Reply: These measures are given in the highlights of the FTP (23 August 2010) and are available at DGFT website http://dgft.gov.in.
2. A liberal foreign investment regime have made India an attractive destination for foreign investment. What do you mean by a liberal investment regime? What kind of incentives are provided? (Page 12, paragraph 21)
Reply: India has put in place an attractive regime for foreign direct investment, under which FDI, up to 100%, under the automatic route, is permitted in all sectors, except a few. India does not provide incentives specifically for FDI.
3. In paragraph 28, page 15, indicates that government policies emphasize "promote an labour intensive industries to provide employment in the manufacturing sector." Could India list and explain the nature, objectives and scope of these policies? (Page 15, paragraph 28)
Reply: India has identified labour intensive sectors such as food and agro processing sector, small and medium manufacturing industries, textiles and garments and leather sector as key to employment generation. Accordingly, the policy objective is to boost and strengthen these sectors by providing tax incentives, concessional loans, technology upgradation incentives etc. and also focus on skill development of large workforce to cater to these sectors.
4. In order to reduce the impact of inflationary pressures on the economy, India reduced the import duty on rice, wheat, pulses, edible oils, butter and ghee, sugar, onions and shallots. Are these reductions in import duties permanent or has a limited validity period? If the latter, when does that period expire? (Page 17, paragraph 36)
