World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

EU FQ 9:

9. Question 67 follow-up: Could India elaborate also on its intention to create new Special Economic Zones?

Reply: The statute and the Rules for operating and new SEZs are well laid down in the SEZ Act 2005 and the SEZ Rules 2006, as amended. A special economic zone may be established either jointly or severally by the Central Government, State Governments or any person for manufacture of goods or rendering services or for both or as a free trade and warehousing zone. Such proposals duly recommended by the concerned State Government are considered by the Board of Approval for SEZs. SEZ being set up under the SEZ Act 2005 are primarily private investment driven.

The EU's original question 67: Could India provide information on the "free trade zones": Are these the same as the "special economic zones described in the report? If they are not, please describe eligibility criteria for a company to establish itself in a free trade zone, how many and what type of companies are located in these zones, what type of incentives are provided to the companies concerned and whether those incentives can be quantified.

India's reply: Facilities available to industries established in a Special Economic Zone are given in SEZ Act, 2005 and SEZ Rules, 2006.  SEZ Act and Rules are available on website www.sezindia.nic.in.

EU FQ 10:

10. Questions 89-92 follow-up:

a) India informs that General Financial Rules (GSF) govern the procurement by all Central Ministries. Could India provide information whether procurement is governed by GSF also in some states?

b) Could India elaborate on whether it has the intention to unify/harmonise the system of public procurement on central and state level?

Reply (a) and (b): Chapter 5 and 6 of the General Financial Rules (GFR) 2005 contains general rules applicable to all central government ministries or departments regarding procurement of goods, engagement of consultants and outsourcing of services. Detailed instructions relating to the procurement of goods can be issued by the procuring ministries/departments in conformity with the general rules contained in this chapter.

Financial powers are decentralised and it is for each state government to establish its own rules and regulations keeping in mind the requirements of transparency, non-discrimination and accountability. Some of the states like Tamil Nadu and Karnataka have passed laws to regulate public procurement, on the lines of provisions of GFR. Establishment of a legislative framework for public procurement is under consideration of the government of India.

EU FQ11:

11. Question 110 follow-up: does the system of the GIs protection ensure the same protection in all states of India or does the approach to the GIs protection differ in different Indian states?