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During the period April 2007–December 2009, 102 proposals were rejected mainly on the grounds of being not in compliance with the FDI policy



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During the period April 2007–December 2009, 102 proposals were rejected mainly on the grounds of being not in compliance with the FDI policy.

US 21:

Report by the Secretariat (WT/TPR/S/249): II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES: (4) Investment Regime: (ii) Foreign investment regime: Page 33, Paragraph 40:

The Secretariat's Report notes that, despite liberalization of foreign equity caps, specific market access conditions or permits applicable to FDI can be more restrictive than explicit investment caps. What are the various conditions and permits applicable to FDI in India, outside of equity caps? Is information about these conditions included in the Consolidated FDI Policy issued by the Department of Industrial Policy and Promotion? Is India considering reducing or eliminating these conditions and permits, in light of their restrictive impact on investment?

Reply: The Consolidated Circular on FDI Policy (available at www.dipp.nic.in) details information related to the FDI policy, including the applicable FDI cap, entry route (i.e. whether Government approval is required or otherwise) and other linked conditions. Investment in any sector is also required to comply with applicable laws/sectoral rules/regulations/security conditions.

US 22:

Report by the Secretariat (WT/TPR/S/249): II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES: (4) Investment Regime: (ii) Foreign investment regime: Page 33, Paragraph 40:

India's Jawaharlal Nehru National Solar Mission (JNNSM) appears to condition investment in certain solar projects on what the JNNSM guidelines call "domestic content requirements," which require that certain solar equipment used by developers in such projects be manufactured in India, i.e., of domestic (Indian) origin. How does India view these requirements in light of its obligation under Article 2 of the TRIMS Agreement and the Illustrative List thereto?

Reply: The "domestic content requirements" in India's Jawaharlal Nehru National Solar Mission (JNNSM) is not inconsistent with India's obligation under Article 2 of the TRIMS Agreement and the Illustrative List thereto.

US 23:

Report by the Secretariat (WT/TPR/S/249): III. TRADE POLICIES AND PRACTICES BY MEASURE: (1) Introduction: Page 35, paragraph 3:

The Report by the Secretariat states "As a result of an amendment of the legislation as of 2010, safeguard measures may also take the form of quantitative restrictions." This amendment has not been notified to the WTO Safeguards Committee. When does India plan to notify this amendment to the appropriate WTO Committee?


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