Report by India (WT/TPR/G/249): VI. REGIONAL AND BILATERAL ARRANGEMENTS (Page 23, paragraph 79)
Free trade agreements (FTAs), in India's point of view, should be "building blocks" towards achieving the overall objective of trade liberalization and complement the multilateral trading system. So far India has concluded 10 free trade agreements, 5 limited scope preferential trade agreements and is in the process of negotiating/expanding 17 more agreements.
Could India please provide us with further information regarding its policy on signing bilateral or plurilateral investment agreements?
In India's view, could an investment agreement provide the momentum for liberalization of the service industries?
Reply: Bilateral/plurilateral investment agreements are signed on the basis of the significance of two way investment flows between partner countries and perception of the benefits arising out of such an agreement in terms of enhancing investment inflows. Services sectors are governed by sector specific laws and regulations. Opening up of a services sector does not relate only to investment in that sector. It could also relate to other aspects that are governed by the specific laws and regulations. Hence, it is not necessary that investment agreements would necessarily provide a momentum for liberalization. Investment agreements, however, provide an enabling framework for enhancing investor confidence.
