Paragraph 168, page 88 of the Secretariat report notes that duty concessions granted under the Duty Entitlement Passbook Scheme to exporters of cotton yarn were suspended, for six months, to reduce exports in an attempt to control the domestic price of cotton.
Does India consider that this suspension provided a subsidy to further manufactured goods that used the cotton as an input (e.g. jeans)?
Reply: The suspension of DEPB on cotton yarn does not provide a subsidy as there is no additional benefit of duty neutralisation scheme to the domestic industry manufacturing the value added goods.
(4) MEASURES AFFECTING PRODUCTION AND TRADE
(iv) Government Procurement
(a) Overview
Australia 84:
Paragraph 220, page 106 of the Secretariat report states that the authorities consider public procurement as an important instrument of government policy, used to obtain certain socio economic objectives such as developing indigenous industries and micro, small, and medium scale industries.
How does India define "micro industry" and what are the criteria for being considered such an industry?
Reply: As per MSMED Act, 2006, an enterprise engaged in the manufacture or production of goods, with an investment in plant and machinery not exceeding twenty five lakh rupees, is defined as "micro enterprise".
IV. DEVELOPMENTS IN SELECTED SECTORS
(1) AGRICULTURE
(i) General Overview
Australia 85:
We note the comment in paragraph 8, page 127 of the Secretariat report that increasing agricultural production in India requires shifting away from a 'subsidy based, protected regime' for agriculture.
How does India view the World Bank's priority areas for support in India, particularly the priority to enhance agricultural productivity by creating a more productive, competitive and diversified agricultural sector by shifting public expenditures to productivity enhancing improvements?
Reply: India's priorities and agriculture development strategies are reflected in India's Five Year Plan documents. India is currently implementing agriculture competitiveness projects in Maharastra and a few other States.
