WTO Secretariat Report (WT/TPR/S/249): IV. TRADE POLICIES BY SELECTED SECTOR: (3) SERVICES: (i) Overview: (Page 138, paragraph 52)
Inadequate infrastructure has become a critical constraint to India's development of the services industry. To address this concern, the 11th Five Year Plan outlined a comprehensive strategy to improve both rural and urban infrastructure.
It would be appreciated if India could provide us with further information on the following aspects:
Which basic infrastructure in India is the cause of the greatest constraint to further development of the services industry?
Which of the other basic infrastructures in the services industry have the highest priority under the 11th Five Year Plan?
Reply (i) and (ii): India plans to rapidly improve infrastructure as inadequate roads, ports. power and airports has become a critical constraint to India's development. The 11th Five year plan outlines a comprehensive strategy to improve both rural and urban infrastructure including power, roads, railways, ports, airports, storage and warehousing etc. Details of this (including the priority areas) are at http://planningcommission.nic.in.
How does India attract foreign investment to help solve these difficulties?
Reply: Foreign Direct Investment in most of the infrastructure sector is placed under the automatic route. Foreign Investment Promotion Board (FIPB), a single window inter ministerial body, strives to provide decision on FDI proposals, expeditiously in respect of cases that require FIPB approval.
