World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

Malaysia 4:

Report by the Secretariat (WT/TPR/S/249 01), paragraph 24, Page xiii

24. … In order to encourage investment in the manufacturing sector, India also offers a wide range of tax incentives, concessionary credit, and other types of assistance. …

What are the types of incentives offered by the Indian Government for the foreign investment in the solar and automotive industries?

Reply: India has a liberal FDI regime to promote foreign investment in the country. As per the para 5.2.6.1 of the FDI policy 100% FDI is allowed on automatic route in non conventional energy generation and distribution subject to applicable laws/sectoral rules/regulations/security conditions. Similarly in case of automotive sector, 100% FDI is allowed on automatic route subject to applicable laws/sectoral rules/regulations/security conditions.

Malaysia 5:

Report by the Secretariat (WT/TPR/S/249 03), Page 20, paragraph 4.

Most sectors are currently at least partially open to FDI, subject to a cap and specific conditions.

• 
  Please elaborate on the cap and specific conditions imposed to FDI in certain sectors/activities.
  
• 
  Please specify the special requirements and permits required for sectors/activities that are open to FDI.
  

Reply: The policy on FDI is available under the Consolidated Circular on FDI Policy (currently "Circular 1 of 2011"), which is currently being updated every six months, to ensure that the latest changes are reflected in the Circular. The Circular is available in the public domain on the website www.dipp.nic.in. Chapter 5 of the Circular contains the sector specific policy on FDI, including the caps and general conditions on FDI.

Malaysia 6:

Report by the Secretariat (WT/TPR/S/249 01), page xii, Paragraph 20.

"Since its last Review in 2007, India has made several amendments to its competition policy legislation, and the Competition Commission of India, created under the Competition Act 2002, started operations in 2009. In addition, some aspects of the law affecting mergers and acquisitions recently entered into force."

Can India please elaborate on the new aspects that have been introduced into its competition law which affect mergers and acquisitions?

Reply:

1. 
   The provisions relating to regulation of combinations (which include mergers, amalgamations and acquisition of shares, voting rights, assets or control), under the Competition Act, 2002, were notified by the Government of India on 4 March 2011, and came into force from 1 June 2011. The provisions relating to regulation of combinations are given under sections 5, 6, 20, 29, 30 and 31 of the Competition Act, 2002.
   
2. 
   The revised thresholds for combinations, given under section 5 of the Act, are in terms of joint asset base of Rs 1500 crore* or turnover of Rs 4500 core in India; or assets of US$2250 million (including turnover of Rs 2250 crore in India). If the combined entity belongs to any group, the threshold for combinations are an asset base of Rs 6000 crore* or turnover of Rs 18000 crore in India; or assets of US$3 billion (including assets of at least Rs 750 crore in India) or turnover of US$9 billion (including turnover of at least Rs 2250 crore in India) in case of outside and within India both.