G/SCM/Q2/IND/59  
 
1 May 2023 
(23-3059) Page: 1/3 
Committee on Subsidies and Countervailing Measures  
  Original: English  
 
 
SUBSIDIES  
REPLIES TO QUESTIONS1 FROM CANADA  REGARDING  THE  
NEW AND FULL NOTIFICATION OF INDIA2 
The following communication, dated and received on 1 May 2023 , is being circulated at the request 
of the delegation of India. 
 
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A. Schemes at the Central Government Level  
Question 1  
The details of Program I ( North East Industrial and Investment Promotion Policy ) indicate 
that the support may be provided to "all new units as well as existing units which go in 
for substantial expansion, unless otherwise specified and which commence commercial 
production within stipulated time period of the scheme ". 
a. Please elaborate on what constitutes "substantial expansion " under the purposes 
of this program.  
Reply : 
 
The "substantial expansion" under the North East Industrial and Investment Promotion Policy 
(NEIIPP) means effecting an increase in the existing units by not less than 25% in the value of fixed 
capital investment in plant and machinery for the purpose of expansion of capacity/modernization 
and diversification.  
 
b. Is support under this program limited to specific industries? If so, which industries 
are eli gible for receiving support under the program?  
Reply : 
 
The support under the North East Industrial and Investment Promotion Policy (NEIIPP) is available 
to eligible industrial units, new as well as existing units on their substantial expansion, located 
anywhere in the underdeveloped and hilly North Eastern Region of India, except industries that are 
excluded from the Scheme such as the industries considered hazardous to public health and 
environment such as tobacco and its substitutes, pan masala, plastics carry bags of less that 
20 microns, refinery products etc. The North East Region covers the States of Arunachal Pradesh, 
Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim.  
 
 
1 G/SCM/Q2/IND/57.  
2 G/SCM/N/372/ IND. G/SCM/Q2/IND/59  
 
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  Question 2  
Program VI ( Shipbuilding Financial Assistance Policy ) aims t o promote the shipbuilding 
industry.  
a. Is the support provided under this program limited to certain sizes or types of 
ships? If so, which ones?  
Reply : 
 
The Shipbuilding Financial Assistance Policy, 2016 covers floating crafts or structures that are eligible 
as per guidelines mentioned in the Shipbuilding Financial Assistance Policy, 2016.  
 
Certain exclusion have been provided for vessels built for Indian buyer or ship owner, vessels made 
of wood, vessels built for defence purposes and vessels built u nder contracts.  
 
b. What eligibility requirements have to be met to receive the support?  
Reply : 
 
Full compliance to the "Guidelines for implementation of the Shipbuilding Financial Assistance 
Policy -2016 is required to be fulfilled for becoming eligible under  this scheme. 
https://shipmin.gov.in/orders/guideline  
 
B. Schemes at the State Government Level  
Question 3  
Program I ( Schemes of the State Government of Andhra Pradesh – Incentives under 
Industrial Development Policy 2015 -20 and 2020 -23) indicates that support may be 
provided to different categories of manufacturing units (e.g. MSME Units, Large units, 
Mega Units).  
a. Which industries within the manufacturing sectors benefits from this suppor t 
program?  
Reply : 
 
The objective of this scheme is to provide support to Micro/Small Enterprises, Medium Enterprises 
and Large Industries. No specific assessment has been done. Support is provided to all 
manufacturing units across all sectors where the policy is applicable.  
 
Question 4  
Program IV.3 ( Scheme for aerospace and defence enterprises ) establishes support for "a 
new A&D enterprise or an existing A&D enterprise that undertakes expansion and which 
commences the commercial production during the ope rative period of the scheme. " It also 
establishes that "assistance under the scheme is only for eligible goods manufactured in 
the eligible unit " and is "applicable to a new A&D enterprise or an existing A&D enterprise 
that undertakes expansion and which c ommences the commercial production during the 
operative period of the scheme. " 
a. Could India clarify if there are additional eligibility requirements beyond 
undertaking "expansion and which commences the commercial production during 
the operative period of t he scheme "? If so, please elaborate on the eligibility 
requirements.  
Reply : 
 
As per the Government Resolution (G.R.), any new A&D enterprise or an existing A&D enterprise 
that undertakes expansion or diversification and which commences commercial productio n during G/SCM/Q2/IND/59  
 
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  the operative period of the scheme and satisfies the conditions specified in the G.R. is eligible for 
assistance.  
 
b. A presentation published by the Government of Gujarat3 indicates other forms of 
subsidies are available to aerospace and defence in dustries (e.g. equity support). 
Could India clarify if such support is included under this program?  
Reply : 
 
Yes, other forms of subsidies like equity support are included under this Government Resolution. 
May please refer https://ic.gujarart.gov.in/large -incentives  details.  
 
Question 5  
Programs XIV.1 ( SGST Reimbursement Scheme ) and XIV.2 ( Interest Subsidy Scheme ) 
indicate that support is available to industrial units in "Priority Sectors ". 
a. Could India please elaborate on what is considered a "Priority Sector " for the 
purposes of these subsidies?  
 
Reply : 
 
The State Government encourages investments in Key Sectors.  These are termed as Priority Sectors. 
These sectors are relating to Agro and food processing, manufacturing of certain items - automobiles, 
auto-components, fly ash product, handicrafts, chemicals and pharmaceuticals, textiles, medical 
oxygen, biotechnolog y, gem stone cutting and polishing, sea food processing, shipbuilding and 
certain services – IT, IT enabled service and ESDM, tourism and hospitality.  
 
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3 https://www.vibrantgujarat.com/assets/img/Sectors/Aerospace -and-Defence.pdf