World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

Reply: A strategy paper has been prepared on the subject and it is available at the Department of Commerce website http://commerce.nic.in.

US 17:

Report by the Secretariat (WT/TPR/S/249): II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES: (4) Investment Regime: (i) Business environment: Page 29, paragraph 26:

The Secretariat states: "The World Bank estimates that it takes 29 days at a cost of some 56.54% of GNI per capita to start a business in India. In 2010, India ranked 165 out of 183 economies for ease of starting a business, up from 168 in 2009." To what factors does India attribute this low ranking, notwithstanding India's efforts to improve its business climate? What additional measures is India considering to improve its business environment in an effort to achieve its trade and investment goals?

Reply: The report of the World Bank is not representative of the business environment across the country. The sample size and the statistical universe are very limited in size. Government is reviewing the FDI policy and regulations, on a continuing basis, with a view to their further liberalisation and increasing their investor friendliness.

US 18:

Report by the Secretariat (WT/TPR/S/249): II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES: (4) Investment Regime: (i) Business environment: Page 30, paragraph 30:

The Secretariat states: "Prior environmental clearance is required for all domestic or foreign companies planning a project in an area listed in the Schedule to the 2006 Environmental Impact Assessment (EIA) Notification." Having taken due note of http://www.moef.nic.in/legis/env_clr.htm, we would like India to clarify its public process for obtaining prior environmental clearance. Please identify which parts of the process are open to the public and the means by which they are made public. Please explain the process by which an interested party can appeal the government's environmental clearance decision.

Reply: The environmental appraisal of developmental projects is undertaken under the provisions of the Environmental Impact Assessment (EIA) Notification, 2006, which provides for screening, scoping, public consultation and the final appraisal for the environmental clearance.

After preparation of the draft Environmental Impact Assessment (EIA) Report, the same is put in public domain for organizing the public consultation. The EIA Notification, 2006 provides the details of the process of public consultation including the procedure, panel, videography etc. The issues raised in public hearing are required to be incorporated in the final EIA Report. The project proponents are given an opportunity to make the presentation during appraisal of the project by the sector specific expert appraisal committees (EACs). For benefit of all stake holders and for maintaining transparency, the Ministry's website displays the agenda, proceedings of the EAC meeting, environmental clearance letter etc. and is updated regularly.

The EIA Notification, 2006 is uniformly applicable to the projects of the Central Government, state Government, public sector undertakings, private entrepreneurs, joint ventures as well as foreign companies.