According to the WT/TPR/S/249, page 29, § 28, "[…] Industries, other than micro and small enterprises, established in a free trade zones are exempt from the licensing obligation." What are the other exemptions/incentives related to the industries established in a free trade zone?
Reply: Facilities available to industries established in a special economic zone are given in SEZ Act, 2005 and SEZ Rules, 2006. SEZ Act and Rules are available on website www.sezindia.nic.in.
Brazil 5:
According to the WT/TPR/S/249, page 33, § 39, "[…] In sectors where FDI is capped, prior approval from the FIPB is required. […]" In this respect, what are the requirements that the foreign investor have to comply with in each sector?
Reply: The requirement for Government approval, through FIPB, is not necessarily linked with the FDI cap, if any. For example, there is an FDI cap of 49% in respect of "scheduled air transport services" and 26% for insurance. FDI in these sectors/activities, however, does not require Government approval, through the FIPB.
