RESTRICTED  WORLD TRADE  
ORGANIZATION  TN/S/O/IND 
12 January 2004 
 (04-0077) 
Council for Trade in Services 
Special Session Original:   English 
 
 
INDIA 
 
Conditional Initial Offer  
 
 
 The following communication, dated 16 Decemb er 2003, from the delegation of India, is 
being circulated to the Members of the Council for Trade in Services. 
 
_______________ 
 
1. India hereby submits its Conditional Initial Offer under the ongoing negotiations on Trade in 
Services under Article XIX of the General Agre ement on Trade in Services and pursuant to 
paragraph 15 of the Doha Ministerial Declaration. 
2. This offer is conditional on other WTO Member s making substantive and satisfactory offers 
in sectors and modes of supply where India has indicat ed its interests.  India reserves the right to 
withdraw, modify or reduce any part of this offe r and any subsequent conditional offers that could 
follow, in whole or in part, at any time on or prior to the conclusion of the current Services 
Negotiations  if offers made by India’s negotiating partners are not satisfactory . India further reserves 
the right to make any technical amendments or co rrections to this initial conditional offer and any 
subsequent conditional offer that could follow.  
3. This offer is also conditional on the outcome of the negotiations underway on the 
development of disciplines on domestic regulations. 
4. To the extent possible, the individual sectors  and sub-sectors are identified in accordance with 
the Services Sectoral Classification List (MTN.GNS/W/120).  
Specific Commitments  
 
5. India has offered to undertake extensive commitments under Modes 1  and 4. 
6. In addition to the above, India has substa ntially improved access in critical service sectors 
such as Accounting and Book Keeping services, Engi neering services, Computer & related services, 
Medical and Dental services, Services provided by  Midwives, Nurses , Physiotherapists and para-
medical personnel, Construction and related Engin eering services, Financial services, Health services, 
Tourism services and Maritime Transport services. 
_______________ 
 TN/S/O/IND 
Page 2 INDIA – SCHEDULE OF SPECIFIC COMMITMENTS  
  
Modes of supply:    1) Cross-border supply 2)  Consumption abroad 3)  Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on National Treatment Additional Commitments 
I. HORIZONTAL COMMITMENTS   
ALL SECTORS 
INCLUDED IN THIS 
SCHEDULE   3) In case of collaboration with public sector 
enterprises or government undertakings as 
joint venture partners, preference in access will be given to foreign service 
suppliers/entities which offer the best terms 
for transfer of technology. 
  
 3) and 4): Access to Scheduled areas and Tribal 
areas covered under the V and VI Schedule of 
the Constitution of India may be denied.   3) Acquisition of shares in Indian companies 
would be subject to FIPB approval.  
3) Repatriation of sale proceeds of immovable 
property is subject to prior approval of 
RBI. 
3) Taxation laws fo r domestic and foreign 
service suppliers, as per the provisions of 
the Income tax Act, 1961, shall apply. 
3) Subsidies, where granted, shall be available 
only to domestic service suppliers.  
  3) and 4): Special treatment may be provided 
to Scheduled Castes, Scheduled Tribes and 
weaker sections of society, as laid down in 
the Constitution of India as well as various legislation.   
3) and 4): Access to Scheduled areas and 
Tribal areas covered under  the V and VI 
Schedule of the Constitution of India may 
be denied.     
  TN/S/O/IND
 Page 3Modes of supply:    1) Cross-border supply 2)  Consumption abroad 3)  Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on National Treatment Additional Commitments 
 4) Unbound except for measures affecting the 
entry and temporary stay of Natural Persons 
who fall in any of the following categories:  
 
 None for the following categories:   
(a) Business visitors  
Persons who visit India for the purposes specified in (i) and (ii) below and who will not 
receive remuneration from within India: 
 
(i) for business negotiations, or 
(ii) for preparatory work for establishing a 
commercial presence in India. 
 
Entry for persons in this category shall be for 
a period of not more than  90
 180 days. 
 4) Unbound except for measures refe rred to 
under Market Access.  
 
 None, except for the requirement for the 
requisite visa, and the conditions attached 
to entry and temporary stay under such a 
visa, namely: (i) possession of requisite educational qualifications or work 
experience; (ii) fulfilment of specific 
requirements regarding information in 
support of the application; (iii) proof of 
contract. 
  
 (b) Intra-corporate transferees  
 At the level of Managers, Executives and 
Specialists  Specific categories of employees 
listed below  who have be en are in the 
employment of a juridical person of another 
Member for a period no t less than one year 
prior to the date of application for entry into 
India and are being transferred to a branch or 
a representative office or  a juridical person 
owned or controlled by the aforesaid juridical person in the context of provision of a 
service in India.     
 TN/S/O/IND 
Page 4 Modes of supply:    1) Cross-border supply 2)  Consumption abroad 3)  Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on National Treatment Additional Commitments 
 (i) Managers are: 
Persons who direct a branch office or one or 
more departments as their head, or supervise 
or control the work of other supervisory, professional or managerial personnel and have 
the authority to appoint or remove the 
personnel and powers to exercise discretionary authority over day-to-day operations. 
   
 (ii) Executives are: 
Persons who are in senior positions within a 
juridical person including a branch who primarily direct the management, have wide 
decision-making power s and are either 
members of the board of directors or receive directions from the board or the general body 
of shareholders. 
   
 (iii) Specialists are: 
Persons who possess high qualifications and 
knowledge at an advanced level relevant to the organization's activities or of the 
organization's research, equipment, techniques 
or management and may include persons who are members of accredited professional 
bodies. 
 
Entry for persons in the above categories shall 
be for a maximum period of five years.     
  TN/S/O/IND
 Page 5Modes of supply:    1) Cross-border supply 2)  Consumption abroad 3)  Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on National Treatment Additional Commitments 
 (c)  Professionals  
 
 Natural persons to be engaged by a juridical 
person in India as part of a services contract 
for rendering professional services for which 
he/she possess the nece ssary academic 
credentials and professional qualifications 
with three years experience in the field of 
physical sciences, engineering or other natural 
sciences.  
 
 Entry and stay in this category shall be for a 
maximum period of one year extendable with 
permission for a maximum of three months.  
   
 (c) Employees of a foreign based company or 
partnership who travel to India for short periods of stay of (1)  up to one year in 
order to perform a service pursuant to a 
contract between their employer and a client(s) located in India where the 
employer does not have an affiliate office 
and where remuneration must be paid solely to the employer and (2) in order to 
fulfil qualification and licensing 
requirements where presence in India is an 
essential condition for the fulfilment of 
these requirements. 
    
 TN/S/O/IND 
Page 6 Modes of supply:    1) Cross-border supply 2)  Consumption abroad 3)  Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on National Treatment Additional Commitments 
  The service contract ha s to be obtained in 
one of the sectors listed below and subject 
to additional conditions mentioned in the 
sub-sector : 
- Engineering Services 
- Computer and Related Services 
- Hotel and Restaurant services  
- Travel agency and tour operator 
services    
 Access shall be available under this 
category only in the specific service sector 
in which contract has been entered into.   
 
Access may be denied in the case of 
juridical persons where  the provision of 
services by foreign service providers is the 
subject of labour-management dispute. 
    
  TN/S/O/IND
 Page 7Modes of supply:    1) Cross-border supply 2)  Consumption abroad 3)  Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on National Treatment Additional Commitments 
 (d) Independent professionals : Natural 
persons who travel to India for short 
periods of stay, (1) up to twelve months in 
order to perform a service pursuant to a contract(s) between them and a client(s) 
located in India for which he or she 
possesses the necessary academic credentials and qualifications and has 
obtained, wherever necessary,  registration 
with the professional body  and 
remuneration is to be paid solely to  the 
natural person; and (2 ) in order to fulfil 
qualification and licensing requirements, 
where presence in India is an essential 
condition for the fulfilment of these requirements. 
   
 The service contract ha s to be obtained in 
one of the sectors listed below and subject to additional conditions mentioned in the 
sub-sector : 
- Accounting and Book-keeping services 
- Engineering Services 
- Computer and Related Services 
- Hotel and Restaurant services  
- Travel agency and tour operator 
services 
 Access shall be available under this 
category only in the specific service 
sector in which contract has been 
entered into.     
 TN/S/O/IND 
Page 8 Modes of supply:    1) Cross-border supply 2)  Consumption abroad 3)  Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on National Treatment Additional Commitments 
II. SECTOR – SPECIFIC COMMITMENTS   
1. BUSINESS 
SERVICES 
 
A. Professional Services  
    
(b) Accounting and Book 
Keeping Services 
(CPC 862) 
  (excluding Auditing 
Services) 
 1) None 
2) None 
3) Unbound 
4) Unbound except as in horizontal 
commitments and further subject to the 
following: 
(a) Access limited to Business Visitors and 
Independent Professionals only. 
 
 1) None 
2) None 
3) Unbound 
4) Unbound except as in horizontal 
commitments and further subject to the 
following: 
(a) Access limited to Business Visitors and 
Independent Professionals only. 
(b) Requirement of obtaining professional 
indemnity insurance from home country 
of service provider.  
 
(e) Engineering Services 
 (CPC 8672)  
1) Unbound  None  
2) Unbound  None 
3) Only through incorporation with a foreign 
equity ceiling of 51 per cent and subject to the 
condition that in the case of foreign investors 
having prior collaboration in that specific 
service sector in India, FIPB approval would 
be required. 
4) Unbound except as indicated in the horizontal 
section 
  
1) Unbound  None 
2) Unbound  None   
3) None 
 
  
 
 4) Unbound except as indicated in the 
horizontal section   
  TN/S/O/IND
 Page 9Modes of supply:    1) Cross-border supply 2)  Consumption abroad 3)  Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on National Treatment Additional Commitments 
(h) Medical and Dental 
Services (CPC 9312) 
 
(j) Services provided by 
Midwives, Nurses, 
Physiotherapists and 
para-medical personnel 
(CPC 93191) 
 1) None for provision of services on provider to 
provider basis such that the transaction is 
between established medical institutions 
covering areas of second opinion to help in diagnosis of cases or in the field of research.  
2) None 
3) Only through incorporation with a foreign 
equity ceiling of 74 p er cent subject to the 
condition that the latest technology for 
treatment will be brought in and to the 
condition that in the case of foreign investors 
having prior collaboration in that specific service sector in India, FIPB approval would 
be required. 
4) Unbound except as indicated in the 
horizontal section 1) None 
 
 
  
2) None 
3) Publicly funded services may be available 
only to Indian citizens or may be supplied 
at differential prices to persons other 
than Indian citizens. 
 
  
 
4) Unbound except as indicated in the 
horizontal section 
  
B. Computer and Related 
Services  
 
(a) Consultancy services 
related to the installation of computer 
hardware (CPC 841) 
(b) Software 
implementation services 
(CPC 842) 
 1) Unbound
 None 
2) Unbound  None  
3) Only through incorporation with a foreign 
equity ceiling of 51%  74 per cent  and subject 
to the condition that  in the case of foreign 
investors having prior collaboration in that 
specific service sector in India, FIPB 
approval would be required. 
4) Unbound except as indicated in the horizontal 
section 
 1) Unbound  None 
2) Unbound  None  
3) None 
 
  
 
 4) Unbound except as indicated in the 
horizontal section  
(c) Data processing 
services (CPC 843) 
(d) Database services 
(CPC 844) 
(e) Maintenance and repair 
services of office machinery and 
equipment including 
computers (CPC 845) 
     
 TN/S/O/IND 
Page 10 Modes of supply:    1) Cross-border supply 2)  Consumption abroad 3)  Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on National Treatment Additional Commitments 
C. Research and 
Development Services  
 
(a) R&D services on the 
following natural 
sciences only: 
 Heat, light, 
electromagnetism, 
astronomy, but 
excluding atomic 
energy and related matters (CPC 85101)  
 1) Unbound 
2) Unbound* 
3) Only through incorporation with a foreign 
equity ceiling of 51 per cent and further 
subject to the condition that in the case of 
foreign investors having prior collaboration 
in that specific service sector in India, FIPB 
approval would be required. 
4) Unbound except as indicated in the horizontal 
section. 1) Unbound 
2) Unbound* 
3) None 
  
 
  
4) Unbound except as indicated in the 
horizontal section.  
Engineering and 
technology, including 
applied science and technology for casting, 
metal, machinery, 
electricity, 
communications, 
vessels, aircrafts, civil engineering, 
construction, 
information, etc. (CPC 85103) 
    
F. Other Business 
Services  
(e) Technical testing and 
analysis services (CPC 8676) 1) Unbound 
2) Unbound 
3) Only through incorporation with a foreign 
equity ceiling of 51 per cent and subject to the 
condition that in the case of foreign investors 
having prior collaboration in that specific 
service sector in India, FIPB approval would be required. 
4) Unbound except as indicated in the horizontal 
section 
 1) Unbound 
2) Unbound 
3) None 
  
 
  
4) Unbound except as indicated in the 
horizontal section   
  TN/S/O/IND
 Page 11Modes of supply:    1) Cross-border supply 2)  Consumption abroad 3)  Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on National Treatment Additional Commitments 
2. COMMUNICATION 
SERVICES 
    
C. Telecommunication 
Services1 
(a) Voice telephone 
service (CPC 7521**) 
 Limited to local/long 
distance, for public use 
over a public 
telecommunication 
transport network  
Wirebased  (i.e., for 
fixed network of 
subscribers).  1) Unbound 
2) Unbound 3) The service will be permitted to be provided 
only after the operator gets a licence from the 
Designated Authority who shall determine the need, if any, for issuance of new licences.  The 
terms and conditions of the licence will be as 
laid down by the Designated Authority or Government or the prevailing laws in the 
country. 
 
 In the case of foreign investors having prior 
collaboration in that specific service sector in 
India, FIPB approval would be required. 
 1) Unbound 
2) Unbound 3) Unbound 
 
 The definition and principles on 
the regulatory framework for the basic telecommunication 
services subscribed to by India 
are contained in the annex titled "Explanatory Paper on 
Additional Commitments by 
India".  
T
he subject of opening up of 
national long distance service 
beyond service area to 
competition will be reviewed in 
the year 1999.  
 
(b) Packet Switched Data 
Transmission  Services 
(CPC 7523**)  
(i) Radio Paging 
Service (CPC 
7523**) 
  There will be one operator other than 
Department of Telecommunications (DOT)/Mahanagar Telephone Nigam Ltd. 
(MTNL) in each service area for a period of 10 
years from the grant of licence after which the 
position will be reviewed. 
  Also the subject of opening up 
of international  service to 
competition will be reviewed in 
the year 2004.)  
                                                      
1 Excluding broadcasting services a nd measures affecting such services.  Broadcas ting is defined as a fo rm of the uni-directiona l telecommunications intended for large number of users 
having appropriate receiving facilities and carried out by means of radio or cable network. This may include sound transmission , television transmission or ot her types of transmission. 
  
 TN/S/O/IND 
Page 12 Modes of supply:    1) Cross-border supply 2)  Consumption abroad 3)  Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on National Treatment Additional Commitments 
(c) Circuit switched data 
transmission services 
(CPC 7523**) 
 
(d) Telex Service 
(CPC 7523**) 
 (e) Telegraph Service 
(CPC 7522**)  
 
(f) Facsimile Service 
(CPC 7521**  + 
7529**) 
 
(g) Private Leased Circuit 
Services (CPC 7522** 
+ 7523**) 
  The private operator should be a company 
registered in India in which total foreign equity must not exceed 25 per cent. 
 
 Service operator will be permitted to provide 
long distance service with in the licensed service 
area only. 
  Resale of voice telephone services is will not be 
permitted.  However, licensees can grant 
franchises on commission basis for providing public call offices (PCOs) service. 
 
 The detailed terms and conditions for providing 
the service will be as per licence conditions.   
(o) Others 
 
(i) Cellular mobile 
telephone services. 
(ii) V-SAT service 
  There will be two cellular service operators in 
each service area, including one Public Sector 
operator.    
 4) Unbound except as indicated in the horizontal 
commitments. 
 4) Unbound except as indicated in the 
horizontal commitments.  
(c) Circuit switched data 
transmission services 
(CPC 7523**)  1)  Unbound  
2) Unbound  
3) Licensed voice telephone service operators 
will be permitted for transmission of da ta on 
the PSTN2 network in its licensed service 
area.  
4) Unbound except as indicated in the horizontal 
commitments  
 1)  Unbound  
2)  Unbound  
3) Unbound  
  
 
4)
 Unbound except as indicated in the 
horizontal commitments   
                                                      
     2 PSTN refers to Public Switched Vo ice Telephone Network which is operate d by DoT/MTNL or licensed operator.   
  TN/S/O/IND
 Page 13Modes of supply:    1) Cross-border supply 2)  Consumption abroad 3)  Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on National Treatment Additional Commitments 
f) Facsimile services 
(CPC 7521**)  1)  Unbound  
2) Unbound  
3)  Licensed voice telephone service operators 
will be permitted for transmission of facsimile 
on the PSTN network in its licensed service 
area.  Franchisees of service operators can 
provide commercial facsimile services  
4) Unbound excep t as indicated in the horizontal 
commitments  
 1)  Unbound  
2) Unbound  
3) Unbound  
  
 
 4)
 Unbound except as indicated in the 
horizontal commitments   
(g) Private Leased Circuit 
Services (CPC 
7522**)  1) Unbound  
2) Unbound  
3)  Licensed voice telephone service o perators 
will be permitted to provide leased circuits  to 
their customers, for their own use within their 
licensed service area.  Resale of such leased 
circuits will not be permitted.  
4) Unbound except as indicated in the horizontal 
commitments  
 1) Unbound  
2) Unbound  
3) Unbound  
  
 
 4)
 Unbound except as indicated in the 
horizontal commitments   
Data and message 
transmission services, the following: 
 
(h) Electronic mail  
(CPC 7523**) 
 
(i) Voice mail  
(CPC 7523**) 
 1)  None 
2) Unbound 3) Only through incorporation with a foreign 
equity  ceiling of 51 per cent. 
 In the case of foreign investors having 
prior collaboration in that specific service 
sector in India, FIPB approval would be 
required. 
4)  Unbound except as indicated in the horizontal 
section. 
 1) None 
2) Unbound 3) None 
 
  
 
 4)  Unbound except as i ndicated as indicated in 
the horizontal section.   
 TN/S/O/IND 
Page 14 Modes of supply:    1) Cross-border supply 2)  Consumption abroad 3)  Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on National Treatment Additional Commitments 
(j) On-line information 
and data  base retrieval 
(CPC 7523**) 
 (l) Enhanced / value 
added facsimile 
services, including store and forward, 
store and retrieve 
(CPC 7523**) 
 
(n) On-line information 
and/or data processing 
(CPC 843**) 
    
(o) Other  
 
 Cellular mobile 
telephone  services.  1) Unbound  
2) Unbound  
3) The service will be permitted to be provided 
only after the operator gets a licence from the 
Designated A uthority who shall determine the 
need, if any, for issuance of new licences.  
The terms and conditions of the licence will 
be as laid down by the Designated Authority 
or Government or the prevailing laws in the 
country  1) Unbound  
2) Unbound  
3) Unbound  
  
  Only digital (GSM) technology will be 
permitted and this will only be terrestrial 
based.  
   
  There will be two cellular service operators in 
each service area.  The position will be 
reviewed after 10 years.  The right of 
DoT/MTNL to enter into each serv ice area is 
reserved.    
  The private operator should be a company 
registered in India in which total foreign 
equity must not exceed 25%.  
    
  TN/S/O/IND
 Page 15Modes of supply:    1) Cross-border supply 2)  Consumption abroad 3)  Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on National Treatment Additional Commitments 
  The detailed terms and conditions for 
providing the service will be as per licence 
conditions.    
 4)  Unbound e xcept as indicated in the horizontal 
commitments.  
 4) Unbound except as indicated in the 
horizontal commitments.   
D. Audiovisual Services  
 (a) Motion picture or 
video tape distribution 
services (CPC 96113) 
 1) Unbound 
2) Unbound* 3) (i) Only through representative offices which 
will be allowed to function as branches of 
companies incorporated outside India. 
 
(ii) Import of titles restricted to 100 per year 
 1) Unbound 
2) Unbound* 3) Subject to the prescribed authority having 
certified that the motion picture has: 
(a) won an award in any of the international 
film festivals notified by the Ministry of 
Information & Broadcasting, Government of 
India; or 
(b) participated in any of the official sections of 
the notified international film festivals; or 
(c) received good reviews in prestigious film 
journals notified by the Ministry of 
Information & Broadcasting, Government of 
India  
 4) Unbound except as i ndicated in the horizontal 
section. 4) Unbound except as indicated in the 
horizontal section 
   
 TN/S/O/IND 
Page 16 Modes of supply:    1) Cross-border supply 2)  Consumption abroad 3)  Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on National Treatment Additional Commitments 
3. CONSTRUCTION 
AND RELATED 
ENGINEERING 
SERVICES 
    
B. Construction work for 
civil   engineering  
    
Roads & Bridges only: 
 
Construction of highways, streets, railways, runways, 
bridges, tunnels, subways, 
waterways, harbours, dams, pipelines, communication 
lines, power lines and 
construction work of constructions for mining and 
manufacturing not 
elsewhere classified e.g. 
power plants, iron foundries, 
blast furnaces and coke ovens. It excludes 
construction work of 
warehouses and industrial buildings, residential and 
non-residential buildings. 
(CPC Ex. 513)  1) Unbound*
     None  
2) Unbound*      None  
3) Only through incorporation with a foreign 
equity ceiling of 51 per cent, and subject to 
the condition that in the case of foreign 
investors having prior collaboration in that specific service sector in India, FIPB 
approval would be required. 
4) Unbound except as indicated in the horizontal 
section. 
 1) Unbound*
  None  
2) Unbound*   None  
3) None  
 
  
 
4) Unbound except as indicated in the 
horizontal section. 
   
  TN/S/O/IND
 Page 17Modes of supply:    1) Cross-border supply 2)  Consumption abroad 3)  Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on National Treatment Additional Commitments 
7. FINANCIAL SERVICES 
The commitments in financial services are ma de in accordance with the General Agreement on Trade in Services and the Annex on F inancial Services.  All the 
commitments are subject to entry requirements, domestic laws, ru les and regulations and the terms and conditions of the Reserve  Bank of India, Securities and Exchange 
Board of India and any other co mpetent authority in India. 
A. Insurance and  
Insurance Related 
Services  
 
 Non-life, limited to 
insurance of freight  
 Ex. 5(a)(i)(B) 
 1) Unbound except in the case of insurance of 
freight, where there is no requirement that 
goods in transit to and from India should be 
insured with Indian insurance companies only.  Insurance is taken by the buyer or seller in 
accordance with the terms of the contract.  
This position will be maintained.  Once under a contract the Indian importer or exporter 
agrees to assume the responsibility for 
insurance such as in the case of f.o.b. contracts 
for imports into India or c.i.f. contracts for 
exports from India, insurance has to be taken 
only with an Indian insurance company. 1) Unbound 
  
 2) Unbound 
3) Unbound  
4) Unbound except as indicated in the horizontal 
section 
 2) Unbound 
3) Unbound 
4) Unbound except as indicated in the 
horizontal section  
 Reinsurance and 
retrocession  
 5(a)(ii) 1),2) Reinsurance can be taken with foreign 
reinsurers to the extent of the residual 
uncovered risk after obligatory or statutory placements domestically with Indian 
insurance companies. 
3) Unbound 4) Unbound except as indi cated in the horizontal 
section 
 1) Unbound 
2) Unbound 
  
 
3) Unbound 4) Unbound except as indicated in the 
horizontal section 
   
 TN/S/O/IND 
Page 18 Modes of supply:    1) Cross-border supply 2)  Consumption abroad 3)  Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on National Treatment Additional Commitments 
 Insurance 
intermediation, limited 
to reinsurance 
 Ex. 5(a)(iii) 1),2)  Reinsurance of domestic risks can be placed 
with foreign reinsurers through overseas 
brokers, to the extent mentioned under 
reinsurance and retrocession. 
3) (i) Overseas broker s are allowed to have 
resident representatives and representative 
offices who can procure reinsurance business from Indian insurance companies to the extent 
mentioned above.  They can also place 
reinsurance business from abroad with Indian 
insurance companies.  
 (ii) Except for the bus iness indicated above, 
the resident representatives and representative 
offices cannot undertake any other activity in India.  
 (iii) All expenses of the resident 
representatives and representative offices have 
to be met by remittances from abroad and no income can be received in India from Indian 
residents. 
4) Unbound except as indicated in the horizontal 
section 
 1) Unbound 
2) Unbound 
 
 3) Unbound 
 
  
 
 
 
 
 
 
  
 
 
4) Unbound except as indicated in the 
horizontal section   
  TN/S/O/IND
 Page 19Modes of supply:    1) Cross-border supply 2)  Consumption abroad 3)  Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on National Treatment Additional Commitments 
The following section has be en re-formulated to bring it in conformity with the Financial Serv ices Sector listed in the Annex o n Financial Services. 
 
B. Banking and other 
financial services 
(excluding insurance)  
 
1.(i) Acceptance of deposits 
and other repayable 
funds from the public 
5(a)(v) 
 
(ii) Lending of all types, 
including consumer 
credit, mortgage 
credit, Factoring   and 
financing of commercial 
transactions b
ut 
excluding factoring  
Ex. 5(a)(vi) 
 
(iii) All payment and 
money transmission 
services including 
credit, charge and debit cards, travellers 
cheques and bankers' 
drafts 
5(a)(viii) 
 
  
 
  
1) Unbound 
2) Unbound 3) In each of the services given below in which 
commitments are being undertaken for 
non-banking financial services companies, access is subject to fulfilment of minimum 
capitalization norms . 
 
 For all activities listed in this section of the 
Schedule excluding factoring and venture 
capital 
 
(i) Only through branch operations of a foreign 
bank licensed and supervised as a bank in its 
home country. 
 
 
(ii) Grant of licence as permissible under existing 
laws.   
 
  
1) Unbound 
2) Unbound 3) For all activities listed in this section of the 
Schedule excluding factoring and venture 
capital 
 
 (i) Foreign banks are required to constitute 
Local Advisory Boards consisting inter alia 
of professionals and persons having 
expertise in areas such as small -scale 
industry and exports.  The Chairman and 
members of the Local Ad visory Board must 
be resident Indian nationals except for the 
Chief Executive Officer who may be a 
foreign national.  The appointment of 
Chairman and members of the Board 
requires Reserve Bank of India approval.  
 (ii) Public sector enterprises can invest 
surplus funds in term deposits only with scheduled commercial banks incorporated in 
India. 
 
   
 TN/S/O/IND 
Page 20 Modes of supply:    1) Cross-border supply 2)  Consumption abroad 3)  Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on National Treatment Additional Commitments 
(iv) Guarantees and 
commitments 
5(a)(ix)  
(v) Trading for own 
account of the 
following : 
 
 (a) money market 
instruments (including 
cheques, bills, 
certificates of deposits)  
 (b) foreign exchange 
 (c) transferable 
securities 
  Ex. 
5(a)(x)(A)(B)(E) 
 
(vi) Asset Management, 
confined to  Portfolio 
management, custodial 
and trust services 
Ex. 5(a)(xiii) 
 (iii) A limit of twelve  fifteen  licences per year 
both for new entrants and existing banks. 
 
(iv) Banks are allowed to install ATMs at 
branches and at other places identified by 
them.  Installation of ATM at a place other 
than in licensed branches is treated as a new place of business and requires a licence.  
Licences issued for ATMs installed by foreign 
banks will not be included in the ceiling of 
twelve
 fifteen  licences referred to in item (iii) 
above.  
(v) Investments in other financial services 
companies by branches of foreign banks licensed to do banking business in India 
individually not to exceed 10 per cent of 
owned funds or 30 per cent of the invested company's capital whichever is lower. 
 
(vi) Licences for new foreign banks may be denied 
when the maximum share of assets in India 
both on and off balance sheet of foreign banks to total assets both on and off balance sheet of 
the banking system exceeds 15 per cent.   
(vii) Clearing services for 
other banks for 
cheques, drafts and other instruments 
Ex. 5(a)(xiv) 
     
  TN/S/O/IND
 Page 21Modes of supply:    1) Cross-border supply 2)  Consumption abroad 3)  Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on National Treatment Additional Commitments 
 
 
 
  
 
  
 
3.
 Stock broking  
 (vii) Foreign banks are subject to 
non-discriminatory resource allocation 
requirements.  
 
(viii)  In addition, foreign banks are permitted 
to invest in private sector banks through 
the FDI route subject to foreign equity ceiling of 49 per cent. 
 
For transferable securities
 [ 5 (a) (x) (E) ] 
(ix) In addition to the above , through 
establishment of locally incorporated joint venture company with foreign equity not 
exceeding 49
 74 per cent. The foreign equity 
participation will be limited to recognized foreign stock broking companies . 
  
 
 
  
 
  
For transferable securities
 [ 5 (a) (x) (E) ] 
(iii) Unbound except fo r entities established in 
accordance with the lim itations specified in 
the market access column 
  
 4) Unbound except as indicated in the horizontal 
section 
 
For Factoring  
1) Unbound 
2) Unbound 3) Allowed for foreign financial services 
companies (including
  excluding  banks) 
through incorporation with foreign equity not exceeding 51
 74 per cent. 
 4) Unbound except as indicated in the 
horizontal section 
 
For Factoring  
1) Unbound 
2) Unbound 
3) Unbound except for entities established in 
accordance with the lim itations specified in 
the market access column.  
   
 TN/S/O/IND 
Page 22 Modes of supply:    1) Cross-border supply 2)  Consumption abroad 3)  Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on National Treatment Additional Commitments 
  Allowed for banks through incorporation with 
foreign equity not exceeding 51 per cent 
4)  Unbound except as indicated in the horizontal 
section 
 
Venture Capital  
1) Unbound 
2) Unbound  
 
 
4) Unbound except as indicated in the 
horizontal section 
 
Venture Capital  
1) Unbound 
2) Unbound  
 3)(i) Allowed for foreign financial services 
companies (including  excluding  banks) 
through incorporation with foreign equity not 
exceeding 51  74 per cent. 
  Allowed for banks through incorporation with 
foreign equity not exceeding 51 per cent 
 (ii) Funding has to be entirely out of equity. 
 3)   Unbound except for entities established in 
accordance with the lim itations specified in 
the market access column 
 
 
 
   
 4) Unbound except as indicated in the  horizontal 
section 
 4) Unbound except as indicated in the 
horizontal section  
2. Financial leasing 
 5(a)(vii)  1) Unbound 
2) Unbound 
3) Allowed for foreign financial services 
companies (including   excluding  banks) 
through incorporation with foreign equity not 
exceeding 51  74 per cent. 
 1) Unbound 
2) Unbound 
3) Unbound except for entities established in 
accordance with the lim itations specified in 
the market access column. 
  
  Allowed for banks through incorporation with 
foreign equity not exceeding 51 per cent 
4) Unbound except as indicated in the horizontal 
section 
  
  
4) Unbound except as indicated in the 
horizontal section   
  TN/S/O/IND
 Page 23Modes of supply:    1) Cross-border supply 2)  Consumption abroad 3)  Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on National Treatment Additional Commitments 
2.3. Participation in issues 
of all kinds of 
securities, including 
underwriting and placement as agent 
(whether publicly or 
privately) and provision of services 
related to such issues 
5(a)(xi)   1) Unbound 
2) Unbound 
3)(i) Allowed for foreign bank branches licensed to 
do banking business in India. 
(ii) Allowed for foreign financial services 
companies (including
  excluding  banks) 
through incorporation with foreign equity not exceeding 51
 74 per cent. 
 
 Allowed for banks through incorporation with 
foreign equity not exceeding 51 per cent 
 1) Unbound 
2) Unbound 
3) Unbound except for entities established in 
accordance with the lim itations specified in 
the market access column. 
 
  
 4) Unbound except as indicated in the horizontal 
section 
 4) Unbound except as indicated in the 
horizontal section  
4. Money broking 
5(a)(xii)  1) 2) and 3) Unbound 
4) Unbound except as indicated in the 
horizontal section 
 1) 2) and 3) Unbound 
4) Unbound except as indicated in the 
horizontal section   
5. Provision and 
transfer of financial 
information, and financial data 
processing and 
related software by suppliers of other 
financial services 5 
(a) (xv) 1) and 2) None 
3) Unbound 
4) Unbound except as indicated in the 
horizontal section 1) and 2) None 
3) Unbound 
4) Unbound except as indicated in the 
horizontal section 
   
 TN/S/O/IND 
Page 24 Modes of supply:    1) Cross-border supply 2)  Consumption abroad 3)  Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on National Treatment Additional Commitments 
4.6. Financial consultancy 
services, i.e. financial 
advisory services 
provided by financial advisers, etc. to 
customers on financial 
matters, investment and portfolio research 
and advice, advice on 
acquisitions and on 
corporate restructuring 
and strategy 
         Ex. 5(a)(xvi) 
 1) Unbound 
2) Unbound 
3)(i) Allowed for Foreign bank branches licensed to 
do banking business in India. 
(ii) Allowed for foreign financial services 
companies (including banks) through 
incorporation with foreign equity not exceeding 51 per cent. 
4) Unbound except as indicated in the horizontal 
section 
 
 
 1) Unbound 
2) Unbound 
3) Unbound except for entities established in 
accordance with the lim itations specified in 
the market access column.  
 
  
4) Unbound except as indicated in the 
horizontal section 
  
8. HEALTH RELATED 
AND SOCIAL 
SERVICES 
 
A. Hospital Services   
 (CPC  9311) 1) Unbound*  None for provision of services on 
provider to provider basis such that the 
transaction is between two established medical institutions, covering the areas of 
second opinion to help in  diagnosis of cases 
or in the field of research. 
2)  Unbound
 None.  1) Unbound*     None.  
 
  
 
 
2) Unbound 
     None.   
 3) Only through incorporation with a foreign 
equity ceiling of 51   74 per cent  and subject 
to the condition that the latest technology for 
treatment will be brou ght in and further 
subject to the condition that in the case of foreign investors having prior collaboration 
in that specific service sector in India, FIPB 
approval would be required. Publicly funded services may be available only to 
Indian citizens or may be supplied at 
differential prices to  persons other than 
Indian citizens. 
4) Unbound except as indicated in the horizontal 
section 
 3) None  
  
 
  
 
  
 
  
4) Unbound except as indicated in the 
horizontal section   
  TN/S/O/IND
 Page 25Modes of supply:    1) Cross-border supply 2)  Consumption abroad 3)  Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on National Treatment Additional Commitments 
9.  TOURISM AND 
TRAVEL RELATED 
SERVICES 
 A.  Hotels and other 
lodging services  
(CPC Ex. 641) 
 
 
  
 
 
1) Unbound* 2) Unbound
    None 
3) Only through incorporation with a foreign 
equity ceiling of 51 per cen t  and subject to 
the condition  that in the case of foreign 
investors having prior collaboration in that 
specific service sector in India, FIPB 
approval would be required.   
 
 
1) Unbound* 2) Unbound
  None  
3) None 
 
  
 4) Unbound except as indicated in the horizontal 
section 
 4) Unbound except as indicated in the 
horizontal section 
  
B.  Travel Agency and 
Tour Operator Services  
(CPC747)  
 (CPC7471) 1) Unbound   
2) Unbound   None   
3) Only through incorporation in with a foreign 
equity ceiling of 51 per cent    and subject to 
the condition that in the case of foreign 
investors having prior collaboration in that 
specific service sector in India, FIPB 
approval would be required. 
4) Unbound except as indicated in the horizontal 
section 
 1) Unbound   
2) Unbound      None 
3) None  
 
 
 
 4) Unbound except as indicated in the 
horizontal section   
 TN/S/O/IND 
Page 26 Modes of supply:    1) Cross-border supply 2)  Consumption abroad 3)  Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on National Treatment Additional Commitments 
11.A. MARITIME TRANSPORT SERVICES 
 
The commitments in Maritime Transport are ma de in accordance with the General Agreement on Trade in Services.  All commitments are subject to domestic 
laws, entry requirements, rules and regulations and the terms a nd conditions of the Directorate General of Shipping, Reserve Ba nk of India and any other 
competent authority in India.  For supply of Maritime Auxiliary Services throug h commercial presence under Mode 3, it will be o nly through Indian registered 
company 
International Transport  
 
(Freight and Passengers 
excluding cabotage and 
offshore transport as 
defined in Annex ‘A’) 1)(a)  Liner Shipping: None, except 
- At least 40 per cent of cargo carried by liner 
shipping companies must be reserved for Indian Flag ships. 
- Preference will be given to Indian Flag 
vessels for government cargoes; and Government owned/ controlled cargo 
- Government policy on FOB/ FAS imports 
and export on CIF/ C&F basis will hold good. 1)(a) Liner Shipping: None, except that in liner 
trade (Not restricted to liner conference 
trade) between India and such countries which are contracting parties to the UN 
Convention on code of conduct for liner 
conferences, the provisions of the said convention will apply. Access to and use of Port 
Facilities  
No measures shall be applied to the following services which 
deny reasonable and non-
discriminatory access to international maritime 
suppliers: 
 
 - Indian flag vessels will have the first right 
of refusal for carrying such cargo and only 
thereafter can foreign fl ag ships be allowed 
to be in-chartered/ ta ken on international 
rental basis.  1. Pilotage 
2. Towing, Tug assistance & 
pushing, 
3. Provisioning, fuelling & 
watering, 
4. Garbage collecting & 
ballast waste disposal 
 
   5. Port Captain services, 
6. Navigation aids, 
7. Shore based operational 
services essential to ship 
operations, including 
communications, water and electrical supplies,  
8. Emergency repair 
facilities,  
9. Anchorage, berth and 
berthing services  
  TN/S/O/IND
 Page 27Modes of supply:    1) Cross-border supply 2)  Consumption abroad 3)  Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on National Treatment Additional Commitments 
 1) (b)Bulk Shippi ng: None, Except 
 
(i) Dry, Liquid and Gas other than LNG: 
 - Preference will be given to Indian Flag 
vessels for government cargoes; and 
Government. Owned/ controlled cargo. 
- Government policy on FOB/ FAS imports 
and export on CIF/ C&F basis will hold 
good. 1)(b) Bulk Shipping: None, Except 
 
(i) Preference will be given to Indian Flag 
Vessels. 
 
- Preference will be given to Indian Flag 
vessels for government cargoes; and Government owned/ controlled cargo. 
- Government policy on FOB/ FAS imports 
and export on CIF/ C&F basis will hold 
good.  
 - Indian flag vessels will have the first right 
of refusal for carrying such cargo and only 
thereafter can foreign fl ag ships be allowed 
to be in-chartered/ ta ken on international 
rental basis. 
 - Indian flag vessels will have the first right 
of refusal for carry ing such cargo and 
only thereafter can foreign flag ships be allowed to be in-chartered/ taken on 
international rental basis. 
  
 (ii) LNG: Unbound (ii) LNG: Unbound  
 1)(c) Passenger: None 
2) None 1)(c) Passenger: None 
2) None  
 3)(a) None, but condition that for operating a 
ship under the Indian  flag, a registered 
company, or a cooper ative society under 
any Central Act or State Act having its 
principal place of business in India, must be established.  
3)(b) Other forms of commercial presence for the 
supply of International Maritime Transport Services (as per definitions): Unbound 3)(a) None 
  
 
  
3)(b) Unbound  
 4)(a)Ships crews: Unbound 
4)(b)key shore personnel: Unbound  4)(a)Ships crews:  Unbound 
4)(b)key shore personnel:  Unbound   
 TN/S/O/IND 
Page 28 Modes of supply:    1) Cross-border supply 2)  Consumption abroad 3)  Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on National Treatment Additional Commitments 
MARITIME AUXILIARY 
SERVICES     
Maritime Cargo Handling 
services 1)  Unbound* 
2)  None 
3)  None, except as i ndicated in Horizontal 
commitment/ Head Note to this Schedule 
4)  None 
 1)  Unbound* 
2)  None 
3) None, except as indi cated in Horizontal 
commitment/ Head Note to this Schedule 
4) None  
Storage and Warehousing 
services in Ports 1) Unbound* 
2)  None 
3)  None, except as i ndicated in Horizontal 
commitment/ Head Note to this Schedule 
4)  None 1)  Unbound* 
2)  None 
3)  None, except as i ndicated in Horizontal 
commitment/ Head Note to this Schedule 
4)  None 
  
Customs Clearance 
Services 1) Unbound* 
2) None 
3)  Unbound 4)  Unbound 1)  Unbound* 
2)  None 
3) Unbound 4)  Unbound 
  
Container Station and 
Depot Services 1) Unbound* 
2) None 
3) None, except as indi cated in Horizontal 
commitment/ Head Note to this Schedule 
4) None 1) Unbound* 
2)  None 
3)  None, except as i ndicated in Horizontal 
commitment/ Head Note to this Schedule 
4)  None 
  
Maritime Agency Services 1)  None 
2) None 
3) None, except as indi cated in Horizontal 
commitment/ head Note to this Schedule 
4) None 1)  None 
2)  None 
3)  None, except as i ndicated in Horizontal 
commitment/ head Note to this Schedule 
4)  None 
  
Maritime Freight 
Forwarding Services 1)  None 
2)  None 
3)  None, except as i ndicated in Horizontal 
commitment/ head Note to this Schedule 
4)  None 
 1) None 
2)  None 
3)  None, except as i ndicated in Horizontal 
commitment/ head Note to this Schedule 
4) None   
  TN/S/O/IND
 Page 29Modes of supply:    1) Cross-border supply 2)  Consumption abroad 3)  Commercial presence 4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on National Treatment Additional Commitments 
International rental/ 
charter of vessels with 
crew or on bareboat basis 
(excluding cabotage and offshore transport) 1) Unbound 
2) None except obtain ing permission from 
Director General (Shipping) for chartering 
a foreign flag vessel in the absence of availability of a suitable Indian vessel. 
3) Unbound 
4)  Unbound 1) Unbound 
2)  None, except vessels rented by Indian 
nationals are considered as foreign 
vessels. 
 
3) Unbound 
4) Unbound   
Maintenance and repairs 
of sea going vessels 1) None 
2)  None 
3)  None, except as i ndicated in Horizontal 
commitment/ head Note to this Schedule 
4)  None 
 1)  None 
2)  None 
3)  None, except as i ndicated in Horizontal 
commitment/ head Note to this Schedule 
4) None  
 
(*) Unbound due to lack of technical feasibility TN/S/O/IND 
Page 30  
 
 Explanatory Paper on
 
Additional Commitments by India  
 
 Scope
 
 
The following are definitions and principles on the regulatory framework for the basic 
telecommunications services.  Definitions
 
 
Users  mean service consumers and service suppliers. 
 Essential facilities
 mean facilities of a public telecommunications transport network or service that 
 
(a) are exclusively or predominantly provided  by a single or limited number of suppliers; 
and 
 
(b) cannot feasibly be economically or tec hnically substituted in order to provide a 
service. 
 
A major supplier  is a supplier which has the ability to mate rially affect the terms of participation 
(having regard to price and supply) in the releva nt market for basic telecommunications services as a 
result of :  
(a) control over essential facilities; or 
 
(b) use of its position in the market. 
 1. Competitive 
Safeguards  
 
Appropriate measures shall be maintained fo r the purpose of preventing service suppliers 
from engaging in or continuing in anti-co mpetitive practices of the following type: 
 
(a) using information obtained from comp etitors with anti-competitive results; and 
 
(b) not making available to other services suppliers on a timely basis technical 
information about essential facilities and co mmercially relevant information which 
are necessary for them to provide services. 
 2. Interconnection
 
 2.1 This section applies to linking with suppliers  providing public telecommunications transport 
network or services in order to allow the users of  one supplier to communicate with users of another 
supplier and to access services provided by anothe r supplier, where specific commitments are 
undertaken.  2.2 Interconnection to be ensured
 
 
Interconnection with a major supplier will be en sured at any specified feasible point in the 
network as indicated in the licence.  Such interconnection is provided: 
 
(a) of a quality no less favourable than that  provided for its own like services or for like 
services of non-affiliated service suppliers or for its subsidiaries or other affiliates;  TN/S/O/IND 
 Page 31 
 
 
  
(b) upon request, at points in addition to the network termination points offered to the 
majority of users as per licence conditions , subject to mutually agreed charges.  
 2.3 Public availability of the pro cedures for interconnection negotiations
 
 
The procedures applicable for interconnecti on to a major supplier will be made publicly 
available.   2.4 Transparency of interconnection arrangements
 
 
It will be ensured that a major supplie r will make publicly available either its interconnection 
agreements, or a reference interconnection offer.  2.5 Interconnection: dispute settlement
 
 
A service supplier requesting interconnection with  a major supplier will have recourse, either: 
 
(a) at any time or 
 
(b) after a reasonable period of time which has been made publicly known 
 
to a domestic authority to resolve disputes regarding appropriate terms, conditions and rates 
for interconnection within reasonable period of time, to the extent that these have not been established 
previously.  
3. Universal service
 
 
India retains the right to define the kind of universal service obligation it wishes to maintain. 
Such obligations are  not regarded as anti-competitive per se, since they would be administered in a 
transparent and non-discriminatory manner.  
4. Public availability of licensing criteria
 
 
Where a licence is required, the following will be made publicly available: 
 
(a) All the licensing criteria, and  
 
(b) The terms and conditions of individual licences. 
 5. Regulatory Authority
 
 
The decisions of and the procedures used by th e regulatory authority shall be impartial with 
respect to all  market participants.   
 
The regulatory body is separate from, and not accountable to, any supplier of basic 
telecommunications services. The decisions of, a nd the procedures used by, regulators shall be 
impartial with respect to all market participants.  
 TN/S/O/IND 
Page 32  
 
 6. Allocation and use of scarce resources
 
 
Any procedures for the allocation and use of scarce resources, including frequencies, numbers 
and rights of way, will be carried out in an objective and timely manner. The current state of 
allocated frequency bands will be made publicly  available, but detailed identification of 
frequencies allocated for specific government uses is not required.  TN/S/O/IND 
 Page 33 
 
 
 Definitions Related to Section 11.A. – Maritime Transport Services  
 
1. “International Transport (Freight and Passeng er)”, for the purpose of this schedule, is 
to mean transportation of international Mari time Freight and Passengers by sea going vessels 
from the port of loading in one country to the port of discharge in another country. 
2. Cabotage: This Schedule does not in clude any commitments on “Cabotage” or 
“Maritime Transport Services” which are descri bed as transportation of passengers or goods 
between any port located in India and any other port also located in India and traffic originating and terminating in the same port  located in the country and further includes 
transportation of passengers or goods between a port located in India and installation and 
structures situated on the continental shelf of India. 
3. Offshore Transport: for the purposes of th e schedule only, “Offshore Transport” refers 
to shipping services involving the transportation  of passengers or goods between a port located 
in India and any location installation or stru cture associated with or incidental to the 
exploration or exploitation of natural resources of  the continental shelf of India, the seabed of 
the Indian coastal seas and the subsoil of the seabed, or situated on the continental shelf of 
India. 
4. “Other forms of Commercial Presence for the supply of International Transport 
Services” means ability for International Mari time Transport Service suppliers to undertake 
local activities which are necessary for the suppl y to their customers of a partially or fully 
integrated transport service, within which maritime transport constitutes a substantial element. 
 These activities include, but are not limited to: 
 
a. marketing and sales of maritime transpor t  and related services through direct contact 
with customers, from quotation to invoicing, these services being those operated or offered by the service supplier itself or by  service suppliers with which the service 
seller has established standing business arrangements; 
b. acquisition on their own about or on behalf of their customers (and the resale to their 
customers) for any transport and related services, including anchorage, berth and berth services, and onward transport services  by any mode, particularly road and rail, 
inland waterways, necessary for the supply of the integrated services; 
c. the preparation of transport documents,  customs documents, or other documents 
related to the origin  and character of goods transported; 
d. the provision of business information, including computerized information systems 
and electronic data interchange; 
e. setting up of business arrangements with  any locally established shipping agency and 
the appointment of personnel recruited loca lly (or, in the case of foreign personnel, 
subject to horizontal commitments on movement of personnel); 
f. organizing any aspect of the call of the vessel or taking control over cargoes; g. the provision of Ships Managers’ Services. 
 NOTE: {In order to enforce certain standards a nd conditions which need to be fulfilled by 
shipping service suppliers, particularly those pr oviding ship personnel and crew and also those 
engaged in providing ships management services, a nd to ensure that the owner, operator, agent 
or manager has:  TN/S/O/IND 
Page 34  
 
 - the capability of implementing international standards as well as IMO stipulations and 
recommendations; 
- the necessary financial structure so th at he is responsible and accountable; 
- the capability of implementing, the sa fety; and marine pollution controls; 
- fulfilled requirements of quality manageme nt and his operations are transparent; 
 
 a system of registration/ licensing of shi pping service supplier is under consideration in 
India} 
 
5. “Ship Managers” means persons entering I ndia as the agents or representatives of a 
ship’s owner or operator for the purposes of  assessing requirements, negotiating and 
authorizing expenditures necessary to the mainte nance and operations of a vessel as well as the 
Handling of Cargo. 
6. “Maritime Cargo Handling Services” means activities exercised by stevedore 
companies, including terminal operators, but not including the direct activities of dock workers, 
when this workforce is organized independently of the stevedoring or terminal operator 
companies.  The activities covered, include the organization and supervision of: 
- the loading/ discharging of cargo to/ from a ship; 
- the lashing/unlashing of cargo; - the reception/delivery and safekeeping of cargoes before shipment or after discharge. 
 
 The organization and supervision includes the arrangements for (1) engaging skilled 
workers (dockworkers), (2) using all necessary  equipment for on board or shore use and 
appropriate storage space, whether by ownershi p, rental or otherwise, (3) the checking of 
parcels and markings, the weighing and measuring of cargo, and (4) the administrative duties 
and responsibilities related to the services. 
 
7.  “Maritime Freight Forwarding Services”  means the activity of organizing and 
monitoring shipments on behalf of shippers thro ugh providing such services as the arrangement 
of actual transport and related services, co nsolidation, aggregation, packing of cargo, 
preparation of documentation and provision of business information.  
8. “Maritime Agency Services” means  activi ties in representing, within a given geographic 
area, the business interests of-one or more shi pping lines or shipping companies for the 
following purposes:  
- marketing and sales of maritime transpor t and related activities from quotation to 
invoicing (cargo booking and canvassing) 
- issuance of bills of lading on behalf of the companies; - acquisition and resale of other necessary related services (settlement of disbursements and claims) preparation of documentation, and provision of business information; - acting on behalf of the companies in organizing the call of the ship or taking control of cargoes; 
- to make arrangement in order to get all necessary port services re quired by the foreign 
vessel during its stay in Indian Ports; - to appoint a stevedoring company for cargo loading and unloading on behalf of its principal; - to collect freight on behalf of the principal.  TN/S/O/IND 
 Page 35 
 
 
  
9. “Custom Clearance Services” (alternati vely Customs House Agents/Brokers) means 
activities consisting of carrying out on behalf of another party customs formalities concerning 
import export or through transport fo cargoes irrespective of whether this is the main or 
secondary activity of the services provider. 
 
10. “Government Cargo” means cargo originat ing from other countries (import cargoes 
including crude oil), petroleum by products, c oal, natural gas, raw materials for fertilizers, 
food-grains etc.) purchased by Indian Governme nt Agencies/ Departments or based on loan/ 
credit agreements with other countries, as well as exports by Indian Government Agencies/ 
Departments including Government aid. 
 11. “Container Station and Depot Services” means activities consisting of storing 
containers, whether in port areas or inland, with  a view to their stuffing/ stripping, repairs and 
making them available for shipments. 
 
12. “Maintenance and Repairs of Vessels” means services such as repairs and management of vessels, mending, fixing or overhauling of a vessel, management of crew and marine insurance, provided on behalf of a maritime passenger or cargo transport business, or vessel leasing business.  
13. “International rental of vessels with crew or  on bare-boat charter basis” means rental 
and/ or leasing services of all types of sea- going vessels with crew or on bare-boat basis 
(whereafter the ship will be manned by Indian nati onals only during the period of rental/ lease) 
for the purposes of international trade (like ta nkers, dry bulk cargo vessels, cargo and freight 
vessels etc).  
 TN/S/O/IND 
Page 36 INDIA – FINAL LIST OF ARTICLE II (MFN) EXEMPTIONS 
 
 
Sector or Sub-sector Description of measure 
indicating its inconsistency with Article II 
 Countries to which the measure applies Intended duration Conditions creating the 
need for the exemption 
2.C  Telecommunication 
services – International 
Service Measure including the 
application of different 
accounting rates for different 
operators/countries covered 
by International Telecommunication Services 
Agreements between Videsh 
Sanchar Nigam Limited and various foreign operators.  
 Countries covered by 
International 
Telecommunication Services 
Agreements between Videsh 
Sanchar Nigam Limited and foreign operators. Indefinite On account of bilateral 
agreements between Videsh 
Sanchar Nigam Limited and 
various foreign operators 
dealing with various aspects 
of cooperation
. 
2.C  Telecommunication 
services – International Service Measures including the 
application of different accounting rates for different 
neighbouring countries 
covered by Telecommunication 
Agreements entered into by 
the Government of India with governments of neighbouring 
countries. 
 Neighbouring countries 
(Pakistan, Bangladesh, Nepal and Bhutan) Indefinite On account of bilateral 
agreements with governments of neighbouring countries.  
  TN/S/O/IND
 Page 37Sector or Sub-sector Description of measure 
indicating its inconsistency 
with Article II 
 Countries to which the 
measure applies Intended duration Conditions creating the 
need for the exemption 
AUDIOVISUAL SERVICES Measures which define norms 
for co-production of motion 
pictures and television 
programmes with foreign countries and grant national 
treatment to motion pictures 
and television programmes co-produced with foreign 
countries which maintain a 
co-production agreement with India. 
 All countries Indefinite The agreements aim at the 
promotion of cultural 
exchange.  
SHIPPING 
(a)  Cargo sharing between bilateral partners 
 
 (b)    Cargo Reservations
  Equality in freight liftings originating in the ports of 
partners to the agreement and 
equality in freight earnings 
Cargo reservation under the 
UN Code of Conduct for 
Liner Conferences, Sharing of cargo between the national 
lines of contracting states and 
third country lines in the ratio of 40:40:20 as provided in the 
Liner Code.  
  
Bulgaria, Pakistan and the United Arab Republic 
 
  
All countries 
  
  
Indefinite 
 
 
  
Indefinite 
 
  
In the context of overall trade relations. 
 
  
To fulfil obligations under the 
covention. 
 
RECREATIONAL 
SERVICES Waiver on the prohibition of 
sale of lottery tickets in India. Bhutan Indefinite It is part of a comprehensive 
bilateral agreement between 
India and Bhutan. 
 
 
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