World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

Reply: Most State Governments have modelled their financial Rules on the basis of GFR 2005, and the principle of adequate publicity is followed.

53. 
    Does a supplier have to be a subscriber to the Indian Trade Journal in order to see all of the tender opportunities published in the journal?
    

Reply: It is the choice of a supplier as the tender information is also available on the website of the purchasing entity.

Canada 54:

Report by the Secretariat (WT/TPR/S/249): Part III. Trade Policies and Practices by Measure: (4) Measures Affecting Production and Trade; (v) Government Procurement: (b) Regulatory Framework: paragraph 229, page 108:

54. 
    Could India please explain if ministries or departments are subject to any minimum or maximum monetary values of procurements in order to procure goods directly under a "rate contract"?
    

Reply: No, there are no such limits for purchases under rate contracts.

Canada 55:

Report by the Secretariat (WT/TPR/S/249): Part III. Trade Policies and Practices by Measure: (4) Measures Affecting Production and Trade; (v) Government Procurement: (c) Preferential policies at the central government level: paragraph 232, page 109:

Regarding preferential treatment for micro and small enterprises (MSEs), the Secretariat's Report states that, "preferences could be granted on a case by case basis after an assessment of the ministry concerned."

55. 
    Could India please explain what specific preferences ministries can grant on a case by case basis?
    

Reply: Government Purchase and Price Preference Policy for MSMEs has no provision of specific preferences that ministries can grant on a case to case basis.

Canada 56:

Report by the Secretariat (WT/TPR/S/249): Part III. Trade Policies and Practices by Measure: (4) Measures Affecting Production and Trade; (v) Government Procurement: (c) Preferential policies at the central government level: paragraph 233, page 109:

The Secretariat's Report states that "Under the purchase preference system, 358 items have been reserved for exclusive procurement from MSEs (Table AIII.9) and 21 items for exclusive manufacturing in the micro and small sectors (section (4)(i)(b))."

56. 
    Could India please provide a list of these items reserved for procurement and manufacturing from MSEs?
    

Reply: List of 358 items reserved for exclusive purchase from MSEs is available at DC, MSME official website link: http://www.dcmsme.gov.in/schemes/List of 358 Items Reserved.pdf. The list of 20 items reserved for exclusive manufacture by micro and small enterprises sector is available on website link: http://www.dcmsme.gov.in/publications/reserveditems/reserved
2010.pdf.

Canada 57:

Report by the Secretariat (WT/TPR/S/249): Part III. Trade Policies and Practices by Measure: (4) Measures Affecting Production and Trade; (v) Government Procurement: (c) Preferential policies at the central government level: paragraph 233, page 109:

The Secretariat's Report states that "MSEs are also assisted through the: (i) issue of tender sets free of cost; (ii) exemption from payment of "earnest money" (deposits); and (iii) waiver of security deposits up to the monetary limit for which the unit is eligible, based on certain "transparent" criteria (Table AIII.9)."

57. 
    Could India please provide information on the normal cost suppliers are charged for the issue of tender sets, and the process governing the payment of "earnest money" from suppliers?
    

Reply: The cost of Tender sets is related to the estimated cost of purchase, drawings, specifications etc. and it may vary from couple of hundred to few thousand rupees. The earnest money deposit for each tender is normally stipulated in the notice inviting tenders. Different agencies of the Government have come out with guidelines to calculate the earnest money deposits relating to their tenders which may vary from 2% to 5% of the value quoted by the bidder against the tender.

Under Government Purchase and Price Preference Policy, micro and small enterprises (MSEs) registered with NSIC are provided facilities for tender sets free of cost and exempted from payment of earnest money.

Canada 58, 59:

Report by the Secretariat (WT/TPR/S/249): Part III. Trade Policies and Practices by Measure: (4) Measures Affecting Production and Trade; (v) Government Procurement: (f) Procurement at the state level: paragraph 242, page 111:

The Secretariat's Report states that, "in most states the general financial rules (GFRs) govern procurement and are based on the Central Government GFRs, which were updated in 2005."

58. 
    Could India please indicate which states use these GFRs to govern procurement?
    

Reply: Financial powers are decentralised and it is for each State government to establish its own rules and regulations keeping in mind the requirements of transparency, non discrimination and accountability. Some of the states like Tamil Nadu and Karnataka have passed laws to regulate public procurement, on the lines of provisions of GFR.

59. 
    Can India please clarify which government sectors fall under the authority of the state level of government?
    

Reply: Powers of Central Government and state Governments have been stated in the Article 246 of the Indian Constitution. List I is the Union list, List II is the state list and List III is the concurrent list.

Canada 60, 61:

Report by the Secretariat (WT/TPR/S/249): Part IV. Trade Policies by Selected Sector: (2) Agriculture; (i) General Overview: paragraph 8, page 127:

The Secretariat's Report states that "India places high priority on raising agricultural productivity as a means of reducing poverty. However, raising productivity would require a policy shift away from the existing subsidy based protected regime that no longer appears to be sustainable".

60. 
    Could India please provide more information on the types of policies or programs that would be used to achieve the referenced policy shift aimed at increasing agricultural productivity in the years to come?
    

Also, according to the Secretariat's Report, to meet production, as well as other agricultural policy objectives, India plans to increase public expenditure, while also encouraging private investment.

61. 
    Can India please elaborate on the types of programs or policies it intends to use to encourage private investment, and which sectors would be targeted by that policy?
    

Reply: India's agriculture policy is articulated in the Five Year Plan documents; and the policies and programmes taken up by concerned Departments and States. The Twelfth Five Year Plan of India, to be applicable for the period 2012 2017 is under formulation.

The entire inputs manufacturing and outputs processing and marketing industry for agricultural produce in India is in the private sector. India also permits 100% FDI in seed production, horticulture, animal husbandry and certain other sectors of protected agriculture.

Canada 62:

Report by the Secretariat (WT/TPR/S/249): Part IV. Trade Policies by Selected Sector: (2) Agriculture; (ii) Agricultural policy objectives: (a) Measures affecting imports: paragraph 17, page 129:

As noted by the Secretariat's Report, India's applied tariff variability as well as the complex process for the notification of tariff rate changes, creates uncertainty and acts as an impediment to trade.

62. 
    Can India please elaborate further on how it is intending to improve transparency and predictability in its tariff management system?
    

Reply: India's import duty regime is quite simple, fair and transparent. All changes in effective rates are put in the public domain/ website as soon as they are issued.

Canada 63:

Report by the Secretariat (WT/TPR/S/249): Part IV. Trade Policies by Selected Sector: (2) Agriculture; (ii) Agricultural policy objectives: (a) Measures affecting imports: paragraph 18, pages 129 130:

The Secretariat's Report mentions that India introduced a tariff rate quota (TRQ) for sugar of 1 million tonnes with an in quota tariff rate of 0%.

63. 
    Can India please explain the rationale for introducing a TRQ for sugar and could India elaborate on how it ensures that the TRQ allocation process is fair and transparent?
    

Reply: Details of the TRQ allocation for sugar (as a short term measure), has been stated in the Customs Notification No. 84 dated 31 July 2009. It is available at the website link: http://www.cbec.gov.in/customs/cs act/notifications/notfns 2k9/cs84 2k9.htm.

Canada 64:

Report by the Secretariat (WT/TPR/S/249): Part IV. Trade Policies by Selected Sector: (2) Agriculture; (ii) Agricultural policy objectives: (a) Measures affecting imports: paragraph 19, page 130:

According to the Secretariat's Report, tariff rate quotas (TRQ) continue to be allocated on a pro rata basis by the Directorate General Foreign Trade and the authorities noted that the fill ratio of these quotas is low, apparently for a lack of demand due to high international prices of these commodities.

64. 
    Could India please explain why it maintains and administers TRQs for which the fill ratio remains low?
    

Reply: These TRQs have emanated due to renegotiations on bound rate of duty of certain items. India has to maintain these TRQs even if the fill rate is low; otherwise the items which can be imported under TRQ with less duty will have to be imported at "out of quota rate", which is high.

Canada 65:

Report by the Secretariat (WT/TPR/S/249): Part IV. Trade Policies by Selected Sector: (2) Agriculture; (ii) Agricultural policy objectives: (a) Measures affecting imports: paragraph 20, page 130:

The Secretariat's Report mentions that Indian "authorities may impose import (and export) restrictions on security, self sufficiency, and balance of payments reasons, and on health and moral grounds".

65. 
    Can India please provide more information on whether import restrictions are imposed on animal products, i.e. live animals or meat products?
    

Reply: Import restrictions are imposed if there is a risk of the specific product bringing in one or more specific diseases which could adversely affect the health and safety of the human and animal populations of this country. Accordingly import restrictions are maintained on live animals as well as meat products in terms of quarantine certificates.

Canada 66, 67:

Report by the Secretariat (WT/TPR/S/249): Part IV. Trade Policies by Selected Sector: (2) Agriculture; (ii) Agricultural policy objectives: (a) Measures affecting imports: paragraph 21, page 130:

According to the Secretariat's Report, "the number of sensitive items increased since 2007, from 300 to some 415 items".

66. 
    Can India please elaborate on when and at which frequency it notifies these changes, on what grounds an item is determined as sensitive and on the process for notification?
    

Reply: Monitoring of imports of sensitive items is being done on a monthly basis. Any item is included in the list on a need based basis where it is felt that import should be monitored.

67. 
    Also, can India please clarify if there are some items that can be considered sensitive while having an applied rate equal to 0%?
    

Reply: The sensitive item category is only for monitoring imports on those items irrespective of applied duties which can change subsequently.

Canada 68:

Report by the Secretariat (WT/TPR/S/249): Part IV. Trade Policies by Selected Sector: (2) Agriculture; (ii) Agricultural policy objectives: (b) Measures affecting exports: paragraph 27, page 132:

The Secretariat's Report states that "India imposes export taxes which are used to, inter alia, ensure domestic supply of raw materials for higher value added; promote further processing of natural resources, ensure an "adequate" domestic price, and preserve natural resources".

68. 
    Can India please elaborate on what agriculture and food items are affected by export taxes and how it notifies them?
    

Reply: No agricultural product or food item is currently subjected to export tax.

Canada 69:

Report by the Secretariat (WT/TPR/S/249): Part IV. Trade Policies by Selected Sector: (2) Agriculture; (ii) Agricultural policy objectives: (c) Internal measures: paragraph 33, page 133:

The Secretariat's Report indicates that direct or explicit subsidies to agriculture as reported in the Central Government's annual Budget amounted to Rs 1,413.5 billion in 2009/2010 (2.2% of GDP), up from Rs 571.3 billion (1.3% of GDP) in 2006/2007.

69. 
    Can India please indicate if there are specific sub sectors in agriculture benefiting in greater proportion from direct or explicit subsidies, or if those subsidies are directed at the sector as a whole? Are the amounts of these subsidies, reported by the central government, additional to the amounts of subsidies financed by the state governments, as described in paragraphs 41 and 42 (such as subsidies for water, electricity, and seeds)?
    

Reply: There is no separate classification of subsidies to agriculture in the central government Budget. The figure of Rs 1413.5 billion is the total subsidies outgo in 2009 10 and not the explicit subsidies to agriculture alone as incorrectly indicated in the Secretariat's Report.

Canada 70:

Report by the Secretariat (WT/TPR/S/249): Part IV. Trade Policies by Selected Sector: (2) Agriculture; (ii) Agricultural policy objectives: (c) Internal measures: paragraph 36, page 134:

According to the Secretariat's Report, "there is an additional scheme (the Market Intervention Scheme (MIS)) that covers perishables not under the minimum support prices (MSPs). Under the MIS, the National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) and other State designated agencies purchase perishables at a market intervention price (MIP) when the prices decline because of a bumper crop, and distribute the product". Footnote 29, at the end of this sentence, mentions that there have been few interventions since the inception of the program.

70. 
    Can India please elaborate on how it determines the market intervention prices, which commodities have led India to implement a program outside the MSPs, and why it maintains this program if there has been few interventions?
    

Reply: Market intervention prices (MIPs) of perishables are determined taking into consideration estimated cost of production and a bare minimum margin. Perishables for which MIS operations have been carried out during the last five years are: potatoes, arecanut, apples, palm oil, fresh fruit bunches, orange, chillies, ginger, passion fruit, malta and chow chow. These operations have been carried out only in some states based on emergent conditions.

MIS operations, though taken up exceptionally, are necessary to prevent distress sale by farmers.

Canada 71:

Report by the Secretariat (WT/TPR/S/249): Part IV. Trade Policies by Selected Sector: (2) Agriculture; (ii) Agricultural policy objectives: (c) Internal measures: paragraph 38, page 135:

The Secretariat's Report indicates that, due to a rise in market prices for wheat and rice, the amount spent on subsidizing food has increased substantially.

71. 
    Can India say if it is planning to reform its food subsidizing programs in order to face the rising prices of these commodities?
    

Reply: In light of rising food subsidy bills and other related factors, the need for efficient management of food stocks; the requirement to address the welfare needs of both producers and consumers; creation of adequate infrastructure for transport, storage and distribution of agricultural produce etc. are all issues that are engaging the attention of the government.

CHILE

Chile 1:

In Paragraph 40 of the Government's report, India has stated that larger capacity added on a sustained basis would be required to meet growing energy demand, because a deficit in power supply, both in terms of peak availability and total energy availability, can limit the performance of the industrial as well as the agricultural sector. In this sense, considering the high demand and the commitments made in international agreements, it would be interesting to learn how Indian energy grid is settling today and how India expects to build an efficient energy grid for the future and what would be the impact on that grid of thermal power, nuclear power and renewable energies.

Reply: Over the decades a robust inter state and inter regional transmission grid has evolved in India. Transmission infrastructure of the country is very well maintained and modern devices are being installed to improve reliability, grid security and to move towards the creation of a smart grid. By the year 2015 all regions of the country would be synchronously interconnected and would be operating at a common electrical frequency.

Massive expansion of the inter state transmission and intra state transmission system is under way matching with the planned expansion of generation capacity and for transmitting power form the upcoming generation clusters in the country. By March 2012 the total length of transmission lines of 220 kV and above in the country would be of the order of 2,70,000 ckt kms and the substation capacity (220 kV and above) would be of the order of 3,86,000 MVA.

A total of 1,22,801 MW thermal project have already been identified, main plant orders have already been placed for 76,000 MW and all clearances area also in place.  In addition there are plans for retiring inefficient units. There are also plans to renovate and modernize some generating stations in order to reduce emissions and fuel consumption. Special emphasis is being laid on addition of renewable capacity.

The Government of India is encouraging the development of new and renewable energy for supplementing the energy requirements of the country. The objective of the Government is to increase the contribution of renewable energy in the total energy mix of the country to 6% by 2022 with about 10% contribution in total electricity mix. These projects are grid connected projects. The focus is also on development of solar energy technologies. The potential of solar energy is estimated for most parts of the country at around 30 MW–50 MW per sq.k.m.

Chile 2:

In paragraph 16 of the Government report, it is mentioned that in spite of the robust growth of exports, India's trade deficit continues to be large as the growth of imports has consistently outpaced the growth of export. In this sense, do you consider that the trade deficit which presents India could generate a problem for its economy? If yes, what kind of measures India would take to solve this?

Reply: Even though India's exports have grown at reasonably high rates in recent years, imports have been growing at faster rates, with the result that trade deficit has remained high. The surpluses on invisibles have not been able to cover the trade deficit. Foreign investment flows have helped. However, a reasonably balanced trade is the most sustainable scenario on the external economic front. Persistent trade deficits could result in macro economic instability and over dependence on foreign investment inflows. Investment inflows themselves may not be sustainable in the face of persistent trade deficits.

India is addressing the issue through creation of an environment more conducive to expansion of production and exports. Certain constraints to production and exports in the form of infrastructural bottlenecks, high transaction costs, skill development of the work force, technology upgradation, trade facilitation etc. are being addressed.

Efforts are also being made to identify new products and markets in various parts of the world. Strategic market access initiatives, including free trade agreements, are also being pursued.

Questions to India in Regards to Intellectual Property

Chile 3:

In terms of patents and that established in paragraph 251(WTO Secretariat Report) regarding the necessary prior permission to patent when the applicant does not wish to file a patent application in India prior to filling abroad, does this apply to both residents and non residents. In other words, in the case of an invention developed in India by a foreign company would this company have to request permission to be able to file a patent in the US before it files for a patent in India?

Reply: If the inventor for the invention developed in India by the foreign company is a resident in India, the company is required to seek permission under Section 39 of the Patents Act, 1970 for foreign filing before filing in India.

Chile 4:

In regards to pharmaceutical patents, and the requirement of proof of efficiency in order to prove inventive step that appears in paragraph 250, we would like to inquire in the case of a pharmaceutical product, is a sanitary permit for its commercialization or circulation within the Indian market required, and if so: (i) Does this permit require evidence of efficiency and how would this differ from that required by the patent authority; and (ii) what is the link between the sanitary permit and that patent, in other words would the existence of a patent impede the granting of a sanitary permit on a generic product and to what extent.

Reply: The Member should elaborate what it means by sanitary permits in the case of patents.

Chile 5:

Regarding to that expressed in paragraph 283 in relation to the creation of Copyright Enforcement Cells within the crime section of the police, Chile would like to receive more information on the inner workings of these cells as well as if patent infractions fall under their jurisdiction.

Reply: Copyright protection has both civil and criminal enforcement. Patent infringement on the other hand is covered by civil proceedings.

Chile 6:

In regards to geographical indications, paragraph 286 establishes that GI protection is granted for a period of 10 years renewable for further periods of 10 years, in this sense is there a limit on the further periods or could these be renewed indefinably.