World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

Reply: Minimum import price (MIP) is one of the criteria to ensure the quality.

Mexico 5:

Report by the Secretariat

III. Trade Policies and Practices by Measures (2) Measures Directly Affecting Imports (vi) Imports prohibitions, restrictions and licensing: Para 66

We want to know the criteria by which India allows only the ports of Chennai, Kolkata and Mumbai for import of new cars and only to Mumbai for used cars?

Reply: Import of vehicles are allowed at specified ports for better monitoring of imports.

Mexico 6:

Report by the Secretariat

III. Trade Policies and Practices by Measures (2) Measures Directly Affecting Imports (x) Sanitary and phytosanitary measures: Para 119

The report notes that in 2006, India passed the standards and food safety Law. However, regulations to implement this law have not been notified yet.

Would we want to know the reasons for this delay and plans to publish these regulations?

Reply: Food Safety and Standard Regulations, 2011 were notified vide Gazette Notification dated 01.08.2011 by the Government of India and are available on FSSAI website http://fssai.gov.in. The Regulations came into force with effect from 5.08.2011.

Due time for consultations on the Draft Regulation was provided as per WTO provisions.

Mexico 7:

Report by the Government

II. Economic Environment (6) Challenges (iii) Infrastructure: Paragraph 43

The report highlights the importance of infrastructure development for promoting economic development in India. It highlights the role of private investment including foreign to achieve that goal. We want to know the actions that have contemplated by India for attracting foreign investment in infrastructure development of highways, airports, and telecommunications, among others.

Reply: India has a liberal FDI policy in the Infrastructure sector. FDI policy in the sectors mentioned in the question is as follows:

1. 
   FDI, up to 100%, under the automatic route is permitted in the development of highways.
   
2. 
   FDI, up to 100%, is permitted in airport projects. This is fully on the automatic route for Greenfield projects. For existing projects, it is on the automatic route up to 74% FDI and on the government route beyond 74% FDI (para 5.2.7.2.1 of "Circular 1 of 2011 – Consolidated FDI Policy").
   
3. 
   FDI, up to 100%, is permitted in the manufacturing of telecommunications equipment.
   
4. 
   FDI, up to 74%, is permitted in telecommunication services. This is on the automatic route up to 49% foreign investment and on the government route beyond 49% and up to 74% (para 5.2.23.1 of "Circular 1 of 2011 – Consolidated FDI Policy").
   

TRADE POLICIES BY SECTOR / 3) Services / ii) Financial Services), Banking, Legal and regulatory framework, commercial banks