Labelling) Regulations, has decided to allow food labelling by sticker only 
for some labelling items. Since the policy objective of this standard is to ensure the safety and quality 
of products, and stickers are commonly used in many other countries to achieve this objective, there 
is a suspicion that this measure is unnecessarily trade restrictive in light of the policy objective. What 
is India's view on the WTO consistency of this meas ure? 
Reply:  Food Safety and Standards (Labelling and Display) Regulations, 2020 have been finalized 
after stakeholder consultations and the same were notified on 17th November, 2020.  The regulation 
is aimed to strictly ensure that thin stickers aren 't pasted over packets and also to guarantee 
durability. These regulations are implemented with an objective to ensure consumer 's access to safe 
and quality food products. Such a requirement is applicable to domestic manufacturers also.  India 
believes that th ese regulations are consistent with India 's commitments at the WTO.  
Question 35: Japan would like to request India to consider the proper modification of the current 
food labelling regulation so that the putting stickers on package are allowed for imported  products.  
Reply:  In case of Imported packaged food consignments, special dispensation for rectification on 
labelling requirements has been allowed, as per Reg. 6(4) of FSS (Import) Regulations, 2017 only 
for the following, namely (a) name and address of t he importer, (b) Food Safety and Standards 
Authority of   India 's logo and licen ce number, (c) Non -Veg or Veg logo (d) Category or Sub -Category 
along with generic name, nature and composition for proprietary food. Also, special dispensation for 
rectificati on of labelling deficiencies with stipulated conditions has been allowed vide order dated 
22.05.2018. In Order dated 14.01.2019, Rectification is allowed on imported food consignments from 
all countries, at Customs bound warehouses in India by affixing a s ingle non -detachable sticker or 
by any other non -detachable method next to principal display panel without altering or masking the 
original label information in any manner.  
Follow -up Question:  Japan would like India to explain  
i) why the longer valid shelf -life requirement is needed (i.e., 60% of the whole shelf life 
or three  months, whichever is shorter), and  
ii) how this regulation can empower the consumers to make informed decisions.  
Japan also would like India to explain the corresponding regulations re garding valid shelf life applied 
to domestically produced food in relation with National Treatment Principle.  
Reply: This provision is intended to ensure that any food imported into India has sufficient shelf life 
left till the time it is consumed by a consumer, while recognizing the time that would usually take in 
distribution and sale of any products. Food Safety and Standards (Labelling and Display) Regulations, 
2020 is applied on a non -discriminatory basis.  
Question 46: We would appreciate any data t hat can be shared about the recent performance of 
the Indian Customs injunction at the border (e.g., the number of cases to seize infringing goods).  
Reply:  In 2018, 230 cases related to IPR violations were booked which included commodities like 
Computers, Multimedia Speakers, Halogen Tubes, Ceramic Mug, Toys, shoes, Optic Frames, Water WT/TPR/M/403/Add.1  
 
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  Bottle Metal, Tennis Racket, Toner Cartridges, Shoes, Auto Parts, Men Canvas Shoes, Tyres, Auto 
Parts, Hardware Items, Baby Belly/Shoes, Fabric, footwear & Cosmetic, Automoti ve Safety Glass, 
Mobile phone, CDs, CDs of Window 10 Pro full version 64 Bit, Headphones, Hand Wallets, 49 " & 55" 
LED Panel, wrist watches, man hand bag, hand bag, passport cover etc.  
In 2019, 218 cases related to IPR violations were booked. The commoditie s were Watches, garments, 
shoes, cosmetics, HDMI Cable, Buttons, mobile phone, HDD/ computer parts, hair straightener, 
toothbrushes, perfumes, metal chain etc.  
Follow -up Question: Japan would like to ask about the total number of IP rights which were 
registered with Customs.  
Reply: IPR registration (Right wise) with Customs as on 31.12.2019 are as under:  
Trade Mark - 607 
Design - 27 
Copyright - 09 
Geographical Indications – 0 
  WT/TPR/M/403/Add.1  
 
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  UNITED STATES  
PART I:  QUESTIONS BASED ON THE SECRETARIAT REPORT (WT/TPR/S/403)  
SUMMARY  
Page 11 (para. 23):  The Secretariat Report states that India has adopted leniency provisions 
regarding cartels.  
Question 1:  Can India provide more information on what these leniency provisions are, their 
rationale, and whether any o f the cartels subject to these provisions involve state -owned 
enterprises?  
Reply:  Section 3 (3) of the Competition Act proscribes cartels. Further, the leniency regime of 
Competition Law is governed by Section 46 of the (Indian) Competition Act, 2002 which  provides 
that "The Commission may, if it is satisfied that any producer, seller, distributor, trader or service 
provider included in any cartel, which is alleged to have violated Section 3, has made a full and true 
disclosure in respect of the alleged vio lations and such disclosure is vital, impose upon such 
producer, seller, distributor, trader or service provider a lesser penalty as it may deem fit, than 
leviable under this Act or the rules or the regulations. " The rationale behind incorporating such a 
provision in Competition Law is to encourage cartel participants to come forward and report the 
existence of cartels to the Commission themselves, in lieu of reduced penalties, at times up to 100%, 
as otherwise since cartel arrangements are often hatched in  secrecy, it is difficult for the competition 
agency to obtain direct evidence of a meeting of minds/ existence of an agreement, to establish the 
same. To supplement Section 46, the Commission, under the provisions of Section 64 of the 
Competition Act, has  also framed the Competition Commission of India (Lesser Penalty) Regulations, 
2009. Regulation 4 thereof provides that reduction in penalty may be given up to 100% to the first 
leniency applicant, up to 50% to the second leniency applicant, and upto 30% t o the third and 
henceforth leniency applicants. As per the amendment made to the leniency regulations in 2017, 
now even an individual may, in his capacity, approach the Commission as a lesser penalty applicant 
and seek reduction in penalties. In terms of S ection 48 of the Competition Act, the Commission has 
the power to impose penalties upon individuals also, for the anti -competitive acts of their respective 
companies. Hence, to seek reduction in such penalty, the individuals may also now approach the 
Commi ssion independently as leniency applicants. Till date, several cases have been decided by the 
Commission which involved applications for leniency filed by one or more erring entities under 
Section 46 of the Competition Act. The law as such, does not make a ny distinction with respect to 
state-owned enterprises who are part of cartels. The provision applies equally to both private as well 
as state -owned enterprises. However, the decisions given till date under the leniency regime, do not 
involve any applicati on under Section 46 filed by any state -owned enterprise.  
2 TRADE AND INVESTMENT REGIMES  
2.3 Trade Agreements and Arrangements  
2.3.1 WTO  
Page 35 (para. 2.20): According to the Secretariat Report,  Table 2.2, India last submitted a 
Table  ES:1 notification to the Committee on Agriculture on 30 July 2012 with the latest year covered 
being marketing year 2009 -10. 
Question 2:  Please explain why India has not submitted a Table ES:1 notification in more than 
eight years, and its most recent notificat ion covers a marketing year that is more than a decade 
ago.  
Reply: India will notify its Export subsidy notifications in due course.  
Question 3:  Please indicate a firm date as to when all outstanding ES:1 and ST/ES:2 notifications 
will be submitted.  
Reply: India will submit the relevant notifications in due course.  WT/TPR/M/403/Add.1  
 
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  2.4. Investment Regime  
2.4.2 Foreign investment  
2.4.2.1 Policy framework  
Page 40 (paras.  2.36 and 2.37 ): 
Question 4:  Is India planning to expand the list of source economies and/or sectors fo r which 
investments are required to go through the 'government route '? 
Reply: The FDI Policy is reviewed on an ongoing basis, to ensure that India remains attractive & 
investor friendly destination and decisions on changes to the FDI policy are taken, in accordance 
with policy priorities and in consultation with all stakeholders.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.3 Tariffs  
3.1.3.1 Applied tariffs  
Pages 47 -48 (paras. 3.26-328): The Secretariat 's Report notes a concerning trend of tariff 
increases in non -agricultural goods. The United States has serious concerns regarding 
inconsistencies between India 's tariff increases and its bound tariff commitments to provide 
duty-free access for certain ICT products and telecommunications equipment.  
Question 5:  Can India please explain how measures that appear to raise its applied rates on certain 
ICT products are consistent with its duty -free bound tariff commitments?  
Reply: The tariff levied b y India on certain ICT products is currently under the terms of reference 
of the WTO 's disputes ' panels. Tariffs on any product, including ICT products, as maintained by 
India, are consistent with its bound duty commitments.  
3.1.3.3 Tariff rate quota (TRQ)  
Page 50 (para. 3.34): According to the Secretariat Report, only public entities, including some  
state trading agencies such as the State Trading Corporation, may import under the MFN TRQ 
Scheme.  
Question 6:  Please explain how limiting the participation under the MFN TRQ Scheme to public 
entities and not allowing private traders the opportunity to co mpete is consistent with the general 
principles of non -discriminatory treatment set out in the Article XVII of GATT.  
Reply: Imports under TRQ scheme are made under commercial considerations and as such are 
consistent with the provisions of Article XVII of  GATT.  
3.1.4 Other charges affecting imports  
Page 52 (para. 3.41):  In March 2020, India adopted a 2% equalization levy or "digital services 
tax." The tax applies only to non -resident companies with annual revenues in excess of 
approximately INR 20 million  (approximately U SD 267,000), and it covers online sales of goods and 
services to, or aimed at, persons in India. The tax went into effect on 1 April 2020.  
Question 7:  Why did India choose to adopt a tax that applies only to foreign service providers and 
digital services, rather than a tax applicable to all domestic and foreign services?  
Reply: The existing international tax rules generally attach a taxing right to prof its derived from a 
physical presence in a jurisdiction. However, given globali zation and the digitali zation of the 
economy, businesses can, with or without local physical operations, participate in an active and 
sustained manner in the economic life of a m arket jurisdiction and generate substantial value from 
interaction with users and customers. If this engagement with market jurisdiction is without physical 
presence, market jurisdiction is deprived of the tax revenue even though digital businesses are abl e 
to generate profits through participation in   the economic life of the market jurisdiction. The tax is 
applicable for only those non - resident service providers which do not have Permanent Establishment 
(PE) in India for the reason discussed above. Fore ign Service providers having PE in India are not WT/TPR/M/403/Add.1  
 
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  subjected to EL as they are already paying taxes in India on account of the PE (same as Indian 
service providers). Hence, it is non -discriminatory and in fact ensures level -playing field between 
the resident  and non -resident service providers.  
Page 55 (para. 3.51):  The Secretariat Report states, "(i)n 2020, India imposed a Health Cess, at 
a rate of 5%, on imported medical devices falling under HS headings 9018 -9022, to finance the 
health infrastructure and s ervices. The Cess is levied in addition to any other customs duties; 
however, it does not apply to medical devices that are exempt from customs duty and inputs/parts 
used in the manufacturing of medical devices. " The Secretariat Report cites a custom 's Notification 
No. 08/2020 -Customs, 2 February 2020.  
Question 8:  Please provide a complete explanation of the formula used to determine the health 
cess. 
Reply: Health Cess is calculated at the rate of 5% on the assessable value of import. The total 
customs duty  on such goods is within the bound duty committed by India in the WTO.  
Question 9:  Please identify which products are being charged a 5% cess. 
Reply: Specified items falling under headings 9018 to 9022 are subjected to Health Cess. However, 
certain category of imports, as notified vide notification No. 8/2020 -Customs, dated 2  February  2020 
are exempt from Health Cess.  
Question 10:  Is the imposition of the cess to build domestic capacity in the medical devices sector 
as a part of localization efforts under Make in India?  
Reply: Health Cess has been imposed to fund the creation of infrastructure for health services in 
the aspirationa l districts of the country.  
Question 11:  Please explain the rationale for the imposition of the cess, considering the 
Government of India 's stated goal of controlling health costs to patients.  
Reply: Health Cess has been imposed to fund the creation of in frastructure for health services in 
the aspirational districts of the country. This cess would generate resources for health services in 
these districts.  
3.1.5 Import prohibitions, restrictions, and licensing  
3.1.5.2. Import licensing and restrictions  
Page 59 (para. 3.60): According to the Secretariat Report, in 2018 India declared quantitative 
restrictions (QRs) for some types of peas, which have subsequently been renewed more than three 
times, including this year. The Secretariat Report states India imposed these quotas to protect small 
farmers. India has maintained that these QRs are only temporary, but it has not provided a timeline 
to remove them. India 's response to concerns raised in the Committee on Market Access (CMA) and 
the Council for Trade in Goods (CTG) held on 11 June 2020 was that it understood temporary 
quantitative restrictions were never "required to be tariffied " during the Uruguay Round negotiations, 
and therefore the prohibition of QRs in Article 4.2 of the Agreement on Agriculture (AoA) should not 
extend to Article XI:2(c) of the GATT. The United States is very concerned by the trade -distortive 
impact of these policies.  
Question 12:  Please elaborate on India 's interpretation of Article 4.2 of the AoA and its 
non-applicability.  
Reply : India has stated the legal basis of its measures pertaining to quantitative restrictions on 
certain varieties of pulses previously in response to the questions raised by Members in the 
Committee on Market Access, and the Council for Trade in Goods and Co mmittee on Agriculture. 
While the question whether Article 4.2 of the AoA permits certain derogations set out in Article 
XI:2(c) rests upon the products in question, the nature and duration of restrictions, etc., these 
measures, in India 's view, very well satisfy the requirements of various public policy considerations 
under Article XX (General Exceptions) of the GATT 1994.  WT/TPR/M/403/Add.1  
 
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  Question 13:  Through what process did India determine these QRs were necessary, and through 
what process did it decide to renew them?  
Reply:  The measure has been imposed for food and livelihood security of small and marginal 
farmers in India. It has been imposed after due consultations and is being regularly reviewed in the 
light of domestic demand and supply situation.  
Question 14:  Please indicate a firm date when India will remove these QRs.  
Reply: The Government regularly undertakes review of such measures and such a decision will be 
taken based on the overall demand -supply situation in the domestic market.  
Page 60 (para. 3.65): The Secretariat Report notes that India in September 2019 adopted a 
compulsory registration requirement for importers of steel products. The report suggests that the 
new requirement is intended to support monitoring of trade volumes.  
Question 15:  Please describe the nature of the new requirement.  
a. What types of information must importers provide to Indian authorities, and when 
must such information be provided?  
b. What are the procedures involved?  
c. How is the information that is obtained under the Steel Import  Monitoring System 
additional to or different than the information previously collected or otherwise 
available to Indian authorities under regular import data collection mechanisms?  
Reply:  
a. The importer is required to provide information pertaining to quantity and value of steel 
intended to be imported, technical details including the grade of steel as well as special properties, 
adherence to IS standards and QCOs issued by M/o Steel, intended end -use, ports of export and 
import, country o f origin, etc.  
b.  SIMS requires importers to submit advance information in an online system for import of items 
under Chapter 72, 73 and 86. On submission of online data / information, the system generates an 
automatic unique Registration Number. No manua l documents are required to be submitted to any 
public authority for this purpose.  
c.  Bill of Entry is the only primary data generation mode for imports. Data collected in the Bill of 
Entry is aimed at effective duty assessment and may not be sufficient t o figure out the exact grade 
of steel and its possible end use. SIMS, on the other hand, captures exhaustive and granular 
information about the goods being imported.  
Page 60 (para. 3.61):  The Secretariat Report notes that in an effort to impose quotas to protect 
its farmers, India 's "Central Government, after conducting an investigation, determines that goods 
are imported in such an increased quantity and under such conditions as to cause  or threaten to 
cause serious injury to domestic industry ". The United States is concerned that exports of U.S. pulses 
may be unfairly restricted.  
Question 16:  Please explain India 's investigative process to decide how imports may cause serious 
injury to domestic industry , including what data and information sources are used.  
Reply: Serious injury to the domestic industry on account of surge in imports is investigated under 
Section 8(B) of the Customs Tariff Act read with Customs Tariff (Identification and  Assessment of 
Safeguard Duties) Rules, 1997 to consider imposition of a Safeguard measure in the form of custom 
duty.  
Question 17:  Please explain the regulatory process through which interested parties may provide 
comments and participate  in the Governme nt's injury investigation.  
Reply: India's Directorate General of Trade Remedies  (DGTR 's) website provides information 
regarding any ongoing safeguard investigation. The notification of initiation of every safeguard WT/TPR/M/403/Add.1  
 
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  investigation provides guidance to interested parties to submit information to the DGTR. Under 
relevant rules, trade notices pr ovide for format of applications seeking data from various 
stakeholders. These provide opportunities for participation to interested parties.  
3.1.6 Anti -dumping, countervailing, and safeguard measures  
3.1.6.1 Anti -dumping measures  
Page 64 (para. 3.83):  The Secretariat Report states that India amended its circumvention rules 
in February 2020 to further clarify the definition of circumvention.  
Question 18:  Consistent with India 's prior notifications regarding changes to circumvention laws, 
could India please  indicate when it will notify this change to the WTO Committee on Anti -Dumping 
Practices for review.  
Reply: The changes have been notified to the WTO on 04 January 2021.  
Page 64 (para. 3.84):  The Secretariat 's report discusses the administrative process that the 
Directorate General of Trade Remedies (DGTR) undertakes when examining whether circumvention 
exists.  
Question 19:  Of the proceedings conducted by the DGTR, please indicate how many were examined 
for circumvention only and the number of proceedings  that were referred to India 's customs 
authority for further administrative action.  
Reply: During the period of review, DGTR conducted 5 anti-circumvention investigations and 
recommended imposition of duty on all of them. All the proceedings mentioned were examined only 
for circumvention.  
Page 65 (para. 3.85): The Secretariat Report references a number of circumvention remedies that 
were imposed under India 's new circumvention rules.  
Question 20:  Please identify the major challenges that India  has experienced in carrying out these 
proceedings and what India has done, will do, or is contemplating doing to address these challenges.  
Reply: India has faced following major issues:  
i. Distinguishing between Bona fide and circumventing users.  
ii. Retrospective application.  
It is our endeavour to address these challenges under the existing framework of rules.  
3.2 Measures Directly Affecting Exports  
3.2.1 Customs procedures and requirements  
Pages 70 -71 (para. 3.105 ): The Secretariat Report states that India designates established 
exporters with a specific status, e.g. one -star to five -star export houses.  The report also explains 
that the status and benefits depend on export performance, based on export value during th e current 
and previous three financial years.  
Question 21:  Please provide details regarding the exact types of benefits provided to the export 
houses and how these benefits vary depending on export performance.  
Reply: The benefits available to Status holde rs are listed in paragraph 3.24 of the FTP (Annexure  1). 
Question 22:  Please explain how these benefits are consistent with India 's SCM obligations under 
Article 3.1(a).  
Reply: The privileges or benefits to status holders are not financial contributions an d hence is not a 
subsidy in terms of the definition of subsidy as outlined in para. 1.1 (a) 1 of the ASCM.  WT/TPR/M/403/Add.1  
 
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  Question 23: Please explain when India plans to notify these subsidies under Article 25 of the SCM 
Agreement?  
Reply: Since these privileges are not a subsidy, there is no requirement to notify them under 
Article  25 of the SCM.  
3.2.2 Taxes, charges, and levies  
Page 71 (Tables 3.16 and 3.17 ): India applies a tax or cess on exports of key raw materials used 
in the production of alumin ium and steel. A ccording to the Secretariat Report, these measures may 
be used for a variety of purposes, including ensuring greater supply of materials for domestic higher 
value -added industries and financing the development of particular industries.  
Question 24: Please explain the specific policy objectives behind: (1) the 15% tax on exports of 
bauxite, other alumin ium ores, and ferrous scrap; and (2) the INR 1 per ton cess on exports of iron 
ore. 
Reply: (1) Export duty on certain minerals has been imposed to strike a ba lance between the exports 
and the need of adequate availability for the domestic industry user.  
(2) Export taxes on various minerals, as mentioned, have been maintained to ensure that the 
domestic end user industries have sufficient access to them. Excess  mining has adverse 
consequences on the environment and lead to substantial addition of costs to the economy and the 
people.  
3.2.5 Export support and promotion  
3.2.5.1 Export from India Scheme (EIS)  
Pages 73 -78 (paras.  3.115 -3.134 ): The Secretariat Report states that India provides various 
incentives that appear to be export contingent. The United States also notes that several of the 
identified programs may qualify as export subsidies in the context of CVD investigations.  
Question 2 5: For each of the below programs listed below, please explain how India is reforming 
the programs to ensure they are consistent with India 's SCM obligations under Article 3.1(a).  
Reply:  The schemes such as MEIS, EPCG, EoU, SEZ, EHTP, BTP, STP are subject  matter of a WTO 
dispute and final outcome of that dispute is awaited. The schemes such as Advance Authorisation, 
DBK, DFIA are covered under Footnote 1 read with Annex I and Footnote 61, of the SCM Agreement.  
Question 26: Please explain when India plans to notify these subsidies under Article 25 of the SCM 
Agreement:  
o Export from India Scheme (EIS)  
o Merchandise Exports from India Scheme (MEIS)  
o Advance Authorisation (AA) Scheme  
o Duty-Free Import Authorisation (DFIA) Scheme  
o Duty Drawback (DBK) Scheme (a duty remission scheme)  
o Export Promotion Capital Goods (EPCG) Scheme  
o Export Oriented Units (EOU) Scheme,  
o Export Processing Zones (EPZ)/Special Economic Zones (SEZs) Scheme  
o Electronics Hardware Technology Parks (EHTP) Scheme  
o Software Technology Parks (STP) S cheme  
o Bio-Technology Parks (BTP) Scheme  
Reply: These are not subsidies under Article 1 of the ASCM and hence, there is no obligation to 
notify these under Article 25 of the ASCM.  
Page 74 (para. 3.122 ): 
Question 27: Please explain  in more detail the Remission of Duties or Taxes on Export Products 
scheme, including what specific duties and taxes are eligible for refund. Also, please provide a 
webpage listing all the products (including HS codes) eligible under this measure.  WT/TPR/M/403/Add.1  
 
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  Reply: Details of the  RoDTE P scheme have  not been notified yet.   
3.2.6 Export finance, insurance, and guarantees  
Page 79 (paras.  3.142 and 3.143 ) 
Question 28: Please describe Exim Bank 's export financing programs for agricultural products, and 
the approved loan amounts extended for the agricultural products between 2014 -15 and 2018 -19. 
Reply: Exim Bank provides export credits which includes packing and buyer credit to support 
agricultural and processed foods exports. Export Financing provided in the last few years are: N IL 
(2015 -16); INR 290 million (2016 -17); INR 526 million (2017 -18); INR 290 million (2018 -19). 
Page 80 (para. 3.144 ): 
Question 29: Please explain if the Export Credit Guarantee Corporation of India Ltd. (ECGC) export 
credit insurance and export  credit guarantee programs are in conformity with the risk cover category 
and with the terms and conditions set out in paragraphs 13 and 15(a) of the Nairobi Decision on 
Export Competition. If not, why not?  
Reply: With regard to paragraphs 13 and 15 (a) of the Nairobi Decision on Export Competition , 
ECGC does not  provide any subsidy in its  premium rates for cover to the agricultural  sector. All credit 
insurance covers are extended  by ECGC on commercial lines.  
3.3 Measures Affecting Production and Trade  
3.3.1 Incentives  
Page 82 (para. 3.156 ): In 2019, the Government of India revised Paragraph 32 of the Drug (Prices 
Control) Order (DPCO) to ensure that in novative international and domestic biopharmaceuticals that 
receive a patent under the Indian Patent Act would be treated equally and exempted for 5 years 
from government price control schemes. This has played a major role in India 's Pharmaceutical 
Strateg y mentioned by the Trade Policy Review document.  
Question 30: Is the Government of India planning to reverse this positive step in the coming years?  
Reply: There is no such proposal.  
3.3.2 Standards and other technical requirements  
Page 84 (para. 3.161 ): India notes that the relevant ministry is responsible for deciding which 
standards should become technical regulations.  
Question 31: Do ministries have a common set of criteria that must be used to determine whether 
the standard becomes a technic al regulation?  
Reply: The objectives of the technical regulations, testing and certification infrastructure etc. and 
concerns, suggestions of the stakeholders are considered while using standards as technical 
regulations.  
Page 84 (para. 3.161 ): The Secretariat 's report notes that as of March 2018 (latest data available), 
there were 19,294 Indian standards, 27.3% of which were harmonized with international standards.  
Question 32: Can India please explain why only 27.3% of its standards were harmonized with 
international standards? Please describe India 's efforts to ensure that more of its standards are 
harmonized with international standards.  
Reply: Bureau of Indian Standards (BIS), India's national standard body, has formally accepted the 
'Code of Good Practice for the preparation, adoption and application of standards '. BIS technical 
committees try to align the Indian Standards with the International Standards of International 
Standardization Organizations ISO and IEC, where available and to  the extent possible keeping in WT/TPR/M/403/Add.1  
 
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  consideration the specific climatic/environmental conditions and technological development of the 
country. In order to facilitate global trade and improve market competitiveness, BIS is continuously 
striving to increase the extent of harmonization of Indian Standards with ISO/IEC standards.  
Page 85 (para. 3.165 ): According to the Secretariat Report,  conformity assessment with Indian 
standards is regulated by Bureau of Indian Standards (BIS) (Conformity Assessment) Regulations , 
2018, which provide for different types of conformity assessment schemes, including self -
certification. Self -certification requires the manufacturer to register with the BIS, have samples 
tested by BIS -recognized laboratories, and complete a self -declara tion of conformity.  
Question 33: Please explain why India, as a member of the IECEE CB Scheme,  does not accept 
test results from internationally  accredited labs?  
Reply: As on date, BIS is accepting test reports of laboratories recognized by BIS within India. 
However, there is a provision of acceptance of test reports of laboratories of other countries only in 
case there is a mutual agreement with such countries. For components of Electronic and IT 
equipment, the test reports of IECEE CB and certi fication of foreign certification bodies are accepted 
by BIS and BIS recognized laboratories.  
Page 85 (para. 3.166 ): According to the Secretariat Report, "product certification is voluntary, for 
both domestic and imported products, except for products that  must comply with Indian standards, 
even if these are not considered technical regulations, for public health and safety and for the 
protection of the environment. The relevant sectoral entities, in consultation with stakeholders, 
decide which products req uire mandatory certification. " Because mandatory certification is required 
for certain types of products:  
Question 34: Please explain the decision -making process for which products require mandatory 
certification.  
Reply: Technical regulations are being for mulated, inter alia , on the following ground(s):  
1. Protection of human, animal or plant health  
2. Safety of the environment  
3. Prevention of unfair trade practices  
4. National security.  
Question 35: What data/information informs the process?  
Reply: Among others, risk associated with the product is a major criterion for formulation of a 
technical regulation.  
Page 85 (para. 3.166 ): The Secretariat Report notes that the number of products that fall under 
Scheme I (mandatory certification), which requires factory and market surveillance, has jumped 
from 92 in 2015 to 264 products in 2020.  
Question 36: Please explain why the number of products that require mandatory certification 
jumped so dramatically in the last five years.  
Reply:  There has been a  continuous increase in SPS & TBT notifications globally by various countries. 
In view of the regulatory gap for many product categories, India has been working on strengthening 
the regulatory ecosystem to ensure that consumer and environmental interests a re protected and 
they have access to safe products.  
Question 37: What market developments has India identified that requires such an increase?  
Reply: There has been a continuous increase in SPS & TBT notifications globally by various countries. 
In view of the regulatory gap for many product categories, India has been working on strengthening 
the regulatory ecosystem to ensure that consumer and environmental interests are protected and 
they have access to safe products.  
Page 86 (para. 3.169 ): According to the Secretariat Report, "the Bureau of Indian Standards (BIS) 
has eight laboratories to perform conformity assessment tests. It also recognizes other laboratories WT/TPR/M/403/Add.1  
 
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  (OSLs) (some 243), which comply with the BIS Laboratory Recognition Scheme, 20 18; no overseas 
OSLs have been recognized. OSL services are used when testing is not viable for the BIS. The 
accreditation of laboratories is carried out by the National Accreditation Board for Testing and 
Calibration Laboratories (NABL) and the National A ccreditation Board for Certification Bodies 
(NABCB). "  
Question 38: Please explain why overseas laboratories are not recognized by BIS and/or accredited 
by NABL and NABCB.  
Reply: Bureau of Indian Standards under its Laboratory Recognition Scheme (BIS LRS) grants 
recognition to laboratories for testing of products as per the relevant Indian Standards for the 
purpose of conformity assessment schemes of BIS. There is a provision given in clause 12 of BIS 
LRS for recognition of overseas laboratories. BIS LRS is  available on BIS website  www.bis.gov.in 
under the laboratories tab. As on date, there is no pending application from overseas laboratories 
seeking recognition from BIS in compliance to the provisions of LRS. NABL accreditation program 
was initially starte d to cater to mainly Indian laboratories. It has now been extended to help SAARC 
region (as there were no other accreditation body existing in their country at that time). Now, it has 
been further extended for all overseas labs. Presently, there are 43 acc redited overseas laboratories 
in various countries outside India.  
[Nepal (11), Bangladesh (15), Bhutan (02), Sri Lanka (02), UAE (01), Saudi Arabia (03), Oman 
(02), Bahrain (01), Jordan (01), Sudan (01), Lebanon (01), Myanmar (01), Iran (01), Thailand 
(01)].  
Question 39: If no impediment(s) exist, please explain the steps that internationally  recognized 
overseas laboratories  must take to be accredited and recognized.  
Reply: For BIS: Compliance to Clause 12 of BIS Laboratory Recognition Scheme ( LRS) will enable 
the overseas laboratories to initiate the process of recognition under BIS LRS 2020.  
For NABL: Laboratory is required to submit application to NABL along with required fee and 
documents in prescribed format. The information is available on website www.nabl -india.org . 
Question 40: Does India have an y plans or is it undertaking any efforts to recognize overseas OSLs 
in the near future?  
Reply: Bureau of Indian Standards under its laboratory recognition scheme (BIS LRS) grants 
recognition to laboratories for testing of products as per the Indian Standar ds for the purpose of 
conformity assessment schemes of BIS. There is a provision in clause 12 of BIS LRS for recognition 
of overseas laboratories. BIS LRS is available on BIS website www.bis.gov.in . As on date, there i s 
no pending application from overseas laboratories seeking recognition from BIS in compliance to the 
provisions of LRS.  
3.3.3 Sanitary and phytosanitary requirements  
Page 90 (paras.  3.188 and 3.189 ): The Secretariat Report notes that the Food Safety Standards 
Authority of India (FSSAI) provides standards for contaminants and pesticide residues, and it 
establishes panels of independent scientific experts to set these standards. The United States is 
concerned that the scientific basis for the standards is not transparent, including when India 's 
proposed changes to maximum residue levels (MRLs) are moving away from standards that were 
previously harmonized with the Codex Alimentarius.  
Question 41: Please  explain the process and scientific justification used for establishing MRLs and 
other contaminant levels.  
Reply: The applications for pesticides which are approved by the Registration Committee of the 
Central Insecticide Board and Registration Committee ( CIB & RC) are submitted before the Scientific 
Panel for recommending the Maximum Residues Limits (MRLs). FSSAI notifies the Maximum Residue 
Limits (MRLs) of pesticides based on data received from CIB&RC, Ministry of Agriculture and Farmers 
Welfare, after r isk assessment by the Scientific Panel for Pesticides Residues. The Scientific Panel 
recommends MRLs based on well -established internationally accepted criteria and procedure of risk WT/TPR/M/403/Add.1  
 
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  assessment, from the data generated and provided by the applicants in acc ordance with the 
prescribed Guidelines. During the process of MRL computation, the health concern in respect of all 
age groups in the country are taken into consideration especially the worst -case situations are 
considered. The MRL recommendations of the S cientific Panel are approved by the Scientific 
Committee and Food Authority  and the draft notification  are uploaded on the FSSAI website for 
public comments  and WTO website for comments from member countries within the stipulated 
60 days time -period. The c omments received are duly considered by the Scientific Panel and the 
notification is accordingly finalized after following due procedure. Thus, the procedure is transparent 
and based on scientific principles.  
Question 42: Please provide a website where WTO  Members can access general public and 
stakeholders ' comments to FSSAI 's scientific committees.  
Reply: The access to information is as per India 's commitments under WTO TBT Agreement . 
Page 90 (para. 3.188 ): The Secretariat Report  states, "the standards developed by the FSSAI are 
based on scientific evidence and on international standards. " On 27 January 2020, India announced 
a new directive that animal feed complies BIS standards that limit the feed products that can be 
used in India to a list of 49 ingredients. This list omits several commonly -used feed ingredients 
including, but not limited to, distillers dried grains, alfalfa, timothy hay, and beet pellets.  
Question 43: On what scientific evidence and international standards did FSSAI base th is directive?  
Reply: The relevant standard IS 2052:2009 (Compounded feeds for cattle - Specification) was 
published in 2009 and subsequent amendments to it have been issued in 2010 and 2016. The 
standard is reviewed periodically and was last reaffirmed in 2019.  
Page 90 (para. 3.192 ): The Secretariat Report  states that the "import of GMOs, and GMO products 
are regulated by the Rules of Manufacture, Use, Import, Export and Storage of Hazardous 
Micro -Organisms, Genetically Engineered Organisms or Cells, 1989, under the Environment 
(Protection) Act, 1986. " Table 3.29 indicates that the six competent authorities created to implement 
these rules do not include FSSAI.  
Question 44: Please explain FSSAI 's legal authority to regulate the import of these products . 
Reply: The Food Safety and Standards Act, 2006 empowers the Central Government to formulate 
regulations concerning genetically modified articles of food.  
Question 45: If FSSAI has a legal authority to regulate imports of GMOs and GMO products, what 
is the scientific basis for regulating these products, particularly in a manner that is different from 
regulation of non -GMO products?  
Reply: The Food Safety and Standards Act, 2006 empowers the Central Government to formulate 
regulations concerning genetically  modified articles of food. Any rules or regulations made in this 
regard would be notified in the Gazette of India. Food Safety and Standards Authority of India lays 
down science -based standards for articles of food, including GM foods, to regulate their m anufacture, 
storage, distribution, sale and import, to ensure availability of safe and wholesome food for human 
consumption and for matters connected therewith or incidental thereto.  
3.3.5 State trading, state -owned enterprises, and privatization  
3.3.4.2.  Price control  
Page 97 (para. 3.218 ): The Secretariat Report notes that the price of natural gas extracted by 
India's state -owned oil companies from existing fields is subject to an administered pricing 
mechanism (APM). It further notes that industries such as steel are considered "priority sectors " 
regarding the use of gas subject to the APM.  
Question 46: What proportion of India 's total natural gas extraction is subject to the APM?  WT/TPR/M/403/Add.1  
 
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  Reply: Presently the entire production of natural gas pertaining to Oil India Limited (OIL) is APM 
Gas. For Oil and Natural Gas Corporation Limited (ONGC) on sale basis it is about 9 5% for the year 
2019-20. 
Question 47: What are the main features of the APM? For example, what is the process through 
which the relevant price is established, and is it a single unified price or does it vary across 
enterprises or regions?  
Reply: As per the  'The New Domestic Natural Gas Pricing Guidelines, 2014 ' the Domestic gas price 
is notified by Petroleum Planning & Analysis Cell (PPAC) bi -annually based upon weighted average 
hub prices of Henry Hub, Alberta, NBP and Russia. The price so determined is fu rther reduced by 
$0.5/MMBTU towards transportation & treatment cost. This price is established on gross calorific 
value basis. This price is applicable uniformly across India for gas allocated by Ministry of Petroleum 
and Natural Gas. Current natural gas p rice effective from 01.10.2020 is USD 1.79/mmbtu.  
Question 48: What are the practical implications of the "priority sector " designation? Are 
state-owned oil companies obligated to provide certain quantities of natural gas to these enterprises 
at prices det ermined through the APM?  
Reply: Natural gas is sold to various customers at prices determined by the oil companies on year 
to year basis based on commercial considerations.  
3.3.5 State trading, state -owned enterprises, and privatization  
3.3.5.1 State trading  
Page 97 (para. 3.221 ): The Secretariat Report indicates that India last made its required 
notification to the Working Party on State Trading Enterprises in 2019, which covered information 
through 2018.  
Question 49: Please advise as to when India wi ll make its next required notification to the Working 
Party, which was due on June 30, 2020.  
Reply: India will be making its next STE notification shortly. India 's STE notifications are far more 
up to date than those of most other major Members. Our respon ses are complete up to 2017 -18. 
Page s 98 (para. 3.224 ) and 117 (para. 4.13): According to the Secretariat Report, India 
removed onions from the list of products where exports are restricted to STEs (since 2014/15), 
stating that this product was liberalized and no STEs were granted special privileges to export onions. 
However, on 29 September 2019, the Directorate Gene ral of Foreign Trade (DGFT) issued an export 
ban for onions, and on 30 November 2019, permitted the export of up to 9,000 MT through STEs. 
In addition, on September 13, 2020, the Government of India amended its onion export policy from 
free to prohibited, thereby banning fresh onion exports with immediate effect.  
Question 50: Please explain if the combination of issuing an export ban and permitting exports only 
through STEs represents a reversal of the liberalized export policy measure and a return to grant ing 
STEs exclusive or special rights for the export of onions.  
Reply: The ban on export of Onions was imposed on 29.09.2019 and during the period permission 
to export only specific type of onions - "Bangalore Rose Onions and Krishnapuram Onions" was given 
for a limited quantity to all the eligible exporters based on a defined criteria and procedure outlined 
by DGFT. Any private exporter could export these specific types of onions and the export was not 
limited to only STEs. The export ban on Onions is impos ed primarily to ensure adequate supply of 
onions in the domestic market and the export of Bangalore Rose Onion and Krishnapuram Onions 
was allowed since export of these types of onions did not adversely affect the domestic market in 
India. 
Question 51: Please explain how the aforementioned measures, and not allowing private traders 
the opportunity to compete, are consistent with general principles of non -discriminatory treatment 
set out in the Article XVII of the GATT.  
Reply: Please refer reply for questio n No. 50 above.  WT/TPR/M/403/Add.1  
 
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  Question 52: Please list the STEs granted permits to export onions since the export ban was 
enacted in September 2019.  
Reply: Please refer reply for question No. 50 above.  
3.3.5.2 SOEs and privatization  
Page 99 (para.  3.225 ): The Secretariat Report indicates that the state -owned enterprise share of 
GDP declined over the review period.  
Question 53: What policy changes have led to the decline?  
Reply: Market dynamics decide the inter -se performance and respective share in the ec onomy. 
Further,  as per the Annual Public Enterprises Survey by the Department of Public Enterprises (DPE), 
the Gross Value Addition (GVA) by Central Public Sector Enterprises (CPSEs) in the GDP has shown 
a consistent increase during the last five years. Th e observation mentioned to in the TPR report is 
only relative in position and may be attributed to the faster growth registered by other sectors of 
the GDP.  
Question 54: Does India attribute the decline to decreasing competitiveness of the public sector or 
increased privatization?  
Reply: Please refer to Q. No. 53 above.  
3.3.6 Government procurement  
Page 104 (para. 3.243 ): The Secretariat Report provides information on the Public Procurement 
(Preference to Make in India) Order, 2017, revised in 2018  and 2019.  
Question 55: Please provide a complete update of the revisions made to the Public Procurement 
Order between May and September 2020.  
Reply: Public Procurement (Preference to Make in India), Order, (PPP -MII Order, 2017) was issued 
on 16.09.2020. I t may be noted that India is not a party to the GPA.  
Question 56: Specifically, please provide information on how local content calculations will be 
implemented across ministries.  
Reply: The basis for calculation of Local Content is defined in clause 2 of Public Procurement 
(Preference to Make in India), Order 2017 dated 16.09.2020.  
Question 57: How will India maintain transparency about the varying local content requirements?  
Reply: As per provisions of PPP -MII Order, 2017, the identified nodal  Ministries/ Departments are 
required to notify the minimum local content for the items where there is sufficient local capacity 
and competition. The nodal ministries/ departments may annually review the local content 
requirement for Class -I Local Supplier  (50%) and Class - II Local Supplier (20% - 50%), and publish 
on their websites.  
Question 58: Where will the local content requirements be published?  
Reply: The notification of minimum local content for Class -I Local Supplier (50%) and Class - II Local 
Suppl ier (20% -50%) is published by designated nodal ministries/ departments under PPP -MII Order, 
2017, on their websites as well as a link is provided on DPIIT 's website.  WT/TPR/M/403/Add.1  
 
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  3.3.7 Intellectual property rights  
3.3.7.2 Changes to the IPR institutional and legal fram eworks  
Page 107 (para. 3.253 ): The Secretariat Report mentions the lack of specific laws protecting trade 
secrets in India. Nearly every advanced economy in the world explicitly provides for trade secret 
protection in its domestic law.  
Question 59: How do es India plan to address this?  
Reply: India trade secrets under the common civil and criminal laws. In addition to remedies such 
as injunctions or damages available under the Information Technology Act, India allows for criminal 
remedies under the Indian P enal Code 1860, such as for criminal misappropriation, breach of trust 
and theft of property. Under common laws, section 27 of the Indian Contracts Act, 1872, provides 
several civil remedies available for the aggrieved person(s) including: an injunction pr eventing a 
licensee, employee, vendor or other party from disclosing a trade secret; the return of all confidential 
and proprietary information; and compensation for any losses suffered due to the disclosure of trade 
secrets. To increase awareness on this subject among stakeholders, a tool kit has been developed 
and put in public domain by Cell for IPR Promotion and Management (CIPAM) in collaboration with 
the Global Trade Secret Council.  
Page 107 (para. 3.254 ): The Secretariat's report states that "The Copyright Act, 1957, was 
amended in 2012 to facilitate access to the works by people with visual disabilities."  
Question 60: Regarding the compulsory licen ce for the disabled in Section 31B, please explain how 
long a typical licen ce period lasts and what factors the Copyright Board considers in determining the 
licence period.  
Reply: As per Section 31 of the Copyright Act, 1957 read with Rule 18 sub -rule (4) of the Copyright 
Rules, 2013, the term of licen ce, and  determination of its tenure, is decided by the Intellectual 
Property Appellate Board, on a case to case basis, while taking into consideration interest of the 
public at large.  
Question 61: Please also explain what measures, if any, ensure that copies made  under a 
compulsory licen ce for disabled persons do not become generally available to non -disabled persons.  
Reply: As per Section 52 (1) (zb) (ii) second provision of the Copyright Act, 1957, the organization 
working for the benefit of persons with disabil ity shall ensure that the copies of works in accessible 
formats are used only by the persons with disabilities and is responsible to take reasonable steps to 
prevent its entry into ordinary channels of business.  
Page 107 (para. 3.254 ): Section 65A of the Copyright Act (as amended in 2012) relates to the 
anti-circumvention requirements found in certain of the listed treaties (e.g., the WIPO Copyright 
Treaty (WCT) and the WIPO Performances and Phonograms Treaty (WPPT)) by providing for fin es 
and criminal penalties for persons who, with the intention of infringing an exclusive right, circumvent 
an effective technological measure controlling access to a copyrighted work.  
Question 62: What is the definition of "effective technological measure " under Indian law?  
Reply: As per Section 65 A of the Copyright Act, 1957 any technological measure, which is applied 
for the purpose of protecting any of the rights granted under the Act is an "effective technological 
measure. " However, the same has not been explicitly defined in the Copyright Act 1957. The 227th 
Parliamentary Standing Committee, agreed to incorporate the aforesaid provision, in alignment with 
Article 11, of the WCT, with a distinction that limited legislative guidelines were being incorp orated, 
given the complexities faced even by Developed countries, in defining such terms and allow the 
judiciary to evolve the law, based on practical situations, keeping in mind the interest of the public 
at large.  
Question 63: Are any civil remedies avai lable for violation of the statute?  
Reply: As per the Copyright Act, 1957, there aren 't any civil remedies for the violation of 
circumvention of technological protection measures under Section 65A. Section 55, of the Copyright WT/TPR/M/403/Add.1  
 
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  Act provides for a wide array of civil remedies, such as injunctions (interlocutory/ permanent), 
damages and accoun ts of profit against any infringement of copyright.  
Question 64: Is there any penalty for manufacturing, importing, or trafficking in circumvention 
devices or tools?  
Reply: While Section 65 -A of the Copyright Act, read with Rule 80 of the Copyright Rules, 2013, 
provides for criminal penalty on circumvention of effective technological measures, there is no 
expressed provision regarding manufacturing, importing, or trafficking in circumvention devices or 
tools under the Copyright Act, 1957.  
Page 107 (para. 3.254): The Secretariat Report indicates that India has initiated procedures to 
accede to the UPOV Convention.  
Question 65: Is the Government of India actively considering accession to the UPOV Convention?  
Reply: No. 
Question 66: If so, could you explain whe n you anticipate India will be ready to accede?  
Reply: Currently, India is not anticipating to accede to UPOV 1991.  
Page 107 (para. 3.254 ): The Secretariat Report indicates that India has acceded to the WPPT and 
WCT.  
Question 67: Please confirm that the right to access a work/recording at a time and place chosen 
by the consumer (i.e., the interactive right of communication/transmission to the  public), an 
exclusive right under the WPPT and WCT, could not be covered by the statutory licen ce in 
Article  31D?  
Reply: The right to access a work/ recording at a time and place chosen by the consumer is covered 
under the definition of "communication to  the public " under Section 2(ff) of the Copyright Act, 1957. 
Statutory licen ce under Section 31D covers communication to the public and by extension covers 
right to access a work/recording at a time and place chosen by the consumer.  
Main features of the IP R regime over the review period  
Page 108 (para. 3.256 ): The Secretariat Report indicates that there are exceptions and limitations 
to the protection of IP rights in India, including in certain circumstances when a right is not exploited. 
In the context of copyright, the copyright owner often has legitimate reasons to withhold 
republication or publi c performance of a work, and no harm results from such unavailability. For 
example, the Disney movie studio periodically makes an older movie "from the vault " available 
during specific time windows, while declining to publish or distribute the work outside  of that window. 
The resulting unavailability of the work outside of that window is not targeted at the Indian market.  
Question 68: Would the law nevertheless allow a petitioner to disrupt such a monetization approach 
without demonstrating any harm to the public resulting from the work 's unavailability outside of the 
predetermined window?  
Reply: Section 31 of the Copyright Act enables a petitioner to prefer an application before the 
Intellectual Property Appellate Board, in case an already published/ pe rformed work is withheld from 
public, as the owner of the work has refused its re -publication or communication. To determine the 
reasonability of such refusal is vested within the Appellate Board. It is only after giving the owner of 
the copyright work, a reasonable opportunity of being heard, and holding necessary inquiry deciding 
whether, such refusal is reasonable or not, a decision can be made.  
Question 69: How does India 's compulsory licen ce system apply when the owner makes a specific 
decision not to exploit a work?  
Reply: Any person can prefer an application before the Intellectual Property Appellate Board (IPAB) 
under Section 31 of the Copyright Act, for a licen ce to publish or communicate to the public, any WT/TPR/M/403/Add.1  
 
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  work which is withheld from public. The  IPAB after conducting necessary inquiry shall decide the 
grant of such licen ce. 
Page 108 (para. 3.258 ) 
Question 70: What other measures is India contemplating to streamline its patent and trademark 
examination system?  
Reply: India is continuously taking a number of steps to streamline the process of examination of 
Patents and Trademark applications. These can be broadl y classified into:  
(a) Amendment in Rules: Patents Rules and Trade Mark rules are being regularly amended to 
achieve the objective of removing procedural inconsistencies and unnecessary steps in 
processing of applications to speed up grant/registration an d final disposal. By amending the 
Rules, the procedures are made more compact, time -bound, user -friendly and compatible for 
e-transactions and filing and processing of patent applications are made affordable to Start -
ups and Small entities.  
(b) Moderni zation of IP offices: During the last 5 years, there has been a steady switchover from 
manual to computerized system of processing of IP applications, improved management of 
IP-related information, creation of stronger public interface and feedback mechanism and 
revamping of the functioning of IP Offices.  
(c) Manpower Augmentation: In order to remove the backlog and enable speedy 
examination/disposal of IP applications, manpower in IP Offices is being augmented.  
(d) The Government of India has acceded to the Nice, Vienna and Locarno Agreements on 
7 June 2019, which will help the Indian IP Office to harmonize the classification systems for 
examination of trademark and design applications, in line with the classification systems 
followed globally.  
In addition to  the above measures, facility for expedited examination of patent applications is being 
provided to 10 categories of applicants i.e. Start -ups,  where the applicant has selected Indian Patent 
office as ISA/IPEA for his PCT application, Small entities, Fema le applicants, Government 
Departments, institutions established by a Central, Provincial or State Act which is owned  or 
controlled by the Government, Government company, an institution wholly or substantially financed 
by the Government, and applicants und er Patent Prosecution Highways. Under the Expedited 
Examination System, most applications regarding grant of patents have been decided within about 
one year of filing Request for Expedited Examination as compared to the period of few years required 
in case  of normal examination route.  
Question 71: Is India open to amendments to the pre -grant opposition process to place a time limit 
within which grants can be challenged? (So as to prevent  unnecessarily delays in the approval of 
certain patents).  
Reply: The Indian Patents Act is consistent with the TRIPS agreement and at the same time is fully 
utilizing the flexibilities provided therein to Members. Various mechanisms are present in the patent 
systems of Members to improve the quality of patents so  as to ensure that 'enforceable patents ' are 
granted. Pre -grant opposition is one such mechanism which contributes towards improving the 
quality of a patent by providing for a pre -grant opposition window to the public. Under the Indian 
patent law, a person  interested can also file a post -grant opposition to challenge a granted patent. 
These issues have been discussed in detail in the Standing Committee on the Law of Patents at the 
World Intellectual Property Organization. The provisions related to pre -grant  and post -grant 
opposition in the Patents Act therefore serve an important purpose as they intricately balance the 
interests of the patent applicant on one hand and the public on the other. Moreover , systemic 
improvements by their very nature are a continu ous process. India has  conducted improvements in 
the patent grant processes in the past and will keep on working in this direction in the future as well, 
wherever and whenever deemed appropriate, in order to support innovation and creativity.  WT/TPR/M/403/Add.1  
 
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  3.3.7.5 IPR e nforcement  
Page 111 (para. 3.267 ): The Secretariat Report  states that "Various measures to enforce IPRs 
were taken over the review period" and that "[s]everal measures to address counterfeiting and 
piracy are laid down in the draft National E -Commerce Policy, which is still under consultation."  
Question 72: Please explain when that consultation is likely to be complete and a when a revised 
draft will be released for public comment.  
Reply: The draft e -commerce policy document has been placed in the public domain for comments/ 
suggestions. Detailed consultations are ongoing. Based on consultations, the next steps will be 
taken.  
Question 73: Are any specific measures likely to be taken up in a revised National E -Commerce 
Policy? If so, what are those measures?  
Reply: The draft policy is under consulta tion stage. However, with respect to tackling of 
counterfeiting, the Consumer Protection (e -commerce) Rules 2020, provide for liabilities on 
e-commerce entities and sellers, for sale of spurious goods/services. The e -commerce policy is still 
in drafting stage and is yet to be finalized.  
Page 111 (para. 3.268 ): The Secretariat Report  states that "Under Section 79, online 
intermediaries are not responsible for user -generated content, unless they have 'actual knowledge ' 
that IPR is infringed."  
Ques tion 74: Please explain how "actual knowledge" is established in India's legal system. Is it a 
subjective standard?  
Reply: The Supreme Court of India in Shreya Singhal v Union of India, extended the scope of actual 
knowledge and held that a Court order in cases relatable to Article 19 of the Constitution of India, 
shall mean actual knowledge. In case of Section 51(a)(ii) of the Copyright Act, the only exception is 
that the intermediary may not have been aware or had no reasonable grounds to believe that the  
content was infringing.  
Question 75: Does it require a notice from a copyright owner, or can an intermediary gain actual 
knowledge independent of any action on the owner's part?  
Reply: Infringement with regard to Section 51(a)(ii) requires an action on t he part of the owner of 
the Copyright. It has been held by the High Court of Delhi in the matter of Kent RO Systems Ltd. 
vs. Amit Kotak & eBay India Pvt. Ltd, that the intermediary is not required to make a 
self-determination of infringing products sold on  its website but is required to take down the same 
only after receipt of complaint.  
Question 76: Can an intermediary ever be prosecuted or found liable based on constructive 
knowledge – that is, knowledge that one using reasonable care or diligence should have known – of 
the infringement, even if there was no conclusive evidence that the intermediary was actually aware 
of the infringement?  
Reply: It has been held by the High Court of Delhi in the matter of Kent RO Systems Ltd. vs. Amit 
Kotak & eBay India Pv t. Ltd, the intermediary is not required to make a self -determination of 
infringing products sold on its website but is required to takedown the same only after receipt of 
complaint.  
Page 111 (para. 3.268 ): The Secretariat Report also states that if notified by the copyright 
owner of an infringement, online intermediaries must act within 36 hours to remove the infringing 
works."  
Question 77: Please explain whether there are any exceptions to the 36 -hour dead line to act.  
Reply: In case of infringement, Section 52(1) (b) and (c) of the Copyright Act 1957, prescribes 
certain acts, such as transient or incidental storage of copyright content, or providing electronic links WT/TPR/M/403/Add.1  
 
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  or access or integration by any person, if such person is not expressly prohibited by the copyright 
owner, to not be considered as infringement. If, the intermediary receives a complaint from the 
copyright owner, conveying that such transient or incidental storage is an infringement, then such 
person shall take measures to refrain from providing such access for a period of 21 days, within 
which the person claiming the content as infringing has to get a refraining order from the competent 
court. If no such order is received, before the expiry of 2 1 days, the intermediary may continue to 
provide the facility of such access.  
Question 78: Can the owner of an unpublished film that is leaked online apply for a takedown faster 
than 36 hours? If so, how?  
Reply: There aren 't any expressed provisions under the Copyright Act regarding applying for a 
take-down notice faster than 36 hours. However, the same is within the discretion of the Competent 
Courts after conducting necessary inquiries.  
Page 111 (para. 3.268 ): The Secretariat Report states that "draft amendments to the 2011 Rules, 
which propose additional requirements (e.g. traceability and proactive filtering of content), are under 
consideration."  
Question 79: What is the status of the 2018 amendments to the 2 011 Rules? Do you anticipate 
enactment soon?  
Reply: The proposed Intermediary rules amendments are still in the discussion stages because of 
frequently changing eco -system particularly for the social media. It however cannot be said as to 
when they are lik ely to be released.  
Question 80: Please explain how traceability requirements are tailored, if at all, to protect users' 
privacy.  
Reply: The traceability requirements are based on the hash functions and do not impinge upon the 
privacy, as there is no inte nt to read the messages. It will be required only in exceptional cases, 
that too where the messages are in the possession (and hence already decrypted) of the Law 
enforcement agencies and hence their hash value can be calculated. The requirement is not abo ut 
profiling or tracing the people in the chain, but only about the originator. Here also, as the 
Intermediary rules are not yet enacted, this requirement is at consideration stage and has not been 
finalised as yet.  
Question 81: Please also explain how pro posed filtering requirements will account for fair dealing 
under section 52.  
Reply: Though the context is not very clear, from the question, it is assumed that the US is referring 
to the content filtering in the proposed Intermediary Rules.  
Subject to above understanding:  
The proposed Intermediary rules amendments have a major focus on expeditious and effective 
removal of unlawful contents; identification of those users uploading sensitive contents likely to 
impact sovereignty and integrity of India or create a public disorder. The proposed rules also promote 
usage of automated tools for identification of child sexual abuse material. While online piracy is 
considered unlawful, the existing 2011 rules already cover them adequately and no new additional 
provision is being proposed in the new proposed Intermediary rules. The rules are however, under 
process and have not been released as yet  
Page 111 (para. 3.269 ):  
Question 82: Do you anticipate passage of the 2019 bill containing penal provisions for camcording?  
Reply: Time-frame for the passage of 2019 bill cannot be anticipated.  
Page 112 (para. 3.270 ): The Secretariat Report  identifies state -level measures taken to promote 
IPR enforcement and describes the closure of 250 rogue websites.  WT/TPR/M/403/Add.1  
 
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  Question 83: Please explain under what circumstances the state may close a website for copyright 
violations.  
Reply: The Delhi High Court had granted an injunction (dynamic) for blocking the w ebsites of 
defendants that provide access to infringing/pirated content. It also directed that the 
mirror/alphanumeric websites that provide new means of gaining access to the same infringing 
content be impleaded under Order I, Rule 10 of the Civil Procedu re Code. Further, the Joint Registrar 
was directed to issue directions to disable access to these hydra headed websites on being satisfied 
that they provide a new platform to access the primary infringing website. The websites for unlawful 
content can be b locked through an order of competent court also.  
Question 84: More generally, has enforcement of India's copyright laws against repeated violators 
had a deterrent effect?  Do you believe current penalties are adequate?  
Reply: The Copyright Act provides for the provision of punishment for infringement, with an 
enhanced penalty on 2nd and subsequent convictions. Penalties for repeated violators could go up 
to imprisonment for a term which shall not be less than one year but which may extend to 
three years and with fine which shall not be less than INR 10 million but which may extend to 
INR 20 million.  
Page 113 (para. 3.274 ): The Secretariat Report mentions India 's status as one the region 's most 
high-profile sources of counterfeit goods.  
Question 85: How does India plan to address gaps in its civil and criminal measures to address this 
challenge?  
Reply: The assumption that India is one of the region 's most high -profile sources of counterfeit 
goods appears to be mis -founded. As per the Secretariat Report itself, India accounts for only a 
miniscule fraction of the global exports in counterfeit and pirated goods, while other economies in 
the region have a much larger share. There are strong legal provisions in place to keep a check on 
counterfeit products and those who are engaged in the business of pirated goods.  
The Trademarks Act of 1999 and the Copyright Act of 1957 empower authorities to act to prev ent 
infringement, including counterfeit goods.  
The Drugs and Cosmetics Act makes the sale of "misbranded " and "spurious " drugs and cosmetics 
a criminal offense. In -fact, in view of dramatic growth in counterfeit drugs, the government has also 
introduced a  "whistleblower " program with rewards for those providing information on counterfeit 
products.  
The   Prevention of Food Adulteration Act regulates food safety and provides harsh penalties for 
"misbranded " food products -including life imprisonment for cases  of counterfeit products resulting 
in death.  
The Patents Act of 2005 protects the rights of owners of patented products, such as technology and 
pharmaceutical products. Courts may also grant an injunction under Section 135 of the Trade Marks 
Act, 1999 by which a person is required to perform or is restrained from performing a particular act 
like stopping the sale of counterfeit product or destroying them.  
The Geographical Indication of Goods (Registration & Protection) Act, 1999 provides provision 
related to offences and penalties related to GI counterfeits. The Act penalizes falsifying and falsely 
applying GIs, selling goods to which false GI is applied, false representation that a GI is registered, 
improper description of the place of business as connecte d with the GI Registry, falsification of 
entries in the register.  
The India Penal Code, 1860 also contains provisions to deal with counterfeiting and piracy. The 
Consumer Protection Act, 2019 can also be invoked by the consumer against the counterfeiters by 
filing complaints in the appropriate consumer court.  WT/TPR/M/403/Add.1  
 
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  The Bureau of Indian Standards Act, 2016 also contains penalties for those who use the Standards 
(ISI) Mark without obtaining the requisite licen ce. The bureau investigates and detects the case of 
misuse of the ISI Mark and prosecutes the offenders wherever required.  
Besides legal provisions, adequate measures are being taken to strengthen enforcement agencies 
through regular training and sensitization programs which are taken up by Cell for IPR Promo tion 
and Management (CIPAM) with Police, Customs and Judiciary.  
Question 86: Also, what plans does India have to prevent the illegal importation of products 
smuggled from neighbouring countries that are patent -protected in India?  
Reply: The Indian Patents Act, 1970 under Section 48 excludes any party other than the patent 
holder or an authorized person from the act of making, using, offering for sale, selling or importing 
for those purposes that product in India. Any person acting in cont ravention of the said provision 
can be subjected to civil and criminal  penalties mentioned under the said Act.  
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture  
4.1.1 Measures affecting imports  
Page 116 (para. 4.6): According to the Secretariat Report, India's average MFN applied tariff for 
agriculture rose from 34.8 % in 2019/20 to 36.5 % in 2020/21.  
Question 87: Please list all tariff lines (products) on which India increased the applied tariff and the 
reasons behind each tariff increase.  
Reply: Information about the Tariff changes can be seen at https://www.cbic.gov.in/ . Applied rates 
of customs duty in India are prescribed keeping in view the overall economic and other policy 
objectives which include enhancing domestic value addition, creating level playing field, ensuring 
availability of raw materials at competitive pric es, securing economic interests of the country, 
ensuring supply of essential items at affordable prices.  
Page s 116 (para. 4.7) and 50 (para. 3.34) 
Question 88: Please explain why, since 2018, the import quota fill rates are negligible for MFN 
TRQs.  
Reply:  Fill rate of a TRQ is a demand -driven outcome and based on the market situation. During 
2018-19, for sunflower seed oil, the prevailing MFN applied rate was below the in -quota bound TRQ 
rate while for other products viz. milk and maize, no applications we re received for import under 
TRQ licen ce. 
4.1.2 Measures affecting exports  
Page 118 (para. 4.16)  
Question 89: Please provide the total export subsidy amounts disbursed for agricultural products 
under the Merchandise Export from India Scheme and the Agriculture Export Promotion Scheme, 
respectively, from 2015 to the present.  
Reply: MEIS is a remission of embedded prior -stage cumulative indirect taxes incurred in production 
of export products in accordance with footnote 1 read with Annex I of the SCM A greement. Thus, 
the funds granted under MEIS for agricultural products are not an export subsidy. Under the scheme 
for implementation of Agriculture Export Policy, no funds have been released so far.  
Table 4.3 Minimum support prices, 2014 –20 
Page 120 (Table 4.3 ): The Secretariat Report lists Minimum Support Prices provided during certain 
marketing years . Paragraph 4.26 details the September 2018 launch of the PM -AASHA scheme, 
which includes the PSS scheme through which procurement occurs at the Minimum Supp ort Price.  WT/TPR/M/403/Add.1  
 
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  Question 90: Since the 2018 launch of PM -AASHA, through which other schemes does such 
procurement occur? In addition, which commodities are procured through each scheme?  
Reply: PM-AASHA covers pulses, oilseeds and copra. The other schemes for p rocurement of wheat, 
paddy, coarse grains, cotton continue in their existing form.  
Question 91: What modifications to the operations of any of these additional schemes have resulted 
from the launch of PM -AASHA?  
Reply: PM-AASHA covers pulses, oilseeds and c opra. The other schemes for procurement of wheat, 
paddy, coarse grains, cotton continue in their existing form.  
4.1.4 Other measures  
Page 128 (para. 4.52) (Table 4.5): to the Secretariat Report, the Marine Products Export 
Development Agency (MPEDA) provides support to the India 's marine wild capture fishing industry 
for, among other things, insulated fish holds, acquisition of refrigerated trucks, construction of new 
ice plants, facilities to process and store marine products, conversion or construct ion of long liners, 
and sea freight.  
Question 92: To the extent that MPEDA 's mission is to promote exports, please explain how the 
assistance provided to the industry is consistent with India 's obligations under Article 3.1(a) of the 
Agreement on Subsidies  and Countervailing Measures.  
Reply: The assistance provided by MPEDA is consistent with our WTO obligations.  
Question 93: What is the scope of the assistance being provided for the conversion and construction 
of long liners?  (e.g., What is the level of funding for this program?  
Reply: Under 12th Plan scheme, MPEDA was operating a scheme "Assistance for the conversion of 
existing fishing vessels to tuna long liners " for the year 2015 -2018 for improving sustainable fishing 
in India. The scheme is to provid e financial assistance for the modification of existing fishing vessel 
to tuna fishing using hand line or long line.  Maximum financial assistance was limited to 
INR 20 million. But no assistance had been provided under the scheme.  
Question 94: How many boa ts are being targeted for conversion?  
Reply: No assistance had been provided under the scheme.  
Question 95: How many new boats will be built for this purpose?  
Reply:  As no assistance had been provided under the scheme, the answer would be 'no such boats '. 
Question 96: Where will these boats be fishing?  
Question 97: What fishery management measures are in place to ensure that the support being 
provided will not result in overfishing or overcapacity?  
Reply: As no new boats have been built, so there is no question of fishing leading to overcapacity 
or overfishing.  
4.2 Energy  
Table 4.7 Composition of the electricity sector  
Page 130 (Table 4.7 ): The Secretariat Report indicates that there are 21 central government 
owned power generation companies.  
Question 98 : Please provide additional details on these 21 entities, the amount of support they 
receive from the Government, and their relative market share.  WT/TPR/M/403/Add.1  
 
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  Reply: As of 30.11.2020, the all India installed capacity (IC) (all sources) of power stations is 
374199 MW. About 25% of this total IC, that is, 92294.63 MW, is on account of the 21 Central 
Government owned power generation companies. The list of 21 Central Government owned power 
generating companies along with the details of their IC and share in total IC is gi ven below:  
List of Central Government Power Generation Companies as on 30.11.2020  
Sl. 
No. Name of Central Government Power 
Generation Company  Short 
Name  Sector  Installed 
Capacity 
(MW)  Share %  
1 ARAVALI POWER COMPANY PRIVATE 
LIMITED  APCPL  Central 
Sector  1,500 1.63 
2 BHAKRA BEAS MANAGEMENT BOARD  BBMB  Central 
Sector  2,920.3  3.16 
3 BHARTIYA RAIL BIJLEE COMPANY LTD.  BRBCL  Central 
Sector  750 0.81 
4 NARMADA HYDRO DEVELOPMENT 
CORPORATION  NHDC  Central 
Sector  1,520 1.65 
5 NHPC LIMITED  NHPC  Central 
Sector  5,451.2  5.91 
6 NEYVELI LIGNITE CORPORATION LIMITED  NLC Central 
Sector  3,140 3.40 
7 NUCLEAR POWER CORPORATION OF 
INDIA LIMITED  NPCIL  Central 
Sector  6,680 7.24 
8 NTPC LIMITED  NTPC  Central 
Sector  50,467.23  54.68  
9 NLC TAMILNADU POWER LIMITED  NTPL Central 
Sector  1,000 1.08 
10 SATLUJ JAL VIDYUT NIGAM LIMITED  SJVNL  Central 
Sector  1,912.02  2.07 
11 THDC INDIA LIMITED  THDC  Central 
Sector  1,400 1.52 
12 NTPC -SAIL POWER COMPANY LIMITED  NSPCL  Central 
Sector  500 0.54 
13 RATNAGIRI GAS POWER PRIVATE 
LIMITED  RGPPL  Central 
Sector  1,967.08  2.13 
14 NTPC TAMILNADU ENERGY COMPANY 
LIMITED  NTECL  Central 
Sector  1,500 1.63 
15 KANTI BIJLEE UTPADAN NIGAM LTD.  K.B.U.N.L  Central 
Sector  610 0.66 
16 DAMODAR VALLEY CORPORATION  DVC Central 
Sector  7,103.2  7.70 
17 NORTH -EASTERN ELECTRIC POWER 
CORPORATION LIMITED  NEEPCO.  Central 
Sector  1,727 1.87 
18 ONGC LTD.  ONGC  Central 
Sector  726.6  0.79 
19 MEJA URJA NIGAM PRIVATE LIMITED  MUNPL  Central 
Sector  660 0.72 
20 NABINAGAR POWER GENERATING 
COMPANY PRIVATE LIMITED  NPGCL  Central 
Sector  660 0.72 
21 DEPARTMENT OF ATOMIC ENERGY  DAE Central 
Sector  100 0.11 
 
Grand Total   
92,294.63  100 
These companies are commercially driven Public Sector Undertakings and Government is not 
providing any financial support to these PSUs. Companies like NTPC, NHPC, SJVN etc. are profit 
making listed enterprises that give dividends to the Government.  
4.4.1 Financial services  
4.4.1.2 Insurance  
Page 142 (para. 4.104 ): The Secretariat Report highlights changes t o India 's FDI policies during 
the review period. The United States notes its understanding that, with respect to insurance 
companies, India was considering removal of the FDI cap of 49 % and the management control 
requirements. The United States appreciated  that the FDI limitation for insurance intermediation 
was removed during the review period.  WT/TPR/M/403/Add.1  
 
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  Question 99: Is India still considering the removal of the FDI limitation and management and 
control requirements for insurance companies and what is the potential timeline for removal?  
Reply: Vide 2015's amendments to the Insurance Act, 1938, FDI participation in insurance 
companies has been increased from 26% to 49%.  Insurance intermediaries have been permitted 
100% FDI through the automatic route. The FDI Policy is reviewed on an ongoing basis after 
examination of all issues in consultation with the stakeholders to ensure that India remains an 
attractive and investor friendly destination.  
4.4.2 Telecommunications  
Page 143 (para. 4.110 ): The Secretariat Report notes that the use of digital payments incre ased 
during the review period. Evidence suggests that most effective way to increase availability and 
innovation in the area of electronic payments is to foster an open and competitive market for supply 
of these services.  
Question 100: How has India facili tated an open and competitive market for electronic payments 
and ensured a level playing field for foreign and domestic suppliers in this area?  
Reply: The authorization of entities (domestic/foreign) for issuance of e -wallets is covered under 
the provision s of the Master Direction (MD) for Prepaid Payment Instruments (PPIs), issued by the 
Reserve Bank of India. The MD on PPIs do not have any provision that discourages a level playing 
field between domestic and foreign banks.  
PART II: QUESTIONS BASED ON THE GOVERNMENT REPORT (WT/TPR/G/403)  
3 REFORMS: ECONOMIC POLICY AND OTHER INITIATIVES  
3.1 Economic Reforms and Better Delivery of Services  
3.1.3 Merger of public sector banks  
Page 11 (para. 3.3): India's report indicates that it has consolidated various state-owned banks 
that will create new, stronger state -owned banks with a global presence.  
Question 101: What support does India provide to these four public sector banks?  
Reply: The regulatory intent is to issue guidelines and directions that are ownershi p neutral. 
Government does not provide specific support to any public -sector bank.  
Question 102: What, if any, incentives does India offer to these banks to increase their global 
presence?  
Reply: Government does not offer any incentive for these banks to i ncrease their global presence.  
Question 103: Does India offer incentives for these banks to invest overseas?  
Reply: Government does not offer any incentive for these banks to invest overseas.  
5 TRADE AND INVESTMENT POLICIES  
5.7 FDI Policy  
Page 15 (para. 5.7)  
Question 104: Can India expand on the new process (in absence of the regulatory board) for 
investment reviews at the ministry level?  
Reply: Subsequent to the abolition of the Foreign Investment Promotion Board (FIPB), the work of 
granting government approval for foreign investment under the extant FDI Policy and FEMA 
Regulations has been entrusted to the concerned Administrative Ministries / D epartments. Procedure 
for Processing the Applications Seeking Approval for Foreign Investment has been mentioned in the 
Standard Operating Procedure (SOP) which can be accessed on Foreign Investment Facilitation Portal 
at https://fifp.gov.in/Forms/SOP.pdf   WT/TPR/M/403/Add.1  
 
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  Question 105: When reviewing an investment through the government route from a land border 
economy, how is the ministry/department selected?  
Reply: Based on the activity of the Indian Investee Company, FDI  proposals are assigned to the 
concerned Administrative Ministry / Department as per the aforementioned Standard Operating 
Procedure (SOP).  
Question 106: Are other ministries/departments involved in the review?  
Reply: Along with the Administrative Ministry/ Department concerned, other Ministries/ 
Departments may be consulted based on the criteria specified in the aforementioned Standard 
Operating Procedure (SOP).  
  WT/TPR/M/403/Add.1  
 
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  UNITED STATES  (FOLLOW -UP QUESTIONS)  
Page 11 (para. 23): The Secretariat Report states that India has adopted leniency provisions 
regarding cartels.  
Question 1: Please explain why India has not submitted a Table ES:1 notification in more than 
eight years, and its most recent notification covers a marketing yea r that is more than a decade ago.  
Reply:  India will notify its Export subsidy notifications in due course.  
Follow -up Question: The United States notes that India did not answer the question that was 
asked.  Please explain why India has not submitted a Tabl e ES:1 notification in more than eight  years, 
and its most recent notification covers a marketing year that is more than a decade ago.  
Reply: India will notify its Export subsidy notifications to the WTO in due course.  
Page 35 (para. 2.20): According to th e Secretariat Report, Table 2.2, India last submitted a 
Table  ES:1 notification to the Committee on Agriculture on 30 July 2012 with the latest year covered 
being marketing year 2009 -10. 
Question 3: Please indicate a firm date as to when all outstanding ES :1 and ST/ES:2 notifications 
will be submitted.  
Reply:  India will notify its Export subsidy notifications to the WTO in due course.  
Follow -up Question: The United States notes that India did not answer the question that was 
asked.  Please indicate a firm date as to when all outstanding ES:1 and ST/ES:2 notifications will be 
submitted?  
Reply: India will notify its Export subsidy notifications to the WTO in due course. As information has 
to be collected from a large number of sources, it is difficult to  specify a firm date for submitting the 
outstanding notifications.  
Page 74 (para. 3.122 ): 
Question 27: Please explain  in more detail the Remission of Duties or Taxes on Export Products 
scheme, including what specific duties and taxes are eligible for refun d. Also, please provide a 
webpage listing all the products (including HS codes) eligible under this measure.  
Reply: Details of the  RoDTEP scheme have  not been notified yet.  
Follow -up Question: The United States notes that India did not answer the questions  asked, as the 
answers do not appear to depend on whether RoDTEP has been notified. Please explain  in more detail 
the Remission of Duties or Taxes on Export Products scheme, including what specific duties and taxes 
are eligible for refund. Also, please pro vide a webpage listing all the products (including HS codes) 
eligible under this measure. In addition, please indicate when the RoDTEP scheme will be notified?  
Reply:   The Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP)  would be 
based on the globally accepted principle that taxes and duties should not be exported and taxes and 
levies borne on the exported products should be either exempted or remit ted to exporters. Under 
the Scheme, currently un -refunded duties/ indirect taxes / levies, at the Central, State and local 
level, borne  on the exported product shall be refunded.  The details of the Scheme have not yet been 
notified. Therefore, webpage list ing of products eligible under the scheme is also not yet notified. 
Further, the scheme has been formulated in terms of the provisions of the footnote 1 to 
Article  1.1(a)(1)(ii) of the SCM Agreement.  
Page 85 (para. 3.165 ): According to the Secretariat Report, conformity assessment with Indian 
standards is regulated by Bureau of Indian Standards (BIS) (Conformity Assessment) Regulations, 
2018, which provide for different types of conformity assessment schemes, including self -
certification. Se lf-certification requires the manufacturer to register with the BIS, have samples 
tested by BIS -recognized laboratories, and complete a self -declaration of conformity.  WT/TPR/M/403/Add.1  
 
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  Question 33: Please explain why India, as a member of the IECEE CB Scheme,  does not acce pt test 
results from internationally  accredited labs.  
Reply: As on date, BIS is accepting test reports of laboratories recognized by BIS within India. 
However, there is a provision of acceptance of test reports of laboratories of other countries only in 
case there is a mutual agreement with such countries. For components of Electronic and IT 
equipment, the test reports of IECEE CB and certification of foreign certification bodies are accepted 
by BIS and BIS recognized laboratories.  
Follow -up Question: Please clarify why only 27.3% of its standards were harmonized with 
international standards. Please identify and explain the factors and/or circumstances that have 
prevented additional standard harmonization.  
Reply:  At present, considering that there are 7 ,815 existing Indian Product Standards for which 
corresponding ISO or IEC standards exists, about  83% of Indian Standards have been harmonized 
as on  December 2020. 27.3% refers to the share of harmonization of all standards to international 
standards, such as quality management standards, process standards, service standards. The 
standards formulation activity of BIS follows the internationally accepted principles and the 
recommended practices laid down by the ISO/IEC Guide.  Standard formulation procedure is aligned 
to the 'Code of Good Practice for the preparation, adoption and application of standards (Article 4 of 
WTO-TBT Agreement, Annex 3) '.  
Page 85 (para. 3.166 ): According to the Secretariat Report, "product certificat ion is voluntary, for 
both domestic and imported products, except for products that must comply with Indian standards, 
even if these are not considered technical regulations, for public health and safety and for the 
protection of the environment. The relev ant sectoral entities, in consultation with stakeholders, 
decide which products require mandatory certification. " Because mandatory certification is required 
for certain types of products:  
Question 35: What data/information informs the process?  
Reply: Among others, risk associated with the product is a major criterion for formulation of a 
technical regulation.  
Follow -up Question:  
a) Please describe the method(s) and/or criteria by which India assesses risk when formulating 
a technical regulation and determini ng whether products will require mandatory certification.  
b) Please confirm that the criteria by which India mandates product certification is based on 
existing criteria and guidelines of international standard setting bodies, such as OIE, IPPC 
and Codex Ali mentarius.  
c) Please provide the framework and identify the regulatory body and/or bodies that will 
determine the credibility of any newly identified risk that may result in mandatory product 
certification.  
d) Please identify and describe any additional criter ia – other than risk associated with the 
product – that factor into the decision -making process for mandatory product certification.  
Reply:   
a) Government notifies technical regulation on, inter alia, the following ground(s): Protection of 
human, animal or plant health; Safety of the environment; Prevention of unfair trade 
practices; and National security. The regulator evaluates the need for using standard in the 
technical regulation on the basis of objective of the regulation, risk assessment, te sting 
infrastructure required, comments and inputs from the stakeholders etc. The use of standard 
in the technical regulation is therefore finalised after due assessment and consultation.  
b) The Indian Technical Regulations are generally based on Indian Stand ards, and where not 
available / relevant, they are based on International Standards. However, it is to be noted 
that most of the Indian Standards are already harmonized with International Standards.  
c) Regulatory bodies for SPS measures are as under:  
Food rel ated measures - Food Safety and Standards Authority of India (FSSAI)  
Animal health related measures - Department of Fisheries and Department of Animal 
Husbandry & Dairying (DAHD) under Ministry of Fisheries, Animal Husbandry and Dairying  WT/TPR/M/403/Add.1  
 
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  Plant health related  measures - Department of Agriculture, Cooperation and Farmers Welfare 
under the Ministry of Agriculture and Farmers Welfare  
For TBT Measures:  The concerned line Ministry/Department/Regulator.    
d) Government of India notifies products for mandatory certificat ion through technical 
regulations on, inter -alia, following ground(s): Protection of human, animal or plant health; 
Safety of the environment; Prevention of unfair trade practices; and National security.  
Page 90 (paras.  3.188 and 3.189 ): The Secretariat Re port notes that the Food Safety Standards 
Authority of India (FSSAI) provides standards for contaminants and pesticide residues, and it 
establishes panels of independent scientific experts to set these standards. The United States is 
concerned that the sci entific basis for the standards is not transparent, including when India 's 
proposed changes to maximum residue levels (MRLs) are moving away from standards that were 
previously harmonized with the Codex Alimentarius.  
Question 41: Please explain the process  and scientific justification used for establishing MRLs and 
other contaminant levels.  
Reply: The applications for pesticides which are approved by the Registration Committee of the 
Central Insecticide Board and Registration Committee (CIB & RC) are submit ted before the Scientific 
Panel for recommending the Maximum Residues Limits (MRLs). FSSAI notifies the Maximum Residue 
Limits (MRLs) of pesticides based on data received from CIB&RC, Ministry of Agriculture and Farmers 
Welfare, after risk assessment by th e Scientific Panel for Pesticides Residues. The Scientific Panel 
recommends MRLs based on well -established internationally accepted criteria and procedure of risk 
assessment, from the data generated and provided by the applicants in accordance with the 
prescribed Guidelines. During the process of MRL computation, the health concern in respect of all 
age groups in the country are taken into consideration especially the worst -case situations are 
considered. The MRL recommendations of the Scientific Panel are approved by the Scientific 
Committee and Food Authority  and the draft notification  are uploaded on the FSSAI website for public 
comments  and WTO website for comments from member countries within the stipulated 60 days ' 
time-period. The comments receive d are duly considered by the Scientific Panel and the notification 
is accordingly finalized after following due procedure.   Thus, the procedure is transparent and based 
on scientific principles.  
Follow -up Question: Please identify the specific "well-establ ished internationally accepted criteria 
and procedure of risk assessment " used to determine MRLs.  
Reply:  The Maximum Residue Limit (MRL) is calculated using the internationally accepted OECD 
calculator based on data of the pesticide provided by Central In secticides Board & Registration 
Committee (CIB&RC) of the Department of Agriculture and Farmer's Welfare. Risk assessment is 
done on the basis of toxicology versus dietary intake compatibility.  
Page s 98 (para. 3.224 ) and 117 (para. 4.13): According to the Secretariat Report, India 
removed onions from the list of products where exports are restricted to STEs (since 2014/15), 
stating that this product was liberalized and no STEs were granted special privileges to export onions. 
However, on 29 September 2019, the Directorate General of Foreign Trade (DGFT) RD/TPR/1210 - 
76 -issued an export ban for onions, and on 30 November 2019, permitted the export of up to 
9,000  MT through STEs. In addition, on 13 September 2020, the Government of India amended its 
onion ex port policy from free to prohibited, thereby banning fresh onion exports with immediate 
effect.  
Question 51: Please explain how the aforementioned measures, and not allowing private traders 
the opportunity to compete, are consistent with general principles  of non -discriminatory treatment 
set out in the Article XVII of the GATT.  
Reply: The ban on export of Onions was imposed on 29.09.2019 and during the period Onions were 
banned, the permission to export only specific type of onions - "Bangalore Rose Onions and 
Krishnapuram Onions" was given for a limited quantity to all the eligible exporters based on a defined 
criteria and procedure outlined by DGFT.   Any private exporter could export these specific types of 
onions and the export was not limited to only STE s. The export ban on Onions is imposed primarily 
to ensure adequate supply of onions in the domestic market and the export of Bangalore Rose Onion WT/TPR/M/403/Add.1  
 
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  and Krishnapuram Onions was allowed since these types of onions have no demand in the domestic 
market in Indi a. 
Follow -up Question: The United States notes that the reply does not sufficiently address the 
question that was asked.  Please explain how the aforementioned measures, and not allowing private 
traders the opportunity to compete, are consistent with general principles of non -discriminatory 
treatment set out in the Article XVII of the GATT.  
Reply:  As has already been clarified in the reference question's response, any private exporter could 
export onions and it was not limited to the STEs. A copy of t he relevant notification allowing export 
of onions up to 9000 MTs can be accessed from 
https://content.dgft.gov.in/Website/Noti%2027%20dt%2028.10.2019%20Eng_0.pdf . 
Question  52: Please list the STEs granted permits to export onions since the export ban was enacted 
in September 2019.   
Reply: The ban on export of Onions was imposed on 29.09.2019 and during the period Onions were 
banned, the permission to export only sp ecific type of onions - "Bangalore Rose Onions and 
Krishnapuram Onions" was given for a limited quantity to all the eligible exporters based on a defined 
criteria and procedure outlined by DGFT.   Any private exporter could export these specific types of 
onions and the export was not limited to only STEs.  
Follow -up Question: The U.S. notes the India 's reply for question 50 does not list the STEs granted 
permits to export onions since the export ban was enacted in September 2019.   Please provide the 
list req uested.  
Reply:  As has already been clarified in the reference question's response, any private exporter could 
export onions and it was not limited to the STEs. A copy of the relevant notification allowing export 
of onions up to 9000 MTs can be accessed fr om 
https://content.dgft.gov.in/Website/Noti%2027%20dt%2028.10.2019%20Eng_0.pdf . 
Page 107 (para. 3.254 ): Section 65A of the Copyright Act (as amended in 2012) relate s to the 
anti-circumvention requirements found in certain of the listed treaties (e.g., the WIPO Copyright 
Treaty (WCT) and the WIPO Performances and Phonograms Treaty (WPPT)) by providing for fines 
RD/TPR/1210 - 78 - and criminal penalties for persons who , with the intention of infringing an 
exclusive right, circumvent an effective technological measure controlling access to a copyrighted 
work.  
Question  62: What is the definition of "effective technological measure" under Indian law?  
Reply:  As per Section 65 A of the Copyright Act, 1957 any technological measure, which is applied 
for the purpose of protecting any of the rights granted under the Act is an "effective technological 
measure. " However, the same has not been explicitly defined in t he Copyright Act 1957. The 
227th Parliamentary Standing Committee, agreed to incorporate the aforesaid provision, in alignment 
with Article 11, of the WCT, with a distinction that limited legislative guidelines were being 
incorporated, given the complexiti es faced even by Developed countries, in defining such terms and 
allow the judiciary to evolve the law, based on practical situations, keeping in mind the interest of 
the public at large.  
Follow -up Question: Does "effective technological measure " cover tec hnological measures applied 
for the purpose of protecting access to the work, or does this term apply only to technological 
measures used to protect copyrights?  
Reply:  As per Section 65A, "effective technological measures " includes all such measures appli ed 
for the purpose of protecting copyrights conferred by the legislation, which include measures taken 
for protection against unauthorized access.  
Page 107 (para. 3.254 ): The Secretariat Report indicates that India has acceded to the WPPT and 
WCT.  WT/TPR/M/403/Add.1  
 
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  Question  67: Please confirm that the right to access a work/recording at a time and place chosen 
by the consumer (i.e., the interactive right of communication/transmission to the public), an 
exclusive right under the WPPT and WCT, could not be covered by the statu tory licen ce in Article  31D? 
Reply:  The right to access a work/recording at a time and place chosen by the consumer is covered 
under the definition of "communication to the public " under Section 2(ff) of the Copyright Act, 1957. 
Statutory licen ce under Section 31D covers communication to the  public and by extension covers 
right to access a work/recording at a time and place chosen by the consumer.  
Follow -up Question: WPPT Articles 10 and 14 and WCT Article 8 require that authors, producers, 
and performers shall enjoy the exclusive right of au thorizing the making available of their works, 
phonograms, and performances, by wire or wireless means, in such a way that members of the public 
may access these works from a place and at a time individually chosen by them. Please explain how 
India complie s with these obligations to provide this exclusive right.  
Reply:  The Copyright Act, 1957, guarantees the exclusive right of authorizing the making available 
of works, phonograms, and performances, by wire or wireless means, to authors under Section 14 
clause (a) sub -clause (iii), to producers under Section 14 clause (e) sub -clause (iii), and to 
performers under Section 38A clause (1) sub -clause (iii), which provide for right of "communication 
to the public. " The making available of works, phonograms & perf ormances, in such a way that 
members of the public may access these works from a place and at a time individually chosen by 
them is compiled, when the rights guaranteed under the aforesaid provisions is read along with the 
definition of communication to th e public and broadcast. The definition of the terms "communication 
to the public " and "Broadcast " as per the Copyright Act 1957 are wide enough to encompass the said 
Articles of the WCT & WPPT. Communication to the public under Section 2 (f) is defined as:  
"communication to the public means making any work or performance available for being seen or 
heard or otherwise enjoyed by the public directly or by any means of display or diffusion other than 
by issuing physical copies of it, whether simultaneously or at places and times chosen individually, 
regardless of whether any member of the public actually sees, hears or otherwise enjoys the work 
or performance so made available. Explanation. — For the purposes of this clause, communication 
through satellite or c able or any other means of simultaneous communication to more than one 
household or place of residence including residential rooms of any hotel or hostel shall be deemed to 
be communication to the public. " 
Further, the term Broadcast under Section 2(dd) of  the Copyright Act, 1957, which is in essence a 
sub-set" of the Definition "Communication to the Public ", is widely defined covering communication 
to the public by means of "wireless diffusion " and by "wire". Section 2(dd) is reproduced below:  
"broadcast " means communication to the public — 
(i) by any means of wireless diffusion, whether in any one or more of the forms of signs, sounds 
or visual images; or  
(ii) by wire, and includes a re -broadcast . 
Pages 128 (para. 4.52) (Table 4.5): to the Secretariat Report, the Marine Products Export 
Development Agency (MPEDA) provides support to the India 's marine wild capture fishing industry 
for, among other things, insulated fish holds, acquisition of refrigerated trucks, construction of new 
ice plants , facilities to process and store marine products, conversion or construction of long liners, 
and sea freight.  
Question 92: To the extent that MPEDA 's mission is to promote exports, please explain how the 
assistance provided to the industry is consistent w ith India 's obligations under Article 3.1(a) of the 
Agreement on Subsidies and Countervailing Measures.  
Reply:  The assistance provided by MPEDA is consistent with our WTO obligations.  
Follow -up Question: If MPEDA 's mission is to promote exports, how can s ubsidies provided under 
MPEDA not be considered to be export subsidies?  
Reply:  The mandate of MPEDA is to develop the marine products industry. Towards this MPEDA is 
carrying out activities like registering  the infrastructure facilities of entities relate d to seafood trade, WT/TPR/M/403/Add.1  
 
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  conduct research and development on aquaculture through the R&D arm of MPEDA, the Rajiv Gandhi 
Centre for Aquaculture (RGCA), dissemination of trade information   and conduct extension and 
awareness activities, trainings etc through Netw ork for Fish Quality Management and Sustainable 
Fishing (NETFISH) & National Centre for Sustainable Aquaculture (NaCSA).Towards the development 
of the marine products industry, MPEDA provides various services such as issuing certificates like 
DS-2031, Catc h Certificate, Certificate of origin etc. according to importing country requirements.  As 
a part of its developmental activities, MPEDA regulates exports of marine products and take all 
measures required for ensuring sustained, quality seafood marketing fr om the country. It is also 
empowered to carry out inspection of marine products, its raw material, fixing standards, 
specifications, and training.   
 
  WT/TPR/M/403/Add.1  
 
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  NORWAY  
Agriculture  
According to recent press reports, India is providing an export subsidy for skimmed mi lk powder for 
almost six months from 1 November 2020. The subsidy amounts to 680 USD/t for up to 
50,000 tonnes.  
Question 1: Does India regard this export subsidy to be in line with the 2015 Nairobi Ministerial 
Decision to phase out export subsidies, and if so how?  
Reply: The Government of Gujarat State in India recently announced a financial assistance for 
skimmed milk powder to defray the costs of marketing including handling, domestic and international 
freight charges. Developing countrie s are entitled to provide such subsidies until 2023 under the 
AoA read with the Nairobi Ministerial Decision on Export Competition. This is a temporary measure 
to help the vulnerable farmers and cooperatives.  
7.5 Europe in the report from India  
India began  negotiating a Bilateral Trade and Investment Agreement (BTIA) with the European Union 
in 2007. Sixteen rounds of negotiations were held until 2013. Resumption of negotiations is being 
explored. The India - EFTA TEPA (Trade and Economic Partnership Agreemen t) between India and 
the four -member EFTA was launched in 2008, with seventeen rounds of negotiations till date. India 
is also engaged with the UK for a Trade Partnership as it assumes charge of its international trade 
policy.  
Question 2: India is an impo rtant trade partner for Europe and the EFTA countries. Unfortunately 
has progress in the negotiations been modest the last couple of years. Will the negotiations with the 
EFTA-countries  be a priority for India in the near future and what does India see as the most 
challenging in these negotiations?  
Reply:  EFTA countries are important trade partners of India and India looks forward to an early 
conclusion of the ongoing negotiations with a spirit of mutual accommodation. The two sides have 
taken a number of s teps since last year towards re -initiation of the negotiation with an aim to deliver 
early gains for businesses in these tough times. This is a priority item for India and we are hopeful 
of finding the right balance to arrive at an understanding  on key Goods & Services requests of both 
the sides.  
Maritime transport  
Para. 4.149 in the secretariat report states that : 
"Indian -flag vessels carried only 7.1% of India's total merchandise trade in 2017/19. To increase 
their participation in transportation, a series of measures were implemented over the review period. 
These included: a reduction in the GST rate for bunker fuel, from 18% to 5% in 2017; and the 
introduction of the right of first refusal for vessels built in India in bids for cha rtering vessels."  
Such measures may lead to uncertainty and unpredictability for owners of foreign flag ships and/or 
foreign built vessels. It would be interesting to hear how these measures have been received, and 
what impact they have had so far.  
Questi on 3:  It would also be interesting to hear how these measures relate to the principles of 
freedom of navigation and merchant shipping as well as the WTO rules for trade in goods. Are there 
certain cargoes that are reserved for Indian built vessels, to the extent that such vessels are 
available, or does the right of first refusal apply to all cargo types?  
Reply: The Government aims for  a healthy and competitive shipping and shipbuilding industry. The 
measures taken by the Government do not adversely impact principles of freedom of navigation and 
merchant shipping as well as the WTO rules for trade in goods. Also, the measures referred to in the 
question do not lend any kind of uncertainty or unpredictability.  Reduction of GST on bunker fuel 
has been d one to bring parity in incentivizing foreign flag and Indian flag ships to procure bunker WT/TPR/M/403/Add.1  
 
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  fuel in India, to make Indian and Foreign flagged vessels equally competitive. Further, the 
introduction of the right of first refusal in October 2020 for ships which  are built in India is aimed  to 
encourage Indian and non -Indian companies, which are already carrying India 's EXIM cargo, to 
invest in India 's maritime trade and benefit from building ships in India.  Besides,  the right of first 
refusal does not apply to CI F imports and FOB exports. Moreover, there are no cargoes reserved for 
Indian built ships.  
 
  WT/TPR/M/403/Add.1  
 
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  CHILE  
WT/TPR/G/403 – India (Government Report)  
6. INDIA AND THE WTO: STRENGTHENING THE MULTILATERAL SYSTEM  
6.2 WTO Reform  
Page 18 (p ara. 6.4)  
"The Appellate Body's resolution of the impasse must precede other reforms, as there is little 
incentive to negotiate new rules if there is no mechanism in place to act as an independent and 
effective guarantor of those rules. The WTO reform agenda should focus on development, preserving 
the core values of the multilateral trading system and strengthening special and differential 
treatment provisions in existing and future agreements. It must also preserve the multilateral nature 
of the WTO, in particular c onsensus decision -making. To be widely acceptable, discussions on WTO 
reform must be based on the principles of inclusion and fairness."  
Question 1:  "In this regard, Chile would appreciate India sharing its vision regarding the 
implications of strengthenin g the Special and Differential Treatment (TED) provisions for both 
existing and future agreements. In particular, Chile would appreciate India to indicate whether or 
not it considers that strengthening the EDR in future agreements would involve a revision of the 
characteristics of this flexibility as understood today. This, considering the different ideas shared by 
Members in this area.  
Reply: S&D is a fundamental founding principle of the Marrakesh Agreement. Further, the 
development divide which existed i n 1990s not only persists, but has widened in many areas. India, 
therefore, believes that S&DT should necessarily be part of any current and future negotiations at 
the WTO. As far as review and strengthening of S&DT provisions in the existing WTO disciplin es is 
concerned, para. 44 of the Doha Ministerial Decision, mandates the WTO to review all S&D provisions 
with a view to strengthening them and making them more precise, effective and operational. At 
present, most of the S&D provisions are best endeavour clauses. India has been seeking their 
strengthening as per the Doha Mandate.  
6.3 Special and Differential Treatment  
Page 18  (para. 6. 7 ) 
"The premise that developing country Members considered in a position to waive special and 
differential treat ment do so voluntarily in current and future negotiations seems to be a more 
acceptable solution."  
Question 2:  Considering the importance of special and differential treatment for India and the fact 
of the high heterogeneity that exists among developing co untries, do you think that an approach 
built on the needs and impact of each Member in a particular negotiation (case by case) can be a 
feasible alternative to combat current distortive policies affecting international trade?  
Reply: Special and Differential Treatment is a treaty -embedded right at the WTO and is an integral 
part of the Multilateral Trading System. S&DT provisions should therefore be part of any current and 
future negotiation in WTO. India also does not agree to a case -by-case appr oach for S&DT, as this 
will not ensure predictability and stability in multilateral trading system.  
6.4 Fisheries Subsidies  
Pages 18 -19 (para. 6.8 ) 
"Strong disciplines are needed to regulate certain harmful fisheries subsidies to ensure the 
sustainable exploitation of marine resources to ensure the principle of intergenerational equity. At 
the same time, we need to be aware of the existence of a large  population of small -scale and 
artisanal subsistence fishermen in developing countries, especially LDCs, whose livelihoods depend 
on fishing. They have no other options to ensure livelihoods, and we are all responsible for that 
vulnerable population that a re marginalized fishermen. That is precisely why SDC 14.6 and the WT/TPR/M/403/Add.1  
 
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  decision on fisheries subsidies under CM11 clearly require that appropriate and effective special and 
differential treatment should be granted to developing countries, including LDCs. In add ition, the 
current state of marine fisheries is due to the countries that provide the most subsidies, not to 
countries such as India. Adequate scope for action is also needed to ensure a decent standard of 
living for our subsistence, artisanal and small -scale fishermen. Any discipline that does not take 
these concerns into account would lead to a total imbalance between the elements of the discipline 
and the subsistence needs of these fishermen. India is actively and constructively involved in the 
negotiati ons on fisheries subsidies."  
Question 3:  In this regard, Chile would appreciate India's sharing of its vision for what elements or 
disciplines should be established in the future outcome of these negotiations, with the aim of helping 
to "ensure the sustain able exploitation of marine resources".  
Reply: The negotiations on Fisheries Subsidies Disciplines are progressing in WTO in order to achieve 
an outcome as mandated at MC 11. India is engaged constructively in fisheries subsidies negotiations 
working towards an agreement on comprehensive and effective discipline that prohibit certain forms 
of fisheries subsidies that contribute to over capacity and over fishing and eliminate subsidies that 
contributor to IUU fishing, fully recognizing that appr opriate and effective S&DT for developing 
country members including LDCs should be an integral part of these negotiations.  
Question 4:  What measures is India implementing internally to limit those harmful subsidies 
granted to industry and long -scale fisher ies?  
Reply: Presently there is no industrial and large -scale fisheries under taken in India. Therefore, the 
question of reducing or limiting any subsidies in the sector does not arise.  
Question 5:  Chile would appreciate India clarifying the meaning and sc ope of the concept of 
"intergenerational equity" in these negotiations.  
Reply: Inter-generational equity is one of the central principles of India 's National Marine Fisheries 
Policy, 2017 which implies management of fisheries in sustainable manner so that the next 
generations would get the benefit from the fisheries resources in the same way as their predecessor 
generation have availed.  
WT/TPR/S/403 – India (WTO Secretariat report)  
3 TRADE POLICIES AND PRACTICES, BY MEASURES  
3.1 Measures Directly Affecting Imports  
3.1.3 Tariffs  
3.1.3.1 Applied tariffs  
Page 56  (paras. 3.26 and 3.28 ) 
Paragraph 3.26. "The simple average applied MFN tariff increased from 13.0% in 2014/2015 to 
14.3% in 2020/2021, or to 15.4% when AVEs are took into account (Table 3.3). A t the time of the 
last Review, the average tariff had also increased from 12% in 2010/2011 to 13% in 2014/2015, 
mainly due to an increase in tariffs on agricultural products (WTO definition) (36.4% in 2014/2015). 
However, in 2019/2020, the increase in the average tariff was due to an increase in the average 
non-agricultural products, from 9.5% to 10.8%, or to 12.0% when AVEs are considered (Table 3.3). 
The average MFN tariff for non -agricultural products increased due to an overall increase in all tariff 
rates, except tariffs on transport material, which rose from 32.1% to 23.0%. The largest increase 
affected clothing, the average tariff of which increased from 10.0% to 19.6%. Despite the increase 
in tariffs on non -agricultural products, the protection of ag ricultural products (WTO definition), 
although it decreased from 36.4% in 2014/2015 to 34.8% in 2019/2020, remains considerably 
higher than the average protection for non -agricultural products. The decline in the average tariff 
for agriculture is mainly du e to a decrease in tariffs on cereals and cereal -based preparations (from 
40.9% in 2014/2015 to 32.7% in 2019/2020) and oilseeds and fats (33.2% in 2014/205 to 26.7% 
in 2019/2020). Most agricultural products continue to benefit from above -average tariff pr otection, 
especially beverages, alcoholic liquids and tobacco (81.1%) coffee and tea (74.8%) (Table A3.1)".  WT/TPR/M/403/Add.1  
 
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  Paragraph 3.28 "The distribution of tariff rates has under some changes since the last Review. Tariff 
rates continue to range from 0 to 150% (taking  into account only ad valorem rates). However, at 
the time of the previous review, 79.1% of all tariff lines were subject to tariff rates of between 0% 
and 10%. Since then, this percentage has fallen to around 69.6% in 2019/2020 and to 67.8% in 
2020/2021. The percentage of tariff lines that support rates above 10% and up to 30% increased 
from 12.1% to 21.3% in 2019/2010 and to 22.1% in 2020/2021. The percentage of tariff lines with 
rates above 30% also increased from 2.8% at the time of the last review to 4 .0%. The most common 
tariff rates remain 10% (31.7%) 7.5% (24.4%). The highest rates, above 60%, apply to products 
such as alcoholic beverages (150%), followed by animals and their products; fruits, vegetables and 
plants; coffee and tea; and certain motor vehicles, with tariffs of 100% (Chart 3.1 and Table A3.2)".  
 
 
Question 6:  In section 3.1.3.1. Applied tariffs; India's tariff developments in recent years are 
shown. As expressed in the Secretariat's report in Paragraphs 3.26 and 3.28, as well as in Tabl e 3.3, 
it can be seen that applied tariffs have increased recently, which is in a different sense from the 
trade policies implemented by most countries, which have reduced their tariff levels applied in recent 
periods. In particular, the simple average app lied MFN tariff increased from 13.0% in 2014/2015 to 
14.3% in 2020/2021, or to 15.4% when ad valorem equivalents are considered. In addition, 
paragraph 3.28 describes that there is an increase in the share of higher tariff levels in distribution, 
comparing  them with the distribution of tariffs applied in the previous review. In this regard, Chile 
would appreciate it if India could indicate; If there are proposals to reduce applied tariffs in the near 
future? and do these recent increases in applied tariffs correspond to a purpose of increasing tax 
WT/TPR/M/403/Add.1  
 
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  collection and strengthening public finances or a trade policy that seeks to protect the domestic 
market?  
Reply: Applied rates of customs duty in India are prescribed keeping in view the overall economic 
and other policy objectives which include enhancing domestic value addition, creating level playing 
field, ensuring availability of raw materials at competitive prices, securing economic interests of the 
country, ensuring supply of essential items at affordabl e prices. Extensive deliberations and inclusive 
policy making ensures that tariff changes are transparent and in accordance with the stated policy 
of the country, thus providing a stable policy environment. Tariff rates would continue to be 
prescribed in c onsonance with the stated policy objectives as elucidated above. Moreover, the 
changes in tariffs are within India 's bound duties committed in the WTO.  
3.1.6 Anti -dumping, countervailing and safeguard measures  
3.1.6.1 Anti -dumping measures  
Page 71 (para. 3.76)  
"If the definitive anti -dumping duty is higher than the provisional duty already imposed and levied, 
the dispute is not charged to the importer. On the other hand, if the definitive anti -dumping duty is 
less than the provisional duty already le vied, the dispute is returned to the importer. Moreover, if 
the provisional duty is abolished as a result of a negative final finding, the provisional duty already 
levied is returned to the importer".  
Question 7:  Paragraph 3.75 explains the general conditi ons for the repayment of duties to the 
importer (where the definitive anti -dumping duty is lower than the provisional duty already levied, 
and where the provisional duty is abolished as a result of a negative final finding). In this regard, 
Chile would app reciate it if India could provide further details of how the refund would be effective. 
Specifically, is it necessary for the importer to request a refund? Are there deadlines for this or is it 
done automatically?  
Reply: Yes, the duty would be refunded in accordance with Rule 21 & 21A of India 's Anti -Dumping 
Rules.  
Page 71  (para. 3.77)  
"The anti -dumping duty remains in force for a period of five years from the date of imposition of the 
duty, which is the date on which the Department of National Revenue issues the notification imposing 
the duty. However, the right may be revised at any time before the deadline expires. Before the 
expiry of a measure, the designated authority may initiate a sunset review, on its own initiative or 
at the request of an interested party. The anti -dumping duty may remain in force pending the 
outcome of such review for an additional period not exceeding one year. However, if the central 
government, in a review, considers that the abolition of the duty could result in con tinuation or 
recurrence of injury and dumping, it may, from time to time, extend its validity for a new period of 
five years, which will begin from the date of the extension order."  
Question 8:  Paragraph 3.77 mentions that anti -dumping duties remain in for ce for a period of five 
years from the date of imposition of the duty. In this regard, Chile would appreciate it if India could 
clarify whether there are all the conditions for imposing anti -dumping duties, would these duties 
always be imposed for five yea rs, or are there cases where the imposition is less than the maximum 
allowed by the WTO?  
Reply: India has imposed duties for periods less than 5 years keeping in view the specific aspects 
of a particular case.  WT/TPR/M/403/Add.1  
 
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  4. TRADE POLICIES AND PRACTICES, BY SECTOR  
4.1 Agriculture  
4.1.2. Measures affecting exports  
Page 134  (para. 4.17 ) 
"On 5 March 2019, the Government announced a Transport and Marketing Assistance (TMA) 
programme for certain agricultural products. The programme "aims to assist the international 
component of freight and marketing of agricultural products, which is likely to mitigate the 
disadvantage of a higher cost of transporting exports of certain agricultural products due to 
transhipment, and to promote trademark recognition of I ndian agricultural products in specified 
foreign markets". The programme was initially implemented from 1 March 2019 to 31 March 2020, 
but was extended and applied to all products falling within HS Chapters 1 to 24, as well as marine 
and plantation product s, with some exceptions. The TMA applies only to exports to certain markets, 
with variable rates. Products exported through special economic zones, export zones, etc. are not 
eligible for the programme. As of 2 March 2020, some INR 171.7 million had been d isbursed (section 
3.2.5.4)".  
Question 9:  What requirements must exporters meet in order to be part of the TMA programme? 
What are the main agricultural products receiving transport and marketing assistance, and the 
amounts associated with those products? W hat are the specific foreign markets to which the TMA 
points?  
Reply: The assistance under the TMA Scheme is available to all registered exporters of agriculture 
products covered in HSN chapter 1 to 24, with certain exceptions. Foreign markets to which TMA 
points are the countries of West Africa, EU, Gulf, North America, China, Russia & CIS, ASEAN, etc.  
4.1.3 Measures affecting production  
Page 134  (para. 4.18 ) 
"The objective of India's agricultural policy is to ensure food price stability and food security in the 
country. To achieve this, a number of measures have been taken. India's food subsidies account for 
nearly half of the government's total explicit subsidies (Table 3.25). Another third of the total explicit 
subsidies correspond to the subscr iption subsidy. Water and electricity consumption is also 
subsidized. Several recent independent studies have estimated that the amount of public agricultural 
subsidies has been increasing over time and accounted for about 8% of agricultural production in 
2015/2016, while public investment in the sector has been declining."  
 
Question 10:  Paragraph 4.17 mentions that India, with the aim of ensuring food price stability and 
food security in the country, has targeted 71% of explicit subsidies (2020/2021) on f oodstuffs and 
fertilizers (Table 3.25). In addition, it is indicated that the amount of public subsidies to agriculture 
has been increasing over time and accounted for about 8% of agricultural production in 2015/2016, 
while public investment in the sector has been declining. In this regard, Chile would appreciate it if 
India could indicate; If there are no public plans or policies to promote the increase or public 
WT/TPR/M/403/Add.1  
 
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  investment in India's agricultural sector, so that explicit subsidy levels in the agricultural  sector 
decrease over time, and can the Indian agricultural sector become a more sustainable agricultural 
system over time?  
Reply: The government has announced the Agriculture Infrastructure Fund (AIF) in 2020 for 
catering to the financing needs of the se ctor for post - harvest management infrastructure and 
community farming assets in order to improve agriculture infrastructure in the country. In another 
initiative, as per extant FDI Policy, 100% FDI is allowed through automatic route in Floriculture, 
Horticulture, Cultivation of Vegetables & Mushrooms under controlled conditions; Development and 
Production of seeds and planting material; Animal Husbandry (including breeding of dogs), 
Pisciculture, Aquaculture, Apiculture and Services related to agro and all ied sectors. Further, 100% 
FDI is also permitted in the Tea sector including tea plantations, Coffee plantations, Rubber 
plantations, Cardamom plantations, Palm Oil plantations and Olive oil tree plantations through 
automatic route. Furthermore, India has continuously undertaken steps to rationalise the input 
subsidies in the recent years and the Direct Benefit Transfer (DBT) of fertiliser subsidies is a step in 
this direction.  
4.4 Services  
4.4.1.  Financial services  
4.4.1.1  Bank  
Page 156  (para. 4.86 ) 
"With regard to branches, in accordance with the Provisions of the Banking Sector Regulatory Act of 
1949, banks need the approval of the RBI in order to be able to open new branches or modify the 
location of existing branches. However, registered domestic commercial banks (apart from regional 
rural banks) can open bank offices (in category 1 to 6 centers) without authorization. In the new 
guidelines, published on 18 May 2017, the term "branch" was replaced by "bank office" (defined  as 
a fixed unit of servic e delivery by banking staff or a business intermediary, which provides services 
such as deposit acceptance, check collection/cash withdrawal or lending, for a minimum of four  hours 
per day and at least five days a week), allowing banks to expand their network to rural areas."  
Question 11:  with regard to the term "banking office ", mentioned in the new guidelines, Chile would 
appreciate whether India could indicate the impact or effects on the growth of banking networks in 
rural areas by replacing "branch " with "bank office".  
Reply: With a view to improve access to banking services in unbanked rural areas, it was stipulated 
in 2011 that at least 25% of the total number of 'brick and mortar branches ' should be opened in 
unbanked rural area. The term 'branch ' was replaced with the term 'Banking Outlet ' in 2017, as the 
Banking Outlet includes even those fixed -point service delivery units, even if these are managed by 
bank's business correspondent, subject to providing certain minimum services for minimum 
stipulated time and days. The objective to permit such outlets (other than brick and mortar 
branches) is to allow banks to reach the unserved rural areas in a cost -effective manner.  
Page 156  (para. 4.87 ) 
"To promote financial inclusion, the Pradhan Mantri Jan Dhan Yojana (PMJDY) program was launched 
in August 2014, allowing people who do not have a bank account to open one in order to receive 
wages, benefits, remittances and other payments directly there. Acco unts, which do not require a 
minimum balance to remain active, have been increasing, and as of 30 October 2019, about 
374 million of those accounts had been opened.  
Question 12:  Paragraph 4.86 indicates that on 18 May 2017, the new published guidelines rep laced 
the term "branch" with "bank office", allowing banks to expand their network to rural areas. In this 
regard, Chile would appreciate it if India could explain whether the maintenance and use charges 
for these accounts are regulated. Also, to know if t he costs are lower than traditional bank accounts.  
Reply: Yes. They are regulated and the maintenance and use charges are the same for all. The costs 
of operations are expected to be lower than the traditional bank accounts, as no brick -and-mortar 
structur e is required and the banks may operate through the Business Correspondent model.  WT/TPR/M/403/Add.1  
 
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  Pages 156 –157 (paras. 4.87 -4.88) 
Paragraph 4.87 "In addition, the requirement for lending to priority sectors for commercial banks 
has remained in force. All commercial banks are required to lend a certain percentage of their 
adjusted net bank credit (ANBC) or credit equivalent to the amount of risk not recorded on the 
balance sheet, if this value is higher, to all sectors identified as priorities (Table 4.12).  " 
Paragraph 4.88 "In August 2019, the RBI authorized that bank loans to non -bank financial 
enterprises for the granting of loans to agriculture and mEDs be considered loans to priority sectors, 
subject to certain limits".  
Question 13:  With regard to parag raphs 4.87 and 4.88, relating to loans for priority sectors, Chile 
would welcome whether India could indicate the criteria for the inclusion of a new priority sector, 
and the impact that such inclusion has had on obtaining rural loans for the agriculture a nd MSME 
sectors.  
Reply: The criteria for inclusion of various sectors under the Priority Sector Lending (PSL) are that 
such sectors, despite being creditworthy, may not get timely and adequate credit in the absence of 
a special dispensation. An explicit ma ndate is provided in the form of targets to banks to be achieved 
for PSL towards various sectors including MSME and Agriculture. The PSL dispensation has had an 
appreciable impact on the credit growth for Agriculture and MSME sectors over the last five yea rs.  
4.4.1.2  Insurance  
Page 161  (para. 4.102 ) 
"Insurance penetration (proportion of premiums to GDP) fluctuated in recent years, but remains low 
(less than 3.7% in 2018). During the period under review, a number of programmes were launched 
to facilitate public access to insurance. These programmes are: PM Jan Suraksha Bima Yojana, aimed 
at giving insurance coverage to rural areas; PM Jeevan Jyoti Bima Yojana, for the informal sector; 
Atal Pension Yojana, for informal workers who contribute to t he national pension system; and 
Ayushman Bharat Yojana, which provides medical coverage up to a maximum amount of 
INR 500,000. In addition, during this period agricultural insurance coverage was expanded under 
the PM Fasal Bima Yojana programme (section 4. 1)". 
Question 14:  Paragraph 4.102 indicates that promotion programmes have been established to 
facilitate access to insurance for the population, such as PM Jan Suraksha Bima Yojana, PM Jeevan 
Jyoti Bima Yojana or Ayushman Bharat Yohana. In this regard, Ch ile would appreciate it if India 
could provide further details regarding these programmes. In particular what has been their impact 
since they were implemented, for example, with percentage figures of population increase assured.  
Reply: The objective of th e schemes is to provide a universal social security system for all Indians, 
especially for the poor and the under -privileged.  The Pradhan Mantri Suraksha Bima Yojana (PMSBY) 
Scheme offers accidental death and disability cover of INR 200,000 to all subscrib ing bank account 
holders in the age group of 18 -70 years with a premium of INR 12 per annum per subscriber. The 
Pradhan Mantri Jeevan Jyoti Bima Yojana, which facilitates easy access to life insurance for all 
Indians in the age group of 18 to 50 years havi ng a bank account and provides for a life insurance 
cover of INR 200,000 with an annual premium of INR 330. Details on the benefits from the Schemes, 
their coverage of the population, the number of claims settled etc. may be accessed 
at jansuraksha.gov.in . The Aayushman Bharat, a flagship scheme of Government of India was 
launched with the aim of Universal Health Care. The Scheme aims at providing a health cover of 
INR 500,000 per family per year for secondary and tertiary care hospitalization. Details regarding 
the Aayushman Bharat Scheme can be accessed at https://pmjay.gov.in . 
Page 161  (para. 4.104 ) 
"Among the main changes introduced by the Insurance (Amendment) Legislation Act 2015 is the 
increase in the RDI limit in the sector, which went from 26% to 49% automatically (without the need 
for government authorization), although control must remain in t he hands of Indian shareholders; 
authorization for reinsurance companies to open branches for the development of reinsurance 
activities in  India  (up to a limit of 49% FDI); and authorization for insurance companies to increase 
their capital through capit al instruments other than shares. In addition, from 2 September 2019, up WT/TPR/M/403/Add.1  
 
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  to 100% foreign participation in insurance intermediation services is allowed, subject to verification 
by IRDAI and subject to registration and licensing conditions and requirements."  
Question 15:  Paragraph 4.104 states that up to 100% foreign participation in insurance 
intermediation services has been allowed since 2 September 2019, subject to verification by IRDAI 
and subject to registration and licensing conditions and requirements.  In this regard, Chile would 
appreciate it if India could indicate the necessary requirements for IRDAI to verify the investment 
of foreigners. Is there a specific list of requirements or should certain international standards be 
met? 
Reply: In insurance intermediaries, 100% FDI has been permitted through the automatic route. 
IRDAI follows the conditions as specified in the Indian Insurance Companies (Foreign Investment) 
Rules, 2015 as amended from time to time and notified by the Government.  Further, IRDAI verifies 
that the submission of undertaking as mentioned in Schedule - AA of the IRDAI (Insurance 
Intermediaries) (Amendment) Regulations, 2019 has been done by intermediaries that have a major 
shareholding of foreign investors. IRDAI also veri fies intermediaries ' compliance with the given 
undertaking.  
4.4.2 Telecommunications  
Page 163  (para. 4.110 ) 
"On the other hand, in some sectors of the economy (such as agriculture, banking, healthcare and 
education services) the use of digital technologies  is widespread. For example, mobile applications 
have been developed to disseminate information to farmers, purchase inputs and sell products. In 
addition, digital payment applications have been launched to support demonetization efforts, and 
the use of ot her types of digital payment, such as e -banking and e -wallet, has increased."  
Question 16:  Paragraph 4.110 states that the use of digital technologies is widespread in some 
sectors of the economy (such as agriculture, banking, healthcare and education serv ices). For 
example, mobile applications have been developed to disseminate information to farmers, purchase 
inputs and sell products. In this regard, Chile would appreciate it if India could comment on whether 
support programmes have been developed for the  digitization of the sectors referred to in that 
paragraph. In particular, those that target sectors that are isolated or not represent an attractive 
business (whether representing few people or the significant cost of infrastructure).  
Reply: The Governmen t has created various digital platforms such as National Agriculture Market 
(eNAM) - an online trading platform for agricultural commodities in India and e -Hospital application 
-a one -stop solution which helps in connecting patients, hospitals and doctors on a single digital 
platform.  Further, the Government has initiated a comprehensive initiative called PM e -Vidya which 
unifies  all efforts related to digital/online/on -air education such as  DIKSHA  (Digital Infrastructure 
for Knowledge Sharing),  the national platform for school education and SWAYAM (Study Webs of 
Active Learning for Young Aspiring Minds), the portal for  Massive Open Online Courses (MOOCs).  
Other transformational digital initiatives include  JAM (Jan Dhan Yojana, Aadhaar, Mobile),  Aadha ar 
based e -KYC, Aadhaar enabled Payments System and Unified Payments Interface (UPI) integration 
for digital payment.  
Page 163  (para. 4.111 ) 
"Telecommunications services are governed primarily by the Telegraph Act of India, 1885; the Indian 
Wireless Telegr aphy Act of1933;  the Indian Telegraph Regulations of 1951; and the Indian 
Telecommunications Regulatory Authority Act of1997. During the period under review, no substantial 
changes were made to these legislative texts. Consideration is being given to reviewing the 2018  
Personal Data Protection Bill to address online privacy."  
Question 17:  Paragraph 4.111 states that India is considering reviewing the 2018 Personal Data 
Protection Bill to address online privacy. In this regard, Chile would appreciate it  if India could delve 
into the aspects that the draft law on the protection of personal data that is named is to be covered. 
It is in Chile's interest to know what India is looking for with such a bill (more similar to European 
or American or other standar ds). WT/TPR/M/403/Add.1  
 
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  Reply: The Personal Data Protection (PDP) Bill, 2019, under consideration in the Parliament, aims 
to ensure privacy of the individual as well as growth of digital economy by creating a robust Data 
Protection framework for India and a Data Protection A uthority (DPA). The Bill will be a horizontal 
enactment for regulating the privacy of Personal Data, empowering the citizens with rights relating 
to their personal data and specifying the obligations of the Data Fiduciary. The Bill is based on 
various glob al standards.  
Further details regarding the Bill can be accessed at:  
http://164.100.47.4/BillsTexts/LSBillTexts/Asintroduced/373_2019_LS_Eng.pdf . 
Page 163  (para. 4 .116) 
"Telecommunications services are provided by both public and private suppliers. The State owns 
two telecommunications service providers, Bharat Sanchar Nigam Ltd. (BSNL) and Mahanagar 
Telephone Nigam Ltd. (MTNL), and a telecommunications infrastructure provider (BBNL) that 
installs, operates and maintains the national fib re optic network.173 BSNL and MTNL remain the 
leading providers of fixed telecommunications services, but their combined market share declined 
from 75.1 % in 2015 to 64.6% in 2019 (Chart 4.2). Mobile telecommunications services, on the other 
hand, remain dominated by private providers. In 2016 a new private supplier, Reliance JIO, entered 
the market, with the consequent intensification of competition.174 V MNEs were authorized to 
operate in 2016175; by 2020 there were 112 VMNOs licensed, but they were not operational. In 
August 2019, four Internet service providers (Reliance JIO, Bharti, Vodafone -Idea, and BSNL) owned 
98.4% of the Internet market."  
Question 18: Paragraph 4116 states that the State has two telecommunications service providers, 
Bharat Sanchar Nigam Ltd. (BSNL) and Mahanagar Telephone Nigam Ltd. (MTNL), and a 
telecommunications infrastructure provider (BBNL) that installs, operates and maintains  the national 
fibre optic network. In this regard, Chile would appreciate whether India could indicate whether 
state-based enterprises also have to pay the fees and usage duties indicated by Indian 
telecommunications laws.  
Reply:  The State -owned Telecom Se rvice Providers Like Bharat Sanchar Nigam Limited (BSNL), 
Mahanagar Telephone Nigam Limited (MTNL) and Bharat Broadband Network Limited (BBNL) are 
treated at par with Private Telecom Service Providers.  
Pages 167-168 (para. 4.122 ) 
"During the period under review, measures were also taken to safeguard the interests of consumers. 
In 2016, TRAI banned telecommunications and Internet service providers from offering content -
based data plans to ensure that all Internet communications are treated fairly and that there is no 
discrimination for different fees. The portability rate paid by consumers was reduced from INR 19 to 
INR 6.46 in 2019.  A single telecommunications service provider can offer a maximum of 25 rate 
plans per service zone."  
Question 19:  Paragr aph 4.122 states that, in 2016, TRAI prohibited telecommunications and 
Internet service providers from offering content -based data plans to ensure equitable treatment of 
all Internet communications and that there is no discrimination for different fees. In  this regard, 
Chile would appreciate it if India could comment on whether this prohibition was specifically made 
to content collection or is part of a net neutrality law or policy (such as the net neutrality law in Chile 
that also does not allow different content charges).  
Reply: Government has prohibited discriminatory tariffs for data services on the basis of content 
vide its regulation 'Prohibition of Discriminatory Tariffs for Data Services Regulations, 2016 ' issued 
on 8th February 2016.  A Licensee prov iding Internet Access Service shall not engage in any 
discriminatory treatment of content, including based on the sender or receiver, the protocols being 
used or the user equipment. The Licensee is prohibited from entering into any arrangement, 
agreement o r contract, by whatever name called, with any person, natural or legal, that has the 
effect of discriminatory treatment of content.  WT/TPR/M/403/Add.1  
 
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  4.4.3  Transportation  
Page 168 (para. 4.126 ) 
"Roads are one of the main modes of transport; 69% of India's  freight transport is carried out by 
road so there is a high road  density. However, roads are congested and poorly maintained, raising 
transport time and therefore costs. The national motorway network accounts for 2.2% of total roads. 
Road development has been a challenge due to lack of resources, the long duration of land 
acquisition procedures and construction delays, as well as environmental issues. In addition, several 
institutions are responsible for road systems, including the Ministry of Road and Hig hway Transport 
and other agencies, complicating the decision -making process and preventing uniform policy 
implementation. In 2017, the central government launched the Bharatmala Pariyojana programme 
to increase the efficiency of road freight transport thro ugh the development of road corridors, 
motorways and port connectivity. In addition, in order to further develop road infrastructure through 
the use of public -private partnerships, a new model (hybrid annuity model) was adopted for the 
conclusion of public -private contracts for the construction of motorways, in order to reduce the risks 
associated with the granting of funds to private investors".  
Question 20:  Paragraph 4.126 states that, in order to increase the efficiency of road freight 
transport, the Cen tral Government of India launched the Bharatmala Pariyojana programme. In this 
regard, Chile would appreciate it if India could indicate in greater detail the type of measures taken 
in that plan and whether it could list any of them.  
Reply: The Bharatmala Pariyojana Programme was launched in October 2017 to optimize the 
efficiency of freight and passenger movement across the country by bridging critical infrastructure 
gaps through development of Economic Corridors, Inter Corridors and Feeder Routes, Nationa l 
Corridor Efficiency Improvement, Border and International connectivity roads, Coastal and Port 
connectivity roads and Green -field expressways. This programme involves the development of an 
aggregate length of about 34,800 km (including 10,000 km residual  National Highway Development 
Programme [NHDP] stretches).  
Pages 168 -169 (para. 4.127 ) 
"The Ministry of Railways is responsible for formulating and implementing policies relating to rail 
transport. By 2020 it was developing the 2030 National Rail Plan, whi ch aims to expand the network 
and promote multimodal transport. The rail network is managed and operated by the state -owned 
Indian Railways, which is India's largest employer  (1.23 million employees in March 2019). Daily 
traffic amounts to 23.1 million passengers and 3.3 million tonnes of goods. The importance of 
railways in freight transport has been diminishing over the years, mainly due to their high cost (since 
freight tran sport contributes to financing passenger traffic) and capacity constraints. Since 2016, 
measures have been being taken to revitalize rail freight transport, such as streamlining tariffs, 
containerization and capacity expansion. In addition, construction of  the Western Freight Rail 
Transport Corridor (Delhi -Mumbai) and the Eastern Corridor is expected to lower costs, increase 
capacity and improve port connectivity, as India's  largest container port  (Jawaharlal Nehru port in 
Mumbai) will be connected to Delhi  via the Western Corridor. On the other hand, a high -speed rail 
corridor for passenger transport (Mumbai -Ahmedabad) is being built."  
Question 21:  Paragraph 4.127 provides that, with regard to rail transport, in 2020 the Ministry of 
Railways developed the R ailway Plan 2030. In this regard, Chile would appreciate it if India could 
explain the main axes of action of this strategy and what economic results it intends to achieve from 
it. 
Reply: The Indian Railways is developing National Rail Plan 2030 to create capacity ahead of demand 
by 2030, so that the continuous increase in demand up to 2050 can be catered to. Additionally, the 
National Rail Plan lays down the business strategy of the railways to increase its modal share to 45% 
of the total National freight by 2030. This would ensure that the revenue surplus generated post 
2030 would be adequate to meet future capital investments  WT/TPR/M/403/Add.1  
 
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  4.4.3.1 Air transport  
Page 172  (para. 4.140 ) 
"Total international passenger traffic in 2019/2020 was estimated at 47.8 million passengers. Most 
international passenger and cargo traffic remained in the hands of foreign airlines (Table 4.19). 
Five international airports (Delhi, Mumbai, Chennai, Kochi, and Bengaluru) accounted for 70% of 
international passenger traffic durin g the first quarter of 2019."  
 
Question 22:  Paragraph 4.140 provides that, in relation to air transport, most international 
passenger and cargo traffic remained in the hands of foreign airlines. In this regard, Chile would 
appreciate it if India could explain the percentage of cargo traffic dependi ng on the study, compared 
to passenger traffic, and whether such service is provided at all airports in the country.  
Reply: Five International airports (Delhi, Mumbai, Kochi, Calicut and Hyderabad) are expected to 
account for 67% (approx.) of the Internati onal passenger traffic handled at Indian airports during 
the year 2020 -21. The percentage of cargo traffic & passenger traffic based on data received from 
Airlines may be seen in the Table:  
2019 -20 International  Indian Carriers  Foreign operators  
 Passenger 
(in million)  Freight (in  
thousand 
metric 
tonnes)  Passenger 
(in million)  percentage 
(%) w.r to 
col 2 Freight (in 
thousand 
metric 
tonnes)  percentage 
(%) w.r to 
col 3 Passenger 
(in million)  percentage 
(%) w.r to 
col 2 Freight (in 
thousand 
metric 
tonnes)  percentage 
(%) w.r to 
col 3 
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) 
April to 
June  15.6 427.3  5.4 34.7 55.1 12.9 10.2 65.3 372.2  87.1 
July to 
September  15.7 375.1  5.7 36.1 52.6 14.0 10.1 63.9 322.4  86.0 
October to 
December  16.5 399.7  6.5 39.2 56.5 14.1 10.0 60.8 343.2  85.9 
Total 47.8 1,202.0  17.5 36.7 164.2  13.7 30.3 63.3 1,037.8  86.3 
The weblinks given in Secretariat Report TPR docs may be corrected as given below:  
a. Page No. 151 (point No. 4.140 footnote 216) DGCA. Viewed at: https://dgca.gov.in/digigov -
portal/?page=jsp/dgca/InventoryList/dataReports/aviationDataStatistics/airTransport/inter
national/quaterly/ANALYTICAL%20REPORT%20Q1%202019.pdf&main4268/4207/servicen
ame 
b. Page No.152 (below Table 4.19) Source: DGCA, Statistics. Viewed at: 
https://dgca.gov.in/digigov -portal/?page=jsp/dgca/InventoryList/dataReports/aviation 
DataStatistics/handbookCivilAviation/HANDBOOK2018 -19.pdf&main4252/4205/ 
servicename . 
WT/TPR/M/403/Add.1  
 
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  Page 173  (para. 4.142 ) 
"Domestic and international passengers departing from India must pay an aviation safety fee and 
an airport development fee.  These fees are set by the Ministry of Civil Aviation (in the first case) 
and the Airports Economic Regulatory Authority (AERA, in the second), in consultation with airport 
operators. Fee s vary depending on the airport and the type of passenger (domestic or international). 
The revenue received is used to finance services related to safety, infrastructure and passenger 
service.  
Question 23:  Paragraph 1.142 states that domestic and internati onal passengers departing from 
India are subject to an aviation safety fee and an airport development fee. In this regard, Chile 
would appreciate, if India could indicate the standards under which its Ministry of Civil Aviation or 
the Airports Economic Reg ulatory Authority, as the case may be, determines these prices.  
Reply: The Aviation Security Group (ASG), a specialised group, is deployed for providing security at 
airports in India. To meet the cost of deployment of ASG at airports and other security rel ated 
expenditure, Aviation Security Fee (ASF) is levied as per Rule 88(A) of Aircraft Rules 1937 on eligible 
embarking passengers for financing aviation security. The levying of charges/fee for financing 
aviation security is as per global standard practice . 
The provision of levy of Development Fee is provided in Airport Authority of India (AAI) Act, 
1994.This clause is applicable to AAI managed Airports only. Under Sec. 13(b) of AERA Act 2008, 
AERA is empowered to determine the amount of Development Fees in  respect of 'major ' airports. 
Development Fee is a pre -funding levy and is normally a measure of last resort. It is levied to bridge 
the funding/financing gap of the airport operator and is levied under section of 22 A of AAI Act 1994 
for (a) funding or fi nancing the costs of upgradation, expansion or development of the airport at 
which the fee is collected; or (b) establishment or development of new airport in lieu of the airport 
referred to in clause (a); or (c) investment in the equity in respect of shar es to be subscribed by 
Authority in companies engaged in establishing, owning, developing, operating or maintaining a 
private airport in lieu of the airport referred to in clause (a) or advancement of loans to such 
companies or other persons engaged in suc h activities.  
Page 171  (para. 4.134 ) 
"India is a member of the International Civil Aviation Organization (ICAO) and is a party to several 
multilateral conventions and protocols on civil aviation.209 In addition, it has signed 116 bilateral 
agreements on air services, 14 of them since 2015.210  However, none of them grant rights of 
seventh freedom."  
Question 24:  Paragraph 4.144 notes that with regard to air transport services, without prejudice 
to India's signing of 116 bilateral air transport agreements, it has not granted seventh freedom. In 
this regard, Chile would appreciate whether India could generically state the reason behind this 
decision and whether, in the long term, it would plan to grant this freedom.  
Reply: India does not grant or claim seventh freedom rights to/from carriers of for eign countries as 
it not in tune with our policy. India is not considering granting seven freedom rights in the near 
future.  
4.4.4  Tourism  
Page 178  (para. 4.162 ) 
"The Ministry of Tourism (MOT) formulates and implements national tourism policy. During the 
period 2015 -2020, India continued to implement the 2002 National Tourism Policy (NTP), which 
aims to make tourism a sustainable instrument of economic and social growth.267 The main 
objectives of the Policy were: to increase India's competitiveness, to  expand tourism -related 
products and destinations, and to create a world -class tourism infrastructure. A new 2015 NTP 
project was being reviewed in 2020, focusing on a sustainable and inclusive tourism model."  
Question 25:  Paragraph 4.162 indicates that In dia continued to implement the 2002 National 
Tourism Policy (NTP), which aims to make tourism a sustainable instrument of economic and social WT/TPR/M/403/Add.1  
 
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  growth". In this regard, Chile would welcome India's indicate what measures have been taken under 
that policy, and  what results have been observed.  
Reply: The Ministry of Tourism , Government of India  has evolved Comprehensive Sustainable 
Tourism Criteria (STCI) for major segments of the tourism industry, namely Accommodation, Tour 
Operators, Beaches, Backwaters, Lakes  and River sectors applicable for the entire country. The 
Criteria have been evolved after consultations with the various stakeholders. The Government is in 
the process of renewal of Memorandum of Understanding with 'Responsible Tourism Society of India ' 
with a vision to educate stakeholders about the importance of promoting 'Sustainable and 
Responsible practices ' in the tourism industry.  The target group includes hoteliers, tour operators, 
individuals from transport industry, resort managers, tourist guides, community representatives and 
government departments.  
Page 178  (para. 4.165 ) 
"Tourism is not regulated by t he central government; India does not have legislation to regulate 
tourism at the central level. However, the Ministry of Tourism continues to issue voluntary approval 
certificates to tour operators, travel agencies, online travel aggregators (since 2018),  tour operators, 
hotels and other types of accommodation and restaurants. Domestic and foreign suppliers are 
subject to the same eligibility criteria for obtaining approval certificates. These requirements are set 
out in the guidelines published by the Min istry; sustainability requirements can be applied."  
Question 26:  Paragraph 4.165 states that "tourism is not regulated by the central government; 
India does not have legislation to regulate tourism at the central level. However, the Ministry of 
Tourism con tinues to issue voluntary approval certificates (...)". In this regard, Chile would 
appreciate India's indicated process for obtaining such voluntary certificates, how many are granted 
per year (approximately) and what percentage of tour operators have suc h a certificate.  
Reply: To ensure standardized  service standards of stakeholders, the Ministry of Tourism, 
Government of India has a voluntary scheme of accreditation /recognition to Tour Operators, 
Adventure Tour Operators and Tourist Transport Operators ( service providers) . On an average, 
approximately 200 approvals/recognitions are being given on annual basis. Guidelines  regarding the 
scheme are available on the website of the Ministry of Tourism.  
Page 179  (para. 4.167 ) 
"Tourism service providers need authorization to import certain restricted goods essential to their 
activities; the import value must not exceed 10% or 25% of the currencies obtained during the 
previous year."  
Question 27:  Paragraph 4.167 provides that "Tourism service providers need aut horization to 
import certain restricted goods essential to their activities; the import value must not exceed 10% 
or 25% of the currencies obtained during the previous year." In this regard, Chile would appreciate 
it if India could indicate what elements a re considered to determine whether the import value should 
not exceed 10% or 25%.  
Reply:  The provision in the Handbook of Procedure of Foreign Trade Policy 2015 -2020 lays down 
that Hotels, including tourist hotels, recognised by Director General of Tourism , Government of India 
or a State Government shall be entitled to import Authorisation upto a value of 25% of foreign 
exchange earned by them from foreign tourists during preceding licensing year, for import of 
essential goods related to hotel and tourism i ndustry. Most of such items are no longer in the list of 
restricted items and applications are not being received for import of these items from the hotel 
industry in recent years.  
  WT/TPR/M/403/Add.1  
 
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  CHINESE TAIPEI  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
Secretariat Report - India (S403)  
3.1.5 Import prohibitions, restrictions, and licensing  
Page 55 ( para. 3.53)  
"India continues to impose import prohibitions and restrictions. The DGFT may, through a 
notification, impose restrictions on imports (and exports) to… "  
Question 1: In June 2020, the Indian government amended the import policy for new pneumatic 
tyres used in buses, lorries and motorcycles so that a licen ce must be obtained for import. Putting 
the goods under the restricted category means an importer will need a licen ce or permission from 
the DGFT for imports. Has India notified the WTO about its new measures? Could India please 
elaborate on the timeframe for the licen ce application process?  
Reply: The measure has been taken keeping in view th e quality issues, and the non -automatic 
licensing requirements are administered in a manner consistent with the rules of the WTO Agreement 
on the Import Licensing Procedures, including with respect to the timeframes for grant of import 
licences. A number o f licen ces have been granted, after approval by the Exim Facilitation Committee 
(EFC).  India will notify these measures to the relevant WTO Committee shortly.  
3.3.2 Standards and other technical requirements  
Page 83 ( para. 3.159)  
"The BIS, under the Department of Consumer Affairs, is responsible for standardization. It was 
officially established as India's national standards body under the BIS Act, 2016. " 
Question 2: According to BIS website figures, as of 25 November 2020, 1,080 applications to the 
BIS for laptops, tablets and other devices were still pending, with 669 of those having been in the 
wait for more than 20 days, and some cases still in wait after 2 months. In the past, cases were 
processed within 15 days. How does the BIS plan to accelerat e this process and help importers get 
their certificates in time?  
Reply: Licences under Scheme – II of Schedule – II of BIS (Conformity Assessment) Regulations, 
2018 are granted subject to submission of test report from BIS recognized laboratories establis hing 
the conformity of the product to the relevant Indian Standards and submission of supporting 
documents. Grant of licence may be delayed if any of the above is not available/ not satisfactory.  It 
is the endeavour of BIS to grant licen ces within the time  norms and BIS has granted all applications 
where all queries have been resolved and necessary approval is received.  Licences under Compulsory 
Registration Scheme is granted to the manufacturers, not to the importers.  
3.3.2 Standards and other technical requirements  
Page 86 ( para. 3.169)  
"The BIS has eight laboratories to perform conformity assessment tests. It also recognizes other 
laboratories (OSLs) (some 243), which comply with the BIS Laboratory Recognition Scheme, 2018; 
no overseas OSLs have been recognized. OSL services are used when testing is not viable for the 
BIS. The accreditation of laboratories is carried out by the National Accreditation Board for Testing 
and Calibration Laboratories (NA BL) and the National Accreditation Board for Certification Bodies 
(NABCB). " 
Question 3: The BIS insofar has not recognized assessment reports from overseas laboratories. 
However, the pandemic has created difficulties in field inspections abroad. Will BIS consider taking 
feasible measures to flexibly speed up the inspection schedule?  
Reply: Bureau of Indian Standards under its laboratory recognition scheme (BIS LRS) grants 
recognition to laboratories for testing of products as per the relevant Indian St andards. Clause 12 WT/TPR/M/403/Add.1  
 
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  of BIS LRS deals with recognition of foreign laboratories. The decision regarding recognition of 
foreign laboratories will be taken by BIS taking into account the  MRA (Mutual Recognition 
Agreement) with the concerned nation. BIS LRS is a vailable on BIS website  www.bis.gov.in . As on 
date, there are no pending application from overseas OSL seeking recognition from BIS in 
compliance to the provisions of LRS. Further, Foreign inspection visits are on hold  due to the 
prevalent restrictions on International travel imposed by not only the Government of India, but in 
certain cases by the Government of other countries as well in view of the ongoing COVID -19 
pandemic. As soon as the situation of COVID -19 improve s and the restrictions are lifted, India will 
plan the inspections.  
Question 4: How does BIS utilize the International Laboratory Accreditation Cooperation (ILACs) 
platform to ensure product safety and promote trade facilitation?  
Reply: Bureau of Indian St andards under its laboratory recognition scheme (BIS LRS) grants 
recognition to laboratories for testing of products as per the relevant Indian Standards for the 
purpose of conformity assessment schemes of BIS. It is a pre -condition that the laboratory des iring 
BIS recognition should have accreditation as per IS/ISO/IEC 17025 (latest implemented/concurrent 
version).  The accreditation body, through which the laboratory is accredited, shall be a full member 
of International Laboratory Accreditation  Co-operati on (ILAC) and/or Asia Pacific Accreditation  
Co-operation  (APAC)  or any other regional accreditation cooperation body . 
3.3.7    Intellectual property rights  
3.3.7.4 Trends in IPRs  
Page 109 ( para. 3.260)  
Since the last Review, the average time for the registration of a trademark has been reduced from 
14 months to  1 month.  
Question 5:  According to section 23 of the Trade Marks Act, a trademark can only be registered if 
the application is not opposed, the period of opposition has expired, or the opposition has been 
decided in favour of the applicant. Since the period for notice of oppos ition is "4 months " from the 
date of the advertisement or re -advertisement of an application for registration, Could India clarify 
on how the "average time for registration of a trademark " (the wording of the annual report referred 
in note 288 is: "the pen dency in examination of trademark applications ") is reduced to "1 month "? 
What is the definition of the "average time for registration of a trademark " mentioned here?  
Reply:  As per the Trade Mark Act, 1999, once an application for trademark registration is  filed, it is 
currently being examined within one month period (in comparison to up  to 14 months taken earlier). 
If no objection is found during examination, it is advertised to public, calling for their opposition, if 
any, to said application within 4 mon ths from date of such publication. If no objection is received, 
said trademark is registered within one month from date of expiry of opposition period or disposal 
of opposition so filed, subject to no compliances pending from the applicant.  
Question 6:  Could India clarify whether the grounds for refusal articulated in section 11(1) of the 
Trade Marks Act needs to be examined ex officio by the IPO during the procedure of trademark 
examination even if no opposition is filed?  
Reply:  Yes, Registrar is oblige d under the Act to examine the application and not register the mark 
even if no objection is received as per section 11 (1), subject to section 12 of the Act.  
3.3.7.5 IPR enforcement  
Page 111 ( para. 3.268)  
Currently, online intermediaries (e.g. Internet service providers, search engines, and e -commerce 
marketplaces) may claim safe -harbour protection under the Information Technology Act, 2000 
(Section 79), and the Copyright Act, 1957 (Section 52(1)). Under Section 79, online intermediaries 
are not  responsible for user -generated content, unless they have "actual knowledge" that IPR is 
infringed. In addition, for the safe -harbour provision to apply, online intermediaries must observe 
"due diligence" in the interest of rights holders. To this end, the y must comply with a series of WT/TPR/M/403/Add.1  
 
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  requirements, stipulated in the Information Technology (Intermediaries Guidelines) Rules, 2011. To 
further curb online piracy, in 2018, draft amendments to the 2011 Rules, which propose additional 
requirements (e.g. traceabili ty and proactive filtering of content), are under consideration . 
Question 7:  In case of infringement, does the internet intermediary need to meet the requirements 
of both Section 79 of the Information Technology Act and Section 52 of the Copyright Act to b e 
eligible for safe -harbour protection?  
Reply: As clarified  by the Delhi High Court, Section 79, of the Information Technology Act 2000, 
does not provide blanket immunity from liability to online intermediaries. Section 52(1) (b) and (c) 
of the Copyright A ct 1957, prescribes certain acts, such as transient or incidental storage of copyright 
content, or providing electronic links or access or integration by any person, if such person is not 
expressly prohibited by the copyright owner, it is not to be conside red as infringement. If, such 
person receives a complaint from the copyright owner conveying that such transient or incidental 
storage is an infringement, and that such person should refrain from facilitating such access within 
21 days of receiving such no tice, liability entails on the intermediary, only if such infringing content 
is still not removed. Reading the above, with the Intermediaries Guidelines Rules, 2011, Rule 
3(2)(d), entails that the intermediary shall inform the users of computer resource no t to host, 
display, upload, modify, publish, transmit, update or share any information that infringes any patent, 
trademark, copyright or other proprietary rights. Intermediaries are required to meet the 
requirement of section 79 of the IT Act to enjoy exe mption from liability.  
Question 8:  According to the draft of Intermediaries Guidelines (Amendment) Rules, the internet 
intermediary shall be traceable and adopt proactive filtering of content. What does "being traceable " 
and "proactive filtering of content " mean? Could you please provide fu rther explanations on the 
provisions?  
Reply:  The amendment Rules are still being finalised.  One of the clauses being considered is that 
significant social media intermediary shall make an endeavour to deploy technology -based 
measures, including automated t ools or other mechanisms to proactively identify information 
pertaining to online child sexual abuse material and extreme terror content. Similarly, traceability 
of first originator of information on messaging platforms pertaining to online child sexual ab use 
material and extreme terror content is being considered. Nevertheless, the amendments to the said 
Rules are yet to be finalized.  
Question 9:  What are the stakeholders ' views on the aforementioned amendment?  
Reply:  There had been divergent views. While some technology companies are contesting such 
provision, many other stakeholders feel that such provisions are necessary.  
Page s 111-112 ( para. 3.269)  
In order to tackle film piracy, in 2019, a bill to amend the Cinematographic Act, 1952, introduced 
penal provisions for unauthorized camcording and duplication of films; the bill is still under 
consideration.  
Question 10:  According to the Copyright Act, any person reproducing a copyright work without 
authorization should be held criminally liable. Why did India propose the Cinematograph Act 
(Amendment) Bill, to include penal provisions for unauthorized camcording and duplication of films? 
Please provide details on the current problem of camcording.  
Reply:  The said amendment is proposed to check piracy, particularly the release of pirated versions 
of cinematographic films which causes huge losses to the film industry and the exchequer. The bill 
proposes to make such offences punishable.  
Page 112 ( para. 3.270)  
State -level measures to promote IPR enforcemen t over the review period included the creation of 
India's first anti -piracy police unit in the state of Telangana (2016) and of a Cyber Digital Crime Unit 
(MCDCU) in the state of Maharashtra (2017). In 2019, around 250 rogue websites were closed by WT/TPR/M/403/Add.1  
 
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  the sta te digital crime units; and another 230 by the CIPAM in collaboration with the National 
Internet Exchange of India (NIXI) that manages the registration and operation of ".in" domain  
Question 11:  According to the Secretariat 's report, 250 and 230 rogue websites were closed by 
different authorities in 2019. Please provide details on what "closing " these websites mean? Did the 
authorities shut down entire websites, or do they only block access from India?  
Reply:  Many of the rogu e websites (hosting copyrighted content) do not provide their correct KYC 
credentials as mandated by the terms and conditions of their agreement with the Registrar (also 
known as WHOIS information). The Registrar in such cases can suspend the website after  providing 
an opportunity of hearing to the Registrant. These websites were shut down by NIXI, which is a not 
for profit company that manages .IN registry and .in domain name. So, it can remove .in registry 
and .in domain names only. Government issues noti fication/ instructions to Internet Service 
Providers for blocking the defendant websites (called as rogue websites).  
Question 12:  Please explain in more detail as to what measures were used to close those 
sites? What are the legal basis for those measures?  
Reply:  Depending on the offence, the government may decide on blocking/closing the sites by 
drawing power from the relevant acts.  
4. Trade policies by sector  
4.2 Energy  
Page 11 ( para. 24) 
India continues to maintain price controls, especially for agricultural products under various 
mechanisms. Retail prices of other products, such as LPG cylinders, natural gas, fertilizer, and drugs, 
are also controlled. Price controls are in place mainly to support the agricultural sector, ensure food 
security, an d reduce poverty . 
Question 13:  Could the Indian side elaborate on how it operates its retail pricing mechanism for 
LPG cylinders and natural gas while complying with WTO obligations?   
Reply:  LPG Price:  Under the Direct Benefit Transfer for LPG consumer (DBTL) - PAHAL scheme, a 
mechanism  has been formulated to insulate the domestic users of cooking LPG from steep 
fluctuations in International prices. The protection is only applicable for use of LPG as a cooking fuel. 
LPG for industrial or commercial use is not covered under this scheme, a nd the prices of commercial/ 
industrial use LPG are market linked.  
Gas Price:  As per the 'The New Domestic Natural Gas Pricing Guidelines, 2014 ' the Domestic gas 
price is notified by Petroleum Planning & Analysis Cell (PPAC) bi -annually based upon weighted  
average hub prices of Henry Hub, Alberta, NBP and Russia. This price is applicable uniformly across 
India for gas allocated by Ministry of Petroleum and Natural Gas.  
Page 130 ( para. 4.58)  
FDI in India's electricity sector is allowed up to 100%. No government approval is required, except 
for FDI above 49% in power trading exchanges. Electricity generation from nuclear sources is 
reserved for the State. Foreign companies must be established in India to operate in the sector.  
Question 14:  Taking into c onsideration market access principles, are there any specific forms of 
restrictions or requirements for foreign companies operating in the electricity sector?  
Reply:  As per the extant FDI Policy, FDI up  to 49% is permitted under the Automatic route in Powe r 
Exchanges registered under the Central Electricity Regulatory Commission (Power Market) 
Regulations, 2010, subject to:  
i. No non -resident investor/ entity, including persons acting in concert, will hold more 
than 5% of the equity in these companies; and   WT/TPR/M/403/Add.1  
 
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  ii. The foreign investment would be in compliance with SEBI Regulations; other applicable 
laws/regulations; security and other conditionalities.  
PART I: QUESTIONS REGARDING THE GOVERNMENT REPORT  
Government Report - India (G403)  
3.1.4 Government e -marketplace  
Page 11 ( para. 3.4) 
"Government e -Marketplace (GeM -SPV) was set up as the National Public Procurement Portal on 
17th May 2017.12 Incorporated as a 100% Government owned Company for providing procurement 
of goods and services by Central and State Government organisations, GeM provides an open 
inclusive platform for the vendors. " 
Question 15: In June 2010, India officially became an observer of the WTO Government 
Procurement Agreement (GPA). Does India plan to become a full member of the WTO GPA?  
Reply: There are no such plans as of now. India is closely observing the developments under WTO 
GPA. 
3.1.8 Skill Development  
Page 12 (para. 2)  
3.8. India is one of the youngest nations in the world. To meet the challenge of skilling the young 
population, the Ministry of Skill Development and Entrepreneurship (earlier Department) was set up 
in November 2014 to drive the 'Skill India ' agenda in a 'Mission Mode '. This seeks to converge 
existing skill training initiatives and combine scale and quality of skilling efforts, with speed. Pradhan 
Mantri Kaushal Vikas Yojana (PMKVY) is the flagship scheme of the Ministry of Skill Development & 
Entrepreneurs hip (MSDE) implemented by National Skill Development Corporation. The National Skill 
Development Mission was launched on 15th July 2015 on the occasion of World Youth Skills Day to 
achieve the vision of 'Skilled India '. It seeks to provide the institutiona l capacity to train a minimum 
of 300 million skilled people by the year 2022. As on 17 January 2020, 4.03 million candidates have 
been trained under Short Term Training (STT) courses. Out of these certified candidates, 1.6  million 
candidates have been prov ided with placement opportunities.  
Question 16: The trend for digital technology development and application will significantly change 
future work patterns and affect youth employment. How will the "Pradhan Mantri Kaushal Vikas 
Yojana (PMKVY) " mentioned in  the report help train young people in skills relevant to future models 
of work that encompass high digital content? Also, how will the Indian government promote relevant 
employment opportunities to young people? Please elaborate on the contents of PMKVY  
Reply: Government of India has been proactively responding to the changing pattern of work and 
employment through various initiatives which include current and planned interventions under the 
PMKVY. The programme is structured as a demand driven programme, wherein the nature of training 
to be done under the programme is driven by the industry. Thus, the industry 's assessment on the 
nature of job roles required in future is factored in while designing such trainings and building up 
the skilled manp ower. Course from the Information Technology & related sectors constitute 
considerable chunk of the content being offered for e .g. Big Data, Cyber Security, etc. The elaborate 
contents of the PMKVY may be perused at www.pmkvyofficial.org . 
Other Questions  
Question 17:  India has released the fifth draft of the Chemical (Management and Safety) Rules 
(CMSR). The CMSR will require registration for all substances, substances in mixture, substance in 
articles and intermediates that are manufactured, imported, or placed in In dia of a volume greater 
than 1 ton per year. Does the Indian government have a timeline for notifying the WTO and 
implementing these rules?  
Reply: The draft is under discussion and has not been placed in the public domain yet. Once the 
draft is ready, it w ill be notified to WTO.  
  WT/TPR/M/403/Add.1  
 
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  UKRAINE  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT (WT/TPR/S/403)  
2 TRADE AND INVESTMENT REGIMES  
2.3 Trade Agreements and Arrangements  
2.3.3 Other agreements and arrangements  
Page 38 ( para. 2.28)  
Under the Report, "Bilateral investment promotion and protection agreements are currently in force 
with 10 countries and regions (72 at the time of the last Review). India also signed bilateral 
investment treaties with 3 countries (at the time of the last Review, 14 had been signed but were 
not in force) ". 
Question 1:  Ukraine would appreciate if India could specify countries with which India has signed 
bilateral investment promotion and protection agreements/bilateral investment treaties.  
Reply: India has signed Bilateral Investment Treaties with Belarus, Kyrgyzstan, and Brazil, along 
with Bilateral Investment Agreement between India Taipei Association (ITA) and Taipei Economic 
and Culture Center (TECC), as per the Model BIT 2015. Further, Bilateral Inv estment Treaties with 
following countries, signed earlier, are in force:  
Bangladesh, Colombia, Libya, Senegal, Sudan, Latvia, Lithuania, United Arab Emirates, and Bahrain.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.3 Tariffs  
3.1.3.1 Applied tariffs   
Page 48 (para. 3.27)  
Under the Report, in 2020/21 the average protection for both agricultural and non -agricultural 
products (WTO definition) increased. Average applied tariff for agricultural goods increased from 
34.8% to 36.5%, mainly due to the increase in the tariffs on oil seeds, fats, oil and their products 
which increased from to 26.7% to 35.1%, and that accorded to sugars and confectionary that 
increased from 35.4% to 47.0%.  
Question 2:  Does the increase in the tariffs on oil seeds, fats, oil and their products from to 26.7% 
to 35.1% mean that the import tariffs for sunflower oil have changed? How did it impact geographical 
structure and physical volume of India`s import of sunflower oil?  
Reply: No tariff cha nges have been made in respect of sunflower oil during 2020 -21. During 2020 -21 
(Apr-Nov), India has already imported 1.4 MMT of sunflower oil.  
Question 3:  Considering the reduction of the import duty on crude palm oil (from 37.5% to 27.5% 
in November 2020) , would India share its view, what impact it will have on the level of domestic 
demand for other types of oils and on the volume of their imports, in particular sunflower oil?  
Reply: The measure is a recently taken measure and its impact on domestic demand  of other types 
of oils and on the volume is still being analy sed. During 2020 -21 (Apr -Nov), India has already 
imported 1.4 MMT of sunflower oil.  
Question 4:  Could India kindly explain the reasons behind the increase in tariffs on sugar and 
confectionary f rom 35.4% to 47.0%?  
Reply: Changes in tariffs are made after due deliberations taking into account domestic market 
situations. These are well within India's bound tariff commitments at the WTO.  WT/TPR/M/403/Add.1  
 
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  3.1.5 Import prohibitions, restrictions, and licensing  
3.1.5.1 Import prohibitions  
Page 55 ( para. 3.54)  
The Report notes, that India applies import prohibitions mainly on health and safety grounds, and 
these continue to apply to products such as meat and offal from wild animals, tallow fat, animal 
rennet, and unprocessed ivory (the list of products is presen ted in Table 3.8).  
Question 5:  Could India, please, explain the rationale for prohibiting the imports of poultry fat, 
margarine of animal origin?  
Reply: These products are "Prohibited" in terms of Principles of restrictions related to protection of 
human , animal or plant life and health.  
Question 6:  Would India also clarify whether same requirements (concerning prohibition) apply on 
domestic production?  
Reply: These prohibitions are to protect domestic health and safety. Certain products such as 
articles of apparel and clothing accessories of wild animals and other articles of furskin are covered 
under the Wildlife Protection Act, 1972 *. Prohibitions,  like ban on trading in ivory, as well as coral, 
musk, and other products from protected or endangered spec ies, as declared under Wildlife 
Protection Act, 1972,  are in place  at the domestic level  to protect human, animal, or plant life and 
health.  
*Prohibition on imports of certain products and the reasons thereof are:  
i. Import of Wild Animals (including their Parts and Products) as defined in the Wild Life 
(Protection) Act, 1972 is "Prohibited"  
ii. Animal fats under Chapter 15 of ITC (HS) is "Prohibited" in terms of Principles of 
restrictions related to protection of human, animal or plant life  and health.  
Page 57 ( para. 3.55)  
The Report states, that imports of certain goods (48 tariff lines at the HS eight -digit level) are subject 
to import prohibitions depending upon their import price (Table 3.9). These imports are prohibited 
or restricted wh en the c.i.f. price is lower than the minimum import price (MIP). According to the 
authorities, MIPs are imposed to protect the domestic growers/farmers and their livelihood. Line 
ministries decide which products should be subject to MIPs.  
Question 7:  Could India clarify whether and how such minimum import price complies with the 
WTO Customs Valuation Agreement?  
Reply: The customs value of all the products imported into India, including for which interventions 
are prescribed, are  determined according to Se ction 14 of the Customs Act, 1962 and the relevant 
provisions of the  Customs Valuation (Determination of Value of Imported Goods) Rules, 2007. Both 
the Customs Act, 1962 and  the Customs Valuation (Determination of Value of Imported Goods) 
Rules, 2007 are b ased on the provisions of the Customs Valuation Agreement of the WTO.  
Question 8:  Would India explain its practices to use minimum prices for products listed in Table  3.9? 
Reply: Import of most of the agricultural items is free. Interventions  are required for some  products 
based on various factors including cost of production, overall demand supply situation in the 
domestic and world markets, domestic and international prices, etc. Moreover, these measures are 
temporary in n ature and are reviewed regularly.  WT/TPR/M/403/Add.1  
 
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  3.1.5.2 Import licensing and restrictions  
Page 59 ( para. 3.57)  
According to the Report, the Directorate General of Foreign Trade (DGFT) may refuse to grant an 
import licence, inter alia , if the applicant has contravened a ny law. In addition, import licences of 
specified goods, services or technology may be suspended or cancelled without giving prior notice 
to the licence holder.  
Question 9:  Could India, please, clarify how the DGFT identifies contraventions of any law? Ple ase, 
explain in what cases the licen ce is suspended.  
Reply: The Foreign Trade (Development & Regulation) Act, 1992 as amended provides that no 
export or import shall be made by any person except in accordance with the provisions of this Act, 
the rules and orders made thereunder and the foreign trade policy for the time being in force. 
Wherever the importer fails to comply with the stipulations, there is a contravention of the condition 
imposed on the licen ce, the licen ce is liable for suspension under S ection 9 of Foreign Trade 
(Development & Regulation) Act, 1992, after providing a reasonable opportunity of being heard and 
passing a written cancellation or suspension order in terms of the FT(DR) Act and processes 
thereunder. These documents are availabl e in the public domain and can be accessed at 
https://www.dgft.gov.in/CP/ . 
Question 10:  What specific goods would be affected by such a suspension?  
Reply: Any item where and for which import licen ce is required can be suspended as per provisions 
of Foreign Trade (Development & Regulation) Act, 1992.  
Page 59 ( para. 3.58)  
The Report states, that some licences are subject to an actual -user condition, which means that the 
imported product cannot be sold in the domestic market, and it must be used for a specific reason. 
A list of items that are granted licences with actual -user conditions does not exist.  
Question 11:  Would India, please, explain why supplementary condition in addition to the import 
licences is required?  
Reply: The actual user condition while granting import licen ce is required so that restricted items, 
being imported, are used by the importer for a manufacturing process only, and not 
diverted/misused.  
Question 12:  Could India kindly inform in  what cases an actual -user condition applies?  
Reply: In general, actual -user condition applies in all cases of the authorization for the restricted 
items.  
Details of products requiring import authorization and subjected to actual user condition may be 
found from the Import, Export and SCOMET Policy available at:  
https://www.dgft.gov.in/CP/?opt=itchs -import -export . 
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture  
4.1.1 Measures affecting imports  
Page 118 ( para. 4.7) 
According to the Report, India implemented a TRQ of 300,000 metric tonnes (MT) for raw sugar 
(HS1701), at an in -quota rate of 25%, as a unilateral market access trade facilitation measure.  
Question 13:  Could India kindly provid e information on the TRQ fill rate for raw sugar for the last 
three years?  WT/TPR/M/403/Add.1  
 
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  Reply: Import under TRQ and TRQ Fill Rate for Raw Sugar for three years 2017 -18, 2018 -19 and 
2019-20 is as follows: -  
Total Import (in MT): 130347 (43.4%) (2017 -18); 3 (0%) (2018 -19) and 0.01 (0%) (2019 -20). 
4.4 Services  
4.4.1 Financial services  
4.4.1 .1 Banking  
Page  136 (para. 4.81) 
The Report presents information on structure of the financial sector of India. It informs, that the 
banking sector consists of 12 public sector banks (PSBs), 22 private sector banks, 46 foreign banks, 
45 regional rural banks (RRBs), and 1,541 urban banks a nd 397 rural cooperative banks. There is 
also a large number of non -banking financial institutions (NBFCs).  
Question 14:  Could India, please, describe features of regulations and requirements, and functions 
of state authorities regarding activity of the f ollowing financial institutions:  
- pawn  shops;  
- leasing (financial leasing) and factoring companies;  
- credit unions;  
- microfinance companies?  
Reply:  Different States have their separate Acts and Rules for pawnbrokers.  
The Reserve Bank of India (RBI) issues dire ctions/regulations for entities undertaking factoring, 
including those for capital requirements, income recognition, asset classification and provisioning, 
concentration norms, conduct of business regulations etc. under the Factoring Regulation Act, 2011. 
Amendments to the Act have been recently proposed through an Amendment Bill to allow more 
entities to undertake factoring.  
Co-operative Banks (public deposit - accepting credit unions) in India are licensed and regulated by 
RBI under the provisions of the Banking Regulation Act, 1949 and other applicable Acts. The 
regulatory framework includes prudential regulation as well as conduct regulation, with the main 
objective of protection of depositors ' interests. Various state authorities, unde r the relevant 
Co-operative Societies laws, too, have regulatory jurisdiction over them with regard to aspects other 
than those directly related to banking business, such as their registration, management, etc.  
RBI registers and regulates micro -finance ent ities as NBFC -Micro Finance Institutions  (NBFC -MFIs), 
provided they are registered as companies under the Companies Act and meet the minimum net 
owned fund requirements specified by RBI.  The regulatory framework for NBFC -MFIs also covers 
criteria for  qualifying assets, prudential regulations including capital adequacy and provisioning 
norms, guidelines on pricing of credit, transparency in interest rates,  measures to prevent 
over-indebtedness and  grievance redressal mechanism.  
Question 15:  Ukraine would als o appreciate if India could describe its legislation on protection of 
financial service consumers ' rights. What are State control functions regarding this issue?  
Reply: The provisions on protection of financial service consumers ' rights are laid down in the Acts 
that empower the sectoral regulators. Regulated entities undertaking financial services are subject 
to regulations issued by their respective regulators concerning the conduct of business, containing 
directions on fair pra ctices, customer education, protection of customer rights and redressal 
mechanism for addressing grievances. For example, some relevant guidelines and directions issued 
by RBI for banks, NBFCs and payment systems include the Charter of Customer Rights, the  Banking 
Ombudsman Scheme, 2006, the Ombudsman Scheme for Non -Banking Financial Companies, 2018, 
the Ombudsman Scheme for Digital Transactions, 2019, a Circular on Limiting Liability of Customers 
in Unauthorised Electronic Banking Transactions, Circular on  Harmonization of Turn Around Time 
and customer compensation for failed transactions using authorised Payment Systems and Online 
Dispute Resolution System for Digital Payments. Other than the above, regulators and industry WT/TPR/M/403/Add.1  
 
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  bodies also undertake activities to enhance public awareness through publicity campaigns via 
multiple channels.  
Question 16:  Would India, please, elaborate on the role of the public registry and private loan 
bureaus in the credit information sharing system?  
Reply: Credit information is sh ared by Regulated Entities on periodical basis with the Credit 
Information Companies registered under Credit Information Companies (Regulation) Act, 2005.The 
Public Credit Registry (PCR) project in India is at development stage.  
Question 17:  Is the licensi ng of private loan bureaus mandatory?  
Reply: Yes. No entity can undertake such financial activities unless they are in compliance with the 
Reserve Bank of India Act, 1934, Banking Regulation Act, 1949, National Housing Bank Act, 1987, 
the Factoring Regulat ion Act, 2011, or other relevant statutes, and are duly registered and 
authorized by RBI under the respective Act and RBI 's Regulations.  
Question 18:  What is the current situation with crowdfunding and what are its prospects in the 
country?  
Reply: As far a s Peer -to-Peer (P2P) lending is concerned, which is a form of crowd -funding used to 
raise loans through online platforms that match lenders with borrowers in order to provide loans, 
RBI has vide Notification No. DNBR.045/CGM (CDS) -2017 dated 24.08.2017 spe cified that any 
company that carries on the business of a P2P Platform will be designated an NBFC under Section  45 
of the RBI Act, 1934, enabling RBI to regulate this heretofore unregulated business . RBI has issued 
Master Directions on Non -Banking Financial Company – Peer to Peer Lending Platform (Reserve 
Bank) Directions (amended from time to time). Inter alia , the Directions specify details of the 
regulatory and supervisory structure put in place by RBI, such as capital requirements, prudential 
norms, IT related requirements, permitted transactions, due diligence requirements etc. Further, to 
protect investor rights and mitigate risks, the Directions specify that the aggregate exposure of a 
lender to all borrowers at any point of time, across all P2P platforms, shall be subject to a cap 
(specified therein) provided that such investments of the lenders on P2P platforms are consistent 
with their net -worth. Lenders investing more than a certain sum across  P2P platforms also have to 
produce a certificate to P2P platforms from a practicing Chartered Accountant certifying minimum 
net-worth. All lenders also have to submit a declaration to P2P platforms that they have understood 
all the risks associated with l ending transactions. For further information, the Directions can be 
accessed at :  
https://www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=11137 . 
Question 19:  What is the legal regulation of loan crowdfunding?  
Reply: Same as Reply for Question 18 above.  
Question 20:  How are the rights of the investors of crowdfunding platforms protected?  
Reply: Same as Reply for Question 18 above.  
Question 21:  What are the requirements for crowdfunding agreements?  
Reply: Same as Reply for Question 18 above.  
Question 22:  What are the ways to mitigate risk when making investments through crowdfunding 
platforms?  
Reply: Same as Reply for Question 18 above.  
Question 23:  What are the limitations for investors that use crowdfunding platforms?  
Reply: Same as Reply for Question 18 above.  WT/TPR/M/403/Add.1  
 
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  4.4.1.2 Insurance  
Pages  141-142 ( paras.  4.100 -4.107)  
The Report describes the regulatory developments in legal and institutional framework for  the 
insurance sector of India that have occurred during the period under review.  
Question 24:  Could India, please, inform on legal regulation of life and nonlife insurance activities 
(with references to English translations of legislation, if available)?  
Reply : The Insurance Act, 1938 is the principal Act governing the insurance sector in India. The 
Insurance Regulatory and Development Authority of India (IRDAI), a statutory body, formed under  
the Insurance Regulatory and Development Authority Act, 1999, is the regulator for the sector in 
India. These Acts empower IRDAI to frame regulations, which lay down the regulatory framework 
for supervision of entities operating in the sector. The latest versions of the above Acts (in English) 
can be accessed at  indiaco de.nic.in  or irdai.gov.in.  
Question 25:  What are legal requirements for life and nonlife insurance agreements (with 
references to English translations of legislation, if available)?  
Reply: The insurance policy document is the evidence of the contract betwe en the Insurer and the 
Policyholder. The proposal, declaration to the proposal, other statements and the premium received 
as consideration, form the basis of the contract. Insurers who offer policies are regulated and 
supervised by IRDAI. The IRDAI (Protec tion of Policyholders ' Interests) Regulations, 2017 specify 
the point of sale requirements, the proposal for Insurance, matters to be stated in insurance policies 
etc. Regulation 9 of the said regulations is for life insurance policies, whereas Regulation 11 and 12 
are for general insurance and health insurance policies. The IRDAI (Protection of Policyholders ' 
Interests) Regulations, 2017 can be accessed at  irdai.gov.in.  
Question 26:  What are state guarantees for the funds accumulated under life insurance 
agreements?  
Reply: Vide Section 37 of the Life Insurance Corporation Act, 1956, the sums assured by, and 
bonuses declared under all policies issued by the Life Insurance Corporation (LIC) of India, which is 
Government owned, are guaranteed by the Governmen t of India. No other guarantees are extended 
by the Government of India for life insurance policies.  
Question 27:  What are the requirements for providers of life and nonlife insurance services?  
Reply: The provisions governing registration of insurance comp anies are contained in the Insurance 
Regulatory and Development Authority of India (Registration of Indian Insurance Companies) 
Regulations, 2000.  The same can be accessed at  irdai.gov.in.  
Question 28:  What are life insurance and pension plans/programs (with reference to documents in 
English, if available)?  
Reply: The following product categories are offered by life insurers in India - 1) Term Insurance 
2) Endowment Insurance 3) Individual pension plans (Corpus accumulation) and 4) Annuities 
(payout). These products are offered both on Linked (Market Linked) as well as Non -linked 
structures. The Regulatory framework consists of Linked and Non -linked Insurance Product 
Regulations, 2019 which can be accesse d at irdai.gov.in.  
Page 141  (para. 4.102)  
The Report informs on a number of schemes, launched during the review period, including Atal 
Pension Yojana, for people in the informal sector who join the national pension system; and 
Ayushman Bharat Yojana, which provides medical insurance cover of up to INR 500,000.  
Question 29:  Would India, please, provide additional information on its pension and health/medical 
insurance systems: operational principles and specifics, organizational and legal struct ure of the 
systems, entities engaged in the systems, respective legislation, state guaranties?  WT/TPR/M/403/Add.1  
 
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  Reply: The Insurance Regulatory and Development Authority of India (IRDAI) is the regulator for 
the insurance sector in India.  The powers and functions of IRDAI are laid down in the IRDAI Act, 
1999 and Insurance Act, 1938.  In exercise of the powers conferred under the said Acts, IRDAI issued 
the Insurance Regulatory and Development of India (Health Insurance) Regulations, 2016 (HIR), 
applicable to all registered l ife insurers, general insurers and health Insurers conducting health 
Insurance business as defined in Insurance Act, 1938. For further details, the latest versions of the 
Acts and Regulations (in English) can be accessed at  indiacode.nic.in  or irdai.gov.in . The Pension 
Fund Regulatory and Development Authority of India (PFRDA), formed under the Pension Fund 
Regulatory and Development Authority Act, 2013, is the regulator for the pension sector in India.  
The latest version of the Act (in English) can be acce ssed at  indiacode.nic.in.  The Act empowers 
PFRDA to frame regulations, especially as regards the National Pension System (NPS) which is a 
pension scheme subscribed by employees of the Government of India, State Governments and 
various private institutions and organizations. Some individual pension plans and annuity products 
offered by insurance companies are also regulated by IRDAI.  As regards the Atal Pension Yojana, it 
is a guaranteed pension scheme of the Government of India being administered by PFRDA.  Launched 
in 2015, it is open to all Indian citizens in the age group of 18 to 40 years who have a savings bank 
account / post office savings bank account and the contributions differ, based on pension amount 
chosen.  
PART II: QUESTIONS REGARDING THE REPORT  BY INDIA (WT/TPR/G/403)  
2. ECONOMIC ENVIRONMENT  
2.1 Domestic Economy  
2.1.1 Recent growth record  
Page 5 ( para. 2.2) 
According to the Report the Agricultural and allied sectors of India grew at 4% in 2019 -20, as 
compar ed to the annual growth of 0.6 % in 2015 -16. Compared to the Agriculture sector, the 
Industry sector showed a more robust performance from 2015 -16 to 2018 -19. 
Question 30:  Would India, please, share its view on possible impact of provided support to its 
agricultural sector and farmers on such growth record? Please, also clarify available programmes to 
support farmers ' cooperation in agriculture.  
Reply: India is a Member with limited domestic support entitlements viz. de minimis in relation to 
large trade distorting subsidy entitlements in the form of FBT -AMS that are available to a  handful of 
WTO members. The support provided is facilitative in nature and aims at ensuring the food and 
livelihood security of the majority of the population dependent on agric ultural activities and facing 
inherent structural disadvantages arising out of small and fragmented land holdings, depletion in 
soil fertility, lack of access to markets and technology, low level of productivity etc. Details of 
available programmes to supp ort farmers' cooperation in agriculture can be accessed from the official 
website of the Department of Agriculture Cooperation and Farmers' Welfare of India.  
3 REFORMS: ECONOMIC POLICY AND OTHER INITIATIVES  
3.1 Economic Reforms and Better Delivery of Servi ces 
3.1.4 Government e -marketplace  
Page 1 1 (para. 3.4) 
The Report describes Government e -Marketplace (GeM -SPV), set up as the National Public 
Procurement Portal on 17th May 2017.  
Question 31:  Would India, please, describe more its experience of Government e-Marketplace 
creation?  
Reply: GeM has made significant strides towards the pursuit of its three fundamental pillars, i.e., 
inclusion, transparency and efficiency in public procurement since its launch in 9 August 2016. GeM 
has ushered in automation and digitization of processes enabled  by technology and analytics leading 
to higher process efficiencies, better information sharing, improved transparency, reduced process 
cycle time and higher level of trust among bidders, which in turn have resulted in greater competition 
and higher saving s. These innovations in GeM have brought down waiting times and prices for buyers 
significantly and has ensured timely payments to sellers. GeM provides an open inclusive platform WT/TPR/M/403/Add.1  
 
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  for all kinds of vendors (Original Equipment Manufacturers (OEMs, resellers,  and service providers) 
to register and list their products/services without any entry barriers. These aspects aided in 
developing a truly inclusive marketplace enabling big and small sellers to conduct business with the 
Government. There is no registratio n fee or listing fee in GeM. Central Government, State 
Governments and the Union Territories (UTs) are procuring through GeM due to immense 
advantages accruing in terms of ease of procurement through an open and transparent procurement 
platform.  
As on 18 December 2020, the platform has surpassed INR 748,960 million in cumulative transaction 
value with over 5.25 million transactions and has over 48,711 buyers, 0.9 million sellers and 
0.38 million MSEs registered on the portal. It has more than 11,535 produc t categories with 
1.8 million products and 175 service categories. The information on GeM may be accessed at 
https://gem.gov.in/ . An independent assessment of GeM conducted by the World Bank reported that 
GeM enabled an average savings of 9.75% on the median price.  
3.1.5 Make in India  
Page 11 ( para. 3.5) 
The Report mentions the "Make in India " initiative, launched in 2014, with the primary goal of making 
India a global manufacturing hub. This is sought to be achieved including through facilitating 
investment.  
Question 32:  Could India kindly provide more detailed information on the investment co mponent 
of the "Make in India " initiative (coordinating bodies/units and their main functions and 
responsibilities, digital/online platforms, the results of the initiative, successful examples etc.)?  
Reply: "Make in India' was launched on 25 September 2014 , to facilitate investment, foster 
innovation, building best in class infrastructure, and making India a hub for manufacturing, design, 
and innovation. Ministry of Commerce & Industry is the main coordinating Ministry in the 
Government for this initiative.  Investment outreach is being done through Ministries, State 
Governments and Indian Missions abroad, while Identification of potential investors, and their 
handholding/facilitation is done through Invest India. Recently, Government has taken various steps 
in addition to ongoing schemes to boost domestic investments in India. These include the National 
Infrastructure Pipeline, Reduction in Corporate Tax, easing liquidity problems of NBFCs and Banks, 
etc. An Empowered Group of Secretaries to the Government of  India, led by the Cabinet Secretary, 
has also been constituted to take decisions on cross cutting policy issues for facilitating and speeding 
up domestic and foreign investment. Simultaneously, Project Development Cells (PDC) for the 
development of invest ible projects have also been created in the different administrative ministries 
for expedited coordination between the Central Government and State Governments. These steps 
reinforce Government 's commitment towards promoting India as a favourable investmen t 
destination across the globe, along with improving ease of doing business for the investors.  
3.1.6 Digital India  
Page 1 1 (para. 3.6) 
The Report informs on Digital India, that is a flagship programme of the Government of India with 
a vision to transform India into a digitally empowered society and knowledge economy.  
Question 33:  Could India kindly provide more detailed information on the results of the Digital India 
Initiative and its influence on increase of the e -commerce since 2015?  
Reply: Digital India is a flagship programme of the Government of India with a vision to transform 
India into a digitally empowered society and knowledge economy. There are several transformational 
digital initiatives undertaken under the Digital India Initiative, namely, JAM (Jan Dhan Yojana, 
Aadhaar, Mobile), Direct Benefit Transfer (DBT), Common Services Centres (CSCs), Pradhan Mantri 
Gramin Digital Saksharta Abhiyan (PMGDISHA), e -National Agricultural Market (e -NAM), 
Government e -Marketplace (GeM), Digital Locke r, e-Sign, Digital Payments (BHIM, BHARAT -QR 
Code, PayGov, Public Finance Management System – PFMS), Open Data Platform, etc. These 
initiatives are able to ensure easy, effective and efficient governance & services to citizen. Digital 
India Initiative has spurred adoption of digital technologies, which is critical for promotion of 
e-commerce in India . More details may be seen at : https://www.digitalindia.gov.in/ .  WT/TPR/M/403/Add.1  
 
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  Question 34:  Considering that development of technologies in agriculture is one of the key 
challenges, would India, please, also inform whether any Government support of small and medium 
Agri producers is provided under mentioned programme and, if yes, what its features and 
achievement s in this sphere?  
Reply: Digital India is a flagship programme that covers multiple projects of various central 
Ministries/Departments & States/Union Territories (UT)  relating to various sectors. With respect to 
agriculture, some digital initiatives includ e implementation of the National Agricultural Market 
(e-NAM) scheme, wherein, regulated whole sale markets are integrated/linked through virtual 
platform to facilitate online trading of agriculture and horticulture commodities through transparent 
price dis covery for produce of farmers through competitive online bidding system, creation of a 
dedicated portal (www.Jaivikkheti.in) to encourage organic farming by directly connecting the 
farmers in the country to the consumers to get a better price for their pro ducts and launch of a 
mobile application,  Kisan Rath, to facilitate smooth transportation of agricultural produce during 
lockdown.  
5 TRADE AND INVESTMENT POLICIES  
5.1 FDI Policy  
Page 15 ( para.  5.7) 
According to the Report "… Government has done away with the erstwhile regulatory board, in order 
to simplify the approval process of foreign investment and to provide ease of doing business for the 
investors. Under the new regime, the process for granting FDI approvals has been simplified … ". 
Question 35:  Could India, please, clarify more on the current process for granting FDI approvals 
(responsible bodies/units, required documents, prohibited/permitted sectors for investments etc.)?  
Reply: Procedure for Processing the Applications Seeking Approval for For eign Investment has been 
mentioned in the Standard Operating Procedure (SOP) which can be accessed on Foreign Investment 
Facilitation Portal at https://fifp.gov.in/Forms/SOP.pdf . Competent Authorities for g ranting approval 
for foreign investments and the list of documents to be filed by the applicant are also mentioned in 
the SOP. Prohibited and permitted sectors for receiving FDI are mentioned in the Consolidated FDI 
Policy Circular 2020 which can be access ed at https://dipp.gov.in/ . 
5.2 Intellectual Property Rights (IPRs)  
Page 16 ( para.  5.9) 
According to the Report, in 2016 India issued its first National IPR Policy (NIPR Policy), as a vision 
document that lays the future roadmap of IPRs in India, to support the creation of a 
knowledge -driven economy to promote economic and social development.  
Question 36:  Could India inform how NIPR Policy is envisaged to be incorporated into India 's 
national development strategy?  
Reply: The NIPR Policy recognises the role of creativity and innovation in the development of India 
as a knowledge economy. The policy aims to build a dynamic and balanced IPR system in India 
which aids in  enhancing access  to healthcare, food security and environmental protection, among 
other sectors of vital social, economic and technological importance through transforming knowledge 
owned into knowledge shared. A significant focus is on providing benefits to all inventors , especially 
MSMEs, start -ups, women and grassroot innovators for protection and subsequent commerciali zation 
of their innovations as also supporting  capacity building in R&D. For building a knowledge -based 
economy, these measures would contribute positive ly towards the country 's development.  
Question 37:  Whether any assistance (technical and/or financial) has been sought and provided by 
the WIPO and/or other international organizations to help to formulate NIPR Policy in India?  
Reply: No assistance was sought/provided by WIPO or other international organizations to help in 
formulation of NIPR Policy.  WT/TPR/M/403/Add.1  
 
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  6 INDIA AND THE WTO: STRENTHGETHING MULTILATERAL SYSTEM  
6.5 Services  
Page 17 ( para.  6.9) 
The Report mentions that India has been playing a constructive role in services negotiations in the 
WTO. India has made efforts to reinvigorate the Work Program on Electronic Commerce with the 
belief that as the digital revolution is still unfolding, it is important to first understand the compl ex 
and multi -faceted dimensions of issues related to e -commerce. India has accordingly been a 
proponent of strengthening the multilateral work under the non -negotiating and exploratory work 
program on e -commerce.  
Question 38:  Could India share its vision o f the future development of activities within the Work 
Program on Electronic Commerce and, in particular, participation of India in it, as well as in the other 
WTO initiatives in this field like Joint statement initiative on e -commerce?  
Reply: India suppor ts re-invigorating the exploratory and non -negotiating multilateral mandate of 
the 1998 Work Program on E -Commerce at the WTO which requires members to comprehensively 
examine all trade -related issues relating to global E -Commerce, taking into account the economic, 
financial and development needs of developing countries. Adequate discussions on e -commerce have 
not taken place since the establishment of this Work Program. Work Program on E -Commerce needs 
to be a standing item in the relevant WTO bodies with members undertaking structured discussions 
to understand the implications of the rapidly evolving, complex and multi -faceted dimensions of 
issues related to e -commerce. These discussions should focus on developmental aspects of electronic 
commerce, examina tion of the challenges experienced by developing countries and LDCs in relation 
to e-commerce and exploring ways to address these challenges. India has been an active participant 
in the discussions under the Work Program on E -commerce. India and South Afri ca made a joint 
submission under the Work Program on E -Commerce titled, 'The E -Commerce Moratorium: Scope 
and its Impact ' in March 2020 and earlier in June 2019 and July 2018 on the  key issues associated 
with the e -commerce moratorium. India is of the view  that negotiation on rules in e -commerce would 
be premature at this stage especially given  the highly asymmetrical nature of the existing global 
e-commerce space. Binding rule on e -commerce at the WTO may have severe adverse consequences 
for future economi c prospects of developing countries and LDCs. India maintains that all countries 
are not at the same levels of digital development and developing countries and LDCs need to 
first focus on improving domestic physical and digital infrastructure, creating sup portive policy and 
regulatory frameworks and developing digital capabilities to bridge the digital divide and enable 
shared benefits of digitali zation. India is of the view that multilateral avenues, based on consensus, 
remain the most effective means to a chieve inclusive development -oriented outcomes. In so far as 
joint statement initiatives (JSIs) are concerned, provisions governing plurilateral agreements in the 
Marrakesh Agreement must be adhered to. Further,  JSIs should be without prejudice to the righ ts 
and obligations of non -participating Members in WTO Agreements.  
  WT/TPR/M/403/Add.1  
 
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  BRAZIL  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
3. TRADE POLICIES AND PRACTICES BY MEASURE  
Page 9 ( para. 113)  
The simple average applied MFN tariff increased from 13% in 2014/15 to 14.3% in 2020/21, and to 
15.4% if ad valorem  equivalents (AVEs) are considered. The increase in the average tariff reflects 
the changes in the distribution of tariff rates since the last Review in 2015, with a decrease in the 
percentage of lower -rate tariffs. (…) However, the percentage of tariff li nes that bear rates higher 
than 10% and up to 30% increased from 12.1% (2014/15) to 21.3% (2019/20) to 22.1% in 
2020/21, and those with rates above 30% rose from 2.8% (2014/15) to 4% in 2020/21. The most 
common tariff rates continue to be 10% (31.7% of all  tariff lines) and 7.5% (24.4%). The highest 
rates, above 60%, apply to products such as alcoholic beverages (150%), followed by animals and 
their products; fruit, vegetables and plants; coffee and tea; and certain motor vehicles, all with 
tariffs of 100%.  
There has been an increase in average applied tariff rates in India since the last review, as well as 
in the percentage of tariff rates higher than 10% and 30%.  
Question 1:  What is the total number and which tariff lines have been subject to tariff rate increases 
since the last review?  
Reply:  Information about India 's Tariff changes is available in the public domain and can be seen 
at https://www.cbic.gov.in/ . 
Question 2:  India has been reportedly on a liberalization track since the 1990s. What has been the 
policy motivation for the tariff hikes undertaken during the last five years? Is it possible to specify 
the legal instruments by which these hikes were enacted?  
Reply: Applied rates of customs duty in India are prescribed keeping in view the overall economic 
and other policy objectives which include enhancing domestic value addition, creating level playing 
field, ensuring availabili ty of raw materials at competitive prices, securing economic interests of the 
country, ensuring supply of essential items at affordable prices etc. and taking into account the 
international commitments such as that of WTO. The concerned legal instruments e nabling tariff 
changes are the Customs Act, 1962 the Customs Tariff Act, 1975 and notifications issued there 
under.  
Page 11 ( para. 27) 
In 2020, further marketing reforms took place to guarantee freedom to farmers to conduct intra - or 
inter-state trade, and  to encourage contract farming between farmers and agri -business.  
Question 3:  How are these agricultural reforms consistent with the implementation of the Minimum 
Support Price (MSP) for various commodities in India?  
Reply: The reforms will reduce the risk of market unpredictability for farmers and enable them to 
realize better pri ce for their produce, access modern technology, storage and better inputs. Farmers 
can engage in direct marketing thereby eliminating intermediaries, resulting in full realization of 
price. These will not have impact on implementation of MSP.  
Question 4:  Can you explain how the MSP is implemented in practice as well as its statutory and 
regulatory framework?  
Reply: Minimum Support Price (MSP) is announced by the Government following the 
recommendations of the Commission for Agricultural Costs and Prices (CA CP), which takes into 
account various factors including the cost of cultivation/production, changes in input prices, 
input/output price parity, inter -crop price parity, effects on the cost of living, effects on general price 
level, parity between prices pa id and prices received by farmers, etc. Farmers of all regions in the WT/TPR/M/403/Add.1  
 
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  country are eligible to receive MSP. The marketable surplus offered by the farmers that meet 
prescribed specifications is procured under MSP operations.  
Page 34 ( paras. 2.16–2.17)  
2.16.  "To achieve these export targets, India uses incentives such as the Merchandise Export from 
India Scheme (MEIS), the Services Export from India Scheme (SEIS), and credit facilitation, to 
encourage exports. The objectives of the MEIS and the SEIS under the FTP is to offset infrastructural 
inefficiencies and associated costs of exporters (Section 3.2.5.).10 On 1 September 2020, the 
Government announced that it would withdraw the MEIS from 1 January 2021.11 [...] 2.17.  "While 
the overall goal remains to increa se exports, since policymaking in India is largely focused on 
domestic issues, frequent use of trade policy is made to encourage domestic production and meet 
domestic inflation and supply objectives. Thus, changes are made as required to import and export 
restrictions and the tariff to ensure stable domestic supplies of key products. […] " 
Question 5:  Taking into account the prospect of termination of the "Merchandise Export from India 
Scheme " (MEIS), what legal and institutional arrangements are being put i n place to replace MEIS?  
Reply: No further details have been notified as yet.  
Question 6:  What are the main aspects, objectives and tools of the new policies to be put in place?  
Reply: As mentioned in reply to  question no. 5 above, no further details have been notified as yet.  
Page 55 ( para. 3.53)  
India continues to impose import prohibitions and restrictions. The DGFT may, through a notification, 
impose restrictions on imports (and exports) to: (i) protect human, animal or plant life or health; 
public morality; historical heritage; the environment; and intellectual property rights (IPRs); (ii)  
prevent the use of deceptive practices; the use of prison labour; and the traffic of arms, ammunition 
and implements of war; (iii) and to comply with United Nations Security Council resolutions.  
Question 7:  In light of the above -mentioned criteria, what i s the justification for measures such as 
the imposition of import prohibition on air conditioning units (DFGT Notification No.41/2015 -2020, 
dated 15 October 2020) and of import restriction on television units (DFGT Notification No.  22/2015 -
2020, dated 30 July 2020)?  
Reply: The policy measure on air conditioners was necessary for application of standards and 
regulations for marketing of the item, besides reducing risks to human, animal and plant life and 
health in light of India 's commitment to Montreal pro tocol. Further, as per the Ozone Depleting 
Substances (Regulation and Control) Amendment Rules, 2014, import of air conditioners containing 
Group VI substances (HCFCs) is prohibited since 1stJuly, 2015.  
The policy measure on certain television sets was und ertaken keeping in mind the quality issues. 
Moreover, these non -automatic licen ce requirements are administered in a manner consistent with 
the rules of the WTO Agreement on  Import Licensing Procedures.  
Page 57 ( para. 3.55)  
Imports of certain goods (48 tar iff lines at the HS eight -digit level) are subject to import prohibitions 
depending upon their import price (Table 3.9). These imports are prohibited or restricted when the 
c.i.f. price is lower than the minimum import price (MIP). According to the authori ties, MIPs are 
imposed to protect the domestic growers/farmers and their livelihood. Line ministries decide which 
products should be subject to MIPs.  
Some imports by India are restricted or prohibited as a result of MIPs.  
Question 8:  Can you specify which normative or regulatory instruments (by DGFT or others) 
establish such MIPs?  WT/TPR/M/403/Add.1  
 
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  Reply:  Import  of most of the items is free. Interventions are required for a few products based on 
various factors including cost of production, overall demand -supply situation in the domestic and 
world market, domestic and international prices, etc. Moreover, these me asures are temporary in 
nature and are reviewed regularly.  
Question 9:  How can this mechanism be deemed consistent with Articles II (3), and XI of GATT 
1994, as well as Article 7.2(f) of the Customs Valuation Agreement?  
Reply: Interventions  have been presc ribed for certain products based on various factors including 
cost of production, overall demand supply situation in the domestic and world market, domestic and 
international prices, et cetera. These measures are temporary in nature and are reviewed regula rly. 
The customs value of all the products imported into India, including  for which  interventions are 
prescribed, are  determined according to Section 14 of the Customs Act, 1962 and the relevant 
provisions of the  Customs Valuation (Determination of Value o f Imported Goods) Rules, 2007. Both 
the Customs Act, 1962 and  the Customs Valuation (Determination of Value of Imported Goods) 
Rules, 2007 are based on the provisions of the Customs Valuation Agreement of the WTO.  
Page 59 ( para. 3.56)  
To facilitate the imp ortation of restricted items, an import licensing system is in place. In 2019/20 , 
there were 440 tariff lines (3.7% of all tariff lines) subject to import licensing.  
Question 10:  Do all 440 tariff lines refer to products subject to non -automatic licen ces?  
Reply: Yes 
Question 11:  In what sense is the import licensing system deemed to "facilitate the importation of 
restricted items ", in light of the Agreement on Import Licensing Pr ocedures, Art. 3 (2) (3)?  
Reply:  The implementation of licensing procedures by India is transparent and predictable, and such 
licences are authorized for clearance, every month, by the EXIM Facilitation Committee. The 
procedure for issuance of such licen ce is as provided under para. 2.50 and para. 2.51 of the 
Handbook of Procedures, 2015 -2020, which is available at https://dgft.gov.in/CP/?opt=ft -
procedures . Import licensing measures taken by India are consistent with the Agreement on Import 
Licensing Procedures, including with respect to the timeframes for processing of import licen ce 
applications.  
Page 60 ( para. 3.61)  
India may impose quantitative restrictions if the Central Government, after  conducting an 
investigation, determines that goods are imported in such an increased quantity and under such 
conditions as to cause or threaten to cause serious injury to domestic industry. " 
Question 12:  Are these quantitative restrictions adopted and inv estigations conducted according to 
the Agreement on Safeguards, particularly Article 5(1)?  
Reply: Provisions of  India's Safeguard Measures (Quantitative Restrictions) Rules, 2012 
are consistent with Article 5(1) of the Agreement on Safeguards.  
Pages 61-63 (para.  3.68, Box 3.1 and para. 3.77) 
3.68. In May 2018, the Directorate General of Trade Remedies (DGTR), under the Department of 
Commerce, replaced the Directorate General of Anti -dumping and Allied Duties (DGAD) as the sole 
agency dealing with all trade remedies in India. The DGTR deals with anti -dumping, countervailing, 
and safeguard (both duty increases and quantitative restrictions) measures. Prior to the creation of 
the DGTR, the DGAD dealt with anti -dumping and countervailing cases; and the Dir ectorate General 
of Safeguards (DGS) and the Directorate General of Foreign Trade (DGFT) both dealt with 
safeguards.75 The DGTR is in charge of conducting anti -dumping, countervailing and safeguard 
investigations, and for making recommendations to the Mini ster of Finance regarding the imposition 
of any such measures.  WT/TPR/M/403/Add.1  
 
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  H. Final determination: Within one year of the date of initiation of the investigation, the Designated 
Authority determines if the article under investigation is being dumped and submits its f inal findings 
to the Central Government.  
I. Time -limit for an investigation process: The normal time allowed by the statute for the conclusion 
of an investigation and the submission of final findings is one year from the date of initiation of the 
investig ation. This period may be extended by 6 months.  
3.77. An anti -dumping duty remains in force for a period of five years from the date the duty is 
imposed, which is the date that the Department of Revenue issues the notification imposing the 
duty. However, t he duty may be reviewed at any time prior to the expiration of the period. Before 
the expiration of a measure, the Designated Authority may initiate a sunset review, on its own 
initiative or as a result of a request from an interested party. The anti -dumpi ng duty may continue 
to remain in force pending the outcome of such a review for a further period not exceeding one 
year.79 However, if the Central Government, in a review, is of the opinion that the cessation of the 
duty is likely to lead to continuation or recurrence of dumping and injury, it may, from time to time, 
extend the period of such imposition for a further period of five years starting from the date of order 
of the extension.  
Question 13:  It is understood that the investigation process in the DGTR must be concluded within 
18 months from the date of initiation of the investigation. Does the Department of Revenue also 
have to issue its notification imposing the anti -dumping duty within 18 months from the date of the 
initiation of the investig ation? Is there a maximum time -limit for this notification to be issued after 
the DGTR submits its final findings to the Central Government?  
Reply: No. The 18 -month timeline is only for completion of investigation by DGTR. The Department 
of Revenue may, wi thin three months of the date of publication of final findings by the designated 
authority under rule 17, impose by notification in the Official Gazette, upon importation into India 
of the article covered by the final finding, anti -dumping as determined un der rule 17.  
Page 72 (para. 3.109)  
India's Export Policy lists the export requirement for each export product. Products are classified as 
free, restricted, prohibited, or traded exclusively by STEs.  
Question 14:   In the early stages of the COVID -19 pandemi c, the Government of India imposed 
restrictions and prohibitions on the export of medicines, active pharmaceutical ingredients (APIs) 
and personal protection equipment (PPEs), a number of which have been liberalized over the 
following months. Can you summa rize which products in this domain, including tariff lines, remain 
subject to such restrictions and which are currently free to be exported?  
Reply: In the early stages of pandemic, India imposed restrictions to ensure equitable and judicious 
distribution of scarce products. It helped in avoiding buying of all available stocks by select group of 
nations. Subsequently, as the production capacity increased and availability was improved, India 
gradually lifted some of these restrictions. Products on which expo rt prohibitions/ restrictions in were 
imposed in the context of C OVID -19 and were subsequently were liberalised, thereby making them 
freely exportable:  
1. Medical Goggles: HS 9018  
2. Nitrile Gloves: HS 392690, 4015  
3. Personal Protection Equipment (Including masks, coveralls etc.): HS 901850, 901890, 9020, 
392690, 621790 and 630790  
4. 13 API and Formulations made from these APIs:  
HS 29222933, 29332910, 29332920, 29335990, 29362210, 29362500, 29362610, 29372300, 
29414000, 29419050, 29419090, 29420090 , 30042050, 30042061, 30042095, 30043919, 
30045032, 30045034, 30045039, 30045032, 30045034, 30045039, 30049015, 30049021,  
30049022, 30049023 and 30049099 . 
5. Hydroxychloroquine API and formulations: HS 29334900, 29333990,  29339900, 30049059, 
30049099 . WT/TPR/M/403/Add.1  
 
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  6. All types of Ventilators including artificial respiratory apparatus, oxygen therapy apparatus or any 
other breathing appliance: HS 901, 9019, 9020 . 
7. Sanitizers/Alcohol based hand Sanitizers: HS 3004, 3401, 3402 and 380894 . 
The export prohibition/restricti on in the context of COVID -19 have almost been withdrawn and are 
now limited to a few non -woven fabric and diagnostic kits and laboratory reagents. The notifications 
on all such products are publicly available and can be accessed at https://www.dgft.gov.in/CP/ .  
Page 72 (para. 3.109)  
The manufacture, import, research and release of GMOs, and of GMO products, are regulated by the 
Rules for Manufacture, Use, Import, Export and Storage of Hazardous Micro -Organisms, G enetically 
Engineered Organisms or Cells, 1989, under the Environment (Protection) Act, 1986 (…) The RCGM 
issues the clearance letters/import permits for GMOs; however, these must be authorized by the 
Genetic Engineering Approval Committee (GEAC). The RCGM  may also visit the sites where 
recombinant DNA projects are carried out, to ensure compliance with the Guidelines and SOPs. 
During 2015 -20 (June), India notified 155 new SPS measures to the Committee on SPS, most of 
which were related to food safety.  
Ques tion 15:  Recently, on 21 August 2020, the Food Safety and Standards Authority of India issued 
an Order requiring a "Non-GM (genetically modified) origin and GM free certificate " to accompany 
all imports of 24 listed food products to India, to become effective in 2021. Considering that there 
is no scientific evidence that GM products are unsafe or harmful, nor any international standard to 
support restrictions to GM products, how,  from the perspective of the Government of India, can this 
measure be deemed consistent with the scientific principle of the SPS Agreement, particularly 
Article  2(2)?  
Reply:  India has a robust mechanism and a well -established regulatory framework for appro val of 
GM products.  It may be noted that the Genetic Engineering Approval Committee (GEAC) is 
empowered under the Rules for the Manufacture/Use/Import/Export and Storage of Hazardous 
Microorganisms, Genetically Engineered Organisms or Cells, 1989 of the En vironment Protection Act 
(EPA) 1986 for approval of proposals relating to release of genetically engineered organisms and 
products into the en vironment. A thorough examination of health, environment, food and feed safety 
assessment studies is undertaken in  a systematic and scientific manner before a decision is arrived 
at, consistent with the WTO obligations.  The Committee has so far not approved any of the crop 
varieties of Genetically Modified/Engineered origin, listed in the above -mentioned Order. Furthe r, 
FSSAI has issued clarification regarding non -applicability of this requirement for import of processed 
food vide letter dated 12 October 2020.  
Page 104 (para. 3.245)  
Until 2017, 20% preference was granted to locally manufactured electronic products, whi ch qualified 
technically and complied with minimum value -addition requirements. In line with the Make in India 
initiative, under the National Digital Communications Policy, 2018, the procurement of local goods 
and services containing domestically owned IPR s is preferred.  
Question 16:   In the context of the programme "Make in India " and the vision of a "Self-Reliant 
India", the Indian government has adopted a wide framework of general and sector -specific policies, 
such as for electronics, relying on tax incentives, local content rules, tariff regulations, facilitated 
access to industrial infrastructure and, more recently, t he use of "Production Linked Incentives " 
(https://www.meity.gov.in/writereaddata/files/production_linked_incentive_scheme.pdf  and also 
https://pib.gov.in/PressReleasePage.aspx?PRID=1671912 ), which will provide payments to 
companies in proportion to their sales of products containing locally produced parts and components 
specifically stipula ted in the programme. The PLIs also have the objective of promoting exports. In 
this regard, what are the main features of these programs, especially with regard to local content 
and export performance requirements? How are they being designed in order to be compatible with 
WTO rules?  
Reply: The details may be seen at the https://www.meity.gov.in/esdm/pli . The incentives under the 
Scheme are neither contingent upon exports nor local content.  WT/TPR/M/403/Add.1  
 
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  Page s 116 (para.  4.4) and 121 ( para. 4.26)  
Frequent interventions are made, when necessary, including through import and export restrictions, 
and to ensure stability in supply and prices in the domestic market. (…) To ensure stable domestic 
production, input subsidies and  price support are also provided. […] 4.26 In September 2018, the 
Government launched an umbrella scheme, the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan 
(PM-AASHA), which is aimed at protecting farmer incomes through the Price Support Scheme (PSS) 
for pulses, oilseeds and copra and, through either the PSS or a "price deficiency payment" (under 
the Price Deficiency Payment System), for all oilseeds for which MSPs are notified. (…).  
Question 17:  Among the varied schemes in place for supporting and regulat ing agricultural 
production, particular crops such as pulses seem to receive more attention, in light of their 
importance as food staples. However, it is possible to argue that the imposition of policies such as 
import quotas with regards to pulses can als o cause unexpected shortages in the internal market. 
Does the government contemplate less trade restrictive policies while also ensuring availability of 
certain produce in the market?  
Reply: The measure has been imposed for food and livelihood security of small and marginal farmers 
in India. It has been imposed after due consultations and is being regularly reviewed in the light of 
domestic demand and supply situation.  
Page 117 (para. 4.15)  
To help sugar mills increase their earnings and pay sug arcane producers, exports are encouraged 
through indicative export quotas, and assistance is provided (Box 4.1). India has country -specific 
allocations under the MFN TRQs maintained by the United States and the European Union. Exporters 
are required to pro vide details of actual exports of sugar to the DGFT and the Agricultural and 
Processed Food Products Export Development Authority (APEDA). Quantitative  ceilings for sugar 
exports to the United States and the European Union are announced from time to time b y the DGFT.  
Question 18:  According to the Secretariat Report, exports of sugar are encouraged through 
indicative export quotas, and assistance is provided to help sugar mills increase their earnings and 
pay sugarcane producers. Some assistance programmes t o sugar mills use the fulfilment of export 
quotas as an eligibility criterion. Does India intend to issue export quotas for sugar, such as the 
Minimum Indicative Export Quotas and the Maximum Admissible Export Quantities, in future 
seasons?  
Reply: The Government has announced a Maximum Admissible Export Quota (MAEQ) of 
6 million  tonnes of sugar in the current sugar season 2020 -21 (October -September).  
Page 121 ( para.  4.29)  
Other challenges facing agriculture include a distortion of cropping patterns in favour of commodities 
procured by the central Government at the MSP (principally, wheat, rice, cotton and sugar) and 
away from other commodities, such as pulses, coarse grains and oilseeds; and a strain on water 
resources, especially in the states where mo st procurement takes place. The practice of procurement 
from certain states has also resulted in regional disparities in production. It is also suggested that, 
due to the fragmentation of agricultural markets and weak infrastructure, farmers receive only a  
fraction of the price paid by consumers, with the bulk going to intermediaries.  
Question 19:  Is said distortion of cropping patterns resulting from domestic support mechanisms 
a cause of concern for the Indian government and, if so, what measures are being envisaged to 
promote more market -based and balanced production patterns?  
Reply: India is a Member with limited domestic support entitlements viz. de minimis  in relation to 
large trade distorting subsidy entitlements in the form of FBT -AMS that are available to a handful of 
WTO members. The support provided is facilitative in nature and aims at e nsuring the food and 
livelihood security of the majority of the population dependent on agricultural activities and facing 
inherent structural disadvantages arising out of small and fragmented land holdings, depletion in 
soil fertility, lack of access to m arkets and technology, low level of productivity etc. Details of WT/TPR/M/403/Add.1  
 
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  available programmes to support farmers' cooperation in agriculture can be accessed from the official 
website of the Department of Agriculture Cooperation and Farmers' Welfare of India.  
Page 122 (Box 4.1)  
Question 20:  According to the Secretariat Report, sugarcane farmers in India are guaranteed a 
minimum price by the central Government through the "fair and remunerative prices ". In addition, 
individual states may also set advisory prices (SAP s) for sugarcane, which may be higher than the 
central Government's. Is it India 's intention to continue to offer market price support to sugarcane 
farmers by setting FRPs and SAPs in future sugar seasons? If so, does India foresee any increase or 
decrease in the mandatory minimum price set by the government?  
Reply: India does not provide domestic support to the sugar sector.  
Page 121 ( para.  4.29)  
The Make in India programme aims to encourage growth in a number of other sectors, notably 
electronics systems design and manufacturing; pharmaceuticals; and food processing.  
Question 21:  Given the objective of fostering greater domestic production in electronics and other 
sectors, as stated in para. 4.76, and, according to para. 2.17, the use of trade poli cy measures for 
advancing industrial policy objectives, is it to be expected that further import restrictions, 
prohibitions or tariff increases are to be adopted in support of the implementation of policies related 
to the priority manufacturing sectors inc luded in the "Make in India " programme?  
Reply: Policy making is an ongoing process and while framing policies to promote manufacturing, 
the WTO norms and regulations are adhered to.  
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
Page 11 ( para.  3.5) 
The 'Make in India ' initiative was launched in 2014, with the primary goal of making India a global 
manufacturing hub. This is sought to be achieved through facilitating investment, fostering 
innovation, enhancing skill development, and building best -in-class manufacturing infrastructure. 
This initiative has been reviewed afresh and is now focusing on 27 sectors [15 manufacturing sectors 
and 12 service sectors] under Make in India 2.0. " 
Question 22:  What are the incentives of the Make in India program – from both a general and a 
sectoral perspective - to encourage investment and manufacturing in India, including government 
outlays, tax exemptions, tax credits, local content and export provisions?  
Reply: "Make in India' was launched on 25 September 2014, to facilitate investment, foster 
innovation, building best in class infrastructure, and making India a hub for manufacturing, design, 
and innovation. Further details in this respect may be seen at https://www.makeinindia.com/home . 
PART III: OTHER QUESTIONS  
Requirement of Non -GM cum GM free certificate accompanied with imported food consignment -reg 
(FSSAI order)  
On 2 September 2020, India notified a measur e to the TBT Committee (G/TBT/N/IND/168) 
mandating a "non-GM (genetically modified) origin and GM free certificate " for certain agricultural 
imports with a proposed date for entry into force of 1 January  2021. This regulation applies to 
24 crops and requires official certification to attest that imported products are not genetically 
modified. Besides, certification mus t be issued for each cargo individually. The text of the regulation 
presents a template for the certificate to be issued by the competent authority of each country. The 
Indian regulation is expected to be particularly harmful to Brazilian exporters of appl es, cowpea 
beans, tobacco, sugar cane, and corn. Besides, the order establishes overly burdensome 
requirements for the so -called Competent National Authority, which would have to issue a certificate 
for every single consignment of the food products listed in the Annex.  WT/TPR/M/403/Add.1  
 
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  Question 23:  Does India plan to publish any regulatory impact assessment, risk analysis, or 
technical document that establishes a link between said regulation and the legitimate objectives it 
aims to safeguard?  
Reply: The implementation of sa id order has been deferred to 1 March 2021. The comments 
received from the member countries are being examined and detailed clarification/ explanatory note 
shall be released before its implementation.  
Question 24:  Could India please explain how said regula tion relates to any relevant international 
standards for food safety and GMOs, in accordance with the obligations set under Article 5.12 of the 
TBT Agreement?  
Reply: The Indian regulation has been prepared in line with its WTO obligations and is consistent  
with the provisions of TBT agreement.  
Question 25:  In light of the STCs raised both at the SPS and the TBT Committee and of the 
comments received under the notification G/TBT/N/IND/168, is India amenable to considering less 
trade -restrictive approaches to  address its legitimate health concerns?  
Reply: The implementation of said order has been deferred to 1 March 2021. The comments received 
from the member countries are being examined and detailed clarification/explanatory note shall be 
released before its  implementation for reference of member countries.  
  WT/TPR/M/403/Add.1  
 
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  COLOMBIA  
REPORT OF THE SECRETARIAT - DOCUMENT WT/TPR/S/403  
Summary  
With regard to item 19, Colombia would like to research incentives in the form of direct subsidies 
and price support programmes, tariff concessions or exemptions or preferential interest rates 
granted by the Government of India to support domestic production and exports.  
Question 1:  How would these be consistent with Article 5 of the WTO Subsidies Agreement?  
Reply:  The details of the schemes can be found in the official notifications. The question is very 
generic covering so many programmes. It may be difficult to respond what adverse effects under 
Article 5 of ASCM are being referred to.  
In item 10, Colombia would like to delve into the way minimum import prices are set.  
Question 2:  To what extent does this interfere with India's obligations under Article XI of the GATT?  
Reply: Import of most of the items is free. Interventions are required for a few products based on 
various factors including cost of production, overall demand -supply situation in the domestic and 
world market, domestic and international prices, etc. These measures are temporary in nature and 
are reviewed regularly.  
2.4 Investment regime  
2.4.3 Investmen t incentives  
Item 2.39. To promote FDI, the central government and state governments provide a number of 
incentives. In addition to the special economic zones and export -oriented units (EMEs), which remain 
in operation, India introduced the Make in India Programme in September 2014, aimed at investment 
in 25 sectors of the economy. National Investment and Manufacturing Areas (NIMZ), which are part 
of the National Manufacturing Policy, provide incentives for infrastructure development on the basis 
of public -private partnerships (PSPs) (section 4).  
In this regard we would like to consult:  
Question 3:  Are there some investment, job creation or other requirements for companies to access 
special economic zone incentives or export -oriented units (EOUs)?  
Reply: In case of EOU, investment criteria for setting up an EOU is stipulated under para. 6.06 of 
FTP. Besides, EOUs have to comply with other provisions of Chapter 6 of FTP. In case of SEZ, while 
there are no specific investment thresholds, the SEZ units have t o comply with provisions of SEZ 
Act, SEZ Rules.  
Item 2.42. Under the "Startup India" programme, launched in 2016, any start -up established after 
April 1, 2016 (and before April 1, 2021) may obtain, under section 80IAC of the Income Tax Act, a 
tax exemption  of 100% of profits earned during any three -year period in 7 years. The period has 
been extended from 3 to 10 years, and the turnover limit to benefit from the exemption was raised 
from INR 250 million to INR 1 billion in the 2020 -2021 Budget  
Question 4:  Is there any sectoral prioritization over the "Start -up" that apply to these tax benefits?  
Reply: There is no such sectoral prioritization. Benefits under Start -up India initiative are applicable 
to all Government recognised start -ups irrespective of secto rs. WT/TPR/M/403/Add.1  
 
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  3.3.4 Competition policy and price controls  
3.3.4.1 Competition policy  
Item 3.199 of numeral 3.3.4.1 Competition Policy states: "In general, the Competition Act applies 
to all economic operators (public and private, Indian and foreign) and to all sectors. Exceptions 
remain applicable to public entities operating in sectors related to atomic energy, defense and space, 
and coin minting. In addition, operators in the banking, maritime and oil and gas sectors remain 
exempt from the application of certa in provisions of the Act (Table 3.30). The regulatory body is 
also responsible for publishing sector -specific provisions, such as the Guidelines for Mergers and 
Acquisitions in the telecommunications sector. However, the JRC can intervene in all sectors, e ven 
if specific regulations exist."  
Question 5: What is the basis/reason for exceptions in the application of competition law, for 
banking operators and ship -sharing agreements?  
Reply: Section 54 (a) of the Competition Act, 2002 provides for such exemption  in the interest of 
security of the State or public interest. Certain cases in the banking sector and vessel sharing 
agreements (VSAs) of liner shipping industry for a specified period have been exempted from 
application of the provisions of the Competitio n Act, in public interest, accordingly.  
3.3.4.2 Price controls  
Item 3.220 of numeral 3.3.4.2 Price controls, it notes: "India continues to set maximum retail prices 
for preparations listed in the National List of Essential Medicines. The maximum retail pri ce is set 
under a market -based mechanism that takes into account the arithmetic average prices of brands 
representing more than 1% of total turnover. The retail price preparations not listed are monitored 
to ensure that prices do not rise by more than 10% from the highest retail price of the previous 
12 months. India also controls the retail price of new medicines."  
According to the item indicated, it is stated that India is pricing essential medicines, we would like 
to know:  
Question 6:  Has drug price con trol led to shortages of the same and in what proportion?  
Reply: No. On the contrary, the Drug price control framework has contributed to improved access 
to essential medicines through increased affordability.  
Question 7: How is the price of new drugs controlled?  
Reply: The price of a new drug as defined in the Drug Price Control Order (DPCO) is calculated as 
per the provisions of DPCO, 2013.  
Question 8: How much time do you take for health authorization and price definiti on? 
Reply: Drug Controller General of India gives market authorization under New Drugs and Clinical 
Trial Rules 2019 which specifies the time limit of 90 working days on submission of complete 
application to the Drug Controller General of India for New Dru g market authorization. Applications 
for drug pricing are received by online mode and disposed of in a time bound manner as per the 
provisions of the DPCO, 2013.  
3.3.7 Intellectual property rights  
3.3.7.5 Enforcement of IPRs  
Item 3.267. During the period  under review, a number of measures were taken to enforce IPRs. 
Awareness -raising campaigns were launched for specific audiences (e.g. customs officials, police 
officers, judicial officials, academics, students and start -ups) or related to specific areas ( e.g. 
geographical indications). In addition, a major campaign was launched against film piracy on social 
media. Capacity -building workshops were organized to Police officers and state judges. IPR units 
and innovation councils have been established at unive rsities and higher education institutions since 
2015 to create an enabling environment for IP awareness raising, generation and commercialization. 
CIPAM provides financial support to organize awareness workshops and seminars; in 2018/2019, WT/TPR/M/403/Add.1  
 
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  43.6 million con tributed to various awareness -raising initiatives. Counterfeiting and piracy are 
challenges that prevent India from further developing e -commerce; customers are therefore 
encouraged to denounce such practices. The draft National Policy on Electronic Commer ce, which 
continues to be the subject of consultations, sets out a number of measures to address counterfeiting 
and piracy.  
Question 9: Could you further report on the measures set out in the draft National E -Commerce 
Policy to tackle counterfeiting and pi racy?  
Reply: The draft policy is under consultation stage. However, with respect to tackling of 
counterfeiting, the Consumer Protection (e -commerce) Rules 2020, provide for liabilities on 
e-commerce entities and sellers, for sale of spurious goods/services. The said policy is still in drafting 
stage and is yet to be finalised.  
Question 10: Taking into account that online intermediaries must act within 36 hours to remove 
infringing works if the copyright holder reports an infringement. Could yo u report in more detail 
whether mechanisms are envisaged in the procedure to prevent the removal of works for unfounded 
allegations of infringement of intellectual property rights?  
Reply: Section 52(1) (b) and (c) of the Copyright Act 1957, prescribes cer tain acts, such as transient 
or incidental storage of copyright content, or providing electronic links or access or integration by 
any person, if such person is not expressly prohibited by the copyright owner, to not be considered 
as infringement. If the i ntermediary receives a complaint from the copyright owner, conveying that 
such transient or incidental storage is an infringement, then such person shall take measures to 
refrain from providing such access for a period of 21 days, within which the person c laiming the 
content as infringing has to get a refraining order from the competent court. If no such order is 
received, before the expiry of 21 days, the intermediary may continue to provide the facility of such 
access.  
3. TRADE POLICIES AND PRACTICES, BY MEASURES  
3.1.5.1 Import bans  
Item 3.55 states that "imports of certain products (48 tariff lines at the HS 8 -digit level) are subject 
to prohibitions based on their import price (Table 3.9). These imports are prohibited or restricted 
when the c.i.f. price is lower than the minimum import price. According to the authorities, minimum 
import prices are imposed in order to protect domestic growers/farmers and their livelihoods. 
Competent ministries decide which products should be subject to minimum import price s. 
Question 11: The WTO Customs Valuation Agreement does not permit the application of minimum 
import prices under any circumstances. How does India explain that this mechanism is used to 
protect domestic production of cashews and sandstone nuts, black and  green pepper and cardamom 
(21 tariff lines) and even to prohibit imports if CIF prices are lower than the minimum import price?  
Reply: Imports of most of the items are free. Interventions are required only for a few items. These 
are items considered sensitive predominantly on account of their price distortive effects in the 
market; or for ensuring import of quality products and maintaining safety standards.  All these items 
are assessed as per the provisions conforming with the WTO Customs V aluation Agreement .  
Question 12: Could India explain the extent to which these minimum import prices are consistent 
with Article 4 of the Agreement on Agriculture?  
Reply: Import of most agricultural items is free. These measures have been taken in exercis e of the 
General Exceptions under Article XX of the GATT and are reviewed regularly.  
Question 13: Could India explain how a minimum import price requirement is consistent with GATT 
Article XI?  
Reply: Import of most of the items is free. Interventions are required based on various factors 
including cost of production, overall demand -supply situation in the domestic and world market, 
domestic and international prices, etc. These measures are temporary in nature and are reviewed 
regularly.  WT/TPR/M/403/Add.1  
 
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  3.3.4.2 Price contr ols 
In Items 3.210 to 3.216, the Secretariat Report extensively develops the policies and programmes 
that, during the period of the seventh Review and in particular since 2016, India has been 
implementing to control the prices of different agricultural pro ducts.  
It is proposed that India "continues to control the price of some crops to ensure that farmers can 
sell at a minimum sustaining price (MSP) and purchase food for the public distribution system (SDA). 
In 2019, 24 crops were subject to MSP." "An addit ional payment (bonus), in addition to MSPs, may 
also be granted to encourage certain crops in certain years (e.g. oilseeds and legumes in 
2016/2017216); in 2019/2020 no bonus was paid."  
It is further mentioned that "farmers may sell to central and state bu ying agencies at minimum 
support prices, or on the open market when market prices are higher. If market prices fall below 
MSPs, states/territories can implement three programs: (i) the Price Support Program (PSS); (ii)  the 
Supplementary Price Drop Premiums  Program (PDPS); and (iii) the Private Sector Purchase and 
Storage Pilot Program (PPPS).  
Question 14: The three programmes described in the preceding paragraph are intended to ensure 
that farmers sell their products at minimum support prices. Application c onditions and coverage are 
changed annually and the last two programmes introduced in 2018/2018/2019 (PDPS and PPPS) are 
alternative in their use over PSS. In the PDPS, the Government grants farmers a cash transfer 
equivalent to the difference between the market price and the MSP.  
Since government intervention purchases at a guaranteed price ("market price support") are part of 
the Amber Box of the Agreement on Agriculture and are classified as trade -distorting, how is it 
understood that instead of decreasi ng PSS programmes, two new programmes have been 
strengthened and even implemented since 2018?  
Reply: The two new programmes launched under the umbrella scheme of PM -AASHA are Price 
Deficiency Payment Scheme (PDPS) and Pilot of Private Procurement and Stock ist Scheme (PPPS). 
This is a part of the reform measures being undertaken by the government for providing alternative 
schemes for certain crops.  
Question 15: How the above -mentioned programmes are compatible, as expressed by the 
Government of India, in par agraph 6.5 of Report WT/TPR/G/403, Section 6.2. WTO reform,  when it 
is proposed that "A good starting point for the reform agenda would be to eliminate imbalances in 
the Agreement on Agriculture (AoA) and ensure a level playing field, particularly for developing 
economies. As a long -time proponent of WTO reform, India has been calling for the elimination of 
authorized levels of trade -distorting aid and inequality for nearly 20 years.  
Reply: The measures referred are a part of reform pro cess being undertaken by the Government to 
provide alternative schemes for certain crops. Section 6.2 of the Government report seeks to address 
the asymmetries in the Agreement on Agriculture, most notably, the huge AMS entitlements of a 
few developed memb ers, which allows them to provide extremely high product specific support 
beyond the de minimis level. In certain instances, this exceeds the value of production of a concerned 
product.  
Question 16: Is India's commitment to the Reform of Agriculture, as se t out in Article 20 of the 
respective Agreement, firm, in particular, to the substantial reduction of trade -distorting domestic 
support programmes?  
Reply: India has been actively participating in the reform process in the spirit of Article 20 of the 
Agreem ent on Agriculture. India has submitted and co -sponsored several proposals regarding 
domestic support and other pillars of the AoA. Specifically, on domestic support, India has been 
demanding the elimination of FBT AMS entitlements as a first step to disci pline the trade -distorting 
support under the reform process of Article 20. India is of the view that the Doha mandate on 
agriculture, and the progress achieved in getting outcomes on Ministerial mandates such as PSH and 
SSM by MC12 negotiations would be an  important step in fulfilling the mandate contained in 
Article  20 of the AoA.  WT/TPR/M/403/Add.1  
 
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  4. TRADE POLICIES, BY SECTORS  
4.1.1 Measures affecting imports  
Paragraph 4.6 of the Secretariat's Report illustrates the MFN tariffs applied by the authorities, which, 
despite be ing announced in the Annual Budget, are amended from time to time to ensure the stability 
of domestic supplies and prices (case of the wheat import tariff that increased in April 2019 from 
30% to 40%, sugar tariffs gradually increased from 40% in April 201 5 to 50% in July 2017 and 
100% in February 2018.  
Question 17: Has the Indian Government made an assessment of the competitive effects of 
domestic agricultural production of changes in MFN tariffs, the implementation of other measures to 
regulate imports, such as product entry bans when CIF prices are below minimum import prices and 
state trade?  
Reply: Increase in tariffs for the products are well within the bound tariff rates at the WTO for India. 
Government interventions in the market are primarily for e nsuring food and livelihood security of 
India's small and marginal farmers.  
4.1.2 Measures affecting exports  
In paragraph 4.17, the Secretariat states that "on 5 March 2019, the Government announced a 
Transport and Marketing Assistance (TMA) program for certain agricultural products. The programme 
"aims to assist the international component of freight and marketi ng of agricultural products, which 
is likely to mitigate the disadvantage of a higher cost of transporting exports of certain agricultural 
products due to transshipment, and to promote trademark recognition of Indian agricultural products 
in specified fore ign markets".  
Question 18: Given the indefinite extension of the programme and its broad application to all 
products covered by HS Chapters 1 to 24, as well as marine and plantation products, with some 
exceptions, Colombia thanks India, indicates what kin d of measures it has taken and what 
assessments it has taken, to ensure that the TMA programme is consistent with paragraphs 10 
(commitment not to increase the level of use of export subsidies) and 11 Nairobi's decision that it 
has minimal trade -distorting  effect in other Members and does not displace or hinder its exports to 
the Indian market?  
Reply: The Nairobi Ministerial Decision on Export Competition allows developing countries to provide 
export subsidies under Article 9.4 of the Agreement on Agricultu re until the end of year 2023. 
Article  9.4 of the Agreement on Agriculture clearly states that during the implementation period, 
developing country Members shall not be required to undertake commitments in respect of the 
export subsidies listed in subparag raphs (d) and (e) of paragraph 9.1 of the Agreement on 
Agriculture. India's Transport and Marketing Assistance (TMA) scheme aims to provide assistance 
for the international component of freight and for the marketing of agricultural produce, and 
therefore, it is consistent with the Nairobi Ministerial Decision.  
4.1.3 Measures affecting production  
In paragraph 4.18, the Secretariat states that "the objective of India's agricultural policy is to ensure 
the stability of food prices and food security in the coun try" For this purpose, the government has 
taken a variety of measures, including food subsidies that account for nearly half of the 
Government's total explicit subsidies, subsidies for fertilizers, water and electricity.  
Question 19: Has the Indian govern ment considered rethinking the allocation of the above 
subsidies, taking as a reference recent studies showing the growth in the participation of these public 
subsidies within agricultural production and the decline in public investment in the sector?  
Reply: To support agriculture, the government has adopted a multi -pronged strategy including 
attracting private investment, strengthening extension services, addressing structural weaknesses, 
improving resource efficiency and productivity. Further, the Agr iculture Infrastructure Fund (AIF) 
has been announced in year 2020 by the government for catering to the financing needs of the 
sector for post harvest management infrastructure and community farming assets in order to 
improve agriculture infrastructure in  the country.  WT/TPR/M/403/Add.1  
 
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  4.1.3.2 Sustaining prices ( paras.  4.24-4.29 and Box 4.1 Sugar Support Programmes)  
India's domestic support programmes through price support and export subsidies to a number of 
agricultural products, and in particular sugar and their derivati ves, explained in detail in the 
Secretariat's Report, have been and continue to be of constant concern on the part of Colombia.  
As stated by the authorities, sugar production is structured primarily to meet domestic needs, and 
"equitable and remunerative" prices that guarantee a minimum price to producers are recommended 
by the Agricultural Cost and Price Commission (CACP).  
According to figures from the International Sugar Organization (IAO), India's share of the world 
market has increased since 2016 due to  increased production, generating significant surpluses that 
have increased the surplus with the consequent distorting effects on prices.  
This, coupled with price controls, supply regulation and financial support to processing plants made 
by the Governmen t, has created greater competitiveness for the refining industry, which, by selling 
its surpluses on the international market, is causing increasing distortions, seriously affecting other 
developing countries exporting sugar and derivatives (including etha nol) that are not price -fixing, 
as is the case in Colombia.  
Question 20: (i) Faced with this situation, Colombia wants to ask India whether it intends to 
suspend domestic support and export subsidy programmes, in order to restore a level playing field 
in the sugar sector and its derivatives.  
Reply: India does not provide domestic support to the sugar sector.  India's export subsidies are in 
compliance with Article 9.1(d) & (e) of AoA. According to  Nairobi Ministerial Decision on Export 
Competition (WT/MIN (15)/45).  
(ii) Can India elaborate on how it considers that the increase in the level of subsidy and the increase 
in the amount of sugar exports to be subsidized are in accordance with paragraphs 9, 10 and 11 of 
the Nairobi Ministerial Decision?  
Reply: According to the Nairobi Ministerial Decision on Export Competition (WT/MIN (15)/45), 
developing countries have the flexibility of providing marketing and transport costs under Articles 
9(d) and 9(e) of the AoA for agriculture exports unt il the end of 2023. India's support programmes 
are compatible with the provisions.  
(iii) How does India consider that the 2019/20 export programme complies with paragraph 10 of 
that decision, which states that Members will seek not to increase their export  subsidies beyond the 
average level of the last five years per product?  
Reply: According to the Nairobi Ministerial Decision on Export Competition (WT/MIN (15)/45), 
developing countries have the flexibility of covering marketing and transport costs under Articles 
9(d) and 9(e) of the AoA for agriculture exports until the end of 2023. India's support programmes 
are compatible with the provisions.  
Summary  
Item 9. "During the period under review, India implemented a number of measures to facilitate 
trade, suc h as reducing the number of documents required and automating the customs clearance 
system for imports and exports. Other trade facilitation initiatives that have been introduced since 
2015 are: the electronic interface, known as the Indian Electronic Cust oms Portal (ICEGATE); 
single -window interface for trade facilitation (SWIFT); the new Authorized Economic Operators 
Program (OAS); direct port delivery and direct port entry mechanisms, and increased use of the Risk 
Management System (SGR)".  
Question 21: With regard to this paragraph, the Government of Colombia wishes to know more 
about the efforts made by the Government of India to facilitate Trade in that country.  
Reply:  India has taken several measures to ease the trading environment. These measures ha ve 
been instrumental in a drastic reduction in time and costs compliances for exports and imports and WT/TPR/M/403/Add.1  
 
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  have been adequately reflected in the country 's ranking of 68 on the Trading Across Borders indicator 
in the World Bank 's Doing Business Report released i n 2019, showing a vast improvement from 
126 in 2015 . Some of the measures taken include, Implementation of 'India Customs Single Window ' 
to allow traders facility to lodge their clearance documents online at a single point , supported by the 
e-SANCHIT portal enabling  online uploading of supporting documents Online Goods Registration; 
PDF based clearance copy; Enabling digital copies of Bill  of Entry; reduction in proportion of 
consignments that need to be inspected on arrival by Introduction of the post clearance audit of 
consignments identified by the Risk Management System (RMS) ; Direct Port Delivery and Direct Port 
Entry, at the ports ; late fee for delayed presentation of Import declaration to encourage advance 
filing; Faceless and direct contact -free assessments; etc.  
In item 13. "The simple average applied MFN tariff increased from 13% in 2014/2015 to 14.3% in 
2020/2021, and to 15.4% whe n ad valorem equivalents (AVEs) are considered. The increase in the 
average tariff reflects changes in the distribution of tariff rates since the last Review in 2015, which 
have resulted in a decrease in the percentage of low -rate tariffs. As a result, whi le tariff rates 
continue to range from zero to 150% (considering only ad valorem rates), the percentage of tariff 
lines with rates between 0% and 10% decreased from 79.1% in 2015 to 67.8% in 2020/2021. 
However, the percentage of tariff lines that support r ates above 10% and up to 30% increased from 
12.1% (2014/2015) to 21.3% (2019/2020) and 22.1% in 2020/2021, and tariff lines with rates 
above 30% increased from 2.8% (2014/2015) to 4% in 2020/2021. The most common tariff rates 
remain 10% (31.7% of all tarif f lines) and 7.5% (24.4%). The highest rates, above 60%, apply to 
products such as alcoholic beverages (150%), followed by animals and their products; fruits, 
vegetables and plants; coffee and tea; and certain motor vehicles, all with tariffs of 100%"  
3.1.3.1. Applied tariffs  
In item 3.27. "Average protection for both agricultural and non -agricultural products (WTO 
definition) increased in 2020/2021. Average applied tariffs on agricultural products increased from 
34.8% to 36.5%, mainly due to the increase in tariffs on oilseeds and fats and oils and their products, 
which rose from 26.7% to 35.1%, and from which it taxes sugars and confectionery, which increased 
from 35.4% to 47.0%. For non -agricultural products, the average tariff increased slightl y from 
10.8% to 11.1%, mainly as a result of increased duties levied on leather, rubber, footwear and 
travel items, which rose from 12.8% to 15.4%."  
Question 22: On the basis of paragraphs 13 and 3.27, the Government of Colombia wishes to 
express concern a bout the high tariffs applied by the Government of India to imports of agricultural 
products, the increase in some cases since the previous Trade Policy Review and other import taxes 
such as the GST/IGST, which may be 5%, 12% or 28% additional, plus the 10 % social assistance 
surcharge that applies only to imported goods. All these charges actually become a restriction on 
trade.  
Reply: Applied rates of customs duty in India are prescribed keeping in view the overall economic 
and other policy objectives whic h include enhancing domestic value addition, creating level playing 
field, ensuring availability of raw materials at competitive prices, securing economic interests of the 
country, ensuring supply of essential items at affordable prices.  
Extensive delibera tions and inclusive policy making ensures that tariff changes are transparent and 
in accordance with the stated policy. India 's applied rates are consistent with its commitments under 
the WTO and are available in the public domain (at https://www.cbic.gov.in/ ). 
GST rates apply equally to imported and domestic supplies.  
Social Welfare Surcharge is levied like tariff ensuring that total tariff [applied MFN tariff and Social 
Welfare Surcharge] do not exceed India 's bind ing commitments.  
3.1.4 Other charges affecting imports  
In item 3.44. "The GST is a destination -based consumption tax. GST revenue reverts to the state or 
territory of the Union where consumption occurs. The central government and the states/territories 
of the Union simultaneously receive the GST at a common rate (Table 3.7). Intra -State supply of 
goods and/or services is subject to the Central Goods and Services Tax (CGST), collected by the 
central government, and the State GST (SGST) or the GST of the Ter ritories of the Union (UTGST), 
collected by the states/territories of the Union, respectively. The integrated GST (IGST), which is WT/TPR/M/403/Add.1  
 
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  equivalent to the sum of the GST and SGST/UTGST, is received and collected by the central 
government in all interstate supply  of goods and/or services, and on imports. There is a mechanism 
for settlement of transactions between states. The central government and the states and territories 
of the Union regularly settle their accounts to ensure that the part of the IGST for the SG ST/UTGST 
is transferred to the state/territory of the Union where the goods or services are consumed. The 
participation of states in the CGST and IGST in 2015 -2020 was 42%, and decreased to 41% in 
2020-2021 due to the revenue to be contributed to the new U nion territories created in 2019".  
In item 3.45. "Imported goods and services are subject to the IGST. The IGST applied to imported 
goods is levied on the basis of the transaction value of the imported product plus the customs duty 
imposed on the product. Imported services are valuated according to the same rules used to value 
services for internal tax purposes. In general, the invoice value is the taxable value."  
Question 23: Could the Government of India confirm whether the GST is in effect a surcharge on  
imports of goods?  
Reply: GST is not a surcharge on import of goods. It is a domestic tax that equally applies to 
domestic and imported supplies of goods and services.  
Question 24: What is the Indian authorities' approach to setting GST/IGST goods and services tax 
for each imported good?  
Reply: GST rates are fixed based on the recommendations of the GST Council, which is a 
constitutional body. Identical GST rates apply to both domestic and imported goods.  
Question 25: Where can the GST / IGST rate appli ed by tariff heading be found?  
Reply: GST rates can be found on the Central Board of Indirect Taxes (CBIC) website 
www.cbic.gov.in . 
Question 26: How are changes or adjustments to GST/IGST rates applied to imported goo ds or 
services disclosed to the public?  
Reply: The changes in GST rates are disclosed through a press release after each GST Council 
meeting. The rates are also available on the CBIC website www.cbic.gov.in . Identica l GST rates 
apply to both domestic and imported goods and services.  
In item 3.50. "Other  changes in import charges were the elimination in 2017 of the clean energy 
levy on coal, lignite and peat; and the elimination in 2018 of the education levy and the hi gher 
education levy. Instead, a 10% social assistance surcharge on basic customs duty was established 
in 2018 to finance education and other social welfare plans. The social assistance surcharge applies 
only to imported goods, not domestic ones. All import s are subject to customs duty and social 
assistance envelope, unless exempted.  
Question 27: Could the Government of India confirm whether the 10% Social Welfare Surcharge is 
indeed a surcharge on imports of goods, since it applies only to imports?  
Reply: Social Welfare Surcharge is levied on import of goods, ensuring that total tariff [applied MFN 
tariff and Social Welfare Surcharge] do not exceed India 's binding commitments.  
Question 28: What are the criteria for including or excluding import produ cts from the list of goods 
subject to the Social Welfare Surcharge?  
Reply: Social Welfare Surcharge is levied like tariff ensuring that total tariff [applied MFN tariff and 
Social Welfare Surcharge] do not exceed India 's binding commitments.  
Question 29: Has the list of goods excluded from the Social Welfare Surcharge been changed since 
its issuance in February 2018?  
Reply: Yes, please refer to notification No. 9/2020 -Customs dated 2 February 2020 
(https://www.cbic.gov.in/htdocs -cbec/customs ). WT/TPR/M/403/Add.1  
 
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  Question 30: Does the Government of India plan to periodically review the list of goods included 
or excluded from the Social Welfare Surcharge?  
Reply: Social Welfare Surcharge, like Basic Customs Duty, may be reviewed by the Government on 
relevant considerations such as enhancing domestic value addition, ensuring availability of raw 
materials at competitive prices, securing economic interests of the coun try, among others.  
3.1.5. Import prohibitions, restrictions and licences  
Item 3.53. "India continues to impose import prohibitions and restrictions. The DGFT may, by 
notification, impose restrictions on imports (and exports) in order to: (i) protect human and animal 
life or health or preserve plants, and protect public morals, historical heritage, the environment and 
intellectual property rights (IPRs); (ii) prevent the use of misleading practices, the use of prison 
work and the trafficking of weapons, ammu nition and war material; and (iii) comply with 
United  Nations Security Council resolutions. In addition, some products may only be imported 
through designated State trading enterprises. These imports (centralized products) can only be 
imported through cert ain channels and methods of transport. These include petroleum products, 
bulk agricultural products (such as cereals and vegetable oils) and some pharmaceuticals..."  
Question 31: Could the Government of India indicate where the list of products subject to purchases 
can be consulted through state trading enterprises, preferably by tariff lines?  
Reply: The Indian Trade Classification (Harmonised System) is the source where import of products, 
if traded through STE 's, are indicated. These are available in pub lic domain and can be accessed at 
https://www.dgft.gov.in/CP/?opt=itchs -import -export .  
4.1.1. Measures affecting imports  
In item 4.6. "The average applied MFN tariff for agriculture in 2019/2020 was 34.8%, up from 36.4% 
in 2014/2015. It increased again to 36.5% in 2020/2021. The MFN tariff range is up to 150%, but 
remains well below that of bound tariffs, which is 300%. Although the statutory  tariff rate is 
announced in the Annual Budget, the applied rates are amended from time to time to ensure the 
stability of domestic supplies and prices. For example, in April 2019, the import tariff on wheat 
increased from 30% to 40%. Import tariffs on sug ar also gradually increased from 40% in April 2015 
to 50% in July 2017 and 100% in February 2018. India's maintaining considerably higher bound 
tariff rates allows it to adjust applied tariffs when domestic needs arise."  
Question 32: The Government of Col ombia wishes to highlight its concern about the trade 
unpredictability generated by changes in tariffs, in particular on agricultural products. Does the 
Government of India envisage the future development of its trade policy generate greater 
predictability  of applied tariffs?  
Reply: Applied rates of customs duty in India are prescribed keeping in view the overall economic 
and other policy objectives which include enhancing domestic value addition, creating level playing 
field, ensuring availability of raw m aterials at competitive prices, securing economic interests of the 
country, ensuring supply of essential items at affordable prices.  Extensive deliberations and inclusive 
policy making ensures that tariff changes are transparent and in accordance with the stated policy. 
India's applied rates are consistent with its commitments under the WTO and are available in the 
public domain (at https://www.cbic.gov.in/ . 
5 TRADE AND INVESTMENT POLICIES  
5.1 FDI Policy  
Item 5.7. The measures taken by the Government are intended to open up new sectors to foreign 
direct investment, to increase the limit applied to existing sectors and to simplify other conditions 
of FDI policy. In this regard, the Government has terminated  the previous regulatory board, in order 
to simplify the process of approval of foreign investment and to provide investors with ease of doing 
business. Under the new regime, the process for granting FDI approvals has been simplified and 
work on the proces sing of applications is now carried out by the relevant ministries and departments. 
This is an important step forward, as it simplifies regulatory conditions and reduces the multiplicity 
of formalities in different ministries.  WT/TPR/M/403/Add.1  
 
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  Question 33: It is important  to know in detail what the new regime consists of and how it integrates 
with different competent authorities to grant approvals to the FDI and to grant other permits and 
authorizations. What will happen to policies like free zones and their "sunset clause "? 
Reply: Subsequent to the abolition of the Foreign Investment Promotion Board (FIPB), the work of 
granting government approval for foreign investment under the extant FDI Policy and FEMA 
Regulations has been entrusted to the concerned Administrative Mini stries/Department. Procedure 
for Processing the Applications Seeking Approval for Foreign Investment is mentioned in the 
Standard Operating Procedure (SOP) given at https://fifp.gov.in/Forms/SOP.pdf . This n ew regime 
has made changes only to the process of granting FDI approvals. As regards free zones and their 
"sunset clause", with the onset of this clause, SEZ Units which are issued Letter of Approval on or 
after 1.4.2020 would not be eligible for any direc t tax benefits. However, they would continue to be 
eligible for fiscal benefits for indirect taxes such as Customs duty, IGST, etc., as per provisions of 
the Section 26 of the SEZ Act, 2005.  
Item 4.79. In 2018/2019, services accounted for about 54% of Indi a's GDP (Table 1.2) compared 
to almost 52% in 2014/2015. The sector contributes nearly 70% to India's GDP growth. Although it 
has decelerated since 2014/2015, service growth during the period under review was higher than 
average GDP growth. On the other ha nd, the services sector is the largest recipient of FDI 
(Table  1.5). 
Question 34: Which services contribute the most to GDP and FDI? What are the prioritized services 
for India after the changes generated by the pandemic?  
Reply: As per the Economic Survey 2019 -20, in 2019 -20, the services sector contributed 55.3% to 
GVA out of which 21.3% is accounted by Financial, real estate and professional services, 18.3% by 
Trade, hotels, transport, communication and services related to broad casting and 15.6% by Public 
administration, defence & other services. In 2019 -20, services (including financial, banking, 
insurance, business, outsourcing, research and development, courier, technical testing and analysis, 
other) with a share of 15.7% are the largest recipient of FDI followed by Computer software and 
hardware sector (15.4%). Services sectors have been adversely impacted due to the COVID -19 
pandemic. With increased travel restrictions and reduced demand for services delivered through 
close c ontact, services entailing movement of consumers and service suppliers have been largely 
paralyzed. To achieve economic recovery and ensure sustained and vibrant growth, focused 
attention is needed on a broad range of high potential services sectors includ ing IT -IT enabled 
services, tourism, education, health, audio -visual services etc. There is a need for a re -skilled/up -
skilled talent pool for the current and future requirements. Moreover, ramping up the digital 
infrastructure is critical to overcome digi tal divide.  
Item 4.109. To expand ICT penetration, India launched the Digital India initiative in 2015, as a result 
of which all public services are available online, and connectivity and digital literacy.156 Common 
Services Centres (CSCs) were establishe d in rural and remote areas to bring connectivity to people 
who could not access public and private services such as banks online , insurance companies and 
health and education Centres  CSCs are run by rural entrepreneurs; the fees they charge for 
computer  use and Internet access are regulated to ensure affordability.158 In addition, The "Digital 
India" initiative is expected to contribute to raising the volume of e -commerce.159 Public and private 
training initiatives have been launched to promote the adopt ion of digital technology and encourage 
MSMEs to diversify their business model through the use of inter -enterprise services (B2B) and 
businesses to consumers (B2C).160 Despite these efforts, according to the business community, 
problems such as lack of di gital literacy, poor connectivity (high equipment and connection costs) 
and cybersecurity are a challenge for digitization A 2017 study revealed that 68% of MSMEs did not 
have access to the Internet; 30% used it for online marketing and communication, and only 2% 
carried out e -commerce operations.162  
Question 35: What actions have been taken to remove the barriers described above on the adoption 
of digital technologies and what has been the effect of implementing the Digital India initiative on 
the foray of  companies into e -commerce? Likewise, what actions has the Government of India taken 
on digital and e -commerce to address the COVID -19 pandemic?  
Reply: Digital India Programme is pursuing implementation of digital initiatives across all Central 
Government Ministries, State Governments and Local Governments. It is centered on three key WT/TPR/M/403/Add.1  
 
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  areas, namely, development of digital infrastructure, digital delivery of services and digital 
empowerment of citizens. Some of the key components of the Programme include provision of 
high-speed internet, access to common service centre, provision of services in real time through 
online/mobile platform, universal digital literacy, universally accessible digital resources, digital 
identity etc.  
Under the BharatNet Pr oject, the Government aims to provide high speed broadband connection 
available to all Gram Panchayats (GPs) in India. Common Service Center e -Governance Services 
India Limited, a Special Purpose Vehicle (SPV), has been set up by the Government to oversee 
implementation of the Common Service Centres (CSC) Scheme, details of which can be accessed at 
https://www.meity.gov.in/content/csc -scheme. Adoption of digital technologies is critical for 
adoption of e -commerce by consumers and companies, particularly Mic ro, Small and Medium 
Enterprises (MSMEs). Aadhaar based e -KYC, Unified Payments Interface (UPI) integration for digital 
payment, Aadhaar enabled Payments System, DigiLocker for paperless service request etc. are some 
of the services that facilitate instant  on-boarding and quick service delivery. The CSC Grameen 
eStore is a rural e -commerce initiative of CSC SPV to serve the community during the COVID -19 
crisis, whereby, creation of a village -level online retail chain has been facilitated to encourage supply  
of essentials through fast -expanding outlets that can take online and offline orders and undertake 
home deliveries.  
The ongoing COVID -19 crisis has also spurred the adoption of e -commerce. While significant 
restrictions were imposed during lockdown, deliv ery of essential goods, including food, 
pharmaceuticals, medical equipment were permitted through e -commerce. Although, initially this 
was permitted for certain areas/zones where COVID restrictions were not in place, subsequently, all 
restrictions on e -commerce were removed.  The Government has provided a digitally enabled 
ecosystem including e -Governance Applications such as e -Office, e -Procurement/ GePNIC, 
ServicePlus eHospital, e -Prisons, e -Courts, Darpan Dashboard, Bhu Naksha etc, to ensure  effective 
provision of services for Government as well as for citizens. Aarogya Setu mobile App was developed 
by the Government to limit the spread of COVID -19 through contact tracing, mapping of hotspots 
and dissemination of relevant information about COVID -19. Anothe r notable mobile app, KisanRath, 
was developed to facilitate smooth transportation of agricultural produce during lockdown . 
Item 4.110. On the other hand, in some sectors of the economy (such as agriculture, banking, 
healthcare and education services) the use of digital technologies is widespread. For example, mobile 
applications have been developed to disseminate information to farmers, purchase inputs and sell 
products. In addition, digital payment applications have been launched to support demonetization  
efforts, and the use of other types of digital payment, such as e -banking and e -wallet, has increased.  
Question 36: Is there a legal framework in India governing the activity of digital payment 
applications, electronic banking and the like? If yes, what i s it? 
Reply: Payment systems in India, including the digital/electronic payment systems are authori zed, 
regulated and supervised by the Reserve Bank of India under the provisions of the 'Payment and 
Settlement Systems Act, 2007'.  
In items 5.6. The Governme nt of India has always sought to establish an FDI policy conducive and 
investor -friendly and, over the past five years, has undertaken a number of foreign investment 
reforms; 5.7. The measures taken by the Government are intended to open up new sectors to foreign 
direct investment, to increase the limit applied to existing sectors and to simplify other conditions 
of FDI policy. In this regard, the Government has terminated the previous regulatory board, in order 
to simplify the process of approval of foreig n investment and to provide investors with ease of doing 
business. Under the new regime, the process for granting EDI approvals has been simplified and 
work on the processing of applications is now carried out by the relevant ministries and departments. 
This is an important step forward, as it simplifies regulatory conditions and reduces the multiplicity 
of formalities in different ministries.  
Question 37: Would India consider that a multilateral investment facilitation agreement could help 
attract greater FDI flows through, for example, simplified processes for the approval of FDI 
applications or a framework that provides investors with greater business facilities?  WT/TPR/M/403/Add.1  
 
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  Reply: India notes that investment issues are not mandated under the WTO, including the issue of 
investment facilitation. India has however, on its own, taken several reforms in its FDI policy for 
facilitating FDI flows and for faster and simplified processes for  the ease of foreign investors.  
4. TRADE POLICIES, BY SECTORS  
i. Measures affecting exports  
Item 4.13 Colombia would like to enquire export taxes, export restrictions and prohibitions to 
regulate domestic supply of major agricultural products  
Question 38: Under which WTO provision has India justified its consistency with Article XI of the 
GATT 1994? and how have notification obligations been stocked?  
Reply: As far as MEP, Export Restriction and Export Prohibition are concerned, they are covered 
under Article  XI: (2) (a), GATT 1994. Moreover, export taxes are not bound by Article XI. State 
trading is covered under Article XVII, GATT 1994.  
Question 39: Colombia would like more elaboration on export (and production) subsidies for marine 
products. In particular,  how are they consistent with Article 5 of the Agreement on Subsidies and 
Countervailing Measures?  
Reply: The assistance provided by the MPEDA scheme is not causing any adverse effects to the 
interests of other Members. This assistance is provided towards the improvement of small -scale 
operations of Indian fishers and farmers for the betterment of their socio -economic conditions.  
3.1.6 Anti -dumping, countervailing and safeguard measures  
Anti-dumping measures  
With regard to items 3.66 and 3.67 of the Secretariat's Report, we would like to know:  
Question 40: What were the substantial changes that were incorporated into existing Indian 
anti-dumping and countervailing legislation in changing its legislative regul ation, the Customs Tariff 
Act of 1975 (as amended), in order to make investigations for unfair trade practices more efficient 
and effective?  
Reply: India has already notified the changes in its legislation on AD, CVD and Safeguard that were 
made during the  period of Review (2015 -2019). India will further notify the changes in its legislation 
made after 2019 soon. The major changes include introduction of circumvention provisions in CVD 
Rules and strengthening of circumvention provisions in AD Rules, and the se have been notified to 
the WTO on 4 January 2021.  
Government Report -Document WT/TPR/G/403  
3 REFORMS: ECONOMIC POLICY AND OTHER INITIATIVES  
3.1.5 "Make in India " 
Item 3.5. The Make in India initiative was launched in 2014, with the main objective of making India 
a global manufacturing hub. The aim is to achieve this objective by facilitating investment, promoting 
innovation, improving the level of labour qualification and building higher quality infrastructure for 
the manufacturing sector . The initiative has now been reviewed and focuses on 27 sectors 
[15 manufacturing sectors and 12 service sectors] under the name "Make in India 2.0". Specialized 
government agencies, in addition to State Governments and India's overseas missions, are 
responsible for attracting potential investors. The Investment Approval Cell has been created as a 
one-stop digital platform to obtain all the offices/authorizations required at the central and state 
level. It has a land bank based on a geographic information system (GIS) through which investors 
can search, on an online platform, for available land and land -use structures in different areas. The 
Designated Group of Secretaries of the Government of India, headed by the Secretary of the Council 
of Ministers, has also been formed, whose task is to take decisions on cross -cutting policy issues to 
facilitate and accelerate domestic and foreign investment. Simultaneously, project development cells 
(DPCs) have also been created in the various administrative ministries to develop projects that can 
receive investment, in order to expedite coordination between the central government and state WT/TPR/M/403/Add.1  
 
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  governments. With these measures, the Government reinforces its commitment to promote India 
globally as a pro -investment destination  and to provide investors with greater ease of doing 
business.  
We would like to ask:  
Question 41:  With regard to the land bank, what is the participation of territorial entities in land 
management, this window is only a search engine or transactions can a lso be made to access those 
lands.  
Reply: GIS land bank is not only a search engine providing land information across various states / 
UTs. It also provides information on boundaries, connectivity, raw material and park and plot level 
details such as type of industry, internal utilities, marketing contact details, and plot owner details 
which may help facilitate investor to make an informed decision.  
Question 42:  With regard to the Designated Group of Secretaries of the Government of India, it 
would be impo rtant to know in greater detail the activities and functions of this group, for example 
whether its decisions are binding on other entities, what kind of decisions they can and cannot take, 
what measures they can take to accelerate investment for example, whether they can expedite 
permit and licensing procedures, and finally whether they have Investor -State litigation prevention 
functions.  
Reply: The Empowered Group of Secretaries led by the Cabinet Secretary of India has been 
constituted to take decisions on various industries ' schemes and projects, including cross cutting 
policy issues, for facilitating investment. The Project Development Cells have been set up in all the 
administrative Ministries/Departments to facilitate the development of inve stible projects in 
coordination between the Central Government and State Governments to accelerate investment.  
Question 43:  On project development cells, it would be important to know what legal framework it 
applies to those cells, whether there is any cri teria for identifying those projects, and whether there 
is any entity responsible for promoting those projects to potential investors, for example an 
Investment Promotion Agency.  
Reply: Project Development Cells have been constituted for addressing issues  faced by the 
investors; collation of the investible projects across sectors; and facilitating investments, both 
domestic and foreign. Investment outreach is being done through Ministries, State Governments 
and Indian Missions abroad, while identification of potential investors, and their handholding / 
facilitation is done through Invest India.  
3.1.10 Mudra Mission  
Question 44: Colombia would like more information on the Pradhan Mantri Mudra Yojana (PMMY) 
loan program. How do you harmonize with India's obli gations under the Agreement on Subsidies 
and Countervailing Measures?  
Reply: The details of PMMY can be accessed from the below link - https://www.mudra.org.in/ . The 
program is consistent with our WTO obligations.  
8.3 COVID -19 challenge  
Question 45: Colombia would like more information on development in the context of the 
emergency generated by COVID -19 of the special refinancing services for NABARD, SIDBI, the 
National Housing Bank and the Export and Import Bank. How do you harmonize with India's 
obligations under the Agreement on Subsidies and Countervailing Measures?  
Reply: In view of the tightening of financial conditions in the wake of the COVID -19 pandemic, these 
institutions were facing diffi culties in raising resources from the market. Accordingly, they were 
provided special refinance facilities to help address over the liquidity tightness emanating from the 
COVID -19 pandemic. Advances under this facility are charged at the RBI 's policy repo rate. These 
measures are consistent with our WTO obligations.  
  WT/TPR/M/403/Add.1  
 
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  ICELAND  
Question 1:  What is the participation of women in the economy of India?  
Reply: Women are significantly involved in the Indian economy, including formal and informal 
sectors. The estimated Women Worker Population Ratio (WPR) in the country was 22.0% during 
2017-18 and 23.3% during 2018 -19 [Source: Periodic Labour Force Survey (PLFS) conducted by the 
National Statistical Office (NSO)]. Women participation is also deep rooted through  Self Help Groups 
which are used as a delivery channel for the Government services.  
Question 2:  Have specific barriers that limit women 's participation in trade been identified?  
Reply: No specific barriers that limit women 's participation in trade have bee n noticed / identified. 
However, barriers for women 's participation in economy, in general, such as lack of credit, capacity 
building, awareness, etc., have been targeted by the Government to promote their participation.  
Question 3:  Has India implemented a ny specific measures to encourage women 's participation in 
trade and promote women 's entrepreneurship, or are such measures being developed?  
Reply: Government has supported and encouraged women entrepreneurship through various 
schemes such as  MUDRA scheme (providing soft loans to the women entrepreneurs), Stand -up India 
(financing women entrepreneurs)  and the Self -Help Groups or SHGs (a voluntary group of 
10-20 people having similar socio -economic background in small contiguous area who operate on 
the principles of self -help, solidarity and mutual interest. They pool their little savings and manage 
their credit needs).  Mahila -e-Haat, a  direct online marketing platform, has also  been launched to 
showcase products of women entrepreneurs, Women SHGs and NGOs.  
In order to encourage employment of women, a number of provisions  have been incorporated in 
various labour laws for creating congenial work environment for women. These include child care 
centres, enhancement in paid maternity leave from 12 weeks to 26 weeks, provisions for mandatory 
crèche facility in the establishments having 50 or more employees, permitting women in the night 
shifts with their consent and adequate safety measures, no discrimination in an establishment or 
any unit thereof among empl oyees on the ground of gender in matters relating to wages by the 
same employer, in respect of the same work or work of similar nature done by any employee. To 
enhance the employability of women, the Government is providing training to them through a 
netwo rk of Women Industrial Training institutes, National Vocational Training Institutes, Regional 
Vocational Training Institutes, and a women specific window on the National Career Service (NCS) 
portal.  
Question 4:  Are the effects of trade policy on women and men measured and monitored, and if so 
how? 
Reply: No specific effects of trade policy on women and men, separately, have been noticed / 
identified.  WT/TPR/M/403/Add.1  
 
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  SINGAPORE  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
Secretariat Report - India (S403)  
1.2 Recent Economic Developments  
Page 20 ( para.  1.13)  
Question 1: We note that the National Infrastructure Pipeline seeks to aims to attract investments, 
both domestic and foreign, to provide world -class infrastructure across India. Could India clarify if it 
will be implementing specific policies to attract foreign investment in this area?  
Reply:  Government of India is continuously making concerted efforts to attract investment in 
Infrastructure sector as it is critical to spur economic growth. Several measure s have been taken in 
the recent past to make this sector more attractive for inviting both domestic and foreign investment, 
like, Tax exemption to Sovereign Wealth Funds and Pension Funds on income from their investments 
in infrastructure; Removal of Divid end Distribution Tax; 100% FDI through automatic route in 
various sectors [such as, Civil Aviation: greenfield and brownfield projects, Petroleum & Natural Gas, 
exploration activities of oil & natural gas fields]; etc.  
2.2 Trade Policy Formulation and Objectives  
Page 34 ( para.  2.15)  
Question 2:  Could India clarify how the ministries/departments determine whether it is feasible to 
produce a commodity domestically instead of importing the commodity?  
Reply:  These decisions are decentralized  and are taken by the domestic producers/entrepreneurs 
independently. The Government has no role/intervention  in deciding production  of specific 
commodities in the country.  
2.3 Trade Agreements and Arrangements  
Page 38 ( para.  2.28)  
Question 3:  Does India h ave ongoing bilateral investment treaties negotiations, and if so, which 
countries are these?  
Reply:  Yes. India is currently negotiating Bilateral Investment Treaties (BITs), with thirty -three (33) 
countries / blocks, discussions on which are at various stages. India has already signed BITs with 
Belarus, Kyrgyzstan, and Brazil, along with Bilateral Investment Agreement between India Taipei 
Association (ITA) and Taipei Economic and Culture Centre (TECC).  
3.1 Measures Directly Affecting Imports  
Page 43 ( para.  3.6) 
Question 4:  How has the Single Window Interface for Facilitating Trade (SWIFT) enabled the various 
Indian government agencies to better ensure the accuracy of declarations made by importers and 
exporters?  
Reply:  As part of the "Ease of Doing Business " India has taken up implementation of Single Window 
Interface for Facilitating Trade [SWIFT] to facilitate the Trading Across Borders. It allows importers 
and exporters, facility to lodge their clearance documents online at a single point. Required 
permiss ions, if any, from other regulatory agencies [Food Safety (FSSAI), Drug Controller, Plant 
Quarantine, Animal Quarantine, Textile Committee and Wild Life Crime Control Bureau] are provided 
online without trader having to approach those agencies. SWIFT platf orm has thus enabled 
integration of all six border agencies involved in inspections and better integration has enabled 
elimination of redundant data elements by providing enhanced authenticity to the decisions by these 
agencies to the Customs. It has furth er enabled risk -based clearance to focus on highly sensitive 
products  instead of inspecting and testing of every consignment. SWIFT has also reduced interface 
with Governmental agencies, and thereby reduced dwell time and cost of doing business.  WT/TPR/M/403/Add.1  
 
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  3.3 Measur es Affecting Production and Trade  
Page 84 ( para.  3.161)  
Question 5:  We note that as of March 2018, 27.3% of India 's standards are harmonized with 
international standards. Does India plan to increase its percentage of internationally harmonized 
standards, a nd if so, what measures will it implement to achieve this?  
Reply:  Bureau of Indian Standards (BIS), India's national standard body, has formally accepted the 
'Code of Good Practice for the preparation, adoption and application of standards '. BIS technical 
committees try to align the Indian Standards with the International Standards of International 
Standardization Organizations ISO and IEC, where available and to the extent possible keeping in 
consideration the specific climatic / environmental co nditions and technological development of the 
country. In order to facilitate global trade and improve market competitiveness, BIS is continuously 
striving to increase the extent of harmonization of  Indian Standards with ISO/IEC standards.  
Page 85 ( para.  3.169)  
Question 6:  Could India clarify if the Bureau of Indian Standards has any timeframe for which it 
will conduct conformity assessment tests, so that international exporters will not face delays?  
Reply:  Yes, there are time frames for conformity assessme nt procedures. However foreign 
inspection visits are on hold due to the prevalent restrictions on international travel imposed by not 
only the Government of India, but in certain cases by the Government of other countries as well in 
view of the ongoing COV ID-19 pandemic. As soon as the situation of COVID -19 improves and the 
restriction are lifted, India will plan the inspections (factory visit) and conduct conformity assessment 
tests.  
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
5.1. FDI Policy  
Page 15 ( para.  5.7) 
Question 7:  The Government Report by India notes that the Government has taken measures aimed 
at opening new sectors for foreign direct investment. Could India elaborate further what some 
examples of these sectors are?  
Reply:  Reforms ha ve been carried out across sectors such as Defence, Insurance, Pension, Other 
Financial Services, Asset reconstruction Companies, Broadcasting, Pharmaceuticals, Single Brand 
Retail Trading, Construction and Development, Civil Aviation, Power Exchanges, e -commerce 
activities, Coal Mining, Contract Manufacturing, Digital Media etc.  
India has a liberal FDI Policy. In many sectors, FDI is permitted up to 100% on automatic route, 
subject to sectoral guidelines and regulations. India 's FDI Policy is available on  the official website 
of the Department for Promotion of Industry and Internal Trade i.e., http://www.dipp.nic.in . 
8.4. Government 's response to COVID -19 
Page 21 ( para.  8.14)  
Question 8:  The Government Report by India notes the Government announced an INR 20 trillion 
package on 12 May 2020, which combined the Government's recent announcements on supporting 
key sectors as well as measures rolled out by the Reserve Bank of India. Could Indi a clarify if some 
of these measures are aimed at encouraging the flow of investment into the country?  
Reply:  The Government announced a special economic package on 12  May 2020, providing  financial 
& policy support to various sectors including the cottage industry and MSMEs.  These measures and 
other reforms aim to attract investment, enhance the ease of doing business, and  strengthen supply -
chains.  
  WT/TPR/M/403/Add.1  
 
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  UNITED KINGDOM  
SECRETARIAT REPORT (WT/TPR/S/403)  
1.3 Fiscal Policy  
Para.  1.17 
Foreign corporations with activities in India are presently taxed at a higher rate than domestic firms, 
this disparity discourages UK companies from investing and setting up a presence in India. Parity of 
domestic and international tax rates would encourage foreig n direct investment and aid job creation 
in India.  
Question 1:  Does India have plans to align domestic and foreign corporate tax rates?  
Reply:  Both domestic as well foreign companies are liable to pay corporate tax in India under the 
Income -tax Act, 1961 ( 'the Act '). While a domestic company is taxed on its universal income, a 
company which is not a domestic company, is taxed only on the income which is received or deemed 
to be received in India, or accrues or arises or deemed to accrue or arise in India, unless it is resident 
in India. The tax rate of domestic companies which do not fall under specific tax rate regimes, is 
taxable @30% plus appl icable surcharge and cess. Further, the dividend paid by domestic countries 
also deemed to accrue in India and subjected to tax in India. Foreign companies are taxed with 
respect to income taxable in India @40% plus applicable surcharge and cess. Further, there are 
many special rates provided under Chapter XII and XII -A of the Income -tax Act, 1961 for the foreign 
companies. It may be noted that there is no further tax on dividend distributed by it or money 
repatriated by branch or head office.  
2. TRADE AND INVESTMENT REGIMES  
2.2.2 Trade policy objectives  
Para.  2.17 
This section cites the frequent changes to import/export policy which creates uncertainty for 
economic actors.  
Question 2:  Could India indicate what specific plans it has to provide greater certa inty, transparency 
and a progressively more liberal import policy and FDI regime over the next five years?  
Reply: India's Import policy and FDI regime are transparent and predictable. India has a liberal 
import policy with more than 96% of the tariff lines for import being "free". India 's commitment for 
certainty and transparency is also reflected in its Foreign Trade polic y which is for a period of 
five years. S everal reforms in the area of FDI have also being taken for facilitating FDI flows and for 
faster and simplified processes for the ease of foreign investors.  
3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.1.3 Tariffs  
Para.  3.26 
Question 3:  India's applied MFN tariff rates have increased successively since 2014 -2015, Could 
India please explain the reasons behind this?  
Reply: Applied rates of customs duty in India are prescribed keeping in view the overall economic 
and o ther policy objectives which include enhancing domestic value addition, creating level playing 
field, ensuring availability of raw materials at competitive prices, securing economic interests of the 
country, ensuring supply of essential items at affordable  prices. Tariff changes are transparent and 
in accordance with the conscious stated policy and international commitments of the country, thus 
providing a stable policy environment. India 's applied rates are consistent with its commitments 
under the WTO, an d simple average applied tariffs of India is only 15.4% [also taking into 
consideration the ad valorem  equivalents AVEs] as against the simple average bound rate of 50.8%. 
Details of applied tariffs are available in the public domain (and can be accessed a t 
https://www.cbic.gov.in/ ) WT/TPR/M/403/Add.1  
 
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  Para.  3.28 
The report indicates that India 's "highest rates, above 60%, apply to products such as alcoholic 
beverages ". 
Question 4:  Could India explain why it reserves its very highest tariff rates for alcoholic beverages?  
Reply: The tariff rate on alcoholic beverages has been prescribed having regard to the nature of 
product and other considerations such as goods falling in the categ ory of demerit goods. Moreover, 
the applied rate on alcoholic beverages is within India 's commitments under the WTO.  
3.1.4 Other charges affecting imports  
Para.  3.51 
Question 5:  What measures are being taken by India to ensure a) that its processes and practices 
for companies operating in India support patient access to innovative and  high-quality  medical 
devices, and b) that these processes and practices are in line with global standards and norms?  
Reply: Efficient healthcare delivery systems providing equitable, affordable and easily accessible 
healthcare is at the centre stage of the Government 's efforts. Besides, 100% FDI is allowed under 
the automatic route for both brownfield and greenfield setups in this industry. Strong FDI inflows 
reflect the confidence of global players in the Indian market.  
3.3.2 Standards and other technical requirements  
Para.  3.161  
The report indicates that 27.3% of Indian standards have been harmonized with international 
standards. UK and foreign companies would benefit from further alignment as it would make 
exporting products to India simpler and more efficient.  
Question 6:  What plans does India have to align its technical requirements more closely to 
international standards?  
Reply: Bureau of Indian Standards (BIS), India's national standard body, has formally accepted the 
'Code of Good Practice for the preparation, adoption and application of standards '. BIS technical 
committees try to align the Indian Standards with the International Standards of International 
Standardization Organizations ISO and IEC, where available and to the extent possible keeping in 
consideration the specific climatic / environmental conditions and technological d evelopment of the 
country. In order to facilitate global trade and improve market competitiveness, BIS is continuously 
striving to increase the extent of harmonization of Indian Standards with ISO/IEC standards.  
Para.  3.171  
We note that Food Safety and Sta ndards Authority of India is in the process of reviewing labelling 
regulation.  
Question 7:  What plans does India have to make the labelling and other relevant rules for alcoholic 
beverage products consistent across the centre and states to reduce the high  compliance burden for 
businesses and the complexity of regulations?  
Reply: FSSAI is undertaking consultations with concerned authorities in States/UTs to understand 
how to harmonize their rules regarding alcoholic beverage products with the Food Safety an d 
Standards Alcoholic Beverages Regulations, 2018.  WT/TPR/M/403/Add.1  
 
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  3.3.3 Sanitary and Phytosanitary Requirements  
Para.  3.175  
Question 8:  What steps has India taken to streamline further the process of conducting import 
(pest) risk analysis (PRA) based on scientific principles?  
Reply: Indian Pest Risk Analysis is based on guidelines provided under  International Standards for 
Phytosanitary M easures  (ISPM) -2, 11 and 21.  
Para.  3.182  
Question 9:  What timelines are involved in agreeing bilateral Export Health Certificates for the 
import of animals and animal products into India in line with sanitary requirements laid down by the 
Department of Animal Husbandry and Dairying?  
Reply: As agreeing bilat eral Export Health Certificates involves multiple discussions within the 
Department as well as with other stakeholders, negotiation with proposing country and compliance 
of sanitary requirements, no specific timelines in this regard are in place. Further, the harmonization 
of domestic standards with international standards is a  dynamic and ongoing process.  
Para.  3.184  
Question 10:  What is the procedure for granting sanitary import permits by the Department of 
Animal Husbandry and Dairying?  
Reply: Any import er intending to import livestock product for which advance Sanitary Import Permit 
(SIP) is required, may obtain SIP by applying electronically on the web -portal of Sanitary Import 
Permit System i.e. https://sip.nic.in . After receipt of application with all supporting documents, it 
will be examined/analyzed by the Technical Experts in the Department considering the present 
disease status of exporting country  vis-à-vis the present disease status of India and OIE protocols 
in this regard. Subsequently, the application will be considered by a Committee for final 
recommendation in this regard. After final recommendation, the SIP along with applicable Indian 
Sanitary Protocols, will be issued and uploaded on the web -portal itself . 
3.3.6 Government procurement  
Para.  3.230  
At the last TPR India mentioned it was formulating legislation concerning comprehensive government 
procurement.  
Question 11:  Has this legislation been approved or implemented?  
Reply: No, as of now India 's public procurement is governed by General Financial Rules, 2017 and 
guidelines framed thereunder.  
Question 12:  If so, what does this legislation mean for India 's status as an observer to the WTO 
Government Procurement Agreement?  
Reply: India as an observer is closely observing the developments under WTO GPA  
Question 13:  What steps is India taking to make the process of bidding for procurement contracts 
for international businesses more accessible, particularly for rules which differ across states?  
Reply: Tenders are published and invited electronically online in order to  be more accessible.  WT/TPR/M/403/Add.1  
 
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  3.3.7 Intellectual property rights  
3.3.7.2 Changes to the IPR institutional and legal frameworks  
Para.  3.249  
Indian customs have been regularly intercepting and imported goods which have infringed on 
intellectual property rights. Some of these are likely to have been in relation to Geographical 
Indications.  
Question 14:  Could India provide more information on the specific enforcement methods being 
used to protect Geographic Indications?  
Reply: India's enforcement measures for Geographical Indications (GI) are governed by the 
Geographical Indication of Goods (Regulation and Protection) Act, 1999. The offense defined under 
the Act include falsifying of GI and falsely applying for GI. The Act also provides the remedies 
available a gainst the said offences as well as procedures for search and seizure as applicable. 
Further,  the remedies available for protection of geographical indications may broadly be classified 
into two categories: (i) Criminal remedies (ii) Civil remedies. Under the criminal remedies,  the 
punishment granted for the infringement offences varies from six months to three years 
imprisonment and a fine of not less than INR 50,000 which may extend to INR 200,000.  
3.3.7.3 Main features of the IPR regime over the review period  
Para.  3.256  
Question 15:  Is India considering broadening the scope of section 31D to include internet based 
streaming services?  
Reply: India's Department for the Promotion of Industry and Internal Trade, had issued an Office 
Memorandum dated 5th September 2016, whereby it has been stated that, the words "any 
broadcasting organization desirous of communicating to the public..." under Section 31D may not 
be restrictively interpreted to be covering only radio and television broadcast, as the definiti on of 
broadcast read with communication to public appears to be including all kinds of broadcast including 
internet broadcasting. However, matter regarding provisions pertaining to statutory licensing under 
Section 31D are subjudice before the Hon'ble Supr eme Court of India in the matter of Lahari 
Recording Company v. Union of India and before the Hon 'ble High Court of Bombay.  
3.3.7.5 IPR enforcement  
Para.  3.267  
Question 16:  Does India plan to standardise the national IP enforcement regime and establish 
consistent state -level cybercrime law and enforcement procedures?  
Reply: At present, the IPR enforcement is governed under different IP statutes, which are equally 
applicable across the country.  Recognizing the importance of having a robust IP enforcement 
mechanism, Government through Cell for IPR Promotion and Management (CIPAM) has been actively 
coordinating for sensitizing and training of personnel of various enforcement age ncies across the 
country to ensure a robust IP Enforcement Regime.  
Question 17:  Is India considering the establishment of a federal body to ensure uniform IP 
enforcement across the country and to facilitate the investigation of IP crime, including internet  
piracy?  
Reply: At present, the IPR enforcement is governed under different IP statutes, which are equally 
applicable across the country.  Recognizing the importance of having a robust IP enforcement 
mechanism, Government through Cell for IPR Promotion and Management (CIPAM) has been actively 
coordinating for sensitizing and training of personnel of various enforcement agencies across the 
country to ensure a robust IP Enforcement Regime. At present, no specific proposal for establishing 
a federal body to ens ure IP enforcement crime is under consideration.  WT/TPR/M/403/Add.1  
 
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  Para.  3.268  
Question 18:  Is India considering limiting the scope of safe harbour provisions under Copyright 
Act, 1957 and Information Technology Act, 2000 to only those cases where intermediaries are 
technic al, automatic and passive in nature?  
Reply: As clarified  by the Delhi High Court, Section 79, of the Information Technology Act 2000, 
does not provide blanket immunity from liability to online intermediaries.  Section 52(1) (b) and (c) 
of the Copyright Act  1957, prescribes certain acts, such as transient or incidental storage of copyright 
content, or providing electronic links or access or integration by any person, if such person is not 
expressly prohibited by the copyright owner, to not be considered as i nfringement. If, such person 
receives a complaint from the copyright owner conveying that such transient or incidental storage 
is an infringement, and that such person should refrain from facilitating such access within 21 days 
of receiving such notice, li ability entails on the intermediary, only if such infringing content is still 
not removed. Reading the above, with the Intermediaries Guidelines Rules, 2011, Rule 3(2)(d), 
entails that the intermediary shall inform the users of computer resource not to hos t, display, upload, 
modify, publish, transmit, update or share any information that infringes any patent, trademark,  
Para.  3.269  
To tackle film piracy, in 2019, a bill to amend the Cinematographic Act, 1952, introduced penal 
provisions for unauthorized ca mcording and duplication of films; the bill is still under consideration.  
Question 19:  Is India considering introduction of a 'fair use ' clause in the Cinematography Bill, as 
suggested by a parliamentary panel earlier this year and if so, to what extent wi ll these provisions 
be harmonised with the fair dealing exceptions in India 's Copyright law?  
Reply: The Cinematograph (Amendment) Bill, 2019 was introduced in the Rajya Sabha on 12.2.2019 
after getting approval of the Union Cabinet and aims to tackle the m enace of film piracy and 
prohibiting the unauthorized recording of films by making it a penal offence. The Bill was then 
referred by the Rajya Sabha to the Standing Committee on Information Technology, Lok Sabha on 
22.2.2019 for examination. The Standing C ommittee on Information Technology (2019 -20) 
presented the 9th Report on Cinematograph (Amendment) Bill, 2019 in the Rajya Sabha and Lok 
Sabha on 16.3.2020. The Committee inter -alia recommended in its Report for inclusion of certain 
provisions in the Cinem atograph (Amendment) Bill, 2019, viz. prescribing a minimum period of 
imprisonment or a minimum fine, enhancing the maximum limit for fine, defining the term 
"knowingly", and inclusion of a 'Fair Use ' provision. The recommendations and observations 
contained in the Report of the Standing Committee on Information Technology, including the 
recommendation for having a "fair use " provision, are being examined for making further necessary 
amendment to claus es in the Cinematograph (Amendment) Bill, 2019. The Copyright Act, 1957 
provides for certain exceptions under section 52 including 'Fair Dealing ' in relation to any work, 
primarily to protect the works which are used for non -commercial purposes.  
4. TRADE POLICIES BY SECTOR  
4.1 Agriculture  
Para.  4.1 
Question 20:  Could India provide further information on the measures they are taking to reduce 
domestic support in agriculture in order to help increase food security through international supply 
and cooperation ? 
Reply:  As far as ensuring food security through international cooperation is concerned, import of 
most of agricultural items is free. More than USD 23 billion of agricultural goods per annum are 
imported in India which highlights the importance of intern ational trade for India. Further, the 
applied tariff in agriculture is 34.8 % (2019) in comparison to an average bound tariff of 113.1 %. WT/TPR/M/403/Add.1  
 
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  4.3 Manufacturing  
Para.  4.75 
The National Manufacturing Policy (NMP) aims to rationalize and simplify business regulations, but 
India expects to issue a new Industrial Policy shortly.  
Question 21:  Will this policy apply to foreign businesses established in India and how will this be 
communicated?  
Reply: National Manufacturing Policy aims to, inter alia , expedite growth rate of the manufacturing 
sector; Creation of appropriate skill sets; Enhance competitiveness; etc. Foreign investments and 
technologies are one of the instruments in this regard. Details in this respect are provided in the 
website of the D epartment for Promotion of Industry and Internal Trade [ https://dipp.gov.in/ ]. 
4.4 Services  
4.4.1 Financial services  
4.4.1.2 Insurance  
Para.  4.104  
India has raised the FDI limit for the insurance sector from 26% to 49% automatically through the 
Insurance Laws Amendment Act of 2015.  
Question 22:  Are there plans to extend the proposed increase in FDI caps and 'Indian ownership 
and control ' requirements for insurance intermediaries to the entire insurance sector?  
Reply: Vide 2015's amendments to the Insurance Act, 1938, FDI participation in insurance 
companies has been increased from 26% to 49%.  Insurance intermediaries have been permitted 
100% FDI through the automatic route.  The FDI Policy is reviewed on an ongoing basis after 
examination of all issues in consultation with the stakeholders to ensure that India remains an 
attractive and investor friendly destination.  
4.4.2 Telecommunications  
Para.  4.111  
Question 23:  How will IT and IT enabled Services address the questions around data protection 
and liberali zation of digital trade?  
Reply: The Personal Data Protection (PDP) Bill, 2019, under consideration of the Parliament, aims 
to ensure privacy of the individual as well as growth of digital economy by creating a robust Data 
Protection framework for India. This will be a horizontal enactment for regulating the privacy of 
Personal Data, empowering the citizens with rights relating to  their personal data and specifying the 
obligations of the Data Fiduciary. In relation to non -personal data governance, the Government has 
constituted a Committee of Experts which is deliberating on the subject.  
Question 24:  The Personal Data Protection bi ll is currently being reviewed by a Parliamentary 
Committee. How is India looking to link the PDP, the draft Non -Personal Data regulation and 
e-commerce policy together? Is there a timeline for these to be rolled out?  
Reply: With respect to governance of Non -Personal Data, the Government has constituted a 
Committee of experts which is deliberating on the subject. The report of the said Committee is yet 
to be finalised. With respect to personal data, the Personal Data Protection (PDP) Bill, 20 19 is under 
consideration of the Parliament. The draft e -commerce policy document was placed in the public 
domain in February 2019 for comments/ suggestions. Detailed consultations are ongoing. The 
E-Commerce Policy is yet to be finalised.  Government has e ndeavoured to ensure that consistency 
across all proposed regulations/legislations and policy is maintained. However, the timeline for 
rolling out is not yet finalized.  WT/TPR/M/403/Add.1  
 
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  4.4.3 Transport  
Para.  4.140  
Question 25:  When does India plan to lift the suspension of scheduled international flights (due to 
COVID) or, as an interim measure, remove the current eligibility criteria in respect of transit 
passengers which breach bilateral air services agreements and deny forei gn carriers ' full access to 
the Indian market?  
Reply:  In view of the ongoing COVID -19 pandemic, there is a ban on international flight operations 
to/from India. However, evacuation flights are being permitted. Moreover, on the basis of the large 
number of Indians stranded in certain countries, special arrangements have been made with such 
countries for carriage of traffic by the airlines of both sides. A temporary air bubble arrangement 
between India and UK is already in place to provide limited direct conn ectivity between the two 
nations. India is continuously evaluating the evolving scenario and putting in place necessary 
measures to assist in the gradual expansion of international air travel to/from India.  
INDIA REPORT (WT/TPR/G/403)  
2.2 Trade Performance  
2.2.3 Services trade  
Para.  2.19 
Question 26:  What measures will India be putting in place to ensure mutual recognition of 
qualifications for service professionals under the champion service sectors initiative?  
Reply: India accords high priority to achieving mutual recognition of qualification as the  fundamental 
step for achieving commercially meaningful access for services professionals. 
Ministries/Departments relevant to professional services and associated professional bodies have 
been encouraged to engage with their counterparts in other countries  in this regard.  
Question 27:  What plans does India have to strengthen further its services market and exports, 
especially any plans to allow foreign qualified professionals to practice and partner with Indian 
professionals in the legal services sector?  
Reply: At present, the foreign lawyers cannot practice in Indian Courts, but there is no bar to visit 
India for temporary period for giving legal advice regarding foreign law on diverse international legal 
issues on a 'fly in and fly out ' basis if it does no t amount to practice. Moreover, if the matter is 
governed by particular rules of an arbitral institution, there is no bar on foreign lawyers to conduct 
such proceedings in India. Even in such cases, code of conduct, if any, applicable to the legal 
professi on in India has to be followed. Further opening up of legal services in India to foreign qualified 
professionals will need examination of all issues in consultation with the stakeholders.  
Question 28:  What progress is being made in the liberali zation of In dia's professional services 
sector particularly regarding the architecture and quantity surveying professions?  
Reply: The Architectural Services Sector is already liberalized and professionals from different 
countries can practice in India subject to compliance with provisions of Architects Act, 1972. There 
is no citizenship requirement under the Act for practicing the profession of Architecture. A person 
possessing recognized qualifications and resident in India is eligible to seek registration.  The q uantity 
surveying is not regulated profession/vocation in India.  
Para.  2.20 
India is keen to promote a Study in India initiative as part of the Global Exhibition on Services.  
Question 29:  Does India have any plans to recognise UK qualifications to enable m ore UK students 
to continue their studies in India?  WT/TPR/M/403/Add.1  
 
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  Reply: As on date, one -year master 's degree from any foreign university is not  being equated to 
two-year master 's programme of India. However, consultations are underway for introducing a 
credit -based ass essment in place of the current criterion of duration -based arrangements for 
purposes of equivalence of foreign degrees with Indian degrees. As far as the mutual recognition of 
degrees with the UK is concerned, the Government has decided to set up a bilate ral task force during 
the recent meeting between the Minister of Education, India and Foreign Secretary, UK in 
December  2020.  
2.3.2 Outward investment by India  
Para.  2.23 
Question 30:  The size of India 's insurance assets has grown exponentially over the last decade, 
are there likely to be any amendments to the Insurance Act to permit an overseas asset allocation?  
Reply: Section 27E of Insurance Act, 1938 does not permit Investment outside India. No 
amendment is proposed towards this  requirement.  
3 REFORMS: ECONOMIC POLICY AND OTHER INITIATIVES  
3.1.5 Make In India  
Para.  3.5 
We note India 's emphasis on Make in India. In this regard, recent restrictions have been imposed 
that preclude the sale of Bottled -in-Scotland Scotch Whisky and other Bottled in Origin Spirits by 
Defense Canteen Stores. These restrictions raise concerns about compliance with India 's obligations 
under Article III.4 of the GATT 1994.  
Question 31:  Does India have plans to reverse this decision?  
Reply: India cons iders that the procurement by Defence is government procurement and the 
activities taken thereunder is consistent with India 's obligations under the WTO.  
Question 32:  Does 'Make in India ' promote the use of international standards as the basis for 
manufact ured goods?  
Reply: With reference to standards, the Industry is encouraged to adopt recognized national 
standards wherever such standards exist. The international standard may be adopted in the absence 
of national standards. The products meant for domestic  market and for which technical regulations 
have been specified, the regulation needs to be complied with. In case of Government of India 
funded projects abroad, the technical specifications may be framed based on requirements and 
standards of the host ben eficiary Government.  
3.1.6 Digital India  
Para.  3.6 
Question 33:  How is India progressing with compliance with EU standards, and what future 
developments are planned to further enhance data security, and maintain adequacy if and when this 
is granted by the EU?  
Reply: The Personal Data Protection Bill, 2019, has various  provisions related to cross border data 
transfers, storing, processing of personal data etc. The Bill has sufficient provisions for dealing with 
personal data and its security.  The Bill is based on various global standards.  The Personal Data 
Protection Bi ll, 2019 can be accessed at:  
http://164.100.47.4/BillsTexts/LSBillTexts/Asintroduced/373_2019_LS_Eng.pdf . WT/TPR/M/403/Add.1  
 
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  5 TRADE POLICIES AND INVESTMENT POLICIES  
Para.  5.2 
The paragraph cites India 's foreign trade policy as reflecting its unwavering commitment to trade 
liberalization and deeper integration with the global economy.  
Question 34:  Could India confirm that its policies for a self -reliant India will remain fully consi stent 
with its WTO obligations?  
Reply: India considers that its policies on self -reliant India are consistent with its obligations under 
the WTO.  
Question 35:  Has India given any consideration to participating in newer issues and initiatives in 
digital trade, ecommerce, investment facilitation and related JSIs at the WTO?  
Reply: India is of the view that multilateral avenues, based on consensus, are the most ef fective 
means to achieve inclusive development -oriented outcomes. In so far as joint statement initiatives 
(JSIs) are concerned, provisions governing plurilateral agreements in the Marrakesh Agreement 
must be adhered to. Further,  JSIs should be without prejudice to the rights and obligations of 
non-participating Members in WTO Agreements. Also, India firmly believes that it is important for 
the WTO to first negotiate on mandated issues than taking up new issues.  
  WT/TPR/M/403/Add.1  
 
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  UNITED KINGDOM  (FOLLOW -UP QUESTI ONS)  
Para.  1.17  
Foreign corporations with activities in India are presently taxed at a higher rate than domestic firms, 
this disparity discourages UK companies from investing and setting up a presence in India. Parity of 
domestic and international tax rat es would encourage foreign direct investment and aid job creation 
in India.  
Question 1: Does India have plans to align domestic and foreign corporate tax rates?  
Reply:  Both domestic as well foreign companies are liable to pay corporate tax in India under t he 
Income -tax Act, 1961 ( 'the Act '). While a domestic company is taxed on its universal income, a 
company which is not a domestic company, is taxed only on the income which is received or deemed 
to be received in India, or accrues or arises or deemed to ac crue or arise in India, unless it is resident 
in India. The tax rate of domestic companies which do not fall under specific tax rate regimes, is 
taxable @30% plus applicable surcharge and cess. Further, the dividend paid by domestic companies  
also deemed to accrue in India and subjected to tax in India. Foreign companies are taxed with 
respect to income taxable in India @40% plus applicable surcharge and cess. Further, there are 
many special rates provided under Chapter XII and XII -A of the Income -tax Act,  1961 for the foreign 
companies. It may be noted that there is no further tax on dividend distributed by it or money 
repatriated by branch or head office.  
Follow -up Question: Does India have any plans to create a single corporation tax rate for both 
domest ic and foreign companies?  
Reply: As communicated in earlier response, it is to highlight that domestic companies are taxed on 
their global income, whereas foreign companies are taxable only on their Indian source income. 
Further, foreign companies are eligible to claim benefits under the Double Taxation Avoidance 
Agreements, the terms of which are more beneficial than the provisions of domestic law. Foreign 
companies also enjoy special concessionary rates on certain specified incomes, which are taxed on  
gross basis, under different provisions of the Income -tax Act.  It may be noted that there is no further 
tax on dividend distributed by the foreign companies, or money repatriated by its branch or head 
office.  
3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.1.3 Tariffs  
Para.  3.26 
Question 3: India's applied MFN tariff rates have increased successively since 2014 -2015, Could 
India please explain the reasons behind this?  
Reply:  Applied rates of customs duty in India are prescribed keeping in view the overall e conomic 
and other policy objectives which include enhancing domestic value addition, creating level playing 
field, ensuring availability of raw materials at competitive prices, securing economic interests of the 
country, ensuring supply of essential items at affordable prices. Tariff changes are transparent and 
in accordance with the conscious stated policy and international commitments of the country, thus 
providing a stable policy environment. India 's applied rates are consistent with its commitments 
under the WTO, and simple average applied tariffs of India is only 15.4% [also taking into 
consideration the Ad valorem equivalents AVEs] as against the simple average bound rate of 50.8%. 
Details of applied tariffs are available in the public domain (and can be accessed at 
https://www.cbic.gov.in/ ) 
Follow -up Question: We note India 's response that 'Tariff changes are transparent and in 
accordance with the conscious stated policy and international commitments of the country, thus 
providing a stable policy environment. ' Does India plan to review the frequency at which tariff rates 
change, in order to afford a more transparent and level playing field for those businesses which 
export goods to India?  WT/TPR/M/403/Add.1  
 
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  Reply:  Tariff rate c hanges are contingent on economic and other policy objectives, as stated in the 
earlier reply and are made only where necessitated by these objectives. The conscious policy 
direction of India is elaborated through policy documents. Hence, transparency in t ariff change is 
being exercised for all stakeholders.  
3.1.4 Other charges affecting imports  
Para.  3.51 
Question 5: What measures are being taken by India to ensure a) that its processes and practices 
for companies operating in India support patient access to innovative and  high-quality  medical 
devices, and b) that these processes and practices are in line with global standards and norms?  
Reply:  Efficient healthcare delivery systems providing equitable, affordable and easily accessible 
healthcare is at the centre stage of the Government 's efforts. Besides, 100% FDI is allowed under 
the automatic route for both brownfield and greenfield setups in this industry. Strong FDI inflows 
reflect the confidence of global players in the Indian market.  
Follow -up Question: We note that 100% FDI is allowed under the medical devices sector. Could 
the Government of India provide additional detail on how both consumer and industry best interests 
are taken into account in the methodology for pri ce caps on such medical devices?  
Reply: The Medical Devices Rules, 2017 are in line with the international regulatory practices and 
provide comprehensive legislation for the regulation of Medical Devices.  For import or manufacture 
of any medical device, th e applicant is required to submit details of design, specification, non -clinical 
as well as clinical data of safety and performance of the devices including regulatory status in other 
countries etc. for obtaining import/ manufacturing licen ce from CDSCO/SL As. In case of new Medical 
Devices, the safety, efficacy and performance data are evaluated by CDSCO in consultation with the 
Subject Expert Committee in relevant therapeutic areas. Procedure for testing for registration as well 
as those subsequent to appr oval has been laid down clearly in guidelines. Moreover, various 
applications can be uploaded online through the Medical device online portal.  
Para.  3.161  
The report indicates that 27.3% of Indian standards have been harmonized with international 
standard s. UK and foreign companies would benefit from further alignment as it would make 
exporting products to India simpler and more efficient.  
Question 6  What plans does India have to align its technical requirements more closely to 
international standards?  
Reply: Bureau of Indian Standards (BIS), India's national standard body, has formally accepted the 
'Code of Good Practice for the preparation, adoption and application of standards '. BIS technical 
committees try to align the Indian Standards with the International Standards of International 
Standardization Organizations ISO and IEC, where available and to the extent possible keeping in 
consideration the specific climatic / environmental conditions and technological development of the 
country. In order to facilitate global trade and improve market competitiveness, BIS is continuously 
striving to increase the extent of harmonization of Indian Standards with ISO/IEC standards.  
Follow -up Question: With respect to India 's response that 'BIS is continuously s triving to increase 
the extent of harmonization of Indian Standards with ISO/IEC standards ' – is BIS considering 
collaborating with international partners on best practices in this area?  
Follow -up Reply: BIS has active participation in International Standa rdization organizations such 
as ISO and IEC. Further, BIS has MoUs with several international partners who adhere to Code of 
Good Practice of WTO -TBT agreement. Sharing of experiences and expertise in the field of 
standardization is an important aspect of these MoUs.  WT/TPR/M/403/Add.1  
 
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  Para.  3.171  
We note that Food Safety and Standards Authority of India is in the process of reviewing labelling 
regulation.  
Question 7: What plans does India have to make the labelling and other relevant rules for alcoholic 
beverage products co nsistent across the centre and states to reduce the high compliance burden for 
businesses and the complexity of regulations?  
Reply: FSSAI is undertaking consultations with concerned authorities in States/ UTs to understand 
how to harmonize their rules rega rding alcoholic beverage products with the Food Safety and 
Standards Alcoholic Beverages Regulations, 2018.  
Follow -up Question: We are encouraged to note that 'FSSAI is undertaking consultations with 
concerned authorities in States/ UTs to understand how t o harmonize their rules regarding alcoholic 
beverage products with the Food Safety and Standards Alcoholic Beverages Regulations, 2018 '. What 
is the timeline for conducting this exercise and is there a roadmap to implementation in States/UTs 
so they can un derstand how to harmonize rules?  
Reply: To reduce the compliance burden for businesses  and to ease the complexity of regulations 
across the country, FSSAI has conducted meeting with all the Indian States to harmonize their rules 
regarding the alcohol with the Food Safety and Standards Alcoholic Beverages Regulations 2018 . The 
process is being actively pursued and monitored on an ongoing basis.  
Para.  3.182  
Question  9 What timelines are involved in agreeing bilateral Export Health Certificates for the import 
of animals and animal products into India in line with sanitary requirements laid down by the 
Department of Animal Husbandry and Dairying?  
Reply: As agreeing bilat eral Export Health Certificates involves multiple discussions within the 
Department as well as with other stakeholders, negotiation with proposing country and compliance 
of sanitary requirements, no specific timelines in this regard are in place. Further, the harmonization 
of domestic standards with international standards is a  dynamic and ongoing process.  
Follow -up Question: We note the importance of multiple discussions within the Department as well 
as with other stakeholders on any new Export Health Certificates. Could the Government of India 
please provide any additional detail on how the concerned departments will ensure efficient 
negotiation with the proposing country and clear transparency and timelines throughout the process?  
Reply: The ex amination of bilateral  veterinary health certificates in the Department as well as 
discussions with other stakeholders is a continuous process. Department of Animal Husbandry and 
Dairying examines the sanitary conditions in bilateral  veterinary health cert ificates following the OIE -
Terrestrial Animal Health Codes. Wherever any clarification is required, same is being discussed with 
related countries bilaterally through various mode of communication including bilateral meetings. 
India is making all feasible efforts so as to resolve issues related to bilateral Export Health Certificates 
at the earliest opportunity without compromising the legitimate interest including sanitary issues.  
3.3.7.3 Main features of the IPR regime over the review period  
Para.  3.256  
Question  15: Is India considering broadening the scope of section 31D to include internet based 
streaming services?  
Reply: India's Department for the Promotion of Industry and Internal Trade, had issued an Office 
Memorandum dated 5th September 2016,  whereby it has been stated that, the words "any 
broadcasting organization desirous of communicating to the public..." under Section 31D may not be 
restrictively interpreted to be covering only radio and television broadcast, as the definition of 
broadcast  read with communication to public appears to be including all kinds of broadcast including 
internet broadcasting. However, matter regarding provisions pertaining to statutory licensing under WT/TPR/M/403/Add.1  
 
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  Section 31D are subjudice before the Hon'ble Supreme Court of In dia in the matter of Lahari 
Recording Company v. Union of India and before the Hon 'ble High Court of Bombay.    
Follow -up Question: (Draft) Copyright Amendment Rules, 2019 have not entered into force as of 
now. Since the Draft Rules contained certain provis ions relating to statutory licensing under 
Section  31D, which did not align with the provisions contained in the Copyright Act, 1957; is India 
planning to implement the Draft Amendment Rules?  
Reply: The draft Copyright Amendment Rules are in the process of being finalized and any changes 
relating to rules, on Statutory Licensing as under Section 31 D, will be notified in the official gazette.  
4.1 Agriculture  
Para.  4.1 
Question 20  Could India provide further information on the measures they are ta king to reduce 
domestic support in agriculture in order to help increase food security through international supply 
and cooperation?  
Reply:  As far as ensuring food security through international cooperation is concerned, import of 
most of agricultural item s is free. More than USD 23 billion of agricultural goods per annum are 
imported in India which highlights the importance of international trade for India. Further, the applied 
tariff in agriculture is 34.8 % (2019) in comparison to an average bound tariff of 113.1 %. 
Follow -up Question: We appreciate India 's response with regards to food security. Please could 
India provide details on plans to reduce Domestic Support specifically and any timelines associated 
for doing so?  
Reply: India is a Member with limite d domestic support entitlement viz. de minimis in relation to 
large trade distorting subsidy entitlements in the form of FBT -AMS to some countries. Agriculture 
reform is an ongoing process and requisite measures are taken from time to time.  
2.2.3 Services trade  
Para.  2.19 
Question 26  What measures will India be putting in place to ensure mutual recognition of 
qualifications for service professionals under the champion service sectors initiative?  
Reply: India accords high priority to achieving mutual recognition of qualification as the fundamental 
step for achieving commercially meaningful access for services professionals. Ministries/Departments 
relevant to professional services and associated professional bodies have been encouraged to engage 
with th eir counterparts in other countries in this regard.   
Follow -up Question:  We welcome that Ministries/Departments have been encouraged to engage 
with their counterparts in other countries with regard to mutual recognition of qualifications. What 
consideratio n has been given to India recognising foreign qualifications on the basis of reciprocity 
where the third country in question already recognises qualifications of Indian professionals (such as 
the UK legal services sector)?  
Reply: All relevant aspects inclu ding recognition granted to Indian professionals would be given due 
consideration while examining the matter related to recognizing foreign qualifications.  
Question 27:  What plans does India have to strengthen further its services market and exports, 
espec ially any plans to allow foreign qualified professionals to practice and partner with Indian 
professionals in the legal services sector?  
Reply: At present, the foreign lawyers cannot practice in Indian Courts, but there is no bar to visit 
India for tempora ry period for giving legal advice regarding foreign law on diverse international legal 
issues on a 'fly in and fly out ' basis if it does not amount to practice. Moreover, if the matter is 
governed by particular rules of an arbitral institution, there is no  bar on foreign lawyers to conduct 
such proceedings in India. Even in such cases, code of conduct, if any, applicable to the legal WT/TPR/M/403/Add.1  
 
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  profession in India has to be followed. Further opening up of legal services in India to foreign qualified 
professionals will  need examination of all issues in consultation with the stakeholders.  
Follow -up Question:  Are there any current considerations or consultations ongoing for the further 
opening up of legal services in India to foreign qualified professionals?  
Reply: Consultations with the relevant stakeholders are conducted on an ongoing basis with 
reference to  further opening of services sectors including legal services.  
 
  WT/TPR/M/403/Add.1  
 
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  SWITZERLAND  
Report  by the Secretariat  WT/TPR/S/403  
1 ECONOMIC  ENVIRONMENT  
1.1 Main  Features  of the Economy  
Para. 1.10  
Question  1: The unemployment  rate rose sharply  from 3.7% in 2015/2016 to 6.1% in 2017/2018. 
Is there  an explanation  for this sharp  rise?  
Reply : These data are not comparable as these emanate from different survey methodology, 
different sets of data and data collection mechanism and sample selection. Earlier, Labo ur Bureau 
under Ministry of labour and Employment conducted Labour Force surveys of Employment and 
unemployment annually. However, with a view to measure change in the labour market on more 
frequent basis National Statistics Office (NSO) under Ministry of Statistics and Programme 
Implementation began a new annual regular Employment -Unemployment survey namely Periodic 
Labour Force Survey (PLFS) w.e.f. 2017 -18. Both the figures are thus not comparable.  
1.6 Developments  in Trade  and Investment   
1.6.1 Trends  and patterns  in merchandise  and services  trade  Merchandise  trade  
Para. 1.29  
Question  2: In 2019/2020, 40% of India's imports  come  from Asia, and more specifically  from 
China . What were the consequences  for the country  in terms  of supply  during  the COVID -19 crisis? 
Reply :  Import of any product depends on a number of factors, including demand and supply 
conditions in the country, the prevailing prices etc., at that point of time. Moreover, India 's imports 
during April to November 2020 declined by 33%,  whereas imports from China registered a decline 
by 17%.  
2 TRADE  AND INVESTMENT  REGIMES   
2.1 General  Framework  
Question  3: What are the priorities  in regards  to infrastructure  for India? 
Reply : India has set a target to become a USD 5 trillion economy by 2025. Infrastructure, being the 
key enabler of socio -economic development is bound to play a key role in achieving this vision. 
Following areas are planned to be prioritized to enable growth in the sector:  
Infrastructure Investments : India is required to invest about USD 4.5 trillion (cumulative) by 2030. 
Given the fiscal constraints associated with public investments, private capital (including foreign 
investment) is much needed to rea lise the economic growth targets. Also, to facilitate investments 
in the sector, Government has launched the National Infrastructure Pipeline (NIP) which is a pipeline 
of around 7,000 infrastructure projects with a targeted expenditure of around USD 1.5 tr illion till 
2025.  
Public Private Partnerships  (PPP):   PPP will be a key focus area to bring in private investments. India 
has the potential to be the largest market for PPP / Private sector participation in Infrastructure. 
Even in the NIP, around 20% of th e infrastructure investment is expected to be contributed by the 
Private sector, with PPPs playing a critical role in the contribution.  
Technology transfer s: Transfer of technology is another key area for the Government which will help 
in ensuring that the  infrastructure built is world class and state of the art. Government is thus 
focused on bringing in new technologies to facilitate the implementation of modern infrastructure.  
2.3.2 Regional  and preferential  agreements , Regional  trade  agreements  
Question  4: Under  the period  of review , India notified  the entry into force of one RTA (and the 
accession  of Afghanistan  to SAFTA  as well as the inclusion  of services  investment  commitments  for WT/TPR/M/403/Add.1  
 
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  its agreements  with ASEAN  and APTA). Negotiations  with many  partners  also outside  the region  are 
going  on, in most cases  already  over a significant  period  of time with many  round  being  held. With 
which of these partners do you see a perspective for a conclusion in the course of the next view 
years?  
Reply:  Apart from a number of trade agreements India has entered into, India is negotiating 
comprehensive trade agreements with a number of trading partners. Conclusion of negotiations 
would be based upon various factors including the overall balance of interests wi th the specific 
trading partner(s).  
2.3.3 Other  agreements  and arrangements  
Question  5: What are the priorities  in regards  to bilateral  investment  treaties  for India? Which  
aspects  that take into account  the interests  of developing  countries  would  India like to see included  
in its future  BIT? 
Reply:  The following are the priorities and objectives for India in its BIT negotiations:  
a) to promote bilateral cooperation between States with respect to foreign investments;  
b) to recognize protection of foreign investments is conducive to mutually beneficial business 
activity, development of economic cooperation between States and promotion of sustainable 
development; and  
c) to reaffirm the State 's right to regulate foreign investments in th eir territory in accordance 
with their law and policy objectives;  
The Model BIT 2015 of India, which is the basis of all BIT negotiations, reaffirms the need for a 
better balance between the right to regulate and the investor 's protection.  
3 TRADE  POLICIES  AND PRACTICES  BY MEASURE   
3.1 Measures  Directly  Affecting  Imports   
3.1.1 Customs  procedures , valuation , and requirements   
Question  6: We refer to section  3.1.1 of document  G/403 ( "Customs  procedures , valuation , and 
requirements ") and section  3.1.4 of document  S/403, ( "Other  charges  affecting  imports "). 
Switzerland  welcomes  the positive  information  regarding  the considerable  reform  undertaken  by 
India to replace  a myriad  of duties  and charges  with a broad -based  general  sales tax. Indeed , Swiss  
watch  exporters  noted  the complex  and at times  asymmetrical  nature  of India's various  taxes , 
duties , octrois  and cesses  collected  upon import . We understand  in particular  that the countervailing  
duty (CVD), CENVAT  and luxury  tax have been abolished  on watches . With regard  to the importation  
of watches , Switzerland  would  ask India to kindly  confirm  that, other  than regular  customs  duties  
and the GST, no other  additional  fees, charges  or taxes  are collected . If not, could  India indicate  
which  fees, duties  and the like are still collected , and whether  any of these  are collected  on imported  
but not on Indian -produced  watches . Finally , Switzerland  would  ask India to confirm  that a maximum  
retail price (MRP) is no longer  used in procedures  related to the import  of watches . 
Reply:  On import of watches, Basic Customs Duty, Social Welfare Surcharge on Basic Customs Duty 
(which is also factored as duty of Customs), and GST are levied. MRP based assessment of duty is 
not done for watches.  
Para. 3.17: According  to paragraph  3.17, the Central  Board  of Indirect  Taxes  and Customs  (CBIC) 
may fix reference  prices  ("tariff values ") for certain  imported  (exported ) goods , based  on their 
international  prices  and trends ; these  values  are revised  periodically .  
Question  7: Could  India elaborate  on the way these  reference  prices  are used?  
Reply:  Tariff Values are computed for a very few commodities, such as certain edible oils, brass 
scrap, areca nuts, Poppy seeds, gold and silver. The 'Tariff Values ' are calculated on the basis of 
prevailing international prices of these commodities, as published  in the reputed international 
journals and publications. The tariff values are neither arbitrary nor fictitious values and are WT/TPR/M/403/Add.1  
 
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  consistent with Article 7 of Agreement on Customs Valuation. These values are computed on the 
basis of trends of prevailing price s of such or like goods in the international market. These values 
are also not minimum values as these values are accepted as the assessable values for these 
commodities, irrespective of whether the declared value for these commodities is higher or lower 
than these tariff values. The tariff values are not fixed but floating values and are reviewed and 
revised every fortnight based on international prices so as to keep them close to the transaction 
values.  
Question  8: What happens  in the case a declared  value is lower  than these  reference  prices ? 
Reply:  Please see reply to the Q. No. 7  
Question  9: As the use of minimum  prices  are prohibited  by article  7.2f of the agreement  on 
customs  valuation , could  India explain  the difference  between  the "tariff values " and minimum  
prices ?  
Reply:  Please see reply to the Q. No. 7  
Para. 3.19:  Paragraph  3.19 describes  the different  levels  of appeals  available  to the importer  and/or 
his agent .  
Question  10: Could  India indicate  for each of these  instances  (appeal  to the Commissioner , appeal  
to the Customs  Excise  and Service  Tax Appellate  Tribunal , appeal  to the Supreme  Court ), how many  
appeals  have been logged ?  
Reply:  In 2019 -20, No. of Customs cases where Appeals were logged in are:  
• Commissioner (Appeals) - 15270  
• CESTAT – 3829 
• The Supreme Court - 209 
Question  11: In how many  instances  the decision  has been in favor of the importer  and/or his 
agent ?  
Reply:  In 2019 -20, No. of Customs Cases where Appeals were decided in favour of Party are:  
• Commissioner (Appeals) - 2956 
• CESTAT - 1424 
• The Supreme Court - 48 
3.1.2 Rules  of origin  
Para. 3.22:  
Question  12: According  to para. 3.22, India does not use non-preferential  rules of origin . However , 
the paragraph  is not explicit  on whether  India requires  any documentary  proof of origin  for 
non-preferential  purposes . Does India require  any certification  of origin  and other  mandatory  
documentary  proofs  of origin  for non-preferential  purposes ? 
Reply:  For documentary requirement, details are given at para. 2.108 of the Handbook of 
Procedures which is available in the public domain and can be accessed at: 
https://content.dgft.gov.in/Website/HBP%20Chapter%202 %20as%20on%20June%2030%202019
.pdf.  
3.1.3 Tariffs  
3.1.3.1 Applied  tariffs   
Page 48 (para. 3.27)  WT/TPR/M/403/Add.1  
 
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  Para. 3.27:  According  to paragraph  3.27 the average  protection  for both agricultural  and 
non-agricultural  products  increased  in 2020/21. For several  products  this increase  has been quite 
significant .  
Question  13: Could  India indicate  whether  another  increase  or decrease  in import  tariffs  is foreseen  
for the next period  (2021/2022) and for which  products  (HS codes  and new tariff)? 
Reply: Import tariff rates are generally reviewed periodically in consultation with all stakeholders 
and any changes made are in line with the policy objectives. Hence it will be difficult to anticipate 
future tariff changes in advance. These changes, whenever ma de, are immediately widely 
disseminated and are made publicly available at: https://www.cbic.gov.in/ .  
3.1.3.4 Tariff  concessions   
Pages  51-52 (para. 3.35)  
Para. 3.35:  According  to paragraph  3.35 India exempted  from import  duties  several  items  needed  
to fight the COVID -19 pandemic  until 30 September  2020.  
Question  14: As the pandemic  is still ongoing  could  India indicate  whether  the import  duty 
exemption  has been extended  and for how long?  
Reply:  The import duty exemption was available till 30 September 2020.  
Question  15: If the exemption  was not extended  could  India explain  the reasons  for not extending  
the exemption ? 
Reply : Decision has been taken based upon assessment of all relevant considerations, including 
domestic availability of such items.  
3.1.5 Import  prohibitions , restrictions , and licensing   
3.1.5.1 Import  prohibitions   
Page 55 (para. 3.54 and footnote  56) 
Para. 3.54:  India applies  import  prohibitions  on certain  goods  for health  and safety  reasons  mainly . 
According  to the decision  on notification  procedures  for quantitative  restrictions  (G/L/59/Rev.1), 
Members  shall make  complete  notifications  at two yearly  intervals .  
Question  16: Since  the most recent  available  Indian  QR notification  only covers  the period  
2018-2020, could  India indicate  when  it will submit  its new complete  notification  for the period  
2020-2022 to the WTO secretariat ? 
Reply:  QR notification is being finalised and will be notified to WTO soon.  
3.1.5 Import  prohibitions , restrictions , and licensing   
3.1.5.1 Import  prohibitions   
Page 57 (para. 3.55 and Table 3.9) 
Para. 3.55:  Paragraph  3.55 states  that "Imports  of certain  goods  (48 tariff lines at the HS eight-
digit level) are subject  to import  prohibitions  depending  upon their import  price (Table  3.9). These  
imports  are prohibited  or restricted  when  the c.i.f. price is lower  than the minimum  import  price 
(MIP)" and that the "MIPs are imposed  to protect  the domestic  growers /farmers  and their livelihood ". 
Question  17: Could  India elaborate  on the criteria , other  than price, used by the ministries  to decide  
which  products  should  be subject  to MIPs? 
Reply:  Such interventions are made for only a few products based on various factors viz. cost of 
production, overall demand -supply situation in domestic and world market, domestic and WT/TPR/M/403/Add.1  
 
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  international prices,  etc. Moreover, these measures are temporary in nature and are reviewed 
regularly.  
Question  18: Could  India explain  how MIPs for marble , retreated  tires for aircrafts , and other  
industrial  goods  in table 3.9 will protect  domestic  growers /farmers  and their livelihood ? 
Reply:  Necessary interventions are made for only a few such items to address the import of 
sub-standard material/ quality, safety concerns etc. These measures are also taken to address issues 
related to protection of the livelihoods of workers in domestic industry. However, these measures 
are temporary in nature and are reviewed regularly.  
Question  19: How does India justify  this measure  in regard  to WTO rules? 
Reply:  Necessary interventions are made for a few products only based on various factors including 
cost of production, overall demand -supply situation in the domestic and world market, domestic and 
international prices, etc. However, these measures are temporary in nature and are reviewed 
regularly.  
3.2 Measures  Directly  Affecting  Exports  
3.2.4 Export  prohibitions , restrictions , and licensing   
Page s 72-73 (paras.  3.109 -3.110)  
Para. 3.109  
Question  20: According  to paragraph  3.109, some  items  are prohibited  with exceptions . In these  
cases , for the same  tariff line, there  could  be two or three  different  policies : prohibited  and free; 
prohibited  and restricted ; or prohibited , restricted  and free. 
Could  India clarify  how an exporter  will know  which  is the relevant  policy ? 
Reply:  The export policy clearly specifies the description of items along with the Tariff line t o which 
that policy is applicable. Within the same tariff line, the export policy specified is applicable only to 
the item described in the policy. All other goods, not specified in the export policy, remain free for 
export. There may be two different poli cies for same tariff lines (restricted or prohibited). In such 
cases, the policy clearly specifies each of the items within the same tariff line, subject to different 
policies. All such changes in the export policy are immediately made available in the pub lic domain 
and can be accessed at: www.dgft.gov.in .  
Para. 3.110:  According  to paragraph  3.110 export  restrictions  and prohibitions  may change  to meet 
specific  policy  objectives  (e.g. self-sufficiency  or containment  of domestic  prices ). India continues  
to use trade  policy  to meet non-trade  policy  objectives , changing  policies  constantly , thus 
diminishing  the predictability  of the trade  policy  regime ." 
Question  21: Could  India explain  how it intends  to comply  with the requirements  in the decision  on 
notification  procedures  for quantitative  restrictions  (G/L/59/Rev.1), to notify  changes  to those  
quantitative  restrictions  as soon as possible , but not later than six months  from their entry  into 
force? 
Reply:  QR notification is being finalised and will be notified to WTO soon.  
3.3.4 Competition  policy  and price  controls  
3.3.4.1 Competition  policy  
Para. 3.196  
Question  22: In 2017, the Government  of India replaced  the Competition  Appellate  Tribunal  with 
the National  Company  Law Appellate  Tribunal  to deal with specific  competition  issues . What were 
the reasons  given  for such a change  of appellate  body? WT/TPR/M/403/Add.1  
 
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  Reply:  The Government merged eight Tribunals into other existing Tribunals, including merger of 
the erstwhile Competition Appellate Tribunal with National Company Law Appellate Tribunal. This 
has been done with an objective to rationalize the functioning of Trib unals, bring in more uniformity 
and increase efficiency.  
3.3.7 Intellectual  property  rights  
3.3.7.2 Changes  to the IPR institutional  and legal  frameworks  
Para. 3.254:  Switzerland  commends  India for acceding  to the Locarno , Nice and Marrakesh  
Agreements , as well as the WIPO  Internet  Treaties . 
Para. 3.251:  The Report  mentions  guidance  documents  available  to ensure  consistent  and identical  
interpretation , for instance  regarding  patentability  of inventions  in the area of pharmaceuticals .  
Question  23: Could  India kindly  explain  how its legal framework  ensures  compliance  with TRIPS  
article  27(1) and notably  the provision  that patents  shall be available  and patent  rights  enjoyable  
without  discrimination  as to the field of technology ?  
Reply:  Article 27 of TRIPS, so far as relevant to the present issue, mandates that patents shall be 
available in all fields of technology, provided that they are new, involve an inventive step and are 
capable of industrial application; and patents shall be avail able and patent rights enjoyable without 
discrimination as to the field of technology. However, Members have the freedom to prescribe their 
own definition of inventive step which is a flexibility provided by the TRIPS Agreement. Accordingly, 
Section 2(1) ( ja) of the Patents Act, 1970 defines 'inventive step '. Section 3 of the Patents Act, 
1970, which is nothing but an extension of section 2(1) (ja), lists out certain instances that have 
been classified as 'not an invention ' by the legislature itself and thu s, taking away any possibility of 
confusion in this regard. "Invention " as defined u/s 2(1)(j) of Patents Act, 1999, provides that in 
order to be patentable, any product or process shall be new, involving an inventive step and capable 
of industrial applica tion. This provision is consistent with Article 27 of TRIPS for patent protection in 
all fields of technology. It does not discriminate against any industry sector.  
Para. 3.252  
Question  24: Paragraph  3.252 states  that there  is no specific  legislation  to protect  data-exclusivity  
in India. In relation  to this, we would  like to enquire  how India protects  undisclosed  test or other  
data, submitted  in marketing  approval  procedures  of pharmaceutical  or of agricultural  chemical  
products , against  unfair  commercial  use. This against  the backdrop  of the fact that origination  of 
such data involves  considerable  efforts , as also recognised  in TRIPS  article  39(3).  
Reply : Article 39.3 relates to the specific case when data pertinent for seeking approval of the 
authority is shared with the marketing regulator. The text of this Article does not specifically state 
that member countries would need to comply with the requireme nt of data exclusivity. It only states 
that the regulator will need to protect it from unfair commercial use. Therefore, no additional 
obligations which are not present in text can be interpreted. The obligation on the authorities is to 
keep the test data secret and not allow it to be accessed by third parties through unfair means. India 
complies completely with its obligations under Article 39.3 of TRIPS. Therefore, Article 39(3) does 
not talk about providing "data exclusivity " and it only talks about "unfair commercial use ". Thus, it 
cannot be interpreted that it provides for "data exclusivity ". It is therefore clear that the term "unfair 
commercial use " appearing in Article 39(3) does not obligate implementation of data 
exclusivity/protection law which is  TRIPS plus requirement. With respect to TRIPS agreement and 
public health, the Doha Declaration, 2001 states that the TRIPS Agreement does not and should not 
prevent members from taking measures to protect public health and the TRIPS agreement can and 
should be interpreted and implemented in a manner supportive of WTO members ' right to protect 
public health and to promote access to medicine for all.  As a result, India has made it clear on 
several occasions that Government of India is under no obligation un der the TRIPS Agreement to 
formulate a specific law for data exclusivity.   
3.3.7.5 IPR enforcement  
Para. 3.217:  Switzerland  welcomes  the establishment  of commercial  courts  to expedite  IPR-related  
court cases . Regarding  enforcement  at the border , we would  like to seek a clarification  regarding  WT/TPR/M/403/Add.1  
 
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  the competency  of customs  authorities  to suspend  the clearance  of goods  ex officio . Paragraph  25 
of the Secretariat 's report  states  that customs  are no longer  allowed  to seize infringing  products  at 
import  suo motu, while paragraph  3.271 says that customs  authorities  may suspend  clearance  of 
goods  ex officio .  
Question  25: Could  India kindly  confirm  whether  our understanding  is correct  that its customs  
authorities  do have the competency  to suspend  clearance  of goods  at import  ex officio ?  
Reply:  Yes, Customs can on its own initiative suspend the clearance of the imported goods if there 
is prima facie evidence or  reasonable grounds to believe the goods are infringing IPRs.  
Question  26: Furthermore , we would  also be interested  in learning  whether  and how IP right holders  
can request  action  in the case of export  of infringing  goods , and what the relevant  legal basis for 
this is. 
Reply:  Intellectual Property in India covers within its ambit a wide array of laws relating to different 
IPs like Trademark, Copyright, Patents, Designs, Geographical Indication, Plant Varieties and 
Semiconductor Integrated Circuits Layout -Design. Different Acts relating to each of these IP, provide 
legal rights to IP owners wherein they can take suitable remedies against any import/export of 
infringing goods concerning any IP.  
3.3.5.2 SOEs  and privatization  
Para. 3.225:  The participation  of state-owned  enterprises  (in terms  of GDP) has declined  in recent  
years .  
Question  27: Does India have plans  to develop  and improve  the participation  of SOEs? 
Reply:  Market dynamics decide the inter -se performance and respective share in the economy.  
Further, as per the Annual Public Enterprises Survey by the Department of Public Enterprises (DPE), 
the Gross Value Addition (GVA) by Central Public Sector Enterprises (CPSEs) in the GDP has shown 
a consistent increase during the last five years. The observation mentioned  to in the TPR report is 
only relative in position and may be attributed to the faster growth registered by other sectors of 
the GDP.  
4 TRADE  POLICIES  BY SECTOR  
4.1 Agriculture  
4.1.3.2 Input  support  
Question  28: According  to section  4.1.3.2 on Input  suppor t of the Secretariat 's report , India 
provides  input subsidies  to farmers  for seeds , fertilizer , irrigation  and electricity .  
Could  the Indian  authorities  indicate  the total amount  of these  subsidies  per year? 
Reply:  Input subsidies notified by India under Article 6.2 in DS:1 notification (Supporting 
Table  DS:2) for 2018 -19 is USD 24,184.46 million.  
Question  29: How do Indian  authorities  evaluate  the input subsidies  regarding  economic  efficiency  
and impact  on the environment ?  
Reply: Input subsidies are available to developing countries, including India, under Article 6.2 of 
the AoA. Indian agriculture is dominated by low -income or resource poor farmers with low 
marketable surplus, subsistence farming and low per farmer support. India is con tinuously making 
efforts to improve economic efficiency and environmental sustainability of subventions. Direct 
benefit transfer in case of fertilizers is one such exercise.  
Question  30: Does the Indian  Government  consider  alternative  schemes  of farmers ' support  e.g. 
by means  of direct  payments ? 
Reply:  One of the new schemes is PM -KISAN under which a direct payment of INR 6,000 per year 
per landholding farmer family is available.   WT/TPR/M/403/Add.1  
 
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  ISRAEL  
2 TRADE AND INVESTMENT REGIMES   
2.3 Trade Agreements and Arrangements  
2.3.1 WTO  
Question 1:  Israel would appreciate if India could elaborate its view regarding the joint statement 
initiative on e -commerce in the WTO. Is India considering joining the negotiations? What are India's 
main c oncerns regarding this initiative?  
Reply:  India is of the view that at the WTO, discussions on e -commerce should be undertaken 
pursuant to the exploratory and non -negotiating multilateral mandate of the 1998 Work Program on 
Electronic Commerce.  Gains from  e-commerce should not be confused with the likely benefits of 
rule-making in e -commerce. Negotiation on rules in e -commerce would be premature at this stage 
especially given  the highly asymmetrical nature of the existing global e -commerce space. There is a 
need to understand the implications of rapidly evolving, complex and multi -faceted dimensions of 
issues related to e -commerce. Binding rules on e -commerce at the WTO may have severe adverse 
consequences for future economic prospects of developing countri es. 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.5 Import prohibitions, restrictions, and licensing  
Question 2:  Israel would appreciate if India could elaborate on its policy and regulation regarding 
the imports o f chemical products and fertilizers, i.e., which approvals are required in order to import 
to India? Are there any quantitative restrictions on the imports of these products?  
Reply: Details of the import policy of chemical products and fertilizers are avai lable in Chapter 29 
"Organic Chemicals " and Chapter 31 respectively of ITC (HS) 2017, which is available in the public 
domain and can be accessed at dgft.gov.in.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.5 Import prohibitions, restrictions, and licensing  
3.1.5.2 Import licensing and restrictions   
Para. 3.57 
"…import licences of specified goods, services or technology may be suspended or cancelled without 
giving prior notice to the licence holder."  
Question 3 : In which circumstances import licen ces are suspended or cancelled without prior 
notice?  
Reply: The Foreign Trade (Development & Regulation) Act, 1992 as amended provides that no 
export or import shall be made by any person except in accordance with the p rovisions of this Act, 
the rules and orders made thereunder and the Foreign Trade Policy for the time being in force. 
Wherever the importer fails to comply with the stipulations, there is a contravention of the condition 
imposed on the licen ce, and the lic ence is liable for suspension or cancellation under Section 9 of 
the Foreign Trade (Development & Regulation) Act, 1992, after providing a reasonable opportunity 
of being heard and passing a written cancellation or suspension order in terms of the FT(DR) A ct 
and processes thereunder . 
3.3 Measures Directly Affecting Production and Trade  
3.3.7 Intellectual property rights  
3.3.7.2 Changes to the IPR institutional and legal frameworks  
Para. 3.253  
"India has no specific legislation to protect trade secrets. Over the review period, parties continued 
to rely on contract clauses of non -disclosure to safeguard trade secrets. India also recognizes the WT/TPR/M/403/Add.1  
 
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  common law approach, which allows court proceedings a gainst disclosure of trade secrets, based on 
breaches of confidence, and contractual obligations."  
Question 4:  Israel would appreciate if India could elaborate on the measures which have been or 
will be undertaken to protect trade secrets.  
Reply: India covers trade secrets under the common civil and criminal laws. In addition to remedies 
such as injunctions or damages available under the Information Technology Act, India allows for 
criminal remedies under the Indian Penal Code 1860, such as for cri minal misappropriation, breach 
of trust and theft of property. Under the Indian Contracts Act, 1872, there are civil remedies available 
for the aggrieved person(s) including: an injunction preventing a licensee, employee, vendor or 
other party from disclos ing a trade secret; the return of all confidential and proprietary information; 
and compensation for any losses suffered due to the disclosure of trade secrets. To increase 
awareness on this subject among several stakeholders, a tool kit has been developed  and put in 
public domain by Cell for IPR Promotion and Management (CIPAM) in collaboration with the Global 
Trade Secret Council.  
4 TRADE POLICIES BY SECTOR  
4.4 Services  
4.4.2 Telecommunications  
Question 5:  Do the regulations in India require the transfe r of technology / source code in any 
technology or telecommunication transaction?  
Reply: The extant DoT's regulations related with the telecommunication sector do not require the 
transfer of technology / source code in any technology or telecommunication transaction.  
  WT/TPR/M/403/Add.1  
 
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  COSTA RICA  
GOVERNMENT REPORT  
Page 12 (para. 3.5): The Make in India initiative was launched in 2014, with the main objective of 
making India a global manufacturing hub. The aim is to achieve this objective by facilitating 
investment, promoting innovation, improving the level of labour qualification and b uilding higher 
quality infrastructure for the manufacturing sector. The initiative has now been reviewed and focuses 
on 27 sectors [15 manufacturing sectors and 12 service sectors] under the name "Make in India 
2.0". 
Question 1:  Could India expand on this "Make in India" initiative? What criteria were used to define 
the sectors?  
Reply: "Make in India' was launched on September 25, 2014, to facilitate investment, foster 
innovation, building best in class infrastructure, and making India a hub for manufacturi ng, design, 
and innovation. Ministry of Commerce & Industry is the main coordinating Ministry in the 
Government for this initiative. Investment outreach is being done through Ministries, State 
Governments and Indian Missions abroad, while Identification of  potential investors, and their 
handholding / facilitation is done through Invest India the national investment promotion and 
facilitation agency of India. Sectors for this purpose have, inter alia , been chosen keeping  in mind 
the Indian industry 's strengt hs and competitive edge, as well as employability.  
Page 13 (para.  3.9): The Direct Benefit Transfer (DBT) programme is an initiative for governance 
reform aimed at improving the delivery of public services in India in general. The mechanism for 
designing and implementing DBT programs in India has continued to evolve thanks to the increased 
use of the "JAM" program, which combines Jan Dhan (national financial inclusion plan for account 
opening for low -value transactions through the Pradhan Mantri Jan Dhan Y ojna), Aadhaar (India's 
national digital identity, used for the identification and authentication of beneficiaries) and Mobile. 
Direct transfer of profits has enabled the non -face-to-face, paperless and cash -free economy to 
contribute to greater transparen cy, better objectives, timely benefit -sharing, better accountability 
and reduced cost incurred in providing and losing public programmes.  
Question 2:  Could India expand on the DBT programme?  
Reply: Direct Benefit Transfer (DBT) was introduced as a major go vernance reform aimed at 
improving delivery of public services in India. It involves government process reengineering and 
digitali zation of services to ensure timely reach to the targeted beneficiary. The DBT framework 
leverages digital technology through its JAM trinity - wherein benefits are disbursed into bank 
accounts (Jan Dhan Yojana/ Financial Inclusion Mission accounts) of Aadhaar (India 's digital ID) 
authenticated individual, which can be accessed through UMANG (Governments servic es App) on 
Mobile phones, and benefits both beneficiaries and the Government. At the beneficiary level, DBT 
has empowered citizens by facilitating seamless benefit delivery and improved quality of services. 
For Government, benefits from DBT include better targeting, reduced manual processes, 
rationalization of fund flows, reduced leakages and reduced cost of delivery.  
REPORT OF THE SECRETARIAT  
Page  39 (para.  2.16): In order to achieve its export objectives, India grants incentives such as 
the Indian Goods E xport Programme (MEIS), the Indian Services Export Programme (SEIS) and 
credit facilitation to promote exports. Under FTP, the objectives of MEIS and SEIS are to correct 
infrastructure inefficiencies and related costs for exporters ( Section 3.2.5)  
Question  3: Could India please confirm whether these above -mentioned initiatives are in 
accordance with the WTO Agreement on Subsidies and Countervailing Measures?  
Reply: The WTO Agreement on Subsidies and Countervailing measures does not cover under its 
purview e xports of services, therefore the Service Exports from India Scheme which is on export of 
services has no relation to the ASCM. MEIS is a remission of embedded prior -stage cumulative 
indirect taxes in accordance with footnote 1 read with Annex I of the SCM  Agreement.  WT/TPR/M/403/Add.1  
 
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  Page 49 (para. 3.6): In 2016, India launched the Single Window Trade Facilitation Interface 
(SWIFT). Swift's main features are: (i) integrated risk assessment; (ii) automated bypass; (iii) the 
integrated declaration, which replaces nine individual documents; and (iv) the onli ne office. 
Currently, some 50 government agencies are part of it, and these are gradually integrated through 
circulars issued by the Central Board of Excise and Customs (CBIC).  
Question 4: What has been the biggest challenge in implementing SWIFT? For prod ucts that could 
potentially present higher levels of risk (e.g. liments, chemicals and drugs, biomedical equipment 
and material, cosmetics, as well as raw materials for the preparation of all of the above), what is 
the procedure for obtaining automatic app roval of the import or export permit?  
Reply: SWIFT platform has enabled integration of all six border agencies involved in inspections like 
Food inspections, Plant and Animal inspections. Integration of these agencies has enabled 
elimination of redundant d ata elements. It has also enabled risk -based clearance to focus on high 
risk products/consignments. No major challenges were noticed during the implementation of SWIFT.  
Page 65 (para. 3.55): Imports of certain products (48 tariff lines at the HS 8 -digit level) are subject 
to import price prohibitions (Table 3.9). These imports are prohibited or restricted when the c.i.f. 
price is lower than the minimum import price. According to the authoriti es, minimum import prices 
are imposed in order to protect domestic growers/farmers and their livelihoods. Competent 
ministries decide which products should be subject to minimum import prices.  
Question 5: What is the mechanism for defining the products and  their respective minimum export 
price to which import prohibitions or restrictions apply?  
Reply: Most of the tradable items are freely importable and interventions have been prescribed for 
only a few products.  Such interventions are made based on various factors including cost of 
production, overall demand -supply situation in the domestic and world market, domestic and 
international prices, etc. These measures are temporary in nature and are reviewed regularly.  
  WT/TPR/M/403/Add.1  
 
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  THAILAND  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
Secretariat Report - India (S403)  
SECTION 3:  TRADE POLICIES AND PRACTICES BY MEASURE  
1. ECONOMIC ENVIRONMENT  
1.1. Main Features of the Economy  
Page 14  (para. 1.1)  
For most of the period under review (2015 -mid 2020), India's  economy continued its strong growth. 
Economic reforms were continued and were focused on increasing efficiency and inclusiveness. 
Measures to improve efficiency included a number of steps on trade and investment facilitation. 
Structural reforms were also undertaken. They included: the Insolvency and Bankruptcy Code (IBC) 
in 2016, which has begun to address the problem of debt in the corporate sector although it has 
been slower than envisaged, with cases taking twice the stipulated period to resolve ; the G oods 
and Services Tax (GST) in July 2017, which is expected to reduce complexity in the indirect tax 
system ; and a more rigorous supervisory framework in the banking sector, although problems have 
also emerged in non -banking financial companies (Section 4 .4.4.1). Investment to improve 
infrastructure has also been continued, notably to improve transportation and linkages between the 
interior of the country and ports and airports. To address economic exclusion, a number of 
government programmes were launched , including an increased number of schemes aimed at 
poverty alleviation.  
Question 1:  Can India provide more information on the implementation of GST?  
Reply:  Prior to implementation of Goods and Services Tax (GST), India had multiple indirect taxes 
levied a nd collected by the Centre (Central Excise duty on manufacture; Service tax; Additional Duty 
of Customs on imports in lieu of domestic taxes) and taxes levied and collected by States (Value 
added Tax on sale of goods; Purchase tax; Entry tax; etc.). These indirect taxes were levied under 
different statues, had their different administration, including registration and periodical returns 
(with varying periodicity, monthly, quarterly, six monthly etc.). Though some of these taxes 
operated on value added princ iple (by allowing credit of taxes paid on inputs), the system of input 
tax credit was generally confined within such taxes leading to cascading of taxes (tax being levied 
on tax). Difference in taxation also required state and municipal border check -posts,  hindering free 
flow of goods adding to costs. Introduction of GST however unified various indirect taxes, cesses 
and surcharges levied by Centre and States into one uniform pan -India indirect tax system, realizing 
the goal of 'One Nation One Tax '. GST als o resulted in rationalization and in majority of cases 
reduction in tax incidence. Introduction of GST also removed cascading of taxes by providing 
seamless input tax credit across value chain, and eased compliance burden by replacing multiple 
registration s and returns by single  online  registration and return. It also resulted in complete 
abolition of state and municipal border check -posts, and introduction of online Electronic Way Bill 
system for movement and selective checks (if needed) of goods. Further  information on the 
implementation of GST can be accessed by visiting the following links:  
http://gstcouncil.gov.in/ , https://www.cbic.gov.in/htdocs -cbec/gst/index -english  
Question 2:  Why is the GST expected to reduce complexity in the indirect tax system?  
Reply:  By subsuming more than 17 taxes and a number of cesses and surcharges under a single 
GST, a harmonized system of Indirect Taxation has been created, with uniform GST tax rates; Laws 
and Procedures across the country, greatly simplify the complexity in the indirect tax system. For 
further details, reply to the question above as well as following Links may be seen:  
http://gstcouncil.gov.in/ , https://www.cbic.gov.in/htdocs -cbec/gst/index -english  
  WT/TPR/M/403/Add.1  
 
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  THAILAND (ADDITIONAL WRITTEN QUESTION S) 
According to Document  No. WT/TPR/S/403 Page 55 Topic 3.1.5 Import Prohibitions, Restrictions and 
Licensing, India imposes restrictions on imports (and exports) to:  
(i) protect human, animal or plant life or health; public morality; historical heritage; the 
environment; and in tellectual property rights (IPRs); (ii) prevent the use of deceptive practices; the 
use of prison labour; and the traffic of arms, ammunition and implements of war; (iii) and to comply 
with United Nations Security Council resolutions.  
However, during 2020  India has imposed several import prohibitions, restrictions and licensing 
measures. Thailand would like to kindly request India to inform us about necessity and reasons on 
the imposition of these measures as follows:  
Question 1:  Referring to Ministry of C ommerce & Industry of India Notification N o. 12/2015 -2020 
dated 12 June 2020, restricting imports of 9 automotive tyres for motor cars, trucks, motorbikes 
and bicycles under HS code 4011.10, 4011.20, 4011.40 and 4011.50, and Notification N o. 22/2015 -
2020 d ated 30 July 2020, restricting imports of 9 products of colour televisions in all sizes under 
HS code 8528.72 with immediate effect, Thailand would like to ask India to provide detailed 
information and guidelines concerning the implementation of these notifications such as 
administrative procedures and conditions as well as time period of application procedure.  
Reply: The implementation of licensing procedures by India is transparent and predictable, and such 
licences are authorized for clearance, every month, by the EXIM Facilitation Committee. The 
procedure for issuance of such licence is as provided under para. 2.50 and para. 2.51 of the 
Handbook of Procedures, 2015 -2020, which is available at https://dgft.gov.in/CP/?opt=ft -
procedures . An application for grant of licen ce for import of Restricted items, including tyres and 
colour televisions, is to be filed online in form ANF - 2M [https://content.dgft.gov.in /Website/ANF -
2M.pdf].  
Question 2:  Referring to Ministry of Commerce & Industry of India Notification No. 17/2015 -2019 
dated 9 July 2020, India has restricted import of cut flowers under HS code 0603 only through 
Chennai Airport. Thailand would like India t o provide us information about rationale behind the 
imposition of this measure.  
Reply:  Points of entry for imports of cut flowers has been specified in order to preserve and protect 
the bio -security of flora in the country and to ensure better monitoring o f such imports coming into 
the country.  
Question 3:  Referring to Ministry of Commerce & Industry of India Notification No. 41/2015 -2020 
dated 15 October 2020, India has prohibited imports of air conditioners with refrigerants designed 
for wall and ceiling under HS code 8415.10.10 and 8415.10.90. Thailand would like to ask India to 
provide clearer classification of HS code of air conditioners with refrigerants and specify types of 
refrigerants prohibited for imports under the said Notification.  
Reply : Air conditioner  with refrigerant f alling under ITC  HS codes 84151010 and 84151090, as 
specified in DGFT Notification No.41 dated 15.10.2020,  is 'Prohibited ' for import.  The prohibition was 
necessary for application of standards and  regulations for market ing of  the item, besides reducing 
risks to human, animal and plant life and health in light of India 's commitment to Montreal protocol.  
Moreover,  as per the Ozone Depleting Substances (Regulation and Control) Amendment Rules, 2014, 
import of air conditione rs containing Group VI substances (HCFCs) is prohibited since  1 July 2015 . 
PART I: QUESTIONS REGARDING THE GOVERNMENT REPORT  
Page 11 (para. 3.1.5)  
Question 1:  Paragraph 3.1.5, page 11, states a goal of 'Make in India' initiative as to make India a 
global manufacturing hub. Considering Prime Minister Narendra Modi 's speech on the occasion of 
74th Independence Day which clearly stated that "the goal must no longe r be just 'Make for India' 
but 'Make for the World,' ", the report therefore should explain how the policy contributes to the 
regional and global supply chain.  WT/TPR/M/403/Add.1  
 
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  Reply: The ultimate goal of "Make in India " is to raise manufacturing 's contribution to the country 's 
GDP from 15 % to 25%. Along with the Make in India initiative, India has undertaken several reforms 
to strengthen its infrastructure sector. The National Infrastructure Pipeline (NIP), launched for 
2020-2025 with a projected investment of approxim ately USD 1.5 trillion is aimed as a major 
resource contributor towards logistics and supply chain interlinkages in the country. It is expected 
that infrastructure boost will improve the competitiveness of the country by addressing supply -side 
bottlenecks.  Additionally, many other policy initiatives have been undertaken which aim to support 
an effective and reliable manufacturing eco -system, thereby meeting the demand of the global 
supply chain.  
Page 11 (para.  3.6) 
Question 2:  Could India elaborate more in the term of Electronic Delivery of Services?  What is the 
target of Electronic Delivery Services ' implementation?  
Reply:  Digital India is a flagship programme of the Government of India with a vision to transform 
India into a digitally empowered society and  knowledge economy. There are several transformational 
digital initiatives undertaken under the Digital India Initiative, namely, JAM (Jan Dhan Yojana, 
Aadhaar, Mobile), Direct Benefit Transfer (DBT), Common Services Centres (CSCs), Pradhan Mantri 
Gramin D igital Saksharta Abhiyan (PMGDISHA), e -National Agricultural Market (e -NAM), 
Government e -Marketplace (GeM), Digital Locker, e -Sign, Digital Payments (BHIM, BHARAT -QR 
Code, PayGov, Public Finance Management System – PFMS), Open Data Platform, etc. These 
initiatives are able to ensure easy, effective and efficient governance and services to the citizen. 
Digital India Initiative has spurred adoption of digital technologies, which is critical for promotion of 
e-commerce in India. More details may be seen at  https://www.digitalindia.gov.in/ .  
 
Page 12 (para.  3.7) 
Question 3:  What is the criteria for the company to get recognized as Startup by the Government 
of India?  
Reply:  The eligibility criteria for consideration of an entity as a Startup is detailed in the notification 
GSR 127 (E) dated 19th February 2019 [https://www.sta rtupindia.gov.in/content/dam/invest -
india/Templates/public/198117.pdf]. An entity fulfilling the eligibility criteria of a startup can make 
an online application on the portal www.startupindia.gov.in.  
 
PART II: QUESTIONS REGARDING THE SECRETARIAT REPORT  
Secretariat Report - India (S403)  
Page 16 (para.  1.6) 
Question 4:  Please provide more information on the Indian Government 's Atmanirbhar Bharat 3.0 
(self-reliant) initiative announced in November 2020. The campaign includes a INR 2.65 trillion 
stimulus package aiming for the country 's economic revival and sustained growth amidst the 
COVID -19 pandemic. It also consists of some measures such as catalysing the recovery of multiple 
business sectors; automobile manufacturing, pharmaceutical productio n and medical supplies, and 
medical equipment etc. Since the initiative is significant to India 's trade policy and international 
trade, it should be incorporated in the report.  
Reply: Details can be accessed at https://pib.gov.in/PressReleasePage.aspx?PRID=1672321  
 
Page 64 (para.  3.83) 
Question 5: What was the rationale for this legislative clarification?   
Reply: The legislation is clarified only for providing the latest update in circumvention rules. These 
Rules now have also been notified to the WTO in the documents G/ADP/N/1/IND/2/Suppl.9 
and G/SCM/N/1/IND/2/Suppl.11.  
Question 6: What are the differences between  the previous version and the recent version of India 's 
AC law?   WT/TPR/M/403/Add.1  
 
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  Reply: The latest anti -circumvention Rules provide more clarity on the definition of circumvention 
and various forms of circumvention. This version has already been notified to the WTO.  
 
Ques tion 7 : Refer to footnote 88 Customs Notification No. 09/2020, 2 February 2020, it mentions 
about the value -added calculation. Could you please clarify on the following questions?  
1. What are the factors that India has included in the calculation of "cost of assembled, complete 
or finished article "? 
2. What do you consider as the value of imported parts or components? Could you please identify 
whether they are only the parts from AD co untry or including the part from other countries?  
Reply: The provisions for normal value determination under the WTO provisions and the Indian Anti -
Dumping Rules make comprehensive reference to the cost of production. The 'value ' concept in anti -
circumvent ion cases refers only to the cost of assembling, finishing or completion operation. From 
this cost the value of imported parts or components is reduced so as to obtain the value added which 
is to be considered for the purposes of Rule 25(1)(b) of the Anti -Dumping Rules, 1995. In event of 
cooperation by a producer/exporter, his relevant data is considered or else the best available 
information/facts available if the value addition takes place in the importing country or any other 
country.   
 
Import Licensing  and Restrictions  
Page 59 
Question  8: Observation - This trade policy review (2015 -2020) does not include some import 
measures imposed by India, e.g. Notification No. 22/2015 -2020 dated 30 July 2020 imposed 
restricted import measure of color television un der HS 852872 and Notification No. 41/2015 -2020 
dated 15 October 2020 imposed prohibited import measure of Air conditioners with refrigerants 
under HS 84151010 and 84151090?  
Reply:  Decisions regarding regulating any item of import are always taken in consultation with the 
line ministries/ departments and it is subject to revision/ withdrawal/ amendment. Reasons include 
a check on quality issues and standards, and to ascertain import statistics.  Import licensing 
measures taken by India are consistent wi th the WTO rules under the GATT and the Agreement on 
Import Licensing Procedures and are administered in a fair and equitable manner, including with 
respect to the timeframes for grant of import licen ces. 
 
Pages 84–86 (paras. 3.161, 3.163 and 3.165)  
Questi on 9:  Do the Indian procedure for standard formulation and work program conform to 
Annex  3 of TBT Agreement? (p. 3.161)  
Reply: Yes, the procedure for standard formulation and work program of BIS conforms to Annex 3 
of the WTO – TBT Agreement.  BIS has formally accepted the 'Code of Good Practice for the 
preparation, adoption and application of standards (Article 4 of WTO -TBT Agreem ent, Annex 3) ' and 
the same has been notified to the WTO.  
 
Question 10:  How does India consider the definition of the phrase "reasonable period of time "? 
(p. 3.163) ? 
Reply:  The time period by which a technical regulation (Quality Control Orders) will come in force 
is decided by Central Government (Regulators) after consultations with stakeholders.  A reasonable 
period of time is provided to the manufacturers to obtain necessary licen ce for complying with the 
requirements of technical regulation. This ti me frame is equally applicable to both domestic and 
foreign manufacturers. Further, the regulators also consider the requests as and when received from 
various associations/industries regarding extension in date of implementation of various technical 
regulations keeping in view the prevailing situation.  WT/TPR/M/403/Add.1  
 
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  Pages 84 –86 (paras.  3.161, 3.163 and 3.165 ) 
Question 11:  In case of emergency where BIS is unable to go abroad for on -site visit (such as in 
COVID -19 pandemic situation), what measure does BIS apply to avoid  unnecessary obstacles to 
international trade? (p. 3.165)  
Reply:  Foreign inspection visits are on hold due to the prevalent restrictions on International travel, 
imposed by not only India, but in certain cases by the Government of other respective country as 
well, in view of the ongoing COVID -19 Pandemic. As soon as the situation of COVID -19 improves 
and the restrictions are lifted, India will plan the inspections (factory visit). The product certification 
activity of BIS for licence to use Standard Mark (I SI Mark) is governed in accordance with Scheme -
I of BIS (Conformity Assessment) Regulations, 2018. This scheme specifies factory visit of the 
applicant manufacturing premises. During the visit Product sample from the factory premises is also 
drawn & dispat ched for independent testing in a laboratory situated in India. It is not feasible to 
carry out this activity through remote inspection. With regard to grant of sufficient extension for 
obtaining licences, concerned Regulator is considering the requests as  and when received from 
various associations / industries regarding extension in date of implementation of various technical 
regulations (Quality Control Orders) keeping in view the difficulties arisen due to COVID -19. 
Page 11 (para.  3.4) 
3.4 Government e -Marketplace (GeM -SPV) was set up as the National Public Procurement Portal on 
17th May 2017.12 Incorporated as a 100% Government owned Company for providing procurement 
of goods and services by Central and State Government organisations, GeM provides an op en 
inclusive platform for the vendors (OEM, resellers, service providers) to register and list their 
products/services without any entry barriers. There is no registration fee or listing fee in GeM. It is 
a contactless, paperless and cashless platform wher ein authentication of users is done through API 
integration. As of August 2020, there are more than 46,230 Government Organizations and over 
447,000 vendors registered on the portal. Further, more than 7,889 product categories comprising 
approximately 2.17  million products and 135 services are available on GeM.  
Question 12:  Are foreign vendors eligible for GeM platform? If yes, what are the criteria and 
conditions for the registration? If not, is the Government prepared to consider permitting foreign 
vendor s' use of the platform in the future?  
Reply:   Currently, Government e -marketplace (GeM) is meant only for Domestic Bidding. Global 
bidding is not yet enabled on GeM. However, Indian subsidiaries of foreign companies can register 
in Rupee terms in GeM and registration requirement is same as for domestic companies.  
Page 12 (para.  3.7) 
3.7 Startup India is a flagship initiative of the Government of India, which intends to build a strong 
ecosystem conducive for the growth of startup businesses and generati ng large scale employment 
opportunities. Under this initiative, the Government aims to empower startups to grow through 
innovation and design. Several programmes have been undertaken since the launch of the initiative 
on 16th of January 2016. These program mes have catalysed the startup culture, with many 
entrepreneurs availing the benefits of starting their own business in India. Under the Startup India 
initiative, eligible companies can get recognized as Startups by the Government. This enables them 
to acc ess easier compliance, IPR fast -tracking and obtain certain benefits such as rebate in 
patent/trademark filing fees, etc. As on 31st July 2020, 34,226 startups have been recognized under 
the initiative.  
Question 13: Are foreign start -ups eligible for the b enefits and supportive initiatives under the 
Startup India program? If yes, what benefits and support could they receive and what are the criteria 
and conditions for applying to the program?  
Reply: Any entity that qualifies as per the below definition of a  "Startup " is eligible for benefits 
under the Startup India Program:  
i. If it is incorporated as either  Private Limited Company  or Registered Partnership Firm  or 
Limited Liability Partnership.  A sole proprietorship or a public limited company is not eligib le 
as startup.  WT/TPR/M/403/Add.1  
 
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  ii. If its turnover for any of the financial years has  not exceeded INR 100 crore.  
iii. If it is working towards  innovation, development or improvement  of products or processes or 
services, or if it is a  scalable business model  with a high p otential of employment generation 
or wealth creation.  
iv. Should not have been formed by splitting up or reconstruction of a business already in 
existence.  
v. If it is  up to 10 years  from the date of its incorporation/ registration . 
 
The startup gets access to the Startup India Platform which is a one stop network for entire Startup 
ecosystem. Any Indian or foreign startup can leverage the platform to connect  with investors, 
mentors, incubators, and access various  resources & toolkits website. Following link can be accessed 
to know more about this program: https://www.startupindia.gov.in/content/dam/invest -
india/Templates/public/Startup%20India%20Kit_March%202020.pdf  
Page 12 (para.  3.8) 
3.8 India is one of the youngest nations in the world. To meet the challenge of skilling the young 
population, the Ministry of Skill Development and Entrepreneurship (earlier Department) was set up 
in November 2014 to drive the 'Skill India ' agenda in a 'Mission Mode '. This seeks to converge 
existing skill training initiatives and combine scale and quality of skilling efforts, with speed. Pradhan 
Mantri Kaushal Vikas Yojana (PMKVY) is the flagship scheme of the Ministry of Skill Development & 
Entrepreneursh ip (MSDE) implemented by National Skill Development Corporation. The National Skill 
Development Mission was launched on 15 July 2015 on the occasion of World Youth Skills Day to 
achieve the vision of 'Skilled India '. It seeks to provide the institutional c apacity to train a minimum 
of 300 million skilled people by the year 2022. As on 17 January 2020, 4.03 million candidates have 
been trained under Short Term Training (STT) courses. Out of these certified candidates, 1.6 million 
candidates have been provide d with placement opportunities.  
Question 14: Are foreign workers and/or Indian workers working for foreign companies in the 
country eligible for the skill development program under this scheme?  
Reply: The objective of PMKVY is to enable a large number of Indian youth  to take up industry -
relevant skill training that will help them in securing a better livelihood. For details, FAQs at 
https://www.pmkvyofficial.org/faq.php  may be seen.  
REPORT BY THE WTO SECRETARIAT (WT/TPR/S/403)  
Page 97 (para.  3.216 ) 
3.216 India continues to implement the Public Distribution System (PDS) that facilitates the supply 
of food grains (rice, wheat, and coars e grains), sugar, and kerosene at subsidized prices. The System 
is implemented by the central and state governments. The central procurement agency, the Food 
Corporation of India (FCI), is responsible for procurement, storage, transportation, and bulk 
allocation. The state governments are responsible for distributing the commodities through fair -price 
shops . 
Question 15: Please provide more information about "fair-price shops " such as the number of 
shops, conditions for running the shops, and management.  F or example, whether the shops are 
owned by the government or private entrepreneurs with the government 's support.  If the shops 
belong to the government, how are they managed and operated? If they belong to private operators, 
what are the conditions provid ed by the government in supporting them?  
Reply: At present, around 0.54 million fair price shops are in operation throughout the country. The 
Fair Price shops can be owned by the panchayat, cooperative societies, individuals and others 
satisfying the crite ria as per the guidelines. Fair price shops are allowed to sell commodities other 
than the foodgrains distributed under the targeted PDS to improve the viability of the shop 
operations. Licen ces are issued to dealers by state/UT governments as per the state specific criteria. 
The details regarding regulation of fair price shops can be seen from TPDS (Control) Order, 2015.    WT/TPR/M/403/Add.1  
 
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  Page 118 (para.  4.17) 
4.17 On 5 March 2019, the Government announced a  scheme for Transport and Marketing Assistance 
(TMA) for specified agricultural products. The scheme "aims to provide assistance for the 
international component of freight and marketing of agricultural produce which is likely to mitigate 
disadvantage of hi gher cost of transportation of export of specified agriculture products due to 
trans-shipment and to promote brand recognition for Indian agricultural products in the specified 
overseas market.  
Question 16:  Please explain further the scheme for Transport a nd Marketing Assistance (TMA) for 
specified agricultural products, including its criteria, methods, conditions, and operation procedures.  
Reply:  The assistance under the TMA Scheme is available to all registered exporters of agriculture 
products covered in  HSN chapter 1 to 24, with certain exceptions. Foreign markets to which TMA 
points are the countries of West Africa, EU, Gulf, North America, China, Russia & CIS, ASEAN, etc.  
Page 119 (para.  4.24) 
4.24 Following each growing season, the Government announce s minimum support prices (MSPs) 
for 24 crops, most of which are based on recommendations by the commission for Agricultural and 
Costs and Prices (CACP). The price recommendations are based on a number of factors, including 
demand and supply, cost of produc tion, trends in prices, and the terms of trade between agricultural 
and non -agricultural products.  
Question 17:  Please provide more information on Minimum Support Prices (MSPs) for 24 crops 
listed in the Commission for Agricultural and Costs and Prices (CA CP).  For example, how do you 
derive support prices or recommended prices, and how do you implement and monitor the operation 
of the scheme?  
Reply:  Minimum Support Prices (MSPs) are announced by the Government following the 
recommendations of the Commissio n for Agricultural Costs and Prices (CACP), which takes into 
account various factors including the cost of cultivation/production, changes in input prices, 
input/output price parity, inter -crop price parity, effects on the cost of living, effects on genera l price 
level, parity between prices paid and prices received by farmers, etc.  
Page 108 (para.  3.258 )  
3.258 Over the review period, streamlined and modernized processes to grant patents and register 
trademarks were introduced, to address the backlog in processing applications (Table 3.46). In 
addition, the Patent (Amendment) Rules, 2019, included new categories of applicants eligible for 
expedited patent examination; and fees for international applications (Patent Cooperation Treaty) 
were waiv ed. New examiners were also recruited to help reduce the backlog in undertaking 
examination. As a result, in 2018/19, 337,541 patent applications were examined, and 
316,798  trademarks were registered, compared with 168,026 and 41,583, respectively, in 2014 /15. 
Question 18: According  to the Patent (Amendment) Rules 2019, what are new categories of 
applicants eligible for the expedited patent examination? Could India also elaborate more on the 
expedited patent examination?   
Reply: The facility of Expedited Ex amination has been provided for patent applications filed by 
Startups and for applications where the Applicant has selected Indian Patent office as ISA/IPEA for 
his PCT application. The Expedited Examination system has been further extended for patent 
applications to 8 more categories of Applicants w.e.f. 17 -09-2019 by amending the Patents Rules. 
New categories include SME, Female applicants, Government Departments, institutions established 
by a Central, Provincial or State Act, which is owned or controlled  by the Government, Government 
Company, an institution wholly or substantially financed by the Government and applicants under 
PPH. Under the Expedited Examination System, most applications regarding grant of patents have 
been decided within about one year  of filing Request for Expedited Examination  as compared to the 
period of few years required in case of normal examination route. A request for expedited 
examination is to be filed in Form 18A along -with fee as specified in the First Schedule only by 
electronic transmission, duly authenticated within the period prescribed in Rule 24B. In addition to WT/TPR/M/403/Add.1  
 
- 190 - 
 
  the above, a request for expedited examination shall be accompanied by a request for early 
publication under Rule 24A of the Patent Rules, 2003, except where an  application has been 
published or a request for publication has already been filed.  Further, a request for normal 
examination can be converted into a request for expedited examination by paying the relevant fee 
and submitting the requisite document. Furth er, as provided under Rule 24C, once the request for 
examination has been filed and the application has been published, the Controller shall refer the 
request for expedited examination along with the application to the examiner in the order of filing 
of such requests. Then the examiner is required to examine the patent application and make his 
report within one month but not exceeding two months from the date of reference of the application 
to him. The Controller, then, is required to dispose of such report  of the examiner within one month 
of receipt of report and the first statement of objections, if required, are to be issued within fifteen 
days from the date of disposal of the report by the Controller. A reply to the first statement of 
objection is to be filed within 6 months from the date of the examination report or within an extended 
period of 3 months. However, it is advised to file the response at the earliest as it would be examined 
in the order in which it is received by the patent office. Further, the Controller is required to dispose 
of the application of expedited examination within a period of three months from the date of receipt 
of the last response to the first examination report or within three months from the last date to put 
the application  in order for grant. However, this time limit shall not be applicable in case where pre -
grant opposition is filed.  
Page 111 (para.  3.267 ) 
3.267 Various measures to enforce IPRs were taken over the review period. Awareness campaigns, 
targeting specific audi ences (e.g. Customs/police/judiciary officers, academics, students, and 
start-ups) or regarding specific fields (e.g. GIs), were launched. In addition, a wide spread campaign 
against film piracy was launched on social media. Capacity -building workshops were organized for 
state police officers and judges. Since 2015, IPR cells and innovation councils have been established 
in universities and higher education institutions, to create a conducive environment for IP awareness, 
generation, and commercialization.  
Question 19:   
1. What measures are laid down in the draft national e -commerce policy to address counterfeiting 
and piracy?  
2.  With regard to counterfeiting and piracy on e -commerce, customers are encouraged to act as 
whistle -blowers. Are there any specific channels available for customers to report 
counterfeiting and piracy to e -commerce platforms?  
Reply:  The draft policy is under consultation stage, and yet to be finalized. However, with respect 
to tackling of counter feiting, the Consumer Protection (e -commerce) Rules 2020, provide for 
liabilities on e -commerce entities and sellers, for sale of spurious goods/services. Further, the 
centralized public grievance redressal and Monitoring System ( https://pgportal.gov.in/ ) also allows 
consumers to submit grievances including those related to sale of counterfeit products or acts of 
piracy, to the government. Grievances received are examined and resolved, in consultation with 
specified e-commerce entities. Further, consumers also raise such concerns by directly writing to 
concerned Departments, and these are taken up with Industry, from time to time, for consolidated 
resolution. In addition, the National Consumer Helpline (NCH) also hand les such grievances.  
Page 111 (para.  3.267 ) 
3.267 Various measures to enforce IPRs were taken over the review period. Awareness campaigns, 
targeting specific audiences (e.g. Customs/police/judiciary officers, academics, students, and 
start-ups) or regardin g specific fields (e.g. GIs), were launched. In addition, a wide spread campaign 
against film piracy was launched on social media. Capacity -building workshops were organized for 
state police officers and judges. Since 2015, IPR cells and innovation council s have been established 
in universities and higher education institutions, to create a conducive environment for IP awareness, 
generation, and commercialization.  
Page 40 (para.  2.35) 
2.35 Key changes since the previous Review include permitting up to 100% foreign -equity ownership 
in a larger number of agricultural activities through the automatic route; automatic FDI of up to WT/TPR/M/403/Add.1  
 
- 191 - 
 
  100% in the defence industry, broadcasting carriage services, and telecommunications services and 
in business -to-business electr onic commerce activities; up to 100% FDI through the automatic route 
for insurance intermediaries and up to 49% in insurance companies ; and FDI of up to 100% through 
the automatic route for airports, other air services, and non -scheduled air transport ser vices, and 
up to 49% in scheduled air transport services.  
Question 20:  Thailand would like to request India to further clarify the meaning/definition of the 
following words : 1) Automatic Route and 2) Automatic FDI . 
Reply: The routes under which foreign inv estment can be made is as under:  
Automatic Route:  Foreign Investment is allowed under the automatic route without prior approval 
of the Government or the Reserve Bank of India, in all activities/ sectors as specified in the 
Regulation 16 of FEMA 20 (R).  
Government Route:  Foreign investment in activities not covered under the automatic route requires 
prior approval of the Government. Procedure for applying for Government approval is given at 
http://fifp.gov.in /Forms/SOP.pdf  
 
Page 41 (para.  2.39) 
2.39 To encourage FDI, the central and state governments provide several incentives. In addition 
to SEZs and export -oriented units (EOUs), which continue to operate, India introduced the Make in 
India scheme in Septembe r 2014, which targets investment in 25 sectors of the economy. The 
National Investment and Manufacturing Zones (NIMZs), as part of the National Manufacturing Policy, 
provide incentives for infrastructure development on a public private partnership (PPP) ba sis 
(Section  4). 
Question 21:  Thailand would like to request India to provide more information on incentives and 
requirements for the following special areas: 1. Special Economic Zones (SEZ); 2. Export – Oriented 
Units (EOUs); and 3. National Investment an d Manufacturing Zones (NIMZ).  
Reply:  The details of the SEZ and EOU schemes can be accessed from the below link:  
http://sezindia.nic.in/  
The details of the NIMZs scheme can be accessed from the below link: 
https://www.makeinindia.com/policy/national -manufacturing_not  
Page s 66–67 (para.  3.88) 
3.88 The DGTR, which is responsible for anti –dumping, is also the Authority in charge of 
administering countervailing measures. It initiates investigations to determine the existence, degree 
and effect of any alleged subsidy in relation to imports, upon re ceipt of a properly documented 
application by, or on behalf of, the domestic industry. The DGTR may also initiate investigations on 
its own behalf (Rule 6(4) of Countervailing (CVD) Rules, 1995). The application furnished by the 
industry should include, inter alia , evidence of subsidy on imports; if possible, its amount; injury; 
and causal link.  
Question 22:  Thailand would like to request India to further clarify about procedures, requirements 
and other relevant information, which the DGTR has taken to init iate investigations on countervailing 
duty case from other countries?  
Reply: The detailed CVD Rules are available at the link below:  
https://www.cbic.gov.in/htdocs -cbec/customs/cs -act/formatted -htmls/cs -import -rule23  
Certain provisions in these Rules were further amended vide Notification N o.10/2020 -Customs (N.T.) 
dated 02.02.2020 and may be seen at:  
https://www.cbic.gov.in/resources//htdocs -cbec/customs/cs -act/notifi cations/notfns -2020/cs -
nt2020/csnt_10.pdf . 
Page 75 (para.  3.125 ) 
3.125 Duty exemption/remission schemes enable exporters to import inputs duty -free, including 
replenishment of inputs or duty remission. During the period 2015 -20, the DGFT implemented WT/TPR/M/403/Add.1  
 
- 192 - 
 
  scheme s such as: the Advance Authorisation (AA) Scheme; the Duty -Free Import Authorisation 
(DFIA) Scheme; and the Duty Drawback (DBK) Scheme (a duty remission scheme).  
Question 23:  Thailand would like to request India to clarify about "duty credit scrip " under t he 
Merchandise Export Scheme (MEIS) and differences between duty credit script and duty 
exemption/remission scheme under the Duty -Free Import Authorization (DFIA) . 
Reply: MEIS scheme provides remission of embedded prior -stage cumulative indirect taxes incurred 
in production of export products. This scheme has been terminated and is no longer available for 
exports made from 01.01.2021. Under the DFIA scheme, a person who has  exported a product is 
allowed to import proportionate duty -free inputs (based on standard input output norms) used in 
the manufacturing of the exported product. The DFIA scheme is within the provisions of footnote 1 
to Article 1.1(a) 1.1 (ii) of the SCM A greement. Further details of the scheme can be accessed from 
India's Foreign Trade Policy 2015 -20. 
 
Page 4 (para.  1.4) 
1.4 The fundamentals of the Indian economy are strong and this has ensured macroeconomic 
stability. Inflation is within limits and FDI in flows have increased substantially in the recent years 
with the highest ever FDI inflow of USD 74.39 billion during the financial year 2019 -20. Improvement 
in the trading environment has enabled the country to better its position in the World Bank 's Doing 
Business ranking from 142 in 2015 to 63 in 2019.  India 's position in the Global Innovation Index 
has also risen from 81 in 2015 to 52 in 2019, while its ranking in World Bank Logistics Performance 
Index changed from 54 in 2014 to 44 in 2018. These develop ments clearly suggest an improved 
confidence of the global business and trade in the Indian economy.  
Question 24: Given that the said TPR mainly reported on India macroeconomic performance, while 
India has decentralized governance policy into the region of  29 states nationwide. Since none of 
regional or state economic policies were reported. In this regard, may Thailand ask India to provide 
additional information on regional or state economic development policy, so that we could further 
utilize those inform ation to develop economic and industrial cooperation at the state level with India.  
Reply:  India has a federal system of governance with both the States and the Central governments 
responsible for the development of the nation as a whole. Central Governmen tal Policies play a key 
role in the regional or state economic development policies. Majority of the schemes are however 
implemented through State Government. One of the examples for centre state collaboration can be 
seen in the area of Ease of Doing Busin ess wherein DPIIT (Central Government) has developed 
Action Plan for State Reforms since 2015 and circulated it with States / UTs for implementation. 
These reforms cover the entire lifecycle of the business and aim at reducing compliance burden on 
industry  significantly. States / UTs have been actively engaged in envisioning, designing and 
implementing these reforms that are to be undertaken each year. The Plan is designed keeping in 
mind 2 factors viz. Measurability and Comparability across States. To supp ort this initiative, an online 
portal showcasing rankings was developed and launched in April 2016; it is the first such platform 
for knowledge on regulatory compliance requirements across 36 States/UTs in the country.  
Page 87  (Table 3.27 Institutions in charge of SPS )  
Question 25: The Ministry of Fisheries, Animal Husbandry and Dairying was established since 2019 
and the Department of Animal Husbandry and Dairying (DAHD) is now under that ministry, Is the 
DAHD the competent authority whic h is responsible for developing and administering the sanitary 
measures for importation and exportation of livestock and its related products including fisheries 
and fishery products?  
Reply: The Department of Animal Husbandry and Dairying (DAHD) deals with  sanitary issues, 
related to, inter alia, imports of livestock and livestock products. These imports into India are 
regulated by the Livestock Importation Act, 1898 (as amended). DAHD maintains border quarantine 
posts and internal control posts to ensure c ompliance with the sanitary requirements relating to the 
import or export of animals and animal products and by -products.  
 WT/TPR/M/403/Add.1  
 
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  For import of fisheries and fishery products, DAHD consults with the Department of Fisheries under 
the same Ministry. The exportation  of livestock and its related products including fisheries and fishery 
products are governed by the Export Policy of India.  
Question 26: Which organizations are competent authorities for developing and administering 
phytosanitary measures for importation a nd exportation of plants/plant products and sanitary 
measures related to food safety for importation and exportation of food products?  
Reply: Directorate of Plant Protection Quarantine & Storage (DPPQ&S) under Department of 
Agriculture and Farmer's Welfare  (DAC&FW) is the competent authority for developing and 
administering phytosanitary measures for importation and exportation of plants/plant products 
measures. With respect to Sanitary measures, it is dealt by Department of Animal Husbandry& 
Dairying (DAH& D). 
Question 27: Is the Agricultural and Processed Food Product Export Development Authority 
(APEDA) the competent authority in controlling phytosanitary or sanitary measures for export of 
agricultural and livestock products?  
Reply: APEDA is responsible for overall export promotion of agriculture and processed food products. 
For developing and administering phytosanitary measures, Directorate of Plant Protection 
Quarantine & Storage (DPPQ&S) under Department of Agriculture and Farmer's Welfare  (DAC&FW) 
is the competent authority and for Sanitary measures, Department of Animal Husbandry and 
Dairying (DAH&D) is the concerned Department.  
Question 28: What are different between responsibility of APEDA and reponsibilities of the 
mentioned organizati ons in controlling phytosanitary and sanitary measure for exported/imported 
agricultural, livestock and food products? This is because Thailand was informed that APEDA is the 
central competent authority of India in controlling aflatoxin level in peanut ker nel exported to 
Thailand.  
Reply: Directorate of Plant Protection Quarantine & Storage (DPPQ&S) is responsible for developing 
phytosanitary conditions for allowing import of agricultural commodities from any country. DPPQ&S 
also issues phytosanitary certifi cate for export of agricultural commodities as per agreed 
phytosanitary conditions of importing country. APEDA is responsible for overall export promotion of 
agriculture and processed food products.  
Page s 90–91 (paras. 3.192 –3.194 ) 
3.192 The manufacture, i mport, research and release of GMOs, and of GMO products, are regulated 
by the Rules for Manufacture, Use, Import, Export and Storage of Hazardous Micro -Organisms, 
Genetically Engineered Organisms or Cells, 1989, under the Environment (Protection) Act, 198 6. In 
order to implement the Rules, six competent authorities were created under the Ministry of 
Environment, Forest and Climate Change (MoEF&CC) (Table 3.29).  
3.193. The Review Committee on Genetic Manipulation (RCGM), in the MoEF&CC's Department of 
Biotechnology, developed the Guidelines and Standard Operating Procedures (SOPs) that regulate 
activities involving the use of GMOs in R&D and in industrial and environmental applications, to 
ensure human health and environmental safety. All projects are review ed by the RCGM to ensure 
compliance with the Guidelines and SOPs; subsequently, the production, sale, importation and use 
of hazardous microorganisms, GMOs or cells may be restricted or prohibited.  
3.194. The RCGM issues the clearance letters/import permit s for GMOs; however, these must be 
authorized by the Genetic Engineering Approval Committee (GEAC). The RCGM may also visit the 
sites where recombinant DNA projects are carried out, to ensure compliance with the Guidelines and 
SOPs.  
Question 29: According to the list of imported food products mentioned in the annexure 1 of this 
order, India specified that every consignment of the imported food products listed in annexure 1 
shall be accompanied with a Non -GM cum GM free certificate. We would like to seek for  scientific 
justification and the risk assessment data that support the determination of listed food products.  WT/TPR/M/403/Add.1  
 
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  Reply: The date of implementation of said order has been extended up to 1  March 2021. The 
comments received from the member countries are being e xamined and detailed clarification/ 
explanatory note shall be released before its implementation for reference of member countries.  
Question 30: Thailand would like to seek the clarification on the scope of imported food products 
(HS Code) covered under this order and ask for the confirmation whether this order only applies to 
24 food plants listed in annexure 1 but not cover food products containing the listed food plants.  
Reply: The order regarding requirement of Non -GM cum GM free certificate is applicable only for 
the food crops enlisted in Annexure 1 of the FSSAI order dated 21.08.2020 and not for the processed 
food products in general.  
Question 31: Regarding the certificate for Non -GM origin and GM free status, India requires the 
competent auth orities of exporting country to certify that imported products is Non -GM origin and 
does not contain Genetically Modified Organism (GMO) and also not genetically modified. We are 
concerned that this requirement might be the international trade barrier, whi ch would constitute an 
unnecessary cost to our exporters. Hence, we request India to reconsider by requiring only one of 
the following documents: (1) Certificate of Non -GM origin (2) Certificate for Non -Genetically Modified 
organism (3) Test report issued by ISO/IEC17025 accredited Laboratory certifying that the food 
product does not contain GMO and not genetically modified.    
Reply: The date of implementation of said order has been extended up to 1  March   2021. The 
comments received from the member countr ies are being examined and detailed clarification/ 
explanatory note shall be released before its implementation for reference of member countries.  
Page 130 (para.  4.59) 
4.59 Public and private operators are engaged in the generation, transmission, and distribution and 
trading of electricity (Table 4.7). The public sector remains the most important stakeholder, holding 
53.2% of the total installed capacity in 2019/20. The State owns India's largest power -generating 
company (NTPC Ltd.), as well as the Power Grid Corporation of India Ltd. (PGCIL), which operates 
90% of the inter -state transmission network and maintains the national grid. Distribution also 
remains largely dominated by the state distribution companies. India also has two pow er-trading 
exchanges (PXIL and IEX). Electricity supply is secured by load dispatch centres at the national, 
regional, and state levels. India's electricity grid is connected to Bangladesh, Bhutan, Myanmar, and 
Nepal. Cross -border supply is regulated by bi lateral agreements. Since 2019, power trading has 
been allowed across India, if both trading partners have in turn a bilateral agreement with India.  
Question 32: Thailand would like to learn more on "Electricity Trade Flow" in India and also 
South -Asia reg ion., including policy, regulation, platform to enhance electricity trading and develop 
power interconnection infrastructure. Moreover, Thailand would like to specifically understand more 
on "Power Trade Flow" in each country in South -Asia region in order to seek opportunity to cooperate 
in both technical and commercial aspects in the multilateral power trade.  
Reply:  With respect to electricity trade flow, the Government has issued the Guidelines on 
Import/Export (Cross Border) of Electricity Guidelines, 20 18, available at 
https://powermin.nic.in/sites/default/files/uploads/Guidelines_for_ImportExport_Cross%20Border
_of_Electr icity_2018.pdf , and CERC regulations on Cross Border Trade of Electricity, available at 
http://www.cercind.gov.in/2019/regulation/CBTE -Regulations2019.pdf . Market informatio n 
regarding electricity flows in India, may be accessed at  www.posoco.in . It is further informed that 
during FY 2019 -20 (April -2019 to March -2020), 9369 MU was exported and 6310 MU was imported 
by India to/from neighbou ring countries including Nepal, Bhutan, Bangladesh and Myanmar.  
  WT/TPR/M/403/Add.1  
 
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  BANGLADESH  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
Secretariat Report - India (S403)  
Non-Tariff Measures (Section: 3.169, FFSAI and 26, 1.18, 3.146, 3.148, 3.151, 3.154, 
3.218, 4.1.3, 4.20, 4.21, 4.1.3.4):  
The product standard set by Bureau of Indian Standard (BIS) and Bangladesh standard and Testing 
Institute (BSTI) is not aligned and ac credited by both the sides. There is no set and agreed rules for 
plant quarantine between Department of Plant Protection, Quarantine and Storage of India and Plant 
quarantine Department of Department of Agricultural Extension (DAE) of Bangladesh.  
Question 1: How the quarantine process, common testing scale and accreditation standard, product 
standard alignment would be done by India for products from Bangladesh?  
Reply: The commodities are included in Plant Quarantine (Regulation of Import into India) Order,  
2003 after conducting Pest Risk Analysis. For the plants and plant products imported into India, the 
quarantine process and common testing scales are carried out as per guidelines of ISPM No.  1 
(Phytosanitary principles for the protection of plants and the application of phytosanitary measures 
in international trade), ISPM -23 (Guideline for inspection) and Standard Operating Procedure for 
Import Inspection and Clearance (brought out by NPPO -India) and phytosanitary treatments are 
carried out by NPPO -Accredited treatment providers, when necessary.  Also, BIS strives to harmonize 
Indian Standards with ISO /IEC standards. Further, under the ambit of SAARC, BIS is actively 
participating for harmonization of standards at regional level.  
Transaction Security Ass urance Issue (WTO -TFA):  
The swift and secured payments are getting momentum due to digital exchange of data regarding 
free flow of goods over the globe. Normally the transaction is made through the central banks and 
regional clearing houses like ACU (Asian  Clearing Union), it demands "A secured transaction policy 
framework " to accelerate prompt and secured trade activities.  
Question 2: How India will promise prompt and secured transaction through its law or policy 
framework?  
Reply: The procedures to be followed to make payments under the ACU mechanism are detailed in 
the ACU Agreement and Procedure Rules. Further, as per Regulation 3(1)(A)(i)(a) of  Foreign 
Exchange Management (Manner of Receipt and Payment) Regulations, 2016 issued vide Notification 
No. FEMA 14(R)/2016 -RB (FEMA 14R) dated May 02, 2016 (as amended from time to time), receipt 
for export of eligible goods to Bangladesh is to be received through the ACU mechanism. Also, in 
terms of para. 5(1)(A)(i)(a) ibid, payment for im port of eligible goods and services from Bangladesh 
is to be made through the ACU mechanism. Under the mechanism, settlement between the member 
countries takes place on a bimonthly basis. Swift messaging system is used to make these secured 
transactions.  
  WT/TPR/M/403/Add.1  
 
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  EUROPEAN UNION  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
Secretariat Report - India (S403)  
1.1 Main Features of the Economy  
Page 16, para. 1.6 
"To respond to the impact of the COVID -19 pandemic, in May 2020, the Government announced the 
Atmanirbhar Bharat Abhiyan (Self -reliant India) programme. It aims to provide a stimulus to various 
sectors and sections of society, to respond to the effects of the current health crisis. " 
This year the Indian government launched the "Self-Reliant India ' campaign which seeks to promote 
the consumption of domestic goods (in substitution of imported goods) and local manufacturing. In 
line with this vision, several actions have been implemented. For example, the Defence Ministry has 
ordered its 4,000 military  shops (Canteens) to stop buying imported goods. With annual sales of 
over USD 2 billion, they make up one of the largest retail chains in India. The October 19th internal 
order from the Defence Ministry stated that, in the future, "procurement of direct i mported items 
shall not be undertaken ".  
Question 1:  Do Indian authorities plan to revert "Self-Reliant India " campaign after the current 
health crisis is over?  
Reply:  "Make in India' was launched on 25 September 2014, to facilitate investment, foster 
innovation, building best in class infrastructure, and making India a hub for manufacturing, design, 
and innovation. The development of a robust manufacturing sector continues to be a key priority of 
the Ind ian Government. The sector has the potential to not only take economic growth to a higher 
trajectory but also to provide employment to a large pool of our young labour force. Since its launch, 
'Make in India ' has made significant achievements. The aim is t o make India a more investor -friendly 
destination and remove bottlenecks hindering and prolonging investment inflows into the country. 
This will also boost the economy and provide direct and indirect employment across various sectors. 
COVID -19 has changed the way how the world works and in fact, it is still changing the economic 
path for the world. But it has certainly taught us the importance of the sustainable and secured 
Global Value Chains, which is aimed by India as a reliable partner and contributor t o the Global Value 
Chains.  
Question 2:  The self -connecting India policy affects trade, for example restrictions on the import 
of tyres which have a significant negative impact on European businesses. We also note the 
publication of new procedures relating to public procurement or the ban on imported products in the 
"Canteen Stores Departments (CSD)". These barriers are constraints to the economic development 
of our operators in India, threatening their local investment capacities.  
Reply:  The policy measure on tyres was undertaken keeping in mind the quality issues. Moreover, 
the non -automatic licen ce requirements are administered in a manner consistent with the rules of 
the WTO Agreement on Import Licensing Procedures.  
The Public Procurement (Preference to Make in India) Order does not discriminate between the 
domestic and international businesses. The clause 13 and 13A of Public Procurement (Preference to 
Make in India), Order 2017 stipulates the provisions for Manufacture under licen ce/techn ology 
collaboration agreement with a foreign manufacturer and the foreign companies may enter into a 
joint venture with an Indian company to participate in the government procurement. Defence 
procurements by Government of India is a Government procurement and is consistent with India 's 
WTO Commitments.  
Question 3:  It has become apparent that imported products, including wine and spirits from the 
EU, are banned from military Canteen Stores Departments (CSDs). Will India reverse this 
discrimination which pre vents the sale of Bottled In Origin (BIO) spirits in Indian military CSDs, 
raising concerns as to compliance with India 's obligations under Article III.4 of the GATT 1994?  
Reply:  India considers that the procurement by Defence is government procurement and  the 
activities taken thereunder are consistent with India 's obligations under the WTO.  WT/TPR/M/403/Add.1  
 
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  2.2 Trade Policy Formulation and Objectives  
Page 35 (para. 2.17) 
Question 4: Could Indian authorities explain if they plan to implement some of the 
recommendations of t he report of the High -Level Advisory Group in September 2019 by the 
Department of Commerce?  
Reply:  The suggestions and recommendations of the report of the HLAG have been shared with the 
concerned Ministries/Departments for their consideration and necessar y action, as deemed fit.  
2.3 Trade Agreements and Arrangements  
Page 38 (para. 2.25) 
Question 5:  How do you see the probability of India joining the RCEP in the near future?  
Reply:  India is not part of RCEP as of now and is not engaging in the RCEP in its current form.  
Question 6:  In the new global scenario, how does the government of India assess the negotiation 
of an ambitious and comprehensive agreement with the EU?  
Reply:  India is committed to work towards early re -initiation of BTIA negotiations with the EU, with 
an aim to deliver early gains for businesses in these tough times. In the recently held 15th India-EU 
Summit [15th July 2020], leaders from both the sides re -affirmed t heir commitment to work towards 
balanced, ambitious and mutually beneficial trade and investment agreements, and agreed to 
establish a regular High -Level Dialogue at Ministerial level to provide guidance to the bilateral trade 
and investment relations. A c onvergence of views on the India -EU BTIA is likely to emerge during 
the first meeting of the aforementioned High -level Dialogue, scheduled for early 2021.  
Page 38 (para.  2.28) 
"Bilateral investment promotion and protection agreements are currently in force with 10 countries 
and regions (72 at the time of the last Review). India also signed bilateral investment treaties with 
3 countries (at the time of the last Review, 14 had been signed but were not in force. " 
Considering the utmost importance of the M ake in India program and the current focus on the 
attraction of FDI, the reduction of bilateral investment promotion and protection agreements 
currently in force draws our attention.  
Question 7:  Do Indian authorities envisage a change to promote the signa ture of bilateral 
investment promotion and protection agreements in order to reap the full benefits of capital 
attraction?  
Reply:  Considerable socio -economic changes have taken place in the last decade and the 
government regulation concerning foreign inve stment has also evolved. Globally, as well, a number 
of countries have reformed their policy on Bilateral Investment Treaties (BITs). India has also 
reformed its BIT regime and introduced the Model BIT 2015 to use as a starting point of negotiations. 
India is actively renegotiating all its Bilateral Investment Treaties based on the Model BIT 2015, 
which are at various stages with thirty -three (33) countries/blocks.  
2.3.2. Regional and preferential agreements  
Pages 37 -38 (paras. 2.22-2.25) 
Question 8:  Could the Indian authorities update the list of bilateral free trade agreements concluded 
and / or under negotiation with a third country? With regard to the plurilateral trade agreements 
which have been concluded in the Asia -Pacific zone, do the Indian authorit ies envisage integrating 
into their foreign trade policy a prospect of joining the Comprehensive and Progressive Agreement 
for the Trans -Pacific Partnership (CPTPP)? and / or the Economic, Regional and Comprehensive 
Partnership Agreement (RCEP)?  WT/TPR/M/403/Add.1  
 
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  Reply:  The updated list of bilateral free trade agreements concluded and / or under negotiation with 
a third country may be accessed at: https://commerce.gov.in/international -trade/trade -
agreements/ . As of now, there is no proposal under consideration to join CPTPP or RCEP.  
Page 38 (para. 2.28)  
Question 9:  Could the Indian authorities clarify the measures adopted to strengthen and guarantee 
the legal certainty and transparency nec essary for investors, including for the benefit of foreign 
investors, following the denunciation of bilateral investment promotion and protection agreements?  
Reply:  The Bilateral Investment Treaties that have been terminated are under the process of active  
renegotiation based on the revised Model BIT 2015 to ensure continuation of legal protection to 
foreign investors.  
2.4. Investment regime  
2.4.3 Investment incentives  
Page 41 (para. 2.39) 
Question 10:  Could Indian authorities explain the details of the Pro duction -Linked Incentive (PLI) 
scheme and give an expected impact of such measure on imports?  
Reply:  The details may be seen at the https://www.meity.gov.in/esdm/pli . The incentives under the 
Scheme are neither contingent upon exports nor local content.  
3.1.1 Customs procedures  
Page 43 (para. 3.7)  
Question 11: Could the Indian authorities confirm their willingness to reform the national customs 
portal in order to improve its use and its better coordinati on with the complexity of sanitary and 
phytosanitary (SPS) regulations?  
Reply:  Indian Customs places utmost importance to efficiency in the Customs clearance and 
National Customs portal is already connected to Plant Protection Authorities for facilitating 
international coordination, based on specific mutual understanding / agreement.  
Page 46  (paras 3.17–3.21 Valuation)   
The Secretariat 's Report provides that India may fix reference prices ("tariff values") for certain 
imported goods, which are used to calcu late the customs duty.  
Question 12:  Could India please explain how such practice is consistent with the WTO Agreement 
on Customs Valuation?  
Reply:  Tariff Values are computed for very few commodities, such as certain edible oils, brass scrap, 
areca nuts, Poppy seeds, gold and silver. The 'Tariff Values ' are calculated on the basis of prevailing 
international prices of these commodities, as published i n the reputed international journals and 
publications. The tariff values are neither arbitrary nor fictitious values in terms of Article 7 of the 
Agreement on Customs Valuation (ACV) as these values are computed on the basis of trends of 
prevailing prices of such or like goods in the international market. These values are also not minimum 
values as these values are accepted as the assessable values for these commodities irrespective of 
whether the declared value for these commodities is higher or lower than  these tariff values. The 
tariff values are not fixed but floating values and are reviewed and revised every fortnight based on 
international prices so as to keep them close to the transaction values. Thus, the Tariff values are 
not inconsistent with the A CV. 
Para.  2 of Rule 9(1) of the Customs Valuation Rules, 2007 (notified in G/VAL/N/1/IND/4) provides 
that the customs value can be determined using reasonable means under the residual method 
"Provided that the value so determined shall not exceed the price  at which such or like goods are 
ordinarily sold or offered for sale for delivery at the time and place of importation in the course of WT/TPR/M/403/Add.1  
 
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  international trade, when the seller or buyer has no interest in the business of other and price is the 
sole considerati on for the sale or offer for sale. "  
Question 13:  Could India please elaborate on its methodology to determine if the value exceeds 
the price at which such or like goods are ordinarily sold or offered for sale?  
Reply:  Rule 9 (1) of the Customs Valuation (D etermination of Value of Imported Goods) Rules, 2007 
prescribed a residual method of valuation. This method is consistent with Article 7 of the Agreement 
on Customs Valuation (ACV) which provides that if the customs value of the imported goods cannot 
be de termined under the provisions of Articles 1 through 6, inclusive, the customs value shall be 
determined using reasonable means consistent with the principles and general provisions of this 
Agreement and of Article VII of GATT 1994 and on the basis of data available in the country of 
importation. This has been given effect in rule 9 (1) of the Indian valuation rules. The condition that 
the value determined shall not exceed the price at which such or like goods are ordinarily sold … 
respects the principle lai d down Article 1 of the ACV. It may be noted that Article 1 of the ACV lays 
down that the customs value of imported goods shall be the transaction value, that is the price 
actually paid or payable for the goods when sold for export to the country of import ation adjusted 
in accordance with the provisions of Article 8. To determine if the value exceeds the price at which 
such or like goods are ordinarily sold or offered for sale, the customs officers have access to the 
values at which such or like goods are i mported contemporaneously.  
3.1.3 Tariffs  
Page 47 (para. 3.25)  
India calculates import duties for apples based on benchmark prices (set up on size/packs, number 
of apples per box and varieties) with different conditions and reference values for each exporti ng 
country. According to our information the last list of benchmark prices dates from 2017.  
Question 14:  Could India provide the piece of internal legislation that lays down the system of 
benchmark prices for apples? Could India indicate if it has any inte ntion to review the list of 
benchmark prices in 2021 and what the process would be, notably if there would be consultations 
with exporting countries?  
Reply:  Apples attract an ad valorem duty of 50% on the transaction value. The observation made 
in the ques tion does not flow from the said paragraph 3.25 (Page 47). Moreover, there is no notified 
tariff value for apples.  
Page 48  (para. 3.27)  
Question 15:  How much will the increase in import duties reduce the available quantity of goods 
as well as their quality for Indian final consumers, according to Indian authorities ' estimates?   
Reply:  The assumption that increasing of average tariffs brings down the availability and quality of 
goods is not substantiated by sound empirical evidence.  
Page 48 (Para. 3.28)  
"The highest rates, above 60%, apply to products such as alcoholic beverages (150%) " 
Question 16:  What justification does India provide for the ext remely high tariffs (150% ad valorem ) 
on alcoholic beverages, which incentivises illicit sales over legitimate imports?  
Reply:  The tariff rate on alcoholic beverage has been prescribed having regard to the nature of 
product and other considerations such as  goods falling in the category of demerit goods. Moreover, 
India's applied rates are within its bound tariff commitments at the WTO.  WT/TPR/M/403/Add.1  
 
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  3.1.4 Other charges affecting imports   
Page 55 (para. 3.51) 
Question 17:  Given India 's dependence on imports of medical de vices, how can the Health Cess 
surcharge (at a 5%) on imported medical devices contribute to the modernization of the Indian 
healthcare system by increasing its costs and reducing its efficiency, according to the Indian 
government?  
Reply:  Health Cess has b een imposed to fund the creation of infrastructure for health services in 
the aspirational districts of the country. This cess would generate resources for health services in 
these districts.  
3.1.5 Import prohibitions, restrictions, and licensing  
Animal rennet and its products  
Pages 55 (para. 3.54) and 56 (Table 3.8)  
Question 18:  Considering that dairy products of HS Chapter 04 are not in the list of import 
prohibitions under item 3.54 of the WTO Secretariat report, could India consider, instead of 
veterinary restrictions, a specific labelling for milk products manufactured using animal rennet, as it 
was previously the case, to allow consumers to make an informed choice?  
Reply:  The restriction on milk products manufactured using animal rennet has been made in 
harmony with domestic regulations under the Food Safety and Standards (Food Products Standards 
and Food Additives) Regulations, 2011 which states use of only non -animal rennet type enzymes for 
making variety of dairy products. In view of domes tic regulations in this regard, India cannot 
consider, instead of veterinary restrictions, a specific labelling for milk products manufactured using 
animal rennet.  
Table 3.10 Import quotas, page 60  shows an import quota for 4795 tonnes of Sandalwood, the 
purpose of which is cited as: "Protect plant life; and conservation of exhaustible natural resources ".  
Question 19:  Can any breakdown be given between White Sandalwood (Santalum album) and Red 
sandalwood (Pterocarpus santalinus)? In any case, how can such a huge amount of a rare wood be 
justified, especially given that Sandalwoods are in the IUCN Red List (Red: near threatened; White: 
Vulnerable)? What are its sources and what trends are foreseen for future levels of use and 
appropriate IUCN certification? Conversely section 3.112 on page 73 indicates an export quota of 
only 310 tonnes of Sandalwoods. How is such an imbalance between the import and export quotas 
justified?  
Reply:  Currently, quota of 310 MT export is fixed for Red Sanders (Pterocarpus santali nus) from 
Artificially Propagated Source grown largely on private/ revenue land. The quota has been fixed after 
a Non -Detrimental Finding (NDF) study by the CITES Scientific Authority in India, in 2012. Red 
Sanders is listed in Appendix II of CITES and as per the provisions of CITES (Article IV of the CITES 
Convention Text), trade in the species listed in Appendix II can be done based on an NDF 
assessment. India is not aware of any IUCN certification mentioned in the question. White 
Sandalwood (Santalum alb um) is not listed under CITES. Sandalwood trade is regulated in many 
countries including India as it is considered a highly -restricted tree species. India has put import of 
Sandalwood under restricted category keeping in view the objectives of conservation  of this rare 
tree and ensuring fair and legal trade. India allows imports of a specified quantity of sandalwood 
every year subject to production of a certificate from the Government authorities of country of export 
stating that export of sandalwood is leg ally permitted from the concerned country. In addition, 
'Certificate of Origin ' from the country of export and phytosanitary certificate are also required. So 
far as India 's domestic legislation is concerned, in Reserved and Protected Areas, the felling of  trees 
is regulated under the Forest Conservation Act, 1980 but in private areas, felling of tree species, 
including Sandalwood, is regulated as per the State specific Acts/State Forest Act/ Felling and Transit 
Rules/Tree Preservation Act, etc., whichever is applicable in the State/UTs. Some States like Kerala, 
Karnataka, Andhra Pradesh, etc. have a specific Act/Rules on Sandalwood.  WT/TPR/M/403/Add.1  
 
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  3.1.6 Anti -dumping  
Page 65 (para. 3.85) 
"During the period under review, India imposed five circumvention remedies, for diclof enac sodium 
(China); cold -rolled stainless steel (China, the EU, Republic of Korea, South Africa, Chinese Taipei, 
Thailand, and the United States); jute sacking bags (Bangladesh); glass fibre (China); and O -Acid 
(China). " 
Related to page 85 (para. 3.166 ) 
According to the Bureau of Indian Standards Act, 2016 (11 of 2016), Steel Products (Quality Control) 
Order, 2018, and Stainless Steel Product (Quality Control) Order, 2018, registration under the 
Bureau of Indian Standards (BIS) procedure to get a S tandard Mark is now compulsory for a list of 
steel products. The BIS registration process can last up to 6 months.  
In November 2019, a Steel Import Monitoring System (SIMS) was introduced: 284 categories of 
steel under chapters 72, 73 and 86 fall now under  the SIMS. Importers of these products must now 
introduce a comprehensive set of information about every single deal 60 -15 days prior to the arrival 
of the merchandise. The process of registration in the SIMS is subject to charges that range from 
500 to 10 0.000 rupees.  
The complete set of trade barriers to imports of steel is damaging European exports to India.  
Question 20:  Is there any data available on the impact of compulsory registration of steel products 
under the Bureau of Indian Standards (BIS) and the new Steel Import Monitoring System (SIMS) on 
the construction sector, especially in the context of a global deceleration, and a very deep 
deceleration in the construction sector?   
Reply:  Steel Import Monitoring system (SIMS) is a tool for collecting gr anular data in advance about 
intended steel imports into India. It has been created to overcome the deficiency in import 
information.  No manual documents are required to be submitted to any public authority for this 
purpose. The compulsory BIS registration  for certain grades is aimed at ensuring that good quality 
steel imports enter the country. Similar quality control regime is followed by most of the countries 
including EU. The impact of QCO and SIMS on the domestic construction sector is insignificant as  
Indian construction sector is not dependent on steel imports.  
3.3.1. Incentives  
Table 3.25 Explicit subsidies, 2015 -21, page 81 and Table A3.3, page 169 -172. 
Pages 81 (Table 3.25 Explicit subsidies, 2015 -21) and 169 -172 (Table A3.3 ) 
Question 21:  Can the Indian government provide a more granular overview of subsidies awarded 
by Indian public authorities per sector, including services?  
Reply:  Various supports provided by India to different sectors can be seen from relevant 
notifications made at the  WTO.  
3.3.2 Standards and other technical requirements  
Page 83 (paras. 3.158 et seq.)  
Question 22:  Could the Indian authorities confirm the measures they intend to adopt in order to 
speed up the processing of business cases, sometimes pending for almost 18  months?   
Reply:  The time norm for grant of licence for foreign manufacturers is normally 180 days provided 
the applicant (foreign manufacturer) complies with all the requisite requirements for grant of licence 
within the stipulated time period. However, p resently foreign inspection visits are on hold due to the 
prevalent restrictions on international travel in view of the ongoing COVID -19 pandemic.  WT/TPR/M/403/Add.1  
 
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  Indian standards  
Page 84 (para. 3.161)  
The report states that in March 2018, there were 19,294 Indian standa rds, 27.3% of which were 
harmonised with international standards.  
Question 23:  Can India explain why there is such a low percentage of Indian standards that are 
harmonised with international standards?  
Reply:  Bureau of Indian Standards (BIS), India's natio nal standard body, has formally accepted the 
'Code of Good Practice for the preparation, adoption and application of standards '. BIS technical 
committees try to align the Indian Standards with the International Standards of International 
Standardization Organizations ISO and IEC, where available and to the extent possible keeping in 
consideration the specific climatic / environmental conditions and technological development of the 
country. In order to facilitate global trade and improve ma rket competitiveness, BIS is continuously 
striving to increase the extent of harmonization of Indian Standards with ISO/IEC standards.  
Indian standards  
Page 84  (para. 3.161)  
The use of Indian standards is voluntary, but may become mandatory if it is stipul ated in a contract 
or referred to in a piece of legislation or in a Quality Control Order issued by the Department for 
Promotion of Industry and Internal Trade (DPIIT).  
Question 24:  Can India explain why it is making standards de -facto mandatory, especiall y since 
India is following international standards only to a very low percentage?  
Reply:  Government notifies technical regulation on, inter alia , the following ground(s):  
1.  Protection of human, animal or plant health  
2.  Safety of the environment  
3.  Prevention of unfair trade practices  
4.  National security  
The regulator evaluates the need for using standard in the technical regulation on the basis of 
objective of the regulation, risk assessment, testing infrastructure required, comments and inputs 
from the stakeholders etc. The use of standard in the technical regulation is therefore finalised after 
due assessment and consultation in conformity with WTO rules.  
Types of conformity assessment  
Page 85 (para. 3.165)  
The report states that Indian standards are regulated by the BIS (Conformity Assessment) 
Regulations, 2018, which provide for different types of conformity assessment schemes, including 
self-certification.  
Question 25:  Does India intend to allow, in the future a larger amount of lower risk products (e.g. 
electronics) to be placed in the Indian market on basis of a Suppliers Declaration of Conformity 
(SDoC) combined with a market surveillance system?  
Reply:  The regulators determine the conformity assessment method on the basis of, inter alia, risk 
assessment, associated market surveillance mechanisms, particular circumstances of the products, 
comments and inputs from the stakeholders etc. The regulators consider all feasible options of 
conformity assessment like self -declaration, third pa rty certification, certification by the government 
authorities etc. while selecting the most appropriate method suitable for the product.  
Question 26:  Does India consider adhering to the 1958 UN -ECE agreement, which defines 
harmonized vehicles safety requirements widely accepted worldwide? Would such membership not WT/TPR/M/403/Add.1  
 
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  spare extra administrative and financial burden on importers and reduce uncertainty to economic 
operators?  
Reply:  India is a signatory of UNECE, WP -29, 1998 agreement and takes active part i n the 
formulation of Global Technical Regulations. India recognizes the issues related to adhering to the 
1958 UN -ECE agreement. It may not be practical to join the 1958 agreement now because of the 
following:   
The safety critical components are mandatorily type approved at the 'component level ', along with 
the requirements of Conformity of Production (COP) and homologation at the 'vehicle level '. These 
components are tested and type approved as per Automotive In dustry Standard (AIS) or Indian 
Standard (IS). Further such compliance requirement is applicable to imported parts also for the 
purpose of manufacturing new vehicles. However, such statutory compliances are required for new 
vehicle production. For the afte r-market purpose, such requirements are not laid out. Therefore, the 
Government of India has initiated the mechanism of QCO to cater to the entire market spectrum 
for ensuring quality of parts.  It has also been observed that UN -ECE 1958 agreement is not ac cepted 
by other regulatory regimes.  
Page 85 ( para.  3.166 ) 
Question 27:  Has the Indian Government taken actions to accelerate the process of certification, 
avoiding undue delays, and make it more consistent and transparent? Has the Indian Government 
considered to recogni ze, for some of these products, certification by EU bodies, which would reduce 
the burden on importers and uncertainty for economic operators?  
Reply:  The certification process is consistent and transparent. Foreign inspection  visits are on hold 
due to the prevalent restrictions on International travel around the world in view of the ongoing 
COVID -19 pandemic. Many steps have been taken by BIS to expedite the process of certification 
wherever inspections are feasible. BIS Labor atory Recognition Scheme (LRS) is available on BIS 
website www.bis.gov.in . As on date, there are no pending application from overseas laboratories 
seeking recognition from BIS in compliance to the provisions of LRS. Na tional Accreditation Board 
for Testing and Calibration Laboratories (NABL) has also taken steps to accredit laboratories outside 
India.  
Question 28:  In order to comply with WTO TBT provisions related to harmonization with 
international standards, will the  Indian government sign the UN -ECE 1958 agreement for reciprocal 
certification of tyres, which already sets up quite strict requirements?  
Reply:  The usage of standards in the Indian Technical Regulations are generally based on, inter alia, 
objectives of th e regulation, available Indian/international standards provided the latter are not 
ineffective or inappropriate means for the fulfilment of the legitimate objectives being pursued, 
testing infrastructure required, comments from the stakeholders etc. India has not joined UN -ECE 
1958 agreement as the same is not found practicable. For products under Technical Regulations, the 
conformity assessment mechanism as prescribed in the respective regulation prevails with due 
consideration to the agreements to which I ndia is a signatory.  
Question 29:  When will the registration period for cosmetics and personal care products be 
extended to 5 years, as a compensation for the significant increase in registration costs?  
Reply:  As per GSR. 763(E) dated 15.12.2020 the Cosme tics Rules, 2020 have been published. In 
these rules the validity of import registration certificate has been extended to 5 years and the 
registration certificate shall remain valid in perpetuity, subject to payment of registration certificate 
retention fe e as specified in the Third Schedule before completion of the period of five years from 
the date of its issue, unless, it is suspended or cancelled by the Licensing Authority.  
Accreditation  
Page 86 (para 3.169)  
The report states that India recognizes some 243 other laboratories (OSLs), which comply with the 
BIS Laboratory Recognition Scheme, 2018; no overseas OSLs have been recognised.  WT/TPR/M/403/Add.1  
 
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  Question 30:  Can India indicate why none of those laboratories are foreign laboratories? Can India 
clarify if accreditation  by an accreditation body member of ILAC/IAF is a sufficient condition for a 
laboratory to be recognised by BIS?  
Reply:  Bureau of Indian Standards under its laboratory recognition scheme (BIS LRS) grants 
recognition to laboratories for testing of products as per the relevant Indian Standards for the 
purpose of conformity assessment schemes of BIS. There is a provision given in clause 12 of BIS 
LRS for recognition of overseas laboratories. The clause 12 of BIS LRS is placed below for reference. 
BIS LRS is av ailable on BIS website www.bis.gov.in under laboratories tab. The decision regarding 
recognition of foreign laboratories will be taken by BIS taking into account the MRA (Mutual 
Recognition Agreement) with the concerned nation. As on date, there is no pend ing application from 
overseas laboratories seeking recognition from BIS in compliance to the provisions of LRS 
(Laboratory Recognition Scheme). It is a pre -requisite that the laboratory desiring BIS recognition 
should have accreditation as per IS/ISO/IEC 1 7025 (latest implemented/concurrent version). The 
accreditation body, through which the laboratory is accredited, shall be a full member of 
International Laboratory Accreditation Co -operation (ILAC) and/or Asia Pacific Accreditation 
Co-operation (APAC) or any other regional accreditation cooperation body.  
Legal Metrology Rules  
Page 86 (para. 3.170)  
Question 31: What is the Indian position on the requirement that the packaged products which are 
subject to the provisions of the Legal Metrology Act f rom 2009 must be labelled with the Maximum 
Retail Price (MRP) before they are imported to India?  
Reply:  Section 18(1) of the Legal Metrology Act, 2009 provides that no person shall import for sale 
any pre -packaged commodity unless such package bears thereo n such declarations and particulars 
as may be prescribed. The requirement of mandatory declarations on pre -packaged commodities is 
made under the Legal Metrology (Packaged Commodities) Rules, 2011 which includes declaration of 
MRP also (inclusive of all ta xes) to be complied before import or in the Custom Bonded Warehouses, 
before custom clearance.  
Labelling  
Page 86 (paras. 3.170 –3.171)  
Question 32:  Are the Indian authorities considering further aligning their food labeling regulations 
with international st andards so as not to force European exporters to make specific adjustments 
exclusively for the Indian market?  
Reply:  FSSAI has considered and aligned majority of the labelling requirements with international 
standards specifically with Codex in line with t he WTO rules. Some labelling requirements like (a) 
name and address of the importer, (b) Food Safety and Standards Authority of India 's logo and 
license number, (c) Non -Veg or Veg logo, name and address of the manufacturer and/ or packer, 
lot/Code/ batch i dentification, date of manufacture/ packing and declaration of food additives are 
specified in the regulation with the objective of having traceability and safety of the food products. 
However, in case of imported packaged food consignments, special dispen sation for rectification on 
above mentioned labelling requirements has been allowed, at Customs bound warehouses in India 
by affixing a single non -detachable sticker or by any other non -detachable method next to principal 
display panel without altering or masking the original label information in any manner.  
Labelling  of Alcoholic Beverages  
Page 86 (para. 3.171)  
Question 33:  While the EU would like to thank India for having taken most of our comments into 
account on 2015 Food Safety and Standards Regulations (Alcoholic beverages Standards), we still 
have some concerns in relation to this Regulation. As already expressed in TB T Committees, could 
Indian authorities consider alignment with OIV standards, as some technical specifications WT/TPR/M/403/Add.1  
 
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  (e.g.:  maximum alcohol content, sugar content, some wines ' definitions) may not be in line with 
international standards and could result in an ad verse impact for international trade?  
Reply:  The majority of the standards prescribed in the FSS Alcoholic Beverages Regulations, 2018 
have been aligned with OIV in line with WTO commitments. The issues highlighted have been 
discussed several times in the meetings of Scientific Panel on Alcoholic Beverages and the alcohol 
content, sugar content etc. have been established after extensive deliberations. In addition to this, 
alignment of the methods of analysis of alcoholic beverages with the OIV is under proc ess. 
Question 34:  FSSAI is in the process of reviewing the labelling regulation (Food Safety and 
Standards (FSS) (Packaging and Labelling) Regulations). In addition to the labelling requirements 
stipulated in the Regulations, specific labelling requirements apply to alcoho lic beverages, food 
additives, health supplements, and organic food. In light of the ongoing review of labelling rules by 
FSSAI, and in particular Food Safety and Standards (FSS) (Packaging and Labelling) Regulations, is 
there any update on the actions ini tiated to cancel the labelling requirement related to "standard 
doses " and for the mandatory labelling of the "minimum retail price "?" 
Reply:  The specific doses requirements are considered necessary where the Food Business 
Operators (FBO) wants to deliver any health claims on the label. For this purpose, these 
requirements are specified in the new FSS (Labelling & Display) Regulations, 2020 also. For 
declaration of minimum retail price, the Food Business Operators need to comply with labelling 
requirements provided in Legal Metrology Act, 2009 (1 of 2010) and the Rules made there under.  
Question 35:  In June 2020, FSSAI issued a notification approving a number of food additives in 
relation to "Distilled Spirituous Beverages". According to the Food Safety and Standards (Food 
Products Standards and Food Additives) Regulation, 2011, "Distilled Spirituous Beverages" are 
distilled beverages with more than 15% alcohol, whilst products with less than 15% alcohol are 
described as "Aromatized alcoholic beverages". The notification from FSSAI clarifies that the 
additives under consideration have to be inserted "in Appendix A, Table 14, in the food category 
14.2.6 related to "Distilled Spirituous Beverages"" of the Food Safety and Standards (Food Products 
Standards and Fo od Additives) Regulation, 2011. No mention is made to the food category 14.2.7 
related to "Aromatized alcoholic beverages", whose permitted additives are listed in separate rows 
right after the ones dedicated to "Distilled Spirituous Beverages" (Distilled Spirituous Beverages and 
Aromatized alcoholic beverages being two separate food categories, they are treated as such). The 
report refers to specific labelling requirements applying to alcoholic beverages and food additives. 
Will FSSAI allow the use of cert ain food additives, such as colouring, in aromatised alcoholic 
beverages?  
Reply:  FSSAI vide direction dated 22nd June 2020 operationalised use of food colours "Tartrazine, 
Carmoisine, Brilliant Blue, Sunset yellow and Ponceau 4R " in the food category 14.2. 6- Distilled 
Spirituous Beverages. Further, vide direction dated 7th December 2020, revised provisions for used 
of these colours and one additional colour Allura Red was operationalised for use in food category 
14.2.6 - Distilled Spirituous Beverages. Furth er, as per the appendix A, the colour namely caramel, 
beta carotene and grape skin extract are allowed in aromatised alcoholic beverages.  
Additional question related to standards  
Question 36:  What is the justification to introduce a national certification scheme for automotive 
glass when the safety of all glass pieces mounted in vehicles is already consistently ensured by ECE 
R43? 
Reply:  The Safety Glass (Quality Control) Second Amendment Orde r, 2020 dated 18th September 
2020 has clarified with the following proviso "provided further that nothing in this order shall apply 
to safety glass in the vehicle imported in India by vehicle manufacturer under the provisions of 
Rule 126 of CMVR, 1989 " WT/TPR/M/403/Add.1  
 
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  3.3.3. Sanitary and phytosanitary requirements  
Question on section 3.3.3 in general, Page 86 
New Indian Requirement of GM free certificate  
Question 37: Could India explain why it considers necessary to impose such a burden on trading 
partners with a high prev alence of non -GM food on their domestic market and a robust regulatory 
regime governing the use of GMs?  
Reply:  It may be noted that Genetic Engineering Approval Committee (GEAC) is empowered under 
the Rules for the Manufacture/Use/Import/Export and Storage  of Hazardous Microorganisms, 
Genetically Engineered Organisms or Cells, 1989 of the Environment Protection Act (EPA) 1986 for 
approval of proposals relating to release of genetically engineered organisms and products into the 
environment. The Committee ha s so far not approved any of the crop varieties of Genetically 
Modified/Engineered origin, listed in the above -mentioned Order. In pursuance to above, FSSAI is 
only seeking a certificate from exporting country to ascertain the GM free status of listed crop s. 
Further, FSSAI has issued clarification regarding non -applicability of this requirement for import of 
processed food vide letter dated 12th October 2020.  
Question 38:  For 19 crops listed in Annex I, there is no authori zation for GMOs in the EU. To avoid  
imposing an unnecessary administrative burden, could the exporting country provide a general 
non-GM origin statement to India on such crops?  
Reply:  As of now, this requirement is applicable for import into India and relaxation has not been 
granted to any country.  
Question 39:  According to Article 12(2) of Regulation (EU) No 1946/2006, implementing the 
Cartagena Protocol on biosafety to the Convention on Biological Diversity, exporters of GMOs 
intended for direct use as food or feed or for processing must a ccompany their exports with a 
document stating that the export contains or consists of GMOs. Could India explain why it considers 
that this obligation for accompanying documentation of GMOs does not provide the necessary 
assurance to the importers and to t he authorities?  
Reply:  It may be noted that Genetic Engineering Approval Committee (GEAC) is empowered under 
the Rules for the Manufacture/Use/Import/Export and Storage of Hazardous Microorganisms, 
Genetically Engineered Organisms or Cells, 1989 of the Env ironment Protection Act (EPA) 1986 for 
approval of proposals relating to release of genetically engineered organisms and products into the 
environment. The Committee has so far not approved any of the crop varieties of Genetically 
Modified/Engineered origi n, listed in the above -mentioned Order. In pursuance of the above, FSSAI 
is only seeking a certificate from the exporting country to ascertain the GM free status of listed 
crops. Further, FSSAI has issued clarification regarding non -applicability of this r equirement for 
import of processed food vide letter dated 12th October 2020.  
3.3.3 Sanitary and phytosanitary requirements, page 86 
Page 88 (para. 3.175)  
Question 40:  Are Indian authorities considering the simplification of the Plant Quarantine by means 
of producing a negative list, to apply the same treatment for the same pest?  
Reply:  Yes, the same is under consideration.  
Page 88 (para. 3.176)  
Question 41:  Are Indian authorities considering the use of additional treatments extended 
worldwide to comply with Plant Quarantine requirements?  
Reply:  Yes, the same will be considered on case to case basis without compromising the plant bio -
security.  WT/TPR/M/403/Add.1  
 
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  Page s 88-89 (paras. 3.178,  3.181 and 3.184)  
Question 42:  Noting that the sanitary standards imposed in India on imported products may be 
more demanding than those imposed on Indian products, could the Indian authorities explain how 
they plan to articulate the divergence of standard s and these import refusals with obligations under 
the SPS and TBT agreements. Can the Indian authorities provide the scientific basis to justify the 
refusal of these varieties?  
In addition, it is necessary to underline the lack of transparency concerning the attribution of health 
certificate for certain products such as powdered milk, the health certificate for powdered milk 
intended for calf feed. The health certificate for these products is not a public document and is given 
hand-to-hand to certain opera tors only (see paragraph 3.184).  
Reply:  India's sanitary standards for import of animal and animal products are based on guidelines 
of the World Animal Health Organisation (OIE). India is aligning its standards with OIE to extent that 
satisfies India 's Appropriate Level of Protection (ALOP). Harmonization of domestic standards with 
international standards is a dynamic, and evolving activity. The sanitary standards are being 
reviewed based upon the extant guidelines of the World Animal Health Organisation  (OIE). The 
diseases listed in the import guidelines are OIE -listed diseases which are also notifiable diseases in 
India in accordance with the provision in the "The prevention and Control of Infectious and 
Contagious Diseases Act, 2009". India follows the  principle of transparency and all the Indian 
veterinary health protocols including the health certificate for powdered milk intended for calf feed, 
are available in the public domain. Though the Indian veterinary health protocols are available in 
the publ ic domain, the applicable protocols are also being shared with importers along with Sanitary 
Import Permits. The health certificate for powdered milk intended for calf feed may be seen at the 
following  link; https://dahd.nic.in/sites/default/filess/Veterin ary%20Certificate% 20for%20import  
% 20of%20animal%20feed.pdf.  
Page 90 (para. 3.192)  
Question 43: Can India explain why they consider necessary to impose such a burden on trading 
partners with a high prevalence of non -GM food on their domestic market and a robust regulatory 
regime governing the use of GMs?  
Reply:  It may be noted that Genetic Engineering Approval Committee (GEAC) is empowered under 
the Rules for the Manufacture/Use/Import/Export and Storage of Hazardous Microorganisms, 
Genetically Engineered Organisms or Cells, 1989 of the Environment Protection Act (EPA) 1986 for 
approval of proposals relating to release of genetically engineered organisms and products into the 
environment. The Committee has so far not approved any of the crop varieties of Ge netically 
Modified/Engineered origin, listed in the above -mentioned Order. In pursuance to of the above, 
FSSAI is only seeking a certificate from the exporting country to ascertain the GM free status of 
listed crops. Further, FSSAI has issued clarification  regarding non -applicability of this requirement 
for import of processed food vide letter dated 12 October 2020.  
Question 44:  Hence, the requirement of this certificate will only create a new administrative hurdle. 
Would Indian authorities exempt from this  requirement at least the listed crops for which no GMOs 
are authorised in the exporting country for food use?  
Reply:  As of now, this requirement is applicable for import into India and relaxation has not been 
granted to any country.  
3.3.6. Government proc urement  
Page 101 (para. 3.231)  
Question 45:  Could Indian authorities indicate an approximate date for the inclusion of foreign 
companies in the e -GeM?  
Reply:  No such timelines fixed as of now. However, Indian subsidiaries of foreign companies can 
bid in th e domestic government procurements in Rupee terms in GeM.  WT/TPR/M/403/Add.1  
 
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  Page 102 (para. 3.234)  
Question 46:  Have Indian authorities calculated the potential negative impact of the threshold 
increase in the global tender enquiries (GTEs) to 2 billion rupees, in terms of competitiveness and 
technology transfer?  
Reply:  There is no bar on issuance of Global Tender Enquiries on any values. Only for small values 
global tender enquiries (GTEs) upto INR 2 billion, it has been stipulated to take the prior approval 
of the competen t authority, notified for this purpose.  
The Public Procurement (Preference to Make in India) Order, 2017, as revised  
Page 104 (paras. 3.243 -3.245)  
Question 47:  How does India intend to reconcile the above protectionist provisions that act as a 
clear disincentive for any foreign investment with its declared aim to increase the inflow of FDIs?  
Reply:  Reply to the question above may be referred. Moreover, India has  a liberal FDI Policy, where 
FDI is permitted up to 100% in most of the sectors under the automatic route, subject to sectoral 
guidelines and regulations. Sectors under Government approval is mentioned in India 's FDI Policy, 
which is available on the offic ial website of the Department for Promotion of Industry and Internal 
Trade i.e., https://www.dipp.nic.in . 
Question 48: The September 2020 revision of the said Public Procurement Order added a reciprocity 
clause. Fore ign entities from countries which do not allow Indian companies to participate in their 
government tenders will not be permitted to take part in procurement procedures in India. Can India 
explain how this provision will work in practice? How will Indian pr ocuring entities establish if a given 
country allows or does not allow Indian companies into its procurement procedures?  
Reply:  The designated nodal ministries would be responsible for providing details of the foreign 
companies under the Reciprocity Clause  of PPP -MII Order 2017 to all its procuring entities for 
appropriate reciprocal action . As per the information available, no foreign company has been 
debarred under Reciprocity Clause.  
3.3.7. Intellectual property rights  
Page 105 (para. 3.247)  
Question 49:  We can congratulate the Indian program for the promotion and facilitation of 
intellectual property IP among Indian start -ups: Can the Indian authorities confirm that this 
intellectual property program is also open to foreign sta rt-ups? 
Reply:  Yes, the Scheme for Facilitating Start -Ups Intellectual Property Protection (SIPP) is open for 
foreign start -ups as well. The foreign start -up has to fulfil the criteria for turnover and period of 
incorporation/ registration as per start -up India Initiative.  
Page 106 (para. 3.249)  
«(…) the Intellectual Property Appellate Board (IPAB) (…) deals with appeals regarding the granting 
of patents and the registration of copyright, industrial designs, geographical indications (GIs), and 
plant varieti es ». 
Question 50:  The existence of an appeal body specific to intellectual property is a positive element 
in the texts, but this structure does not function satisfactorily and has kept many cases blocked for 
several years awaiting legal resolution. Does I ndia foresee an effective ramp -up of the work of IPAB?  
Reply:  As per the provisions of Section 84 and Section 87 of the Trademarks Act, 1999, IPAB 
consists of a Chairman, a Vice -Chairman and such number of other members, as the Central 
Government may deem fit and subject to the other provisions of this act, the juri sdiction, powers 
and authority of the Appellate Board may be exercised by the benches thereof. The Bench shall 
consist of 1 Judicial Member and 1 Technical Member. In compliance to said provisions, Government WT/TPR/M/403/Add.1  
 
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  of India has appointed 5 Technical Members (Pat ent-1, Trade Mark -2, and Copyrights -2) in 
August  2020. As a result of which, IPAB is fully functional, with Chairperson and Technical Members 
hearing the appeals that lies within its jurisdiction.  
3.3.7.3. Changes to the IPR institutional and legal framewo rks  
Page 106 (para . 3.249) that in 2016, the Copyright Board merged with the Intellectual Property 
Appellate Board (IPAB).  
Question 51:  We would be interested to know if India provide more information on the role, powers, 
duties and operation of the Copyr ight Board within this new merger?  
Reply:  After the merger of Copyright Board with the IPAB, there is no separate Copyright Board 
within the Intellectual Property Appellate Board (IPAB). Two Technical Members for Copyrights have 
been appointed in the month  of August 2020. After joining of these two Technical Members, IPAB is 
fully functional and is conducting regular hearing of copyright cases. The Appellate Board is a 
statutory authority constituted under section 11 of the Copyright Act, 1957 primarily to provide for 
specialized adjudication on the matters of compulsory licen ces, statutory licen ces, rectification of 
registration of copyright done by the Copyright Office, to decide the royalty disputes between authors 
and publishers and appeals on decisions of Registrar of Copyrights. Further, the Appellate Board sets 
royalties for statutory licen ces for broadcasting and also sets royalties for Compulsory licen ce for 
broadcasting.  
Page 106 (para. 3.250)  
"Draft amendments to the Copyright Rules, GI Rules, Designs Rules, and Patents Rules are under 
consideration. " 
Question 52:  Could India elaborate further on these considered amendments? What do these draft 
changes entail? What are the next actions planned to strengthen the protection of EU GIs in Ind ia? 
Reply:  Government of India realizes that technology is a key input in industrial production. The 
entire ecosystem of research and innovation, technology absorption and marketing is regularly 
reviewed and efforts are made to provide conducive environmen t for technology generation and 
absorption. In this regard, IPR Rules including the Patents Rules, the Trade Mark Rules, the GI Rules, 
the Design Rules and Copyright Rules are being regularly amended to achieve the objective of 
removing procedural inconsis tencies and unnecessary steps in processing of applications to speed 
up grant/registration and final disposal. By amending the Rules, the procedures are made more 
compact, time -bound, user -friendly and compatible for e -transactions and filing and processin g of 
patent applications are made affordable to Start -ups and Small entities. As an update, recently the 
Patent Rules were amended. Amendments made are related to the working of Patented Invention in 
India as required under section 8 in Form 27 and changes  to the provisions of filing of Priority 
documents under Rule 21 of the Rules. In order to simplify the process, the Patent Amendment 
Rules 2020, allows filing of statement on the commercial working of patent within 6 months from 
the close of FY instead of  3 months as prescribed earlier. Further, only one form maybe filled in 
respect of multiple patent provided all of them are related patents, and all such patents are granted 
to the same patentee.  
Further, the Geographical Indication Rules have been amended  to give boost to the registration of 
Authorised users of a Geographical Indications product. Amendments have reduced the fees to be 
paid for the GI registration process and eased the procedure for registration of an authorized user 
of a registered GI.  
The Copyright Amendment Rules, 2019 are in the process of being finalized. They seek to ensure 
smooth and flawless compliance in the light of the technological advancement in digital era and to 
bring them in parity with other relevant legislations. The same s hall amend the existing Copyright 
Rules, 2013, with the objective of having ease in operation by the way of adopting electronic means 
for service and communication and maintaining accountability and transparency within copyright 
societies.  WT/TPR/M/403/Add.1  
 
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  In case of Indus trial Designs, its is contemplated to provide additional fees concession for certain 
categories of applicants. Also, it is proposed to incorporate International System of classification for 
registration of Industrial designs.  
Protection for EU GIs in Indi a: GI is a territorial intellectual property right limited to the geographic 
region where protection is granted and is available to its registered producers or authorised users. 
At present, no "world " or "international " geographical indication (GI) right e xists. Like all intellectual 
property rights, the rights to geographical indications (GI) are enforced by the application in an 
appropriate court of law. The primary advantage of getting a GI certification is ease of proving the 
identity of the product bef ore the court of law. Once the identity is established, legal protections as 
provided in the law can be immediately provided for any misuse or infringement of right. The 
sanctions provided for in national legislation can be civil (injunctions restraining o r prohibiting 
unlawful acts, actions for damages, etc.), criminal, or administrative in nature.  
Page 107 (para. 3.252)  
"There is no specific legislation to protect data -exclusivity rights in India. There was an attempt to 
introduce protection for data excl usivity in agro -chemicals, but the provisions were removed from 
the Pesticide Management Bill, 2008, which was revised in 2016. " 
Question 53:  Can India clarify how data -exclusivity rights are protected from unfair commercial 
use? 
Reply:  India provides requ isite protection to data in line with Article 39.3 of the TRIPS Agreement. 
The obligation on the authorities is to keep the test data secret and not allow it to be accessed by 
third parties through unfair means. India complies completely with its obligatio ns under the TRIPS 
Agreement.  
Question 54:  Are there any plans for issuing legislation to protect data -exclusivity rights?  
Reply:  There are no such plans as of now.  
Page 107  (para. 3.253)  
Question 55:  In line with its NIPR Policy, could India indicate if i t intends to adopt a specific 
legislation to protect trade secrets?  
Reply:  India covers trade secrets under the common, civil and criminal laws. Trade secrets are dealt 
under Information Technology Act, Indian Penal Code 1860 and section 27 of the Indian C ontracts 
Act, 1872. At present, there is no plan to adopt any specific legislation to protect trade secrets.  
Question 56: Even if a toolkit to help stakeholders protect trade secrets was developed by the 
CIPAM in 2019, is there any plan to further develop a more binding regulation?  
Reply:  The trade secrets tool -kit aims to guide Micro, Small & Medium Enterprises (MSMEs) and 
Start-ups regarding protection of trade secrets. At present, no specific proposal for bringing any 
other legislation for trade secrets is being considered.  
Page 107 (para. 3.254)  
"Over the review period, India acceded to various WIPO treaties (Table 3.45) ". 
Question 57:  Is India planning accession the WIPO administered Lisbon Agreement for the 
Protection of Appellations of Origin and their International Registration? Is India planning accession 
to the Geneva Act of the Hague Agreement Concerning the International Registration of Industrial 
Designs?  
Reply:  India is a member signatory of several WIPO administered treaties and has recentl y acceded 
to the WIPO Copyright Treaty, WIPO Performers and Phonograms Treaty and also the Nice, Vienna 
and Locarno Agreements. India is currently examining WIPO administered Lisbon Agreement for the 
Protection of Appellations of Origin and their Internati onal Registration agreements and Geneva Act WT/TPR/M/403/Add.1  
 
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  of The Hague Agreement concerning the International Registration of Industrial Designs agreement 
and evaluating their suitability in terms of its national interest.  
Page 108 (Table 3.45 - Accession to WIPO treati es, 2015 -19) 
Question 58:  Taking into account that legislation on the protection of geographical indications has 
been in force since 1999, does the government of India intend to join the Geneva Act?  
Reply:  India is a member signatory of several international agreements and has rec ently acceded 
to the WIPO Copyright treaty, WIPO Performers and Phonograms Treaty and also the Nice, Vienna 
and Locarno Agreements. India is currently examining other international agreements and 
evaluating their suitability in terms of its national intere st. 
Page 108 (para. 3.255)  
Question 59:  Are the Indian authorities planning to facilitate the registration process for foreign 
geographical indications?  
Reply:  GI is a territorial intellectual property right limited to the geographic region where protectio n 
is granted and available to its registered producers or authorised users. The GI Act, 1999 is 
applicable to national and foreign applicant at par within the territory of India.  
Page 109 (para . 3.260)  
Question 60:  In 2017, expedited processes were extende d to the entire trademark registration 
process. Yet, improvements are not felt across the board yet, based on industry 's feedback, largely 
due to a backlog of older cases. How does India intend to ensure that improvements referred to in 
the report may be f elt on the ground and how does India intend to clear the backlog of "old cases " 
so that industry may see tangible improvements on the ground? Does India have any plans to further 
revise its trademark system to improve its efficiency, through the reinstatem ent of hearings and the 
introduction of a streamlined procedure to deal with straightforward administrative matters?  
Reply: In order to expedite the process of registration of IPRs including Trademarks a slew of 
initiatives have been taken by the Govt of I ndia. The IP offices under the CGPDTM have been 
modernized. Conscious efforts have been made to develop a robust e -service delivery system, 
including real -time public dissemination of dynamic IP knowledge through innovative tools. 
Amendments have been carr ied out in specific IP legislations for simplification of procedures, 
reduction of forms, incentivizing e -filing and reducing compliance burden. Following specific initiates 
have been taken to address the issue of huge backlog of cases and to improve Trade mark system:  
(a) Amendment in Rules: By amending the Rules, procedures have been simplified, made more 
compact, time -bound, user -friendly and compatible for e -transactions. In this regard, 74 existing 
Forms under Trademark Rules have been replaced by 8 con solidated Forms; single application form 
for all types of trademark applications have been provided; process for determination of well -known 
trade -mark laid out; express provision for filing applications for sound marks provided; procedures 
relating to reg istration as Registered User of trademarks simplified; and expedited processing of an 
application right up to registration stage has been provided.  
(b) Manpower Augmentation: Besides amendment in Rules, manpower of Trademark office is also 
being strengthen ed. In order to remove the backlog and enable speedy examination/disposal of IP 
applications, manpower in IP Offices has been augmented substantially. In Trademarks, the strength 
of Examiners of Trademarks & GI has been increased through recruitment on reg ular and contract 
basis. Apart from initial induction trainings after the appointment and/or promotion, technical 
manpower in Trademarks is continuously given trainings/refresher courses for improvements in skills 
for examination and grant/registration of IP applications at RGNIIPM, Nagpur and also at foreign IP 
Offices.  
(c) Feedback mechanism: The mechanism to lodge feedback/suggestions/complaints in respect of 
issues related to functioning of the IP offices has been set up in IPO website for the benefit of 
stakeholders. A team acts promptly on stakeholders ' suggestions/grievances and communicate 
appropriate response through e -mail WT/TPR/M/403/Add.1  
 
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  All these efforts have led to following improvement and achievement in Trademark registration 
process:  
• Period of examinatio n of new trademarks applications is reduced from 13 months to less than 
30 days.  
• Trademark is registered in about 6 months from date of application, if there is no objection or 
opposition filed, as compared to 3 -5 years required earlier.  
• About 50% app lications are accepted at 1st stage as against only 7% earlier.  
India is also working to reduce the time taken in cases where opposition is filed against the 
application.  
Page 110 (para. 3.265)  
It is mentioned that registration of works is not mandatory t o get copyright protection, but 
registration is recommended. We understand that registration is done digitally.  
Question 61:  Could India please elaborate further on this registration process? How long does a 
registration last? How are disputes over regist ered works handled?  
Reply:  An application for registration of copyright can be filed online on the website of the Copyright 
Office https://copyright.gov.in/  under "e-filing application " Tab, with a facility of payment of fee 
through e -payment gateway. The applicant is also required to upload copies of the work and other 
documents supporting their authorship/ownership online. Once, the application is examined, it is 
either approved by the  competent authority if found to be in order, or if the application is found to 
be incomplete in any respect, then a letter conveying the discrepancies is forwarded to the applicant, 
thereby providing 45 days ' time to furnish necessary compliances. The com pliances are also 
electronically filed. The registration exists for the term of a Copyright, which is lifetime of the author 
+ 60 years as per Section 22 of the Copyright Act, 1957. Further, disputes regarding registered 
works and appeals against the order  of the Registrar of Copyrights are to be made before the 
Intellectual Property Appellate Board.  
Page 110 (para. 3.268)  
The report mentions that to further curb online piracy, in 2018, draft amendments to the 2011 Rules, 
which propose additional requiremen ts (e.g. traceability and proactive filtering of content), are under 
consideration.  
Question 62:  We would be interested to know more about these considered amendments. What do 
they entail? When does India expect these to be entered into force?  
Reply:  The proposed Intermediary rules amendments have a major focus on expeditious and 
effective removal of  unlawful contents; identification of those users uploading sensitive content likely 
to impact sovereignty and integrity of India or create a public disorder. The proposed rules also 
promote usage of automated tools for identification of child sexual abuse  material. While online 
piracy is considered unlawful, the existing 2011 rules already cover them adequately and no new 
additional provision is being proposed in the new proposed Intermediary rules. The rules are 
however, under process and have not been re leased as yet.  
Page 111 (para. 3.267)  
"Several measures to address counterfeiting and piracy are laid down in the draft National 
E-commerce Policy, which is still under consultation. " 
Question 63: How the new National E -commerce Policy will address counterfeiting? When will the 
National E -commerce Policy be adopted?  
Reply:  The first draft e -commerce policy document was placed in public domain, on 
23 February  2019, for comments/ suggestions. Comments from over 100 stakeholders, including 
companies, In dustry associations, think tanks were received. Inter Alia , suggestions on treatment WT/TPR/M/403/Add.1  
 
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  of counterfeit goods, were also received. Based on the observations/comments received, the policy 
is being finalized. Details of measures incorporated, for addressing coun terfeit issues, cannot be 
disclosed prior to finali zation of the policy.  
Page 112 (para. 3.271)  
"Right holders have 10 days (3 days for perishable goods) from the date of notification by Customs 
to give evidence of genuineness; otherwise, the imports are r eleased. ", 
Question 64:  Could India clarify if it really means "evidence of the genuineness " or not instead 
"evidence of the infringement ". 
Reply: It is clarified that the Intellectual Property Rights (Imported Goods) Enforcement Rules 
require right holder  to provide evidence of infringement and not genuineness.  
Page 112 (para. 3.272)  
Question 65:  Does India seize exported goods on patent infringements and how?  
Reply:  As far as border controls are concerned, the IPRs are enforced at time of importation thro ugh 
Intellectual Property Rights (Imported Goods) Enforcement Rules in compliance of Article 51 of 
TRIPS.  
Question 66:  According to the Secretariat Report patented goods may no longer be registered in 
the ICeR. Is there any other manner for patent holders to enforce their rights at Indian customs 
without having recourse to a court?   
Reply:  Through latest amendment to the Intellectual Property Rights (Imported Goods) Enforcement 
Rules in 2018, protection from violation of the Patent Act 1974 at time of importation was deleted. 
Therefore, there are no provisions for a patent holder to registe r with Indian Customs.  
Page 113 (para. 3.274)  
Question 67:  Is there a government of India strategy to control the production and export of 
counterfeit goods?   
Reply:  India has a strong legal and judicial system to prevent counterfeiting and has stringent 
provisions under several laws to discourage and dissuade counterfeiting of goods. The Trademarks 
Act of 1999 and the Copyright Act of 1957 empower authorities to act to prevent infringement, 
including counterfeit goods. The Drugs and Cosmetics Act makes th e sale of "misbranded " and 
"spurious " drugs and cosmetics a criminal offense. In -fact, in view of dramatic growth in counterfeit 
drugs, the government has also introduced a "whistleblower " program with rewards for those 
providing information on counterfeit  products. The Prevention of Food Adulteration Act regulates 
food safety and provides harsh penalties for "misbranded " food products - including life imprisonment 
for cases of counterfeit products resulting in death. The Patents Act of 2005 protects the rig hts of 
owners of patented products, such as technology and pharmaceutical products. In 2007, government 
adopted the Intellectual Property Rights (Imported Goods) Enforcement Rules (IPR IG), a set of 
regulations designed to stop the importation of infringin g goods into the country. These rules give 
Customs Authorities power to deal with counterfeit and pirated goods at the borders. IP rights 
holders can file IPR notices that enable Customs to inspect incoming shipments through any of 
country 's 35 major ports  against a database of registered rights holders. Courts may also grant an 
injunction under Section 135 of the Trade Marks Act, 1999 by which a person is required to perform 
or is restrained from performing a particular act like stopping the sale of counte rfeit product or 
destroying them.  
The Geographical Indication of Goods (Registration & Protection) Act, 1999 provides provision 
related to offences and penalties related to GI counterfeits. The Act penalizes falsifying and falsely 
applying GIs, selling go ods to which false GI is applied, false representation that a GI is registered, 
improper description of the place of business as connected with the GI Registry, falsification of 
entries in the register.  WT/TPR/M/403/Add.1  
 
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  The India Penal Code, 1860 also contains provisions to deal with counterfeiting and piracy. The 
Consumer Protection Act, 2019 can also be invoked by the consumer against the counterfeiters by 
filing complaints in the appropriate consumer court.  
The Bureau of Indian Standards Act, 2016 also contains penalti es those who use the standards (ISI) 
Mark without obtaining the requisite licen ce. The bureau investigates and detects the case of misuse 
of the ISI Mark and prosecutes the offenders wherever required.  
Apart from creating legal deterrence, a large number of awareness and sensitization programmes 
are carried out to encourage customers to buy original products and inform them about the 
consequences of buying fake and counterfeit products. Social media campaigns are also undertaken 
by several departments to c reate awareness on this front and help customers distinguish between 
original and counterfeit products.  
Further, similar measures are being taken to strengthen enforcement agencies through regular 
training and sensitization programs which are regularly or ganised by Cell for IPR Promotion and 
Management (CIPAM) with Police, Customs and Judiciary.  
Question 68:  Does the government of India intend to participate in the WCO Interface public 
members? Could India explain the reasons for not participating in the i nitiative?  
Reply:  Initially when the World Customs Organisation had introduced the Interface Public Members 
(IPM), India intended to join it; but much progress could not be made. Thereafter, the WCO 
communicated that the platform had been handed over to a private entity.  Further it was learned 
that no major country had joined the platform as they have their own solutions in this regard.  
Question 69:  Is India considering its participation in the WCO Interface Public -Members (IPM) which 
allows for real -time communication between customs officers and the private sector to assist in the 
identification of counterfeit products? Does India have a mechanism to identify recidivist exporters?  
Reply:  Initially when the World Customs Organisation had introduced the Interface Public Members 
(IPM), India intended to join it; but much progress could not be made. Thereafter, the WCO 
communicated that the platform had  been handed over to a private entity.  
Further, it was learned that no major country had joined the platform as they have their own 
solutions in this regard.  
Question 70:  What the IPR enforcement toolkit consist s of? Which are the measures put in place 
to counter the export of counterfeit and pirated goods and namely for pharmaceutical products, 
medicines and medical equipment?  
Reply:  The IPR enforcement toolkit made by a joint collaboration of Cell for IPR Promot ion and 
Management (CIPAM) & Federation of Indian Chambers of Commerce and Industry (FICCI), for the 
police officials, is to provide a standardised ready reckoner for law enforcement agencies in India in 
relation to enforcement efforts against IP crimes, s pecifically counterfeiting and piracy. The 
Directorate -General of Foreign Trade (DGFT) has provisions in place for barcoding and seriali zation 
of pharmaceutical export products in the country. Further, DGFT has formalized a procedure for 
export of Drugs & Pharmaceuticals, covered under the provisions of Drugs & Cosmetics Act, 1940, 
wherein every exporter of Drugs & Pharmaceuticals at the time of shipment shall submit, along with 
other required documents, the following: (i) A copy of Certificate of Analysis issued by the 
manufacturer or approved laboratory of the importing country / FDA or a laboratory approved by 
Drugs Controller under Drugs & Cosmetics Act, 1940, for the subject product.  
Question 71:  How does India intend to address and phase out the tax di scrimination against bottled 
in origin products as part of widely diverging state tax regimes, considering that high taxation and 
tax discrimination on imported products help fuel illicit trade – including the rise of counterfeit 
products?  
Reply:  Matters p ertaining to procurement and sale of alcoholic liquor for human consumption is a 
subject under the State List in the Seventh Schedule of the Constitution of India. State Governments WT/TPR/M/403/Add.1  
 
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  are to take decisions on such matters taking into consideration all releva nt factors, including the 
de-merit nature of such goods  
4.1.1 Measures affecting imports  
Change in applied duties  
Page 116 (para. 4.6)  
Question 72:  Which consideration and measures does India take to ensure that "goods en route " 
are not affected by sudden changes in duties?  
Reply:  Section 15 of Customs Act, 1962 prescribes the date for determination of rate of duty. As 
per the Act, the date for deter mination of duty shall be:  
(a) date of filing of Bill of Entry, or,  
(b) date when Entry Inward is granted to the vessel, provided Bill of Entry is filed before Entry 
Inward.  
India has been consistent with this policy and it applies equally to increase or decrease in the rate 
of duty.  
Import bans  
Page 116 (para. 4.9)  
India has introduced import bans for cashew nut kernels and pulses.  
Question 73:  How do these measures comply with GATT Article XI? The measures have now been 
in place for three years. When do es India intend to return to a normal import regime? Will the applied 
rate be set at the level which prevailed before these import restrictions were implemented?  
Reply:  Such necessary interventions are made based on various factors including cost of produc tion, 
overall demand -supply situation in the domestic and world market, domestic and international 
prices, etc. Otherwise, import of most of items is free. Moreover, these measures are temporary in 
nature and are reviewed regularly.  
4.1.2 Measures affectin g exports  
Export restrictions  
Page 117 (para. 4.13)  
This paragraph mentions export restrictions on onions in 2018. A similar measure was again 
introduced on onions during 2020.  
Question 74: How does India take into consideration the effects of these restr ictions on food 
security in importing developing countries and the price effect such measures may have in local 
markets?  
Reply:  Such measures are temporarily in force in order to ensure availability of onions in the 
domestic market at reasonable prices.  
STEs  
Page  117 (para. 4.14)  
Question 75:  Can India indicate for which products STEs still exist, and whether it has considered 
abolishing their exclusive export rights if no exports have taken place since 2013/14?  
Reply:  Details may be seen from India 's notification of STEs vide G/STR/N/16/IND and 
G/STR/N/17/IND dated 3 October 2019.  WT/TPR/M/403/Add.1  
 
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  Sugar support  
Page 117 (para. 4.15)  
Question 76:  Can India please indicate where in its DS:1 notification this support for the sugar 
sector is included? If sugar support is not included, does India intend to submit a revision of its DS:1 
notification to include the sugar support through the MEIQ programme and other support measures 
implemented by federal or state governments?  
Reply:  India does not provide market price support to the sugar sector. Fur ther, the referred MIEQ 
Scheme has been discontinued.  
Export subsidies  
Page 116 (para. 4.16)  
Under the Agriculture Export Promotion Scheme, the APEDA provides financial assistance to 
registered exporters of 14 groups of agricultural products listed in the  APEDA Act.20.  
Question 77:  Can India explain how the APEDA conforms to the requirements of the Nairobi decision 
on export competition, which obliges developing members to end export subsidies by the end of 
2018?   
Reply:  India's export subsidies are within  the ambit of Article 9.1 (d) and Article 9.1 (e) of the 
Agreement on Agriculture. These subsidies are available to developing countries until 2023 as per 
the terms of the Nairobi Ministerial Decision on Export Competition.  
Export credit support  
Page 116 (para. 4.16)  
Question 78:  Can India explain how the MEIS conforms to the requirements of the Nairobi decision 
on export competition? When will India notify the MEIS within the framework of the yearly Export 
Competition Questionnaire?  
Reply:  MEIS i s a remission of embedded prior -stage cumulative indirect taxes incurred in the 
production of export products in accordance with footnote 1 read with Annex I of the SCM 
Agreement. Thus, the funds granted under MEIS for agricultural products are not in the nature of 
an export subsidy.  
Question 79:  When is India planning to notify the TMA subsidies to the WTO?  
Reply:  Relevant support will be notified in due course.  
4.1.3.3 Support prices  
Page 120 (Table 4.3)  
Question 80: Are such considerations taking into ac count when increasing the MSP for eligible 
products?  
Reply:  Minimum Support Prices (MSPs) are announced by the Government following the 
recommendations of the Commission for Agricultural Costs and Prices (CACP), which takes into 
account various factors inc luding the cost of cultivation/production, changes in input prices, 
input/output price parity, inter -crop price parity, effects on the cost of living, effects on general price 
level, parity between prices paid and prices received by farmers, etc.  WT/TPR/M/403/Add.1  
 
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  Sugar sup port  
Page 122 (Box 4.1)  
According to the third paragraph in Box 4.1, India has granted a "production subsidy " to sugar mills 
of INR 4.5 per quintal in 2015 and INR 5.5 per quintal in 2017 and since 2019 INR 13.88 per quintal.  
Question 81: Can India indicate the annual amounts spent on these subsidies in the 2015, 2016, 
2017, 2018 and 2019? According to the same paragraph in box 4.1 has India given debt forgiveness 
to sugar mills due to difference in FRP and MRP? Can India indicate the total amount that was 
provided per year since 2015?  
Reply:  India has not given debt forgiveness to sugar mills due to difference i n FRP and MRP.  
4.1.4. Other measures  
Page 126 (para. 4.43)  
PM-Kisan (The Pradhan Mantri Kisan Samman Nidhi programme).  
Question 82:  Can India indicate the eligibility criteria for farmers to access this programme (farm 
size, farm income etc)?   
Reply:  All landholding farmers' families, that have cultivable landholding in their names are eligible 
to get benefit under the scheme. The fol lowing category of farmers are not eligible to avail the 
benefits of the PM -Kisan:  
(a) All institutional land holders; and  
(b) Farmer families in which one or more of its members belong to the following categories:  
i. Former and present holders of consti tutional posts  
ii. Former and present Ministers/State Ministers and former/present Members of Lok 
Sabha/ Rajya Sabha/ State Legislative Assemblies/ State Legislative Councils, former 
and present Mayors of Municipal corporations, former and present Chairper sons of 
District Panchayats.  
iii.  All serving or retired officers and employees of Central/ State Government Ministries/  
Offices/Departments and its field units Central or State PSEs and Attached offices/  
Autonomous institutions under Government as well as regular employees of the Local 
Bodies (excluding Multi -Tasking staff /Class IV/Group D employees)  
iv.  All superannuated/retired pensioners  
v.  All persons who paid Income  Tax in last assessment year  
vi.  Professionals like Doctors, Engineers, Lawy ers, Chartered Accountants, and Architects 
registered with Professional bodies and carrying out profession by undertaking 
practices.  
Question 83:  Can India indicate the amount really paid for the financial year 2018/19 (paragraph 
4.43 indicate INR 200 bill ion (around USD 2.8 billion) and whether the amount of INR 750 billion 
(around  USD 10 billion) for financial year 2019/20 has been confirmed.  
Reply:  The amount paid for financial year 2018 -19 is USD 852.70 million (India's DS notification for 
marketing yea r 2018 -19G/AG/N/IND/18). Actual expenditure during 2019 -20 will be notified in the 
DS:1 notification which will be made in due course.  
Question 84: Can a farmer receiving PM -Kisan also benefit from the increased support prices 
mentioned in point 4.1.3.3. o f the Secretariat report?  WT/TPR/M/403/Add.1  
 
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  Reply:  The marketable surplus offered by the farmers that meet prescribed specifications is 
procured under MSP operations. The objective of PM -Kisan is to supplement the financial needs of 
all landholding farmers ' families irrespe ctive of MSP coverage.  
Export subsidies  
Page 126 (para. 4.46)  
Question 85:  How can India justify such subsidies in the light of the Nairobi Decision on export 
competition? Could India provide more information on the periods when such export subsidies were 
implemented, the states concerned, the National government part, the budge t covered and the 
volumes concerned?   
Reply:  The Nairobi Ministerial Decision allows developing members such as India to provide export 
subsidies under Art 9.4 of the Agreement on Agriculture till 2023. The Government of Maharashtra 
and Gujarat in 2018 pro vided the said financial assistance to defray the costs of marketing including 
handling, domestic and international freight which are allowed for in the aforementioned provision.  
Question 86:  When will India notify its export subsidies?  
Reply:  India will n otify its ES:1 notification in due course.  
4.2. Energy  
Page s 129-134 
Question 87:  Could the Indian authorities indicate the measures envisaged to facilitate the 
development of projects in the renewable energy sector?  
Reply:  Several measures have been taken to facilitate development of Renewable Energy Projects 
in the country. These,  inter alia , include:  
a.  Foreign Direct Investment (FDI) up to 100 % under the automatic route;  
b.  Setting of Ultra Mega Renewable Energy Parks to provide land  and transmission on plug and 
play basis;  
c.  Waiver of Inter State Transmission System charges and losses for inter -state sale of solar and 
wind power for projects to be commissioned by 30  June 2023;  
d.  Notification of standard bidding guidelines to enable distribution licensee to procure solar and 
wind power at competitive rates;  
e. Laying  of transmission lines under Green Energy Corridor Scheme for evacuation of power in 
renewable rich areas;  
e.  Setting up of Project Development Cell for attracting and facilitating investments;  
f.  Launch of Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan (PM -KUSUM) for 
installation of 17.5 lakh stand -alone Solar Pumps to replace diesel pumps; solari zation of 
10 lakh grid connected pumps; and RE power plants of total 10 ,000 MW capacity.  
4.3. Manufacturing, page 134 
Page 137 (para. 4.83)  
Question 88:  Could the Government of India clarify under what conditions prior government 
approval could be obtained by foreign investors? Moreover, the EU would also like to ask as to 
whether the Government of India will relax the said forei gn investment restrictions so as to improve 
its investment climate and attractiveness for foreign investors in this important sector.  WT/TPR/M/403/Add.1  
 
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  Reply:  India has a liberal FDI Policy, wherein FDI for many sectors is permitted up to 100% under 
the automatic route, sub ject to sectoral guidelines and regulations, barring a few sectors which are 
under the Government approval route. Sectors under the Government approval route are mentioned 
in India 's FDI Policy available at http://www .dipp.nic.in  . The FDI Policy is reviewed on an ongoing 
basis, to ensure that India remains attractive & investor friendly destination and decisions on 
changes to the FDI policy are taken, in accordance with policy priorities and in consultation with all 
stakeholders.  
Page 142 (para. 4.104)  
The EU notes the increasing openness relating to foreign investments in the insurance sector, 
including up to 100% foreign equity ownership in insurance intermediation services, subject to 
verification by the IRDAI.  
Ques tion 89:  Could the Government of India clarify what such verification entails? Furthermore, 
does the government of India foresee to extend the abolition of foreign equity caps in insurance 
intermediation to other insurance sectors?  
Reply:  As regards insura nce intermediaries, IRDAI follows the conditions as specified in the Indian 
Insurance Companies (Foreign Investment) Rules, 2015 as amended from time to time and notified 
by the Government. Further, IRDAI verifies that the submission of undertaking as ment ioned in 
Schedule - AA of the IRDAI (Insurance Intermediaries) (Amendment) Regulations, 2019 has been 
done by intermediaries that have a major shareholding of foreign investors. IRDAI also verifies 
intermediaries ' compliance with the given undertaking. Vide 2015's amendments to the Insurance 
Act, 1938, FDI participation in insurance companies has been increased from 26% to 49%. Insurance 
intermediaries have been permitted 100% FDI through the automatic route. The FDI Policy is 
reviewed on an ongoing basis a fter examination of all issues in consultation with the stakeholders 
to ensure that India remains an attractive and investor friendly destination.  
4.4.2. Telecommunications  
Page 143 (para. 4.109)  
"It is also expected that the Digital India Initiative will help increase e -commerce. " 
Question  90: Building on the Digital India Initiative, which is expected to help increase e -commerce, 
will individual states maintain the online sale of alcoholic beverages where this has been permitted 
during the  pandemic, and will others work with industry to maintain access to e -commerce for 
alcoholic beverages, to develop effective self -regulation on tracking and tracing products, protecting 
minors and ensuring licensing requirements are adhered to, instead of banning online sales?  
Reply: Matters pertaining to procurement and sale of alcohol is a subject under the State List in the 
Seventh Schedule of the Constitution of India. The respective State Governments have the power 
to legislate in this regard. State Go vernments are expected to take decisions related to online sale 
of alcoholic beverages based on their assessment of the matter and all issues involved therein.  
Page 143 (para. 4.109, footnote 159)  
Question 91:  Can India explain the impact of the draft nati onal e -commerce policy on India 's trade 
policy and GATS commitments (e.g. in telecommunications or financial services), in particular in 
relation to technology transfer and restrictions on cross -border data flows?   
Reply:  The E -Commerce Policy is being dra fted with a vision of providing a level playing field to all 
stakeholders, including individual consumers, Micro, Small and Medium Enterprises, traders, 
artisans, start -ups, while pursuing a developmental agenda, which catalyses growth and addresses 
preval ent market distortions. The policy will be in compliance with India 's GATS commitments. 
However, since the policy is being finalised, details of such measures cannot be shared.  WT/TPR/M/403/Add.1  
 
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  Page 149 (para. 4.130)  
Question 92:  Can India confirm whether these subsidies are also available to foreign -invested 
enterprises?   
Reply:  Section 80IA of the Income -tax Act,1961 allowed deductions for undertakings engaged in 
infrastructure development. This was available for domestic compan ies and foreign companies which 
have a branch in India. The Finance Act, 2016,  inter alia , provided a sunset date for the existing 
profit linked deductions under the various provisions of the Act which included section 80 -IA of the 
Act. Further, Section 35 AD of the Act allows deduction of expenditure incurred for both domestic 
and foreign companies, on setting up of a Specified Business, as specified in the section. Also, 
Section 10(23FE) of the Act provides exemption for the interest, dividend and long -term capital 
gains arising to the Sovereign Wealth Funds and Pension Funds of foreign countries from investment 
in India in infrastructure facilities and other eligible investments, subject to certain conditions.  
Page 153 (para. 4.147)  
Question 93:  Can India indicate whether the permit required to provide ground -handling services 
can also be delivered to foreign enterprises and if any of the private suppliers providing ground -
handling services in Indian airports are foreign enterprises?  
Reply:  Yes, but subjected to the following:  
i. If the foreign enterprise is a Ground Handling Agency, with foreign ownership of 50% or 
more of its paid -up capital, it shall not be allowed to undertake ground handling activity at 
civil enclave.  
ii. If the foreign enterprise i s a foreign airlines operator, it may undertake self -handling in 
respect of passenger and baggage handling activity excluding security functions listed in 
paragraph I of AVSEC order no 03/2009 dated the 21  August 2009 of AAI (GHS) Regulation, 
2018 at the a irport terminal restricted to passenger check -in at pre -security hold area, at all 
airports. However, the aircraft operator of a country may undertake full self -handling 
including security functions having a bilateral Air Transport Agreement or Air Service s 
Agreement with India except at civil enclaves of defence airports, subject to the condition of 
compliance with additional security measures made by the Ministry of Civil Aviation from 
time to time and implemented under oversight of Bureau of Civil Aviati on Security.  
Page 154 (para. 4.151 ) 
"FDI in ports and shipping is allowed up to 100% without approval. "  
Question 94: Are any limitations applied to FDI in shipping for the purpose of establishing a fleet 
under the Indian flag?  
Reply:  As per extant FDI Pol icy, FDI in ports and shipping is permitted up to 100% on the automatic 
route, subject to applicable laws/regulations, security and other conditionalities.  
5. APPENDIX TABLES  
Table A 2.1 Sectors in which FDI is restricted  
Page 164  indicates a 26 -29 % limi t of FDI for certain printing and publishing.  
Question 95:  How is this justified and what are the plans, if any, to raise these to 100% and/or 
remove government routing?  
Reply:  The FDI Policy is reviewed on an ongoing basis, to ensure that India remains a n attractive 
and investor friendly destination. Any plans for further changes to the FDI policy will be taken in 
consultation with all relevant stakeholders.  
Analysis of Tables A3.1 (page 167) and A.2. (page 168)  shows that, although the number of 
Indian tariff lines for wood, pulp, paper and furniture products having applied tariffs decreases from WT/TPR/M/403/Add.1  
 
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  552 to 550 between 2019/20 and 2020/21, the average rate of those tariffs actually increases from 
9.7% to 10 %.  
Ques tion 96:  How is such an increase justified?   
Reply:  Import duties are prescribed keeping in view the overall economic and other policy objectives 
which include enhancing domestic value addition, creating level playing field, ensuring availability of 
raw ma terials at competitive prices, securing economic interests of the country and ensuring supply 
of essential items at affordable prices. Moreover, India 's applied rates are within its bound tariff 
commitments at the WTO.  
Table A3.4, page 174 , indicates that disinvestment in security printing has resulted in 100% 
government ownership.  
Question 97:  How is this justified, since it is counter -intuitive to promoting a private -enterprise 
economy, especially in a sector where constant innovation is key to success?  
Reply:  Buyback of shares was carried out in Security Printing & Minting Corporation India Ltd. during 
2017-18. Buyback is the repurchase by a company of its shares from the existing shareholders that 
reduces the number of its shares in the open market. As per the Capital Restructuring Guidelines 
2016, CPSEs having net worth of at least INR 20 ,000 million and cash & bank balance of over 
INR 10,000 million shall exercise the option to buyback the shares. Hence, even after carrying out 
said (10%) percentage of  buyback, there was no change in shareholding of the Government of India 
(100%).  
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
Government Report - India (G403)  
2.1.1 Recent growth record  
Page 5 (Table 1)  
Question 98:  The Table 1 shows no break -out of Gross Value Added for forestry from agriculture? 
Can this please be provided and also for forest -based products, as well as relevant trade figures?  
Reply:  Percentage change in Gross Value Added by economic activity at constant (2011 -12) prices)  
Sl. No.  Item  2014 -15 2015 -16 2016 -17 2017 -18 2018 -19 
1 2 3 4 5 6 7 
1. agriculture, forestry and fishing  -0.2 0.6 6.8 5.9 2.4 
1.1 crops  -3.7 -2.9 5.3 4.4 -1.0 
1.2 livestock  7.4 7.5 10.0 7.4 8.1 
1.3 forestry and logging  1.9 1.7 5.5 6.2 0.4 
1.4 fishing and aquaculture  7.5 9.7 10.4 14.7 12.0 
@Provisional Estimates. The disaggregated figures for the subsectors for the year 2019 -20 will be 
available in Press Note on First Revised Estimates of National Income, Consumption Expenditure, 
Saving and Capital Formation, 2019 -20, scheduled to be released on 29.1.2021.  
Detailed information on State -wise and item -wise value of output from agriculture, forestry and 
fishing for year 2011 -12 to 2017 -18 may be seen at : 
http://mospi.nic.in/sites/default/files/reports_and_publication/sta tistical_publication/National_Acco
unts/Brochure%202020.pdf  
2.1.4. Employment and labour market scenario  
Page 6 (para.  2.1.4 ) 
Question 99:  How has government tried to address this challenge of falling labour force 
participation on India 's demographic dividend, particularly female labour force participation?  
Reply:  In order to increase participation of youth, Government has adopted a multi -pronged 
approach with the aim to provide direct employment opportunities; enhance the employability 
through skilling, training and apprenticeship; creating a conducive environment for businesses and WT/TPR/M/403/Add.1  
 
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  promoting entrepreneurship. Government has taken various st eps for generating employment in the 
country like encouraging private sector of economy, fast -tracking various projects involving 
substantial investment and increasing public expenditure on various schemes. Central Ministries / 
States run skill development  schemes across various sectors to improve the employability of youth 
and also facilitate placements. Schemes such as the National Apprenticeship Promotion Scheme are 
implemented wherein Government reimburses 25 % of the stipend payable to apprentices, ther eby 
enhancing employability of the youth to access employment. Government has also launched a Skill 
Certification scheme, Pradhan Mantri Kaushal Vikas Yojana that enables a large number of Indian 
youth to take up industry -relevant skill training that help them in securing a better livelihood. In 
order to encourage employment of women, a number of protective provisions have been 
incorporated in various labour laws for creating congenial work environment for women workers. 
These includes childcare centres, en hancement in paid maternity leave from 12 weeks to 26 weeks, 
provisions for mandatory crèche facility in the establishments having 50 or more employees, 
permitting women workers in the night shifts with their consent and adequate safety measures, etc.  
2.4. Monetary and Fiscal Policy  
Page 10 (para. 2.25) 
Question 100:  What is the government 's own estimate of fiscal balance as economy recovers from 
COVID -19? Does such a sharp increase in government debt bring to fore issues of debt sustainability 
in a period of low growth?  
Reply:  COVID pandemic being a black swan economic event has made predictions on the fiscal 
balance difficult. The precise details of the fiscal fall out of the pandemic are still unfolding as the 
economy has been b uffeted by a reduction in tax, non -tax and other receipts combined with an 
upward pressure on expenditure by the Government. The early indications are that Government of 
India's estimates of fiscal deficit given in BE 2020 -21 may have to be revised upwards . In view of 
the difficulties posed in measuring the deficit, the precise quantum of the increase in debt cannot be 
estimated at this stage. Hence, all analyses of debt sustainability should go hand -in-hand with a 
comprehensive analysis of economic growth.  This is because debt sustainability crucially hinges on 
the growth interest rate differential, both measured in nominal terms. The pandemic has disrupted 
all economic modelling that use adaptive methodologies and hence, projections on the nominal 
variable s in question are fraught with both upside and downside risks.  
On debt sustainability, India 's debt to GDP ratio may be higher than similarly rated peer countries 
but its debt characteristics is different from those countries and therefore it is more susta inable. 
Some of the characteristics of sovereign debt are (i) largely denominated in local currency that 
means no exchange rate risk (ii) higher residual maturity meaning lower rollover risk (iii) fixed rate 
interest that means lower fluctuation in debt se rvicing (iv) mostly financed domestically with high 
savings rate meaning lower dependency on future financing on debt and (v) low tax to GDP ratio 
meaning higher probability of improving this ratio and thereby improving the debt servicing capacity 
in futur e. 
3.1.4 Government e -marketplace  
Page 11 
We understand that as of 2017 the use of Government e -marketplace became obligatory for some 
tenders. Suppliers of goods and services that want to take part in bidding processes must register 
on a specific platfor m.  
Question101:  Are foreign companies eligible to register? Are the registration requirements the 
same as for the domestic companies?  
Reply:  Currently, Government e -Marketplace (GeM)is meant only for Domestic Bidding. Global 
bidding is not yet enabled on GeM. However, Indian subsidiaries of foreign companies can register 
in Rupee terms in GeM and registration requirement is same as for domestic companies.  WT/TPR/M/403/Add.1  
 
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  3.1.5 Make in India  
Page 11 
The Make in India initiative is supposed to, among other things, to facilitate foreign investment. At 
the same this initiative led also to adoption of the Public Procurement (Preference to Make in India) 
Order, 2017, later revised on several occasions. Tha t order further strengthened the protectionist 
orientation of Indian procurement rules, notably with regard to local content requirements, price 
preferences for domestic suppliers or even exclusion of foreign suppliers from tenders. 
Consequently, less and less foreign companies, including those established in India can successfully 
participate in government procurement procedures in India.  
Question 102:  How does India intend to reconcile the protectionist provisions of its national 
procurement legislation with its declared intentions to facilitate foreign investment?  
Reply:  India would like to inform that contrary to the assumption made by the EU in this question, 
the FDI inflows into India have increased steadily from 2017 -18 from USD 37,366 million to 
USD42,629 million (P) (based on RBI data) in the years since Public Procurement Order, 2017 was 
implemented.  
3.1.6 Digital India  
Page 11 
Question 103:  How does the Digital India initiative address cross -border data transfers and data 
localization requirement s, also in light of the provisions of the new Data Protection Bill?  
Reply:  The Personal Data Protection Bill, 2019, has provisions for cross border data transfers, 
storage and processing of personal data. For further details, the Personal Data Protection B ill can be 
accessed at: http://164.100.47.4/BillsTexts/LSBillTexts/Asintroduced/373_2019_LS_Eng.pdf   
3.1.7 Startup India  
Page 12 (para. 3.7)  
"Under the Startup India initiative, eligible companies can get recognized as Startups by the 
Government. This enables them to access easier compliance, IPR fast -tracking and obtain certain 
benefits such as rebate in patent/trademark filing fees " 
Question104:  We can congratulate the Indian program for the promotion and facilitation of 
intellectual property IP among Indian start -ups: Can the Indian authorities confirm that this 
intellectual property program is also open to foreign start -ups? 
Reply: Yes, the Scheme for Facilitating Start -Ups Intellectual Property Protection (SIPP) is open for 
foreign start -ups as well. The foreign start -up has to fulfil the criteria for turnover and period of 
incorporation/ registration as per start -up India Initiative.  
3.2. Labour Polic y Reforms  
Page 13 (para. 3.11)  
Labour is on the concurrent list where both the centre and the states draft laws on these. While the 
central law sets the overall architecture, the on -the-ground impact would be dependent on the 
changes brought about by state governments. The states in fac t, account for many times more laws 
than the centre and the final notification of rules.  
Question 105:  Are there any provisions available in the new labour codes to ensure that central 
reforms translate to progressive changes on the ground at the state le vel? Will India incorporate 
these recent labour code changes in their ongoing and future trade negotiations?   WT/TPR/M/403/Add.1  
 
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  Reply:  Labour is in the Concurrent List in the Constitution of India. The reforms undertaken by the 
Indian Parliament apply in its entirety on the  state laws also. Therefore, all changes made in the 
Labour Codes will have impact on ground at the state level. Some of the major reforms in the 
Employment sector include:  
a.  Giving statutory status to Fixed Term Employment;  
b.  Simplifying certification  of Standing Order;  
c.  Requirement of notice for all types of strikes; and  
d.  Increasing threshold for retrenchment, lay -off and enclosure of firms.  
Further, State Governments are being given powers to modify threshold of their workers. The codes 
have simplified the complexities and rigidities. There is a provision of only one registration and one 
licence in all the codes. All the registration, licen ce and labour inspections are to be done through 
portals. Also, in order to promote formalization, t he scope of bringing workers in the formal sector 
has been increased. Issuance of appointment letter to every employee on appointment has been 
made mandatory. Unorganized sector workers will be able to become members of Employees ' State 
Insurance Corporati on and Employees ' Provident Fund Organisation and will be able to avail benefits 
of pension, medical benefits, sickness benefits, etc. India is of the view that there are alternative 
fora to discuss social issues including matters related to labour and tha t the trade agreements should 
focus on trade related issues only.  
3.12. Insolvency and Bankruptcy Code 
Page 10 (para. 3.2)  
The outbreak of the COVID -19 pandemic and the suspension of new proceedings under the 
Insolvency and Bankruptcy Code (IBC) has resul ted in a sharp slowdown in the resolution process 
and accordingly the reali zation for financial creditors has declined.  
Question 106:  Can you give us an update on the developments in the IBC process currently and 
are there any proposals for changes in the code for quicker resolution of pending cases?  
Reply:  The proceedings under IBC take on average about 340 days, including time spent o n 
litigation, in contrast with the previous regime where processes took about 4.3 years. The success 
of the Code hinges upon its dynamism and responsiveness to the emerging requirements of the 
market and various stakeholders. The Code has been amended seve ral times to meet the desired 
objectives. Future course of action will depend on emerging requirements in the aftermath of the 
COVID -19 crisis.  
5.1. FDI Policy  
Page 15 (para. 5.6)  
The EU believes that an investment protection agreement is very important to  ensure an investor 
friendly environment. After unilaterally suspending its bilateral investment treaties, we understand 
that India is now in the process of renegotiating its investment treaties with various countries based 
on its new Model Bilateral Inves tment Treaty (BIT).  
Question 107:  Can India provide us with a status update on the concluded and ongoing BIT 
negotiations?  
Reply : India is currently negotiating all its Bilateral Investment Treaties based on a new Model BIT 
2015, which are at various stag es with thirty -three (33) countries/blocks. India has signed Bilateral 
Investment Treaties with Belarus, Kyrgyzstan, and Brazil, along with Bilateral Investment Agreement 
between India Taipei Association (ITA) and Taipei Economic and Culture Centre (TECC),  as per the 
Model BIT 2015.  
5.2. Intellectual Property Rights (IPRs)  
Page 16 (para. 5.9)  
Question 108:  To achieve the objectives set out in the NIPR Policy, have concrete plans been 
developed?  WT/TPR/M/403/Add.1  
 
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  Reply:  As part of the plan to achieve the objectives of India 's IPR policy a slew of initiatives have 
been taken by the Government of India as part of the concrete plan. The IP offices under the CGPDTM 
have been modernized. Conscious efforts have been made to develop a robust e -service delivery 
system, including real -time public dissemination of dynamic IP knowledge through innovative tools. 
Amendments have been carried out in specific IP legislations for simplification of procedures, 
reduction of forms, incentivizing e -filing and reducing compliance burden. A Cell for  IPR Promotion 
and Management (CIPAM) has been set up in order to enhance IPR awareness amongst the citizens 
which would result in an increased generation of IPRs domestically. CIPAM works with a targeted 
approach to reach out to schools, colleges/ univers ities, and industries. Further, IP training and 
sensiti zation programs for enforcement agencies and judiciary enables focused action for improving 
enforceability and adjudication of IPRs in the nation. These initiatives have supported the growth in 
number of IP applications being filed and registered, since the introduction of the IPR Policy:  
i. The number of Patents granted last year have gone up by more than 2 times and there has 
been a three -fold increase in number of patents being examined each year, vis-à-vis 
2016-17. 
ii. Number of Copyrights registered last year has gone up by 4 times vis -à-vis copyrights 
registered in 2016 -17.  
iii. No of Industrial Designs being registered have also gone up by 50 %. 
iv. Disposal of Trademarks has gone up by 45% in 2019 -20 vis -à-vis 2016 -17. 
6. INDIA AND THE WTO: STRENTHGETHING MULTILATERAL SYSTEM  
Page 16 (para. 6.1)  
Question 109:  While India continues to reiterate its attachment to multilateralism, its vision of 
intellectual property protection remains very focused on its own interests. The recent joint initiative 
with South Africa to downgrade the scope of the TRIPS agreements in  this pandemic period raises 
questions about India's commitment to the WTO agreements. Doesn't this initiative "against" the 
TRIPS agreements contradict India's commitment to multilateralism?  
Reply:  TRIPS Waiver Proposal is as per the provisions provided u nder Article IX (3)(b) of the 
Marrakesh Agreement and, hence, is in line with the core principles of rule -based MTS. In fact, failure 
of the WTO to adopt the Proposal will expose rule -based MTS 's inability to rise to the occasion even 
in such a crisis, put ting private IP interest over general public good. India remains fully committed 
to the Multilateral Trading System and to all the WTO Agreements. It may be noted that a waiver 
under exceptional circumstances from any of WTO Agreements is a provision under  the Article IX of 
Marrakesh Agreement establishing the WTO. COVID -19 is an exceptional and unprecedented crisis. 
In this regard, India 's joint initiative with South Africa on TRIPS waiver seeks to promote general 
public 's access to affordable medicines/dr ugs/vaccines and other medical products to effectively 
respond to the COVID -19 pandemic. It is an initiative to ensure that IPRs are not an impediment in 
pursuance of this objective across the globe. India acknowledges the role of intellectual property 
rights in the development of new medicines. However, India strongly believes that Members should 
do whatever it takes to address the pandemic and all relevant policy tools necessary to deal with 
catastrophic adverse impacts of COVID -19 pandemic across the wor ld should be utilized, including 
the waiver envisaged under the Marrakesh Agreement.  
India will also be interested in knowing that whether by proposing usage of existing provisions of 
WTO Agreements would lead to contradiction in commitment to multilateral ism, in the same vain by 
invoking curtailment of personal liberty and giving financial stimulus of unprecedented level during 
the pandemic, and rightly so, whether the Member is working against the commitments made under 
various successive Pacts and Agreem ents. 
6.4. Fisheries Subsidies  
Page 17 (para. 6.8)  
Question 110:  It is desirable to question the Indian authorities on the consideration of the 
preservation of fishing stocks, which would arise if the aid granted to fishermen were to increase WT/TPR/M/403/Add.1  
 
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  their deep -sea fishing capacities. This, in full coherence with the objectives pursued within the 
framework of the negotiations on fishing aid at the WTO.  
Reply:  India is mindful and committed towards the sustainable use of marine resources. Indian 
marine fisheries is small scale in nature and a large marginalized and vulnerable population of 
artisanal and small -scale fishermen in India rely on fishing for their basic livelihood, and they have 
no other livelihood options. The fishing efforts in India are mostly confined  within the 200 -meter 
depth zone, whereas resources in the deep -sea beyond 500 -meter depth zone are underutilized. 
Hence, policies and programs to diversify near shore fishing practices and promote deep -sea fishing 
are necessary to ensure sustainable and b alanced utilization of marine fishery resources.  
8.4. Government Response to COVID -19 
Page 21 
Question 111:  How does India plan to address the logistical problems that may arise while carrying 
out its mass vaccination drive?   
Reply:  Commitment and support have been established for successful implementation of COVID -19 
vaccination at the highest level of political and administrative structure and National and State level 
task forces have been constituted to oversee and facilitate the vaccination. State contr ol rooms are 
being set up with 24x7 help lines, which will be involved in day -to-day planning, especially 
mobilization of human and other resources like transport, inter -sectoral coordination, 
implementation and monitoring of activities during the COVID -19 vaccination preparedness, and roll 
out. A clear chain of command is being established and the COVID Vaccine Intelligence Network 
(Co-WIN) system, a digitalized platform, will be used to track the enlisted beneficiaries for 
vaccination and COVID -19 vaccine s on a real -time basis. At the vaccination site, only pre -registered 
beneficiaries will be vaccinated in accordance with the prioritization.  
  WT/TPR/M/403/Add.1  
 
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  EUROPEAN UNION  (FOLLOW -UP QUESTIONS)  
Page 16 (para. 1.6) 
"To respond to the impact of the COVID -19 pandemic, in May 2020, the Government announced the 
Atmanirbhar Bharat Abhiyan (Self -reliant India) programme. It aims to provide a stimulus to various 
sectors and sections of society, to respond to the effects of the current health crisis. "  
This year the  Indian government launched the "Self-Reliant India ' campaign which seeks to promote 
the consumption of domestic goods (in substitution of imported goods) and local manufacturing. In 
line with this vision, several actions have been implemented. For example , the Defence Ministry has 
ordered its 4,000 military shops (Canteens) to stop buying imported goods. With annual sales of 
over USD 2 billion, they make up one of the largest retail chains in India. The October 19th internal 
order from the Defence Ministry  stated that, in the future, "procurement of direct imported items 
shall not be undertaken ". 
Question 3:  It has become apparent that imported products, including wine and spirits from the EU, 
are banned from military Canteen Stores Departments (CSDs). Will  India reverse this discrimination, 
which prevents the sale of Bottled In Origin (BIO) spirits in Indian military CSDs, raising concerns as 
to compliance with India 's obligations under Article III.4 of the GATT 1994?  
Reply: India considers that the procure ment by Defence is government procurement and the 
activities taken thereunder are consistent with India 's obligations under the WTO.  
Follow -up Question:  The measure seems to represent a violation of Article III.4. Indeed, the 
products imported (here, alcoholic beverages) shall be accorded treatment no less favourable than 
that accorded to like products of national origin in respect of all laws, regulations  and requirements 
affecting their (…) offering for sale. While there exists an "exception " stated in Article III.8 that 
Article  III shall not apply to laws, regulations or requirements governing the procurement by 
governmental agencies of products purchase d for governmental purposes, such exception is limited 
and is not valid when such products are purchased with a view to commercial resale, which is the 
case in this situation as CSDs are making profits out of these sales. What is India 's reasoning to state  
that this is consistent with its obligations under the WTO?  
Reply: The procurement by CSDs are meant for Armed Forces which is part of the Government 
Procurement. It is not for sale in the open market. Hence it is consistent with the WTO provisions. 
Moreover, those Foreign Liquor which are being bottled in India, are allowed for sale in CSD. Further, 
the quantum of sale of EU brands in CSD is miniscule compared to their total sales in India.  
3.1.3 Tariffs  
Page 47 (para.  3.25) 
India calculates import duties for apples based on benchmark prices (set up on size/packs, number 
of apples per box and varieties) with different conditions and reference values for each exporting 
country. According to our information the last list of benchmark prices date s from 2017.  
Question 14:  Could India provide the piece of internal legislation that lays down the system of 
benchmark prices for apples? Could India indicate if it has any intention to review the list of 
benchmark prices in 2021 and what the process would  be, notably if there would be consultations 
with exporting countries?  
Reply: Apples attract an ad valorem duty of 50% on the transaction value. The observation made in 
the question does not flow from the said paragraph 3.25 (Page 47). Moreover, there is n o notified 
tariff value for apples.  
Follow -up Question: While the EU is aware that the imports of apples in India are subject to a tariff 
of 50% ad valorem , it seems that India calculates the import duties based on benchmark prices. 
Could India therefore p rovide the piece of internal legislation that lays down the system of benchmark 
prices for apples as well indicate if it has any intention to review the list of benchmark prices in 2021?  WT/TPR/M/403/Add.1  
 
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  Follow -up Reply: Apples attract an ad valorem  duty of 50% on the tran saction value.  There is 
no notified tariff value for apples and no  internal legislation that lays down the system of benchmark 
prices for apple . Moreover, the Customs Duty is assessed on the basis of transaction value in a 
manner consistent with WCO framew ork. Section 14 of Customs Act, 1962 contains the statutory 
provision for determining the valuation of imported goods. Rule 10 of Customs Valuation Rules, 2007 
frames the rules for determining the Transaction Value of imported goods. Assessment of correctn ess 
of declared value of goods (risk assessment -based scrutiny) may require comparison with identical 
or similar imports, as the case may be. The assessing officer in such cases may resort to 
determination of value in a manner as provided in law.   
3.3.1. Incentives  
Pages 81 (Table 3.25 Explicit subsidies, 2015 -21) and 169 -172 (Table A3.3 ) 
Question 21 : Can the Indian government provide a more granular overview of subsidies awarded 
by Indian public authorities per sector, including services?  
Reply: Various supports provided by India to different sectors can be seen from relevant notifications 
made at the WTO.  
Follow -up Question: Since WTO notifications do not include service subsidies, could India detail 
subsidies awarded by central and regional gover nments in the area of services (by sector)?  
Reply: Many services sectors come within the purview of both Central and State governments. Public 
authorities at different levels (central, state and local) provide support for the development of 
services sector s under various programs/schemes. Consolidated records in this regard are not being 
maintained. However specific details of the relevant programs/schemes may be obtained from the 
website of the concerned public authorities.  
Labelling of Alcoholic Beverages  
Page 86 (para.  3.171 ) 
Question 35 : In June 2020, FSSAI issued a notification approving a number of food additives in 
relation to "Distilled Spirituous Beverages". According to the Food Safety and Standards (Food 
Products S tandards and Food Additives) Regulation, 2011, "Distilled Spirituous Beverages" are 
distilled beverages with more than 15% alcohol, whilst products with less than 15% alcohol are 
described as "Aromatized alcoholic beverages". The notification from FSSAI cl arifies that the additives 
under consideration have to be inserted "in Appendix A, Table 14, in the food category 14.2.6 related 
to "Distilled Spirituous Beverages"" of the Food Safety and Standards (Food Products Standards and 
Food Additives) Regulation, 2011. No mention is made to the food category 14.2.7 related to 
"Aromatized alcoholic beverages", whose permitted additives are listed in separate rows right after 
the ones dedicated to "Distilled Spirituous Beverages" (Distilled Spirituous Beverages and A romatized 
alcoholic beverages being two separate food categories, they are treated as such). The report refers 
to specific labelling requirements applying to alcoholic beverages and food additives. Will FSSAI allow 
the use of certain food additives, such a s colouring, in aromatised alcoholic beverages?   
Reply: FSSAI vide direction dated 22nd June 2020 operationalised use of food colours "Tartrazine, 
Carmoisine, Brilliant Blue, Sunset yellow and Ponceau 4R " in the food category 14.2.6 - Distilled 
Spirituous B everages. Further, vide direction dated 7th December 2020, revised provisions for used 
of these colours and one additional colour Allura Red was operationalised for use in food 
category  14.2.6 - Distilled Spirituous Beverages. Further, as per the appendix A , the colour namely 
caramel, beta carotene and grape skin extract are allowed in aromatised alcoholic beverages.  
Follow -up Question: Considering that the use of certain food additives such as "Tartrazine, 
Carmoisine, Brilliant Blue FCF, Sunset Yellow FCF a nd Ponceau 4R " has recently been operationalised 
in relation to "14.2.6 -Distilled Spirituous Beverages", will India seek consistency of the permission 
to use these Codex approved additives also for "14.2.7 -Aromatized alcoholic beverages"?  
Reply: The matter  will be examined based on technical justification and other inputs provided as per 
the requirements.  WT/TPR/M/403/Add.1  
 
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  Page 113 (para. 3.274 ) 
Question 71 : How does India intend to address and phase out the tax discrimination against bottled 
in origin products as part of widely diverging state tax regimes, considering that high taxation and 
tax discrimination on imported products help fuel illicit trade – including the rise of counterfeit 
products?  
Reply: Matters pertaining to procurement and sale of alcoholic liquor for h uman consumption is a 
subject under the State List in the Seventh Schedule of the Constitution of India. State Governments 
are to take decisions on such matters taking into consideration all relevant factors, including the de -
merit nature of such goods.  
Follow-up Question: What steps does India intend to take to put itself in compliance with Article  III 
of the GATT, considering that tax discrimination against bottled in origin products at State level 
represent an infringement of GATT Article III?  
Reply: India's federal structure, as enshrined in the Constitution, bestows powers on the State 
Governments to levy Excise duties on alcoholic liquor.  
Import bans  
Page 116 (para.  4.9)  
India has introduced import bans for cashew nut kernels and pulses.  
Question 73 : How do these measures comply with GATT Article XI? The measures have now been 
in place for three years. When does India intend to return to a normal import regime? Will the applied 
rate be set at the level which prevailed before these import restrictions  were implemented?  
Reply: Such necessary interventions are made based on various factors including cost of production, 
overall demand -supply situation in the domestic and world market, domestic and international prices, 
etc. Otherwise, import of most of it ems is free. Moreover, these measures are temporary in nature 
and are reviewed regularly.  
Follow -up Question: The import ban for pulses has now been applied for three years. How does 
India define this as a temporary ban? When does India intend to end the t emporary import ban on 
pulses? Which criteria will India use when ending the import ban?  
Follow -up Reply: The measure has been imposed for food and livelihood security of small and 
marginal farmers in India. It has been imposed after due consultations and is being regularly 
reviewed in the light of domestic demand and supply situation.  
Export subsidies  
Page  116 (para.  4.16) 
Under the Agriculture Export Promotion Scheme, the APEDA provides financial assistance to 
registered exporters of 14 groups of agricultural products listed in the APEDA Act.20.  
Question 77 :  Can India explain how the APEDA conforms to the requirements of the Nairobi decision 
on export competition, which obliges developing members to end export subsidies by the end of 
2018?  
Reply: India's export subsidies are within the ambit of Article 9.1 (d) and Article 9.1 (e) of the 
Agreement on Agriculture. These subsidies are available to developing countries until 2023 as per 
the terms of the Nairobi Ministerial Decision on Export Competitio n. 
Follow -up Question: Despite the Nairobi Ministerial Decision on elimination of export subsidies and 
in particular its paragraphs 9 to 11 which state that Members shall 'seek not to circumvent the 
requirement to reduce and eliminate subsidies ', 'not to raise export subsidies b eyond average level 
of the three previous years ' and 'not displace or impede the exports of another member ', India has 
over the recent years increased the annual exported quantity of sugar as well as the subsidy level. WT/TPR/M/403/Add.1  
 
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  The EU understands that India can mak e use of Article 9.4 of the Agreement on Agriculture until the 
end of 2023. However, can India explain how the way in which it implements the continued increase 
in exported quantity of sugar and the increased subsidy level together with an increase in inte rnal 
support prices to sugar cane complies with the spirit of the Nairobi Decision?  
Reply: The measure provided for sugar is on account of the expenses incurred on marketing costs 
(including handling, upgrading and other processing costs) and costs of inte rnational and internal 
transport and freight charges and is therefore consistent with the Nairobi Ministerial Decision.  
Page 143 (para. 4.109, footnote 159 ) 
Question 91:  Can India explain the impact of the draft national e -commerce policy on India 's trade 
policy and GATS commitments (e.g., in telecommunications or financial services), in particular in 
relation to technology transfer and restrictions on cross -border data flows?  
Reply: The E -Commerce Policy is being drafted with a vision of providing a level playing field to all 
stakeholders, including individual consumers, Micro, Small and Medium Enterprises, traders, 
artisans, start -ups, while pursuing a developmental agenda, which catalyses growth and addresses 
prevalent market distortions. The policy will be in compliance with India 's GATS commitments. 
However, since the policy is being finalised, details of such measures cannot be shared.  
Follow -up Question: When does India expect the policy to by finalized and is it envisaged that 
foreign stakeholders wil l be able to submit comments in the consultation process?  
Reply: The draft National E -commerce policy was placed in public domain for comments/suggestions. 
Detailed consultations are ongoing. The timeline for finalization of the policy cannot be prejudged.  
Based on the consultations, the next steps will be undertaken.  
Page 154 (para. 4.151 ) 
"FDI in ports and shipping is allowed up to 100% without approval. " 
Question 94: Are any limitations applied to FDI in shipping for the purpose of establishing a fleet 
under the Indian flag?  
Reply: As per extant FDI Policy, FDI in ports and shipping is permitted up to 100% on the automatic 
route, subject to applicable laws/regulations, security and other conditionalities.  
Follow -up Question: Could In dia explain what the automatic route is and whether limitations on 
the establishment of a local fleet are part of the conditionalities?  
Reply: 'Automatic route ' is the entry route through which investment by a person resident outside 
India does not require  the prior approval of the Reserve Bank of India or the Central Government. If 
a foreign entity intends to own and register ships under the Indian flag, inter alia, the foreign entity 
must incorporate a company under the Companies Act, 2013.  
3.1.6 Digital India 
Page 11 
Question 103 : How does the Digital India initiative address cross -border data transfers and data 
localization requirements, also in light of the provisions of the new Data Protection Bill?  
Reply: The Personal Data Protection Bill, 2019, has p rovisions for cross border data transfers, 
storage and processing of personal data. For further details, the Personal Data Protection Bill can be 
accessed at:  
http://164.100.47.4/B illsTexts/LSBillTexts/Asintroduced/373 . WT/TPR/M/403/Add.1  
 
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  Follow -up Question: We thank India for the reference to the Personal Data Protection Bill. Could 
India kindly clarify the reply to the first part of the original question concerning Digital India 's 
treatment of cross -border data transfers and data localization requirements?  
Reply: Digital India is an umbrella programme launched by the Government of  India that  covers 
multiple projects of various Central Ministries / Departments and States/Union Territories. It is 
centred on three key areas, namely, development of digital infrastructure, digital delivery of public 
services and digital empowerment of citizens. Som e of the key components of the Programme include 
provision of high -speed internet, access to common service centre, provision of services in real time 
through online/mobile platform, universal digital literacy etc.  More details of the programme may be 
seen at https://www.digitalindia.gov.in . With regard to India 's data governance framework, it may 
be noted that the Personal Data Protection Bill, 2019 which contains provisions related to cross border 
data trans fer, storage and processing of personal data etc., is under consideration of the Parliament. 
For further details, http://164.100.47.4/BillsTexts/LSBillTexts/Asintroduced/373 , may b e referred. 
Moreover, the Government has constituted a Committee of experts to deliberate on the non -personal 
data governance framework. Digital India Initiative will get further boost with the roll out of the data 
governance framework.  
8.4. Government Response to COVID -19 
Page 21 
Question 111:  How does India plan to address the logistical problems that may arise while carrying 
out its mass vaccination drive?  
Reply:  Commitment and support have been established for successful implementation of COVID -19 
vaccination at the highest level of political and administrative structure and National and State level 
task forces have been constituted to oversee and facilitate the vaccination. State control rooms are 
being set up with 24x7 help lines, which will be involve d in day -to-day planning, especially 
mobilization of human and other resources like transport, inter -sectoral coordination, implementation 
and monitoring of activities during the COVID -19 vaccination preparedness, and roll out. A clear 
chain of command is being established and the COVID Vaccine Intelligence Network (Co-WIN-) 
system, a digitalized platform, will be used to track the enlisted beneficiaries for vaccination and 
COVID -19 vaccines on a real -time basis. At the vaccination site, only pre -registered  beneficiaries will 
be vaccinated in accordance with the prioritization.  
Follow -up Question: India is one of the world 's most important producers of vaccines and 
medicines. WTO Members are in agreement that facilitating trade in essential medicines is cruc ial for 
fighting the COVID -19 pandemic efficiently. We have received conflicting information regarding the 
introduction by India of export restrictions on vaccines. For the supply agreements with the COVAX 
facility, financed notably by the EU, such measure s may disrupt or significantly delay the supply of 
the vaccines to developing countries. We have taken note of the press statement by the Union Health 
Secretary, correcting earlier statements from other stakeholders, to the effect that there are no 
restric tions in place in India.  
Given the crucial importance of facilitating trade in vaccines at this moment of crisis, especially to 
improve their access for developing countries, could India please clarify whether the export of 
vaccines in India is subject to any kind of export author ization? Could India also confirm that there 
is no intention to introduce export restrictions in the  future? If there should be restrictions in place, 
how long does it take to receive an export authorization? Could India please confirm that the vaccines 
produced in its territory and purchased by the COVAX/Gavi as part of the global alliance to defeat 
COVID -19 pandemic, will be exported without delay or restrictions?  
Follow -up Reply: No export restriction on COVID Vaccines has been imposed. India had earlier 
supplied hydroxychloroquine, Remdesivir and paracetamol tablets, as well as diagnostic kits, 
ventilators, masks, gloves and other medical supplies to a large number of countries du ring the 
COVID -19 pandemic. In an ongoing effort, India has begun supply of COVID -19 vaccines to several 
countries across the world. The Government has clearly articulated its intent to utilise India 's vaccine 
supply capabilities for the benefit of entire humanity, and India remains committed to its international 
obligations, including under GAVI 's Covax facility to developing countries, in this regard.  WT/TPR/M/403/Add.1  
 
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  It is regrettable that the Member, which itself is implementing Export Restriction measures for the 
Vaccines in the name of 'Export Transparency Initiative ' is exhibiting concern on this matter, relying 
on rumours and unconfirmed reports.  
  WT/TPR/M/403/Add.1  
 
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  MEXICO  
PART I. REPORT OF THE SECRETARIAT (WT/TPR/S/403)  
3. TRADE POLICIES AND PRACTICES, BY MEASURES  
3.1 Measures Directly Affecting Imports  
3.1.6 Anti -dumping, countervailing and safeguard measures  
3.1.6.1 Anti -dumping measures  
3.68. In May 2018, the Directorate -General for Trade Remedies (DGTR), under the Department of 
Commerce, replaced the Directorate -General for A nti-Dumping and Other Related Rights (DGAD) as 
the sole body responsible for all trade remedies in India. DGTR deals with anti -dumping, 
countervailing and safeguard measures (both in relation to increases in duties and quantitative 
restrictions). Prior to the established of DGTR, DGAD handled anti -dumping and countervailing 
measures, and the Directorate -General for Safeguards and the Directorate -General for Foreign Trade 
(DGFT) were dealing with safeguards. DGTR is responsible for conducting investigations into 
anti-dumping, countervailing and safeguard measures, as well as making recommendations to the 
Minister of Finance with respect to the imposition of any of these measures.  
Question 1 : India mentions that DGTR is responsible for conducting investigations, but only makes 
recommendations to the Minister of Finance regarding the imposition of measures. Could India 
indicate whether there is any mechanism or procedure on the part of the Mini stry of Finance to 
assess the form, amount or even deny the imposition of recommended measures? and, if any, briefly 
explain what it consists of.  
Reply: DGTR 's recommendations are examined by the Central Government taking into account all 
relevant factors and decisions are taken on merits of individual cases, within the extant policy and 
legal framework.  In the past, depending on the merits of each case, Ministry of Finance has fully 
accepted DGTR's recommendations in some cases, and in other cases they hav e not accepted DGTR 's 
recommendations.  
3. TRADE POLICIES AND PRACTICES, BY MEASURES  
3.1 Measures Directly Affecting Imports  
3.1.6 Anti -dumping, countervailing and safeguard measures  
3.1.6.1 Anti -dumping measures  
3.70. The designated authority may also initiate the procedure ex officio/on its own initiative on the 
basis of information received from the Customs Collector. During the period 2015 -2019, DGTR did 
not launch any research on its own initiative. The procedure for on -initiative investigations is the 
same as for investigations based on an industry request, in accordance with the Anti -Dumping 
Regulation (Box 3.1).  
Question 2. Could India explain, in general terms, what is its analysis of the Information of the 
Customs Collector in order, where appro priate, to initiate ex -officio procedure, if applicable?  
Reply: For the Customs Collector 's information, DGTR examines the accuracy and adequacy of the 
evidence provided and satisfies itself that there is sufficient evidence regarding - 
(i) dumping,  
(ii)  injury, where applicable; and  
(iii) where applicable, a causal link between such dumped imports and the alleged injury, to justify 
the initiation of an investigation.  
3. TRADE POLICIES AND PRACTICES, BY MEASURES  
3.1 Measures Directly Affecti ng Imports  
3.1.6 Anti -dumping, countervailing and safeguard measures  
3.1.6.2 Countervailing measures  
3.89. The central government imposes a countervailing measure only after determining that there 
is injury to the domestic industry that is difficult to repair, caused by massive imports, made in a 
relatively short period of time, of an article enjoying subsidies. The designated authority has one 
year from the date of initiation of the investigation to determine whether the investigated articl e is WT/TPR/M/403/Add.1  
 
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  subsidized and to submit to the central government a recommendation on the amount of the duty 
which, if imposed, would be appropriate to eliminate the injury caused to the domestic industry. The 
Government may, in exceptional circumstances, extend tha t period of one year for six months. In 
addition, in cases where the designated authority has suspended the investigation into the 
acceptance of a price commitment and then resumed it due to non -compliance with that 
commitment, the period during which the price commitment was in force in calculating the one -year 
period shall not be taken into account. The countervailing duty imposed - by notification in the 
Official Gazette - on subsidized exports from a trading partner cannot exceed the amount of the 
subsidy or subsidies. The countervailing duty is in addition to any other duties imposed under the 
Customs Tariff Act of 1975 or other laws.  
Question 3:  Are there differences between the applicable standard in Indian law, which is that 
injury is difficult to re pair, and the standard of the Agreement on Subsidies and Countervailing 
Measures on Injury? If they exist, could you explain what these differences consist of?  
Reply: The Indian law is compatible with the WTO regime and Indian authorities rely on any legal  
standard developed under the WTO jurisprudence, wherever required.  
3. TRADE POLICIES AND PRACTICES, BY MEASURES  
3.2 Measures Directly Affecting Exports  
3.2.5 Export support and promotion  
3.2.5.1 Indian Export Programme (EIS)  
3.117. Under the MEIS, exporters receive a "duty bonus title" when exporting eligible goods (about 
7,500 tariff lines at the 8 -digit level by 2020, listed in Appendix 3B of the Schedule in the Manual of 
Procedures) to specific markets, which fall into three categories. The amoun t of the bonus, which is 
2%, 3% or 5% of the f.o.b. value of the export, varies depending on the exported product. Higher 
bonus rates are generally attributed to export items of high domestic content and high added value. 
Higher rates apply to agricultural  and rural industries, currently covered by the Special Programme 
for Agriculture and Rural Industry (Vishesh Krishi and Gram Udyog Yojana); packaged and 
value -added products; environmentally friendly and organic products made from agricultural waste; 
products whose processing requires heavy labour use; products manufactured by a large number of 
producers and/or exporters; industrial products in "successful" sectors; and high -tech products with 
high export revenue potential.  
Question 4: Could India clarify whether there is any limit to the number of products for which a 
single exporter can receive Credit Scrips?  
Reply: There is no limit on the number of products for which a single exporter can receive credit 
scrips, however on the exports made in the  period 01.09.2020 to 31.12.2020, the maximum value 
of duty credit scrips which can be availed by an exporter is INR 20 million.  
3. TRADE POLICIES AND PRACTICES, BY MEASURES  
3.2 Measures Directly Affecting Exports  
3.2.5 Export support and promotion  
3.2.5.1  Indian Export Programme (EIS)  
3.118. Until 2018, the title of bonus duties could be used to pay duties levied on imported inputs or 
end products, with some exceptions, such as certain agricultural products and capital goods; and 
the central excise taxes levied on inputs or products purchased on the domestic market. In 2018, 
MEIS coverage was expanded, and is now allowed to import items that were previously not allowed 
from the rights bonus title (Table 3.20). Duties bonus securities, and products im ported or purchased 
on the domestic market from them, may be transferred.  
3.124. The rate of the rights bonus title granted under the SEIS is based on the net currencies 
obtained and is 7% of the total obtained. The bonus, issued in the form of a title, ca n be used to 
purchase all kinds of goods and services and pay taxes; and is fully transferable. Establishments 
located in EEZ are also eligible for incentives granted under the SEIS.  WT/TPR/M/403/Add.1  
 
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  Question 5: Could India indicate that Credit Scrips earned under the MEIS  and SEIS can be 
transferred. Could it explain whether there are criteria for carrying out the transfer, whether there 
is any time limit, or whether it can be made without any restriction?  
Reply: The duty credit scrips are fully transferable and there are no criteria. The Duty credit scrips 
for MEIS/SEIS are valid for debit for 24 months. However, the owner of the scrip is required to 
mandatorily record the transfer of the scrip online, as has been detailed in Trade Notice 42 dated 
11.01.2019.  
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  MEXICO (ADD ITIONAL WRITTEN QUESTIONS)  
PART I: REPORT OF THE SECRETARIAT (WT/TPR/S/403)  
3. TRADE POLICIES AND PRACTICES, BY MEASURES  
3.3 Measures Affecting Production and Trade 
3.3.4 Competition policy and price controls  
3.3.4.1 Competition policy  
3.196. Competition is governed by the Competition Act 2002, the rules and notifications published 
by the Ministry of Business Affairs (MCA) and regulations published by the Indian Competition 
Commission (ICC). The Competition Ac t was amended in 2017; accordingly, the Competition Court 
of Appeal was replaced by the National Court of Appeal on Company Law (NCLAT). However, the 
appeal procedure against orders has remained virtually unchanged.  
Question 1: What were some of the substantive changes to the Competition Act, in addition to the 
replacement of the Competition Court of Appeal by the National Court of Appeal on Company Law 
(NCLAT)?  
Reply: The Competition Act, 2002 was amended in 2017, whereby the er stwhile Competition 
Appellate Tribunal was merged with the National Company Law Appellate Tribunal (NCLAT). No other 
substantive changes have been effected to the Competition Act  
3. TRADE POLICIES AND PRACTICES, BY MEASURES  
3.3 Measures Affecting Production and Trade  
3.3.4 Competition policy and price controls  
3.3.4.1 Competition policy  
3.197. In 2018, the MCA established the Competition Law Review Committee to review Indian 
competition law and review international best practices. The Committee's recommendations were 
published in 2019. These include: (i) adoption of provisions to identify radio agreements ("hub -and-
spoke") (anti -competitive practices); (ii) the inclusion of an express provision covering all types of 
anti-competitive agreements that  cannot be strictly classified as horizontal or vertical agreements; 
(iii) adoption of a mechanism that provides for the possibility of opting for an arrangement and/or 
commitment (anti -competitive practices); (iv) creation of a green channel for the autom atic approval 
of business combinations (i.e. mergers, acquisitions and consolidations); and (v) inclusion of a 
threshold value for business combinations in the digital sector. The Committee also made 
recommendations regarding governance in ICC and NCLAT in vestigation procedures, and fines. The 
Competition Act is under review with a view to the implementation of these recommendations. The 
green channel has already been adopted for approval of business combinations.  
Question 2: In view of the recommendation o f the Competition Legislation Review Committee 
regarding the inclusion of a threshold value for business combinations in the digital sector, which 
operations below the thresholds set out in existing law have recently been identified by the Indian 
Competiti on Commission (ICC) as operations that could have adverse effects on competition?  
Reply: Mergers and acquisitions below thresholds (in terms of assets or turnover) prescribed under 
the Competition Act, are not notifiable combinations to Competition Commission of India (CCI). Many 
companies operating in digital markets have relatively less asse ts and turnover base than companies 
operating in conventional markets. Thus, they may escape the scrutiny of CCI as their asset and 
turnover may be less than the thresholds prescribed for notification under the extant regulatory 
framework. As per the recom mendations of expert panel (Competition Law Review Committee), 
acquisition of firms in digital markets by incumbents can be a part of a strategy to eliminate potential 
competition, consolidate market position or to expand into new line of businesses. Such acquisitions 
may thus have an adverse effect on the competition environment in the country.  WT/TPR/M/403/Add.1  
 
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  3. TRADE POLICIES AND PRACTICES, BY MEASURES  
3.3 Measures Affecting Production and Trade  
3.3.4 Competition policy and price controls  
3.3.4.1 Competition policy  
3.201. The JRC initiates investigations into anti -competitive behaviour on its own initiative or if 
relevant information is provided to it, or on a proposal from the central government , State 
governments or official authorities (e.g. sectoral regulatory bodies). Horizontal agreements are 
intended, inter alia , to set prices, limit sales and assign markets or customers. The JRC takes into 
account a number of criteria for assessing whether there is a horizontal agreement and whether it 
has adverse effects on competition.  
Question 3: Has the JRC initiated investigations into anti -competitive behaviour on a proposal from 
the Telecom Regulatory Authority of India (TRAI)?  
Reply : CCI has not received any specific suggestion or reference from Telecom Regulator (Telecom 
Regulatory Authority of India/ TRAI) for initiating investigation for any anti -competitive conduct.  
3. TRADE POLICIES AND PRACTICES, BY MEASURES  
3.3 Measures Affecting Production and Trade  
3.3.4 Competition policy and price controls  
3.3.4.1 Competition policy  
Prior to 2017, only companies participating in a cartel could apply for leniency and obtain a reduction 
in sanctions in exchange for disclosing "complete , true and essential" information to the JRC. Since 
2017 this possibility has been extended to persons participating in a cartel on behalf of an 
undertaking and can be granted to more than three applicants. Reductions of up to 100% of the 
amount of the fin e may be granted to the first applicant to disclose "essential" information to the 
JRC, and to 50% or 30% to the second applicant and subsequent applicants, respectively.  
Question 4: How has this change impacted the number of applications from economic ope rators 
wishing to work with the JRC to obtain the benefit of leniency and reduction of sanctions?  
Reply: The changes effected in Lesser Penalty Regulations in 2017 have resulted in filing of leniency 
applications by individuals, apart from acceptance of le niency applications by CCI from more than 
3 applicants in a given case.  
3. TRADE POLICIES AND PRACTICES, BY MEASURES  
3.3 Measures Affecting Production and Trade  
3.3.4 Competition policy and price controls  
3.3.4.1 Competition policy  
3.205. Since 2015, India has also maintained an exemption for small operations (de minimis 
exemption), which was initially introduced in 2011 for five years and subsequently extended in 2016 
for another five years. As a result, no notifications are required if the valu e of the assets is less than 
or equal to INR 3.5 billion or the turnover does not exceed INR 10 billion. Prior to 2017, the 
thresholds were INR 2.5 billion and INR 7.5 billion, respectively. The scope of the exemption was 
also expanded to include mergers a nd consolidations; previously, it only applied to acquisitions. In 
addition, groups that have less than 50% of voting rights in other companies are also exempt from 
the notification requirement, as they are considered small transactions.  
Question 5: Has it  been considered to suspend the exemption of de minimis in sectors, such as 
technology, capable of presenting killer acquisitions?  
Reply: De Minimis exemptions have been issued by the Indian Government in exercise of powers 
conferred under Section 54 of th e Competition Act, 2002 which inter alia  enables the Central 
Government, by notification, to exempt from the application of Competition Act or any provision 
thereof, and for such period as it may specify in such notification in respect of any class of ente rprises 
if such exemption is necessary in the interest of security of the State or public interest.  WT/TPR/M/403/Add.1  
 
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  The present de minimis  exemption provides that a combination need not be notified if the asset of 
the target enterprise/ business is less than INR 350 cror es or its turnover is less than 
INR 1,000 crores, in India. Many technology -driven companies are likely to have assets or turnover 
lesser than the said limit and thus, their acquisitions and merger are exempted from notification. 
However, the expert panel, which recently reviewed the existing law,  noted that certain combinations 
do not meet traditional asset thresholds but may still have an effect on competition and 
recommended introducing deal value thresholds for such combinations, in addition to existing 
thresholds.  
Question 6: Is there any part icular reason for the thresholds in the telecommunications sector, in 
particular?  
Reply: No separate  threshold  has been provided for  telecommunications  under the Competition Act, 
2002. 
3. TRADE POLICIES AND PRACTICES, BY MEASURES  
3.3 Measures Affecting Production and Trade  
3.3.4 Competition policy and price controls  
3.3.4.1 Competition policy  
3.209. In 2014/2015 and 2018/2019, the Commission initiated 209 investigations into alleged anti -
competitive practices, 93 of which on its own initiative . In 74 cases, the Commission found that 
there were illegal practices, including 47 cartels (Table 3.33). Cartelization was higher in the health 
and pharmaceutical sectors; information and broadcasting; and chemicals and fertilizers. In addition, 
27 operat ors were convicted of abusing their position in various sectors, such as coal and the real 
estate sector. The JRC approved most of the reported business combinations, mainly in the financial 
market sectors; pharmaceuticals and healthcare; information techn ology; the automotive industry; 
energy; and the media and recreation; 39 combinations were rejected because the notice was 
incomplete.  
Question 7: Have cartel investigations led to any change in the way public tenders are made in the 
above -mentioned sectors?  
Reply: Competition Commission of India (CCI) has been deploying its enforcement and advocacy 
mandates in a complementary way in addressing the issues of cartelization in public procurement. 
This has sensitized the procurement offic ers about the potential red flags in the tendering process 
apart from the need to design the tender in a manner which enables wider participation.  
Question 8: In which sectors has it been necessary to impose conditions most often on these 
combinations (operations) and what kind of conditions has it been addressed?  
Reply: So far, combinations subject to remedies have been approved in 22 instances and these 
were in different sectors of the economy, including pharmaceuticals, media and enterta inment, 
agrochemicals, automobiles, cement, mineral processing, electrical switch gears. Both structural and 
behavioural remedies were issued in combination cases. Structural remedies were ordered in 
horizontal combinations with high market share of the pa rties. Behavioural remedies were ordered 
in partial acquisitions and vertical integrations to ensure independence of the parties in their 
respective competitive business decisions.  
INDIA REPORT (WT/TPR/G/403)  
3. REFORMS: ECONOMIC POLICY AND OTHER INITIATIVES  
3.1 Economic Reforms and Better Service Delivery  
3.1.6 "Digital India" Program  
3.6. The "Digital India" program is an emblematic initiative of the Government of India whose vision 
is to transform the country into a digitally empowered society a nd a knowledge -based economy. The 
"Digital India" programme focuses on three main areas: digital infrastructure as a basic service for 
all citizens; governance and on -demand services; and digital empowerment of citizens. It aims to 
give a much -needed impet us to the nine pillars of growth, namely: broadband motorways; universal 
access to mobile connectivity; public Internet access program; electronic governance: reforming the 
Government through technology; e -Kranti: electronic supply of services; information  for all; WT/TPR/M/403/Add.1  
 
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  manufacture of electronic products; information technology for employment; and rapid results 
programs. Each of these areas is a comprehensive programme in itself and depends on several 
ministries and departments.  
Question 9: What are the governme nt institutions participating in the "Digital India" program?  
Reply: Digital India is an umbrella programme that covers multiple projects of various Central 
Ministries and States / UTs including e -governance services, banking and financial services, 
educational and healthcare services, mobile / DTH recharge, e -ticketing services, online shopping, 
etc. Details of the program can be seen at : https://www.digitalindia.gov.in/  
Question 10: What have been the progress of this program?  
Reply: The present status of some of the key initiatives under Digital India programme is as under:  
Aadhaar:  Aadhaar provides 12 digit biometric and demographic based identity that is unique, life 
long, onli ne and authenticable. Over 1.26 billion residents have been enrolled by mid -2020.  
Digital locker:  Digital Locker provides an ecosystem with collection of repositories and gateways for 
issuers to upload the documents in the digital repositories. So far, the re are 45 million registered 
users of Digital Locker.  
Jeevan Pramaan:  Digital Life Certificate for Pensioners scheme known as Jeevan Pramaan envisages 
to digitize the whole process of securing the life certificate. It is a biometric enabled digital service  
for pensioners. With this initiative, the pensioner is no more required to physically present himself 
or herself in front of disbursing agency or the certification authority. Over 35 million Digital Life 
certificates have been processed since 2014.  
Unifie d Mobile Application for New Age Governance (UMANG):  UMANG has been developed as a 
single mobile platform to deliver major Government services with Core Platform integrated with 
Aadhaar, DigiLocker, PayGov, Rapid Assessment System (RAS) etc. About 1 ,323 se rvices from 
144 departments (Central & State) are already available on UMANG platform.  
MyGov:  MyGov is a citizen engagement platform for participatory governance in India. MyGov aims 
to facilitate a dialogue between citizens and Government, bringing citize ns closer to the Government 
and bringing the Government closer to the citizens it serves, via this platform. Presently, over 
13 million users are registered with MyGov, participating in various activities hosted on MyGov 
platform.  
Pradhan Mantri Gramin Dig ital Saksharta Abhiyaan (PMGDISHA):  A new scheme titled "Pradhan 
Mantri Gramin Digital Saksharta Abhiyaan (PMGDISHA) introduced in February 2017 to usher in 
digital literacy in rural India by covering 6 Crore rural households (one person per household). As  
on mid 2020, over 29 million candidates have been trained under PMGDISHA scheme.  
8. CHALLENGES  
8.2 Infrastructure Development  
8.4. The Government has launched a Smart Cities Mission to promote cities that provide basic 
infrastructure and a decent quality of life for their citizens, have a clean and sustainable environment 
and apply "smart" solutions. The focus is on sustainable and inclusive development by creating a 
reproducible model that serves as a beacon for other aspiring cities. 100 cities h ave been selected 
for the Mission and, as part of its smart city proposals, a total of 5,151 projects worth 
INR 2.05 trillion have been submitted. The implementation of the Mission at the municipal level is 
carried out by an entity specifically created for  this purpose. This entity will carry out planning, 
diagnosis, approval, funding release, execution, management, operation, monitoring and evaluation 
tasks in relation to smart city development projects. Smart cities are expected to complete their 
projects  within five years of the date they were selected.  
Question 11: What has been the progress made in the "Smart Cities Mission" project?   WT/TPR/M/403/Add.1  
 
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  Reply: 100 cities were selected in the Smart Cities Mission across India with the objective of 
promoting cities that pro vide core infrastructure and give a decent quality of life to its citizens, a 
clean and sustainable environment and application of 'Smart ' Solutions. The Smart Cities Mission 
entails proposed development of more than 5000 projects across the 100 smart citi es. As on 
21 December 2020, 5 ,304 projects have been tendered, out of which 4 ,507 projects have been work 
ordered. 2 ,106 projects have been completed so far.  
Question 12: Have these been the main challenges they have faced in their development?  
Reply: Urbani zation across the Indian cities is at different levels, based on their demography, 
capacity, challenges and aspirations, among other issues. Some of the initial challenges faced were 
towards enhancing the capacity of cities to deliver the vari ety of infrastructure projects selected by 
them.  
 
  WT/TPR/M/403/Add.1  
 
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  TURKEY  
THE GOVERNMENT REPORT  
3.1.4 Government e -marketplace  
Page 11 (para. 3.4)  
It is stated in the Government Report that "Government e -Marketplace (GeM -SPV) was set up as 
the National Public Procurement Portal on 17th May 2017.12 Incorporated as a 100% Government 
owned Company for providing procurement of goods and services by Central and State Government 
organisations, GeM provides an open inclusive platform for the vendors (OEM, resellers, s ervice 
providers) to register and list their products/services without any entry barriers. There is no 
registration fee or listing fee in GeM. It is a contactless, paperless and cashless platform wherein 
authentication of users is done through API integrat ion. As of August 2020, there are more than 
46,230 Government Organizations and over 447,000 vendors registered on the portal. Further, more 
than 7,889 product categories comprising approximately 2.17 million products and 135 services are 
available on GeM.  
Question 1: Could India further elaborate on the outcomes and performance about the Government 
e-marketplace?  
Reply:  Government e -Marketplace, (GeM) has made significant strides towards the pursuit of its 
three fundamental pillars, i.e., inclusion, transp arency and efficiency in public procurement. Since 
its launch in  August 9, 2016 GeM has ushered in automation and digitization enabled by technology 
and analytics leading to higher process efficiencies, better information sharing, improved 
transparency, re duced process cycle time and higher level of trust among bidders, which in turn 
have resulted in greater competition and higher savings. These innovations in GeM has brought 
down waiting times and prices for buyers significantly and has ensured timely paym ents to sellers. 
GeM provides an open and inclusive platform for all kinds of vendors (Original Equipment 
Manufacturers, OEMs; resellers; and service providers) to register and list their products/services 
without any entry barriers. These aspects aided in  developing a truly inclusive marketplace enabling 
big and small sellers to conduct business with the Government. There is no registration fee or listing 
fee in  GeM. Central Government, the State Governments and the Union Territories (UTs) are 
procuring th rough GeM due to immense advantages accruing in terms of ease of procurement 
through an open and transparent procurement platform.  An independent assessment of GeM 
conducted by the World Bank reported that GeM enabled an average savings of 9.75% on the med ian 
price. As on December 18, 2020, the platform has surpassed INR 748,960 million in cumulative 
transaction value with over 5.25 million transactions and has over 48,711 buyers, 0.9 million sellers 
and 0.38 million Micro and Small Enterprises (MSEs) regis tered on the portal. It has more than 
11,535 product categories with 1.8 million products and 175 service categories. Information of GeM 
can be seen at https://gem.gov.in . 
THE SECRETARIAT REPORT  
4.4.4 Tourism  
Page 157 (para. 4.163)  
It is stated in the Secretariat Report that "India also planned to increase its share in the world's total 
tourist arrivals. In this context, several initiatives were implemented over the review period. To this 
end, the development of niche tour ism products was identified as a priority to overcome seasonality 
and make India a "365 -day destination". Initiatives to advertise niche products in potential markets 
include the global media campaign "Incredible India!". In addition, to support these init iatives, the 
e-visa facility was improved in 2015. As at 2019, nationals of 171 countries could apply for e -visas 
in 28 international airports and 5 cruise terminals " 
Question 2:  Could India provide detailed information about the e -visa system?  
Reply:  The Government has been undertaking measures to liberalize the e -Visa regime to make it 
tourist and business friendly . E-Visa has five sub -categories, namely, e -Tourist visa, e -Business Visa, 
e-Medical Visa, e -Medical Attendant Visa and e -Conference Visa. The detailed information pertaining WT/TPR/M/403/Add.1  
 
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  to e-visa is available at the portal ( https://indianvisaonline.gov.in ) of Bureau of Immigration, 
Ministry of Home Affairs, Government of India.  
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  TURKEY (ADDITIONAL WRITTEN QUESTIONS ) 
QUESTIONS REGARDING THE SECRETARIAT REPORT  
2. TRADE AND INVESTMENT REGIMES  
2.3. Trade Agreements and Arrangements  
2.3.2. Regional and preferential agreements  
2.3.2.1. Regional trade agreements  
Page  37 (para. 2.23) 
It is stated in the Secretariat Report that "Most of India's RTAs are with its neighbouring countries, 
although a few were negotiated with countries further afield, notably in Latin America and Africa. 
During the period under review, trade in services and investment provisions entered into force under 
India's agreement with ASEAN and under the APTA. With regard to its specific commitments in the 
India-ASEAN agreement, India made improvements over its GATS commitments for some 
professional services, computer  and related services, some telecommunications services, some 
health services, and some tourism services, although not for all ASEAN members. " 
Question 1:  Could India provide detailed information about its specific commitments in the India -
ASEAN agreement on computer and related services, telecommunications services, health services 
and tourism services? Could India also provide information about the GATS -plus commitments and 
obligations with regard to the "movement of natural persons (Mode -4)"?  
Reply:  Detailed information about India 's commitments in the services in the India -ASEAN 
Agreement may be seen at https://asean.org/?static_post=asean -india-free-trade -area-3. The 
GATS -plus commitments in MNP related Mode 4 Commitments at the horizontal level are -: 
For category of "Business Visitors ", under GATS, India had committed an entry of a period not more 
than 90 days whereas in the India -ASEAN Agreements, India has committed entry of a period not 
more than 180 days. Further, a new category of natural persons "Contractual Service Suppliers " has 
been committed by India in the India -ASEAN Agreement (but not for Philippines), concerning 
employees of an ASEAN based company or partnership who travel to India temporarily. Such 
contracts must be in the sector of computer and related services, and the s tays are granted for up 
to 1 year.  
3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.1. Measures Directly Affecting Imports  
3.1.1. Customs procedures, valuation, and requirements  
Page  46 (para. 3.17) 
It is stated in the Secretariat Report that ''Customs valuati on continues to be regulated by the 
Customs Act, 1962 (as amended); and the Customs Valuation Rules (Determination of Price of 
Imported Goods) Rules, 2007 (as amended), which regulate the application of the WTO Agreement 
on Customs Valuation. In general, I ndia uses the transaction value, adjusted for costs incurred by 
the buyer that are not included in the price of the imported good, as the customs value for imported 
goods. These costs are added to the price actually paid for the imported good. The Central 
Government can, however, adopt other rules to determine the transaction value of the imported 
goods. In addition, under the Customs Act, the CBIC may fix reference prices ("tariff values") for 
certain imported (exported) goods, based on their international  prices and trends; these values are 
revised periodically. The tariff value is used to calculate customs duty (Table 3.2) .'' 
Question 2:  Could India provide further information on revision processes of the reference prices 
for certain imported goods?  
Reply : Tariff values are computed on the basis of trends of prevailing prices of such or like goods 
in the international market. The tariff values are revised every fortnight.  WT/TPR/M/403/Add.1  
 
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  3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.1. Measures Directly Affecting Imports  
3.1.4. Other charges affecting imports  
Page  55 (para. 3.51) 
It is stated in the Secretariat Report that ''In 2020, India imposed a Health Cess, at a rate of 5%, 
on imported medical devices falling under HS headings 9018 -9022, to finance the health 
infrastructure and services. The Cess is levied in addition to any other customs duties; however, it 
does not apply to medical devices that are exempt from customs duty and inputs/parts used in the 
manufacturing of medical devices. '' 
Question 3: Could India provide detailed information about the Health Cess on imported medical 
devices?  
Reply: Health Cess is calculated at the rate of 5% on the assessable value of import. Specified items 
falling under headings 9018 to 9022 are subjected  to Health Cess. However, certain category of 
imports, as notified vide notification No. 8/2020 -Customs, dated 2 February 2020 are exempt from 
Health Cess (please refer www.cbic.gov.in ). Health Cess has been imposed t o fund the infrastructure 
for health services in the aspirational districts of the country.  
3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.1. Measures Directly Affecting Imports  
3.1.5. Import prohibitions, restrictions, and licensing  
Page  55 (para.  3.53) 
It is stated in the Secretariat Report that ''India continues to impose import prohibitions and 
restrictions. The DGFT may, through a notification, impose restrictions on imports (and exports) to: 
(i) protect human, animal or plant life or health; public mora lity; historical heritage; the 
environment; and intellectual property rights (IPRs); (ii) prevent the use of deceptive practices; the 
use of prison labour; and the traffic of arms, ammunition and implements of war; (iii) and to comply 
with United Nations S ecurity Council resolutions. In addition, some products may only be imported 
through designated state trading enterprises (STEs). These imports (canalized items) can only be 
imported via specified transportation channels and methods. These include petroleu m products, bulk 
agricultural products such as grains and vegetable oils, and some pharmaceutical products. All 
restricted items and items permitted to be imported by STEs, except live animals required for R&D, 
may be imported without an authorization by g overnment -recognized R&D units. '' 
Question 4: Could India provide detailed information about the implementation process of the 
import restriction on imports of agricultural products such as grains and vegetable oils?  
Reply: The import licensing procedure is laid down in para. 2.50 and 2.51 of Handboo k of Procedure 
(2015 -20). For import of items which are under the 'Restricted ' list of import an importer may submit 
an online application available on DGFT 's website i.e. at https:www.dgft.gov.in under the link 
http://dgftcom.nic.in/eComapplications.html .  
3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.1. Measures Directly Affecting Imports  
3.1.5.1. Import prohibitions  
Page  57 (para.  3.55) 
It is stated in the Secretariat Report that ''Imports of certain goods (48 tariff lines at the HS eight -
digit level) are subject to import prohibitions depending upon their import price (Table 3.9). These 
imports are prohibited or restricted when the c.i.f . price is lower than the minimum import price 
(MIP). According to the authorities, MIPs are imposed to protect the domestic growers/farmers and 
their livelihood. Line ministries decide which products should be subject to MIPs. '' 
Question 5: Could India pr ovide detailed information about the implementation process of import 
prohibitions/restrictions on HS 2515 and HS 6802?  WT/TPR/M/403/Add.1  
 
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  Reply: Imports of marble blocks under HS code 2515 is permitted freely provided CIF value is  
USD 200 or above per MT; while Import of marble slabs under HS codes 2515 is permitted freely 
provided CIF value is USD 40 or above per square metre (for maximum thickness of slabs of 20  mm). 
The import licensing procedure is laid down in para. 2.50 and 2 .51 of Handbook of Procedure 
(2015 -20). For import of items which are under the 'Restricted ' list of import an importer may submit 
an online application available on DGFT 's website i.e. at https:www.dgft.gov.in under the link 
http://dgftcom.nic.in/eComapplications.html .  
3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.2. Measures Directly Affecting Exports  
3.2.5. Export support and promotion  
3.2.5.1. Export from India Scheme (EIS)  
Page 74 (para.  3.120 ) 
It is stated in the Secretariat Report that "Handicrafts, handloom products, books/periodicals, leather 
footwear, toys, and customized fashion garments sold through e -commerce platforms or exported 
through courier or foreign post offices, of  a f.o.b. value of up to INR 500,000 per consignment, may 
benefit from the MEIS. "  
Question 6: Could India further explain the structure of the EIS and MEIS, in particular?   
Reply: The details of MEIS and SEIS schemes can be found in India 's Foreign Trade  Policy (FTP) 
2015-20. The MEIS has been discontinued for all shipments with effect from 01.01.2021. The SEIS 
scheme is available to service providers of notified services  (Appendix 3D of the FTP). T he rates and 
eligible categories for the Financial Year 2019 -20 are however not yet notified . 
3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.3. Measures Affecting Production and Trade  
3.3.7. Intellectual property rights  
3.3.7.5. IPR enforcement  
Page  111 (para.  3.267 ) 
It is stated in the Secretariat Report that "Various measures to enforce IPRs were taken over the 
review period. Awareness campaigns, targeting specific audiences (e.g. Customs/police/ judiciary 
officers, academics, students, and start -ups) or regarding specific fields (e.g. GIs), were launched. 
In addition, a wide -spread campaign against film piracy was launched on social media. Capacity -
building workshops were organized for state police officers and judges. Since 2015, IPR cells and 
innovat ion councils have been established in universities and higher education institutions, to create 
a conducive environment for IP awareness, generation, and commercialization. The CIPAM provides 
financial support to organize awareness workshops and seminars; in 2018/19, it spent 
INR 43.6 million on various awareness initiatives. Counterfeiting and piracy are challenges for India 
to further develop e -commerce; therefore, customers are encouraged to act as whistle -blowers. 
Several measures to address counterfeit ing and piracy are laid down in the draft National 
e-Commerce Policy, which is still under consultation. " 
Question 7: Could India provide detailed information about National e -Commerce Policy? What are 
the expected outcomes from the action plan in terms of cross -border e -commerce?  
Reply: The draft e -commerce policy was placed in the public domain for comments/ suggestion s. 
Detailed consultations are ongoing.  Based on the comments/suggestions, the policy is being 
finalized.  Given that the policy is still in draft stage, details of its expected outcome, cannot be 
prejudged at this point.  WT/TPR/M/403/Add.1  
 
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  4. TRADE POLICIES BY SECTOR  
4.4. Ser vices  
4.4.2. Telecommunications  
Page  143 (para.  4.109 ) 
It is stated in the Secretariat Report that "To expand ICT penetration, in 2015, India launched the 
Digital India Initiative; as a result, all government services are available online, and connectivity  
and digital literacy have improved. To this end, common service centres (CSCs) were established in 
rural and remote areas to connect the unconnected to public and private services, such as banks, 
insurance companies, and health and education centres. CSCs  are run by village -level entrepreneurs 
(VLEs); tariffs charged by the VLEs to use computers and access the Internet are regulated to ensure 
affordability. It is also expected that the Digital India Initiative will help increase e -commerce. In 
addition, pu blic and private training initiatives, to promote the adoption of digital technology, were 
implemented to encourage MSMEs to diversify their business model through the use of Business -to-
Business (B2B) and Business -to-Consumer (B2C) services. Despite these  efforts, according to the 
business community, issues such as lack of digital literacy, poor connectivity (including high 
equipment and connection costs), and cyber security are a challenge to digitalization. A 2017 study 
revealed that 68% of MSMEs had no access to the Internet; 30% were using it for online marketing 
and communication; and only 2% were engaged in e -commerce. " 
Question 8:  Could India provide detailed information about the Digital India Initiative? What are 
the benefits received especially in  cross-border e -commerce since the beginning of this initiative?  
Reply: Digital India is a flagship programme of the Government of India. It involves  implementation 
of digital initiatives across Central Government Ministries, State Governments and Local 
Governments, centered on three key areas, namely, development of digital infrastructure, digital 
delivery of services and digital empowerment of citizens. Adoption of digital technologies is critical 
for adoption of e -commerce by consumers and compan ies, particularly Micro, Small and Medium 
Enterprises.  There are several transformational digital initiatives undertaken under the Digital India 
Initiative, namely, BharatNet Project, JAM (Jan Dhan, Aadhaar, Mobile), Direct Benefit Transfer 
(DBT), Common S ervices Centres (CSCs), Digital Locker, e -Sign, e-KYC, Digital Payments (BHIM, 
BHARAT -QR Code)  etc. that have facilitated instant on -boarding and quick service delivery.  By 
spurring adoption of digital technologies, Digital India Initiative has played an i mportant role in 
promoting e -commerce in India. More details may be seen at  https://www.digitalindia.gov.in/ . 
QUESTIONS REGARDING THE GOVERNMENT REPORT  
8. CHALLENGES  
8.4. Government's Response to COVID -19 
Page 21 (para. 8.12) 
It is stated in the Government Report that "As the economy comes out of the lockdown, the policy 
focus by the Government has shifted to stimulating various sectors of the economy, while preserving 
macro -economic stability. The Government began these measures through a well laid out strategy 
wherein it imposed lockdown to allow states to ramp -up their health and testing infrastructure while 
implementing "Pradhan Mantri Garib Kalyan Yojana " and emergency package for health workers. "  
Question 9: Could India explain the impact of the government measures  on the macroeconomic 
parameters such as fiscal deficit and central government debt?  
Reply: The Government has provided necessary fiscal support to mitigate the fallout of COVID -19 
crisis and enable revival of the economy. The Government is committed to m aintain a sustainable 
medium -term fiscal path.  
 
  WT/TPR/M/403/Add.1  
 
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  MALAYSIA  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
Secretariat Report - India (S403)  
Regional Trade Agreements  
Page 37 (para.  2.3.2.1 ) 
Question 1: Paragraph 2.23 highlighted that most of India 's FTAs are with neighbouring countries, 
and this includes ASEAN. Would India consider joining RCEP in the near future?  
Reply:  India is not part of RCEP as of now and is also not engaging therein in its present form. 
However, Act East Policy is the bedrock of  India's economic policy and its engagement with ASEAN 
countries and other trading partners would continue.  
Import Licensing Restrictions  
Page 59 (para.  3.1.5.2 ) 
It was reported that in 2019/2020, there were 440 tariff lines (3.7% of all tariff lines) subject to 
import licensing.  
Question 2:  What is the policy 's consideration by India when introducing such licences? Is there an 
opportunity to review such mechanism  in the near future to help facilitate international trade?  
Reply:  The decision regarding regulating any item of import is always taken in consultation with the 
line ministries / departments and it is subject to revision / withdrawal / amendment. Reasons f or 
the same include a check on quality issues and standards, to ascertain import statistics. Import 
licensing measures taken by India are consistent with the WTO rules under the GATT and the 
Agreement on Import Licensing Procedures, including the timeframe s for processing of import licen ce 
applications.  
  WT/TPR/M/403/Add.1  
 
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  MALAYSIA (ADDITIONAL WRITTEN QUESTIONS)  
GOVERNMENT REPORT  
3.1.4  Government e -marketplace  
Page 11  
3.4. Government e -Marketplace (GeM -SPV) was set up as the National Public Procurement Portal on 
17th May 2017. Incorporated as a 100% Government owned Company for providing procurement 
of goods and services by Central and State Government organisations, GeM provides an open 
inclusive platform for the vendors (OEM, resellers, service providers) to register and  list their 
products/services without any entry barriers. There is no registration fee or listing fee in GeM. It is 
a contactless, paperless and cashless platform wherein authentication of users is done through API 
integration. As of August 2020, there are  more than 46,230 Government Organizations and over 
447,000 vendors registered on the portal. Further, more than 7,889 product categories comprising 
approximately 2.17 million products and 135 services are available on GeM.  
Question 1: Is the GeM -SPV platf orm only available to India 's domestic / local vendors or open to 
foreign players as well? Where can we get further information regarding GeM -SPV? 
Reply: GeM is open for all entities incorporated in India, both domestic and foreign, subject to the 
bids bei ng made in Rupee terms only. Please visit www.gem.gov.in  for further details about GeM 
SPV. 
Question 2: Where can we get further information regarding GeM -SPV? 
Reply: Please visit www.gem.gov.in  for further details about GeM SPV.  
5. TRADE AND INVESTMENT POLICIES  
Page 15  
5.1. International trade is an important part of India's economy. The Foreign Trade Policy (FTP) of 
India, the basic framework of policy and strategy for promoting trade, has conventionally been 
formulated for five years at a time, and reviewed periodically. The FTP for 2015 -20, announced in 
April 2015, provided a framework for increasing exports of goods and services as  well as generation 
of employment and increasing value addition in the country. A mid -term review of FTP was 
undertaken after the introduction of Goods and Services Tax on 1 July 2017, and a revised FTP was 
announced on 5 December 2017.  
Question 3: We note  that the FTP is being reviewed every 5 years, taking into consideration 
concerns raised by our Malaysian traders, we would like to seek clarification if the next FTP review, 
would India include any trade restrictions for goods imported from Malaysia such as refined palm oil 
and colour television?  
Reply: New FTP is under preparation and would be notified in April 2021.  
5.2 Intellectual Property Rights (IPRs)  
Page 16  
5.9. National IPR Policy for India was adopted by the Government of India on 12 May 2016, as  a 
vision document that lays the future roadmap of IPRs in India. The Policy lays down objectives such 
as awareness, generation of IPRs, legal and administrative framework, enforcement, 
commercialization of IPRs etc. Effective enforcement of the IPRs has b een the focus area for the 
Government. Indian customs has been regularly intercepting and seizing imported goods infringing 
intellectual property rights, with the total value of seized imported goods for violation of IPRs being 
INR 3.8 billion during the p eriod 1 April 2017 -31 March 2020. Government of India has also 
developed an IPR enforcement toolkit for both Police as well as Customs Officials. This Enforcement 
toolkit provides: (i) information on legal provisions relevant to IPR crime, (ii) a checklist  for WT/TPR/M/403/Add.1  
 
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  registering a complaint, (iii) a checklist for search and seizure, and (iv) proposed guidelines for 
search and seizure in the case of IP crimes.  
Question 4: Could India elaborate how effective the IPR enforcement toolkit has been since its 
implementat ion? 
Reply: The IPR enforcement toolkit made by a joint collaboration of Cell for IPR Promotion and 
Management (CIPAM) & Federation of Indian Chambers of Commerce and Industry (FICCI), for the 
police officials, is to provide a standardised ready reckoner for law enforcement agencies in India in 
relation to enforcement efforts against IP crimes, specifically counterfeiting and piracy. IP training 
and sensiti zation programs for enforcement agencies and judiciary enables focused action for 
improving enforceability and adjudication of IPR.  
6.1 Appellate Body  
6.2. At the core of a functioning multilateral trading system is an effective dispute resolution 
mechanism. The dispute settlement system has led to meaningful reductions in unfair trade practices  
and has helped to strengthen the rules -based international trading system.  
6.3. As a firm supporter of the rules -based multilateral trading system, India believes that an 
independent, effective and binding two -stage dispute settlement system of the WTO is  a central 
element in providing security and predictability to the multilateral trading system. India 
constructively engaged on the Appellate Body issues, and co -sponsored two proposals to resolve the 
Appellate Body impasse. India strongly underlines the i mportance of restoring the Appellate Body 
expeditiously and in a manner that preserves the essential features of a two -tier dispute settlement 
system, negative consensus and independence of the dispute settlement mechanism.  
Question 5:  As India is an activ e user of the Dispute Settlement Mechanism (DSM), would India 
consider an alternative interim solution while the issue of the Appellate Body is being resolved?  
Reply:  No, India is not considering alternative interim solution. India's first and foremost pri ority is 
the restoration of the full strength of the Appellate Body by MC12. Stop -gap arrangements that do 
not apply to all Members cannot be a viable alternative to a binding, independent, two -stage 
mechanism as agreed to by the Members in the DSU.  
7.2 So uth East and East Asia  
7.3. The India ASEAN Trade in Goods Agreement became operational from January 2010 onwards 
(with different dates for ASEAN countries). The Services and Investment Agreement entered into 
force on 1 July 2015. Besides this, India 's deepening economic and commercial engagement with 
South East Asia is evident from the following agreements: a bilateral agreement with Thailand 
(2004), a Comprehensive Economic Cooperation Agreement (CECA) with Singapore (2005), a 
Comprehensive Economic Co operation Agreement (CECA) with Malaysia (2011). The India -Republic 
of Korea Comprehensive Economic Partnership Agreement (CEPA) came into force in January 2010, 
while that with Japan came into force in August 2011.  
Question 6:  Malaysia would like to seek clarification on the notification and implementation of 
Notification No. 81/2020 – Customs that was introduced by the Ministry of Finance, India on 
21 August 2020 and was subsequently enforced beginning 21 September 2020.  
Reply:  The question pertains to a bilateral trade agreement and does not fall within the purview of 
TPRM [the function* of the TPRM is to examine the impact of a Member's trade policies and practices 
on the multilateral trading system]. However, a comprehensive document containing relevant  
information on the CAROTAR 2020 is available in public domain, which may be referred at  
https://www.cbic.gov.in/resources//htdocs -cbec/customs/CarotarBro chure_8thOct2020.pdf  
[*Annex 3 to the Marrakesh Agreement establishing the WTO] . 
Question 7: 1. The Notification No. 81/2020 – Customs states that:  
a. Bill of Entry made by the importer should be accompanied together with a valid 
Certificate of Origin (CO) covering each item preferential rate of duty is claimed; and  WT/TPR/M/403/Add.1  
 
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  b. origin related information as required in Form I, to be obtained by importers to 
demonstrate the criteria for country of origin, including the Regional Value Content 
(RVC) and Product Specific Rules (PSR).   
Since the information required to be included in  the Form I, is considered confidential/sensitive 
information which was already verified by the issuing authority of exporting party, will this additional 
requirement defeat the purpose of FTA and undermine the credibility of the issuing authority under 
FTAs? 
Reply: The question pertains to a bilateral trade agreement and does not fall within the purview of 
TPRM [the function* of the TPRM is to examine the impact of a Member's trade policies and practices 
on the multilateral trading system]. However, a comp rehensive document containing relevant 
information on the CAROTAR 2020 is available in public domain, which may be referred at  
https://www.cbic.gov.in/res ources//htdocs -cbec/customs/CarotarBrochure_8thOct2020.pdf  
[*Annex 3 to the Marrakesh Agreement establishing the WTO]  
SECRETARIAT REPORT  
Page s 8-9 
SUMMARY  
8. There have been no major changes regarding/to the formulation and implementation of trade 
policies  since the last Review. Trade policy objectives are set out in the Foreign Trade Policy (FTP), 
which is issued every five years and is revised from time to time. The FTP aims to increase India's 
share of global exports from 2.5% in 2015 to 3.5% in 2020. Th e export target is to be achieved 
through a number of incentives, such as the Merchandise Export from India and the Services Export 
from India Schemes. India also continues to make frequent changes to its trade policies and 
measures, through circulars and notifications, to address domestic concerns. India continued to 
liberalize its policies on FDI, further permitting FDI up to 100% without the need for prior 
government approval in an expanded list of agricultural activities; defence; broadcasting carriage 
services; telecommunications services and business -to-business electronic commerce; insurance 
intermediaries; and airports, other air services and non -scheduled air transport services.  
10. Trade policy remained largely unchanged since the previous Review. India continues to rely on 
trade policy instruments such as the tariff, export taxes, minimum import prices, import and export 
restrictions, and licensing. These are used to, inter alia, manage domestic demand and supply 
requirements, protect the economy f rom wide domestic price fluctuations, and ensure conservation 
and proper utilization of natural resources. As a result, frequent changes are made to tariff rates 
and other trade policy instruments, which creates uncertainty for traders.  
Question 8: India m ade frequent changes to its policies and measures, which indeed have created 
uncertainty for traders, including to Malaysian traders. We would like to know the process of adopting 
changes or new regulation and measures in India, and if India has a Good Reg ulatory Practice (GRP) 
process in place?  
Reply: India has a robust and transparent process for policy formulation and rulemaking. This is 
undertaken through broad -based consultations with the relevant stakeholders. For instance, the 
process of adopting new technical regulation is carried out by competent agencies as per the 
provisions of concerned legal instrument, under which technical regulations are notified.  Government 
of India notifies products for mandatory certification through technical regulations on, inter alia , 
following ground(s):  
1.  Protection of human, animal or plant health  
2.  Safety of the environment  
3.  Prevention of unfair trade practices  
4.  National security  
The draft technical regulations are published for comments prior to adoption by the 
ministry/department/competent organization and its publication in the Official Gazette.  The draft 
technical regulations are also notified to WTO Members so that they can submit comments. The 
comments and observations received are c onsidered by the competent ministry. The final rule is WT/TPR/M/403/Add.1  
 
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  published by notice in the Gazette stating its date of  entry into force. From time to time, the technical 
regulations are modified by a similar process depending on the needs of the industry, scientifi c 
advances, modification of the health and environmental situation and harmonization with 
international standards. P rocedure for formulation of Indian Standards is aligned with the WTO -TBT 
Code of Good Practice.  
Question 9: If such a GRP process is impleme nted in India, does the process include engagement 
with stakeholders, both domestic and foreign businesses, who would be impacted by any changes 
or new policy / regulations / measures implemented by India?  
Reply: As stated above,  India engages with a wide  range of relevant stakeholders in its rule making. 
For instance, the  process of adoption of new technical regulations includes engagement with both 
domestic and foreign stakeholders, who would be impacted by any changes or new 
policy/regulations/measures implemented by India.  
Page 10  
SUMMARY  
20. In general, the programmes maintained to promote exports apply to all sectors. However, some 
are sector -specific, for instance those pertaining to agriculture. Most of these programmes did not 
undergo substantial c hanges since 2015; they provide for fiscal and financial incentives and 
marketing assistance. However, in 2015, the Export from India Scheme (EIS) was introduced. The 
EIS encompasses two schemes: the Merchandise Exports from India Scheme (MEIS), which repl aced 
five schemes; and the Services Exports from India Scheme (SEIS). The number of products covered 
by the MEIS, and the budget allocated to it, increased during the review period. The MEIS is 
scheduled to end on 1 January 2021; it will be replaced by a n ew scheme to reimburse exporters for 
taxes, duties and levies which are not exempt or refunded under any other existing scheme.  
Question 10: We would like to request India to explain in detail the two incentive schemes i.e., 
Merchandise Export from India and the Services Export from India and if the incentives have ended 
on 1 January 2021 or would it be extended. If it is still in place, are these schemes available to all 
businesses in India, both domestic and foreign -owned?  
Reply: The details of MEI S and SEIS schemes can be found in India 's Foreign Trade Policy (FTP) 
2015-20. The MEIS has been discontinued for all shipments with effect from 01.01.2021. No 
alternate scheme has been notified yet. The SEIS scheme is available to service providers of not ified 
services  (Appendix 3D of the FTP). T he rates and eligible categories for the Financial Year 2019 -20 
are however not yet notified . SEIS scheme is available to both domestic and foreign -owned firms.  
Page 10  
SUMMARY   
20. In general, the programmes main tained to promote exports apply to all sectors. However, some 
are sector -specific, for instance those pertaining to agriculture. Most of these programmes did not 
undergo substantial changes since 2015; they provide for fiscal and financial incentives and 
marketing assistance. However, in 2015, the Export from India Scheme (EIS) was introduced. The 
EIS encompasses two schemes: the Merchandise Exports from India Scheme (MEIS), which replaced 
five schemes; and the Services Exports from India Scheme (SEIS). The  number of products covered 
by the MEIS, and the budget allocated to it, increased during the review period. The MEIS is 
scheduled to end on 1 January 2021; it will be replaced by a new scheme to reimburse exporters for 
taxes, duties and levies which are n ot exempt or refunded under any other existing scheme.  
Question 11: Please also share in detail regarding the new scheme that would be replacing the two 
schemes mentioned in Question 1. Will the new scheme have similar features of the two schemes 
and would  it be available to all businesses in India, domestic and foreign -owned?  
Reply: Details of the RoDTEP scheme have  not been notified yet.  WT/TPR/M/403/Add.1  
 
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  2.2.2  Trade policy objectives  
Page 34  
2.16.  To achieve these export targets, India uses incentives such as the Merchandise Export from 
India Scheme (MEIS), the Services Export from India Scheme (SEIS), and credit facilitation, to 
encourage exports. The objectives of the MEIS and the SEIS under the FTP is to offset infrastructural 
inefficiencies and associated costs  of exporters (Section 3.2.5.).10 On 1 September 2020, the 
Government announced that it would withdraw the MEIS from 1 January 2021.The latest amendment 
to the FTP in 2017 incorporated changes resulting from India's ratification of the WTO Agreement 
on Tra de Facilitation (TFA), including a reduction in the number of documents required for export 
and import, the single window interface for facilitating trade (SWIFT), and the establishment of the 
National Committee on Trade Facilitation.  
2.17.  While the overa ll goal remains to increase exports, since policymaking in India is largely 
focused on domestic issues, frequent use of trade policy is made to encourage domestic production 
and meet domestic inflation and supply objectives. Thus, changes are made as requi red to import 
and export restrictions and the tariff to ensure stable domestic supplies of key products. This was 
noted most recently in the report of the High -Level Advisory Group in September 2019, which stated 
that "international trade receives inadequa te attention both in the Government and outside in India, 
with the inward focus being visible across most institutions both in the public and private sectors". 
Frequent changes in import and export policy create uncertainty for economic actors. The report 
calls for a reduction and rationalization of the tariff, in order to make it simple and more predictable 
and, with regard to agriculture, recommends that "there must not be a 'stop and start' policy on 
exports and imports of agricultural products because t hat prevents farmers from taking objective 
decisions on sowing different crops"  
Question 12: How often is the FTP amended in the five years duration?  
Reply: While the Government strives for policy stability by ensuring that there are no significant 
change s in the policy during its currency, sometimes specific provisions of FTP may require changes 
under certain circumstances.  
Question 13: In India 's opinion, how would constant amendments to the FTP as well as frequent 
changes in import and export policy pro vide stability and predictability to investors and traders? How 
would this instability and unpredictability support India 's aim towards increasing FDIs in the country?  
Reply: FTP lays down basic framework of export/import policy. However, specific changes  in 
import/export restriction for a product may be carried out as and when required. Extensive 
deliberations and well laid out policy modalities and contours ensure that these changes are 
transparent and rational, thereby providing a stable and predictable  policy environment.  
2.3.1  WTO  
Page 36  
2.21.  India was involved in 24 disputes as complainant and 32 as respondent in the WTO. The status 
of disputes involving India since the last Review is shown in Table  
2.3. India was also a third party in 165 disputes  
Question 14: India is an active user of the Dispute Settlement Mechanism (DSM). As India has 
several cases pending for appeal and the Appellate Body has now been paralysed, what would be 
India's proposal to solve this issue?  
Reply: India, like Malaysia, is a co -sponsor of the proposal (WT/DSB/W/609/ Rev.19) to fill all the 
vacancies on the Appellate Body which have arisen since 2016. India recalls that filling vacancies on 
the Appellate Body is an obligation on the entire WTO Membership under the DSU. 
Consequently,  India's proposal is to restore the f ull strength of the Appellate Body by MC12.  WT/TPR/M/403/Add.1  
 
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  2.3.2  Regional and preferential agreements  
2.3.2.1  Regional trade agreements  
Page 37  
2.23. Most of India's RTAs are with its neighbouring countries, although a few were negotiated with 
countries further afield, notably in Latin America and Africa. During the period under review, trade 
in services and investment provisions entered into forc e under India's agreement with ASEAN and 
under the APTA. With regard to its specific commitments in the India -ASEAN agreement, India made 
improvements over its GATS commitments for some professional services, computer and related 
services, some telecommuni cations services, some health services, and some tourism services, 
although not for all ASEAN members.  
Question 15: Appreciate if India could indicate what are the improvements that have been 
undertaken in the India -ASEAN agreement?  
Reply: In the India -ASEAN FTA, India has provided 3 Schedules of Commitments - one each for 
Indonesia and Philippines, and one common for remaining 8 ASEAN Members. Upon comparison with 
the GATS level of commitment and liberali zation, it is observed that while India had made 
commitments in 36 sub -sectors in the GATS, India has maintained commitments in 36 sub -sectors 
for Philippines; improved the same to 47 for Indonesia, and to 49 for the remaining 8 ASEAN 
Members. The improvements over GATS have been made both in term of secto ral coverage and 
depth of commitment. Detailed information about India 's commitments in the services in the India -
ASEAN Agreement may be seen at https://asean.org/?static_post=ase an-india-free-trade -area-3 . 
Question 16: Could India could elaborate on the improvements made to its specific commitments 
(both in the Horizontal and Sector -Specific Commitments, if applicable) in the India -ASEAN 
Agreement in healthcare services?  
Reply: For health related and social services, th e sub -sector of hospital services has been committed 
by India in both GATS and the ASEAN FTA. Mode 2 MA and NT had been committed as "Unbound " 
in GATS whereas they have been liberalised to "None" commitments in the ASEAN FTA, for all 
countries except Phili ppines. India has newly committed medical and dental services and services 
provided by midwives, nurses etc. for all Members in the ASEAN FTA except for Philippines. At the 
horizontal level, for category of "Business Visitors ", under GATS, India had commit ted an entry of a 
period not more than 90 days whereas in the India -ASEAN Agreements, India has committed entry 
of a period not more than 180 days. Detailed information about India 's commitments in the services 
in the India -ASEAN Agreement may be seen at h ttps://asean.org/?static_post=asean -india-free-
trade -area-3. 
Question 17: Which ASEAN Member States have these been afforded to?  
Reply: In the India -ASEAN FTA, India has provided 3 Schedules of Commitments - one each for 
Indonesia and Philippines, and one c ommon for remaining 8 ASEAN Members. Upon comparison with 
the GATS level of commitment and liberali zation, it is observed that while India had made 
commitments in 36 sub -sectors in the GATS, India has maintained commitments in 36 sub -sectors 
for Philippine s; improved the same to 47 for Indonesia, and to 49 for the remaining 8 ASEAN 
Members. The improvements over GATS have been made both in term of sectoral coverage and 
depth of commitment. Detailed information about India 's commitments in the services in the India -
ASEAN Agreement may be seen at https://asean.org/?static_post=asean -india-free-trade -area-3. 
Question 18: Since the India -ASEAN FTA already has provisions relating to rules of origins, could 
India explain why importers in India would need to make a declaration in the Bill of Entry and Form 
I that the goods qualify as originating goods to benefit from preferential rate of duty under the FTA?  
Reply: The query raised pertains to the bilateral FTA, which does not fall within the purview o f TPRM 
[the function*  of the TPRM is to examine the impact of a Member's trade policies and practices on 
the multilateral trading system].  However, a comprehensive document containing relevant 
information on the CAROTAR 2020 is available in public domain, which may be referred at  
https://www.cbic.gov.in/resources//htdocs -cbec/customs/CarotarBrochure_8thOct2020.pdf   
[*Annex 3  to the Marrakesh Agreement estab lishing the WTO]  WT/TPR/M/403/Add.1  
 
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  2.3.2.1 Regional trade agreements  
Page 38  
2.25. The parties to the SAFTA completed negotiations on a new protocol on services (the SAFTA 
trade in services — SATIS —Agreement), which entered into force following ratification by all parties 
on 29 November 2012, but this has not been notified to the WTO. In November 2019, India declared 
that it would not sign the Regional and Comprehensive Economic Partnership (RCEP) Agreement, 
which now involves the ASEAN members and five other countr ies in the region (Australia, China, 
Japan, Republic of Korea, and New Zealand). Negotiations with a number of other trading partners 
continue, including Australia, Bangladesh, Canada, the European Union, the European Free Trade 
Area (EFTA), the Gulf Coope ration Council, Indonesia, Iran, Israel, Mauritius, New Zealand, Peru and 
the Southern African Customs Union (SACU), as well as the Bay of Bengal Initiative on Multi -Sectoral 
Technical and Economic Cooperation (BIMSTEC).  
Question 19:  India was previously o ne of the countries who participated in the Regional 
Comprehensive Economic Partnership (RCEP) negotiations, which was recently concluded in 
November 2020. Will India be joining the RCEP in the near future?  
Reply:  India is not part of RCEP as of now and is  not engaging in the RCEP in its current form.  
3.1.3  Tariffs  
3.1.3.2  Bound tariffs  
Page 49  
3.31. In 2014, India reserved the right to modify its Schedule XII under Article XXVIII:5 of the GATT 
1994 for the three -year period commencing 1 January 2015.  
Question 20: May we seek the current status of India 's reservation as per para. 3.31?  
Reply: India reserved the right to modify its Schedule XII under Article XXVIII:5 of the GATT 1994, 
during the next three -year period beginning on 1 January 2021 through the WTO document 
G/MA/395 dated 10 December, 2020.  
3.1.5.2 Import licensing and restrictions  
Page s 59–60 
3.56.  To facilitate the importation of restricted items, an import licensing system is in place. In 
2019/20 there were 440 tariff lines (3.7% of all tariff lines) subject to import licensing. All importers 
holding a valid IEC may apply for a licence. Import licences are issued, on an MFN basis, by the 
DGFT. The practice of routing import licensing applications through the sponsoring authorities was  
stopped. Applications are considered by the Exim Facilitation Committee, a single administrative 
organ, constituted for this purpose. Import licences are valid for 18 months, renewable for 6 months 
on merit. Fees are calculated based on the c.i.f. value o f imports, one per thousand of the c.i.f. 
value, with a minimum of INR 500 and a maximum of INR 100,000. Import licences are issued for 
a specific port as specified by the applicant. If the import policy specifies a port of entry for a 
particular product, then the licence will indicate it.  
Question 21: Does India have plans to notify the Import Licensing Committee on the Gazette of 
India Extraordinary Part -II, Section -3, Sub -Section (II), Notification No. 39/ 2015 -2020, and if yes, 
when will it be notified?  If not, we seek India 's explanation behind the delay in fulfilling this 
notification obligation?  
Reply: Notification on Import Licensing procedure to the WTO is under process.  
3.57 The DGFT may refuse to grant an import licence, inter alia, if the applica nt has contravened 
any law; if India decides to import through a STE; or if the applicant is not eligible in accordance 
with any provisions of the FTP. In addition, import licences of specified goods, services or technology 
may be suspended or cancelled wi thout giving prior notice to the licence holder. The importer WT/TPR/M/403/Add.1  
 
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  (exporter) may contest the decision, through the DGFT's grievance redressal mechanism, within 
six months, when it would be reassessed.  
Question 22: What is the mechanism in granting the import l icences as per para. 3.57?  
Reply: The import licensing procedure is laid down in para. 2.50 and 2.51 of Handbook of Procedure 
(2015 -20). For import of items which are under the 'Restricted ' list of import, an importer may 
submit an online application available at http://dgftcom.nic.in/eComapplications.html .  Such licen ces 
are authorized for clearance, every month, by the EXIM Facili tation Committee.  
3.57. The DGFT may refuse to grant an import licence, inter alia, if the applicant has contravened 
any law; if India decides to import through a STE; or if the applicant is not eligible in accordance 
with any provisions of the FTP. In add ition, import licences of specified goods, services or technology 
may be suspended or cancelled without giving prior notice to the licence holder. The importer 
(exporter) may contest the decision, through the DGFT's grievance redressal mechanism, within 
six months, when it would be reassessed.  
Question 23:  In order to ensure transparency and predictability for traders, why are the licence 
holders not being informed before their licences are suspended or cancelled?  
Reply:  The Foreign Trade (Development & Reg ulation) Act, 1992 as amended provides that no 
export or import shall be made by any person except in accordance with the provisions of this Act, 
the rules and orders made thereunder and the Foreign Trade Policy for the time being in force. 
Wherever the im porter fails to comply with the stipulations, there is a contravention of the condition 
imposed on the licen ce, and the licen ce is liable for suspension or cancellation under Section 9 of 
the Foreign Trade (Development & Regulation) Act, 1992, after provid ing a reasonable opportunity 
of being heard and passing a written cancellation or suspension order in terms of the FT(DR) Act 
and processes thereunder. These documents are available in the public domain and can be accessed 
at https://www.dgft.gov.in/CP/ .  
3.57.  The DGFT may refuse to grant an import licence, inter alia, if the applicant has contravened 
any law; if India decides to import through a STE; or if the applicant is not eligible in accordance 
with any provisions of the FTP. In addition, import licences of specified goods, services or technology 
may be suspended or cancelled without giving prior notice to the licence holder. The importer 
(exporter) may contest the decision, through the DGFT's grievance r edressal mechanism, within 
six months, when it would be reassessed.  
3.60.  Import licences are also used to administer quotas. Quotas are distributed on an MFN basis, 
unless there is a memorandum of understanding (MoU) with a trading partner.  
Question 24:  Appreciate if India could explain how quotas are being distributed fairly among its 
MFN trading partners.  
Reply: For this purpose, applications are invited from importers and the quota is distributed among 
the eligible importers. Imports thus are based on  applications received and there is no distinction 
made about the country of origin of imports.  
3.65.  On 5 September 2019, the import policy of certain items in Chapters HS72, HS73 and HS86 
was revised from being free to subject to compulsory registration under the Steel Import Monitoring 
System, to allow the authorities to monitor the trade volumes. Currently, no other goods are 
monitored.  
Question 25:  We seek further clarification on India 's decision to revise this policy and why other 
goods are not being  monitored?  
Reply:  Steel Import Monitoring system (SIMS) is a tool for collecting granular data in advance about 
intended steel imports into India.  On submission of online data / information, the system generates 
an automatic unique Registration Number, and n o manual documents are required to be submitted 
to any public authority for this purpose. It has been created to overcome the deficiency in import 
information as the d ata collected in the Bill of Entry is aimed at effective duty a ssessment and may WT/TPR/M/403/Add.1  
 
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  not be sufficient to figure out the exact grade of steel and its possible end use. SIMS data can be 
the basis of measures by the Government to prevent unfair trade practices in this sector.  
3.2 Measures Directly Affecting Exports  
3.2.4  Export prohibitions, restrictions and licencing  
Page 73  
3.110.  Export restrictions and prohibitions are notified on an annual basis; they are usually in place 
for a specific period. However, as with other trade policy instruments, during this period,  the DGFT, 
through a notification, may change the policy to meet specific policy objectives (e.g., self -sufficiency 
or containment of domestic prices). India continues to use trade policy to meet non -trade policy 
objectives, changing policies constantly, t hus diminishing the predictability of the trade policy 
regime. In addition, the use of export restrictions and prohibitions seems to be in contradiction with 
India's main trade policy goal, which is to increase its share of global exports from 2.0% in 2015  to 
3.5% by 2020 (Section 2.2.2).  
3.111.  In addition, export licences for specific goods, services or technology may be suspended or 
cancelled without giving the holder of the licence previous notice. The importer (exporter) may 
contest the decision within  six months of the order; it would then be reassessed. According to the 
authorities, this applies only to items specified in the Special Chemicals, Organisms, Materials, 
Equipment and Technologies (SCOMET) list, exports of which are regulated.  
Question 26:  We seek India 's clarification in relation to its frequent changes to its policies and 
implementation of the current system as per para. 3.110 and 3.111.  
Reply: The export  policy interventions are usually done to liberalize the exports further and 
restric tions or prohibitions on export items are imposed in rare circumstances. To the extent 
possible, policy is kept stable. As far as SCOMET policy is concerned, the policy revision is done on 
annual basis, based on the updates of various multilateral export c ontrol regimes to which India is 
a member. The policy revisions are made after prior consultation with all the stakeholders and 
implemented only after giving advance notice of minimum 30 days to the trade and industry for 
compliance.   
Question 27: In addit ion, how does India think that this would help with predictability and build 
investors / traders confidence on the country?  
Reply: The reply to Question above may be referred. As stated therein, extensive deliberations and 
well laid out policy modalities e nsure such changes are transparent and rational, thereby providing 
a stable and predictable policy environment.  
3.2.5 Export support and promotion  
3.113. India continues to implement a series of programmes to promote exports, which apply to all 
sectors; however, some are sector -specific, e.g. those that apply to agriculture (Section 4.1). Most 
of these programmes grant fiscal and financial incentives, while others provide marketing assistance.  
3.114. During the period under review, India did not provide a notification regarding export subsidies 
for agriculture goods.  
Question 28:  Appreciate if India could share the notification details of their export subsidies 
programmes.  
Reply:  India's Export Subsidies notification will be notified in due course . 
3.2.5.4 Transport and marketing assistance  
Page 78  
3.122.  On 1 September 2020, India announced that the Scheme would end on 1 January 2021. In 
addition, a limit of INR 20 million was placed on the value of exports that can benefit from the MEIS WT/TPR/M/403/Add.1  
 
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  between 1  September 2020 and 31 December 2020. The MEIS will be replaced by the Remission of 
Duties or Taxes on Export Products (RoDTEP), a scheme for exporters to get a reimbursement on 
taxes, duties and levies which are not exempted or refunded under any other ex isting mechanism.  
Question 29: Has the MEIS ended on 1 January 2021 as announced in September 2020? If it is still 
ongoing, we would like to seek India 's clarification on how the measure is in line with the WTO 
Agreements.  
Reply:  The MEIS scheme has been d iscontinued for all shipments with effect from 01.01.2021.  
3.2.5.4 Transport and marketing assistance  
Page 78  
3.122. On 1 September 2020, India announced that the Scheme would end on 1 January 2021. In 
addition, a limit of INR 20 million was placed on the value of exports that can benefit from the MEIS 
between 1 September 2020 and 31 December 2020. The MEIS will be replaced by the Remission of 
Duties or Taxes on Export Products (RoDTEP), a scheme for exporters to get a reimbursement on 
taxes, duties and lev ies which are not exempted or refunded under any other existing mechanism.  
Question 30:  We would like to seek further details on the Remission of Duties or Taxes on Export 
Products (RoDTEP) and confirmation on whether the new scheme is consistent with the WTO 
Agreements.  
Reply:  Details of the RoDTEP scheme have not been notified yet.  
3.2.5 Export support and promotion  
3.113. India continues to implement a series of programmes to promote exports, which apply to all 
sectors; however, some are sector -specific, e.g. those that apply to agriculture (Section 4.1). Most 
of these programmes grant fiscal and financial incentives, while others provide marketing assistance.  
3.114. During the period under review, India did not provide a notification rega rding export subsidies 
for agriculture goods . 
Page s 87-88 
3.174. The Plant Quarantine (Regulation of Import into India) Order, 2003 (PQ Order 2003) (as 
amended) and the Destructive Insects and Pests Act, 1914, are the main pieces of legislation that 
regula te India's National Plant Protection Organization (NPPO). The main objective of this legislation 
is to prevent the introduction of exotic pests posing a threat to agriculture; thus, they are amended 
as required by the changing phytosanitary conditions. To prevent the introduction and/or spread of 
quarantine pests and ensure their control, imports of plants/plant products (for consumption and 
propagation); germplasm/genetically modified organisms (GMOs)/transgenic plant material for 
research purposes; delete rious weed species; and live insects/fungi and other microbial 
cultures/bio -control agents may be prohibited, restricted or regulated.  
Question 31: Malaysia wishes to seeks clarification whether India has imposed any licen ce/permit 
requirements on importa tion or exportation of human remains, human tissues (including blood and 
blood components; cell, tissue and organs; semen), microorganisms and pathogenic substances 
(including the toxin), and biological goods.  
Reply: Import of human biological samples are permitted to specific institutes / purposes subject to 
undertaking by the importer to follow the applicable rules and regulations and procedure set by WHO 
and Government of India.  Import of Human Embryos is however prohibited, except for research 
purposes. However, export is permissible.  WT/TPR/M/403/Add.1  
 
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  3.3.4 Competition policy and price controls  
3.3.4.1. Competition policy  
Page s 91-94 
3.209.  In 2014/15 –2018/19, the Competition Commission of India (CCI) initiated 209 investigations 
on alleged anti -competitive pra ctices; 93 were initiated by the CCI itself. In 74 cases, the CCI found 
illegal practices, including 47 cartels (Table 3.33). Cartelization was greatest in sectors such as 
health and pharmaceuticals; information and broadcasting; and chemicals and fertiliz ers. In 
addition, 27 operators were found guilty of abusing their position, in sectors such as coal and real 
estate. The CCI approved most of the combinations that were notified, which took place in sectors 
such as financial markets; pharmaceuticals and he althcare; information technology; the automotive 
industry; power; and media and entertainment; 39 combinations were rejected, as the notice was 
incomplete.  
Question 32: Appreciate if India could elaborate on the cartelization in the healthcare sector and 
how has this been resolved?  
Reply: The cartelization in the health sector is being addressed by CCI through the twin tools of 
enforcement and advocacy. On enforcement side, CCI inquires cartels and other anti -competitive 
behaviour by ordering investigation s and also penalises, for established conducts.  
On advocacy side, CCI has taken out various outreach initiatives with stakeholders such as issuance 
of a public advisory for guidance, seminars, workshops etc. 
Question 33: Specifically, in the healthcare se ctor, besides carteli zation, have there been any other 
forms of anti -competitive practices committed and if so, kindly elaborate and what has been the 
measures taken to curb such practices?  
Reply: In addition to the details in the previous response, CCI has also received cases in the 
healthcare sector in respect of abuse of dominant position, for practices such as charging high prices 
and restricting patients from buying in open market. CCI enquires into these cases and various 
remedies incl uding cease and desist order and imposition of monetary penalties, are done for the 
established conducts.  
3.3.6  Government procurement  
Page s 100-101 
3.230. Government procurement is regulated by several pieces of legislation, in particular by the 
General Financial Rules (GFRs) (Table 3.38). The GFRs are issued by the Ministry of Finance. They 
contain general provisions, such as the methods and thresholds of procurement, that apply to all 
sectors. Generic guidelines to implement the GFRs are provided in pro curement manuals, also issued 
by the Ministry of Finance; these were last revised in 2017 (goods and services) and 2019 
(works).245 In addition, the procuring entities, such as the Ministries of Defence and Railways, may 
issue their own internal procuremen t manuals which, according to the authorities, are consistent 
with the GFRs.246 States have their own procurement provisions, which should be based on the 
GFRs; a few states also enacted their own procurement acts. India is an observer to the WTO 
Governmen t Procurement Agreement.  
Question 34: The DGS&D also handled vendors ' registration as well as enlistment of Indian agent 
of foreign suppliers. Appreciate if India could explain further on the registration procedure.  
Reply: The erstwhile DGS&D did handle vendors ' registration as well as enlistment of Indian agent 
of foreign suppliers up to 30.10.2017 when it was wound up. DGS&D is no longer in existence and 
government procurement is now done through Government e -Marketplace (GeM). Currently, GeM is 
meant only for Domestic Government Procurement/Bidding. However Indian subsidiaries of foreign 
companies can register and bid in the domestic government procurements in Rupee terms in GeM.  
Question 35: Based on the above report, complaints can only be made during awarding stage. Does 
India have any other mechanism for bidders to make complaints before the awarding stage  WT/TPR/M/403/Add.1  
 
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  Reply: Bidders are free to make complaints at any stage of procurement.  
Page s 101-102 
3.234.  In 2019, five methods were used to procure goods: (i) the advertised tender enquiry or open 
tender (the preferred procurement method); (ii) the limited tender enquiry; (iii) two -stage bidding; 
(iv) the single tender enquiry; and (v) the e -reverse auction (Table 3.39). The e -reverse auction 
was introduced in 2 017 to increase transparency, facilitate procedures, and promote 
competition.251 For instance, since 2018, the Indian Railway e -Procurement Systems (IPEPS) has 
used the e -reverse auction for all high -value procurement, i.e. procurement of goods above 
INR 100 million and of works and services above INR 500 million.252 The use of the procurement 
method depends on the threshold or other factors, such as a single source of supply or the 
complexity and high -value nature of the object to be procured. Up to May 20 20, overseas bidders 
could participate in an advertised tender enquiry, if goods were not available in India and the 
contract was above INR 2.5 million. In these cases, a global tender enquiry (GTE) was issued. Since 
May 2020, in order to promote self -reliance, Make in India, and MSMEs, global tender enquiries 
cannot be issued for tenders of up to INR 2 billion, or such limit as may be prescribed by the 
Department of Expenditure from time to time.  
Question 36: Can India provide further explanation on the cu rrent mechanism and threshold for 
Global Tender Enquiry (GTE).  
Reply: There is no bar on issuance of global tender enquiries to any value. Only for the small value 
tenders up to INR 2 billion, before issuance of global tender enquiries, approval of compete nt 
authority needs to be obtained.  
 
  WT/TPR/M/403/Add.1  
 
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  PERU  
WTO Secretariat Report (WT/TPR/S/403)  
"3,242. Since 2015, at least 25% (up from 20%) the value of the annual procurement of central 
procuring entities should be allocated to MSME. Of that 25%, 3% should be aimed at women -owned 
MSME. In addition, a 15% margin of preference is granted to MSME, and there are 358 items, 
including several handcrafted products, the acquisition of which is reserved for these companies. 
According to the Auditor General's 2018 audit report, more than 5,500 MSME had benefited from 
preferences, but some SOEs had purchased items reserved for those companies from other sources."  
Question 1: What definition of "women -owned MSMEs " does India implement in its public 
procurement policy?  
Reply : The Women owned MSMEs are defined on the basis of percentage share/Member/  
Contribution of Amount as mentioned below:  
• Hindu Undivided Family (HUF) - If she is "Karta " or the Head of the HUF unit.  
• Partnership (By Share) - 51%.  
• Co-Operative (By Member) -51% 
• Private Limited Company (By Share) -51% 
• Public Limited Company (By Share) -51% 
• Self Help Group (By contribution) -51% 
• Society (By Member) -51% 
• Trust (By Contribution) -51% 
WTO Secretariat Report (WT/TPR/S/403)  
4.45. Through the National Bank for Rural and Agricultural Development (NABARD), India provides 
grants for certain specific projects aimed at increasing investment, income and employment in 
sectors of national importance - such as the dairy, livestock and other sectors of the livestock 
industry - as well as the production of organic/biological inputs. The level of the subsidy, in particular 
in the case of the programmes of the National Mission for Livestock and New Infrastructure for the 
Marketing of Agricultural Products, may vary depending on the reg ion in which the producers are 
located, their income level and the type of beneficiary (e.g. women and farmers of castes and 
designated tribes).  
Question 2: How many women -owned businesses have achieved the export of their products 
through grants from the National Bank for Rural and Agricultural Development? If so, what 
percentage do women's -owned businesses represents that they have managed to export, with 
respect to the total number of businesses they have managed to export thanks to those subsidies?  
Reply: Data pertaining to women -owned businesses, which are engaged in export of their products 
through grants from the National Bank for Rural and Agricultural Development (NABARD) is not 
maintained.  
Question 3: What public and/or private actions, internation al or national, have been carried out in 
India during the period under review to encourage greater participation of women in international 
trade? What were your results?  
Reply: Government has supported and encouraged women entrepreneurship through various 
schemes such as MUDRA Scheme (providing soft loans to the women entrepreneurs), Stand -up India 
(financing women entrepreneurs) and the Self -Help Groups or SHGs (a voluntary group of 
10-20 people having similar socio -economic background in small contiguous area who operate on 
the principles of self -help, solidarity and mutual interest. They pool their little savings and manage 
their credit needs). Mahila -e-Haat, a direct online marketing platform, has also been launched to 
showcase products of women entrepre neurs, SHGs and NGOs. In order to encourage greater 
participation of women in trade and economic activities, a number of provisions have been 
incorporated in various labour laws for creating congenial work environment for women. These 
include child care ce ntres, enhancement in paid maternity leave from 12 weeks to 26 weeks, 
provisions for mandatory crèche facility in the establishments having 50 or more employees, 
permitting women in the night shifts with their consent and adequate safety measures, no WT/TPR/M/403/Add.1  
 
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  discrimination in an establishment or any unit thereof among employees on the ground of gender in 
matters relating to wages by the same employer, in respect of the same work or work of similar 
nature done by any employee. To enhance the employability of women, the Government is providing 
training to them through a network of Women Industrial Training Institutes, National Vocational 
Training Institutes, Regional Vocational Training Institutes, and a women specific window on the 
National Career Service (NCS) porta l. 
Question 4: Could India co -sponsor the Ministerial Declaration on Women's Trade and Economic 
Empowerment or, if not, participate in the Informal Working Group on Trade and Economic 
Empowerment of Women in the WTO?  
Reply: India believes that WTO should f irst complete negotiations on mandated subjects which have 
been decided by consensus. Only after completing negotiation on such subjects, India would like 
that resources of WTO should be used for other plurilateral engagements. India has always been at 
the forefront of initiatives and policies to further the empowerment of women. Having said that, 
India is a strong supporter of the WTO 's founding principle of consensus -based, multilateral 
negotiations and rule -making and does not support the fragmentation of the negotiation function 
into a plurilateral format that does not include all WTO Members.  
Peru highly appreciates  India's efforts to discourage illegal, undeclared and unregulated (IDNR) 
fishing through policies such as the implementation  of a catch certification system, as outlined in 
paragraph 4.52 of the Secretariat's report. Like India, Peru has a particular concern regarding 
IDNR  fishing, which threatens the sustainability of fishery resources. In this regard, Peru would like 
to raise  the following questions:  
Questions  5: How can the search for the sustainability of fishery resources, with the adoption of 
temporary or geographical  exceptions, be made compatible with the prohibition on subsidizing IDNR 
fishing, overfishing and overcapac ity?  
Reply: SDG 14.6 and MC11 recognize that appropriate and effective special and differential 
treatment for developing countries and LDC Members should be an integral part of these 
negotiations. The S&DT doesn 't mean that the developing countries will n ot practice good fisheries 
management. A good fisheries management is in the interest of every country including developing 
countries. The requirements of sustainability should be met by the presence of conservation and 
management measures in the jurisdict ion of developing countries, which they can enforce and 
implement as per their capacities.  
Questions  6: Goal 14.6 of the SDGs aims to "(…) eliminate subsidies that contribute to illegal, 
unreported and unregulated fishing and refrain from introducing new subsidies of this nature (…) ", 
without any particular differentiation. In this regard, does India consider that the adoption of 
exceptions to the elimination of subsidies for Unreported and Unregulated fisheries would bring us 
closer to ach ieving this goal?  
Reply: For a developing country to implement Unreported and Unregulated (U&U) disciplines 
effectively, it is essential that they acquire required capacities for various aspects including and not 
limited to catch reporting, establishing a robust VMS and implementing it through its agencies.  
Therefore, India believes that under U&U disciplines, S&DT in the form of the transition period is 
required for fishing in EEZ and RFMO areas for developing countries and LDCs to make them capable 
to imp lement the disciplines efficiently.  The exception from disciplines for U&Uz is required for 
territorial sea (up  to 12 nautical miles). IUU fishing is more about high seas fishing.  
  WT/TPR/M/403/Add.1  
 
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  KAZAKHSTAN  
QUESTIONS FROM SECRETARIAT REPORT (WT/TPR/S/403)  
Investment Regime  
Question 1:  According to subpara graph 2.30 of the TPR, a company may be established in India as 
a limited liability company, a branch or project office, a joint venture with a foreign investor, or a 
wholly foreign -owned company (subject to sectoral restrictions on foreign investment). What are 
the main differences in the treatment of the above forms of commercial presence? What are the 
differences in the regulation of local legal entities and direct branches of foreign companies?  
Reply:  Foreign investment is permitted in eligible Indian investee entities (as per the FDI Policy and 
applicable FEMA rules/regulations) such as companies and limited liability partnerships (LLPs) 
incorporated and regulated under Companies Act, 2013 and LLP Act , 2008 and rules/regulations 
thereunder or any other regulations as applicable. Joint venture companies or wholly owned 
subsidiary companies by foreign entities are incorporated under Indian law and are permitted in 
various sectors/activities subject to th e FDI Policy and relevant sectoral laws/regulations. Liaison 
Offices, Project Offices and Branch Offices of foreign entities are permitted only for few 
sectors/activities subject to the FDI Policy and relevant sectoral laws/regulations. Branch Office/ 
Liaison Office / Project Office or any other place of business in India by foreign entities are regulated 
under the Master Direction for the Establishment of Branch Office/Liaison Office/ Project Office or 
any other place of business in India issued under the FEMA 22(R) Regulations available on the 
website of the Reserve Bank of India i.e., https://www.rbi.org.in/ . India's FDI Policy is available on 
the website of the Department for Promotion of Industry and Internal Trad e i.e., 
http://www.dipp.nic.in . 
Customs procedures, valuation, and requirements  
According to para. 3.1.1, the Central Board of Indirect Taxes and Customs (CBIC) may fix reference 
prices ("tariff values") for certain i mported (exported) goods, based on their international prices and 
trends; these values are revised periodically.  
Question 2:  Hence, the question is, how is India's mentioned practice compatible with the basic 
requirements of the Agreement on Implementatio n of Article VII of the GATT 1994 (Customs 
Valuation Agreement), and what was the last time when these values were revised? Could you please 
provide us with the source of information where such the reference prices for certain imported goods 
into India can  be found?  
Reply:  The 'Tariff Values ' are calculated on the basis of prevailing international prices of these 
commodities, as published in the reputed international journals and publications.  The tariff values 
are neither arbitrary nor fictitious values in terms of Article 7 as these values a re computed for only 
a very limited number of commodities on the basis of trends of prevailing prices of such or like goods 
in the international market. These values are also not minimum values as these values are accepted 
as the assessable values for thes e commodities irrespective of whether the declared value for these 
commodities is higher or lower than these tariff values.  
The tariff values are not fixed but floating values and are reviewed and revised every fortnight based 
on international prices so a s to keep them close to the transaction values. Thus, the Tariff values 
are not inconsistent with Article 7 of the CVA. The values are reviewed every fortnight and can be 
seen at https://www.cbic.gov.in/resources//htdocs -cbec/customs/cs -act/notifications/notfns -
2020/cs -nt2020/csnt117 -2020.pdf . 
According to the Report , anti -dumping duties may not be levied on goods imported under  the 
Advance License Scheme (Advance Authorization Scheme) or on imports by EOUs/export processing 
zones (EPZs) units, even if such imports are from trading partners that are dumping or are under 
investigation. Besides, anti -dumping duties cannot be levied  on goods imported under a 
pre-licensing scheme (pre -authorization scheme) or imported by export -oriented/export processing 
enterprises, even if such imports come from trading partners that dump or are being investigated.  
Question 3:  Could India kindly cla rify if anti -dumping duties subject to Advance License Scheme 
conditions not applied to all countries' goods . WT/TPR/M/403/Add.1  
 
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  Reply: The goods imported into India against an Advance Licence or Advance Authorisation are 
exempted from anti -dumping duties subject to the conditions mentioned in Notification No. 93/2004 -
Customs dated 10.9.2004.  
Question 4:  According to the Report, safeguard duties are not levied on articles imported by export -
oriented undertakings (EOUs, foreign trade zones (FTZs) or SEZs). Does this mean t hat safeguard 
duties are not levied on articles imported by export -oriented undertakings from all countries?   
Reply: Yes, safeguard duties are not levied on articles imported by export -oriented undertakings 
unless, specifically made applicable in such noti fications or such impositions, as the case may be. 
The rule is applicable for imports from all countries.  
Question 5:  Could India explain does the legislation regarding countervailing measures contain 
provisions according to which countervailing duties may  not be levied on goods imported by EOUs? 
If the answer is negative, please indicate the reason.  
Reply:  There is no specific legislation for exemption.  
Question 6:  In paragraph 3.79 of the Report, it is clarified that sunset reviews must be concluded 
within 12 months of their date of initiation. The Central Government may, under special 
circumstances, extend this period by six months. Could India explain how this rule is in line with the 
provision of Article 11.4 of the Agreement on implementation of Artic le VI of the GATT 1994?  
Reply: As per provisions of Article 11.4, any such review shall be carried out expeditiously and shall 
normally be concluded within 12 months of the date of initiation of the review. As per India 's 
Anti-Dumping Rules also, sunset re views must be concluded within 12 months from the date of 
initiation. The period is extended by six months only in special circumstances . 
Transport  
Question 7:  Have there been any temporary restrictions or measures in the sphere of trade in 
services and investment related to the COVID -19 pandemic?  
Reply:  India has taken various measures in the wake of COVID -19 pandemic. For instance, a nation -
wide lockdown from March to May, 2020 along with temporary border closures and restrictions on 
international travel were imposed.  With respect to civil aviation services, scheduled international 
passenger flights have been suspended due to the COVID -19 pandemic. However, lim ited 
connectivity has been established with some countries through air travel bubbles. As on 08.01.2021, 
India has formalized air travel bubbles with 24 countries.  Despite the disruptions induced by the 
pandemic, Indian tech companies ensured that business  remained uninterrupted by adapting with 
95% of its employees working from home to fulfil their commitments to the global clients. This was 
facilitated by steps taken by the Government including relaxation of guidelines for Other Service 
Providers (OSP), w hereby,  the need to register with the government, frequent reporting obligations, 
requirement of bank guarantee etc. were done away with to promote ease of doing business. Further, 
in order to give relief to businesses and affected individuals amidst the s tress caused by the 
pandemic, the Government introduced several relaxations like extensions in deadlines with respect 
to compliances under the Foreign Trade Policy, Taxation etc.  
Tourism  
Question 8:  In the report, it was mentioned that the state -owned Tour ism Financial Corporation of 
India provides loans and guarantees for large and smaller -scale projects. Does this measure apply 
to foreign service suppliers as well?  
Reply:  The Tourism Finance  Corporation of India (TFCI) Ltd. is a listed entity with about 73 % of 
the shares being held by the public and 27 % shares by promoter and promoter group mainly foreign 
individuals and foreign portfolio investors.  The credit decision of extending loans and guarantees is 
left to the commercial judgment of the lending i nstitution, subject to meeting the regulatory and 
statutory  requirements . Further, information regarding  TFCI Limited may  be accessed at 
https://www.tfciltd.com . WT/TPR/M/403/Add.1  
 
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  Question 9: What are the possible barriers for foreign  service suppliers in the tourism sector, except 
for tourist guide services?  
Reply: India has strived to remove barriers for foreign service suppliers in the tourism sector. 
Government of India has allowed 100 % FDI in the sector subject to applicable laws/regulations, 
security and other conditionalities.  Many components of the tourism s ector come under the 'State 
List' of the Seventh Schedule of the Indian Constitution, service providers also need to comply with 
applicable laws/regulations and conditionalities put in place by the State governments.  
 
  WT/TPR/M/403/Add.1  
 
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  RUSSIAN FEDERATIO N 
TRADE POLICY REVIEW – REPORT BY INDIA  
2 ECONOMIC ENVIRONMENTS  
2.3 Investment Profile  
2.3.1 Foreign direct investment (FDI) and foreign portfolio investment (FPI)  
Page 9  
Question 1:  According to the World Bank, India ranked 8th in the world in 2019 in terms of fo reign 
direct investment (in 2018 - 13th). As the report states, during 2019 -20, FDI inflows reached an 
all-time high of USD 74.39 billion, registering an increase of 20% over the corresponding period a 
year ago. Which of the measures taken (recent reductio ns in foreign investment restrictions, the 
reduction in corporate rate of tax in 2019, establishment of one -stop digital platform, any others) 
have contributed to the greatest extent to the increase in investment inflows?  
Reply:  India is focused on carryin g out structural reforms and ensuring inclusive growth. All the 
measures taken by the Government in totality are responsible for attracting investment in the 
country, and the positive trends in India 's FDI inflow are an endorsement of its ease of doing bus iness 
initiatives which have rendered the country a preferred and attractive investment destination 
amongst global investors. Specifically, in the Investment arena, FDI policy has been significantly 
liberalized across sectors in the past few years. As a re sult of which, presently, FDI is permitted up 
to 100% under the automatic route in most sectors/activities. Further, Investment outreach, and 
handholding / facilitation of Investors is done on a continuous basis. Through its policies, Indian 
democracy prov ides a stable outlook on macroeconomic parameters with resilient economy. These 
make India a preferred destination for incoming investments.  
3 REFORMS: ECONOMIC POLICY AND OTHER INITIATIVES  
3.1 Economic Reforms and Better Delivery of Services  
3.1.5 Make in India  
Page 11 (para. 3.5) 
The 'Make in India ' initiative was launched in 2014, with the primary goal of making India a global 
manufacturing hub.  
Question 2:  Could India please provide more detailed information on recent developments of  the 
'Make i n India ' initiative (Make in India 2.0), including with respect to its elements aimed to increase 
India's attractiveness as a destination for FDI?  
Reply:  "Make in India' was launched on September 25, 2014, to facilitate investment, foster 
innovation, build ing best in class infrastructure, and making India a hub for manufacturing, design, 
and innovation. Ministry of Commerce & Industry is the main coordinating Ministry in the 
Government for this initiative. Investment outreach is being done through Ministrie s, State 
Governments and Indian Missions abroad, while identification of potential investors, and their 
handholding/facilitation is done through Invest India. Recently, Government has taken various steps 
in addition to ongoing schemes to boost domestic inv estments in India. These include the National 
Infrastructure Pipeline, Reduction in Corporate Tax, easing liquidity problems of NBFCs and Banks, 
etc. An Empowered Group of Secretaries to the Government of India, led by the Cabinet Secretary, 
has also been constituted to take decisions on cross cutting policy issues for facilitating and speeding 
up domestic and foreign investment. Simultaneously, Project Development Cells (PDC) for the 
development of investible projects have also been created in the differen t administrative ministries 
for expedited coordination between the Central Government and State Governments. These steps 
reinforce Government 's commitment towards promoting India as a favourable investment 
destination across the globe, along with improving  ease of doing business for the investors.  
Question 3:  We would be grateful to receive detailed description for potential foreign investors who 
can benefit from the latest incentives, changes in tax legislation and functioning of the new 
investments approv al mechanism with respect to various sectors of the economy.  
Reply:  Subsequent to the abolition of the Foreign Investment Promotion Board (FIPB), the work of 
granting government approval for foreign investment under the extant FDI Policy and FEMA WT/TPR/M/403/Add.1  
 
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  Regulati ons has been entrusted to the concerned Administrative Ministries/Departments. FDI 
proposals are filed through an online single -window system through Foreign Investment Facilitation 
Portal at https://fifp.gov.in/ . Procedure for Processing the Applications Seeking Approval for Foreign 
Investment has been mentioned in the Standard Operating Procedure (SOP) which can be accessed 
on Foreign Investment Facilitation  Portal at https://fifp.gov.in/Forms/SOP.pdf . Several other 
measures have also been taken in the recent past to make India more attractive for inviting both 
domestic and foreign investment, like, Tax exempt ion to Sovereign Wealth Funds and Pension Funds 
on income from their investments in infrastructure; Removal of Dividend Distribution Tax; 100% 
FDI through automatic route in various sectors (such as, Civil Aviation: greenfield and brownfield 
projects, Petr oleum & Natural Gas, Exploration activities of oil & natural gas fields); etc.  
4 EASE OF DOING BUSINESS AND TRADE FACILITATION  
Page 14 (para. 4.2) 
As a part of India 's commitment under the TFA (under Article 23.2 of the TFA), a National Committee 
on Trade  Facilitation (NCTF) has been set up under the Chairmanship of the Cabinet Secretary. This 
Committee periodically reviews the implementation of the TFA and facilitates domestic co -ordination 
towards it. Formulation of the National Trade Facilitation Action  Plan (NTFAP) 2017 -2020 was an 
early measure by the NCTF. The NTFAP has been envisioned as a live document containing 96 specific 
measures assigned to stakeholders with indicative timelines for implementation. The commitments 
underlined therein are the com mitments under the TFA as well as TFA+ commitments related to 
infrastructure and technology adoption. The collective aim of these measures is to enable a reduction 
in the overall release time associated with the clearance of goods with regards to:  
• Impor ts – less than 48 hours for Sea / ICD / ICP and less than 24 hours for Air  
•  Exports – less than 24 hours for Sea / ICD / ICP and less than 12 hours for Air  
Question 4:  Please describe India 's TFA+ commitments.  
Reply:  TFA+ category covers action points which go beyond the ambit of the TFA per se. These 
action points address infrastructure and technology augmentation required for cross border trade, 
prime enablers for trade facilitation in a developing economy beyond th e TFA agreement. These 
action points were a pivotal pillar for the National Trade Facilitation Action Plan (NTFAP) 2017 -20 
and have also been brought forward in NTFAP 2020 -2023. TFA plus category also covers crucial 
segments like Single Window enhancement,  port infrastructure development and last mile logistics 
infrastructure development. A few examples of TFA plus action points from NTFAP 2017 -20 are listed 
as: 
a. Increasing Non -Intrusive inspection and detection technologies by installing X - ray scanners at 
all ports for examination which should reduce physical examination based on opening 
consignments and to help in monitoring of dwell time on an actual basis.  
b. Increase the percentage of Direct Port Delivery (DPD) and Direct Port Entry (DPE) 
consignments. The  time taken at CFSs for clearance of goods will get reduced with the increase 
in coverage of DPD & DPE of consignments.  
Further details w.r.t. India 's TFA commitments may be seen at 
https://tfadatabase.org/members/india . 
6 INDIA AND THE WTO: STREN GTHENING MULTILATERAL SYSTEM  
6.5 Services  
Page 17 (para. 6.9 ) 
India has been playing a constructive role in services negotiations in the WT O. India has made efforts 
to reinvigorate the Work Program on Electronic Commerce with the belief that as the digital 
revolution is still unfolding, it is important to first understand the complex and multi -faceted 
dimensions of issues related to e -commerc e. India has accordingly been a proponent of 
strengthening the multilateral work under the non -negotiating and exploratory work program on 
e-commerce.  
Question 5:  Considering that India has been playing a constructive role in services negotiations in 
the WTO and its efforts to reinvigorate the Work Program on Electronic Commerce, it is inexplicable 
why India has blocked multilateral negotiation track on e -commerce issues. Today 86 Members 
(including developing and least developed countries) participate in developing of e -commerce rules WT/TPR/M/403/Add.1  
 
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  under the Joint Statement Initiative on E -commerce.  The success of this initiative depends on active 
participation of all WTO Members – developed, developing and the least developed countries. 
Therefore, could India please c larify the reasons for opposing multilateral e -commerce negotiations 
within the WTO?  
Reply:  India supports re -invigorating the exploratory and non -negotiating multilateral mandate of 
the 1998 Work Program on E -Commerce at the WTO which requires members to  comprehensively 
examine all trade -related issues relating to global E -Commerce, taking into account the economic, 
financial and development needs of developing countries. Adequate discussions on e -commerce have 
not taken place since the establishment of t his Work Program. Work Program on E -Commerce needs 
to be a standing item in the relevant WTO bodies with members undertaking structured discussions 
to understand the implications of the rapidly evolving, complex and multi -faceted dimensions of 
issues relat ed to e -commerce. These discussions should focus on developmental aspects of electronic 
commerce, examination of the challenges experienced by developing countries and LDCs in relation 
to e-commerce and exploring ways to address these challenges. India has  been an active participant 
in the discussions under the Work Program on E -commerce. India and South Africa made a joint 
submission under the Work Program on E -Commerce titled, 'The E -Commerce Moratorium: Scope 
and its Impact ' in March, 2020 and earlier in  June 2019 and July 2018 on the  key issues associated 
with the e -commerce moratorium. India is of the view that negotiation on rules in e -commerce would 
be premature at this stage especially given  the highly asymmetrical nature of the existing global 
e-commerce space. Binding rule on e -commerce at the WTO may have severe adverse consequences 
for future economic prospects of developing countries and LDCs. India maintains that our countries 
are not at the same levels of digital development and developing coun tries and LDCs need to first 
focus on improving domestic physical and digital infrastructure, creating supportive policy and 
regulatory frameworks and developing digital capabilities to bridge the digital divide and enable 
shared benefits of digitali zation. India is of the view that multilateral avenues, based on consensus, 
remain the most effective means to achieve inclusive development -oriented outcomes. In so far as 
joint statement initiatives (JSIs) are concerned, provisions governing plurilateral agree ments in the 
Marrakesh Agreement must be adhered to. Further,  JSIs should be without prejudice to the rights 
and obligations of non -participating Members in WTO Agreements.  
Question 6:  Please, present India 's view on how WTO e -commerce negotiations should be organized 
in order to satisfy developing countries ' concerns.  
Reply:  India is of the view that at the WTO, discussions on e -commerce should be undertaken 
pursuant to the exploratory and non -negotiating multilateral mandate of the 199 8 Work Program on 
Electronic Commerce.  Gains from e -commerce should not be confused with the likely benefits of 
rule-making in e -commerce. Negotiation on rules in e -commerce would be premature at this stage 
especially given  the highly asymmetrical nature o f the existing global e -commerce space. There is a 
need to understand the implications of rapidly evolving, complex and multi -faceted dimensions of 
issues related to e -commerce. Binding rules on e -commerce at the WTO may have severe adverse 
consequences fo r future economic prospects of developing countries.  
7 INDIA 'S BILATERAL TRADE ENGAGEMENTS: UNLOCKING MUTUAL BENEFITS  
Page 17  
Question 7:  How does India determine the scope of trade liberalization in the agreements? What is 
the percentage of tariff and tra de liberalization covered by each of the agreements?  
Reply:  India determines scope of trade liberalization based, inter alia, on a number of factors such 
as the reciprocity by trading partner, export interests in the trading partner, domestic sensitivity f or 
stakeholders, overall ambition in other areas of negotiations etc.  Concerned Agreements and 
Customs notifications contain details of tariff liberalization under various agreements. The level of 
tariff liberalization is contingent on, inter alia, many f actors like the reciprocity by trading partner, 
export interests in the trading partner, domestic sensitivity for stakeholders, overall ambition in 
other areas of negotiations etc.  
Question 8: Could India please provide a list of its FTAs that cover substa ntially all trade (according 
to Article XXIV of the GATT)?  WT/TPR/M/403/Add.1  
 
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  Reply: Trade agreement takes into account a number of factors such as the reciprocity of the trading 
partner, the available market access, value chain for the products, domestic sensitivity etc. All recent 
trade agreements are comprehensive and covers substantial trade volumes for both agricultural and 
non- agricultural goods. The list of India 's FTAs notified under GATT Article XXIV can be found at the 
WTO RTA database (http://rt ais.wto.org).  
Question 9:  What goods (groups of goods) does India usually exclude from the liberalization? Does 
India have any laws or regulations preventing it from granting concessions on these goods?  
Reply:  Coverage and Margin of Preference are determin ed, inter alia, by a number of factors such 
as the reciprocity by trading partner, export interests in the trading partner, feasibility of possible 
value chains, domestic sensitivity for stakeholders, overall ambition in other areas of negotiations 
etc., i ncluding whether it is a comprehensive agreement or a limited one.  
7 INDIA 'S BILATERAL TRADE ENGAGEMENTS: UNLOCKING MUTUAL BENEFITS  
7.3 Australia and New Zealand  
Page 18 (para. 7.4) 
Negotiations with New Zealand and Australia for a comprehensive agreement were launched in 2010 
and 2011, respectively. The scope of the negotiations cover trade in goods, services, investments, 
apart from other areas of economic cooperation. Ten rounds of negotiations under 
India-New Zealand CECA has bee n held so far, while nine rounds of negotiations have been held for 
India–Australia CECA.  
Question 10:  Could India please specify what is the expected scope of tariff and trade liberalization 
of the comprehensive agreement with New Zealand and Australia?  
Reply:  This is presently under discussion. Scope will meet the requirements of Article XXIV of GATT.  
Question 11:  What does India include in "other areas of economic cooperation "? 
Reply: This is presently under discussion. It could include bilateral co -operation in strategic sectors.   
Question 12:  Does India intend to include into the mentioned agreement any WTO+ commitments? 
Please describe, if possible.  
Reply: Agreement is still under negotiation. This can be answered in concrete terms only after the 
finalization of negotiations.  
7 INDIA 'S BILATERAL TRADE ENGAGEMENTS: UNLOCKING MUTUAL BENEFITS  
7.4 Americas  
Page 18 (para. 7.5) 
Limited scope preferential trade agreements were signed with MERCOSUR and Chile in 2004 and 
2006, respectively. India is in the pro cess of expanding these agreements by widening the product 
coverage and deepening preferences. India and Canada launched negotiations in 2010 for a 
Comprehensive Economic Partnership Agreement (CEPA), covering trade in goods, services, 
investments and econ omic cooperation and so far, ten rounds of negotiation have been held. 
Five rounds of negotiations under India Peru FTA have also taken place so far.  
 
Question 13:  For what reason the scope of abovementioned preferential trade agreements 
concluded with ME RCOSUR and Chile is limited?  
Reply: India – Chile and India – MERCOSUR have signed a Framework Agreement with an aim to 
promote the expansion of trade. As a first step towards meeting this objective India - Chile and India 
– MERCOSUR agreed for a limited s cope Preferential Trade Agreement on the basis of mutual gains, 
applicable tariff, products to be offered, restricted items etc.  WT/TPR/M/403/Add.1  
 
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  Question 14: Does India have any intentions to expand the trade covered under the agreements 
in the future? If so, when is Indi a planning to do so? In respect of which agreements?  
Reply: Yes, India is in the process of expanding the India - Chile PTA to widen and deepen its scope. 
The 1st meeting for expansion of India - Chile PTA was held in December 2019.  
Question 15: What will be the scope of trade and tariff elimination of the trade agreements with 
Canada and Peru?  
Reply: Five rounds of Trade Negotiations with Peru have been held so far covering goods, services 
and investment. India-Canada CEPA Negotiatio ns began in 2010 to discuss the trade and investment 
issues between the two Countries.  So far, 10 rounds of negotiations have been held. The scope of 
negotiation involves trade in goods, services and investment.  
7 INDIA 'S BILATERAL TRADE ENGAGEMENTS: UNLOCKING MUTUAL BENEFITS  
7.5 Europe  
Page 18 (para. 7.6) 
India began negotiating a Bilateral Trade and Investment Agreement (BTIA) with the European Union 
in 2007. Sixteen rounds of negotiations were held until 2013. Resumption of negotiations  is being 
explored. The India -EFTA TEPA (Trade and Economic Partnership Agreement) between India and the 
four-member EFTA was launched in 2008, with seventeen rounds of negotiations till date. India is 
also engaged with the UK for a Trade Partnership as it  assumes charge of its international trade 
policy.  
Question 16: Have the BTIA negotiations been suspended on a permanent basis? If not, what are 
the ambitions for the Agreement after the renewal of the negotiations?  
Reply: India is committed to work towar ds early re -initiation of BTIA negotiations with the EU, with 
an aim to deliver early gains for businesses in these tough times. In the recently held 15th India -EU 
Summit (15th July 2020), leaders from both the sides re -affirmed their commitment to work to wards 
balanced, ambitious and mutually beneficial trade and investment agreements, and agreed to 
establish a regular High -Level Dialogue at Ministerial level to provide guidance to the bilateral trade 
and investment relations. A convergence of views on the  India-EU BTIA is likely to emerge during 
the first meeting of the aforementioned High -level Dialogue, scheduled for early 2021.  
Question 17: Is a Trade Partnership with the UK an RTA or a preferential trade agreement? If this 
is an RTA, then what is its s cope?  
Reply: A roadmap for a Trade Partnership with UK is under discussion.  
TRADE POLICY REVIEW – REPORT BY THE SECRETARIAT  
1 ECONOMIC ENVIRONMENT  
1.2 Recent Economic Developments  
Box 1.1 The Atmanirbhar Bharat Abhiyan programme  
Question 18:  What are the criteria for identifying viable SMEs with growth potential?  
Reply: Criteria for identifying viable SMEs with growth potential are investment in Plant & Machinery 
and Turnover, Technology, R&D and Innovation, Export, Profit, Adoption of Zero Defect and 
Zero Effect (ZED) Certification and their graduation from Micro to Small or Small to Medium etc.  
Question 19:  Please describe which measures have been undertaken or are planned to be 
undertaken as part of the administrative and legislative reform with respect to investment 
facilitation?  What has been done (is planned to be done) with a view to (a) increase trans parency 
on investment policies or regulations; (b) streamline and/or speed up respective administrative 
procedures?  
Reply: Subsequent to the abolition of the Foreign Investment Promotion Board (FIPB), the work of 
granting government approval for foreign i nvestment under the extant FDI Policy and FEMA WT/TPR/M/403/Add.1  
 
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  Regulations has been entrusted to the concerned Administrative Ministries/Department. Procedure 
for Processing the Applications Seeking Approval for Foreign Investment is mentioned in the 
Standard Operating Pr ocedure (SOP) given at https://fifp.gov.in/Forms/SOP.pdf . This new regime 
has made changes only to the process of granting FDI approvals, by making them more facilitative. 
The investment policies and regula tions are transparent and available on the Government 's 
Department for Promotion for Industry and Internal Trade (DPIIT) website at  https://dipp.gov.in/ . 
In order to streamline administrative procedures further, an Emp owered Group of Secretaries, led 
by the Cabinet Secretary of India has been constituted, to take decisions on various industries ' 
schemes and projects, including cross cutting policy issues, for facilitating investment. The Project 
Development Cells have a lso been set up in all the administrative Ministries/Departments to facilitate 
the development of investible projects in coordination between the Central Government and State 
Governments to accelerate investment. This is complemented by the fact that FDI p olicy has been 
significantly liberalized across sectors in the past few years. As a result of which, presently, FDI is 
permitted up to 100% under the automatic route in most sectors/activities. Further, Investment 
outreach, and handholding / facilitation o f Investors is also done on a continuous basis.  
2 TRADE AND INVESTMENT REGIMES  
2.4 Investment Regime  
2.4.2 Foreign investment  
2.4.2.1 Policy framework  
Page 40  
Question 20:  Until June 2017 the Foreign Investment Promotion Board, based in the Ministry of 
Finance, was the main agency charged with examining and approving investment in sectors in which 
investment approval is required. Since 5 June 2017 examination and approval of such proposals has 
become the responsibility of the relevant ministry or departme nt in the sector in which the FDI is to 
take place. What is the reason for such transfer? How did these measures help to improve the 
situation?  
Reply: Subsequent to the abolition of the Foreign Investment Promotion Board (FIPB), the work of 
granting govern ment approval for foreign investment under the extant FDI Policy and FEMA 
Regulations has been entrusted to the concerned Administrative Ministries / Departments. This has 
been done primarily to expedite processing of the foreign investment proposals. Proc edure for 
processing the Applications seeking approval for Foreign Investment has been mentioned in the 
Standard Operating Procedure (SOP) which can be accessed on Foreign Investment Facilitation Portal 
at https://fifp.gov.in/Forms/SOP.pdf .  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements  
Page 43 (para. 3.2) 
Importers (and exporters) are required to register with the DGFT to obtain an Importer -Exporter 
Code (IEC). No import (export) can take place without this Code, unless specifically exempted. 
Exempted categories include imports (exports) by central or state governments; imports (exports) 
for personal use; and import s (exports) from (to) Nepal, Bhutan, Myanmar (through the 
Indo-Myanmar border areas) and China (through the Gunji, Namgaya, Shipkila and Nathula ports), 
if consignments are of a specific value.  
Question 21: The link No.2 (concerning the consignments of a s pecific value) is unavailable. Could 
India please provide the correct one?  
Reply: The same may be assessed at para. 2.07 of Chapter 2 of the Handbook of Procedures. The 
link to Chapter 02 is https://www.dgft.gov.in/CP/?opt=ft -procedures . 
Question 22:  Could India please explain the meaning of the "specific val ue" and name the issues 
when "the consignments of a specific value " are exempted from the obligation to obtain IEC?  
Reply: The Specific Value is indicated at para. 2.07 (a) (iv) of Handbook of procedures.  WT/TPR/M/403/Add.1  
 
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  3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Meas ures Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements  
Page 43 (para. 3.4) 
After obtaining an IEC, the importer (exporter) must present the mandatory documents to Customs, 
which is mostly done electronically. Prior to 2015, t he documents required to import were: bill of 
entry; commercial invoice; packing list; bill of lading; Foreign Exchange Control Form (Form A -1); 
terminal handling receipt; and certified engineer's report. In 2015, the number of supporting 
documents require d to import was reduced to three. These are: the bill of lading/airway bill, the 
commercial invoice cum packing list, and the bill of entry.4 Additional documents maybe required 
for imports (exports) subject to restrictions, to policy conditions, or to a N o-Objection Certificate, or 
that need to comply with a specific requirement under a statute.  
Question 23: The links No.4 & No.5 are unavailable. Could India please provide the correct ones?  
Reply: The details are at para. 2.06 of FTP (2015 -20). The link to  Chapter 2 of FTP is at 
https://www.dgft.gov.in/CP/?opt=ft -policy . 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements  
Page 43 (para. 3.6) 
In 2016, India introduced the Single Window Interface for Facilitating Trade (SWIFT). The main 
features of SWIFT are: (i) integrated risk assessment; (ii) automated routing; (iii) nine separate 
documents replaced by the Int egrated Declaration; and (iv) online clearances. At present, some 
50 government agencies are part of SWIFT; agencies are integrated gradually via circulars issued 
by the Central Board of Indirect Taxes and Customs (CBIC).  
Question 24:  Could India please c larify which "nine separate documents " were replaced by the 
Integrated Declaration?  
Reply: The integrated Declaration replaces these 9 separate forms that an importer or his broker 
was supposed to file with various agencies:  
1. Customs Bill of Entry,  
2. Custom s valuation declaration,  
3. Application for import of livestock products,  
4. Application for import of pet animals/aquatic/other animals, birds and poultry (chicks),  
5. Application for quarantine inspection and clearance of imported plants/plant products,  
6. Assistant Drug (ADC) Drug sheet for import  
7. Additional ADC Sheet for drug category and composition,  
8. Application for post shipment examination by the Wildlife Crime Control Bureau,  
9. Application form for NOC from FSSAI for food items imported into India  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements  
Page 44 (para. 3.8) 
A Risk Management System (RMS) was introduced in all Customs locations where the ICES is 
operational. Bi lls of entry are cleared through the RMS. The verification and/or examination of the 
imported goods is done selectively, based on the RMS. In general, only high -risk consignments are 
subject to detailed verification before clearance. As at February 2020, ( latest available data) 66% 
of all bills of entry were cleared through the green channel (neither physical nor document 
examination); and 12% underwent a document check. The verification of the bill of entry depends 
upon the classification, value, rate of d uty, and any other information that may have a bearing on WT/TPR/M/403/Add.1  
 
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  the assessment of the duty levied. Bills not requiring verification are cleared immediately upon 
payment of duty and other charges, if any.  
Question 25:  According to the information provided in TPR 66% of all the bills of entry were cleared 
through the green channel (neither physical nor document examination); and 12% underwent a 
document check. Could India clarify the situation with the rest 22% of the bills since they were 
neither cleared through t he green channel nor underwent a document check?  
Reply: The rest 22% of the bills of entry were subjected to physical and document examination.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, val uation, and requirements  
Page 45 (para. 3.16) 
Preshipment inspection is mandatory for imports of un -shredded and shredded metallic waste and 
scrap; paper, paperboard and paperboard waste; and second -hand and defective steel products 
(Table 3.1). However, s ince 2018, all metal scrap originating in Australia, Canada, New Zealand, the 
United Kingdom, and the United States, entering through the ports of Chennai, Tuticorin, Kandla, 
Jawaharlal Nehru Port Trust (JNPT) (Mumbai), and Krishnapatnam, are exempted from  this 
requirement.15 Imports of shredded metallic waste and scraps are allowed through all ports of India, 
while those of un -shredded metallic waste and scrap are permitted only through designated ports. 
Preshipment inspections ensure that consignments do not contain hazardous materials, toxic waste, 
radioactive waste/scrap, any type of arms, ammunition, mines, shells, live or used cartridges, or 
any other explosive material in any form. Preshipment inspection certificates are issued by 
accredited certifyin g agencies, located within and outside India. Certificates attest that the 
consignments have been checked for radiation levels.  
Question 26: The report says that since 2018 all metal scrap originating in Australia, Canada, New 
Zealand, the United Kingdom,  and the United States, entering through certain ports, are exempted 
from preshipment inspection. Could India please clarify whether such exemptions are referred to all 
metal scrap originated only in the mentioned countries or also in the other ones?  
Reply : The Import of shredded and un -shredded metallic waste and scarp scrap are subject to 
pre-shipment inspection certificate from the country of origin. However, requirement of PSIC is 
exempted for metal scrap originating in Australia, Canada, New Zealand, the United Kingdom, and 
the United States, entering only through specific eight ports as in para. 2.54(d)(v) (iv) of the 
Handbook of Procedures (2015 -20). Import from all other ports irrespective of the country of Origin 
is subject to Pre -Shipment inspection certificates.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting I mports  
3.1.1 Customs procedures, valuation, and requirements  
Page 46 (para. 3.17) 
Customs valuation continues to be regulated by the Customs Act, 1962 (as amended); and the 
Customs Valuation Rules (Determination of Price of Imported Goods) Rules, 2007 (as amended), 
which regulate the application of the WTO Agreement on Customs Valuation. In general, India uses 
the transaction value, adjusted for costs incurred by the buyer that are not included in the price of 
the imported good, as the customs value for imp orted goods. These costs are added to the price 
actually paid for the imported good. The Central Government can, however, adopt other rules to 
determine the transaction value of the imported goods. In addition, under the Customs Act, the 
CBIC may fix refer ence prices ("tariff values") for certain imported (exported) goods, based on their 
international prices and trends; these values are revised periodically. The tariff value is used to 
calculate customs duty (Table 3.2).  
Question 27:  Could India please provide detailed information concerning the possibility of the 
Central Government to adopt other rules to determine the transaction value of the imported goods? 
Has such opportunity ever been realized? If so, please provide the legal ac t on the basis of which WT/TPR/M/403/Add.1  
 
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  the Central Government has adopted those new rules (the link of such act is appreciated). Please 
elaborate on the application of such rules in order to determine the transaction value of the imported 
goods.  
Reply: The Valuation of i mported goods is done in terms of Section 14 of Customs Act, 1962, 
supported by Customs Valuation (Determination of Value of Imported Goods) Amendment Rules, 
2017.  The link is as below:  
https://www.cbic.gov.in/htdocs -cbec/customs/cs -act/formatted -htmls/cs -rulea1  
Question 28:  According to the TPR "the CBIC may fix reference prices ("tariff values") for certain 
imported (exported) goods, based on their international prices and trend; these values are revised 
periodically ". Could India please provide the source where such information (fix reference prices) is 
published (the link is appreciated)?  
Reply: Following link may be seen for tariff value notifica tion: 
https://www.cbic.gov.in/resources//htdocs -cbec/customs/cs -act/notifications /notfns -2021/cs -
nt2021/csnt04T -2021.pdf;jsessionid=94C2A6B77A2AF2B3FB7DBD69D3F7711D  
Question 29: How often are such fix reference prices revised? Please clarify the possible 
consequences that may happen in the situation when the declared customs value of i mported 
(exported) goods is lower/higher than such fixed reference prices.  
Reply: The fixed reference prices are revised every fortnight. In all cases, whether declared customs 
value is lower or higher, the customs duties are assessed based upon the fixed reference price (tariff 
value).  
Question 30:  Is the list of goods subject to tariff values (Table 3.2) exhausted and in the latest 
revision? If not, please provide the updated information.  
Reply: At present, there is no further change in the list.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.3 Tariffs  
3.1.3.1 Applied tariffs  
Page 47 (Table 3.3 ) 
Question 31:  How could India explain 0% of tariff quotas of all tariff lines in Table 3.3 taking into 
account all the quotas  mentioned in Table 3.4?  
Reply: Out of the 11,900 lines considered for calculation in Table 3.3., t otal number of tariff lines 
with tariff quotas are 14.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.3 Tariffs  
3.1.3 .1 Applied tariffs  
Page 48 (para. 3.26) 
The simple average applied MFN tariff increased from 13.0% in 2014/15 to 14.3% in 2020/21, and 
to 15.4% if AVEs are considered (Table 3.3). At the time of the last Review, the average tariff had 
also increased from 1 2% in 2010/11 to 13% in 2014 -15, due mainly to an increase in the tariffs 
affecting agricultural products (WTO definition) (36.4% in 2014/15). However, in 2019/20, the 
increase in average tariff was due to an increase in the average tariff of non -agricultu ral goods, 
which rose from 9.5% to 10.8%, or to 12.0% if AVES are considered (Table 3.3). The average MFN 
tariff for non -agricultural products rose, due to a general increase in all tariff rates, except for tariffs 
on transport equipment, which decreased f rom 32.1% to 23.0%. The most important increase 
affected clothing, with the average tariffs rising from 10.0% to 19.6%. Despite the increase in tariffs 
regarding non -agricultural products, protection for agricultural products (WTO definition), albeit WT/TPR/M/403/Add.1  
 
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  declining from 36.4% in 2014/15 to 34.8% in 2019/20, remains considerably higher than the 
average protection for non -agricultural products. The decline in the average tariff for agriculture is 
mainly due to a decline in tariffs for cereals and preparations ther eof (from 40.9% in 2014/15 to 
32.7% in 2019/20), and of oil seeds and fats (from 33.2% in 2014 -15 to 26.7% in 2019/20). Most 
agricultural products continue to benefit from above -average tariff protection, especially beverages, 
spirits and tobacco (81.1%), and coffee and tea (74.8%) (Table A3.1).  
Question 32: Please provide the reasoning for an increase in tariffs on clothing.  
Reply: Clothing manufacturing is a significant economic activity in India in terms of employment, 
investment and its share in manufacturing. Tariffs are prescribed taking into account all relevant 
factors, including India 's international obligations, such as bound rate commitments, and after 
extensive deliberation. The decision on tariff rates on clothing has also been guided by these 
considerations.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.3 Tariffs  
3.1.3.3 Tariff rate quota (TRQ)  
Pages 49 -50 (Table 3.4 and para. 3.32) 
India continues to maintain MFN TRQs for skimmed milk and some types of cream (HS0402.10 and 
HS0402.21), maize (HS1005.90), crude sunflower or safflower seed oil (HS1512.11), and rape, colza 
or mustard oil (HS1514.19 and HS1514.99). India also negotiated TRQs under its bilateral 
agreements with Sri Lanka and Nepal (Ta ble 3.4). Since 2017, India has also implemented a TRQ of 
300,000 metric tonnes for raw sugar (HS1701), at an in -quota rate of 25%, as a unilateral market 
access trade facilitation measure.  
Question 33:  There is no mention of the TRQ on raw sugar in the Table 3.4 even though it is 
mentioned in para. 3.32. Could India please explain the reason for this? In addition, could India 
please explain why hasn 't this quota been filled since 2017?  
Reply: TRQ on raw sugar is a part of India's unilateral market access m easure, hence not captured 
by Table 3.4 of the Secretariat Report. Since 2017 -18 sugar season, production of sugar in the 
country exceeded the domestic demand and hence from 2017 -18 season onwards, this quota could 
not be filled completely.  
3 TRADE POLICIE S AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.3 Tariffs  
3.1.3.3 Tariff rate quota (TRQ)  
Page 50 (Table 3.4 and para. 3.34) 
In general, there are no imports under TRQs; fill ratios are very low. According to the authorities, in 
certain instances, this is because the out -of-quota rate (i.e., the MFN tariff rate) is lower than the 
in-quota rate; hence, there is no need to use the quota. As result, in 2018 -19, imports of rape, colza 
and mustard oil exceeded the TRQ q uantities.  
Question 34:  Could India please explain the reason for applying the 50% in -quota rate and 35% 
out-of-quota rate for crude sunflower or safflower seed oil (HS Code 1512.11)?  
Reply: MFN rates are reviewed periodically taking into account all prev ailing relevant factors in 
respect of a product. Having lower out of quota tariff in comparison to in - quota tariff is a part of 
liberal trade policy for import of crude sunflower or safflower seed oil.  
Question 35: What is the purpose of this quota taking  into account that its fill rate is only 0.3% 
and the out -of-quota rate is lower than an in -quota rate?  WT/TPR/M/403/Add.1  
 
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  Reply: During 2018 -19, the prevailing MFN applied tariff of Rape, colza or mustard oil and fractions 
thereof (HS lines 151419 and 15149) was equal to th e in-quota bound TRQ rate. Total import of this 
product during 2018 -19 was only 436.66 MT which is 0.3% of the total quota.  Having lower out of 
quota tariff in comparison to in - quota tariff is a part of liberal trade policy for import.  
Question 36: The Re port states, "the out -of-quota rate is lower than the in -quota rate…as result, 
in 2018 -19, imports of rape, colza and mustard oil exceeded the TRQ quantities ". However, in the 
table 3.4 the in -quota and out -of-quota rates are the same. Could India please c omment on that?  
Reply: During 2018 -19, the prevailing MFN applied rate of Rape, colza or mustard oil and fractions 
thereof (HS lines 151419 and 15149) was equal the in -quota bound TRQ rate as notified in India's 
MA:2 notification for year 2018 -19 to the WT O(G/AG/N/IND/17).  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.3.4 Tariff concessions  
Pages 50 -51 (para. 3.35) 
India continues to maintain a number of tariff concessions or exemptions that are granted on the 
grounds  of public interest, to, inter alia, reduce the cost of essential imports, and promote domestic 
value addition. These concessions are granted by issuing gazette notifications under Section 25(1) 
of the Customs Act. For instance, because of COVID -19, items such as artificial respiration or other 
therapeutic respiration apparatus (ventilators), face masks and surgical masks, personal protection 
equipment, and COVID -19 testing kits were exempted from import duties until 30 September 2020. 
Tariff concessions ar e also granted under different schemes implemented to promote exports, such 
as the Export from India Scheme (EIS), the Duty Exemption/Remission Schemes, export oriented 
units (EOUs), electronics hardware technology parks (EHTPs), software technology parks (STPs), 
and bio -technology parks (BTPs) (Section 3.2.4).  
Question 37: What types of products are subject to the mentioned schemes implemented to 
promote exports?  
Reply: The details of the schemes, including product coverage, can be found in India 's Foreig n Trade 
Policy 2015 -20. MEIS was based on the export of notified goods (as under Appendix 3B).  MEIS has 
been discontinued for all shipments with effect from 01.01.2021. SEIS scheme is available to service 
providers of notified services (as in the Appendix 3D of the Foreign Trade Policy).  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.3.5 Tariff preferences  
Page 51 (Table 3.5 ) 
Question 38: What does the scope of the agreement depend on? What are the reasons for the 
limited scope agreements?  
Reply: Scope of agreement depends upon, inter alia, number of factors such as the reciprocity by 
trading partner, export interests in the trading partner, feasibility of possible value chains, domestic 
sensitivity for stakeholders , overall ambition in other areas of negotiations etc.  
Question 39:  Does India have any plans to expand the scope of the agreements?  
Reply: Expansion of scope of agreement depends upon mutual interest of the parties.  
Question 40: In the FTA with Singapore 27.7% of tariff lines are duty -free. Could India please 
confirm that 72,3% of tariff lines are therefore excluded from liberalization?  
Reply: As mentioned in the Table 3.5,  27.7% of tariff lines in the FTA with Singapore are duty -free. 
In addition, 45.5% o f the lines have been mentioned as preferential thus, lines excluded from 
liberalization are only 26.8 %.  WT/TPR/M/403/Add.1  
 
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  3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.4 Other charges affecting imports  
Page 53 (para. 3.42) 
The intro duction of the GST is expected to widen the tax base and reduce tax evasion. The tax base 
is to widen, as the GST affects most goods and services. The GST is expected to reduce tax evasion, 
as the taxes are collected at each stage of the supply chain. The GST taxes only the value addition. 
Thus, taxpayers may get a credit for taxes paid on inputs (input tax credit) at the previous stage of 
production. Credits may be taken on taxes paid on all goods and services, other than a few items 
included in the negati ve list. Credits may be used to pay output tax. Unutilized tax credits can be 
carried forward. In addition, as the GST replaced several taxes, taxpayers are not required to 
maintain records or show compliance with a myriad of indirect tax laws.  
Question 41 : Could India please clarify what is meant by "the taxes are collected at each stage of 
the supply chain "? Is the GST collected once when goods are imported or not?  
Reply: GST is not a surcharge on import of goods. It is a domestic tax that equally applies  to 
domestic and imported supplies of goods and services. GST is payable on goods and services at the 
time of their supply, or as the case may be, at the time of imports . Further  information on the 
implementation of GST can be accessed by visiting the foll owing links:  
http://gstcouncil.gov.in/ , https://www.cbic.gov.in/htdocs -cbec/gst/index -english  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.4 Other charges affecting imports  
Pages 53 -54 (para. 3.44) 
The GST is a destination -based consumption tax. The reven ue derived from it accrues to the state 
or the union territory (UT) where the consumption takes place. The GST is simultaneously levied by 
the Central Government and the states/UTs at a common rate (Table 3.7). Intra -state supply of 
goods and/or services i s subject to the Central GST (CGST), collected by the Central Government; 
and to the state GST (SGST) or the union territories GST (UTGST), collected by the states/UTs 
accordingly. The integrated GST (IGST), equivalent to the CGST plus the SGST/UTGST, is l evied and 
collected by the Central Government on all inter -state supply of goods and/or services, and on 
imports. There is a mechanism for settling transactions between states. Accounts are settled 
periodically between the Central Government and the states  and the UTs, to ensure that the 
SGST/UTGST portion of the IGST is transferred to the state/UT where the goods or services 
consumed. The share of states in the CGST and IGST for the 2015 -20 period was 42%, and during 
2020-21 it will decrease to 41% due to revenue to be provided to the new UTs created in 2019.  
Question 42:  Could India please confirm that both domestic and imported products are being levied 
the same Goods and Service Tax? If so, are there any exceptions, exemptions or preferences for 
domesti c products?  
Reply: GST is a domestic tax that applies equally to both domestic and imported products. There 
are no exceptions, exemptions or preferences for domestic products.  
Question 43: When does the producer have to pay the Goods and Services Tax? At the moment 
when the product is being released regardless of its production site and its sales location or not?  
Reply: GST is payable on goods and services at the time of their supply, or as the case may be, at 
the time of imports. Exports are zero rated.  
Question 44: Does the manufacturer have to pay tax each time the goods cross a country -border?  
Reply: GST is payable on goods and services at the time of their supply, or as the case may be, at 
the time of imports. Exports are zero rated.  WT/TPR/M/403/Add.1  
 
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  Question 45:  Have there been any cases when the producer paid only one of the taxes: CGST or 
SGST/UTGST? If so, please provide information on such cases.  
Reply: Both CGST and SGST/UTGST apply to all intra state supplies of goods and services. Inter -
state supplies and impor ts attract IGST. IGST Rate is equal to the sum of CGST and SGST/UTGST.  
Question 46: Does the tax have to be paid each time the goods cross a border inter -state? If so, 
what is the point?  
Reply: GST applies on supply of goods, including on inter -state suppl ies. 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.4 Other charges affecting imports  
Page 54 (para. 3.46) 
The list of exempted goods and services is the same at the central and state levels. The GST applies 
to all goods other than alcoholic beverages and five petroleum products (i.e. crude petroleum, motor 
spirit (petrol), high -speed diesel, natural gas, and aviation turbine fuel). The GST Council will 
recommend the date when these goods will be subject to the GST. Goods that fall outside the purview 
of the GST, when imported, are still subject to the AD and the SAD. Tobacco and tobacco products 
are subject to GST and, in addition, the Central Government may levy a Central Excise Duty. At 
present, the Central Excise Duty on tobacco is 0%. Some services are exempted from the GST.  
Question 47: Is there any legal document stipulating the rate of the AD and the SAD to be paid on 
alcoholic beverages and petroleum products?  
Reply: On import of alcoholic beverages, neither AD nor SAD is levied. On import of certain 
petroleum products, Additional Duty (AD) in lieu of Central Excise duty is levied. Section 3 of the 
Custom Tariff Act, 1975 is the legal document on the basis of which these rates are stipulated.    
Question 48: What does the rate of the AD and the SAD on alcoholic beverages and petroleum 
products depend on?  
Reply: On import of alcoholic beverages, neither AD nor SAD is levied. On import of certain 
petroleum products, Additional Duty (AD) in lieu of Central Excise duty is levied.  
Question 49: Do domestic producers have to pay the AD and the SAD on alcoholic beverages and 
petroleum products?  
Reply: Domestic producers pay VAT and State Excise Duty on alcoholic beverages and Central Excise 
Duty on certain petroleum pro ducts.  
Question 50: Does the Central Excise Duty on tobacco apply both to domestic and imported 
products?  
Reply: Imported tobacco products attract additional duty of Customs equal to the Central Excise 
Duty on tobacco.  
Question 51: Is there any legal act t hat states the conditions for changing the Central Excise Duty 
on tobacco?  
Reply: Central Excise Act, 1944 is the legal Act which deals with fixing Central Excise Duty on 
tobacco.  
Question 52: What is the possible ceiling value of the Central Excise Duty?  
Reply: Ceiling value of Central Excise Duty on tobacco products is specified in Schedule 4 of Central 
Excise Act, 1944 (available at www.cbic.gov.in ).  WT/TPR/M/403/Add.1  
 
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  3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly A ffecting Imports  
3.1.4 Other charges affecting imports  
Page 54 (para. 3.47) 
There are also exemptions on the application of the GST, based on the threshold of aggregate 
turnover in a financial year. Exemptions apply to: taxpayers (goods only) with an aggregate turnover 
of up to INR 4 million; and taxpayers (goods and services, or services only) with an aggregate 
turnover of up to INR 2 million. In addition, small taxpayers with an aggregate turnover of up to 
INR 5 million (services) or INR 15 million ( goods or restaurants) may opt to use the composition 
levy. Under this scheme, the taxpayer is taxed a fixed GST rate on turnover: 1% (goods); 5% 
(restaurants); or 6% (all other services).  
Question 53: Is it possible for the importer also get exemptions on  the application of the GST?  
Reply: Threshold exemption is not recipient based. Just like domestic recipient of taxable supplies, 
importers cannot get this exemption.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.4 O ther charges affecting imports  
Page 54 (para. 3.49) 
As per the Goods and Services Tax (Compensation to States) Act, 2017, a GST Compensation Cess 
is levied on the supply of domestic and imported goods and services, as recommended by the GST 
Council. The Ce ss is used to finance the compensation to the states for the loss of revenue arising 
on account of the implementation of the GST. Compensation will be provided to a state for a period 
of five years from the date on which the state brings its SGST Act into force. In general, the Cess is 
ad valorem (15%), with some exceptions for tobacco products (HS24) and coal (HS2701, 2702 and 
2703) for which it is specific.  
Question 54:  What does India consider as losses that arise on the account of the implementation 
of the GST and that can be compensated?  
Reply: It is the difference between the projected revenue and the actual revenue in GST. Please 
refer to Section 6 and Section 7 of GST (Compensation to States) Cess Act, 2017 (www.cbic.gov.in).  
Question 55:  Who pays th e GST Compensation Cess?  
Reply: Like GST, Compensation Cess is paid by person making taxable supplies, or as the case may 
be, importers.  
Question 56:  In the Schedule of the Goods and Services Tax (Compensation to States) Act, tobacco 
products and coal are not the only exceptions: there is also Pan Masala (HS Code 2106 90 20), 
aerated waters (HS Code 2202 10 10) and motor cars and other motor vehicles (HS Code 8703). 
India also puts "any other supplies " without any specific HS Code at the end of the list. Wh at does 
"any other supplies " mean? If "any other supplies " covers every other product of the tariff, then why 
are aerated waters as well as motor cars and other motor vehicles listed separately when their cess 
rate is also 15%?  
Reply: The said Schedule prescribes the maximum (tariff) rate of Compensation Cess tha t could be 
levied on taxable supplies. However, Compensation Cess is applied only on few items such as pan 
masala, tobacco products, specified automobiles, coal and aerated water. For details, please visit 
www.cbic.go v.in. 
Question 57:  In the Schedule there is only the maximum rate at which goods and services tax 
compensation cess may be collected. Does that mean that a lower cess can also be collected? If so, 
are there any conditions for paying a lower cess?  WT/TPR/M/403/Add.1  
 
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  Reply: Compensation Cess applies only to few items such as pan masala, tobacco products, specified 
automobiles, aerated water and coal. All other items are exempt from Compensation Cess. Applicable 
GST Compensation Cess Rates are unconditional.  
3 TRADE POLICIES AND  PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.4 Other charges affecting imports  
Page 54 (para. 3.50) 
Other changes regarding the charges on imports were the elimination of: The Clean Energy Cess on 
coal, lignite and peat, in 2017; and t he Education Cess and Secondary and Higher Education Cess, 
in 2018. Instead, a Social Welfare Surcharge (SWS) of 10% on the basic customs duty was put in 
place in 2018, to finance education and other social welfare schemes. The SWS is only levied on 
import ed goods, not on domestic goods. Customs duty plus the SWS are levied on all imports, unless 
exempt.  
Question 58: Could India please clarify why the SWS is levied only on imported goods, not on 
domestic ones?  
Reply: Social Welfare Surcharge is factored in  as the Customs Duty and applies like the MFN Rate 
(as a % of MFN). Total tariff (applied MFN tariff and Social Welfare Surcharge) do not exceed India 's 
binding duty commitments.  
Question 59: Is there any equivalent for domestic products?  
Reply: Social We lfare Surcharge is a Customs Duty, and therefore it has no equivalent for domestic 
products.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.4 Other charges affecting imports  
Page 55 (para. 3.52) 
The National Calamity Contingency Duty was removed in 2017 for all goods, except for some tobacco 
products (ad valorem duties, which increased from 10% -45% in 2019 -20 to 25% -60% in 2020 -2153 
and non -ad valorem  duties, which also increased); and crude petroleum (HS 2709 .00.00) 
(INR 50 per tonne).  
Question 60:  Does India apply the National Calamity Contingency Duty only to imported goods?  
Reply: NCCD applies equally on same goods (only a few items) whether produced domestically or 
imported.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.5 Import prohibitions, restrictions, and licensing  
Page 55 (para. 3.53) 
India continues to impose import prohibitions and restrictions. The DGFT may, through a notification, 
impose restrictions on impo rts (and exports) to: (i) protect human, animal or plant life or health; 
public morality; historical heritage; the environment; and intellectual property rights (IPRs); 
(ii) prevent the use of deceptive practices; the use of prison labour; and the traffic of arms, 
ammunition and implements of war; (iii) and to comply with United Nations Security Council 
resolutions. In addition, some products may only be imported through designated state trading 
enterprises (STEs). These imports (canalized items) can only b e imported via specified 
transportation channels and methods. These include petroleum products, bulk agricultural products 
such as grains and vegetable oils, and some pharmaceutical products. All restricted items and items WT/TPR/M/403/Add.1  
 
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  permitted to be imported by STEs,  except live animals required for R&D, may be imported without 
an authorization by government -recognized R&D units.  
Question 61:  Paragraph 3.53 of the Secretariat Report states that "In addition, some products may 
only be imported through designated state  trading enterprises (STEs). These imports (canalized 
items) can only be imported via specified transportation channels and methods ". The latest India 's 
notification pursuant to Article XVII:4(a) of the GATT 1994 (G/STR/N/16/IND; G/STR/N/17/IND) 
does not c over pulses. However, in January 2020 India introduced the limitation on the number of 
ports of entry for peas stating that all peas shall be imported only through the seaport of Kolkata. 
Could India please clarify the basis for restricting transportation channels and methods for imported 
peas and respective WTO provisions justifying such a restriction?  
Reply:  India has taken these measures in exercise of Article XX (General Exceptions) of the GATT 
1994.   
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.5 Import prohibitions, restrictions, and licensing  
3.1.5.1 Import prohibitions  
Page s 55-57 (Table 3.8 and para. 3.54) 
India applies import prohibitions, mainly on health and safety grounds, and these continue to appl y 
to products such as meat and offal from wild animals, tallow fat, animal rennet, and unprocessed 
ivory (Table 3.8). Since the last Review, India has also applied import prohibitions to shark fins, 
leather from reptiles, and fur skin. Most of these restri ctions apply to goods no matter their origin; 
however, some import prohibitions are country -specific. Imports of milk and milk products from 
China have been prohibited, since 2015, on health grounds.  
Question 62: Could India please provide reasons for main taining the import prohibition on the 
whole heading 8517 (telephone sets)? Moreover, according to the trade statistics, there has been 
import of this HS Code by India for the past several years. Could India please comment on the issue?   
Reply: Vide DGFT n otification 107(RE -2013) / 2009 -2014 dated 16.1.2015, only the imports of 
following items covered under HS 8517 are regulated:  
(i) Import of 'GSM mobile handsets ' (classified under ITC (HS) Code 8517) without International 
Mobile Equipment Identity (IMEI) No., with all zeroes IMEI, duplicate IMEI or fake IMEI is prohibited.  
(ii) Import of 'CDMA mobile phones ' (classified under ITC (HS) Code 8517) without Electronic  Serial 
Number (ESN)/Mobile Equipment Identifier (MEID), with all zeroes as ESN/MEID, duplicate 
ESN/MEID or fake ESN/MEID is prohibited.  
India has also notified the aforesaid measure in its QR notification G/MA/QR/N/IND/2 dated 
21.6.2018 to the WTO, which specifies that the prohibition is applicable only to the items mentioned 
thereunder. The aforesaid DGFT notification is also in the public domain and can be accessed 
at https:// content.dgft.gov.in/Website/not10713_0.pdf .  
Question 63:  Could India please provide reasons for the import prohibition on Red sanders 
(HS Code 4403.99.18)?  
Reply: Currently, quota of 310 MT export is fixed for Red Sanders (Pterocarpus santalinus) from 
Artificially Propagated Source grown largely on private/ revenue land. The quota has been fixed after 
a Non -Detrimental Finding (NDF) study by the CITES Scientific Authority in India, in 2012. Red 
Sanders is listed in Appendix II of CITES and as per the provi sions of CITES (Article IV of the CITES 
Convention Text), trade in the species listed in Appendix II can be done based on an NDF 
assessment.  
Question 64:  It is stated that "imports of milk and milk products from China have been prohibited 
… on health grounds ". What are the reasons for the prohibition of other products from China 
mentioned in Table 3.8?  WT/TPR/M/403/Add.1  
 
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  Reply: These products are "Prohibited" in terms of Principles of restrictions related to protection of 
human, animal or plant life and health.     
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.5 Import prohibitions, restrictions, and licensing  
3.1.5.1 Import prohibitions  
Page 57 (Table 3.9 and para. 3.55) 
Imports of certain goods (48 tariff lines at the HS eight -digit level) are subject to import prohibitions 
depending upon their import price (Table 3.9). These imports are prohibited or restricted when the 
c.i.f. price is lower than the minimum import price (MIP). According to the authorities, MIPs ar e 
imposed to protect the domestic growers/farmers and their livelihood. Line ministries decide which 
products should be subject to MIPs.  
Question 65: There is a number of products listed in Table 3.9 that have "free" under Import policy. 
What is the point  of minimum import prices in these particular cases?  
Reply: Most of the tradable items are freely importable and interventions, if any, have been 
prescribed for only a few products.  Such interventions are made based on various factors including 
cost of pro duction, overall demand -supply situation in the domestic and world market, domestic and 
international prices, etc. These measures are temporary in nature and are reviewed regularly.  
Question 66:  What does India mean by "restricted " in Table 3.9?  
Reply: "Restricted " is a term indicating the import or export policy of an item, which can be imported 
into the country or exported outside, only after obtaining an Authorisation from the offices of the 
Directorate General of Foreign Trade, Government of India.  
Ques tion 67: Paragraph 3.55 of the Secretariat Report describes minimum import prices introduced 
by India. In early 2020 India established MIP requirement for peas according to which peas could 
be imported only if they are priced at 200 Rs. per kilo or higher.  Indian authorities claimed that 
minimum import prices were introduced with the aim "to protect the domestic growers/farmers and 
their livelihood ". Bearing this in mind and taking into account the recent statements made by India 
on Council for Trade in Goo ds could India please clarify how do minimum import price requirements 
comply with the chapeau of Article XX of GATT, in particular that they do not constitute disguised 
restriction on international trade?  
Reply: Import of most of agricultural items is fr ee. Necessary interventions are made based on 
various factors including cost of production, overall demand -supply situation in the domestic and 
world market, domestic and international prices, etc.  
Question 68:  What is the contribution of MIPs to providing protection for domestic 
growers/farmers?  
Reply:  Import of most of agricultural items is free. Necessary interventions are made based on 
various factors including cost of production, overall demand -supply situa tion in the domestic and 
world market, domestic and international prices, etc.  
Question 69: What is the causal link between importing peas at minimum price levels or higher 
and protection of domestic growers/farmers and their livelihood?  
Reply: Import of m ost of agricultural items is free. Necessary interventions are made based on 
various factors including cost of production, overall demand -supply situation in the domestic and 
world market, domestic and international prices, etc.  
Question 70: What is the me thodology for MIP calculation for peas?  WT/TPR/M/403/Add.1  
 
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  Reply: Import of most of agricultural items is free. Necessary interventions are made based on 
various factors including cost of production, overall demand -supply situation in the domestic and 
world market, domestic and international prices, etc.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1. Measures Directly Affecting Imports  
3.1.5 Import prohibitions, restrictions, and licensing  
3.1.5.2 Import licensing and restrictions  
Page 59 (para. 3.60) 
Import licences are also  used to administer quotas. Quotas are distributed on an MFN basis, unless 
there is a memorandum of understanding (MoU) with a trading partner. For instance, during fiscal 
year (FY) 2017 -18, 125,000 MT of pulses were imported from Mozambique under an MoU; this was 
raised to 200,000 MT on 1 June 2020. Under the FTP 2015 -21, quotas were established for several 
pulses (Table 3.10). In 2018, India also imposed a quota of 100,000 MT of peas (including yellow, 
green, dun and kaspa peas) for a period of three mont hs (1 April to 30 June 2018), which was 
extended three times. New quotas were announced in April 2020 for FY 2020 -21. On 28 March 2020, 
quantitative restrictions on imports of peas were announced of up to 150,000 tonnes (for green peas 
and other peas) and 400,000 tonnes (for pigeon peas). Quotas on imports of certain varieties of 
pulses were imposed to protect small and marginal farmers, who were affected by an increase in 
imports, to ensure their food and livelihood security.  
Question 71:  India and Mozambique have signed "Memorandum of understanding on cooperation 
in the field of production and marketing of pigeon peas ". In addition to pigeon peas the Memorandum 
also covers other pulses. Could India please indicate particular tariff lines of pulses that are covered 
by the Memorandum in addition to pigeon peas. Was this Memorandum notified to the WTO? If yes, 
under which provision?  
Reply: The following tariff lines of pulses are covered under the MoU with Mozambique:  
(i) 07139010 - Other dr ied and shelled Leguminous Vegetables, Split  
(ii) 07133190 – Moong [Beans of SPP Vigna Radiata (L.) Wilczek]  
(iii) 07136000 - Tur/Pigeon Peas   
(iv) 0713 9090 - Other of sub heading 071390     
Information about the MoU has been conveyed in India's notifica tion to the WTO's Committee on 
Import Licensing (G/LIC/N/3/IND/18).  
Question 72:  In 2018 India positioned import quotas on pulses, including yellow peas, as temporary 
measures. Since almost three years of application, "temporary " measures are still in force. When 
does India plan to remove these temporary import quotas?  
Reply: The meas ure has been imposed for food and livelihood security of small and marginal farmers 
in India. It has been imposed after due consultations and is being regularly reviewed in the light of 
domestic demand and supply situation.  
Question 73:  Quota for peas intr oduced in March 2020 is subdivided by three sub -quotas: 
75,000 tons for green peas, other types of peas – 75,000 tons, while allowed volume for import of 
yellow peas equals zero. It seems like import of yellow peas is prohibited until the end of 2020 -2021 
fiscal year. Could India confirm that import of yellow peas is prohibited up to the end of March 2021?  
Reply: During the current year [2020 -21(Apr -Oct)], a total quantity of 33,831.58 MTs of yellow 
peas has been imported.  
Question 74:  India claimed that i ts import prohibition and quantitative restrictions on pulses, which 
are inconsistent with Article XI of the GATT and Article 4.2 of the Agreement on Agriculture, could 
be justified under Article XX of the GATT as measures necessary to protect "small and m arginal 
farmers, who were affected by an increase in imports, to ensure their food and livelihood security ". 
How do import prohibition and quantitative restrictions on pulses comply with the chapeau of 
Article  XX of GATT, in particular that they do not con stitute disguised restriction on international 
trade?  WT/TPR/M/403/Add.1  
 
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  Reply: The measure has been imposed for food and livelihood security of small and marginal farmers 
in India. It has been imposed after due consultations and is being regularly reviewed taking into 
consideration domestic demand and supply situation. India has taken these measures in exercise of 
Article XX (General Exceptions) of the GATT 1994.  
Question 75:  Could India please explain in detail how do these import prohibition and quantitative 
restrictions o n pulses help India to protect public morals in accordance with paragraph (a) of 
Article  XX of the GATT?  
Reply: The measure has been imposed for food and livelihood security of small and marginal farmers 
in India. It has been imposed after due consultatio ns and is being regularly reviewed taking into 
consideration domestic demand and supply situation. India has taken these measures in exercise of 
Article XX (General Exceptions) of the GATT 1994.  
Question 76:  In which way import prohibition and quantitative  restrictions on peas importation are 
necessary to protect human life or health in accordance with paragraph (b) of Article XX of the GATT?  
Reply: The measure has been imposed for food and livelihood security of small and marginal farmers 
in India. It has  been imposed after due consultations and is being regularly reviewed taking into 
consideration domestic demand and supply situation.   
Question 77:  Could India also explain what is a causal link between the need to protect public 
morals, human life or hea lth and the need for establishing import prohibitions and quotas on pulses?  
Reply: The measure has been imposed for food and livelihood security of small and marginal farmers 
in India. It has been imposed after due consultations and is being regularly rev iewed taking into 
consideration domestic demand and supply situation.   
Question 78:  Have India considered introduction of less trade restrictive measures to protect public 
morals, human life and health?  
Reply: The measure has been imposed for food and liv elihood security of small and marginal farmers 
in India. It has been imposed after due consultations and is being regularly reviewed taking into 
consideration domestic demand and supply situation.   
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Di rectly Affecting Imports  
3.1.5 Import prohibitions, restrictions, and licensing  
3.1.5.2 Import licensing and restrictions  
Page 60 (Table 3.10 ) 
Question 79: Could India please further elaborate on the purpose for an import quota on marble 
and similar stones?  
Reply: Imports of marble blocks under HS code 2515 is permitted freely provided CIF value is 
USD 200 or above  per MT; while import of marble slabs under HS codes 2515 is permitted freely 
provided CIF value is USD 40 or above per square metre (for maximum thickness of slabs of 20mm).  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Import s 
3.1.5 Import prohibitions, restrictions, and licensing  
3.1.5.2 Import licensing and restrictions  
Page 60 (para. 3.63) 
Certain products may only be imported through specific ports. These are: natural rubber (HS4001) 
(Chennai and Nhava Sheva (Jawaharlal Ne hru Port); palm oil (HS1511) (all ports, except ports in 
Kerala); new vehicles (16 entry points); and used/second -hand vehicles (Mumbai Port).  WT/TPR/M/403/Add.1  
 
- 284 - 
 
  Question 80:  In January 2020 India introduced the requirement to import peas only through the 
port of Kolkata (N otification No. 38/2015 -2020 dated 01.01.2020). Could India please clarify the 
rationale for such a restriction? Why should peas be imported only through the port of Kolkata? How 
does this restriction comply with WTO provisions?  
Reply: Decisions regarding regulating any item of import are always taken in consultation with the 
line ministries/ departments and it is subject to revision/ withdrawal/ amendment. Reasons include 
a check on quality issues and standards, and to ascertain import statistics . However, such measures 
are taken for very few commodities are constantly reviewed.   
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.6 Anti -dumping, countervailing, and safeguard measures  
3.1.6.1 Anti -dumping measures  
Page 60 (para. 3.66) 
Question 81:  With reference to India's main legislation regarding anti -dumping measures the 
Customs Tariff (Identification, Assessment and Collection of Anti -dumping Duty on Dumped Articles 
and for Determination of Injury) Rules, 1995  (as amended) (hereinafter - Customs Tariff): Could 
India please be more specific about possibility of initiation the anti -dumping investigation without 
sufficient evidence regarding injury and causal link between dumped imports and the alleged injury 
in accordance with rule 5, sub -rules (2) and (3) of the Customs Tariff? In particular, could India 
please illustrate in which situations and cases the requirement that the application includes sufficient 
evidence of injury and causal link is not applicable for  the purpose of initiation an investigation?  
Reply: Directorate General of Trade Remedies (DGTR) of India initiates anti -dumping investigations 
on the basis of fully documented petitions filed either by, or on behalf of, the concerned domestic 
industry. Fo r an anti -dumping investigation to be initiated, the petitioner must furnish sufficient 
evidence regarding dumping of the goods in question, injury to the domestic industry and a causal 
link between the dumped imports and alleged injury to the domestic ind ustry. This is done in 
accordance with WTO provisions  and the increase in anti -dumping investigations is only India 's 
reaction to mitigate the increase in incidence of unfair trade practices.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Directly Affecting Production and Trade  
3.3.3 Sanitary and phytosanitary requirements  
Page 88 (para. 3.175 ) 
Imports of primary agricultural products require a sanitary -phytosanitary import permit, following 
the requirements established by PQ Order 2003. Under the Order, plants and plant materials may 
be imported after an Import (Pest) Risk Analysis (PRA) is conducted, based on scientific principles 
(the risk analysis is based on, inter alia, the type of pest known to be associated with the particular 
product in the  exporting country; the organisms that already exist in India; and the potential impact 
of such organisms on India's international trade); thereafter, products are categorized under 
Schedules IV (prohibited), V (imported on the recommendation of an identif ied institution with a 
phytosanitary certificate), VI (import permit and phytosanitary certificate are mandatory), VII (may 
be imported without an import permit/less risk) and VIII (weeds that require quarantine).  
Question 82:  According to the information  mentioned in paragraph 3.175 of the Secretariat Report 
plants and plant materials may be imported after Import (Pest) Risk Analysis under the PQ Order 
2003. This Order provides for use of Methyl bromide to the disinfection treatment of certain plant 
produ cts, including wheat (point 663 of Schedule -V). Could India please clarify whether the scientific 
analysis confirming the efficacy and safety of phosphines application as well as the comparative 
effectiveness analysis of the fumigation conducted with methy l bromide and phosphine allows India 
to apply such phosphine treatment of grain as an alternative measure? Which steps are to be 
undertaken in order to introduce the amendments to this Order?  
Reply: Plants and plant material are notified in Plant Quarantin e Order (Import Regulations into 
India), 2003 under different schedules based on the Pest Risk Analysis and phytosanitary treatment WT/TPR/M/403/Add.1  
 
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  required to mitigate the risk associated with the commodity.  Phytosanitary treatments are identified 
based on bio -efficacy d ata provided by exporting country on the targeted quarantine pests of concern 
to India. The exporting country has to provide the scientific information and protocol on the 
bio-efficacy of the Aluminium phosphide / phosphine to assess its effectiveness on t he life stages of 
the quarantine pests of concern to India. If the phosphine protocol and information on its 
effectiveness provided by exporting country is satisfactory, necessary amendment to include 
Phosphine fumigation as an alternate option in the PQ O rder, 2003 to facilitate import of grains from 
that country, is made.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.3 Sanitary and phytosanitary requirements  
Page 90 (para. 3.192 ) 
The manufacture, import, research and release of GMOs, and of GMO products, are regulated by the 
Rules for Manufacture, Use, Import, Export and Storage of Hazardous Micro -Organisms, Genetically 
Engineered Organisms or Cells, 1989, under the Environment (Protection) Act, 1986. In o rder to 
implement the Rules, six competent authorities were created under the Ministry of Environment, 
Forest and Climate Change (MoEF&CC) (Table 3.29)  
Question 83: Could India please provide the list of products (with HS codes) that will be subjected 
to "Order related to requirement of non -GM cum GM -free certificate accompanied with imported food 
consignment " that comes into force January 1, 2021?  
Reply: The order regarding requirement of Non -GM cum GM free certificate is applicable only for 
the food crops  enlisted in Annexure 1 of the FSSAI order dated 21.08.2020. These 24 food crops 
imported under the relevant ITC -HS codes shall be accompanied with Non -GM cum GM free 
certificate issued by Competent Authority of exporting country. Further, it may be noted that 
implementation of this order has been extended to 1 March 2021.  
Question 84: Do similar requirements apply to like products of Indian origin. If so, could India 
please provide the legal act that fixes this provision?  
Reply: The requirements under Rule s for the Manufacture, Use/Import/Export and Storage of 
Hazardous Micro Organisms/ Genetically Engineered Organisms or Cells 1989 apply to Indian 
manufactures as well.  
Question 85: Will India recognize GMO -free certificates issued by the relevant empowered  body 
from another WTO Members? If so, could India provide the requirements to such certificates and 
bodies. If not, what are the main reason for it?  
Reply: The FSSAI requirement of GM free certificates for imported food products mentioned in 
Annexure I of  the regulation shall be accompanied with the certificate as per format of Annexure II 
issued by Competent National Authority of the exporting country.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.4 Competition policy and price controls  
3.3.4.1 Competition policy  
Page 91  
Question 86:  Which forms of anticompetitive practices, despite of anticompetitive agreements, are 
established in the Competition Act (2002) of India?  
Reply: It is understood that the word 'despit e' in the question is to be read as 'besides '. The 
Competition Act captures within its ambit under section 4 of the Indian Competition Act, 2002, the 
abuse of dominant position by enterprises and also regulates Combinations under section 6 Act, 
which cause  or are likely to cause appreciable adverse effect on competition, in addition to covering 
anti-competitive agreements within its purview.  WT/TPR/M/403/Add.1  
 
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  Question 87: Which sanctions could be imposed for violation of the articles of the Competition Act 
(2002) of India?  
Reply: CCI can issue the following remedies, under the provisions of Section 27 of the Competition 
Act, 2002 for anti -competitive agreements: cease and desist order, imposition of monetary penalty, 
modification of agreements and any other order, as deemed appropriate.  
Question 88: Does the Competition Commission of India have the empowerment to review 
economic concentration transactions? Which are the thresholds for obligatory approval of the 
transaction by antimonopoly authority?  
Reply: Section 6(1)  of the Competition Act, 2002 (The Act), prescribes that "No person or enterprise 
shall enter into a combination which causes or is likely to cause an appreciable adverse effect on 
competition within the relevant market in India and such a combination shal l be void. " Parties 
proposing to enter into a combination shall give notice of such combination in the prescribed form 
along with the requisite fee to the Commission under Section 6(2) of the Act to enable the 
Commission to assess the proposal from the per spective of competition analysis. Under Section 
20(1) of the Act, the Commission may, upon its own knowledge or on receiving information relating 
to a combination, inquire into whether such combination has caused or is likely to cause an 
appreciable advers e effect on competition in India (suo motu cases). Section 5 of the Act defines 
combination to mean acquisition of one or more enterprises by one or more persons or merger or 
amalgamation of enterprises, whose value of asset or turnover meet the threshold specified under 
the Act. The thresholds for notification to the CCI are mentioned under Annexure 3.  
 
However, small target exemption is available for certain acquisitions pursuant to the notifications 
issued by the Government of India. In exercise of the powers conferred by clause (a) of Section 54 
of the Act, the Central Government has exempted enterprises whose control, shares, voting rights 
or assets are being acquired has either assets of the value of not more than INR 3.5 billion in India 
or turnover of not more than INR 10 billion in India from the provisions of Section 5 of the 
Competition Act, 2002 for a period of five years from 4 March 2016.  
Question 89: Does the Competition Act (2002) of India has a provision on possibility of its 
extraterritoria l application?  
Reply: Yes, Section 32 of the Indian Competition Act, 2002 provides for extra -territorial operation 
of competition law in respect of the acts taking place outside India but having an effect on 
competition in India.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
3.3.7.1 National IPR Policy 2016  
Page 105 (para. 3.246 ) 
In 2016, India issued its first National IPR Policy (NIPR Policy) to support the creation of a 
know ledge -driven economy to promote economic and social development. The Policy aims at: i) 
WT/TPR/M/403/Add.1  
 
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  raising general awareness on IPR; ii) promoting R&D for IP generation; iii) strengthening the IPR 
legal framework; iv) improving IPR administration; v) generating value  through IPR 
commercialization; vi) strengthening IPR enforcement; and vii) enhancing IPR -related capacity -
building. The Department for Promotion of Industry and Internal Trade (DPIIT), through the Cell for 
IPR Promotion and Management (CIPAM), created in 2016, is in charge of implementing the NIPR 
Policy (Table 3.42).  
Question 90:  Please provide information about the approaches used for the development of the 
National IPR Policy. In particular, which government authorities were involved in the development  
of the document and is there any preliminary research conducted for this purpose?  
Reply: The National IPR Policy is a vision document that encompasses and brings to a single platform 
all IPRs. It views IPRs holistically, considering all inter -linkages and  thus aims to create and exploit 
synergies between all forms of intellectual property (IP), concerned statutes and agencies. It sets in 
place an institutional mechanism for implementation, monitoring and review. It aims to incorporate 
and adapt global best  practices to the Indian scenario. An IPR think tank with a mandate to draft 
National IPR policy was set -up which prepared a draft IPR policy seeking comments from the 
stakeholders, including 31 departments of the Government of India. The Government depart ments 
that were consulted during the process included departments dealing with industries, with emphasis 
on IP sensitive industries, education, departments dealing with matters related to customs and 
border protection, environment, animal husbandry, cultur e, legal affairs etc. Based on the comments 
received from various stakeholders, draft policy was finalized and approved by the Government.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
3.3.7.3 Main features of the IPR regime over the review period  
Page 108 (para. 3.257 ) 
India allows parallel imports of trade -marked and patented works, as it recognizes the principle of 
international exhaustion of rights . Parallel imports of industrial designs and copyright are not 
allowed.  
Question 91: Please specify whether the international exhaustion of rights includes any restrictions 
on the parallel import of goods, for example if the imported goods are of lower qua lity? 
Reply: Section 107A of the Patents Act, 1970 and Section 30(3) of Trade Marks Act, 1999 recognize 
the principle of international exhaustion and parallel imports. Further, sub -section 4 of Section 30 
of the Trade Marks Act provides that sub -section 3 shall not apply when the condition of goods is 
changed or impaired after they have been put on the market. Hence, the registered proprietor can 
take appropriate action against the alleged party involved in importation of changed or impaired 
goods.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
3.3.7.3 Main features of the IPR regime over the review period  
Page 109 (para. 3.260 )  
The Trade Marks Rules, 2017, introduced modalities to d etermine well -known marks. The Trademark 
Registry has the authority to determine if marks are well -known. Previously, only the Indian courts 
could determine if a mark was well -known; therefore, only marks recognized by a court decision, as 
well-known marks , could be registered.286 In 2017, expedited processes were extended to the 
entire trademark registration process; previously, expedited processes were limited to examination. 
In addition, since 2017, a sound mark may be filed using digital audio format (M P3) and digital 
graphic representation (digital sheet music).287 Since the last Review, the average time for the 
registration of a trademark has been reduced from 14 months to 1 month.  WT/TPR/M/403/Add.1  
 
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  Question 92:  This item concerns some updates on trademark formats, spec ifically pertaining to 
sound mark applications which may be filed using digital audio format (MP3) and digital graphic 
representation. Is it possible at this point to file trademark applications using 3D models or are there 
any plans to implement this?  
Reply: Under Indian law, anything which can be represented graphically may be trademarked such 
as Word Marks, Label / Device, Sound, Colour, Three -Dimensional Mark subject to production of the 
same as per Rule 26 of Trade Mark Rules 2017.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
3.3.7.3 Main features of the IPR regime over the review period  
Pages 109 -110 (para. 3.261 )  
Over the review period, e -filing and online search  facilities were developed, to streamline the 
registration of designs; as a result, the average time for registration was reduced from eight months 
to one. Registration of copyright was also computerized, and it is possible to check the status of the 
application in real -time; at present, registration of copyright takes two months.  
Question 93: Please specify whether the IP office uses any e -service solutions that apply artificial 
intelligence.  
Reply: Indian Patent office uses artificial intelligence solutio n provided by WIPO for IPC classification 
of patent applications.   Artificial intelligence is also used in examination of applications, processing 
of registration and renewal request.  
4 TRADE POLICIES BY SECTOR  
4.4 Services  
4.4.2 Telecommunications  
Page 142 (para. 4.109 ) 
To expand ICT penetration, in 2015, India launched the Digital India Initiative; as a result, all 
government services are available online, and connectivity and digital literacy have improved. To 
this end, common s ervice centres (CSCs) were established in rural and remote areas to connect the 
unconnected to public and private services, such as banks, insurance companies, and health and 
education centres. CSCs are run by village -level entrepreneurs (VLEs); tariffs ch arged by the VLEs 
to use computers and access the Internet are regulated to ensure affordability. It is also expected 
that the Digital India Initiative will help increase e -commerce. In addition, public and private training 
initiatives, to promote the adop tion of digital technology, were implemented to encourage MSMEs to 
diversify their business model through the use of Business -to-Business (B2B) and Business -to-
Consumer (B2C) services. Despite these efforts, according to the business community, issues such  
as lack of digital literacy, poor connectivity (including high equipment and connection costs), and 
cyber security are a challenge to digitalization. A 2017 study revealed that 68% of MSMEs had no 
access to the Internet; 30% were using it for online marke ting and communication; and only 2% 
were engaged in e -commerce.  
Question 94: According to the business community, issues such as lack of digital literacy, poor 
connectivity (including high equipment and connection costs), and cyber security are a challeng e to 
digitali zation. A 2017 study revealed that 68% of MSMEs had no access to the Internet; 30% were 
using it for online marketing and communication; and only 2% were engaged in e -commerce. Has 
the situation now improved?  
Reply: The Government also provide s for an online application system for implementation of 
schemes through the MSME portal. Additionally, MSMEs are provided e -Marketing support through 
the GeM Portal. Since its inception, 410,487 micro and small enterprises have been registered with 
GeM. M oreover, the Public Procurement Policy monitoring portal, MSME Sambandh, provides 
information on products and services procured by Central Govt./PSUs/Autonomous Bodies from 
MSEs. Further, delayed payment monitoring system is being addressed through MSME Sa madhaan WT/TPR/M/403/Add.1  
 
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  portal. MSMEs have benefitted through these initiatives leading to their integration into the digital 
eco-system.  
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  INDONESIA  
QUESTIONS FROM SECRETARIAT REPORT (WT/TPR/S/403)  
SUMMARY  
Page 10 ( para.  20) 
In general, the programmes maintained to promote exports apply to all sectors. However, some are 
sector -specific, for instance those pertaining to agriculture. Most of these programmes did not 
undergo substantial changes since 2015; they provide for fiscal and financial incentives a nd 
marketing assistance. However, in 2015, the Export from India Scheme (EIS) was introduced. The 
EIS encompasses two schemes: the Merchandise Exports from India Scheme (MEIS), which replaced 
five schemes; and the Services Exports from India Scheme (SEIS).  The number of products covered 
by the MEIS, and the budget allocated to it, increased during the review period. The MEIS is 
scheduled to end on 1 January 2021; it will be replaced by a new scheme to reimburse exporters for 
taxes, duties and levies which a re not exempt or refunded under any other existing scheme.  
Question 1:  Indonesia would like to request the Indian government to provide the details of those 
incentives and other specific sectors covered.  
Reply:  The details of MEIS and SEIS schemes can be found in India 's Foreign Trade Policy (FTP) 
2015-20. The MEIS has been discontinued for all shipments with effect from 01.01.2021. No 
alternate scheme has been notified yet. The SEIS scheme is available to servi ce providers of notified 
services  (Appendix 3D of the FTP). T he rates and eligible categories for the Financial Year 2019 -20 
are however not yet notified . 
SUMMARY  
Page 10 ( para.  20) 
In general, the programmes maintained to promote exports apply to all sectors. However, some are 
sector -specific, for instance those pertaining to agriculture. Most of these programmes did not 
undergo substantial changes since 2015; they provide for fiscal and financial incentives and 
marketing assistance. However, in 2015, the Export from India Scheme (EIS) was introduced. The 
EIS encompasses two schemes: the Merchandise Exports from India Scheme (MEIS), which replaced 
five schemes; and the Services Exports from India Scheme (SEIS). The number of products covered 
by the MEIS , and the budget allocated to it, increased during the review period. The MEIS is 
scheduled to end on 1 January 2021; it will be replaced by a new scheme to reimburse exporters for 
taxes, duties and levies which are not exempt or refunded under any other e xisting scheme.  
Question 2:  Please provide more details on the MEIS programme, especially on the new products 
covered and the increasing budget allocated to it.  
Reply:  MEIS is a remission of embedded prior -stage cumulative indirect taxes incurred in produc tion 
of export products in accordance with footnote 1 read with Annex I of the SCM Agreement. The MEIS 
has been discontinued for all shipments with effect from 01.01.2021.  
SUMMARY  
Page 10 ( para.  20) 
In general, the programmes maintained to promote exports apply to all sectors. However, some are 
sector -specific, for instance those pertaining to agriculture. Most of these programmes did not 
undergo substantial changes since 2015; they provide for fiscal and financial incentives and 
marketing assistanc e. However, in 2015, the Export from India Scheme (EIS) was introduced. The 
EIS encompasses two schemes: The Merchandise Exports from India Scheme (MEIS), which replaced 
five schemes; and the Services Exports from India Scheme (SEIS). The number of product s covered 
by the MEIS, and the budget allocated to it, increased during the review period. The MEIS is 
scheduled to end on 1 January 2021; it will be replaced by a new scheme to reimburse exporters for 
taxes, duties and levies which are not exempt or refun ded under any other existing scheme.  WT/TPR/M/403/Add.1  
 
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  Question 3:  From 2015 until now, please provide in detail the export impact given from the India 
Scheme (EIS) to the industry.  
Reply:  No impact assessment study of the exports under the MEIS/SEIS has been undertaken by 
the Government of India.  
Question 4:  The Secretariat notes that the MEIS will be replaced by the Remission of Duties or 
Taxes on Export Products (RoDTEP). Please explain the reason why the Scheme replaced and the 
objectives of the RoDTEP.  
Reply: The Mercha ndise Exports from India Scheme, in operation since 01.04.2015 under provisions 
of the Foreign Trade Policy 2015 -20 has been discontinued for all shipments w.e.f. 01.01.2021 for 
better targeted outcomes. RoDTEP s cheme will endeavour to operationalize the globally accepted 
principle that taxes and duties should not be exported and taxes and levies borne on the exported 
products should be either exempted or remitted to the exporters in accordance with Footnote 1 rea d 
with Annex I of the SCM Agreement . 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.1.3 Tariffs  
Page 48 ( para.  3.26)  
The simple average applied MFN tariff increased from 13.0% in 2014/15 to 14.3% in 2020/21, and 
to 15.4% if AVEs are considered (Table 3.3). (…)  
Question 5:  The Secretariat also notes that on the last Review, the average tariff has also increased. 
Can India explain its policy objective for the increase in import tariff rates?  
Reply:  Import duties are pr escribed keeping in view the overall economic and other policy objectives 
which include enhancing domestic value addition, creating level playing field, ensuring availability of 
raw materials at competitive prices, securing economic interests of the countr y and ensuring supply 
of essential items at affordable prices. Moreover, India 's applied rates are within its bound tariff 
commitments at the WTO.  
Question 6:  Does India have any plans to decrease applied MFN tariffs for both agricultural and 
non-agricultu ral products in the future? If not, please explain why?  
Reply:  Tariffs for agricultural and non -agricultural products are generally reviewed periodically in 
consultation with all stakeholders and any changes made are in line with the policy objectives. Hen ce 
it will be difficult to anticipate future tariff changes in advance. These changes, whenever made, are 
immediately widely disseminated and are made publicly available at: https://www.cbic.gov.in/ .  
3.1.5 Import p rohibitions, restrictions, and licensing  
Page s 57-58 (para.  3.55 and Table 3.9)  
Imports of certain goods (48 tariff lines at the HS eight -digit level) are subject to import prohibitions 
depending upon their import price (Table 3.9). These imports are prohibited or restricted when the 
c.i.f. price is lower than the minimum import price (MIP). According to the authorities, MIPs are 
imposed to protect the domestic growers/farmers and their livelihood. Line ministries decide which 
products should be subjec t to MIPs.  
Question 7:  Could the Government of India explain in greater detail on how and who determines 
the minimum import prices (MIPs)?  
Reply:  Import of most of agricultural items is free. Necessary interventions are made based on 
various factors includ ing cost of production, overall demand -supply situation in the domestic and 
world market, domestic and international prices, etc.  
Question 8:  How and when the related ministries decide which products subject to MIPs?  WT/TPR/M/403/Add.1  
 
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  Reply:  Such interventions are made for only a few products based on various factors viz. cost of 
production, overall demand -supply situation in domestic and world market, domestic and 
international prices,  etc. Moreover, these measures are temporary in nature and are reviewed 
regularly.  
Page 48  (para.  3.26)  
The simple average applied MFN tariff increased from 13.0% in 2014/15 to 14.3% in 2020/21, and 
to 15.4% if AVEs are considered (Table 3.3). (…)  
Page s 57-58 (para.  3.55 and Table 3.9)  
Imports of certain goods (48 tariff lines at the HS eight-digit level) are subject to import prohibitions 
depending upon their import price (Table 3.9). These imports are prohibited or restricted when the 
c.i.f. price is lower than the minimum import price (MIP). According to the authorities, MIPs are 
impos ed to protect the domestic growers/farmers and their livelihood. Line ministries decide which 
products should be subject to MIPs.  
Question 9 : With respect to the aforesaid import prohibitions and restrictions, please explain how 
the measures help achieve i ts objectives?  
Reply: Import of most of items is free. Necessary interventions are made based on various factors 
including overall demand -supply situation in the domestic and world market, domestic and 
international prices, etc.  
Question 10 : Since Table 3 .9 as of the end -December 2019, please confirm that there are no other 
products subject to MIPs except stated on the table? If not, please update.  
Reply:  All the measures are available at https://www.dgft.gov.in/CP/?opt=notification .  
Question 11:  Could India please explain its positions on the WTO consistency of such measures, 
particularly in terms of GATT Art. XI and the Import Li censing Agreement?  
Reply:  Import of most of the items is free. Interventions are required based on various factors 
including cost of production, overall demand -supply situation in the domestic and world market, 
domestic and international prices, etc. These  measures are temporary in nature and are reviewed 
regularly.  
Question 12 : Has India notified those measures to the Committee? If not, why?   
Reply:  These are temporary measures which are applied on very few products and are constantly 
reviewed.  
Question 13 : Are the measures available in English and accessible online? The URL source stated 
in the Secretariat Report seems to be an error.  
Reply:  All the  measures are available in English at https://www.dgft.gov.in/CP/?opt=notification . 
Page 59 ( para.  3.56)  
To facilitate the importation of restricted items, an import licensing system is in place. In 2019/20 
there were 440 tariff lines (3.7% of all tariff lines) subject to import licensing. All importers holding 
a valid IEC may apply for a licence. Import lice nces are issued, on an MFN basis, by the DGFT. The 
practice of routing import licensing applications through the sponsoring authorities was stopped. 
Applications are considered by the Exim Facilitation Committee, a single administrative organ, 
constituted for this purpose. Import licences are valid for 18 months, renewable for 6 months on 
merit. Fees are calculated based on the c.i.f. value of imports, one per thousand of the c.i.f. value, 
with a minimum of INR 500 and a maximum of INR 100,000. Import licen ces are issued for a specific 
port as specified by the applicant. If the import policy specifies a port of entry for a particular product, 
then the licence will indicate it.   WT/TPR/M/403/Add.1  
 
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  Question 14: Please explain if all measures/regulations/standards related to Tra de Notice 
No. 2/2020 -21 labelling have been notified to the WTO, prior to entry into force.  
Reply: India is in process to notify this  measure to the WTO.  
Question 15: What was the reasoning of such restriction? Why is it only designated to refined palm 
oil products?  
Reply:  The measure on refined palm oil is to ensure quality standards and prevent violation of rules 
of origin.  
Question 16:  Could you please provide any scientific evidence or research which becomes the basis 
of this regulation?  
Reply:  The measure on refined palm oil is to ensure quality standards and prevent violation of rules 
of origin.  
Page 59 ( paras. 3.57 and 3.58)  
3.57. The DGFT may refuse to grant an import licence, inter alia , if the applicant has contravened 
any law; if India decides to import through a STE; or if the applicant is not eligible in accordance 
with any provisions of the FTP. In addition, import licences of specified goods, services or technology 
may be suspended or cancelled without giving prior notice to th e licence holder. The importer 
(exporter) may contest the decision, through the DGFT's grievance redressal mechanism, within 
six months, when it would be reassessed.  
3.58. Some licences are subject to an actual -user condition, which means that the imported  product 
cannot be sold in the domestic market, and it must be used for a specific reason. A list of items that 
are granted licences with actual -user conditions does not exist; these conditions apply on a case -by-
case basis. The Secretariat cannot provide more details regarding these changes because, as 
indicated by the authorities, for more details on the list of products, whose import conditions have 
changed, it is necessary to search by product, on the DGFT website.  
Question 17: Please explain when and i n what conditions the Government of India decides to import 
through a STE?  
Reply:  A very small number of items are imported through STEs. These are largely for fertilizers, 
fuel, cereals etc which are essential for domestic food security and strategic requ irements. Any good, 
import or export of which is governed through exclusive or special privilege granted to State Trading 
Enterprise (STE), may be imported or exported by the STE concerned as per conditions specified in 
ITC (HS).  
Page 59 ( paras. 3.57 and 3.58)  
3.57.  The DGFT may refuse to grant an import licence, inter alia, if the applicant has contravened 
any law; if India decides to import through a STE; or if the applicant is not eligible in accordance 
with any provisions of the FTP. In addition, i mport licences of specified goods, services or technology 
may be suspended or cancelled without giving prior notice to the licence holder. The importer 
(exporter) may contest the decision, through the DGFT's grievance redressal mechanism, within six 
months , when it would be reassessed.  
3.58.   Some licences are subject to an actual -user condition, which means that the imported product 
cannot be sold in the domestic market, and it must be used for a specific reason. A list of items that 
are granted licences w ith actual -user conditions does not exist; these conditions apply on a case -
by-case basis. The Secretariat cannot provide more details regarding these changes because, as 
indicated by the authorities, for more details on the list of products, whose import conditions have 
changed, it is necessary to search by product, on the DGFT website.  
Question 18:  What are the specific products that the import licen ces can be suspended and 
cancelled by the Government of India?  WT/TPR/M/403/Add.1  
 
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  Reply:  The Foreign Trade (Development & Regu lation) Act, 1992 as amended provides that no 
export or import shall be made by any person except in accordance with the provisions of this Act, 
the rules and orders made thereunder and the Foreign Trade Policy for the time being in force. 
Wherever the imp orter fails to comply with the stipulations, there is a contravention of the condition 
imposed on the licen ce, and the licen ce is liable for suspension or cancellation under Section 9 of 
the Foreign Trade (Development & Regulation) Act, 1992, after providi ng a reasonable opportunity 
of being heard and passing a written cancellation or suspension order in terms of the FT(DR) Act 
and processes thereunder. These documents are available in the public domain and can be accessed 
at https://www.dgft.gov.in/CP/ . Import licensing measures taken by India are consistent with the 
WTO rules under the GATT and the Agreement on Import Licensing Procedures.  
Question 19:  If the import licen ces suspended or cancelled by the authorit y without any 
notification, how can the importers know this situation and contest the decision?  
Reply:  Please refer to reply to Q. No. 18  
Question 20:  Indonesia requests the explanation regarding this matter based on the Agreement of 
Import Licensing manne r. 
Reply:  Please refer to reply to Q. No. 18  
Question 21:  Please explain in detail the meaning of "A list of items that are granted licences with 
actual -user conditions does not exist; these conditions apply on a case -by-case basis. " 
Reply:  In general, actual -user condition applies in all cases of the authorization for the restricted 
items. Details of products requiring import authorization and subjected to actual user condition may 
be found from the Import, Export and SCOMET Policy availabl e at 
https://www.dgft.gov.in/CP/?opt=itchs -import -export .   
3.2.4 Export prohibitions, restrictions, and licensing  
Page 72 ( para.  3.109)  
(…) Products that are restricted are usually subjec t to export licences, issued by the DGFT but, in 
certain instances, in addition to the licence, other requirements may apply. Regarding the prohibited 
items, some of them are prohibited with exceptions. In these cases, for the same tariff line, there 
could  be two or three different policies: prohibited and free; prohibited and restricted; or prohibited, 
restricted and free. (…)  
Question 22:  Please explain in detail the other requirements might be applied in certain instance.  
Reply:  The export policy clearly  specifies the description of items along with the Tariff line to which 
that policy is applicable. Within the same tariff line, the export policy specified is applicable only to 
the item described in the policy. All other goods, not specified in the export  policy, remain free for 
export. There may be two different policies for same tariff lines (restricted or prohibited). In such 
cases, the policy clearly specifies each of the items within the same tariff line, subject to different 
policies. All such change s in the export policy are immediately made available in the public domain 
and can be accessed at: www.dgft.gov.in .  
Question 23:  Please cite examples on how the other requirements implemented.  
Reply:  Please refer to the response to Q. No. 22  
Question 24:  Please explain the differences between those three policies (prohibited and free; 
prohibited and restricted; or prohibited, restricted and free).  
Reply:  Please refer to the response to Q. No. 22  WT/TPR/M/403/Add.1  
 
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  Page 73 ( para.  3.110)  
Export restrictions and prohibitions are notified on an annual basis; they are usually in place for a 
specific period. However, as with other trade policy instruments, during this period, the DGFT, 
through a notification, may change the policy to me et specific policy objectives (e.g. self -sufficiency 
or containment of domestic prices). India continues to use trade policy to meet non -trade policy 
objectives, changing policies constantly, thus diminishing the predictability of the trade policy 
regime. In addition, the use of export restrictions and prohibitions seems to be in contradiction with 
India's main trade policy goal, which is to increase its share of global exports from 2.0% in 2015 to 
3.5% by 2020 (Section 2.2.2).  
Question 25:  Indonesia would like to request India to provide what exactly background and 
objectives of the use of export restrictions and prohibitions.  
Reply:  The objectives of the use of export restrictions and prohibitions  can be found in para. 2.07 
of the FTP 2015 -20 which can be accessed at the website of India 's DGFT ( www.dgft.gov.in ). 
Question 26: Can India provide the rational of export prohibition in line with WTO rules?  
Reply:  Para. 2.07 of FTP is in compliance with WTO Rul es including Articles such as Article XX, 
Article XXI etc., of  the GATT 1994.  
Page 83 ( para.  3.157)  
In 2015, the Policy of Reservation for exclusive manufacture in the Small -Scale Industries (SSI) 
(now micro and small enterprises (MSE)) sector was eliminated. As a result, the remaining 20 items 
reserved for exclusive manufacture in the MSE sector were de -reserved.148 Therefore, currently, 
there are no items reserved for exclusive manufacture in the MSE sector. However, India implements 
a number of s chemes related to finance, infrastructure, technology upgrade and marketing, to 
promote the MSE sector.  
Question 27: What incentives are given by the Indian Government to the MSE sector during 
COVID -19 pandemic? Is there any specific mechanism in order to receive the incentives? How is the 
result?  
Reply: During COVID -19 pandemic, Government of India announced a special economic and 
comprehensive package of Rs.20 Lakh crore for all the sections of the society including Industries 
and MSMEs. Details of some o f the other measures are given at https://msme.gov.in/initiatives -
ministry -msme -covid-19-relief.  
Page 84 ( para.  3.161)  
(…) In March 2018 (latest data available), there were 19,2 94 Indian standards, 27.3% of which were 
harmonized with international standards. India has a free online catalogue, but standards are not 
free of charge.  
Question 28:  Please update the number of Indian standard and the percentage of standards which 
harmonized with the international standards.  
Reply:  In accordance with the Code of Good Practice of WTO -TBT Agreement and as a policy, BIS 
technical committees try to align the Indian Standards with the International Standards of 
International Standardization Organizations, that  is, ISO and IEC, where available and to the extent 
possible keeping in consideration the specific agro climatic / environmental conditions and 
techno logical development of the country. Considering that there are 7815 existing Indian Standards 
for which corresponding ISO or IEC standards exists, about 83 % of Indian Standards (i.e. about 
6,500) have been harmonized as on  December 2020.  
Question 29:  Indon esia notes there are 72.7% standards were not harmonized with international 
standards. If so, please explain why and are all those standards mandatory for imported products?  WT/TPR/M/403/Add.1  
 
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  Reply: Considering that there are 7815 existing Indian Standards for which corresp onding ISO or 
IEC standards exists, about 83 % of Indian Standards (i.e. about 6 ,500) have been harmonized as 
on December 2020. Standards are voluntary in nature.  
Question 30 : Indonesia also notes that in the Bureau of Indian Standard website there are 276  new 
standards and 485 revised standards. Has India notified these standards to the Committee?  
Reply:  The Indian standards formulated by BIS are essentially voluntary in nature.  
PART III: OTHER QUESTIONS  
Question 31: Regarding with fintech industry, what measures have been taken by the Government 
in order to ensure fair competition between fintech industry and conventional financial industry, and 
at the same time, protect the consumers?  
Reply: The Government has taken numerous steps for the development of FinTech industry in India. 
A Steering Committee was constituted in 2018  to consider issues relating to development of the 
Indian FinTech industry. The Report of the Steering Committee recommends ways to ensure a level 
playing field between Fintech and traditional financial services companies. It suggests institutional 
regulatory upgrades enabling Fintech innovations including a robust consumer protection framework. 
An Inter -Ministerial Steering Committee has been consti tuted to implement these recommendations. 
The Reserve Bank of India (RBI) has issued guidelines on Peer -to-Peer Lending and FinTech Credit 
(App-based Lending) helping 'digital lenders ' provide consumers with a simpler, less –paper 
borrowing experience while leveraging alternate data as a credit surrogate to provide credit to 
non-traditional borrowers. The guidelines issued for Account Aggregators are expected to facilitate 
a consent -based open banking architecture and provide further fillip to the Indian FinTech 
ecosystem. Further, regulatory measures are in place for Invoice based lending (TReDS), mobile 
wallets, payment banks, etc. to ensure an orderly growth of the FinTech sector. In o rder to foster 
innovation, the RBI has announced 'Enabling Framework for Regulatory Sandbox (RS) ' which is 
expected to give further boost to the FinTech ecosystem. Moreover, the RBI has put in place a 
prudent regulatory framework to (i) facilitate wider pa rticipation to include non -banks, (ii) increase 
interoperability among different payment systems (iii) security measures such as Additional Factor 
Authentication / 2 -Factor Authentication (iv) positive confirmation to the sender on completion of 
fund trans fer (v) tokenization and (vi) replacement of all magnetic stripe only cards. Further, a 
customer protection framework with limited liability for customers and Digital Ombudsman Scheme 
are also in place.  
Question 32: The Secretariat notes that over the revi ew period, there are no major and substantial 
changes on the trade and trade -related regulations. Could the Government of India provide 
information on the government efforts in terms of Good Regulatory Practices?  
Reply:  Procedure for formulation of Indian Standards is aligned with the WTO -TBT Code of Good 
Practice.  
PART III: OTHER QUESTIONS  
Question 33 : The Government of India issued new measure namely Customs Administration of 
Rules of Origin under Trade Agreements Rules (CAROTAR) which entry into force since 
21 September  2020. CAROTAR requires other documents except CoO AIFTA to claim tariff 
preferences.  
Question 33(a):  Please explain the objectives of this measure.  
Reply:  The question raised pertains to a regional trade agreement, which does not fall within the 
purview of TPRM [the function*  of the TPRM is to examine the impact of a Member's trade policies 
and practices on the multilateral trading system].  However, a comprehensive document containing 
relevant information on the CAROTAR 2020 is available in public domain, which may be referred 
at https://www.cbic.gov.in/resources//htdocs -cbec/customs/CarotarBrochure_8thOct2020.pdf .  
[*Annex 3 to the Marrakesh Agreement establishing the WTO]  WT/TPR/M/403/Add.1  
 
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  Question 33(b):  Indonesia is of the view that the CAROT AR might creating barriers to the import. 
To that extend, Indonesia would like to ask, has the measure in line with ROO AIFTA and Trade 
Facilitation Agreement? Which those agreements are supposedly accelerating and opening market 
access.  
Reply:  Please refe r to the response to Q. No. 33(a)  
Question 33(c):  Has the government can guarantee there will be no information leak under the 
CAROTAR scheme? If so, how?  
Reply:  Please refer to Q. No. 33(a)  
  
  WT/TPR/M/403/Add.1  
 
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  INDONESIA (ADDITIONAL WRITTEN QUESTIONS)  
QUESTIONS FROM THE S ECRETARIAT REPORT  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1.1 Customs procedures, valuation, and requirements  
Page 43 ( para.  3.1) 
In India, the import (and export) of goods is governed by the Customs Act, 1962, the Customs Tariff 
Act, 1975, the Foreign Trade (Development and Regulation (D&R)) Act, 1992, and the Foreign Trade 
Policy (FTP) issued by the Directorate General of Foreign T rade (DGFT). The DGFT also issues Public 
Notices to implement the provisions of the Foreign Trade (D&R) Act, the Rules and Orders, and the 
provisions of the FTP.  
Preferential Trade Agreements are a widely practiced norm in international trade policy in re cent 
times; India too, has its share of PTAs. The Government of India notified the CAROTAR 2020 which 
came into effect on September 21, 2020. Under the CAROTAR regime, the declaration and 
verification criteria will become comprehensive for import under Pre ferential Tariff Treatment. The 
stringent requirements will impact the importers, especially those who are legitimately claiming 
Preferential Tariff Treatment.  
Question 1:  What is the purpose of CAROTAR 2020? And how does the Indian Government ensure 
that CAROTAR 2020 does not constitute a trade barrier?   
Reply:  The CAROTAR 2020 relates to imports under bilateral FTA, which does not fall within the 
purview of TPRM [the function* of the TPRM is to examine the impact of a Member's trade policies 
and practice s on the multilateral trading system]. However, a comprehensive document containing 
relevant information on the CAROTAR 2020 is available in public domain, which may be referred at 
https://www.cbic.gov.in/resources//htdocs -cbec/customs/CarotarBrochure_8thOct2020.pdf  
[*Annex 3 to the Marrakesh Agreement establishing the WTO]  
Page 43 ( paras. 3.2-3.3) 
In India, the import (and export) of goods is governed by t he Customs Act, 1962, the Customs Tariff 
Act, 1975, the Foreign Trade (Development and Regulation (D&R)) Act, 1992, and the Foreign Trade 
Policy (FTP) issued by the Directorate General of Foreign Trade (DGFT). The DGFT also issues Public 
Notices to impleme nt the provisions of the Foreign Trade (D&R) Act, the Rules and Orders, and the 
provisions of the FTP.  
3.2. Importers (and exporters) are required to register with the DGFT to obtain an Importer -Exporter 
Code (IEC). No import (export) can take place witho ut this Code, unless specifically exempted. 
Exempted categories include imports (exports) by central or state governments; imports (exports) 
for personal use; and imports (exports) from (to) Nepal, Bhutan, Myanmar (through the 
Indo-Myanmar border areas) an d China (through the Gunji, Namgaya, Shipkila and Nathula ports), 
if consignments are of a specific value.  
Question 2:  Does individual (importer or exporter without an agent or authorized agent) have to 
apply for IEC if they would like to import or export goods? Is there any minimum value or specific 
type of goods that is allowed to be imported or exported by individual?  
Reply:  Yes, every Importer / Exporter, including individuals, need to possess IEC if they want to 
import or export goods. However, some ex ceptions have been given as per provisions of para. 2.07 
of the Foreign Trade Policy (2015 -20), like imported goods for personal use, baggage, etc. There is 
no minimum value requirement.  
3.1.5.2 Import licensing and restriction  
Page 59 ( para.  3.56)  
To facilitate the importation of restricted items, an import licensing system is in place. In 2019/20 
there were 440 tariff lines (3.7% of all tariff lines) subject to import licensing.58 All importers holding WT/TPR/M/403/Add.1  
 
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  a valid IEC may apply for a licence. Import licen ces are issued, on an MFN basis, by the DGFT. The 
practice of routing import licensing applications through the sponsoring authorities was stopped. 
Applications are considered by the Exim Facilitation Committee, a single administrative organ, 
constituted f or this purpose. Import licences are valid for 18 months, renewable for 6 months on 
merit. Fees are calculated based on the c.i.f. value of imports, one per thousand of the c.i.f. value, 
with a minimum of INR 500 and a maximum of INR 100,000. Import licenc es are issued for a specific 
port as specified by the applicant. If the import policy specifies a port of entry for a particular product, 
then the licence will indicate it.  
On 13 April 2020, The Indian Directorate General of Foreign Trade through Trade Not ice No. 2/2020 -
21 notified the conditions for importing Refined Palm Oil. On 8 January 2020, India had amended 
the import policy of such oil from "Free" to "Restricted " an import licen ce will be required for such 
import. Import of refined palm oil will be permitted subject to the certain conditions.   
Question 3:  Please explain in detailed on the procedures and requirements for administrative 
documents to obtain this import licen ce. 
Reply:  The import licensing procedure is laid down in para. 2.50 and 2.51  of Handbook of Procedure 
(2015 -20). For import of items which are under the 'Restricted ' list of import an importer may submit 
an online application available at http://dgftcom.nic.in/eComapplica tions.html   
Question 4:  Indonesia would like to know whether this measure is temporary or permanent. If such 
measure is temporary, Indonesia would like to know the condition to end the measure. If it is 
permanent, Indonesia needs to know the reason why Ind ia imposes the policy.   
Reply: The measure on refined palm oil is to ensure quality standards and prevent violation of rules 
of origin and is subject to revision/ withdrawal/ amendment, in consultation with the stakeholders 
concerned.  
Question 5:  Trade not ice No. 2/2020 -21 is not in conformity with Agreement on Import Licensing. 
Why does Indian Government regulate refined palm oil products under the scope of non -automatic 
import licensing policy?  
Reply:  Import licensing measures taken by India are consistent with the WTO rules under the GATT 
and the Agreement on Import Licensing Procedures and are administered in a fair and equitable 
manner, including with respect to the timeframes for grant of import licen ces. The measure on 
refined palm oil is to ensure quality standards and prevent violation of rules of origin and is subject 
to revision/ withdrawal/ amendment, in consultation with the stakeholders concerned.  
Question 6:  We note that import authorization must be accompanied by pre -purchase agreemen t 
and import details for the last three years. It seems burdensome to the importers. Is there any 
alternative to obtain import licensing?  
Reply: The details sought are required for transparency purposes.  
Page 60 ( para.  3.63)  
Certain products may only be im ported through specific ports. These are: natural rubber (HS4001) 
(Chennai and Nhava Sheva (Jawaharlal Nehru Port); palm oil (HS1511) (all ports, except ports in 
Kerala); new vehicles (16 entry points); and used/second -hand vehicles (Mumbai Port).  
Question  7: The policy that certain products may only be imported through specific ports, is also 
deemed necessary to pay attention to Indonesian 's main export products, namely natural rubber -
HS4001 (285 USD million) and palm oil -HS1511 (2,247 USD million). It was  reported that natural 
rubber products could only be imported via Chennai and Nhava Sheva - Jawaharlal Nehru Port and 
palm oil for all ports, except ports in Kerala. Furthermore, one of the reasons for the appointment 
of a certain location for the import o f a product is that the importing country has a special customs 
authority will supervising the import of the said products.  WT/TPR/M/403/Add.1  
 
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  Regarding our two main products to India, natural rubber and palm oil, are there any additional 
requirements/ specifications regardi ng the importation of these two products that can cross through 
the specific ports?   
Reply: Please refer to the DGFT 's notification on Rubber (No. 11 dated 12th June,2018) and Palm 
oil (No. 39/2015 -2020 dated 8th January 2020 and notification no.63 (RE -2007)/2004 -2009 dated 
December 24, 2007). Details of phyto -sanitary requirements mentioned in Plant Quarantine Order, 
2003 and its amendments apply.  
Page 60 ( para.  3.65)  
On 5 September 2019, the import policy of certain items in Chapters HS72, HS73 and HS86 was 
revised from being free to subject to compulsory registration under the Steel Import Monitoring 
System, to allow the authorities to monitor the trade volumes. Currently, no other goods are 
monitored.  
Question 8: Ministry of Commerce & Industry, De partment of Commerce, Directorate General of 
Foreign Trade, Government of India on September 5, 2019 has issued an amendment in import 
policy of iron and steel and incorporation of policy condition in Chapter HS 72, 73 and 86. The 
amends the import policy from "free" to "free subject to compulsory registration under the Steel 
Import Monitoring System (SIMS) " for items under Chapter 72, 73 and 86, to allow the authorities 
to monitor the trade volumes. Considering that flat -rolled products of stainless steel are Indonesia's 
third largest export product to India ( USD 398 million), it is necessary to pay attention to whether 
the registration procedure implemented will make it difficult for these products to enter India.  With 
regard to Notification No. 17/2015 -2020 dated 5 September 2019, why did the Government of India 
amend the import policy and how does the effectiveness and procedures of Steel Import Monitoring 
System (SIMS) on iron and steel importation?  
Reply: Steel Import Monitoring system (SIMS) is a tool for collecting granular data in advance about 
intended steel imports into India. It has been created to overcome the deficiency in import 
information. It provides detailed information about steel grades being imported into the country. 
SIMS data can be the  basis of measures by the Government to prevent unfair trade practices.  
PART III: OTHER QUESTIONS  
Question 9:  Regarding the application of royalty fees for imported tires from Indonesia, could the 
Government of India explain the procedure of import to obta in import licensing and recommendation 
letter from related Ministries.  
Reply: The import licensing procedure is laid down in para. 2.50 and 2.51 of Handbook of Procedure 
(2015 -20). For import of items which are under the 'Restricted ' list of import an impo rter may submit 
an online application available at http://dgftcom.nic.in/eComapplications.html . There is no 
requirement of payment of royalty fees.  
Question 10:  Indonesia also request explanation from India on the rationale of imposing royalty 
fee on the export of tire with IS mark and certification to other countries.  
Reply:  The cost structure of BIS product certification is based on the Marking Fee Policy and b ased 
on this policy, the advance minimum marking fee for a licen ce is charged by the BIS. There is no 
disparity in the marking and overall fees levied by BIS on domestic and foreign manufacturers. Even 
if domestic manufacturers are exporting product with B IS mark to outside India, they have to pay 
marking fee to BIS. This fee is charged to cover the traveling and other costs in case complaint is 
received from outside India for a BIS marked product.  
Question 11:  On 3 July 2019, India notified the initiation of anti -dumping investigation on imports 
of flat rolled products of stainless steel from China ; Korea ; European Union ; Japan ; Chinese Taipei;  
United States;  Thailand ; South Africa ; United Arab Emirates;  Hong Kong , China;  Singapore ; Mexico ; 
Viet Nam; Malays ia; and Indonesia. Please explain in detail the definition of subsidy that referred by 
India and please update the progress of the investigation.  WT/TPR/M/403/Add.1  
 
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  Reply: DGTR has already published the final findings in this case which may be seen at  
https://www.dgtr.gov.in/sites/default/files/FF%20NCV%20English_0001.pdf .  
Question 12:  Refer to Chart 3.2 on Secretariat Report, Indonesia is the sixth largest partner wh o 
is imposed anti-dumping by India, please also explain in detail the measures taken by India for 
continuous cast copper wire rods and fibre broads.  
Reply:  India has imposed countervailing duty on import of continuous cast copper wire rods 
originating in or exported from Indonesia, Malaysia, Thailand and Vietnam. Details of investigation 
may be seen at: https://www.dgtr.gov.in/countervailing -duty-investigation/initiation -anti-subsidy -
investigation -concerning -imports . Anti -Subsidy investigation against import of Fibreboards is 
underway. The details of this investigation may be seen at https://www.dgtr.gov.in/countervailing -
duty-investi gation/anti -subsidy -investigation -concerning -imports -
%E2%80%9Cfiberboards%E2%80%9D .  
Question 13:  Indonesia would like to request India to provide background to impose a bank 
guarantee of 20 % for import of gold jewelry and the possibility to reduce the num ber. 
Reply:  There is no general stipulation for seeking bank guarantee on the import of gold from 
Indonesia.  
Question 14:  Please explain how Indian Government can guarantee that this policy applies to all 
countries (MFN) and not discriminatory in practice.  
Reply:  Same as reply to the Q. No. 13.  
 
  WT/TPR/M/403/Add.1  
 
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  CHINA  
Page 10 ，Summary (para.  21) 
"Over the review period, India revised its standardization legislation; the Bureau of Indian Standards 
(BIS) Act, 1986 was replaced by the BIS Act, 2016. Under the new Act, standardization covers goods 
and was introduced for services, systems, and processes; and several new provisions were adopted, 
such as new types of conformity assessment schemes. " 
Question 1:  Please elaborate on new BIS provisions, especially on the specif ic content of the new 
types of conformity assessment schemes.  
Reply: 08 different conformity assessment schemes have been notified under BIS (Conformity 
Assessment) regulations, 2018 framed under BIS Act, 2016 and the details of the schemes are 
available o n BIS website www.bis.gov.in . 
Question 2:  At present, Chinese air conditioning enterprises exporting products to India are 
seriously affected by new BIS provisions (Air Conditioner and its Related Parts, Hermetic Compr essor 
and Temperature Sensing Control Order, 2019). Please explain ways to ensure the smooth 
certification during the COVID -19, so as not to cause unnecessary obstacles to trade.  
Reply: Inspections are a critical part of certification procedures. Presently , foreign inspection visits 
are on hold due to the prevalent restrictions on international travel imposed in view of the ongoing 
COVID -19 pandemic. The situation is being actively monitored.  
Page 83  (para.  3.160 ) 
"The BIS formulates Indian standards in all  sectors, except in those stipulated in the Agricultural 
Produce (Grading and Marking) Act, 1937, and the Drugs and Cosmetics Act, 1940. " 
Question 3: Are catalogs of Indian standards for all industries available? If so, please provide 
information on how to  get the catalogs and purchase these standards.  
Reply: Yes, the catalogs of Indian standards for various industrial sectors are available on the BIS 
website and the same can be accessed on the BIS website https://www.services.bis.gov.in . 
Further , all Indigenous Indian Standards can be downloaded free of cost from the BIS website after 
registration on the BIS portal. For purchase of Indian Standards that are adop tions of ISO/IEC 
standards, please visit  http://standardsbis.in . 
Page 84  (para.  3.161 ) 
"In March 2018 (latest data available), there were 19,294 Indian standards, 27.3% of which were 
harmonized with international stan dards. " 
Question 4: Are Indian standards categorized into national standards and industry standards? Do 
these 19,294 standards cover all industries in India? Which industries have a more developed system 
of standards? Which do not?  
Reply: BIS is the National Standards Body of India as per the BIS ACT, 2016. Thus, all Indian 
Standards published by BIS are national standards. These Indian standards cover various industrial 
sectors of the economy.  
Question 5: With the adoption of international standards at a low level, is India planning to enhance 
international standardization? How to increase the adoption of international standards?  
Reply: In accordance with the Code of Good Practice of WTO -TBT Agreement and as a policy, BIS 
technical committees try to a lign the Indian Standards with the International Standards of ISO and 
IEC, where available and to the extent possible keeping in consideration the specific agro climatic / 
environmental conditions and technological development of the country.  Considering t hat there are 
7,815 existing Indian Standards for which corresponding ISO or IEC standards exists, about 83 % WT/TPR/M/403/Add.1  
 
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  (i.e., about 6 ,500) of Indian Standards have been harmonized with ISO and IEC standards, as 
on December 2020.  
Page 85  (para.  3.163 ) 
"The steps to develop technical regulations are broadly common to all sectors, and did not change 
substantially over the review period (Chart 3.5). In general, draft technical regulations are subject 
to national and international public consultations. Comme nts by national stakeholders must be 
received within 60 days, and WTO Members have at least 60 days to provide comments. Finalizing 
draft technical regulations takes 6 to 12 months, including approval, vetting, and translation into 
Hindi. Once technical re gulations are finalized as rules, regulations (or Quality Control Orders for 
those issued by the DPIIT), they are published in the Official Gazette and are simultaneously notified 
to the WTO. There is no minimum prescribed period of time for a technical re gulation to enter into 
force; a reasonable period of time is given. Technical regulations are amended on an ad hoc basis. 
India does not have a consolidated online catalogue of draft and approved technical regulations. " 
Question 6: The Ministry of Commerce  and Industry of India issued Notice No. 26/2015 -2020 to 
revise the import policy of toys, which came into immediate effect. At the same time, DPIIT issued 
Toys (Quality Control) Order, 2020 (Notice G/TBT/N/IND/131) with a comment period of only 
15 days. T hese Notices fail to give WTO members a 60 -day comment period and a 6 to 12 -month 
transition period. Please justify the non -compliance with WTO/TBT transparency principle.  
Reply: QCO on toys was notified after consultation with stakeholders on 25.2.2020 wi th 
implementation date of 01.09.2020. More than 6 months ' time was given for implementation of the 
QCO. This was notified to WTO for comments.  Taking into cognizance the comments of the 
manufacturers, the implementation date was further extended upto  01.01.2021 to enable 
manufacturers/traders to clear inventory, get licen ce from BIS etc.  The measure is in compliance 
with WTO TBT Agreement  
Question 7: Does India plan to develop a consolidated online catalogue of draft and approved 
technical regulations?  If so, please introduce the plan and expected timetable?  
Reply: A consolidated list of approved technical regulations (Quality Control Orders), where BIS is 
the certifying authority, has been uploaded on BIS website at www.bis.gov.in . Similarly, draft and 
approved technical regulations of other authorities are published on their websites.  
Page 86  (para.  3.166 ) 
Product certification is voluntary, for both domestic and imported products, except for products that 
must comply with Indian standards, even if these are not considered technical regulations, for public 
health and safety and for the protection of the environment. The relevant sectoral entities, in 
consultation with stakeholders, decide which products require m andatory certification. There are 
two mandatory certification schemes.  
Question 8:  India's 264 products requiring factory and market surveillance include air -conditioning 
products and components. At present, BIS personnel are unable to travel to China for necessary 
factory inspections due to the COVID -19, and thus the exports of Chinese air -conditioning companies 
to India are severely affected. Please provide an alternative method for certification during the 
pandemic or a transition period that postpones t he implementation of new BIS regulations.  
Reply:  Foreign inspection visits are on hold due to the prevalent restrictions on International travel 
in view of the ongoing COVID -19 Pandemic. As soon as the situation of COVID -19 improves and the 
restrictions ar e lifted, India will plan the inspections (factory visit). The product certification   activity 
of BIS for licence to use Standard Mark (ISI Mark) is governed in accordance with Scheme -I of BIS 
(Conformity Assessment) Regulations, 2018. This scheme specifi es factory visit of the applicant 
manufacturing premises. During the visit Product sample from the factory premises is also drawn & 
dispatched for independent testing in a laboratory situated in India. It is not feasible to carry out 
this activity through remote inspection. With regard to grant of sufficient extension for obtaining 
licences, concerned regulator considers the requests as and when received from various 
associations/industries regarding extension in date of implementation of various technical 
regulations (Quality Control Orders) keeping in view the difficulties arising due to COVID -19. WT/TPR/M/403/Add.1  
 
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  Page 86  (para.  3.168 ) 
"Certified products may use the BIS Standard Mark (ISI symbol). Licences to use this symbol are 
granted for up to two years and may be rene wed for up to five years. Foreign manufacturers must 
have an authorized representative in India to obtain a licence to use the BIS Standard Mark (ISI 
symbol). The terms to grant a licence to a foreign manufacturer varies according to the product. The 
certification process for imports includes an on -site visit. The licence fee amounts to INR 1,000. The 
BIS also manages the ECO Mark for environmentally friendly products; its use is voluntary. " 
Question 9: Bureau of Indian Standards (Conformity Assessment) Reg ulations, 2018 stipulates the 
terms for foreign manufacturers to apply for a licence; however, it does not specify the time limit 
for granting a licence to a foreign manufacturer. The maximum time for BIS to issue a licence is 
unclear after a foreign manuf acturer submits a complete file of application materials.  
Reply: The time norm for grant of licen ce for foreign manufacturers is normally 180 days provided 
the applicant (foreign manufacturer) complies with all the requisite requirements for grant of licence 
within the stipulated time period.  
Page 86  (para.  3.168 ) 
"Certified products may use the BIS Standard Mark (ISI symbol). Licences to use this symbol are 
granted for up to two years and may be renewed for up to five years. Foreign manufacturers must  
have an authorized representative in India to obtain a licence to use the BIS Standard Mark (ISI 
symbol). The terms to grant a licence to a foreign manufacturer varies according to the product. The 
certification process for imports includes an on -site vis it. The licence fee amounts to INR 1,000. The 
BIS also manages the ECO Mark for environmentally friendly products; its use is voluntary. " 
Question 10:  According to the Bureau of Indian Standards (Conformity Assessment) Regulations, 
2018, third -party labora tories currently accredited by India are limited to those accredited by the 
National Accreditation Board for Testing and Calibration Laboratories (NABL). Please explain why the 
certification report from the International Laboratory Accreditation Cooperatio n (ILAC) is not 
accepted. At the same time, does India plan to promote the accreditation of overseas OSLs? If so, 
please provide the procedures that overseas OSLs should follow to apply for BIS accredited 
laboratories.  
Reply:  In India, NABCB and NABL are f ull members of ILAC as well as signatories to their 
MRAs.   India does accept accredited conformity assessment reports/certificates bearing ILAC MRA 
Mark from conformity assessment bodies outside India. For products under Technical Regulations, 
the conformi ty assessment mechanism, as prescribed in respective Indian Technical 
Regulation  prevails.  
Page 91  (para.  3.197 ) 
"Recommendations were released in 2019. They included: (i) the adoption of provisions to identify 
hub-and-spoke agreements (anti-competitive practices); (ii) the insertion of an express provision to 
cover all kinds of anti -competitive agreements that may not be classified strictly as either horizontal 
or vertical arrangements; (iii) the adoption of a mechanism to provide the p ossibility to opt for a 
settlement and/or commitment (anti -competitive practices); (iv) the creation of a green channel 
route to provide automatic approval for combinations (i.e. mergers, acquisitions, and 
amalgamations); and (v) the inclusion of threshold s for combinations in the digital sector. The 
Committee also made recommendations regarding governance in CCI and NCLAT investigation 
procedures, and fines.196 The Competition Act is being reviewed to implement these 
recommendations. The green channel rout e for combinations has already been adopted. " 
Please elaborate on "the creation of a green channel route to provide automatic approval for 
combinations " in the revision recommendations of the Competition Law published by the CCI in 
2019. In what ways does this approach improve review efficiency?  
Question 11: Please elaborate on "the creation of a green channel route to provide automatic 
approval for combinations " in the revision recommendations of the Competition Law published by 
the CCI in 2019. In what wa ys does this approach improve review efficiency?  WT/TPR/M/403/Add.1  
 
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  Reply: The CCI has introduced an automatic system of approval for combinations under Green 
Channel on 13th August 2019. Under the Green Channel, the combinations in which the parties do 
not have any horizontal, vertical or complementary overlaps, as stipulated in Schedule III of 
Combination Regulations, are deemed approved on the date of filing of the notice, at the option of 
the parties. Regulation 5A relating to the Green channel also stipulates that if any of the above 
statements declared by the parties is incorrect, the notice and the approval so granted shall be  void 
ab initio.  Under the Green Channel, the  combination is deemed to have been approved upon filing 
the notice in the prescribed format. This system would significantly reduce time and cost of 
transactions. Further details may be seen at  
https://www.cci.gov.in/sites/default/files/regulation_pdf/210553.pdf .  
Page 91 (para.  3.197 ) 
"Recommendations were released in 2019. They included: (i) the adoption of provisions to identify 
hub-and-spoke agreements (anti-competitive practices); (ii) the insertion of an express provision to 
cover all kinds of anti -competitive agreements that may not be classified strictly as either horizontal 
or vertical arrangements; (iii) the adoption of a mechanism to provide the p ossibility to opt for a 
settlement and/or commitment (anti -competitive practices); (iv) the creation of a green channel 
route to provide automatic approval for combinations (i.e. mergers, acquisitions, and 
amalgamations); and (v) the inclusion of threshold s for combinations in the digital sector. The 
Committee also made recommendations regarding governance in CCI and NCLAT investigation 
procedures, and fines.196 The Competition Act is being reviewed to implement these 
recommendations. The green channel rout e for combinations has already been adopted. "  
Question 12:  Please elaborate on "the inclusion of thresholds for combinations in the digital sector " 
in the revision recommendations of the Competition Law published by the CCI in 2019.  
Reply:  Mergers and acq uisitions below thresholds (in terms of assets or turnover) prescribed under 
the Competition Act, are not notifiable combinations to Competition Commission of India (CCI). Many 
companies operating in digital markets have relatively less assets and turnover  base than companies 
operating in conventional markets. Thus, they may escape the scrutiny of CCI as their asset and 
turnover may be less than the thresholds prescribed for notification under the extant regulatory 
framework. As per the recommendations of e xpert panel (Competition Law Review Committee), 
acquisition of firms in digital markets by incumbents can be a part of a strategy to eliminate potential 
competition, consolidate market position or to expand into new line of businesses. Such acquisitions 
may thus have an adverse effect on the competition environment in the country.  
Page 92  (para.  3.200 ) 
"In general, agreements that cause, or may cause, or are likely to cause an "appreciable adverse 
effect on competition" are prohibited. These include horizontal agreements (e.g. cartels) and vertical 
agreements. However, such prohibitions may not apply if: (i) they relate exclusively to exports; (ii) 
they impose restrictions in order to protect IPRs; or (iii) they help increase efficiency ." 
Question 13:  Please introduce the reasons and the exceptions to the adoption of monopoly 
agreements of the Competition Law of India.   
Reply: The prohibition on anti -competitive agreements does not normally apply to export cartels 
across the jurisdiction. Section 3(5)( ii) of the Competition Act 2002 provides that the prohibition on 
anti-competitive agreements shall not restrict the right of any person to export goods from India to 
the extent to which the agreement relates exclusively to the production, supply, distribut ion or 
control of goods or provision of services for such export.  
Further other provisions like Section 3 (5), Section 54 etc also provide for exceptions. These 
exceptions have been given with an objective to increase efficiency, maintain a balance between  
incentives to innovate and promote competition, national security, commitments under international 
treaties, etc.  WT/TPR/M/403/Add.1  
 
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  QUESTIONS FROM THE GOVERNMENT REPORT (WT/TPR/G/403)  
Page 16  (para.  5.8) 
"FDI up to 100% is now permitted under the automatic route in most sectors/activities. "  
Question 14:  On April 17, 2020, the Ministry of Commerce and Industry of India issued an 
announcement (No.5 (5)/2020 -FDI Policy), stipulating that entities and citizens of its bordering 
countries must go through the "government r oute" before investing in the country. China believes 
that India 's measures violate WTO rules and India 's multilateral commitments. Please justify the 
practice of adopting different investment approval policies for different WTO members. Please also 
explai n in detail the procedures and requirements of "government route ", including specific steps, 
as well as materials, time, and costs required, etc.  
Reply: India allows FDI from all foreign countries.  The new measure taken in 2020 has only changed 
the approv al procedure from automatic to government approval route. The Procedure for processing 
applications seeking approval for Foreign Investment can be seen in the Standard Operating 
Procedure (SOP) dated 09.11.2020, issued by the Department for Promotion of In dustry and Internal 
Trade (DPIIT), Government of India. This SOP can be accessed on Foreign Investment Facilitation 
Portal at https://fifp.gov.in/Forms/SOP.pdf .  
Page 73  (para.  3.112 ) 
"During the review per iod, the DGFT, on the recommendation of the Ministry of Environment, Forest 
and Climate Change (MoEF&CC), imposed a yearly export quota of 310 MT on red sanders wood 
exclusively sourced from private land (including Pattaland). " 
Question 15:  Please explain whether red sanders wood with export quota holds a special export 
licence? 
Reply: The export of Red Sanders Wood exclusively sourced from private land (including pattaand) 
is restricted and only allowed against an export licen ce issued by the DGFT.  The export quota of 
310 MT has been fixed on yearly basis for issuance of export licen ces which are issued on the basis 
of submission of certain documentation as specified in the export policy and the NOC received from 
Ministry Environment, Forest an d Climate Change (MoEF & CC).  
Question 16:  Please specify the start and end dates of the policy 's implementation period.  
Reply: The policy 's implementation period is from 1st April to 31st March, every year. It is informed 
that as per DGFT Public Notice No . 74/2015 -20 dated 18  February2019 (copy enclosed), a yearly 
quota of 310 MT for export of Red Sanders Wood exclusively sourced from cultivated origin obtained 
from private land including Pattaland has been recommended. The yearly quota is affected from th e 
year 2017 -18. The yearly quota can be reviewed by the Ministry of Environment, Forest and Climate 
Change based on NDF study or recommendations of the Government agencies.   
PART III. OTHER QUESTIONS  
Question 17:  multiple announcements, citing "safeguarding the sovereignty and integrity, national 
defense, national security and public order " to prohibit 267 mobile phone software with a Chinese 
background  in India , including photo editing software, business card recognition software, 
translation software, etc. Please justify in detail the practice of disabling the above software . Does 
India have clear facts and evidence to prove that Chinese software endangers India 's fundamen tal 
security interests? Do India 's restrictive measures also include software from other countries? Please 
provide a detailed list . 
Reply: Certain mobile applications posing security concerns were blocked for access in India under 
section 69A of the Inform ation Technology Act, 2000 based on a comprehensive assessment. A 
transparent process with necessary checks and balances and safeguards, as specified in the 
Information Technology (Procedure and Safeguards for blocking for Access of information by Public) 
Rules, 2009, was followed while blocking these applications.   
  WT/TPR/M/403/Add.1  
 
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  CHINA (ADDITIONAL WRITTEN QUESTIONS)  
Page 8 ，Summary (para.  7) 
"India is an original Member of the WTO and provides MFN treatment to all but one Member. India 
also ratified the Trade Facilitation Agreement (TFA) on 22 April 2016. It is a party to the WTO 
Information Technology Agreement (ITA), but not the expanded ITA. India is an observer to the 
WTO Agreement on Government Procurement (GPA). During the review period, India made a 
numb er of notifications to the WTO. " 
Question 1:  When does India plan to join the GPA?  
Reply:  There are no such plans as of now. India is closely observing the developments under the 
WTO GPA.  
Page 8 ，Summary (para.  8) 
"There have been no major changes regarding /to the formulation and implementation of trade 
policies since the last Review. Trade policy objectives are set out in the Foreign Trade Policy (FTP), 
which is issued every five years and is revised from time to time. The FTP aims to increase India's 
share  of global exports from 2.5% in 2015 to 3.5% in 2020. The export target is to be achieved 
through a number of incentives, such as the Merchandise Export from India and the Services Export 
from India Schemes. India also continues to make frequent changes to  its trade policies and 
measures, through circulars and notifications, to address domestic concerns. India continued to 
liberalize its policies on FDI, further permitting FDI up to 100% without the need for prior 
government approval in an expanded list of agricultural activities; defence; broadcasting carriage 
services; telecommunications services and business -to-business electronic commerce; insurance 
intermediaries; and airports, other air services and non -scheduled air transport services. " 
Question 2:  On 17 April 2020, India issued its new policy on review of FDI, which stipulates that 
FDI including setting up a company by a country sharing a land border with India shall be approved 
by the Indian Government in advance; an amendment to the General Financia l Rules (GFRs) issued 
in July stipulates that any bidder from countries sharing a land border with India will be eligible to 
bid in any procurement only if the bidder is registered with the Competent Authority. These measures 
will have a significant impact  on investments in India by investors from countries sharing land 
borders with India. Could India please explain whether it is in conformity with the MFN discipline in 
the GATS?  
Reply:  Yes, the measures adopted are consistent with India 's commitment under GATS.  
Page 10  (para.  18) 
"India continues to be an active user of anti -dumping measures; it is currently the main user of anti -
dumping measures in the WTO. During 2015 -19 (as at December 2019), India initiated 
233 investigations, a sharp i ncrease since 2011 -14 (June) when the number of initiations stood at 
82. Most of the investigations initiated during the review period relate to products originating in 
China, followed by those originating in the Republic of Korea and the EU -28. At end -2019, India had 
imposed 254 anti -dumping duties. " 
Question 3:  We have noticed that there was a sharp increase in the number of anti -dumping 
investigations initiated by India during 2015 -2019, and that most of the investigations related to 
products originated from China. What are India 's considerations?  
Reply:  Directorate General of Trade Remedies (DGTR) of India initiates anti -dumping investigations 
on the basis of fully documented petitions filed either by, or on behalf of, the concerned domestic 
industry. Fo r an anti -dumping investigation to be initiated, the petitioner must furnish sufficient 
evidence regarding dumping of the goods in question, injury to the domestic industry and a causal 
link between the dumped imports and alleged injury to the domestic ind ustry. This is done in 
accordance with WTO provisions and the increase in anti -dumping investigations is only India 's 
reaction to mitigate the increase in incidence of unfair trade practices.  WT/TPR/M/403/Add.1  
 
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  Page 10  (para.  22) 
"The General Financial Rules (GFRs) that apply to all sectors is the main piece of legislation regulating 
government procurement. Over the review period, the GFRs were amended several times, inter alia , 
to introduce new procurement methods and enforce the u se of electronic procurement. " 
Question 4:  In respect of the requirements above, could India please explain the review standards, 
specific procedures and time limit for processing?  
Reply:  General Financial Rules was revised in 2017 after the previous revis ion took place in 2005. 
The details asked for may be perused at https://doe.gov.in/sites/default/files/GFR2017_0.pdf , and 
https://doe.gov.in/divisions/amendments -general -financial -rules-gfr-2017. 
Page 11  (para.  24) 
"India continues to maintain price controls, especially for agricultural products under various 
mechanisms. Retail prices of other products, such as LPG cylinders, natural gas, fertilizer, and drugs, 
are also controlled. Price controls are in place mainly to support the agricultural sector, ensure food 
security, and reduce poverty. " 
Question 5:  Could India please explain the details o f the price controls on agricultural products, 
fertilizers and pesticides, including the varieties and the objects under control, the control 
procedures, the starting time of price controls, the price levels, and the specific control measures?  
Reply:  Relev ant details for agricultural products can be accessed from: 
http://agricoop.nic.in/recentinitiatives/minimum -support -pricesmsps -kharif -crops -2019-20-
season ; http://www.agricoop.nic.in/recentinitiatives/minimum -support -price-rabi-crops -2018-19-
season -be-marketed -2019-20; https://dfpd.gov.in/ ; and for fertilizers and pesticides at 
https://fert.nic.in/home -page.  
Page 17  (Box 1.1 ) 
"Coal mining: commercial mining to be permitted; and investment in infrastructure. " 
Question 6:  Could India please introduce the specific timetable of the commercial mining plan of 
coal mines?  
Reply:  India has launched auctioning of coal mine for commercial mining in the month of June 2020 
and has successfully auctioned 19 mines. India plans to offer coal mines to meet the domestic 
demand for coal and energy security on regular basis.  
Page 35  (para.  2.18) 
"As a founding Member of the WTO, India provides most -favoured nation (MFN) treatment to all 
WTO Members (and other trading partners that are not WTO Members), except Pakistan, for which 
it withdrew MFN treatment on 15 February 2019. " 
Question 7:  India has banned 267 Chinese Apps including Tiktok and WeChat since June 2020 for 
information security concerns, but the similar Apps from other WTO members were not banned. 
What are the India 's considerations? Is there any clear evidence to prove that the se Chinese Apps 
have endangered India's security interests?  
Reply:  Certain mobile applications posing security concerns were blocked for access in India under 
section 69A of the Information Technology Act, 2000 based on a comprehensive assessment. A 
transp arent process with necessary checks and balances and safeguards as specified in the 
Information Technology (Procedure and Safeguards for blocking for Access of information by Public) 
Rules, 2009 was followed while blocking these applications.  
Question 8:  India is a party to the ITA. We have noticed that India has successively increased the 
applied tariffs of its ITA products such as mobile phones and their accessories in recent years, some 
of which exceed the bound tariffs notified by India, thus violating the provisions of the ITA and Article WT/TPR/M/403/Add.1  
 
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  II (Schedules of Concessions) of the GATT. We have also noticed that India has circulated a request 
to amend the tariff of some IT products. We believe that the relevant products fall within the scope 
of the ITA, and t hat India 's tax measures are inconsistent with its commitments under the ITA and 
the WTO schedules thus violating the WTO rules. Does India have any relevant adjustment plans?  
Reply:  The tariffs levied by India on certain ICT products is currently the subj ect matter of WTO 
disputes. India is fully compliant with its obligations under ITA -1 and India is not a signatory to 
ITA-2. Further, India believes that its tariffs on ICT products, as maintained by India, are consistent 
with its bound duty commitments un der the ITA -1.  
Page 38  (para.  2.27) 
"India also provides duty -free and quota -free treatment to LDCs, following the WTO Hong Kong 
Ministerial Declaration in December 2005. The scheme is open to all LDCs who register for it. Since 
the last Review, when 31 L DCs had declared their interest and had received preferences under the 
scheme, another 5 have been added, while the Maldives and Samoa graduated from the UN LDC 
list; therefore, the total number of LDCs that are provided preferences under this scheme is 34 .23 
Data provided by the authorities indicates that the scheme now provides duty -free market access 
for around 94.2% of India's tariff (Section 3.1.3.5). " 
Question 9:  Does India have any transitional measures for the Maldives, Samoa and other countries 
that have graduated from the LDC list? If there are transitional measures, could India please 
introduce in details the transitional period and the preferential treatment?  
Reply:  India continued providing benefits under the Duty -Free Tariff Preference (DFTP) Scheme to 
give its beneficiaries Maldives and Samoa time to adjust, after their graduation from the UN list of 
Least Developed Countries (LDCs). Through notification 34/2016 -customs dated 19 May 2016, the 
DFTP preference for these countries were withdrawn. Other countries that have graduated from LDC 
list such as Equatorial Guinea were not availing the benefits under the DFTP scheme and had not 
been listed as beneficiaries of t he scheme.  
Page 41  (para.  2.34) 
"India has continued to gradually open up sectors to FDI; sectors in which FDI is prohibited are listed 
in Table 2.6. Other sectors were opened up, with varying limits of foreign equity. " 
Question 10:  Does India plan to grad ually lift restrictions on FDI in the real estate sector?  
Reply: The FDI Policy is reviewed on an ongoing basis, to ensure that India remains attractive & 
investor friendly destination and decisions on changes to the FDI policy are taken, in accordance 
with policy priorities and in consultation with all stakeholders.  
Question 11:  If there is a plan, could India please share detailed information and the specific 
timetable?  
Reply: May please see reply to Q. No. 10.  
Page 68 (Table 3.12 Countervailing measures, January 2020 ) 
Question 12:  In July 2020, India initiated a countervailing (CV) investigation against CHINA 's 
exports of viscose yarn products of more than 60 deniers. The application for the investigation shows 
that India only made  simple assertions on the alleged items without providing any evidence to prove 
the existence, amount or nature of the subsidy. The evidence provided did not meet the initiation 
conditions stipulated in the Agreement on Subsidies and Countervailing Measure s ("ASCM "). In spite 
of the strong opposition from China, India insisted on initiating the investigation. China enquires 
about the latest progress of the case and hopes that India will strictly abide by its obligations under 
the WTO agreements and make a f air and just ruling.  
Reply: The investigation has been initiated in accordance with Customs Tariff (Identification, 
Assessment and Collection of Countervailing Duty on Subsidized Articles and for Determination of WT/TPR/M/403/Add.1  
 
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  Injury) Rules, 1995 which are fully compati ble with WTO provisions. The latest progress of the case 
may be seen at:  
https://www.dgtr.gov.in/countervailing -duty-investigation/anti -subsidy -investigation -concerning -
imports -%E2%80%9Cviscose -rayon  
Page 101  (paras. 3.232 -233) 
"In 2020, on national defence and security grounds, the 2017 GFRs, were amended to allow for the 
imposition of restrictions (e.g. prior registration and/or screening) on bidders with specific origins. 
Therefore, since July 2020, bidders from trading partners that share land borders with India must 
register with the Registration Committee, set up by the Department for Promotion of Industry and 
Internal Trade (DPIIT). Registration is subject to prior clearance from the Ministries of External and 
Home Affairs. Registration is required each time that bidders from such origin intend to participate 
in a public procurement process. However, up unt il December 2020, exemptions to the registration 
requirement are in place, for procurement related to COVID -19-required medical supplies. In 
addition, trading partners that receive credit or development assistance from the Government are 
exempt from this r egistration requirement. " 
"According to the GFRs, government procurement must be transparent, competitive, and fair. 
Compliance with these principles is monitored by the Competition Commission of India (CCI), which 
carries out investigations on alleged col lusive bidding; and the Central Vigilance Commission (CVC) 
which is responsible for ensuring transparency and probity. In addition, the Comptroller and Auditor 
General must audit procurement at the central level; the Comptroller's reports are presented to 
Parliament. Similar oversight is carried out at the state level. " 
Question 13:  Could India please specify the registration procedures for a bidder to register with 
the Registration Committee? What are the review contents of the Ministry of Home Affairs?  
Reply: Details of the procedure of Registration may be seen at Department of Expenditure 's Office 
Memorandum dated 23.07.2020  
(https://doe.gov.in/sites/default/files/OM%20dated%2023.07.2020.pdf  ). 
Question 14: Could India please introduce how a foreign supplier can receive credit from the 
Government s o as to be exempted from the registration requirement?  
Reply: Exemption from registration has been given to the bidders from the countries to which India 
has extended line of credit.  
Page 105  (para.  3.247 ) 
"The NIPR Policy considers the possibility of offe ring financial support and fiscal incentives to 
encourage IP generation and commercialization. In this regard, a reduction of 80% on patent filing 
fees is granted to start -ups; and, since 2016, start -ups may deduct profits and gains derived from 
IP activit ies from taxable income. " 
Question 15: Could India please specify what criteria are used for start -ups to enjoy reductions on 
patent filing fee and tax incentives? What are the substantive and procedural requirements?  
Reply: Criteria for being identified as Start -ups for the purpose of patents, are provided in sub -rule 
(fb) of Rule 2 of the Patents Rules, 2003 (as amended), wherein "Startup" means:  
(a) an entity in India recognized as a startup by the competent authority under Startup 
India init iative, and  
(b) In case of a foreign entity, criteria for turnover and period of incorporation/registration 
as per Startup India Initiative and submitting declaration to that effect, is required.  
Thus, while filing Patent application in Form 1 and Patent s pecification in Form 2, as a procedural 
requirement, form 28 is to be filed by Startup entity along with documents to be submitted for 
evidence of eligibility as Start -up. WT/TPR/M/403/Add.1  
 
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  Further, for expedited examination of patent application by startup, they need to fi le Form 18A along 
with documents to be mandatorily submitted as evidence of eligibility for availing expedited 
examination on the grounds of being a start -up. 
As far as substantive requirements with respect to patentability are concerned, these are at par with 
applications by non -start-up applicants.  
Page 106  (para.  3.250 ) 
"In order to meet the objectives outlined in the NIPR, the IPR legal framework was revised over the 
period under review (Table 3.44). The Copyright Rules, 2013, were amended in 2016, to p revent 
conflicts between copyright and trademark rights, in relation to services (previously, only goods 
were considered); the Patent Rules, 2003, were amended in 2016, 2017, and 2019, to streamline 
and digitalize filing procedures; and new Trade Marks Rul es were enacted in 2017, to simplify and 
modernize the registration process, by repealing the Trade Marks Rules, 2002. In 2020, additional 
draft amendments to the Copyright Rules, GI Rules, Designs Rules, and Patents Rules were under 
consideration. " 
Question 16: Could India please further indicate what specific amendments have been made to the 
legal framework of copyright laws in 2020?  
Reply: The draft Copyright (Amendment) Rules, 2019, are under examination.   
Page 117  (para.  4.14) 
"Exports of some pr oducts are permitted only through STEs, although there have been no such 
exports since 2013/14. " 
Question 17: Could India please explain "some products " in detail? What is the reason why there 
have been no such exports since 2013 -2014?  
Reply: As on date, export of agricultural product is not under STE.  
Page 130  (para.  4.57) 
"As at March 2020, India had an installed renewable energy capacity of 87.91 GW " 
Question 18: According to the data in Chart 4.1, the installed capacity of renewable energies in 
June this year was less than 87 GW. Is there any change in India 's target to install 175 GW of 
renewable energies by 2022?  
Reply: Keeping in view our commitment for a healthy planet with less carbon intensive economy, 
the Government of India in 2015 had s et a target of installing 175 GW of renewable energy capacity 
by the year 2022. This includes 100 GW from solar, 60 GW from wind, 10 GW from biomass and 
5 GW from small hydro power. There is no change in the targets.  
Question 19: Does India have long-term targets for renewable energy capacity or carbon 
emissions?  
Reply: India has committed to reduce greenhouse gas emissions intensity by 33 to 35 % below 2005 
levels, and to achieve 40 % of installed electric power capacity from non -fossil-based resou rces by 
2030 under the 2015 Paris Agreement.  
Page 130  (para.  4.58) 
"FDI in India's electricity sector is allowed up to 100%. No government approval is required, except 
for FDI above 49% in power trading exchanges. Electricity generation from nuclear sourc es is 
reserved for the State. Foreign companies must be established in India to operate in the sector. " WT/TPR/M/403/Add.1  
 
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  Question 20: FDI power enterprises face other restrictions in operation and management that are 
different from those of domestic investment enterprises?  Is the management of power generation, 
transmission and distribution of FDI enterprises the same as that of domestic enterprises?  
Reply: FDI is subject to applicable laws/regulations and other conditionalities. Further information 
can be accessed at https://dipp.gov.in/sites/default/files/FDI -PolicyCircular -2020-
29October2020_0.pdf  and https://powermin.nic.in/en/content/policies -and-publication . 
Page 130  (para.  4.59) 
"India's electricity grid is connected to Bangladesh , Bhutan, Myanmar, and Nepal. " 
Question 21: Could India please provide specific information about the electricity quantities, voltage 
classes, circuit numbers and electricity price mechanisms of electricity trading between India and its 
neighbouring count ries? 
Reply:  India has entered into bilateral agreements with Bangladesh, Bhutan, Nepal and Myanmar 
for co -operation in power sector. The Government of India has issued Guidelines for Import / Export 
(Cross Border) of Electricity 2018 for facilitating cros s border trade which can be accessed at  
https://powermin.nic.in/sites/default/files/uploads/Guidelines_for_ImportExport_Cross%20Border
_of_Electricity_2018.pdf .  
Further details of interconnection between India and its neighbouring countries can be accessed at 
https://powermin.nic.in/en/content/interconnection -neighbouring -count ries.  
Page 130  (para.  4.59) 
"Cross -border supply is regulated by bilateral agreements. Since 2019, power trading has been 
allowed across India, if both trading partners have in turn a bilateral agreement with India. " 
Question 22: According to the CERC (Cr oss Border Trade of Electricity) Regulations, 2019, an entity 
of a neighbouring country needs the approval of the Indian Government or its authorized agency to 
participate in cross border trade of electricity, and the draft of the document also mentions th at 
more than 51% shares of a participating entity of a neighbouring country need to be held by India. 
Could India please introduce the approval criteria for enterprises of neighbouring countries to 
participate in cross border trade of electricity? Are ther e open and transparent approval procedures?  
Reply:  India has entered into bilateral agreements with Bangladesh, Bhutan, Nepal and Myanmar 
for co -operation in power sector. Based on this bilateral mechanism, there is cross border electricity 
flow/trade with these countries. The Government of India has also  issued Guidelines for 
Import/Export (Cross Border) of Electricity -2018 for facilitating cross border trade. The Guidelines 
prescribe open and transparent approval procedure for cross -border trade. For further details, the 
Guidelines can be accessed at 
https://powermin.nic.in/sites/default/files/uploads/Guidelines_for_ImportExport_Cross%20Border
_of_Electricity_2018.pdf . Furt her, the above Guidelines and Final CERC (Cross Border Trade of 
Electricity Regulation) 2019 do not prescribe 51% shareholding by India in the participating entity 
of neighbouring country.  
Question 23: In practice, are enterprises of neighbouring countries  approved according to the 
criteria set in Chapter 7 (Eligibility criteria for participating applicant) of the draft version of the 
document? In practice, have there been any situations in which enterprises of neighbouring countries 
that did not meet the c riteria mentioned in Chapter 7 of the draft document were able to participate 
in cross border trade of electricity in India?  
Reply: Cross border trade of electricity is governed by the Guidelines for Import/Export (Cross 
Border) of Electricity -2018 and CER C (Cross Border Trade of Electricity Regulation) 2019. The 
eligibility criteria for cross -border trade are specified in the Guidelines for Import/Export (Cross 
Border) of Electricity -2018. Entities are given approval for cross border trade of electricity a fter 
fulfilling the eligibility criteria. For further details, 
https://powermin.nic.in/sites/default/files/uploads/Guidelines_for_ImportExport_Cross%20BorderWT/TPR/M/403/Add.1  
 
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  _of_Electricity_2018.pdf. and http://www.cercind.gov.in/2019/regulation/CBTE -
Regulations2019.pdf. m ay be accessed.  
Page 133  (para.  4.69) 
"GST on transmission and distribution is 0%. Coal, which remains India's main source of power 
generation, is subject to a 5% GST rate. " 
Question 24: Is the policy applicable to foreign -invested enterprises?  
Reply: Yes, same tax rate is applicable to foreign invested enterprises.  
Question 25: For foreign power generation and transmission equipment, are there any restrictions 
or taxes different from those available for domestic equipment in India?  
Reply: There is no difference in taxes like GST on domestic and imported products.  
Page 1 53 (para.  4.147) 
"A permit is required to provide ground -handling services.  The number of service providers per 
airport depends upon the volume of trafic. A maximum of three providers may operate in airports 
with annual traffic of less than 10 million passengers ；and there must be at least three suppliers in 
the remaining airports.Airlines may also provide ground -handling services for their own flight 
operation s." 
Question 26: For airlines providing ground -handling services for their own flight operations at the 
airport, do they need to be licensed by the airport to provide such services to other airlines? As 
stated, there must be at least three suppliers operat ing in airports with an annual traffic of more 
than 10 million passengers. Do these three providers include airline ground -handling service 
suppliers that only provide such services for their own flight operations?  
Reply: All domestic Scheduled airlines an d helicopter operators are permitted to undertake 
self-handling at all airports including civil enclaves as per para. 3(1) of AAI GHS (Regulations), 2018 
but they are not permitted to provide Ground Handling services to other Airlines. As per GHS 
(Regulati on) 2018, there must be at least three agencies operating in airports with an annual traffic 
of more than 10 million passengers.   These three Ground Handling Service providers are other than 
the self -handling service providers of domestic scheduled airline  operators and specifically approved 
self-handling service providers of foreign airlines that provide services to their own flight.  
Page 154  (Table 4.20 Cabotage relaxation ) 
Question 27: What are the specific policy contents of the "relaxed cabotage " and what are the 
binding conditions?  
Reply: Orders/Notifications issued by the Government of India are outlined below:  
i) General Order No. 01 of 2018 dated 21.05.18 - India has granted relaxation under Section 407 of 
the Merchant Shipping Act, 1 958, for coastal movement of (a) EXIM Transhipment Containers and 
(b) Empty Containers though foreign flag vessels.  
ii) Notification dated 21.05.18 - relaxation has been granted under section 406 of the Merchant 
Shipping Act, 1958, for coastal movement of (a) EXIM Transhipment Containers and (b) Empty 
Containers by foreign vessels chartered by Indian citizen/company/society.  
iii) General Order No. 02 of 2018 dated 22.05.18 - relaxation has been granted under section 407 
of the Merchant Shipping Act, 1958, f or coastal movement of agriculture, horticulture, fisheries and 
animal husbandry commodities.  
iv) Notification dated 22.05.18 - relaxation has been granted under section 406 of the Merchant 
Shipping Act, 1958, for coastal movement of agriculture, horticul ture, fisheries and animal 
husbandry commodities.  
v) General Order No. 03 of 2018 - dated 22.06.122.06, under section 407 of the Merchant Shipping 
Act, 1958, relaxation has been granted for coastal movement of fertilizers.  WT/TPR/M/403/Add.1  
 
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  For further details including co nditions, following link may be referred:  
https://www.dgshipping.gov.in/Content/DGSCirculars.aspx?branchid=10  
Question 28: If this policy is open to foreign investment or foreign shipping enterprises, what are 
the restrictive conditions and what are the specific management measures or requirements?  
Reply: Foreign flag vessels may take the benefits of the relaxation as mentioned in reply to question 
no 27. No permission is n eeded. However, reporting as per format given under the above 
orders/notifications is required.  
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
Page 15  (para.  5.7) 
"The measures taken by the Government are aimed at opening new sectors for foreign direct 
investment, increasing the sectoral limit of existing sectors and simplifying other conditions of the 
FDI policy. To this extent, Government has done away with the erstwhile regulatory board, in order 
to simplify the approval process of foreign inve stment and to provide ease of doing business for the 
investors. Under the new regime, the process for granting FDI approvals has been simplified and 
the work relating to the processing of applications is now handled by the Ministries / Departments 
concerne d. This has been a major breakthrough in easing regulatory conditions and multiple 
processing by different ministries. " 
Question 29: Could India please introduce the achievements of this work?  
Reply: Decentralised processing of FDI proposals by the concern ed Administrative Ministries / 
Departments, and prescription of timelines for processing FDI proposals as per the Standard 
Operating Procedure, are some of the achievements of this action. FDI proposals are filed through 
an online single -window system thro ugh Foreign Investment Facilitation Portal at 
https://fifp.gov.in/ .  
Question 30: How do the government authorities of India promote the universal implementation of 
this work?  
Reply: A Standard Operating Procedure (SOP)  for processing FDI proposals has been issued on 
29.06.2017 (and revised on 09.11.2020) to ensure a consistency of treatment and uniformity of 
approach across sectors. The SOP for processing FDI proposals can be accessed on Foreign 
Investment Facilitation Portal at https://fifp.gov.in/Forms/SOP.pdf . 
Question 31: Is "simplifying the approval process of foreign investment and easing regulatory 
conditions " mentioned in this paragraph generally applicable to for eign investors? If not, which 
foreign investors does it not apply to? Could India please explain the purpose of such regulatory 
measures?  
Reply: The new regime for processing FDI proposals by concerned Administrative Ministries/ 
Departments as per the Standard Operating Procedure (SOP) is applicable to all proposals requiring 
Government approval as per the extant FDI Policy and FEMA Regulations.  
Question 32:  The new foreign investment policies adopted by India in 2020 have actually increased 
the difficu lties for Chinese enterprises to invest in India. Could India please explain whether the real 
situation is consistent with "easing regulatory conditions ", and elaborate on the methods and 
requirements of the "government route " in India 's foreign investment  policy, including concrete 
steps, required materials, time and costs, etc.?  
Reply: India allows FDI from all foreign countries.  The new measure taken in 2020 has only changed 
the approval procedure from automatic to government approval route. The Procedu re for processing 
applications seeking approval for Foreign Investment can be seen in the Standard Operating 
Procedure (SOP) dated 09.11.2020, issued by the Department for Promotion of Industry and Internal 
Trade (DPIIT), Government of India. This SOP can be accessed on Foreign Investment Facilitation 
Portal at https://fifp.gov.in/Forms/SOP.pdf.  WT/TPR/M/403/Add.1  
 
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  Page 16  (para.  5.8) 
"Reforms have been carried out across sectors such as Defence, Insurance, Pension, Other Financial 
Services, Asset reconstruction Companies, Bro adcasting, Pharmaceuticals, Single Brand Retail 
Trading, Construction and Development, Civil Aviation, Power Exchanges, e -commerce activities, 
Coal Mining, Contract Manufacturing, Digital Media etc. FDI up to 100% is now permitted under the 
automatic route  in most sectors/activities. " 
Question 33: As for the investment in the coal industry, could India please explain in detail what 
reforms have been carried out?  
Reply: Government has reviewed the Foreign Direct Investment (FDI) policy in the coal mining in 
September, 2019 allowing 100% FDI under automatic route in coal mining activities, including 
associated processing infrastructure, for sale of coal, subject to the provisions of Coal Mines (Special 
Provisions) Act, 2015 and the Mines and Minerals (Developm ent and Regulation) Act, 1957 and other 
relevant Acts on the subject. Associated processing infrastructure includes coal washery, coal 
handling and separation (magnetic and non ‐magnetic). Amendments have been made in the Coal 
Mines (Special Provisions) Act, 2015 to ensure wider participation and competition in auction of coal 
mines. Private companies which do not possess any prior coal mining experience in India can now 
participa te in auction of coal blocks. A Methodology for auction of coal and lignite mines / blocks for 
sale of coal / lignite on revenue sharing basis and tenure of coking coal linkage has also been issued 
in May 2020.  
PART  III. OTHER QUESTION S 
Question 34: What tax related measures have been adopted in India 's export incentives since 
2017? How have these measures been stipulated? Are there any policies and measures inconsistent  
with the rules of the WTO? Is there a ny reforming  plan in the future ? 
Reply: India's schemes for the export sector can be accessed from India 's Foreign Trade Policy 
2015-20. India 's policies and measures are consistent with its WTO obligations.  
Question 35: Please introduce the administration system and the division of mandate of India 's 
civil aviation industry.  
Reply: Ministry of Civil Aviation (MoCA), Government of India has following organizations under its 
administrative control: - 
Attached offices / organisations  
Directorate General of Civil Aviation (DGCA)  
Bureau of Civil Aviation Security (BCAS)  
Commission of Railway Safety (CRS)  
Aircraft Accident Investigation Bureau (AAIB)  
Autonomous Bodies  
Indira Gandhi Rashtriya Uran Akademi (IGRUA)  
Airports Economic Regulatory Authority (AERA)  
Rajiv Gandhi National Aviation University  (RGNAU)  
Public sector Undertakings  
Airports Authority of India (AAI)  
Air India Limited (AIL)  
Pawan Hans Limited (PHL)  
The MoCA formulates national policies and programmes for the development and regulation of the 
Civil Aviation sector. It administers the Aircraft Act, 1934, Aircraft Rules, 1937 and other legislations 
pertaining to the aviation sector in the country. This Ministry also provides guidance to the 
organizations in the implementation of policy guidelines, monitors and evaluates their activities and 
provides their interface with Parliament. It also supervises implementation of special programmes 
of the Government.  
Question 36: Please introduce the rules on the ownership and control of civil airports in India, as 
well as other laws and regulations regarding the airports  WT/TPR/M/403/Add.1  
 
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  Reply: Ownership and control of civil airports in India is governed by Aircraft Act, 1934, Airports 
Authority of India Act, 1994 and Airports Economic Regulatory Authority of India Act, 2008. Rules 
and Regulations in resp ect of Operations and Air Navigation Services are framed accordingly.  
Question 37: Please introduce the pricing policy and model applied in India for public air transport.  
Reply: Air fare is neither regulated nor established by the Government. Airlines are  free to fix the 
reasonable tariff under the provisions of Aircraft Rules, 1937. Airlines offer fares on various levels 
which are driven by demand and market forces.  The airlines remain compliant to the prevalent 
regulatory provisions, as long as fare char ged by them does not exceed the fare established and 
displayed on their website. DGCA has set up a Tariff Monitoring Unit to monitor air fares on certain 
randomly selected routes to ensure that the airlines do not charge air fares outside the declared 
range. 
Question 38: Please provide the regulation policy on flight time slot and the way and procedures 
of obtaining time slots.  
Reply: Slot allocation at airports is governed by MoCA 's guidelines.   Airlines file their slot request 
with AAI and other airport o perators.   After slot approval from airport operators, flight schedule is 
approved by DGCA.   
Question 39: Are there any market access restrictions on foreign investment in general aviation, 
aircraft maintenance, passenger/freight transport agent, air traff ic control, aviation fuel, reservation 
system, and other civil aviation services in India? Please introduce the legal basis for the 
administration and foreign investment access regulation of the above areas. Are there any 
restrictions and related legal bas is on the access to the civil aviation sector?  
Reply: India has a liberal FDI Policy for Civil Aviation Sector with FDI permitted up to 100% in 
airports, air transport services and other services under Civil Aviation sector subject to sectoral and 
other gu idelines, wherever applicable. Consolidated FDI policy circular may be referred at 
https://dipp.gov.in/sites/default/files/FDI -PolicyCircular -2020-29October2020_1.pdf for details. 
Further, Directorate General of Civil Aviation (DGCA), in accordance with ru le 133A of the Aircraft 
Rules, 1937, has laid down Civil Aviation Requirements (CAR) on air transport, aerodrome standards 
& licensing etc for safe aircraft operation and also issues Aeronautical Information Circulars (AICs) 
which are available on the offi cial website of DGCA, Government of India.  
  WT/TPR/M/403/Add.1  
 
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  PHILIPPINES  
QUESTIONS REGARDING THE SECRETARIAT REPORT  
Page 9  (para.  9) 
During the period under review, India implemented several measures to facilitate trade, such as a 
reduction in the number of documents required, and the automation of the customs clearance system 
for imports and exports. Other trade -facilitation initiatives introduced since 2015 include: the 
electronic interface, the Indian Customs Electronic Gateway (ICEGATE); the Single Window  Interface 
for Facilitation of Trade (SWIFT); the new authorised economic operators (AEO) programme; the 
Direct Port Delivery and the Direct Port Entry (DPE) facilities; and the increased use of the Risk 
Management System (RMS).  
Question 1:  How effective w ere these measures/initiatives in facilitating trade? How were 
adjustments in terms of implementing the measures addressed/managed?  
Reply:  The trade facilitative measures initiated by the Government have been instrumental in a 
drastic reduction of the tim e and costs of border and documentary compliances for exports and 
imports in the last few years and have been adequately reflected in the improvement in the country 's 
rank to 68 on the Trading Across Borders indicator in the World Bank 's Doing Business Rep ort 
released in 2019, a vast improvement from a rank of 126 in the Report released in 2014. According 
to the latest Doing Business Report, the time taken for clearance reduced from 267 hrs in 2017 to 
60 hrs in 2019.  
Page 12  (para.  29) 
The share of the manufacturing sector in India's GDP decreased from 16.3% in 2014/2015 to 15.1% 
in 2019/2020. Sectors that play an important role in merchandise trade include textiles and clothing, 
which accounts for 2% of GDP, and 11.4% of merchandise exports, and employs  around 45 million 
people; and automobiles, with around 7% of GDP, and 8.0% of merchandise exports. India has run 
a deficit in its balance of trade in manufactured goods during the review period, with growth in 
imports outstripping that of exports. India c ontinues to implement the National Manufacturing Policy 
(NMP) aimed at increasing the share of manufacturing in GDP to 25% by 2022. Provisions under the 
NMP include programmes to develop skills, facilitate financing for SMEs, increase demand for 
manufactur ing and infrastructure through government procurement. The Make in India programme 
was launched in 2014, to attract investment to achieve the 25% -of-GDP target by 2022.  
Question 2:  What measures were taken to address the trade balance deficit in manufactur ed goods? 
To date, how effective was the NMP in increasing the share of manufacturing in GDP?   
Reply: National Manufacturing Policy is based on the principle of industrial growth in partnership 
with the States. National Investment and Manufacturing Zones (NIMZs) are being established to 
achieve the objectives of the National Manufacturing Policy. The NIMZs are however still at 
planning/preliminary stage of development.  
Page 14  (para.  1.1) 
For most of the period under review (2015 -mid 2020), India's economy  continued its strong growth. 
Economic reforms were continued and were focused on increasing efficiency and inclusiveness. 
Measures to improve efficiency included a number of steps on trade and investment facilitation. 
Structural reforms were also undertak en. 
Question 3: Given the downside risks to the growth outlook due to the COVID -19 pandemic, what 
are the planned measures of India to achieve economic recovery in 2021?  
Reply: India has undertaken a judicious mix of macro -economic policies and multi -sectoral 
structural reforms to combat the adverse impact of the pandemic. The Indian economy is expected 
to recover and grow at 8.8 % in 2021 as per IMF.  WT/TPR/M/403/Add.1  
 
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  Page 20  (para.  1.10)  
India does not systematically collect data on employment. However, it would appear that the rate 
of unemployment grew from 3.7% in 2015/16 to 6.1% in 2017/18, with urban unemployment at 
7.8% and rural unemployment at 5.3%. The largest share of the workforce is employed in 
agriculture: officially, 42.7% in 2017/18, although informa l employment is higher.  
Question 4: What were the reasons for increase in unemployment from 15/16% to 17/18% and 
the measures taken to reduce rate of unemployment? As data is important in coming up and 
implementing appropriate policy actions, are their fut ure plans for the government to implement a 
systematic approach in collecting data on unemployment so as to address related issues?  
Reply:  These data sets are not comparable as they emanate from different survey methodology, 
different sets of data and data  collection mechanism and sample selection. Earlier, Labour Bureau 
under Ministry of Labour and Employment conducted Labour Force surveys of employment and 
unemployment annually. However, with a view to measure change in the labour market on more 
frequent basis National Statistics Office (NSO) under Ministry of Statistics and Programme 
Implementation began a new annual regular Employment -Unemployment survey namely Periodic 
Labour Force Survey (PLFS) w.e.f. 2017 -18. Both the figures are thus not comparable. The PLFS, 
which has been launched considering the importance of availability of labour force data at more 
frequent time intervals, has primarily twofold objectives:  
i) to estimate the key employment and unemployment indicators (viz. Worker Population 
Ratio, Labour Force Participation Rate, Unemployment Rate) in the short time interval 
of three months for the urban areas only in the Current Weekly Status (CWS); and  
ii) to estimate employment and unemployment indicators in both usual status and CWS, 
for both rural and urban areas annually.  
Page 20  (para.  1.13)  
Given India's continued need for better infrastructure, subsidies will need to be reduced and better 
targeted to free up resources for investment. In December 2019, India announced 
INR 102,000  billion ( around USD 1,400 billion) for a "national infrastructure pipeline". Almost 80% 
of its financing will be provided by the central and state governments (with equal shares), with the 
remainder to be provided by the private sector. Projects worth INR 42.7 bill ion (42% of the total) 
are already under implementation, projects worth INR 32.7 billion (32%) are in the conceptualization 
stage, and the rest are under development. It is expected other projects will be added.  
Question 5: How has implementation been of t he national infrastructure pipeline? Please cite 
projects completed, being implemented and those in the pipeline.  
Reply: NIP is a dynamic program. It was launched with 6,835 projects; the project pipeline has now 
been expanded to nearly 7,400 projects. So  far, around 215 projects worth approx. USD 14.66 billion 
under key infrastructure ministries have been completed. Around 663 projects worth approx. 
USD 72.88 billion have also progressed from the concept stage to development stage and from the 
development stage to the implementation stage. In addition, 176 investment ready projects with 
Total Project Cost (TPC) more than approx. USD 41.1 billion including 42 PPP projects with TPC of 
approx. USD 9.04 billion, across 9 Ministries are ready to be b id out by March 2021.  
Page 20  (para.  1.14)  
India's fiscal policy is conducted in the framework of the Fiscal Responsibility and Management 
(FRBM) Act, 2003, which called for the reduction and elimination of the revenue deficit by 
31 March  2009. The Act was  amended several times, most recently in March 2018. The 2018 
amendment followed recommendations by the FRBM Review Committee Report, issued in 
January  2017 (Box 1.2). The amendment called for a reduction of the fiscal deficit to 3% of GDP by 
31 March 2021  (fiscal year 2020/21), and for the central Government to endeavor to contain general 
government debt to 60% of GDP, of which the central government debt to 40%, by the end of 
financial year 2024/25. The Fiscal Council, also recommended by the Committee, h as not yet been 
established.  WT/TPR/M/403/Add.1  
 
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  Question 6: Please state the Government 's initiatives in order to reduce the fiscal deficit to 3% of 
GDP by 31 March 2021.  
Reply: The Government has provided fiscal support to mitigate the fallout of COVID -19 crisis and 
enable revival of the economy. The Government may continue to maintain a fiscal impulse, if 
necessary, keeping in mind a sustainable medium -term fiscal path.  
Page 24  (para.  1.23)  
Despite a decline in the repo rate, there has been concern that monetary transmission by banks has 
been staggered and incomplete. Following the introduction of an external benchmark system for all 
new floating rate personal loans and loans to micro and sma ll enterprises (MSEs) by the RBI in 
October 2019, most banks linked their lending rates for such loans to the RBI's repo rate. There are 
early indications of an improvement in transmission to new rupee loans to the housing, automotive 
and MSE sectors. The authorities noted that weighted average lending rates on existing and new 
loans declined. In February 2020, loans to medium -sized enterprises were also linked to the external 
benchmark.  
Question 7: Having stated (in para. 1.21) that RBI 's operating target  is the weighted average call 
rate (WACR), which is the rate at which banks lend to each other, is RBI comfortable that lending 
rates for personal loans and MSEs have been anchored to the policy rate? Does this imply that WACR 
is lower than the policy repo  rate?  
Reply: Effective 1 October 2019, the RBI mandated linking of interest rates charged on new floating 
rate loans to personal / retail (housing, vehicle, education, etc.) sectors and to Micro and Small 
Enterprises extended by banks to an external benc hmark, viz., the policy repo rate, 3 -month, 
6-month T -bill rates or any other benchmark published by Financial Benchmark India Pvt. Ltd. 
(FBIL). Banks are permitted to charge 'spread ' over the benchmark rate. The spread comprises 
costs, including operating  costs, credit risks to individual borrowers, etc. Thus, the lending rate 
charged to the borrower comprises the benchmark rate and the spread.  The Weighted Average Call 
Rate (WACR) is the operating target of monetary policy in India.   The operating framewo rk of 
monetary policy envisages liquidity management on a day -to-day basis to anchor WACR around the 
policy repo rate.    In view of the COVID -19 pandemic and its adverse impact on real economic 
activity, liquidity management operations by the RBI were guid ed by the need to expand liquidity in 
the system sizeably to ensure that financial markets and institutions function normally in the face of 
COVID -19 related dislocations, consistent with the monetary policy stance. Reflecting these 
measures, systemic liqu idity has remained in abundance during 2020 -21 so far and the WACR has 
ruled below the policy rate, but within the interest rate corridor.  The WACR, being higher or lower 
than the policy rate at the time of determination of the lending rate may or may not influence the 
determination of the spread.  
Question 8:  Given RBI 's assessment that monetary transmission by banks remains incomplete, are 
there any future refinements to the implementation of monetary policy such as introduction of new 
monetary tools and w hat is RBI 's timeline for these?  
Reply: There has been an improvement in transmission following the linking of select sectors to the 
RBI prescribed external benchmark. Effective 1 April 2020, loans to medium enterprises were also 
linked to external benchmarks viz., the policy repo rate, 3 -month, 6 -month T -bill rates or any other 
benchmark published by Financial Benchmark India Pvt. Ltd. (FBIL). The RBI continues to monitor 
transmission to banks ' lending rates.  
Page 24  (para.  1.25)  
After gradually improving between 2014/15 and 2016/17, India's current account deficit widened to 
2.1% of GDP in 2018/19. In 2019/20, the deficit fell to 0.8%, due to a narrowing merchandise trade 
deficit, as the decline in imports outstripped that of exports du ring this period. The services balance 
continues to be positive, as it was throughout the review period. The current account deficit reflects 
the difference between gross domestic savings and investment in the country. While savings 
continued to grow since  the last Review, they did not keep pace with investment. The current account 
deficit was financed through capital inflows, primarily in the form of foreign direct and portfolio 
investment. While gross FDI to India increased gradually since 2014/15, higher  repatriation by WT/TPR/M/403/Add.1  
 
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  foreign investors led to a decline in net FDI between 2015/16 and 2017/18; net FDI inflows improved 
during 2018/19 and 2019/20. Portfolio investment, which remains volatile and susceptible to global 
developments, has increased since 2016 -17. Recent reductions in foreign investment restrictions, 
and the reduction in corporate rate of tax in 2019, may help to attract more FDI.  
Question 9: How has the COVID -19 pandemic affected India 's external sector so far? Being largely 
driven by computer, information, and communications services, how has India 's services exports 
fared amid the pandemic? What role do you think will the services sector play in regional production 
networks in the post -pandemic world?  
Reply: India's Export trend during COVID -19 (Month -wise)   
 
(Values in USD (billion) ) 
Month  Merchandise 
Export of 
India  Exports growth as 
compared to same 
month in 2019 (%)  Service Exports  Services Exports 
growth as 
compared to same 
month in 2019 (%)  
April-20 10.16  -60.98  16.45  -8.92 
May-20 19.23  -35.57  16.77  -10.24  
June-20 22.01  -12.06  17.00  -8.39 
July-20 23.74  -9.50 17.03  -10.76  
August -20 22.82  -12.22  16.44  -9.88 
September -20 27.57  5.96 17.29  -1.43 
October -20 24.94  -4.93 16.58  -6.30 
November -20 23.51  -8.78 16.45*  -8.59 
Apr-Nov 2020 (P)  173.98  -17.61  130.60*  -8.52 
P: Provisional . 
*Source:  DGCIS & RBI . 
Question 10: Has the year -to-date depreciating trend of the rupee supported the country 's export 
growth?  
Reply: Year to date -Exchange Rate (per unit of USD) and export growth  
Month  Exchange rate (Rupee per unit of USD)  Merchandise Export Growth (%)  
January -2020  71.3138  -2.11 
February -2020  71.4885  3.26 
March -2020  74.3507  -34.32  
April -2020  76.2365  -60.98  
May-2020  75.6599  -35.57  
June -2020  75.7268  -12.06  
July-2020  74.9934  -9.50 
August -2020  74.6719  -12.22  
September -2020  73.4817  5.96 
October -2020  73.4581  -4.93 
November -2020  74.2198  -8.78 
April -Nov-2020  74.8060  -17.61  
Source:  DGCIS & RBI . 
Page 30  (para.  1.32)  
As in previous years, Mauritius remains one of the largest investors in India, although it was 
overtaken by Singapore in recent years. FDI from Mauritius grew to 36% of total FDI in 2016/17; 
however, it has since decreased. This may partly be explained by a revision to the India -Mauritius 
tax treaty in 201 6, which removed the exemption on capital gains tax for FDI from Mauritius. 
Following a revised double taxation avoidance agreement with Singapore, which entered into force 
in April 2017, and a new regulation discouraging foreign companies from setting up overseas entities 
to avoid Indian taxes by denying them local tax benefits, investment increased from Singapore and 
decreased from Mauritius. Other important sources of FDI include the Netherlands, Japan and the 
United States.  WT/TPR/M/403/Add.1  
 
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  Question 11: How did the decrease in Mauritius ' investments affected India in in terms of 
employment, taxation, and other economic output? Does India have bilateral tax treaties with the 
Netherlands, Japan, and the United States? What relevant provisions in these tax treaties woul d 
encourage entry of foreign direct investments?    
Reply: The articles on dividend, interest and capital gains of India -Mauritius DTAC have been 
amended with effect from 1st  April 2017. The amendment, inter alia, provided taxation rights to 
India in respe ct of capital gains arising  to a Mauritius tax resident  on account of alienation of shares 
acquired on or after 1st  April 2017  in an Indian company.  Further, taxation of income arising out of 
investments from Mauritius is dependent upon a variety of factor s such as the nature of investment, 
resultant income, beneficial ownership, etc. India receives investments from Mauritius, which are 
generally in the nature of share capital, debentures, loans, etc. yielding income in the form of 
interest, dividends, capi tal gains, etc. Each category of income has different treatment in accordance 
with relevant provisions of India -Mauritius DTAA when it comes to taxation rights of the Source State 
or Resident State, the tax rate to be applied, etc.  In view of the above, it  doesn't appear feasible to 
quantify the impact of decrease in investments from Mauritius, if any, on direct taxes. Yes, India 
has bilateral tax treaties with the Netherlands, Japan, and the United States.  The main purpose and 
objective of the provisions e nshrined in the Double Taxation Avoidance Agreements (DTAAs)/tax 
treaties with above mentioned countries is to promote economic trade and investment between the 
treaty partners by avoiding instances of double taxation.  
Page 5  (para.  2.1) 
The nominal GDP o f the country has increased from USD 2 trillion in 2014 -15 to USD 2.7 trillion in 
2018-19. The real GDP is estimated to have grown at the rate of 7% and 6.1% in 2017 -18 and 
2018-19 respectively. Though the growth rate for the year 2019 -20 was initially est imated at 5%, 
on account of COVID -19, this is likely to be at around 4.2%. On the demand side of GDP, the 
percentage change in government consumption expenditure and private consumption expenditure 
is estimated at 11.8% and 5.3% respectively in 2019 -20. 
Question 12: The IMF, in its October 2020 World Economic Outlook (WEO), projects India 's 
economy to contract by 10.3 % in 2020, followed by a positive 8.8 % growth in 2021. What is the 
Government 's expectation for the real GDP growth in 2020 and 2021?  
Reply: As per advance estimates the Indian economy is estimated to contract by ( -)7.7% in 
FY 2020-21. The Government agrees with the projections by IMF.  
Question 13: Which sectors/industries are expected to drive the rebound in GDP growth in the next 
two y ears?  
Reply: Industry and Services have shown a sharp recovery in second half of the year 2020 -21. With 
the initiation of the vaccination program, Industry and Services sectors are expected to sustain the 
momentum.  
Question 14: Do overseas workers ' remitta nces contribute significantly to economy? How much 
impact are you seeing from the expected drop in remittances due to the pandemic on the external 
balance and more broadly on India 's economy?  
Reply: As per the World Migration Report 2020, India has the lar gest number of migrants living 
abroad (17.5 million) and was the top recipient of remittances of USD 83.3 billion in 2019. However, 
as per World Bank, remittance flows to low - and middle -income countries (LMICs) are estimated to 
decline in 2020, by around 7.2%. This decline is not expected to have an adverse impact on the 
current account balance as services exports have remained robust.  
Page 6  (para.  2.5) 
India has been experiencing moderation in inflation in the past few years. Retail inflation has 
decreas ed from 4.9% in 2015 -16 (based on Consumer Price Index -Combined New series) to 3.4% 
in 2018 -19 (Consumer Price Index -Combined). The high inflation was brought under control 
primarily due to the significant reduction in food inflation. The decline in crude oil prices and the 
introduction of a monetary policy framework for inflation targeting since August 2016 are some of WT/TPR/M/403/Add.1  
 
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  the important factors that have kept the inflation under check. However, CPI has increased during 
the recent months and stood at 6.9% (prov isional) for July 2020 and 6.2% for June 2020 mainly 
due to an increase in food inflation.  
Question 15: What is RBI 's outlook given recent upticks in food inflation amid the pandemic; would 
there be additional monetary measures to further provide support to the economy?  
Reply: The December 2020 resolution of the Monetary Policy Committee (MPC) projected CPI 
inflation at 6.8 % for Q3:2020 -21, 5.8 % for Q4:2020 -21; and 5.2 % to 4.6 % in H1:2021 -22 with 
risks broadly balanced. The MPC also noted that inflation is likely to remain elevated, barring 
transient relief in the winter months from prices of perishables, thereby constraining monetary policy 
from using the space available to act  in support of growth. The MPC accordingly decided to maintain 
status quo on the policy repo rate and to continue with the accommodative stance as long as 
necessary – at least during the current financial year and into the next financial year – to revive 
growth on a durable basis and mitigate the impact of COVID -19 on the economy, while ensuring 
that inflation remains within the target going forward.  
Page 34  (para.  2.16)  
2.16. To achieve these export targets, India uses incentives such as the Merchandise Ex port from 
India Scheme (MEIS), the Services Export from India Scheme (SEIS), and credit facilitation, to 
encourage exports. The objectives of the MEIS and the SEIS under the FTP is to offset infrastructural 
inefficiencies and associated costs of exporters (Section 3.2.5.). On 1 September 2020, the 
Government announced that it would withdraw the MEIS from 1 January 2021. The latest 
amendment to the FTP in 2017 incorporated changes resulting from India's ratification of the WTO 
Agreement on Trade Facilitation  (TFA), including a reduction in the number of documents required 
for export and import, the single window interface for facilitating trade (SWIFT), and the 
establishment of the National Committee on Trade Facilitation.  
Question 16: During the effectivity of the Merchandise Export from India Scheme (MEIS), were the 
incentives applicable and available to all exporters or only to investments which are registered in 
the Indian investment promotion agency? It was noted that for the Transport and Marketing 
Assistance (TMA) Scheme ( para. 3.138, Page 78), exporters which are duly registered with relevant 
Export Promotion Council as per Foreign Trade Policy, of eligible agriculture products shall be covered 
under this scheme.  
Reply: The incentives were available to all exporters. The registration under Registration cum 
Membership Certificate (RCMC) is a requirement under the provisions of para. 2.56 of the FTP, under 
which any entity applying for a benefit under FTP is required to have a RCMC from the concerned 
Expor t Promotion Council.  
Question 17: How did changes in the FTP resulting from India 's ratification of the TFA (reduction of 
documents, use of SWIFT) affected the trade environment? Please provide quantifiable outcomes 
resulting from said changes.  
Reply: During the five -year period under review (2015 -20), which also coincides with the period 
under India 's FTP 2015 -20, exports grew at a compound annual growth rate of 4.5%, while imports 
grew by 5.7%. Further, India 's share in global exports and impor ts registered a marginal increase 
from 1.6% & 2.4% in 2015 to 1.7% & 2.5%, respectively, in 2019, and total exports, inclusive of 
services, crossed half a trillion -dollar mark for the first time to reach a new high of USD 538.1 billion 
in 2018 -19. The incr ease in India 's import and export are pointers to the impact of Trade Facilitative 
measures undertaken by the country since past decade, with pro -active implementation of 
commitments under the TFA being an added push factor.  These trade facilitative measu res have 
been instrumental in a drastic reduction of the time and costs of border and documentary 
compliances for exports and imports in the last few years and have been adequately reflected in the 
improvement in the country 's rank to 68 on the Trading Acr oss Borders indicator in the World Bank 's 
Doing Business Report released in 2019, a vast improvement from a rank of 126 in the Report 
released in 2014.  WT/TPR/M/403/Add.1  
 
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  Page 35  (para.  2.18)  
As a founding Member of the WTO, India provides most -favoured nation (MFN) treatmen t to all WTO 
Members (and other trading partners that are not WTO Members), except Pakistan, for which it 
withdrew MFN treatment on 15 February 2019. Under the notification issued by the Ministry of 
Finance, imports of all products from Pakistan are subjec t to duties of 200% since 16 February 2019. 
India accepted the Fourth and Fifth WTO Services Protocols. It is a Party to the WTO Information 
Technology Agreement (ITA) but has not joined the expanded ITA. India is also an observer to the 
WTO Agreement on G overnment Procurement (GPA) since February 2010. India's trade policies have 
been reviewed six times, most recently in June 2015.  
Question 18: What has been the impact of India not joining the expanded ITA on the IT industry 
and on India 's trade on ITA pro ducts? Are there plans to join the expanded ITA in the future?  
Reply: Electronics industry has grown by 23% CAGR in 2014 -15 to 2019 -20. Exports have grown 
y-o-y by 38% in 2018 -19 to 2019 -20. As of now, India has no plans to join the expanded ITA.  
Page 38  (para.  2.25)  
(….) Negotiations with a number of other trading partners continue, including Australia, Bangladesh, 
Canada, EU, EFTA, GCC, Indonesia, Iran, Israel, Mauritius, New Zealand, Peru and SACU, as well as 
the BIMSTEC).  
Question 19: How does India prioritize the countries it engages in FTA negotiations? What has been 
the impact of earlier FTAs concluded and implemented on India 's overall trade and investments 
regime?  
Reply: Prioriti zation of the Countries for FTA negotiations depends upon the  complementarities with 
the Indian economy as well scope for increase in trade and investment. India views FTAs as "building 
blocks" towards achieving the overall objective of trade liberalization/harmoni zation of Tariffs and 
Non-tariff Measures. Experienc es from existing FTAs are also factored in while making future 
strategy on trade and investment.  
Question 20: What has been the impact on trade of the US ' termination of GSP preferences? Has 
India taken the necessary steps to meet the GSP criterion for the  country to be a US GSP beneficiary 
again? What actions have been taken to date to once again comply with the GSP market access 
criterion and what products are being considered to be requested under the scheme?  
Reply: It may be noted that GSP benefits are envisaged to be non -reciprocal and non -discriminatory 
benefits extended by developed countries to developing countries. The impact of withdrawal of the 
US GSP preferences will vary across products, depending on the individual product concessions 
constituti ng the average duty concession of 3.8% on India 's exports to the US in 2018 availing GSP 
benefits and other factors specific to each product. Trade related issues including the US GSP scheme 
are a part of any ongoing economic relationship and will continue  to be discussed and addressed as 
part of the regular bilateral trade engagement between India and the US.  
Page 38  (para.  2.28)  
Bilateral investment promotion and protection agreements are currently in force with 10 countries 
and regions (72 at the time o f the last Review). India also signed bilateral investment treaties with 
3 countries (at the time of the last Review, 14 had been signed but were not in force)  
Question 21: What were the reasons for non -enforcement of signed bilateral investment treaties? 
What are the salient features of India 's bilateral investment treaties? Are there non -negotiable 
provisions? What are the 10 countries and region which have investment promotion and protection 
agreements with India? How does India prioritize the countries they engage with in terms of 
investment agreements?  
Reply: India has not defaulted on enforcing the Bilateral Investment Treaties.  Those agreements 
that have been terminated; investments remain protected as per the terms of the termination clause 
in the s unset period. The Bilateral Investment Treaties that were signed prior to 2015, were put on WT/TPR/M/403/Add.1  
 
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  hold due to India reviewing its BIT regime and coming out with the revised Model BIT text in 2015. 
Subsequently, India is engaged in renegotiations of such agreements with its partner countries. The 
following are the salient features and objectives for India in its BIT negotiations taking into account 
the interests of countries and the socio -economic changes and global developments in the area of 
foreign inve stment - 
a. to promote bilateral cooperation between States with respect to foreign investments;  
b. to recognize that the protection of foreign investments will be conducive to the 
stimulation of mutually beneficial business activity, to the development of  economic 
cooperation between States and to the promotion of sustainable development,  
c. to reaffirm the State 's right to regulate foreign investments in their territory in 
accordance with their law and policy objectives.  
India uses the Model BIT 2015 as t he starting point and as the base text for its negotiations and has 
signed Bilateral Investment Treaties with Belarus, Kyrgyzstan, and Brazil, along with Bilateral 
Investment Agreement between India Taipei Association (ITA) and Taipei Economic and Culture 
Center (TECC), as per the Model BIT. Further information on the BIPA Agreements in force and those 
that have been terminated can be accessed in the Department of Economic Affairs, Government of 
India website at https://dea.gov.in/bipa . Besides BIPA Agreements with individual nations, India 
also has currently in force some of the agreement with a region and also CECA/CEPAs with 
Investment protection.  
Page 40  (para.  2.34)  
India has continued to gradually open up sector s to FDI; sectors in which FDI is prohibited are listed 
in Table 2.6. Other sectors were opened up, with varying limits of foreign equity. Currently, 
government approval is required for investment in 11 sectors: mining, defence (for FDI in small 
arms manuf acture), broadcasting and print media, civil aviation, satellites, telecommunications, 
private security agencies, trading (multi -brand and food), financial services not regulated or 
regulated by more than one regulator, and pharmaceuticals (Table A2.1).  
Question 22: What are the requirements for government approval of investments in the 11 sectors 
mentioned above?  
Reply: India has a liberal FDI Policy, wherein most of the sectors, FDI is permitted up to 100% 
under automatic route, subject to sectoral guidelines and regulations, barring few which are under 
government route. Sectors under Government approval are mentioned in India 's FDI Policy, which 
is available on the official website of the Department for Promotion of Industry and Internal Tr ade 
i.e. https://www.dipp.nic.in . Further, t he SOP for processing FDI proposals can be accessed on 
Foreign Investment Facilitation Portal at https://fifp.gov.in/Forms /SOP.pdf . 
Page 40  (para.  2.35)  
Key changes since the previous Review include permitting up to 100% foreign -equity ownership in 
a larger number of agricultural activities through the automatic route; automatic FDI of up to 100% 
in the defence industry, broa dcasting carriage services, and telecommunications services and in 
business -to-business electronic commerce activities; up to 100% FDI through the automatic route 
for insurance intermediaries and up to 49% in insurance companies 28; and FDI of up to 100% 
through the automatic route for airports, other air services, and non -scheduled air transport 
services, and up to 49% in scheduled air transport services.29 With regard to single brand retail, 
the requirement for 30% of inputs to be sourced locally by retai lers whose foreign -equity ownership 
was 51% and over was eased.  
Question 23: How has the opening up of a number of agricultural activities impacted the agriculture 
sector and other related industries?  
Reply: The investments through FDI route are being uti lized for activities including development 
and production of seed and planting material, horticulture and nursery services, agriculture 
machinery, plant protection services, cattle breeding and livestock rearing, cold storage and 
warehousing.  WT/TPR/M/403/Add.1  
 
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  Page 41  (para.  2.39)  
To encourage FDI, the central and state governments provide several incentives. In addition to SEZs 
and export -oriented units (EOUs), which continue to operate, India introduced the Make in India 
scheme in September 2014, which targets investment in 25 sectors of the economy. The National 
Investment and Manufacturing Zones (NIMZs), as part of the National Manufacturing Policy, provide 
incentives for infrastructure development on a public private partnership (PPP) basis (Section 4).  
Quest ion 24: What were the achievements made under the Make in India scheme in terms of 
targeting investments in selected sectors of the economy? What were the best practices from the 
scheme that other countries can learn from?  
Reply: 'Make in India' was launc hed on 25 September 2014, to facilitate investment, foster 
innovation, building best in class infrastructure, and making India a hub for manufacturing, design, 
and innovation. Ministry of Commerce & Industry is the main coordinating Ministry in the 
Governm ent for this initiative. Investment outreach is being done through Ministries, State 
Governments and Indian Missions abroad, while Identification of potential investors, and their 
handholding/facilitation is done through Invest India. Recently, Government has taken various steps 
in addition to ongoing schemes to boost domestic investments in India. These include the National 
Infrastructure Pipeline, Reduction in Corporate Tax, easing liquidity problems of NBFCs and Banks, 
etc. An Empowered Group of Secretar ies to the Government of India, led by the Cabinet Secretary, 
has also been constituted to take decisions on cross cutting policy issues for facilitating and speeding 
up domestic and foreign investment. Simultaneously, Project Development Cells (PDC) for t he 
development of investible projects have also been created in the different administrative ministries 
for expedited coordination between the Central Government and State Governments. These steps 
reinforce Government 's commitment towards promoting India a s a favourable investment 
destination across the globe, along with improving ease of doing business for the investors.  
Page 46  (para.  3.19)  
Self-assessment of customs duty by importers (or exporters) was introduced in 2011 (Finance Act, 
2011). This system is based on trust. The objective is to expedite the release of imported (exported) 
goods. Importers pay duty/tax/cess on the date of presentation of the self -assessed bill of entry. 
The declared value may be rejected if there is reason to doubt its accurac y. In this case, the importer 
may need to furnish further information. At the request of the importer, Customs should inform 
him/her, in writing, of the grounds for doubting the accuracy of the declared value. Thereafter, the 
importer is given a reasonable  opportunity to be heard, before a final decision is taken. The importer 
and/or his agent can appeal a decision regarding valuation to the Commissioner (Appeal) in the first 
instance. A second course of appeal lies with the Customs Excise and Service Tax A ppellate Tribunal. 
An appeal against a decision made by the Tribunal can only be made to the Supreme Court (Customs 
Act, 1962). Importers are informed of their right to appeal by the adjudicating and appellate 
authorities, in writing.  
Question 25: What are  the challenges and issues posed by the system of self -assessment of 
customs duty by importers and exporters? How were these challenges or issues 
addressed/managed?  
Reply: With effect from 8 April 2011, Self -Assessment has become the norm of assessment of 
Customs duty in respect of imported / export goods.  Indian Customs had published Self -Assessment 
Manual to guide the Importers / exporters who are unable to do the Self -Assessment because of any 
complexity, lack of clarity, lack of information etc. Furthe r, Government has also organized series of 
Outreach Programmes and trainings to importers/exporters, along with providing material/guidance 
to those who find it difficult to opt for self -assessment. In addition, dedicated Helpdesks were also 
created at eve ry Customs Location to assist the trade for facilitating their smooth transition to the 
self-assessment system as well as to address their grievances and invite suggestions for 
improvement.  
Page 48  (para.  3.27)  
In 2020/21 , the average protection for both a gricultural and non -agricultural products increased. 
Average applied tariff for agricultural goods increased from 34.8% to 36.5%, mainly due to the WT/TPR/M/403/Add.1  
 
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  increase in the tariffs of oil seeds, fats, oil, and their products which increased from 26.7% to 35.1%, 
and that accorded to sugars and confectionary that increased from 35.4% to 47.0%. In the case of 
non-agricultural products, the average tariff increased slightly from 10.8% to 11.1%, mainly as a 
result of the increase of duties levied on leather, rubber, foot wear and travel goods from 12.8% to 
15.4%.  
Question 26: What other factors/considerations brought about the increase in tariffs for most 
products? How has India managed to achieve a level of substantially all trade in its FTAs?  
Reply: Applied rates of cu stoms duty in India are prescribed keeping in view the overall economic 
and other policy objectives which include enhancing domestic value addition, creating level playing 
field, ensuring availability of raw materials at competitive prices, securing econom ic interests of the 
country, ensuring supply of essential items at affordable prices etc and taking into account the 
international commitments such as that of WTO. India 's FTAs are based on various factors including 
the trade -off of export interest and reciprocal access to trading partner, domestic sensitivity for 
stakeholders and overall ambition in other areas of negotiations.  
Page 52  (para.  3.40)  
Since the last Review, one of the major changes regarding other duties and charges affecting imports 
was t he replacement (in most cases) of the additional (or countervailing) duty (AD), applied in place 
of excise duties (the Central Value Added Tax (CENVAT)) on imports, and the special additional duty 
(SAD), to offset state and local taxes, by the Goods and Se rvices Tax (GST), introduced in 2017.  
Question 27: How did the additional charges/taxes affect the competitiveness of imported products 
in the domestic market?  
Reply: Additional Duty (AD) and Special Additional Duty (SAD), now replaced by Goods and Service s 
Tax ( GST), are equally applicable on both imported and domestic products and as such, have no 
impact on competitiveness of imported products in the domestic market. These are in the nature of 
equalizing duties so as to ensure that imported goods suffer t he same level of domestic duties that 
indigenous goods suffer.  
Page 73  (para.  3.110)  
Export restrictions and prohibitions are notified on an annual basis; they are usually in place for a 
specific period. However, as with other trade policy instruments, dur ing this period, the DGFT, 
through a notification, may change the policy to meet specific policy objectives (e.g. self -sufficiency 
or containment of domestic prices). India continues to use trade policy to meet non -trade policy 
objectives, changing policie s constantly, thus diminishing the predictability of the trade policy 
regime. In addition, the use of export restrictions and prohibitions seems to be in contradiction with 
India's main trade policy goal, which is to increase its share of global exports fr om 2.0% in 2015 to 
3.5% by 2020 (Section 2.2.2).  
Question 28: Can India comment on the italicized statement above?  
Reply: The export  policy interventions are usually done to liberalize the exports further and 
restrictions or prohibitions on export items ar e imposed in rare circumstances. Extensive 
deliberations and well laid out policy modalities ensure such changes are transparent and rational, 
thereby providing a stable and predictable policy environment.  
Page 73  (para.  3.114)  
3.114 During the period under review, India did not provide a notification regarding export subsidies 
for agriculture goods.  
Question 29: What is the status of the pending notifications on export subsidies for agriculture 
goods? What export subsidies are applied to its agr icultural exports?  
Reply: India will notify its Export Subsidies (ES:1) notification in due course  WT/TPR/M/403/Add.1  
 
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  Page 81  (para.  3.147)  
Indigenous urea is subsidized under the Fertilizer New Pricing Scheme (NPS) and the Uniform Freight 
Policy (UFP) (a freight subsidy). These schemes are intended to make fertilizers available to farmers 
at reasonable prices, and to grant producers a reasonable return. The maximum retail price (MRP) 
of urea is statutorily fixed. In 2019/20, the MRP of a 45 kg bag of urea was INR 242, and the MRP 
of a 50 kg bag was INR 268 (excluding taxes, levies and charges towards neem coating). The 
difference between the cost of fertilizers at the farm gate and the MRP paid by the farmer is a subsidy 
given to the fertilizer manufacturer/importe r. Under the UFP, a subsidy is granted to urea 
producers/importers to cover the freight costs from plants/ports to the districts where it is to be 
used, to ensure that fertilizers are available across India.  
Question 30: Are all producers and importers qua lified to avail of the subsidy? What are the 
qualifications in order to be granted the subsidies under the NPS and UFP schemes?  
Reply: All domestic producers producing Fertilizer Grade Neem Coated Urea are qualified to avail 
subsidy. Subsidy is provided on  imported Urea also.  
Page 82  (para.  3.150)  
Subsidies for irrigation and electricity for low -income or resource -poor producers are still provided 
(Section 4.1).  
Question 31: How are the low -income or resource -poor producers identified for the availment of 
subsidies?  
Reply: India has defined in the Agriculture Supporting Table (AGST) low income or resource poor 
farmers as those having less than 10 hectares of land. As per Agriculture Census 2015 -16, the 
average size holding in India is 1.08 hectare and about  99.43% of Indian farmers are low -income 
or resource -poor. 
Page 92  (para.  3.199)   
In general, the Competition Act applies to all economic operators (public or private, Indian and 
foreign) and to all sectors.  
Question 32: Are there specific provisions that cater to the needs of MSMEs in the Competition Act? 
What are these provisions and how are they implemented vis -à-vis larger enterprises?  
Reply: Though, there are no specific provisions catering to the needs of MSMEs in the [Indian] 
Competit ion Act, 2002, the framework of the Act is robust and flexible enough to consider the factors 
relatable to this segment in competition assessment.  
Page 110  (para.  3.263)  
India encourages innovation by promoting IP generation by start -ups, MSMEs, and "less visible and 
silent IP generators " such as farmers.  
Question 33: Please provide innovation related initiatives of start -ups, MSMEs and less visible and 
silent IP generators resulting from various amendments in IP laws.  
Reply: A major focus of awareness pr ograms in industry has been towards Micro, Small, and Medium 
Enterprises (MSMEs) and start -ups. This awareness drive includes both short -term and long -term 
programmes. A number of long term, intensive IPR trainings for officials of MSME department have 
been organi zed to enable them to provide IPR related services to MSMEs. Additionally, about 176  IPR 
short-term awareness workshops have been conducted for various state MSME clusters in India. 
Similarly, for start -ups and entrepreneurs, 80 awareness programme s have been conducted wherein 
they were made aware about  IPRs, IP commercialization and IP strategy for businesses. These have 
been conducted in association with industry chambers, universities and have been majorly facilitated 
through the Technology and I nnovation Support Centres (TISCs) established in India.  WT/TPR/M/403/Add.1  
 
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  Page 116  (para.  4.4) 
Frequent interventions are made, when necessary, including through import and export restrictions, 
and to ensure stability in supply and prices in the domestic market. Most recent ly, following a heavy 
monsoon, India banned exports of onions, to ensure sufficient domestic supplies and stabilize 
domestic prices. The Agricultural Export Policy suggested that such frequent changes "break export 
supply chains and affect India's image as  a reliable supplier", and recommended that, apart from a 
few products that are essential for food security, export restrictions should not be used for processed 
agricultural products and organic products. To ensure stable domestic production, input subsid ies 
and price support are also provided.  
Question 34: How does the government ensure that businesses (both domestic and foreign -owned) 
thrive despite the uncertainty brought about by interventions such as import and export restrictions?  
Reply: Export/impor t of most agricultural products is free and India has maintained a stable trade 
policy for agricultural products. Export/import interventions, whenever made, are temporary in 
nature.  
Page 116  (para.  4.9) 
Restrictions are also used to regulate imports, including of agricultural products. For instance, the 
Government recently prohibited the import of cashew nut kernels, after having subjected imports to 
minimum import prices. To protect the livelihood of farmers from cheap imports, quantitative 
restrictions on imports of peas of up to a 100,000 tonnes per year were imposed in April 2015, 
initially for three months, and then extended three times. On 28 March 2020, quantitative 
restrictions on imports of peas were announced, of up to 150,000 tonnes (for green peas and other 
peas) and 400,000 tonnes (for pigeon peas) for 2020/21.  
Question 35: What is the extent of notifications made to the WTO on export and import restrictions?  
Reply: India's Quantitative Restrictions (QR) WTO notifications are update d till the period 2020. 
India is finali zing its further notification on QR and will notify the same to WTO shortly.  
Page 121  (para.  4.26)  
4.26 In September 2018, the Government launched an umbrella scheme, the Pradhan Mantri 
Annadata Aay Sanrakshan Abhiyan (PM -AASHA), which is aimed at protecting farmer incomes 
through the Price Support Scheme (PSS) for pulses, oilseeds and copra and, throug h either the PSS 
or a "price deficiency payment " (under the Price Deficiency Payment System), for all oilseeds for 
which MSPs are notified. The price deficiency payment ensures that, if the market price falls below 
the MSP, the difference is paid directly to pre -registered farmers that sell their produce on the 
notified market. This ensures that the procurement agencies do not need to intervene when the 
market price falls below the MSP, thereby reducing the Government 's subsidy bill as well as the cost 
of storage. Procurement under the PSS is for a maximum of 90 days in the implementing states or 
union territories (UTs). The Pilot of Private Procurement and Stockist Scheme (PPPS) under the 
PM-AASHA scheme, allows participation by the private sector in stocking oilseeds. The selected 
private agency shall procure the commodity at the MSP in the notified markets during the notified 
period from the registered farmers, whenever prices in the market fall below the notified MSP and 
whenever authorized by the s tate or UT government to enter the market. The maximum service 
charge to be paid to the private agency, which is selected on the basis of criteria including its track 
record, corporate governance, management of agricultural products and targeted investment  in the 
sector, is 15% of the MSP. No state is implementing the scheme at present.  
Question 36: Does the Price Support Scheme also apply on India 's agricultural exports?  
Reply: Price Support Scheme is aimed at protecting farmers' income in the domestic mar ket.  
Page 123  (para.  4.32)  
4.32 The Government also implements a Market Intervention Scheme (MIS) for perishable 
agricultural/horticultural commodities for which MSPs are not announced. This is implemented in the WT/TPR/M/403/Add.1  
 
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  event of prevailing market prices falling by 10% over the previous "normal" year, or production 
rising by 10% from the previous marketing period, and on request by the affected state. Under the 
Scheme, perishable crops are procured by state procurement agencies at a pre -determined market 
intervent ion price (MIP) that covers production costs. The MIS is implemented for a specific period 
or until the market prices stabilize (whichever is earlier). The cost of the Scheme is shared equally 
between the central and state governments (except for states fr om the north -east, which pay 25% 
of the cost, and the central Government the remainder). The Scheme is restricted to 25% of the 
total value of procurement (including the cost of the commodity procured plus permitted overhead 
expenses). At present, procurem ent is restricted to 20% of the anticipated production of the 
commodity for that particular year or season. According to the authorities, over the review period, 
the MIS was not used extensively, and the procurement against the sanctioned quantity was 
minimal. 
Question 37: How does India ensure that the procured agricultural/horticultural commodities under 
the Market Intervention Scheme are not sold back in the market at supported price (local and/or 
through exports) or are used solely for direct consumptio n? 
Reply: Market Intervention Scheme (MIS) is implemented for perishable horticultural commodities 
for which MSPs are not announced. The procured commodities under the Market Intervention 
Scheme (MIS) are sold at market driven price. If necessary, this can  be sold to processing units 
within the States.  
Page 128  (para.  4.52 and Table 4.5)  
For cold -chain development, by subsidizing: the distribution of insulated fish boxes; the acquisition 
of refrigerated trucks/containers; the construction of new large cold  storage; the construction of 
new ice plants and the renovation of existing ones; and the establishment of facilities to process and 
store frozen, fresh, chilled, live and dried marine products.  
Question 38: What are the incentives given for the cold chain  development specifically construction 
of cold storage facility/warehouse, acquisition of refrigerated trucks/containers and distribution of 
insulated fish boxes? What is the specific form of subsidy and support given? As stated in Table 4.5 
this fall unde r financial assistance, does this refer to direct cash grants, loans or tax breaks?  
Reply: The details of disbursement of financial assistance (for cold chain facilities) can be accessed 
from India's Fisheries Subsidies Notifications to the WTO.  
Page 131  (para.  4.64)  
Retail tariffs vary from one state to another. They are determined by the state regulatory 
commissions, based on tariff regulations and the provisions contained in the Electricity Act, 2003. 
Retail tariffs are generally reviewed every year. Tar iffs are published in orders. Electricity at 
subsidized rates is available to consumers below the poverty line (BPL) and small households and is 
either subsidized or free/unmetered to the agriculture sector. This subsidy is financed by charging a 
higher ra te to other households, and industrial and commercial (e.g. offices, shops) consumers. At 
present, cross -subsidies to BPL consumers should be at least 50% of the average cost. However, 
the Tariff Policy, 2016 recommends a reduction in cross -subsidies, to b ring tariffs for all consumers 
within ±20% of the average cost. In addition, although electricity may be provided free/unmetered 
to the agriculture sector, the Tariff Policy, 2016 states that free/unmetered supply to the agriculture 
sector "encourages wast eful consumption of electricity" and may "lead to rapid rise in demand of 
electricity putting severe strain on the distribution network thus adversely affecting the quality of 
supply of power.  
Question 39: Are there plans to review the 2016 Tariff Policy w hich states that there is 
free/unmetered electricity to the agriculture sector? As stated, free/unmetered electricity 
encourages wasteful consumption of electricity. And what are the developments in plans to bring all 
tariffs for all consumers within 20% o f the average cost?  
Reply: Electricity retail tariffs are determined by the respective state electricity regulatory 
commissions as per provisions of Electricity Act 2003.  Electricity tariff for agricultural consumers is 
cross subsidized by other category of consumers. Respective state governments can provide subsidy WT/TPR/M/403/Add.1  
 
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  to any consumer as per section 65 of the Electricity Act. Since the draft revised Tariff Policy is 
presently under consideration of the Government, details of relevant provisions cannot be shar ed at 
this juncture.    
Page 139  (para.  4.91)  
4.91 The RBI adopted the Basel III capital adequacy framework in 2013, and banks were to 
implement the framework by 31 March 2019.  
Question 40: Were banks in India able to implement the framework by the timeline of 
31 March  2019? If yes, did the implement ation of the Basel III capital adequacy framework have an 
impact on the banking sector 's resilience amidst the COVID -19 pandemic?  
Reply:  Basel III capital regulations have been implemented from 1 April 2013 in India in phases, 
for full implementation by 31  March, 2019. It was decided to defer the implementation of the last 
tranche of 0.625 % of the Capital Conversation Buffer (CCB) to 31 March 2020. Considering the 
potential stress on account of COVID -19, it has been decided to further defer the implementati on of 
the last tranche of 0.625 % of the CCB to 1 April 2021.  
Pages 140 -141 (paras. 4.97-4.98)  
4.97 As a result, the RBI has limited powers to address difficulties in public -sector non -bank financial 
companies (NBFCs), public sector banks (PSBs) and urban c ooperative banks, whose management 
and governance structures continue to be influenced by the central Government, including through 
government -appointed senior management.  
4.98 In this regard, the Banking Regulation (Amendment) Bill, 2020 was introduced i n Parliament. 
It proposes to bring the cooperative banks to the same level as other banks, through better 
management and proper regulation, and to ensure that the affairs of the cooperative banks are 
conducted in a manner that protects the interests of the  depositors. It further proposes to strengthen 
such banks by increasing professionalism, enabling access to capital, improving governance, and 
ensuring sound banking.  
Question 41: What is the status of the Banking Regulation (Amendment) Bill, 2020? Why wer e the 
cooperative banks the only subject of the Banking Regulation (Amendment) Bill, 2020 when similar 
problems are encountered with public sector banks? Is there any initiative to strengthen the 
corporate governance framework of public -sector non -bank fin ancial companies?  
Reply: The Banking Regulation (Amendment) Act, 2020 was passed in both the Houses of the 
Parliament and was notified on 29 September 2020. In addition to amendments related to 
co-operative banks, the Act has also amended Section 45 enabli ng the Reserve Bank of India (RBI) 
to prepare a scheme of amalgamation/ reconstruction for a banking company during the moratorium 
or any other time without making an order of moratorium.  In terms of the relevant Notifications 
issued by the Central Government, Section 4 of the aforesaid Act, which specifically relates to 
co operative banks, has become effective for Primary (Urban) Co -operative Banks with effect from 
29 June 2020 whereas the same shall become effective for State Co -operative Banks and  District 
(Central) Co -operative Banks with effect from  1 Apri 2021.  RBI has introduced ownership neutral 
regulations. All Government NBFCs are required to follow similar standards of regulatory framework 
as applicable to other categories of NBFCs. In orde r to ensure non -disruptive transition, a 
well-defined timeline has been drawn for them to adhere to the changes.  
Page 141  (para.  4.99)  
4.99 In light of the deteriorating economic environment due to the COVID -19 pandemic, a number 
of steps were taken in 2020 to provide temporary relief to borrowers, and enhance liquidity support 
for financial markets and other stakeholders. They include: a special refinance facility of 
INR 650 billion for the NABARD, the Small Industries Development Bank of India (SIDBI),  the NHB, 
and the EXIM Bank, to enable them to continue their funding activities as required.  
Question 42: What was India 's experience in the implementation of these relief measures? 
Considering that the pandemic is not yet over, are there other relief mea sures in the pipeline?  WT/TPR/M/403/Add.1  
 
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  Reply: In the face of COVID -19 related disruptions, the Government has acted swiftly with several 
policy measures. These measures helped in enabling normal functioning of financial markets and 
institutions, facilitating and incentivi sing bank credit flows, supporting monetary transmission and 
easing of financial stress in specific sectors and markets and increasing the systemic liquidity.  The 
Government will continue to respond to global spill overs to secure domestic stability with l iquidity 
management operations. The various instruments available will be used at the appropriate time, 
calibrating them to ensure that ample liquidity is available in the system.  
Page 143  (para.  4.109)  
4.109 To expand ICT penetration, in 2015, India launc hed the Digital India Initiative; as a result, all 
government services are available online, and connectivity and digital literacy have improved. To 
this end, common service centres (CSCs) were established in rural and remote areas to connect the 
unconnect ed to public and private services, such as banks, insurance companies, and health and 
education centres. CSCs are run by village -level entrepreneurs (VLEs); tariffs charged by the VLEs 
to use computers and access the Internet are regulated to ensure afford ability. It is also expected 
that the Digital India Initiative will help increase e -commerce. In addition, public and private training 
initiatives, to promote the adoption of digital technology, were implemented to encourage MSMEs to 
diversify their busine ss model through the use of Business -to-Business (B2B) and Business -to-
Consumer (B2C) services. Despite these efforts, according to the business community, issues such 
as lack of digital literacy, poor connectivity (including high equipment and connection costs), and 
cyber security are a challenge to digitalization. A 2017 study revealed that 68% of MSMEs had no 
access to the Internet; 30% were using it for online marketing and communication; and only 2% 
were engaged in e -commerce.  
Question 43: What role do es the Reserve Bank of India play in facilitating interoperability of card 
and mobile payments in India?  What measures have been done so far to promote the use of online 
and mobile payments and make cross -border payments safer? Has the situation brought a bout by 
COVID -19 served as a catalyst to increase the use of digital payments in the country?  
Reply: Under the provisions of the Payment and Settlement Systems Act, 2007, the Reserve Bank 
of India (RBI) has authorised multiple card payment networks. Simila rly, in respect of mobile 
payments, RBI has authorised National Payments Corporation of India (NPCI) for operating Unified 
Payments Interface (UPI). Further, various banks and non -banks have been permitted to issue 
Prepaid Payment Instruments (PPIs). The c ard payment networks and UPI are intrinsically 
interoperable in nature. Further, PPI interoperability has been permitted through UPI and card 
networks. In continuation with its vision of promoting interoperable payments, RBI has mandated 
that all proprieta ry QR codes should migrate to interoperable ones as a step towards streamlining 
QR code infrastructure.  For promoting the use of online and mobile payments, various measures 
have been taken to increase the safety of transactions, customer convenience, efficient grievance 
redressal mechanism, etc. Various instructions issued in this regard are available on th e RBI website 
at the following path: https://www.rbi.org.in/scripts/FS_Notification.aspx?fn=9 . To promote digital 
payments through all digital payment modes in the country, the Govern ment of India created 
DIGIDHAN MISSION. Under the Mission, the establishment, growth and sustenance of a robust, 
secure and inclusive National Digital Payments ecosystem is being overseen. Digital Payments 
Dashboard, that is, DIGIDHAN Dashboard (https://di gipay.gov.in) has been developed to create a 
platform for reporting, monitoring and analysis of digital payments transactions occurring in the 
country. During the COVID -19 pandemic, digital payment modes have proved to be critical for 
smooth functioning of  the economy. Digital payments in India are expected to grow significantly due 
to growing Fintech ecosystem, COVID -led changes in consumer behavior and government 's policies 
and initiatives around financial inclusion.  
Question 44: How does India address co ncerns on cybersecurity and/or national security for those 
projects with foreign equity above 49%?  
Reply: The projects need to comply with prevailing Indian law and regulations including IT Act which 
has provisions for safeguarding cyber security aspects.  India has a framework for assessment of 
foreign investment proposals from the national security angle. The SOP for processing FDI proposals 
can be accessed on Foreign Investment Facilitation Portal at https://fifp.gov.in/Forms/SOP.pdf . WT/TPR/M/403/Add.1  
 
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  QUESTIONS REGARDING THE GOVERNMENT REPORT  
Page 6  (para.  2.7) 
India's total trade in goods (exports plus imports) as a percentage of GDP has shown an uneven 
trend. After declining from 37% in 2015 -16 to 36% in 2016 -17, it showed a steady increase and 
reached 41% in 2018 -19 (Table 3). However, it declined to 37.8% during 2019 -20. The slowdown 
of world output has definitely had an impact on reducing the export to GDP ratio.  
Question 45: What is the current share of India in g lobal exports? Was it able to achieve its goal 
of 3.5% in 2020? What was the effect of the pandemic in achieving this goal? Which central 
government scheme can India attribute the most in achieving the goals?  
Reply: According to the WTO data, India 's share  in world 's merchandise exports was 1.7% in 2019, 
while that in commercial services exports was 3.5% in 2018. Even though t here has been significant 
market diversification in India's trade in recent years – a process that has helped in coping with the 
sluggish global demand and continuing towards year -on-year growth, the decline in merchandise 
exports during 2019 -20 [by ( -) 5.1%] has affected this trend. The decline in exports is attributed to 
a subdued external demand weakened by slowdown in global investm ent, which got further 
accentuated by the COVID -19 Pandemic. The policy focus by the Government has been primarily to 
stimulate various sectors of the economy while facilitating ease of investment and infrastructural 
support through various initiatives.  
Page 11  (para.  3.1.5)  
The 'Make in India ' initiative was launched in 2014, with the primary goal of making India a global 
manufacturing hub. This is sought to be achieved through facilitating investment, fostering 
innovation, enhancing skill development, a nd building best -in-class manufacturing infrastructure. 
This initiative has been reviewed afresh and is now focusing on 27 sectors [15 manufacturing sectors 
and 12 service sectors] under Make in India 2.0. The potential investors are being attracted by 
dedicated Government agencies as well as the State Governments and Indian Missions abroad. An 
Investment Clearance Cell has been established as a one -stop digital platform to obtain all requisite 
central and state clearances/approvals required. This is suppor ted by a GIS -enabled land bank for 
investors to look at available plots and land use patterns in different areas, on an online platform. 
An Empowered Group of Secretaries to the Government of India, led by the Cabinet Secretary, has 
also been constituted t o take decisions on cross cutting policy issues for facilitating and speeding up 
domestic and foreign investment. Simultaneously, Project Development Cells (PDC) for the 
development of investible projects have also been created in the different administrat ive ministries 
for expedited coordination between the Central Government and State Governments. These steps 
reinforce the Government 's commitment towards promoting India as a favourable investment 
destination across the globe, along with improving ease of doing business for the investors  
Question 46: What are the priority 27 sectors (of which, 15 manufacturing sectors) promoted under 
the Make in India 2.0, as well as the incentives given to these sectors?  
Reply: Details can be seen at https://www.makeinindia.com/home .  
Question 47: Can India provide more information on its initiatives or strategies on selecting possible 
investment destinations to optimize opportunities in these sectors?  
Reply: Investment outr each is being done through Ministries, State Governments and Indian 
Missions abroad, while Identification of potential investors, and their handholding / facilitation is 
done through Invest India the national investment promotion and facilitation agency of  India. 
Sectors for this purpose have, inter alia, been chosen keeping in mind the Indian industry 's strengths 
and competitive edge, as well as employability.  
 
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