Under its GATS schedule of specific commitments, unlike international maritime and air transport, India has not opened road transport services including passenger and cargo services. Could the Indian government explain the reasons not to open this sector? Or has it taken any measures liberalizing this sector irrespective of GATS commitments?
Reply: The road transport sector is largely open in India. FDI is permitted up to 100% on the automatic route, subject to applicable laws/sectoral rules/regulations/security conditions in passenger and freight. Similarly, FDI is permitted upto 100% on the automatic route, subject to applicable laws/sectoral rules/regulations/security conditions in the cargo segment as well.
