World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

Australia 51, 52, 53, 54, 55:

REPORT BY WTO SECRETARIAT (WT/TPR/S/249): IV TRADE POLICIES BY SELECTED SECTOR: (3) TRADE IN SERVICES:

India has signalled its intention to further integrate the Indian economy with the rest of the world, and to harness opportunities opened up by globalisation including through an emphasis on skill development and education. Australia notes with interest the recent Parliamentary Standing Committee Report on the "The Foreign Educational Institutions (Regulation of Entry and Operations) Bill 2010":

51. 
    Does India have any plans to relax the requirement which prohibits investment of profit for any purpose other than that of growth and development of the educational institution established by foreign institutions in India?
    
52. 
    How will India guarantee process and the ability for clear and transparent repatriation of funds for foreign institutions investing in India?
    
53. 
    How does India define a 'reputed institution' in order to have conditions relaxed (i.e. corpus fund) for entry and operation in India?
    
54. 
    How will India guarantee clear and transparent qualifications recognition and accreditation mechanisms for foreign institutions?
    
55. 
    How will India manage quality control of institutions (Indian and foreign) not meeting minimum quality and accredited standards?
    

Reply: The Foreign Educational Institutions (Regulation of Entry and Operations) Bill 2010 was introduced in Rajya Sabha (the Upper House of Parliament) on 3 May 2010. The details of amendments may only be made available after both the Houses of Parliament consider the same.

Australia 56:

REPORT BY WTO SECRETARIAT (WT/TPR/S/249): IV TRADE POLICIES BY SELECTED SECTOR: (3) TRADE IN SERVICES: (ii) Financial Services (a) Banking

Australia notes in paragraph 78, pages 145 146 of the Secretariat report that the second phase of the Roadmap for Presence of Foreign Banks in India was delayed due to the financial crisis.

56. 
    Could India give an indication of what sort of deviations from the roadmap might be made, and whether the proposal to allow foreign banks to enter into mergers and acquisitions with any private bank in India (subject to an overall investment limit of 74%) would be effected?
    

Reply: The Discussion Paper on the presence of Foreign Banks was released on 21 January 2011 and comments/suggestions from all stakeholders were invited. At present, RBI is in the process of analyzing the various comments/suggestions received.

Australia 57:

REPORT BY WTO SECRETARIAT (WT/TPR/S/249): IV TRADE POLICIES BY SELECTED SECTOR: (3) TRADE IN SERVICES: (ii) Financial Services (b) Insurance

Australia notes in paragraph 101, page 151 of the Secretariat report that India previously indicated it would raise the foreign equity cap in the insurance sector from 26 per cent to 49 per cent, but that this has not yet happened. We also note recent media reports of regulatory developments relating to this issue which appear not to increase the foreign equity cap beyond 26 per cent.

57. 
    Can India confirm it no longer plans to increase the foreign equity cap and if so, could India provide its rationale for this, particularly given the rapid growth in the industry in recent years?
    

Reply: The Government of India has introduced the Insurance Laws (Amendment) Bill, 2008, in Parliament. The Bill inter alia provides for enhancement of holding of equity shares by a foreign company, in Indian Insurance Companies, from 26% to 49%. Presently, the Bill is under examination in Parliament.