World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

In para. 182, the Secretariat's report notes that India sets targets for priority sector lending to ensure that banks provide credit to specific sectors. Domestic and foreign commercial banks are required to reserve a percentage of their adjusted net bank credit (ANBC) or credit equivalent amount of off balance sheet exposure (OBSE) whichever is higher, for priority sectors. Domestic banks must reserve 40% of their ANBC/OBSR to lend to priority sectors and foreign banks 32% of their ANBC/credit equivalent of OBSE to priority sectors, out of which 12% must be channelled to exports. Could the Indian authorities explain to what extent these credit requirements in favor of priority sectors also imply interest rate concessions and, if so, how these interest rate concessions are being financed?

Reply: The targets of 40% for domestic banks and 32% for foreign banks do not link to any interest rate ceiling, and with the introduction of Base Rate System, with effect from 1 July 2010, banks are free to decide interest rate on all loans, as per the policy framed by them.

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Report by the Secretariat: III. Trade policies and practices by measure:  (4) Measures affecting production and trade: (v) Government procurement: Para. 219:

2. According to paragraph 219, India has progressively moved towards a more transparent and competitive procurement framework and its participation since 2010 as an observer in the WTO Committee of public procurement certainely underlines the will of the Indian authorities to bring the procurement regime in line with GPA rules and standards in the future. The information provided in the chapter Governement procurement shows moreover that India has to face many challenges for which the GPA already gives appropriate answers and solutions. Under these circumstances, Switzerland wonders whether it would not be easier for India to join the GPA, so that it could base its internal legislation more easily on transparent and internationnally agreed provisions for core principles, procurement methods, design of legislations challenge procedures, etc.? What are the hurdles India considers represent a challenge with a view of facilitating its final move to the GPA membership? What could the WTO Members do to support India in resolving the main issues to be tackled?

Reply: Issue of India's accession to GPA is under examination. At present, any commitment on this issue is not feasible. However, India will take a decision based on an assessment of actual and effective market access available in the markets of GPA signatories.

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Report by the Secretariat: III. Trade policies and practices by measure:  (4) Measures affecting production and trade: (v) Government procurement: Para. 232:

3. According to paragraph 232, India retains preferential treatment for micro and small entreprises (MSEs). What are the criteria used by India to define MSEs? Does India consider that the concept of "Small and Medium Enterprises (SMEs) is different from the definition used for qualifying an activity or an enterprise as a MSE? Switzerland considers that a GPA Membership offers to SMEs interesting potential opportunities to participate in activities related to government procurement and to create activities, jobs, technologies, research and networks. Does India share this view?

Reply: Section 7(1) of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 categorized the enterprises into manufacturing and services, which are further classified as micro, small and medium enterprises (MSMEs) based on the investments in "plant and machinery" and in "equipment" respectively. MSMEs participate in Government procurement in India and MSMEs registered with NSIC are provided facilities/benefits that assist them in marketing their products. The actual market access in GP markets abroad is yet to be assessed and analysed, and only thereafter can the potential opportunities be actually tapped.

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Report by the Secretariat: III. Trade policies and practices by measure:  (4) Measures affecting production and trade: (vi) Intellectual property rights:  (b) Patents:  Para. 256:

1. Paragraph 256 of the Report by the Secretariat refers to Section 84, Chapter XVI of the Patents Act 1970 (hereafter: Patents Act) and indicates the conditions for the grant of a compulsory licence in India (the reasonable requirements of the public with respect to the patented invention have not been satisfied; the patented invention is not available at a reasonably affordable price; or it is not worked in India). Switzerland would like to submit the following questions concerning this issue:

• 
  Article 27.1 of the TRIPS Agreement requires that patents shall be available and patent rights enjoyable without discrimination as to whether products are imported or locally produced. Please confirm that importation of a patented invention is considered as working a patent/a patented invention under Section 84 of the Patents Act.
  
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  Further, Paragraph 256 of the Report of the Secretariat states that the Department of Industrial Policy and Promotions issued a discussion paper on compulsory licensing with a view to developing a predictable environment to use such measure. What is its legal status? Please describe shortly its contents and any possible recommendations or measures the Indian Government envisages under it. Could the Indian authorities indicate where this discussion paper can be obtained?
  

Reply: Working of patent includes importation. However, under Section 83 (b) of the Patents Act, mere importation cannot be considered as working. This has been introduced to prevent abuse of monopoly rights and is in keeping with Article 5 of the Paris Convention and Article 2, 7 and 8 of TRIPS.

The Department of Industrial Policy and Promotion prepared a Discussion Paper on the subject of Compulsory Licensing and hosted the same on its website to invite the views and suggestion on certain issues for resolution. The objective of this exercise was not to invite any change/amendment to the provisions of the Patent Act 1970 but only to elicit the suggestions to take an appropriate policy decision whether the existing provisions of the Patents Act, 1970 require any amplification through issuing of guidelines by the Government. After obtaining and examining the suggestions on the said Discussion Paper, the Government has decided that there is no need to issue additional guidelines for the issue of Compulsory License and issued a press release to this effect to conclude the matter. The said Discussion Paper is available on the official website of this Department i.e. www.dipp.nic.in.

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1.