World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

US FQ 5:

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  In U.S. Question 17, we asked about the World Bank's assessment that India, in 2010, ranked 165 out of 183 economies for ease of starting a business. We asked India: "To what factors" it attributes "this low ranking, notwithstanding India's efforts to improve its business climate?" And, we asked what additional measures India is considering to improve its business environment in an effort to achieve its trade and investment goals? India responded that the World Bank's report does not represent the business environment across the country, and that the World Bank's sample was too small. India responded simply that "Government is reviewing the FDI policy and regulations, on a continuing basis, with a view to their further liberalisation and increasing their investor-friendliness."
  

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  The United States would like a more specific response, including what additional measures India is considering in this context to achieve its objectives.
  

Reply: While the FDI policy continues to be simplified and rationalized another area that Government is working on is streamlining and simplifying the business environment. An entity named "Invest India" has been set up in the DIPP as a single window facilitator for overseas investor. Further, the Government has initiated the implementation of an e-business project to provide online registration and payment services to investors and business houses. The reform of the Companies Act is also presently underway which will ease the procedure of setting up of business. As a business structure, the concept of LLP was introduced in India in the beginning of the year 2009. A lot of measures for the protection of the investors have also been introduced. The Ministry of Corporate Affairs maintains two websites – www.iepf.gov.in and www.watchoutinvestors.com – and free-of-cost access is provided for the benefit of investors. The website – iepf.gov.in – is an information providing platform to promote awareness among the investors and general public by placing topics of financial literacy on public domain. The content of this website is available in English, Hindi and 11 regional languages. Website – www.watchoutinvestors.com – is a registry of all such persons and entities who have been indicted for economic offences by any of the regulators. This website is meant to provide an alert to investors to enable them to take appropriate investment decisions.

US FQ 6:

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  With regard to U.S. Question 45 regarding import licenses for remanufactured goods, we understand from India's response that licenses for importation of "remanufactured goods" are not automatic. What are the conditions (i.e., the "merits to safeguard public interest") that must be met to receive a license, and where in Indian law are these conditions set out? When will India notify these conditions in light of the Import Licensing Agreement?
  

Reply: There is no conceptual clarity on what is a "remanufactured good" as there are various terms in vogue such as recycled, repaired, refurbished, re-used etc without a clarity on the definition. Remanufactured goods are a matter of great concern for developing countries like India as it would rise environmental and safety issues. India has thus suggested in WTO that a "work programme" precede any commitments on market access. The Foreign Trade Policy, 2009-14, containing the import licensing conditions, has already been notified to WTO.

Mr Chairman, the United States has additional follow-up questions for India that we would like to submit rather than provide orally. We look forward to receiving full responses to all of our questions from the Indian government within the requisite month following this TPR.