World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

Reply: India maintains export tax on a very limited number of items and is reviewed from time to time. These duties/taxes are not inconsistent with the WTO provisions.

Switzerland 19:

Report by the Secretariat: III. Trade policies and practices by measure:  (4) Measures affecting production and trade: (i) Incentives: (b) Other support: Credit policies: Para. 182:

1. In para. 182, the Secretariat's report notes that India sets targets for priority sector lending to ensure that banks provide credit to specific sectors. Domestic and foreign commercial banks are required to reserve a percentage of their adjusted net bank credit (ANBC) or credit equivalent amount of off balance sheet exposure (OBSE) whichever is higher, for priority sectors. Domestic banks must reserve 40% of their ANBC/OBSR to lend to priority sectors and foreign banks 32% of their ANBC/credit equivalent of OBSE to priority sectors, out of which 12% must be channelled to exports. Could the Indian authorities explain to what extent these credit requirements in favor of priority sectors also imply interest rate concessions and, if so, how these interest rate concessions are being financed?

Reply: The targets of 40% for domestic banks and 32% for foreign banks do not link to any interest rate ceiling, and with the introduction of Base Rate System, with effect from 1 July 2010, banks are free to decide interest rate on all loans, as per the policy framed by them.