WORLD TRADE  
ORGANIZATION   
G/SCM/Q2/IND/20 
10 October 2011 
 (11-4943) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
  
 
  
SUBSIDIES 
 
Request from the UNITED STATES to INDIA 
Pursuant to Article 25.10 of the Agreement 
  
 The following communication, dated 6 October 2011, is being circulated at the request of the 
Delegation of the United States.  
_______________ 
 
 
The United States notes that India recently submitted notifications under Article XVI:1 of the 
General Agreement on Tariffs and Trade 1994 (the GA TT 1994) and Article 25.2 of the Agreement on 
Subsidies and Countervailing Measures  (the Agreement) covering the period 2003 through 2009.  Prior 
to these recent notifications, India had not s ubmitted a subsidy notification since 2001.  The 
United States also would note that these notifications only provided information on three export subsidy programs administered by the central government.  At the time India submitted these notifications, the United States and several othe r Members expressed serious concerns about the 
timeliness and completeness of India's notification.  
 
The United States has obtained information concerning numero us Indian central government 
and sub-central government measures, listed below, covering the pe riod from 2004 to the present, that 
were not included in India's recent notifications.  Many of the measures were identified in various countervailing duty investigations conducted by the United States and other Members.  Other measures 
were taken from publicly availabl e information on India's governmental policies to support certain 
industries and exporters in India.  The United States considers that the listed measures s hould be subject 
to notification to the Committee on Subsidies and Countervailing Measures (the Committee) under 
Article XVI:1 of the GATT 1994 and Article 25.2 of the Agreement because they appear to provide specific subsidies within the mean ing of Articles 1.1 and 2 of the Agreement.  The United States 
requests that the listed subsidy me asures be notified to the Committ ee in accordance with Article 25.10 
of the Agreement on Subsidies and Countervailing Measures.   Should a notification not be made 
promptly, the United States reserves its right to ra ise the alleged subsidies for discussion at the next 
regular meeting of the Committee.   
 Finally, the United States would note that to the extent export subsidies listed below benefit 
the textile and apparel sector in I ndia, Article 27.5 of the Agreement requires such subsidies to be 
phased out given that the data indicate that pr oducts in the sector are export competitive.
1  T h e  
United States is not aware of any steps India has taken to do so.  
                                                      
1 G/SCM/132/Add.1/Rev.1, 21 April 2010. G/SCM/Q2/IND/20 
Page 2  
 
   The United States will provide copies of the relevant measures to the Rules Division of the 
Secretariat and request that they be made available electronically upon request.
2 
  
LIST OF MEASURES 
 
I. CENTRAL GOVERNMENT SUBSIDIES 
 
1. Export Oriented Unit ; adopted by the Ministry of Commerce & Industry, Chapter 6 of the 
Foreign Trade Policy (2009-2014) and Chapter 6 of the Handbook of Procedures. 
 
2. Export Promotion Capital Goods ; adopted by the Ministry of Commerce & Industry, 
Chapter 5 of the Foreign Trade Policy (2009-2014) and Chapter 5 of the Handbook of Procedures. 
 
3. Duty Entitlement Passbook ; adopted by the Ministry of Commerce & Industry, Chapter 4.3 of 
the Foreign Trade Policy (2009-2014) and Chapter 4.37 of the Handbook of Procedures.
  
 4. Duty Free Replenishment ; adopted by the Ministry of Commerce & I ndustry, Chapter 4.2 of 
the Foreign Trade Policy (2004-2009) and Chapter 4.31 of the Handbook of Procedures. 
 
5. Advance License/Advance Authorization ; adopted by the Ministry of Commerce & Industry, 
Chapter 4.1.3 of the Foreign Trade Policy (2009-2014) and Chapter 4 of the Handbook of Procedures.
   
 6. Post Shipment Export Financing ; adopted by the Reserve Bank of  India, Master Circular on 
Export Credit in Foreign Currency. 
 7. Pre-Shipment Export Financing ; adopted by the Reserve Bank of  India, Master Circular on 
Export Credit in Foreign Currency. 
 8. Market Development Assistance ;  Market Development Assistance Scheme (Revised 
Guidelines w.e.f 1.4.2006); See http://www.fieo .org/view_section.php?lang=0&id=0,578,579. 
 
9. Steel Development Fund Loans ; adopted by Ministry of Steel, A nnual Report (2010-2011); 
See http://steel.nic.in/Annual%20Report%20( 201011)/English/Annua l%20Report%20(2010-
11).pdf. 
 
10. Duty-Free Import for Garment Exporters ; adopted by the Ministry of Commerce & Industry, 
Customs Notification No.89/2004-cus dated 10.09.2004, as referenced in the Council for 
Leather Exports, "Fiscal measures announced  for leather sector 15 September 2004" 
No. 14/005/176 /2004, available at http:// www.leatherindia.org/oldsite/policy81.asp. 
 
11. Electronic Hardware Technology Park; adopted by the  Ministry of Commerce & Industry, 
Chapter 6 of the Foreign Trade Policy (2009-2014) and Chapter 6 of the Handbook of Procedures.  
 
12. Shipbuilding Subsidy Scheme ; adopted by the Government of India, "Merchant Shipping Act, 
1958," No.44 of 1958, available at http://phovizagport.gov.in/doc%5Cshippingact.pdf. 
 
                                                      
2 Note from the Secretariat:  Interested dele gations are requested to contact Hilary Budd 
(hilary.budd@wto.org) or Judith McGrath (judith.mcgrath@wto.org).  G/SCM/Q2/IND/20 
 Page 3 
 
 
  13. Software Technology Parks of India (STPI) ; adopted by the  Ministry  of Commerce & Industry, 
Chapter 6 of the Foreign Trade Policy (2009-2014) and Chapter 6 of the Handbook of 
Procedures. 
 
14. Focus Market Scheme (FMS) ; adopted by the Ministry of Commerce & Industry, Chapter 3.14 
of the Foreign Trade Policy (2009-2014) a nd Chapter 3.8 of Handbook of Procedures. 
 
15. Focus Product Scheme (FPS) ; adopted by the Ministry of Commerce & Industry, Chapter 3.15 
of the Foreign Trade Policy (2009-2014) a nd Chapter 3.9 of Handbook of Procedures. 
 
16. Market Linked Focus Product Scheme (MLFPS) ; adopted by the Ministry of Commerce & 
Industry, Chapter 3.15.3 of the Foreign Tr ade Policy (2009-2014) and Chapter 3.9.2 of 
Handbook of Procedures. 
 17. Jawaharlal Nehru National Solar Mission (JNNSM);  adopted by the Government of India, 
"Jawaharlal Nehru National Solar Mission (JNNS M) Guidelines for Selection of New Grid 
Connected Solar Projects under Phase 1 of JNNSM" available at  http://nvvn.co.in/Final_Draft_guidelines_for _NVVN.pdf; See also "Jawaharlal Nehru 
National Solar Mission-Towards Building Solar India" available at 
http://pib.nic.in/archieve/others/2009/Nov/mission-JNNSM.pdf. 
 
18. Technology Mission on Cotton (TMC) , adopted by the Ministry of Textiles; "Technology 
Mission on Cotton," April, 2008; available at http://www.texmin.nic.in/policy/policy_scheme.ht m#scheme; See also Ministry of Textiles 
"Compendium of Schemes". 
 
19. Integrated Development of Leather Sector Scheme ; adopted by the Council for Leather 
Exports, Sponsored by the Ministry of Commerce & Industry, "INDIAN LEATHER DEVELOPMENT PROGRAMME (ILDP), Outlay approved by the DIPP for Leather Sector under the Indian Leather Development Progr amme (ILDP) for implementation during 11
th 
Five Year Plan 2007-2012" available at h ttp://www.leatherindia.org/ILDP50109.asp; See also 
"Integrated Development of Leather Sector" available at 
http://www.leatherindia.org/IDLSGuidelinesXIPlan.pdf. 
 
20. Industrial Infrastructure Upgradation Scheme ; adopted by the Ministry of Commerce & 
Industry, "Guidelines on Industrial Infrastru cture Upgradation Scheme" available at  
http://dipp.nic.in/iius/guidelines.pdf. 
 21. Technology Upgradation Fund Scheme (TUFS) ; adopted by the Ministry of Textiles, 
Resolution No.28/1/99 CTI, New Delhi, 31 March 1999; See also "Compendium of 
Schemes".  
 22. The Scheme for Integrated Textile Parks (SITP) ; adopted by the Ministry of Textiles, 
"Guidelines of the Scheme for Integrated Textile Parks during the 11
th Five Year Plan" 
available at http://texmin.nic.in/policy/guidelines_SITP.pdf; See also "Compendium of 
Schemes". 
 23. North East Industrial and Investment Promotion Policy (NEIIP) ; adopted by the Ministry of 
Commerce and Industry, File No.10 (3)/2007- DBA-II/NER  "North East Industrial and 
Investment Promotion Policy (NEIIPP)," 2007  Industrial Policy and Promotion, New Delhi 
1 April 2007; available at  
http://dipp.gov.in/in centive/NEIIPP_2007.pdf.  
 G/SCM/Q2/IND/20 
Page 4  
 
  24. Target Plus Scheme ; adopted by the Ministry of Commerce & Industry, Chapter 3.7.1 of the 
Foreign Trade Policy (2004-2009). 
 25. Duty Free Import Authorization ("DFIA") ; adopted by the Ministry of Commerce & Industry, 
Chapter 4.2 of the Foreign Trade Policy (2009-2014) and Chapter 4.31 of Handbook of 
Procedures. 
 26. Market Access Initiative ("MAI") ; adopted by the Ministry of Commerce & Industry,  
Chapter 3.2 of the Foreign Trade Policy 2009-2014; See also No.11/11/2006-E&MDA Ministry of Commerce & Industry, E&M DA Section New Delhi, 4 January 2007. 
 
27. Wagon Investment Scheme ; adopted by Ministry of Railways, (Railway Board), Freight 
Marketing Circular No. 40 of 2005; See also  Freight Marketing Circular No. 01 of 2006, available at  http://www.indianrailways.gov.i n/uploads/directorate/traffic_comm/freight-
marketing-2k6/fm-01.pdf. 
 
II. STATE LEVEL SUBSIDIES 
 
1. State Sales Tax Incentive;  adopted by the Government of Gujarat, I ndustries & Mines 
Department, Resolution No. INC/1095/2000(1) /1, 11 September 1995, "New Incentive 
Policy-Capital Investment In centive Scheme 1995-2000"; See also the Government of 
Maharashtra, Industries, Energy and Labour Department, Resolution No. IDL 
7079/(2043)/IND-8, 5 January 1980. 
 2. State of Maharashtra Capital Incentives ; adopted by the Government of Maharashtra, 
Industries, Energy and Labour Departme nt, Resolution No. IDL 7079/(2043)/IND-8, 
5 January 1980; See also  "Maharashtra Industr ial Policy (MIP of 2001-2007);" available at 
http://globalmaharashtra.org/Downloads/incentive%20schemes.pdf. 
 3. State of Maharashtra Elec tricity Duty Exemption ; adopted by the Bombay Act No. XL of 1958, 
"The Bombay Electricity Duty Act of 1958" available at http://bombayhighcourt.nic.in/libweb/acts/1958.40.pdf; See also  "Package Scheme of 
Incentives for Industries in Ma harashtra" available at  
http://globalmaharashtra.org/Downloads/incentive%20schemes.pdf. 
 4. State Government of Gujarat for Operations of Captive Port Facilities ; adopted by the Gujarat 
Maritime Board, Notification No. GMB/T/12(25)/37-38/2003/1 (9 July 2003)  
 
5. State of Maharashtra Octroi Refund; "Package Scheme of Incentives of 1983;"  See also 
"Maharashtra Industrial Policy (MIP of 2001-2007);"  available at http://globalmaharashtra.org/Downloads/incentive%20schemes.pdf. 
 6. Pioneer Scheme and Prestigious Scheme ; "1995 Industrial Policy of Gujarat and an Incentive 
Policy of 1995-2000 (1995 IP)" available at http://ic.gujarat.gov.in/industrial-policy/policy-
archive-1995(4).htm; See also Resolution No. IDL 7079/(2043)/IND-8, adopted by 
Government of Maharashtra, Industries, Ener gy and Labour Department, 5 January 1980.   
 7. Bombay Relief Undertaking Act ; adopted by the Government of Gujarat, "The Bombay Relief 
Undertakings (Special Provisions) Act, 1958,  2 December 1958; See also adopted by the 
Government of Maharashtra, "The Bombay Re lief Undertakings (Special Provisions) Act, 
1958," 2 December 1958. 
  G/SCM/Q2/IND/20 
 Page 5 
 
 
  8. State of Jharkhand  Captive Electricity Tax Exemptions ; adopted by the Government of 
Jharkhand, Department of Industries "Industr ial Policy of Jharkhand 2001" available at 
http://unpan1.un.org/intradoc/groups/pub lic/documents/apcity /unpan015038.pdf.  
 
9. State of Jharkhand Interest Subsidy ; adopted by the Government of Jharkhand, Department of 
Industries "Industrial Policy of Jharkhand 2001" available at 
http://unpan1.un.org/intradoc/groups/pub lic/documents/apcity /unpan015038.pdf. 
 
10. State of Jharkhand Mega Units ; adopted by the Government of Jharkhand, Department of 
Industries "Industrial Policy of Jharkhand 2001" available at 
http://unpan1.un.org/intradoc/groups/pub lic/documents/apcity /unpan015038.pdf. 
 
11. State of Jharkhand Pollution Control Equipment Subsidy ; adopted by the Government of 
Jharkhand, Department of Industries "Indus trial Policy of Jharkhand 2001" available 
http://unpan1.un.org/intradoc/groups/pub lic/documents/apcity /unpan015038.pdf. 
 
12. State of Jharkhand Stamp Duty and Registration ;  adopted by the Government of Jharkhand, 
Department of Industries "Industrial Policy of Jharkhand 2001"available at 
http://unpan1.un.org/intradoc/groups/pub lic/documents/apcity /unpan015038.pdf. 
 
13. State of Jharkhand Captive Electricity Generative Plant Subsidy ; adopted by the Government 
of Jharkhand, Department of Industries "Indus trial Policy of Jharkhand 2001" available at 
http://unpan1.un.org/intradoc/groups/pub lic/documents/apcity /unpan015038.pdf. 
 
14. State of Bihar Sales Tax Incentives , adopted by Government of Bihar, "Industrial Incentive 
Policy 2006" available at http://industries. bih.nic.in/Archive/IndPolicy2006en.pdf.  
 
15. New Industrial Policy and Package of  Incentives and Concessions (2001 KIP) ; adopted by the 
Government of Karnataka, "1996-2001 New Industrial Policy and Package of Incentives" 
available at http://karnatakaindustry.gov.in /documents/Industrial_ Policy1996-2001.pdf.  
 
16. New Industrial Policy and Package of  Incentives and Concessions (2006 KIP) ; adopted by the 
Government of Karnataka, "New Industrial Policy and Package of Incentives and Concessions 
(2006-2011 KIP)" available at http://www.karnatakai ndustry.gov.in/documents/Industrial 
%20Policy%202006-11.pdf. 
 
17. Infrastructure Subsidies to the Mega Projects ; adopted by the Government of Maharashtra 
Industries, Energy and Labour Department, "P ackage Scheme of Incentives," No. PSI -1707/ 
(CR- 50)/IND-8 Mantralaya, Mumbai - 400 032, 2007, Resolution, 30 March 2007 
 18. Exemption from Taxes and Fees Under th e Gujarat Special Economic Zone Act ;  adopted by 
the Government of Gujarat, "Gujarat Special  Economic Zone Act (30 March 2004)" available 
at http://ic.gujarat.gov.in/pdf/SEZ_act2004.pdf.  
 
19. Grants and Tax Exemptions Under Jhar khand State Industrial Policy of 2001;  adopted by the 
Government of Jharkhand, Department of In dustries "Industrial Policy of Jharkhand 2001;" 
available at http://unpan1.un.org/intradoc/g roups/public/documents/a pcity/unpan015038.pdf. 
 
20. Benefits Under the Industrial Investment  Promotion Policy 2004-2009 (Chhattisgarh 
Industrial Policy) ; adopted by Government of C hhattisgarh, Commerce and Industries 
Department, "Chhattisgarh's Indus trial Policy (2004-2009)".  
 G/SCM/Q2/IND/20 
Page 6  
 
  21. Grants, Tax Programs and other Subsidies Under the Industrial Investment Promotion Policy 
2005-2010 (Andhra Pradesh Industrial Policy; adopted by the Government of Andhra 
Pradesh, Industries & Commerce Department, "I ncentives for setting up of New Industrial 
Enterprises in Andhra Pradesh- Industrial Investment Promotion Policy (IIPP) 2010-2015- Orders Issued;" available at  http://sisih yd.gov.in/Documents/Left%20Panel/2.MSME% 
20Policy/State%20Industrial%20Policy/New%20Industrial%20Policy%20of%20AP%202010
-15.pdf. 
 
22. West Bengal Incentive Scheme 2004 and 2008 ; adopted by the Government of West Bengal, 
"West Bengal Incentive Scheme 2004;" available at 
http://www.wbidc.com/ab out_wb/incentive.htm. 
 
23. Textile Policy 2006 , adopted by the Government of Punjab, Department of Industries & 
Commerce, No. 5/58/2002/51B/1263, 11 July 2006; available at http://www.pbindustries.gov.in/downloads/No tificationTextilePolicy2006.pdf; See also 
Procedures for Availing Concessions by Mega Projects. 
  
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