World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio



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Switzerland 6:

Report by the Secretariat: II. Trade Policy Regime: Framework and Objectives:  (4) Investment regime: Para. 39:

It is a declared aim of the Indian government to attract increased FDI. However, the number of sectors/activities in which FDI is prohibited increased during the review period. How does India explain this contradiction?

Reply: The list of sectors prohibited under both the Foreign Exchange Management Act and FDI Policy as extant at the time of the earlier review, was subsequently consolidated under the FDI policy, vide Press Note 7 (2008), which is available in the public domain. Only one additional sector i.e. "manufacturing of cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes" has since been added. This has aligned the policy with Government's earlier decision of not granting industrial licenses for fresh capacity in the sector.


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