G/SCM/Q2/IND/57  
27 July 2022 
(22-5668) Page: 1/2 
Committee on Subsidies and Countervailing Measures  Original:  English  
 
 
SUBSIDIES  
QUESTIONS F ROM CANADA  REGARDING  THE  
NEW AND FULL NOTIFICATION OF INDIA1 
The following communication, dated and received on 2 6 July 2022, is being circulated at the request 
of the delegation of Canada . 
 
_______________  
Canada thanks India for its subsidy notification (G/SCM/N/372/IND) and appreciates its efforts to 
contribute to the transparency of subsidy programs. Canada kindly asks that India respond to the 
following questions.  
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 we ll 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.  
b. Is support under this program limited to specific industries? If so, which industries are 
eligible for receiving support under the program?  
Question 2  
Program VI ( Shipbuilding Financial Assistance Policy ) aims to promot e the shipbuilding industry.  
a. Is the support provided under this program limited to certain sizes or types of ships? If so, 
which ones?  
b. What eligibility requirements have to be met to receive the support?  
 
1 G/SCM/N/372/ IND G/SCM/Q2/IND/57  
 
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  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 support program?  
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 expa nsion and which commences the 
commercial production during the operative 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 o r an existing A&D enterprise that undertakes expansion and 
which commences 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 co mmences the commercial production during the operative period of 
the scheme "? If so, please elaborate on the eligibility requirements.  
b. A presentation published by the Government of Gujarat2 indicates other forms of subsidies 
are available to aerospace and defence industries (e.g. equity support). Could India clarify 
if such support is included under this program?  
Question 5  
Programs XIV.1 ( SGST Reimbursement Scheme ) and XIV.2 ( Interest Subsi dy 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?  
 
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2 https://www.vibrantgujarat.com/assets/img/Sectors/Aerospace -and-Defence.pdf