APPENDIX TABLES India WT/TPR/S/249 
 Page 189 
 
 
 Table AI.1  
Merchandise exports, by group of products, 2006-10 
(US$ and %)  
  2006/07 2007/08 2008/09 2009/10 
Total exports (US$ million) 126, 414.1 163,132.2 185, 295.4 178,751.4 
     
 (% of total) 
  
Total primary products 33.9 37.3 31.6 33.0 
Agriculture 10.6 11.9 10.0 10.4 
Food 8.6 9.7 8.9 8.5 
0423  Rice, milled, semi-m illed 1.2 1.8 1.3 1.3 
0813  Oil-cake, oilseed residues 1.0 1.2 1.2 0.9 
Agricultural raw material 2.0 2.2 1.1 1.9 
2631  Cotton (other than linters), not carded or combed 1.1 1.3 0.3 1.1 
Mining 23.3 25.4 21.6 22.5 
Ores and other minerals 5.0 5.2 3.8 4.6 
2815  Iron ores and concentrates, not  agglomerated 3.1 3.4 2.5 3.4 
Non-ferrous metals 3.3 2.4 2.4 1.7 
6821  Copper anodes; alloys; unwrought 1.5 1.0 0.5 0.7 
Fuels 14.9 17.8 15.3 16.2 
Manufactures 65.0 61.7 65.7 63.9 
Iron and steel 5.6 5.6 5.6 3.5 
Chemicals 11.4 11.0 10.6 11.2 
5429  Medicaments, n.e.s. 1.7 1.6 1.7 2.0 
5169  Organic chemicals, n.e.s. 1.5 1.3 1.3 1.2 
5112  Cyclic hydrocarbons 1.0 0.9 0.7 0.6 
Other semi-manufactures 14.2 14.1 13.4 14.6 
6672  Diamonds (excl. industrial, sort ed) not mounted/set 8.4 8.7 8.6 10.1 
Machinery and transport equipment 11.1 11.7 15.3 13.4 
Power generating machines 0.7 0.8 0.9 0.8 
Other non-electrical machinery 3.2 3.4 3.4 3.0 
Agricultural machinery and tractors 0.3 0.3 0.2 0.2 
Office machines and telecommunicat ion equipment 0.9 0.9 2.4 1.8 
7643  Radio or television transmi ssion apparatus 0.1 0.1 1.3 0.7 
Other electrical machines 2.0 1.9 2.1 1.9 
Automotive products 2.4 2.3 2.7 2.9 
7812  Motor vehicles for the transport of persons, n.e.s. 0.9 0.8 1.3 1.8 
7843  Other motor vehicle parts and accesso ries of 722, 781 to 783 1.0 0.9 0.8 0.7 
Other transport equipment 1.9 2.4 3.8 3.0 
7932  Ships, boats, etc. (excl. pleasure craft, tugs, etc.) 0.6 0.4 1.3 0.6 
Textiles 7.1 6.2 5.2 5.7 
6513  Cotton yarn, excluding thread 1.3 1.2 0.8 0.9 
6531  Fabrics, woven, of synt hetic filament yarn, excl. p ile/chemille 0.4 0.5 0.6 0.8 
6585  Curtains and other textile fu rnishing, n.e.s. 1.0 0.8 0.6 0.7 
Clothing 7.5 6.3 6.3 6.4 
8454  T-shirts, singlets and other vests,  knitted or crochete d 1.2 1.0 1.0 0.9 
8427  Blouses/shirts, womens/girls, not  knitted/crocheted 0.9 0.7 0.7 0.8 
Other consumer goods 8.0 6.8 9.1 9.1 
8973  Jewellery of gold, silver or platinum  metals (except watches) 3.9 3.0 5.6 5.5 
8514  Other footwear, leather or com position leather uppers 0.6 0.6 0.6 0.7 
Other 1.2 1.0 2.7 3.1 
Source :  WTO calculations, based on Depa rtment of Commerce online informa tion, "Export Import Data Bank".  
 Viewed at:  http://co mmerce.nic.in/eidb/default. asp [24 February 2011]. WT/TPR/S/249 Trade Policy Review 
Page 190 
  
 Table AI.2  
Merchandise imports, by group of products, 2006-10  
(US$ million and %)  
  2006/07 2007/08 2008/09 2009/10 
Total imports (US$ million) 185,73 5.2 251,654.0 303, 696.3 288,372.9 
 (% of total) 
Total primary products 44.7 44.2 44.1 43.7 
Agriculture 5.0 4.3 3.8 5.7 
Food 3.3 2.7 2.4 4.1 
4222  Palm oil, fractions 0.7 0.7 0.8 1.4 
0542  Leguminous vegetables, dried, shelled 0.5 0.6 0.5 0.8 
Agricultural raw material 1.7 1.6 1.4 1.6 
2475  Wood, non-coniferous, in the rough, or roughly squared 0.5 0.5 0.4 0.5 
Mining 39.8 39.9 40.3 38.0 
Ores and other minerals 5.0 3.7 3.5 3.2 
2831  Copper ores and concentrates 2.8 1.6 1.3 1.4 
2823  Other ferrous waste and scrap 0.4 0.4 0.6 0.5 
Non-ferrous metals 1.5 1.9 2.7 1.4 
Fuels 33.3 34.3 34.2 33.4 
3330  Crude oils of petroleum and bituminous minerals 25.3 25.5 25.5 26.9 
3212  Other coal, whether or pulverized, not agglomerated 2.0 2.0 2.9 2.8 
3431  Natural gas, liquefied 0.8 0.9 0.9 0.8 
Manufactures 46.1 48.2 47.3 44.1 
Iron and steel 3.4 3.4 3.1 2.8 
Chemicals 9.0 9.0 11.1 10.0 
5623  Mineral/chemical fertilizers (excl. crud e natural potassium salts) 0.4 0.4 0.9 0.9 
5629  Fertilizers, ne s 0.5 0.6 2.3 0.8 
5223  Inorganic acid and oxides 0.5 0.4 0.9 0.5 
Other semi-manufactures 6.4 5.7 8.0 7.8 
6672  Diamonds (excl. industrial, sorted) not mounted/set 3.9 3.1 5.4 5.5 
Machinery and transport equipment 22.6 25.7 21.1 19.5 
Power generating machines 0.8 0.9 0.8 0.9 
Other non-electrical machinery 7.1 7.4 6.7 6.0 
7284  Machinery and appliances for particular industries, n.e.s. 0.5 0.5 0.6 0.5 
Agricultural machinery and tractors 0.0 0.0 0.0 0.1 
Office machines and telecommunication equipment 7.0 6.5 6.3 5.8 
7641  Electrical apparatus for line telephony/telegraphy 0.8 1.4 1.7 1.8 
7643  Radio or television transmission apparatus 2.2 1.6 1.4 1.2 
7599  Parts and accessories of 751.1, 751.2, 751.9 and 752 0.7 0.5 0.4 0.5 
Other electrical machines 2.1 2.3 2.4 2.1 
Automotive products 0.8 1.0 1.1 1.2 
7843  Other motor vehicle parts and accessories of 722, 781 to 783 0.5 0.7 0.7 0.8 
Other transport equipment 4.8 7.5 3.8 3.5 
7923  Aeroplanes and other aircraft, mechanically-propelled (other 
 than helicopters), of an unladen weight exceeding 2,000 kg but  not exceeding 15,000 kg 0.2 4.2 1.2 1.2 
Textiles 1.1 0.9 0.8 0.8 
Clothing 0.1 0.1 0.1 0.1 
Other consumer goods 3.5 3.4 3.1 3.1 
8985  Other blank recording media (excl. of 882) 0.0 0.1 0.5 0.7 
Other 9.1 7.6 8.6 12.2 
Gold 7.8 6.6 7.0 10.0 
9710  Gold, non-monetary (excl. gold ores and concentrates) 7.8 6.6 7.0 10.0 
Source :  WTO calculations, based on Depa rtment of Commerce online informa tion, "Export Import Data Bank".  
 Viewed at:  http://co mmerce.nic.in/eidb/default. asp [24 February 2011]. India WT/TPR/S/249 
 Page 191 
 
 
 Table AI.3  
Merchandise exports, by destination, 2006-10  
(US$ and %)  
  2006/07 2007/08 2008/09 2009/10 
Total exports (US$ million) 126, 414.1 163,132.2 185, 295.4 178,751.4 
 (% of total) 
America 19.2 17.0 15.5 15.1 
United States 14.9 12.7 11.5 11.0 
Other America 4.3 4.3 4.1 4.1 
Brazil 1.1 1.5 1.4 1.4 
Europe 22.9 22.9 22.7 21.9 
EU 27 21.2 21.2 21.2 20.5 
Netherlands 2.1 3.2 3.4 3.6 
United Kingdom 4.4 4.1 3.6 3.5 
Germany 3.2 3.1 3.4 3.0 
France 1.7 1.6 1.6 2.1 
Belgium 2.8 2.6 2.4 2.1 
Italy 2.8 2.4 2.1 1.9 
Spain 1.5 1.4 1.4 1.1 
EFTA 0.5 0.5 0.6 0.5 
Other Europe 1.1 1.1 0.8 0.9 
Commonwealth of Independent  States 1.2 1.1 1.0 0.9 
Africa 8.1 8.8 8.0 7.5 
South Africa 1.8 1.6 1.1 1.2 
Middle East 16.8 17.0 20.7 20.3 
United Arab Emirates 9.5 9.6 13.2 13.4 
Kingdom of Saudi Arabia 2.0 2.3 2.8 2.2 
Israel 1.0 1.0 0.8 1.1 
Asia 31.7 33.1 29.6 31.9 
China 6.6 6.7 5.0 6.5 
Japan 2.3 2.4 1.6 2.0 
Six East Asian traders 13.4 13.9 14.0 14.2 
Hong Kong, China 3.7 3.9 3.6 4.4 
Singapore 4.8 4.5 4.6 4.2 
Korea, Rep. of 2.0 1.8 2.1 1.9 
Malaysia 1.0 1.6 1.8 1.6 
Other Asia 9.4 10.2 9.0 9.2 
Indonesia 1.6 1.3 1.4 1.7 
Bangladesh 1.3 1.8 1.3 1.4 
Sri Lanka 1.8 1.7 1.3 1.2 
Other 0.2 0.2 2.4 2.3 
Areas n.e.s 0.2 0.2 2.4 2.3 
Memorandum:     
APEC  43.6 41.2 37.8 39.6 
ASEAN 10.0 10.1 10.3 10.1 
Source:  WTO calculations, based on Depart ment of Commerce online informatio n, "Export Import Data Bank".  
 Viewed at:  http://co mmerce.nic.in/eidb/default. asp [24 February 2011]. WT/TPR/S/249 Trade Policy Review 
Page 192 
  
 Table AI.4  
Merchandise imports, by origin, 2006/10  
(US$ and %)  
  2006/07 2007/08 2008/09 2009/10 
Total imports (US$ million) 185, 735.2 251,654.0 303, 696.3 288,372.9 
 (% of total) 
America 10.6 11.8 10.2 10.2 
United States 6.3 8.4 6.1 5.9 
Other America 4.3 3.4 4.1 4.3 
Europe 21.6 20.5 18.9 19.3 
EU 27 16.1 15.3 14.1 13.3 
Germany 4.1 3.9 4.0 3.6 
Belgium 2.2 1.7 1.9 2.1 
United Kingdom 2.2 2.0 1.9 1.5 
France 2.3 2.5 1.5 1.5 
EFTA 5.3 4.5 4.3 5.4 
Switzerland 4.9 3.9 3.9 5.1 
Other Europe 0.2 0.7 0.5 0.6 
Commonwealth of Independent  States 2.1 1.5 2.2 2.1 
Africa 7.9 8.1 8.1 8.9 
Nigeria 3.8 3.0 2.9 2.5 
South Africa 1.3 1.4 1.8 2.0 
Angola 0.1 0.4 0.5 1.5 
Middle East 25.7 26.4 27.8 26.5 
United Arab Emirates 4.7 5.4 7.8 6.8 
Kingdom of Saudi Arabia 7.2 7.7 6.6 5.9 
Iran Islamic Rep. 4.1 4.3 4.1 4.0 
Kuwait 3.2 3.1 3.2 2.9 
Iraq 3.0 2.7 2.5 2.4 
Qatar 1.1 1.0 1.2 1.6 
Asia 31.7 31.0 32.4 32.6 
China 9.4 10.8 10.7 10.7 
Japan 2.5 2.5 2.6 2.3 
Six East Asian traders 11.6 11.0 11.7 10.6 
Korea, Rep. of 2.6 2.4 2.9 3.0 
Singapore 3.0 3.2 2.5 2.2 
Malaysia 2.8 2.4 2.4 1.8 
Hong Kong, China 1.3 1.1 2.1 1.6 
Other Asia 8.2 6.7 7.4 9.0 
Australia 3.8 3.1 3.7 4.3 
Indonesia 2.3 1.9 2.2 3.0 
Other 0.4 0.7 0.5 0.3 
Memorandum:     
APEC  40.2 41.1 40.9 40.2 
ASEAN 9.7 9.0 8.6 8.9 
Source:  WTO calculations, based on Depart ment of Commerce online informatio n, "Export Import Data Bank".  
 Viewed at:  http://co mmerce.nic.in/eidb/default. asp [24 February 2011]. India WT/TPR/S/249 
 Page 193 
 
 
 Table AII.1 
Jurisdiction between central and state legislatures, 2011 
Exclusive power of the Parliament  
Entry into and implementation of treaties, agre ements, and conventions with foreign countries 
Railways 
National highways 
Shipping and navigation on inland national wate rways as regards mechanically propelled ve ssels;  and the rule of the road on wa terways 
Maritime shipping and navigation, including on  tidal waters;  provision of education a nd training for the mercantile marine and  its 
subsequent regulation provided by  states and other agencies 
Lighthouses including lightships, beacons, and pr ovisions for shipping and aircraft safety 
Major ports, including delimitation, and constitution and power of port authorities 
Port quarantine including hospitals connected th erewith, and seamen's and marine hospitals 
Airways;  aircraft and air navi gation;  provision of aerodromes;  regulation and organization of air traffic and aerodromes;  p rovision for 
aeronautical education and training;  a nd regulation of education and training pr ovided by states and other agencies 
Carriage of passengers and goods by railway, sea, or air;  or by national waterways in m echanically propelled vessels 
Posts and telegraphs, telephones, wireless, broadcasting, and other like forms of communication 
Banking 
Insurance 
Industries, the control of which by the Union is declared by  Parliament by law to be e xpedient in the public interest 
Regulation and development of oilfields a nd mineral oil resources;  petroleum and pe troleum products;  and other liquids and su bstances 
declared to be dangerously inflammable 
Regulation of mines and mineral development declared to be e xpedient in the public interest 
Trade and commerce with foreign countries;  import and export acr oss customs frontiers;  and definition of customs frontiers 
Inter-state trade and commerce 
Establishment of quality standards for goods  to be exported out of India or tr ansported from one State to another 
Establishment of weight and measure standards 
Inter-state migration and inter-state quarantine 
Taxes on income other than agricultural income 
Customs duties including export duties 
Excise duties on tobacco and other goods manuf actured/produced in India, except alcoho lic liquors for human consumption, opium,  Indian 
hemp, and other narcotic drugs and narco tics, but including medicinal preparations containing alcohol, opium , Indian hemp, and other 
narcotic drugs and narcotics 
Corporation tax 
Taxes on the capital value of assets (exclu sive of agricultural land, individuals, a nd companies) and taxes on the capital of c ompanies 
Duties in respect of succession to prop erty other than agricultural land 
Terminal taxes on goods or passengers carried by railway, sea or air;  and taxes on railway fares and freights 
Taxes other than stamp duties on transactions  in stock exchanges and future markets 
Stamp duty rate in respect of bills of ex change, cheques, promissory notes, bills of  lading, letters of credit, insurance polic ies, transfer of 
shares, debentures, proxies, and receipts 
Taxes on the sale or purchase of newspape rs and on advertisements published therein 
Taxes on the sale or purchase of goods other than newspapers when  sale/purchase takes place in th e course of inter-state trade or 
commerce 
Taxes on goods consignments (whether the consignment is to the pe rson making it or to any other person) when consignments take place 
in the course of inter-s tate trade or commerce 
Taxes on services 
States  power  
Agriculture, including agricultura l education and research, protection against pests, and prevention of plant diseases 
Taxes on agricultural income 
Duties in respect of succe ssion to agricultural land 
Estate duty in respect of agricultural land 
Taxes on lands and buildings 
Taxes on mineral rights subject to li mitations imposed by Parliament by law relating to mineral development 
Table AII.1 (cont'd)WT/TPR/S/249 Trade Policy Review 
Page 194 
  
 Excise duties on goods manufactured/produced in the State and countervailing duties (at the same or lower rates) on similar goo ds 
manufactured/produced elsewhere in India, except alcoholic liquors for human consumpti on, opium, Indian hemp, and other narcoti c 
drugs and narcotics but not including medicina l preparations containing alcohol, opium, Indian hemp, and other narcotic drugs a nd 
narcotics 
Taxes on the entry of goods into local area  for consumption, use or sale therein 
Taxes on electricity consumption or sale 
Taxes on sale or purchase of  goods other than newspapers 
Taxes on advertisements other than advertisements published in newspape rs and broadcast on radio and TV 
Taxes on goods and passengers carried by road or on inland waterways 
Taxes on vehicles whether mechanically propelled or not suitable for use on roads, including tramcars 
Concurrent power  
Economic and social planning  
Commercial and industrial monopolies, combines, and trusts  
Prevention of the extension from one state to  another of infectious, contagious diseases  or pests affecting men, animals or pla nts 
Ports other than major ports 
Trade and commerce in, and production, supply and distribution of:  (i) products of any industry, the control of which by the U nion is 
declared by Parliament by law to be expe dient in the public interest, and imported goods of the same kind as such products;  
(ii) foodstuffs, including edible oilseeds and oils;  (iii) cattle fodder, includi ng oilcakes and other concentrates;  (iv) raw  cotton, whether 
ginned or unginned, and cotton seed;  and (v) raw jute 
Weights and measures, except establishment of standards 
Price control 
Electricity 
Source :  Ministry of Law and Justice online information, "The Constitution of India (as modified up to the 
 1 December 2007):  Seventh Schedule".  Viewed at:  http://lawmin.nic.in/coi/coiason29july08.pdf. India WT/TPR/S/249 
 Page 195 
 
 
 Table AII.2 
Notifications to the WTO, 1 January 2007-30 June 2011 
WTO Agreement Description Document symbol 
(most recent notification) Date 
Agreement on Agriculture 
Article 18.2 (DS:1) Domestic support  G/AG/N/IND/7 09/06/2011 
Article 18.2 (MA:1) Tariff and other quota commitments G/AG/N/IND/6 07/03/2011 
Article 18.2 (MA:2)  Tariff quotas G/AG/N/IND/5 07/03/2011 
Enabling clause 
GSP Regional trade agreement (RTA):  Brunei Darussalam, 
Cambodia, India, Indonesia, Malaysia, Myanmar, 
Philippines, Singapore, Thailand, and Viet Nam WT/COMTD/N/35 23/08/2010 
 RTA:  India and Afghanistan WT/COMTD/N/32 09/03/2010  
Regional integration 
Paragraph 2(c) RTA:  India and Korea (Rep. of) S/C/N/570 
WT/COMTD/N/36 29/09/2010 
 RTA:  India and Nepal WT/COMTD/N/34 03/08/2010 
 RTA:  Argentina, Brazil, Paraguay and Uruguay (States 
Parties to the MERCOSUR), and India WT/COMTD/N/31 25/02/2010 
 RTA:  Chile and India WT/COMTD/N/30 14/01/2009 
 RTA:  India and Bhutan WT/COMTD/N/28 02/07/2008 
General Agreement on Trade in Services  
Article III:3 Reference paper on basic telecommunications  S/C/N/543 08/04/2010 
Article V:7(a) RTA:  India and Korea (Rep. of) S/C/N/570 
WT/COMTD/N/36 29/09/2009 
 RTA:  India and Singapore S/C/N/393 
WT/REG228/N/1 04/05/2007 
GATT 1994  
Article XXVIII:5 Invocation of paragraph 5 G/MA/202 10/09/2008 
Article XXIV:7(a) RTA:  India and Singapore S/C/N/393 
WT/REG228/N/1 04/05/2007 
Article XXII:4(a) State trading G/STR/N/10/IND 
G/STR/N/11/IND G/STR/N/8/IND 
G/STR/N/9/IND 06/05/2010 
Agreement on the Implementation of Articl e VI of the GATT 1994 (Anti-Dumping Agreement)  
Article 16.5 Competent aut horities G/ADP/N/14/Add.28 
G/SCM/N/18/Add.28 14/10/2009 
Article 16.4 – ad hoc Reports G/ADP/N/214 09/05/2011 
Article 16.4  Semi-annual report G/ADP/N/202/IND/Corr.1 03/05/2011 
Agreement on Import Licensing  
Article 1.4(a) Licensing procedures  G/LIC/N/1/IND/12 16/10/2009 
Articles 5.1, 5.2, and 5.3 List and description of  products subject to licensing G/LIC/N/1/IND/11 
G/LIC/N/2/IND/10 22/09/2008 
Article 7.3 Replies to questionnaire G/LIC/N/3/IND/11 27/07/2010 
Agreement on Subsidie s and Countervailing  
Article 25.1 New and full notification of subsid y programmes  G/SCM/N/123/IND/Suppl.1 01/02/2011 
Article 25.11  Semi-annual repor t G/SCM/N/219/Add.1 26/04/2011 
Article 25.12 Competent aut horities G/ADP/N/14/Add.28 
G/SCM/N/18/Add.28  14/10/2009 
Agreement on Safeguards  
Article 12.4  Notification of term ination  G/SG/N/7/IND/6/Suppl.1 
G/SG/N/8/IND/17/Suppl.1 
G/SG/N/9/IND/10 22/12/2009 
Article 12.1(a) Notification of in itiation  G/SG/N/6/IND/28 07/01/2011 
Table AII.2 (cont'd)WT/TPR/S/249 Trade Policy Review 
Page 196 
  
 WTO Agreement Description Document symbol 
(most recent notification) Date 
Article 12.1(b) Article 12.1(c) Article 9.1 footnote 2 Notification of finding, decision, and serious injury and 
decision  G/SG/N/10/IND/12 
G/SG/N/11/IND/7 G/SG/N/8/IND/21 20/06/2011 
Agreement on Sanitary and Phytosanitary Measures  
Article 7 Annex B Publication of regulations G/SPS/N/IND/71 10/01/2011 
Agreement on Trade-Related Aspect s of Intellectual Property Rights  
Article 69 Contact points IP/N/3/Rev.9/Add.3 16/02/2007 
Source:  WTO documents. India WT/TPR/S/249 
 Page 197 
 
 
 Table AII.3 
Overview of India's preferent ial trade agreements, 2011 
Asia Pacific Trade Agreement (APTA) 
Parties Bangladesh, China, India, Korea (Rep. of ), Lao People's Democratic Republic, and Sri Lanka 
Date of signature/entry into force 31.07.1975/17.06.1976a 
Transition for full implementation Immediately on implementation 
India's duty-free tariff lines (2009/10) 3.36% of the totalb 
Provisions concerning goods Ru les of origin, safeguards, balance-of-payment measures, and dispute settlement 
Trade in goods Tariff concessions apply to 570 HS six-di git tariff lines (margin of preferences:  5%-100%).  
Special concessions apply to 48 six-digit tari ff lines (margin of preferences:  14%-100%) for 
LDC members.  The fourth round of negotiations aimed at widening the coverage of preferences 
to at least 40% of the tariff lines of each member  State at an average margin of preference of 
40%, was scheduled to be completed in Oc tober 2009 but has not been concluded yet 
India's merchandise trade (2009/10) Im ports from APTA:  13.9% of total;  exports to APTA:  11% of total 
of which preferential Imports:  .. 
WTO document series L/4418 (GATT), BISD 25S/L 4635 (GATT), WT/COMTD/N/22, and WT/COMTD/62 
South Asian Free-Trade Agreement (SAFTA) 
Parties Afghanistan, Bangladesh, Bhutan, India,  Maldives, Nepal, Pakistan, and Sri Lanka 
Date of signature/entry into force 06.01.2004/01.06.2006 
Transition for full implementation 2013 
India's duty-free tariff lines (2009/10) 0.028% of the totalb 
Provisions concerning goods Rules of origin, safeguards, ba lance-of-payment measures, general exceptions, and dispute 
settlement 
Trade in goods Tariff reduction to 20% for non-LDC members by 2008 (30% for LDC members), followed by 
a reduction to 0%-5% by 2013 (by 2014 for Sri Lanka and by 2018 for LDC members).  Tariff reduction to 0%-5% on imports from LDC members by 2009.
  However, India granted 
duty-free access on imports from LDC members on 1 January 2008 (i.e. one year ahead of the 
tariff liberalization schedule).  The base rate is the MFN tariff in force on 1 January 2006.  
India's sensitive list includes 744 products fr om LDC members and 865 products from non-LDC 
membersc 
India's merchandise trade (2009/10) Imports  from SAFTA:  0.5% of total;  exports to SAFTA:  4.4% of total 
of which preferential Imports:  .. 
WTO document series WT/COMTD/N/26 
South Asian Preferential Trade Arrangement (SAPTA)d 
Parties Bangladesh, Bhutan, India, Mald ives, Nepal, Pakistan, and Sri Lanka 
Date of signature/entry into force 11.04.1993/07.12.1995 
Transition for full implementation On implementation 
India's duty-free tariff lines (2009/10) 0.028% of the totalb 
Provisions concerning goods Ba lance-of-payment measures, dispute settle ment, rules of origin, and safeguards 
Trade in goods Tariff concessions apply to 2,565 HS six-di git tariff lines (margin of preferences:  10%-90% for 
non-LDC members and 10%-100% for LDC members) 
India's merchandise trade (2009/10) Imports  from SAPTA:  0.5% of total;  exports to SAPTA:  4.4% of total 
of which preferential Imports:  .. 
WTO document series WT/COMTD/10 
Association of Southeast Asian Nations (ASEAN) 
Parties India and Brunei Darussalam, Cambodia,  Indonesia, Lao People's Democratic Republic, 
Malaysia, Myanmar, Philippines, Singapore, Thailand, and Viet Nam 
Date of signature/entry into force 13.08.2009/01.01.2010e 
Transition for full implementation 31.12.2019 
Table AII.3 (cont'd)  WT/TPR/S/249 Trade Policy Review 
Page 198 
  
 India's duty-free tariff lines (2009/10) 1.13% of the totalb 
Provisions concerning goods Rule s of origin, dispute settlement, safeguards, ba lance-of-payment measures, customs-related 
measures, exceptions (general and fo r security), and dispute settlement 
Trade in goods Tariff concessions apply to 12,169 HS eight-digit tariff lines.  For "normal track" products, 
applied MFN rates will be reduced and subs equently eliminated by end December 2013 
(7,775 HS eight-digit tariff lines) and by end De cember 2016 (1,252 HS eight-digit tariff lines).  
For "sensitive track" products (1,805 HS eight-d igit tariff lines), applied MFN rates higher than 
5% will be reduced to 5% by end December 2016.  For special productsf, applied MFN rates will 
be reduced from 70%-100% to 37.5%-50% by end December 2019.  For "highly sensitive" 
products, MFN applied rates will be reduced to 50% for category I products (nine HS eight-digit 
tariff lines), 45% for category II products ( 30 HS eight-digit tariff lines), and 37.5% for 
category III products (one HS eight-digit tariff lin e) by end December 2019.  The exclusion list 
(1,297 HS eight-digit tariff lines) must be reviewed annually 
India's merchandise trade (2009/10) Imports from ASEAN:  8.9% of total;  exports to ASEAN:  10.1% of total 
of which preferential Imports:  .. 
WTO document series WT/COMTD/N/35 
MERCOSUR 
Parties India and Argentina, Brazil, Paraguay, and Uruguay 
Date of signature/entry into force 25.01.2004/01.06.2009 
Transition for full implementation Immediate on implementation 
India's duty-free tariff lines (2009/10) 0.25% of the totalb 
Provisions concerning goods Rules of origin, safeguards, and dispute settlement 
Trade in goods 450 HS eight-digit tariff lines are granted tariff concessions (margin of preferences:  10%, 20% 
or 100%) 
India's merchandise trade (2009/10) Imports  from MERCOSUR:  1.4% of total;  e xports to MERCOSUR:  1.5% of total 
of which preferential Imports:  .. 
WTO document series  WT/COMTD/N/31 
India-Afghanistan 
Parties India and Afghanistan 
Date of signature/entry into force 06.03.2003/13.05.2003 
Transition for full implementation Immediately on implementation 
India's duty-free tariff lines (2009/10) Nilb 
Provisions concerning goods Rule s of origin, safeguards, bala nce-of-payment measures, stat e trading, dispute settlement, 
general exceptions, safeguards, and national treatment 
Trade in goods Tariff reductions apply to 38 HS six-digit ta riff lines.  Margin of preferences is 50% or 100% of 
the MFN tariff in force as of 13 May 2003 
India's merchandise trade (2009/10) Imports from Afghanistan:  0.04% of total;  e xports to Afghanistan:  0.3% of total 
of which preferential Imports:  .. 
WTO document series WT/COMTD/N/32 
India-Bhutan 
Parties India and Bhutan 
Date of signature/entry into force 28.07.2006/29.07.2006 
Transition for full implementation Immediate 
India's duty-free tariff lines (2009/10) Negligibleb 
Provisions concerning goods Safeguard s and customs-related measures 
Trade in goods Tariff exemptions on all goods imported from  Bhutan.  No restrictions on Bhutan's trade with 
third countries.  Non-tariff restrictions may be  imposed on imports of third countries from 
Bhutan.  Annual refund of excise duties.  Bhut an-flagged vessels operati ng to and from Indian 
ports are given equal treatment than grante d to vessels from other foreign country 
India's merchandise trade (2009/10) Imports from Bhutan:  0.1% of total;  exports to Bhutan:  0.1% of total 
of which preferential Imports:  .. 
WTO document series WT/COMTD/N/28 
Table AII.3 (cont'd)  India WT/TPR/S/249 
 Page 199 
 
 
 India-Chile 
Parties India and Chile 
Date of signature/entry into force 08.03.2006/17.08.2007g 
Transition for full implementation Immediately on implementation 
India's duty-free tariff lines (2009/10) 0.004% of the total 
Provisions concerning goods Anti-dumpi ng and countervailing measures, customs- related measures, dispute settlement, 
general exceptions, import/export restrictions, ru les of origin, safeguards, sanitary and 
phytosanitary measures, national treatment, stat e trading, agriculture export subsidies, and 
technical barriers to trade 
Trade in goods Tariff preferences apply to 178 HS eight -digit tariff lines (margin of preferences:  10%-50%) 
India's merchandise trade (2009/10) Imports from Chile:  0.4% of total;  exports to Chile:  0.2% of total 
of which preferential Imports:  .. 
WTO document series WT/COMTD/N/30, WT/COMTD/RTA/M/3, and WT/COMTD/RTA/4 
India-Korea (Rep. of) 
Parties India and Korea (Rep. of) 
Date of signature/entry into force 07.08.2009/01.01.2010 
Transition for full implementation 2019 
India's duty-free tariff lines (2009/10) 0.32% of the totalb 
Provisions concerning goods Rules of origin, customs-re lated measures, anti-dumping and countervailing measures, 
safeguards, technical regulations, exceptions (gener al and for security), state trading, non-tariff 
measures, and sanitary and phytosanitary measures 
Trade in goods E-0 group of products (460 HS eight -digit tariff lines) have been free of duty since 
1 January 2010.  Phased elimination of duty for E-5 group of products (448 HS eight-digit tariff 
lines) by 2014.  Phased elimination of duty for E- 8 group of products (7,248 HS eight-digit tariff 
lines) by 2017.  Phased reduction of duty to 0%-5% for RES products (941 HS eight-digit tariff 
lines) by 2017.  Phased reduction of duty to 50% for SEN products (704 HS eight-digit tariff 
lines) by 2019.  Exemption of tariff reduction or  elimination applies to 1,895 HS eight-digit 
tariff lines.  The base rate is the MFN duty in force as of 1 April 2006 
Provision concerning services Yes 
India's merchandise trade (2009/10) Imports from Korea:  3.0% of total;  exports to Korea:  1.9% of total 
of which preferential Imports:  .. 
India's commercial services trade 
(2009/10) .. 
WTO document series WT/REG286/N/1 and S/C/ N/558, and WT/COMTD/N/36 and S/C/N/570 
India-Nepal 
Parties India and Nepal 
Date of signature/entry into force 27.10.2009/27.10.2009 
Transition for full implementation Immediate on implementation 
India's duty-free tariff lines (2009/10) 0.002% of the totalb 
Provisions concerning goods Rules of origin and safeguards 
Trade in goods Tariff exemptions for all goods.  Imports of vegetable fats, copper products, acrylic yarn, and 
zinc oxide are subject to annual quotas.  Im ports of alcoholic liquors/beverages (except 
industrial spirits)h, perfumes, and cosmetics with non-Ne palese/non-Indian brand names, and 
cigarettes and tobacco are not allo wed preferential entry into India 
India's merchandise trade (2009/10) Imports from Nepal:  0.2% of total;  exports to Nepal:  0.9% of total 
of which preferential Imports:  .. 
WTO document series WT/COMTD/N/34 
India-Singapore 
Parties India and Singapore 
Date of signature/entry into force 29.06.2005/01.08.2005 
Transition for full implementation 01.12.2015 
Table AII.3 (cont'd)  WT/TPR/S/249 Trade Policy Review 
Page 200 
  
 India's duty-free tariff lines (2009/10) .. 
Provisions concerning goods Rules of origin, customs-related measures, safeguards, standard s and technical regulations, 
sanitary and phytosanitary m easures, and dispute settlement 
Trade in goods 506 HS eight-digit tariff lines have been  granted duty-free access since 1 August 2005.  Phased 
elimination of duty for 2,202 HS eight-digit tari ff lines by 1 April 2009.  Phased reduction of 
duty for 2,407 HS eight-digit tariff lines by 1 April 2009.  Some 6,550 HS eight-digit tariff lines 
are excluded from duty reductions 
Provision concerning services Yes 
Other provisions Investment and government procurement 
India's merchandise trade (2009/10) Imports  from Singapore:  2.2% of total;  e xports to Singapore:  4.2% of total 
of which preferential Imports:  0.58% of total during 2009-10 
India's commercial services trade 
(2009/10) .. 
WTO document series WT/REG228/N/1 and S/C/N/393, WT/REG228/2, WT/REG228/1/Rev.1, WT/REG228/3, and 
WT/REG228/M/1 
India-Sri Lanka 
Parties India and Sri Lanka 
Date of signature/entry into force 28.12.1998/15.12.2001 
Transition for full implementation 18.03.2003 
India's duty-free tariff lines (2009/10) 0.001% of the totalb 
Provisions concerning goods General exceptions, national tr eatment, state trading, rules of origin, safeguards, 
balance-of-payment measures, disput es settlement, and rules of origin 
Trade in goods As of 18 March 2003, all tariff lines (excep t those in the negative list and those under tariff rate 
quotas)  have been free of duty.   India's negative list comprises 429 tariff lines.   Tariff 
concessions on textiles are restricted to 25%  below the MFN rate;  although textiles under 
HS chapters 61-62 remain in India's negative list,  an annual quota of 8 million pieces is offered a 
75% tariff concession on a fixed basisi.  Tariff quota also apply to tea:  a 50% tariff concession 
on a fixed basis is offered, subject  to an annual quota of 15 million kg 
India's merchandise trade (2009/10) Imports  from Sri Lanka:  0.1% of total;  e xports to Sri Lanka:  1.2% of total 
of which preferential Imports:  .. 
WTO document series WT/COMTD/N/16 
India-Japan  
Date of signature/entry into force 16.02.2011/.. 
Transition for full implementation Within te n years from the date of implementation 
India's duty-free tariff lines (2009/10) 0.25% of the totalb 
Provisions concerning goods Customs-related measures, export s ubsidies, import/export restrictions, safeguards, anti-dumping 
measures, balance-of-payment measures, and rules of origin 
Trade in goods For category A products (1,378 HS eight-dig it tariff lines), customs duties are to be eliminated 
as from the date of entry into force of th e agreement.  For category B5 products (509 HS 
eight-digit tariff lines), customs duties are to be eliminated in six equal annual instalments from 
the base rate to free.  For category B7 products  (two HS eight-digit tariff lines), customs duties 
are to be eliminated in eight equal annual instal ments from the base rate to free.  For category 
B10 products (7,151 HS eight-digit tariff lines), cu stoms duties are to be eliminated in 11 equal 
annual instalments from the base rate to free.  For gear boxes and diesel engines of a capacity 
exceeding 250 cc (two HS eight-digit tariff lines), customs duties are to be reduced to 6.25% and 
5%, respectively, by 1 January 2019.  Category X products (1,535 HS eight-digit tariff lines) are 
to be excluded from any customs reduction or elimination  
Provision concerning services Yes 
Other provisions Investment, intellectual propert y, government procurement, and competition 
India's merchandise trade (2009/10) Impor ts from Japan:  2.3% of total;  exports to Japan:  2% of total  
of which preferential Imports:  .. 
India's commercial services trade 
(2009/10) .. 
WTO document series No t notified to the WTO 
Table AII.3 (cont'd)  India WT/TPR/S/249 
 Page 201 
 
 
 India-Malaysia  
Parties India and Malaysia 
Date of signature/entry into force 18.02.2011/01.07.2011 
Transition for full implementation 31.12.2019  
India's duty-free tariff lines (2009/10) 0.25% of the totalb 
Provisions concerning goods Rules of origin, sanitary and phytosa nitary measures, technical barriers to trade, trade remedies, 
general exceptions, and customs-related measures  
Trade in goods For "normal track" products :  (i) applied MFN rate will be reduced and subsequently eliminated 
for 7,747 HS eight-digit tariff lines by end Sept ember 2013 and for 1,270 HS eight-digit tariff 
lines by end June 2016;  and (ii) tariff lines th at bear a zero-rated duty cannot be changed (402 
HS eight-digit tariff lines).  For "sensitive tr ack" products, applied MFN rates higher than 5% 
will be reduced to 5% by end June 2016.  For special productsj, the applied MFN rates will be 
reduced from 80%-100% to 37.5%-50% by e nd December 2019.  For "highly sensitive" 
products, MFN applied rates will be reduced to  50% and 45% for category I and II products, 
respectively, (42 HS eight-digit tariff lines) a nd to 37.5% for category III products (one HS 
eight-digit tariff line) by end December 2019.  For "special track" productsk, the applied MFN 
rate will be reduced from 30% to 5%-10% by end December 2016.  The exclusion list (1,224 HS 
eight-digit tariff lines) must be reviewed annually 
Provision concerning services Yes 
Other provisions Dispute settlement and investment 
India's merchandise trade (2009/10) Imports  from Malaysia:  1.6% of total;  exports to Malaysia:  1.8% of total 
of which preferential Imports:  .. 
India's commercial services trade 
(2009/10) .. 
WTO document series No t notified to the WTO 
India-Thailand 
Parties India and Thailand 
Date of signature/entry into force 09.10.2003/01.09.2004 
Transition for full implementation 17 rounds of negotiati ons have been held.  The free-trade agreement  is expected to be concluded 
during 2011 
India's duty-free tariff lines (2009/10) 0.09% of the totalb 
Provisions concerning goods Ru les of origin, general exceptions, and dispute settlement 
Trade in goods Duty-free access for 82 HS six-digit tariff lines since March 2006  
Provision concerning services Yes 
Other provisions Investment, disput e settlement, and trade facilitation 
India's merchandise trade (2009/10) Imports  from Thailand:  1.0% of total;  e xports to Thailand:  1.0% of total 
of which preferential Imports:  .. 
India's commercial services trade 
(2009/10) .. 
WTO document series No t notified to the WTO 
GSTP 
Parties (as notified) Algeria, Argentina, Bangladesh, Be nin, Bolivarian Republic of Venezuela, Brazil, Cameroon, 
Chile, Colombia, Cuba, Democratic People's Re public of Korea, Ecuador, Egypt, Ghana, 
Guinea, Guyana, India, Indonesia, Iran (Is lamic Rep. of), Iraq, Korea (Rep. of), 
Libyan Arab Jamahiriya, Macedonia (FYR),  Malaysia, Mexico, Morocco, Mozambique, 
Myanmar, Nicaragua, Nigeria, Pakistan, Peru, Philippines, Plurinational State of Bolivia, 
Singapore, Sri Lanka, Sudan, Tanzania, Thailand, Trinidad and Tobago, Tunisia, Viet Nam, and 
Zimbabwe 
Date of signature/entry into force 13.04.1988/19.04.1989 
Transition for full implementation On implementation 
India's duty-free tariff lines (2009/10) .. 
Provisions concerning goods Ru les of origin, balance-of-payment meas ures, safeguards, and dispute settlement 
Table AII.3 (cont'd)  WT/TPR/S/249 Trade Policy Review 
Page 202 
  
 Trade in goods Tariff concessions on 53 HS six-digit tari ff lines (margin of preferences:  10%-30%).  A 50% 
tariff concession applies to three tariff lines for imports from LDC members only (Bangladesh, 
Benin, Guinea, Haiti, Mozambique, Sudan, and Tanzania) 
India's merchandise trade (2009/10) Imports from GSTP:  26.5% of total;  exports to GSTP:  23.4% of total 
of which preferential Imports:  .. 
WTO document series L/6564 (GATT) 
.. Not available. 
a APTA was formerly known as the Bangkok Agreement.  The amended agreement entered into force on 1 September 2006. 
b Information provided by the Indian authorities. 
c India has offered Bangladesh market access for 8 million pieces of garments, which are on India's sensitive list, without any  
sourcing condition. 
d SAPTA was superseded by SAFTA.  Howe ver, concessions granted under SAPTA rema in in force for the contracting parties 
until the SAFTA trade liberalization programme is co mpleted, by 2014 (SAFTA Agreement, Article 22). 
e The agreement entered into force on 1 January 2010 for India,  Malaysia, Singapore, and Thaila nd;  and on 1 June 2010 for 
Myanmar and Viet Nam.  For the rest of the parties, entry in to force is in accordance with Ar ticle 23 of the Agreement (i.e. 
mutually agreed date). 
f India's special products are crude and refine d palm oil, coffee, black tea, and pepper. 
g The Agreement effectively entered in to force in India on 11 September 2007. 
h Nepalese beers can be imported on payment of the applicable li quor excise duty equal to the effective excise duty as levied o n 
Indian beers. 
i Of which 6 million pieces will be extended the concession only if made of Indian fabric, provide d that no category of garment s 
exceeds 1.5 million pieces per year. 
j India's special products are crude palm oil,  refined palm oil, palm kernel oil, pa lm kernel oil and its fractions, margarine of 
vegetable origin, coffee, black tea, and pepper. 
k India's "special track" products include pineapples and bird eggs (HS 0407.00.10, 0407.00.20, and 0407.00.90). 
Source : WTO Regional Trade Agreements Information System onlin e information.  Viewed at:  http://rtais.wto.org/;  
Department of Commerce online information, "Internati onal Trade:  Trade Agreements".  Viewed at:  
http://www.commerce.nic.in /trade/internationa l_ta.asp?id=2&trade=i;  Depa rtment of Commerce online 
information, "India's curren t engagements in RTAs".  Viewed at:  http: //www.commerce.nic.in/india_rta.htm;  
Department of Commerce online information,  "Export Import Data Bank".  Viewed at:  
http://commerce.nic.in/eidb/default.asp;   Department of Commerce online inform ation, "What's new".  Viewed at:  
http://commerce.nic.in/;  South Asia n Association for Regional Cooperation online information, "Agreement on 
South Asian Free-Trade Area (SAFTA)".  Viewed at:  http://www.saarc- sec.org/userfiles/sa ftaagreement.pdf;  
GSTP online information, "Tariff concessions".  Viewed at :  h ttp://www.unctadxi.org/templates/ 
Page____6206.aspx;  and information provided by the Indian authorities. India WT/TPR/S/249 
 Page 203 
 
 
 Table AII.4 
Policy on foreign direct investment, 2011 
Sector/activity Ceiling Entry route Other conditions 
Agriculture    
Floriculture, horticulture, development and 
production of seeds, animal husbandry, fish 
farming, aqua-culture, cu ltivation of vegetables 
and mushrooms under controlled conditions, and 
services related to agro and allied sectorsa 100%  Automatic Companies dealing with transgenic 
seeds/vegetables must comply with the 
requirements stipulated under the Environment (Protection) Act and the 
conditions laid down in notifications 
issued under the Foreign Trade (Development and Regulation) Act 1992.  
Businesses intending to use genetically 
modified material need approvals for Genetic Engineering Approval Committee 
(GEAC) and the Review Committee on 
Genetic Manipulation (RCGM) to operate 
Tea sector, including tea plantationb 100%  Foreign 
Investment 
Promotion Board (FIPB) Compulsory divestment of 26% of the 
equity in favour of Indian partners within 
five years.  Prior approval of the State government concerned in case of changes 
in land use 
Mining    
Mining and exploration of metal and non-metal 
ores, including diamond, gold, silver, and 
precious stones 100%  Automatic Subject to the Mines and Minerals 
(Development and Regulation) Act 1957 
Coal and lignite mining for captive consumption 
by power projects;  iron, steel, and cement 
production units;  and other eligible activities 
under the Coal Mines (Nationalization) Act 1973 100%  Automatic Subject to the Coal Mines 
(Nationalization) Act 1973 
Setting up coal processing plants like washeries 
subject to the condition that the company shall 
not do coal mining nor sell washed or sized coal from its coal processing plants in open markets 
and shall supply the washed or sized coal to 
parties that supply raw coal to coal processing plants for washing and sizing 100% Automatic  
Mining and mineral separation of titanium 
bearing minerals and ores, and its value-added and integrated activities
c 100% FIPB Subject to sectoral regulations and to the 
Mines and Minerals (Development and Regulation) Act 1957.  Subject to value 
addition facilities and transfer of 
technology set up in India;  and disposal of tailing during mineral separation carried 
out in accordance with regulations framed 
by the Atomic Energy Regulatory Board 
Manufacturing    
Medium and large enterprises manufacturing items reserved for the production in micro and small enterprises 100%  Automatic up to 
24%, then FIPB Subject to the obligation of exporting at 
least 50% of the annual production within three years 
Defence  26% FIPB Subject to industrial licensing under the 
Industries (Development and Regulation) Act 1951.  Licences are issued by the Department of Industrial Policy and 
Promotion in consultation with the 
Ministry of Defence.  Applicants should be Indian companies/partnership firms 
Power    
Power generation, transmi ssion, distribution, and 
tradingd 100% Automatic Subject to the Electricity Act 2003 
Table AII.4 (cont'd) WT/TPR/S/249 Trade Policy Review 
Page 204 
  
 Sector/activity Ceiling Entry route Other conditions 
Petroleum and natural gas    
Exploration activities, infr astructure related to 
marketing of petroleum products, actual trading and marketing of petroleum products, petroleum 
product pipelines, natural gas/LNG pipelines, 
market study and formulation, and petroleum refining by the private sector 100% Automatic Subject to sectoral policy and regulatory 
framework  
Petroleum refining activities by public sector undertakings  49%  FIPB  
Financial services    
Asset reconstruction companies (ARCs) 
registered with the Reserve Bank of India under the Securitization and Reconstruction of 
Financial Assets and En forcement of Security 
Interest Act 2002 49%  FIPB Investment is strict ly in the nature of FDI.  
Individual investment exceeding 10% of the equity must comply with the 
Securitization and Reconstruction of 
Financial Assets and Enforcement of Security Interest Act 2002.  FIIs are not 
allowed to invest in ARCs, except FIIs 
registered with the Securities and Exchange Board of India (SEBI) which 
are allowed to invest in security deposits 
issued by ARCs up to 49% (individual investment not exceeding 10%) 
Banking (private sector) 74% (incl. 
FIIs) Automatic up to 
49%, then FIPB  
Banking (public sector) 20% (incl. 
portfolio 
investment)  FIPB and 
regulatory 
clearance of the 
Reserve Bank of India Subject to the Banking Companies 
(Acquisition and Transfer of 
Undertakings) Acts 1970/80.  The ceiling 
also applies to the State Bank of India and its associate banks  
Commodity exchange  49% (incl. 
FIIs) FIPB FDI is limited to 26% and investment by 
FIIs to 23%.  FIIs can invest only through purchases in the secondary market 
Credit information companies (CICs) 49% (incl. 
FIIs) FIPB Subject to the Credit Information 
Companies (Regulation) Act 2005.  Investment by FIIs is allowed up to 24% 
only in CICs listed at stock exchanges.  
Individual FII cannot hold more than 20% 
Infrastructure compan y in the securities market 49% (incl. 
FIIs)  FIPB FDI is limited to 26% and investment by 
FIIs to 23% 
Insurance 26% Automatic Subject to licensing by the Insurance 
Regulatory and Development Authority  
Non-banking finance companies 100% Automa tic Subject to mi nimum capitalization 
Civil aviation    Subject to the Aircraft Rules 1934, civil 
aviation requirements, and aeronautical 
information circulars notified by the 
Ministry of Civil Aviation 
Airports     
Greenfield projects 100% Automatic  
Existing projects  100% Automatic up to 
74%, then FIPB  
Air transport services    
Scheduled air transport services and domestic 
scheduled passenger airlines 49% (NRIs:  
100%) Automatic  
Non-scheduled air transport service and cargo 
airlines 74% (NRIs:  
100%) Automatic up to 
49%, then FIPB  
Helicopter and seaplane services  100% Automatic  
Table AII.4 (cont'd) India WT/TPR/S/249 
 Page 205 
 
 
 Sector/activity Ceiling Entry route Other conditions 
Other services    
Ground handling services 74% (NRIs:  
100%) Automatic up to 
49%, then FIPB Subject to sectoral regulations and security 
clearance 
Maintenance and repair organizations;  flying 
training institutes;  and technical training 
institutions 100% Automatic  
Telecom and postal services    
Telecom services (i.e. wireline and wireless 
services) 74% 
(incl. FIIs, NRIs, 
FCCBs, 
ADRs, and GDRs) Automatic up to 
49%, then FIPB Indian shareholding shall not be less than 
26% 
Internet service provider (with or without gateways), radio-pa ging, and end-to-end 
bandwidth 74% Automatic up to 
49%, then FIPB Subject to licensing and security 
requirements issued by the Department of Telecommunications 
Infrastructure provider;  and electronic mail and voice mail 100% Automatic up to 
49%, then FIPB  Compulsory disinvestment of 26% of the 
equity in favour of Indian entities within five years, if they ar e listed in other parts 
of the world 
Courier services for carrying packages, parcels, 
and other items not covered under the Indian Post 
Office Act 1898 100% FIPB Subject to the Indian Post Office Act 
1898.  Activities related to letters 
distribution are excluded 
Construction services    
Development of township, housing, built-up 
infrastructure, and construction-development 
projectse  100% Automatic Subject to minimum land/built-up areas 
and minimum capitalization.  At least 50% 
of the project must be developed within 
five years from the date of obtaining statutory clearances
f 
Industrial parks (setting up and already established industrial parks) 100% Automatic Not subject to the above-mentioned 
conditions if industrial parks comprise a minimum of 10 units and no single unit 
occupies more than 50% of the area, and 
the minimum area allocated to industrial activity is not less than 66% of the total 
area 
Broadcasting     
Terrestrial broadcasting (FM radio) 20% (incl. 
FIIs, PIO, 
and portfolio investment)  FIPB Subject to the terms and conditions issued 
by the Ministry of Information and 
Broadcasting for grant of permission for setting up FM radio stations 
Cable network 49% (incl. 
FIIs, PIO, and portfolio 
investment) FIPB Subject to the Cable Television Network 
Rules 1994 and conditions specified by the Ministry of Information and Broadcasting 
Direct-to-home 49% (incl. 
FIIs, PIO, 
and portfolio 
investment) FIPB FDI not exceeding 20%.  Subject to 
guidelines issued by the Ministry of 
Information and Broadcasting 
Headend-in-the-sky broadcasting services 74% (incl. 
portfolio 
investment)  Automatic up to 
49%, then FIPB Subject to guidelines issued by the 
Ministry of Information and Broadcasting 
Setting up hardware facilities     
Up-linking HUB/teleports 49% (incl. 
FIIs) FIPB Subject to compliance of the up-linking 
policy notified by the Ministry of 
Information and Broadcasting 
Up-linking non-news and current affairs TV 
channels 100% FIPB Subject to compliance of the up-linking 
policy notified by the Ministry of 
Information and Broadcasting 
Table AII.4 (cont'd) WT/TPR/S/249 Trade Policy Review 
Page 206 
  
 Sector/activity Ceiling Entry route Other conditions 
Up-linking news and current affairs TV 
channels 26% (incl. 
FIIs) FIPB Subject to compliance of the up-linking 
policy notified by the Ministry of 
Information and Broadcasting 
Satellites (establishment and operation) 74% FIPB Subject to sectoral guidelines issued by the 
Department of Space/Indian Space 
Research Organization 
Print media    
Publishing of newspapers and periodicals 26% (incl. 
NRIs, PIO, and FIIs) FIPB  
Publication of Indian editions of foreign 
magazines 26% (incl. 
NRIs, PIO, and FIIs) FIPB Subject to guidelines issued by the 
Ministry of Information and Broadcasting 
Publishing/printing of sc ientific and technical 
magazines/periodicals  100% FIPB Subject to guidelines issued by the 
Ministry of Information and Broadcasting 
Publication of facsimile edition of foreign 
newspapers 100% FIPB Investment should be made by the owner 
of the original foreign newspapers.  
Subject to guidelines issued by the Ministry of Information and Broadcasting 
Trading     
Cash and carry wholesale trading/wholesale trading 100% Automatic Subject to th e Guidelines for Cash and 
Carry Wholesale Trading/Wholesale 
Trading.  Subject to restrictions on 
domestic trading 
E-commerce activities 100% Automatic  
Single brand product trading 51% FIPB Pr oducts should be of single brand only 
and should be sold under the same brand 
internationally.  Single brand product-retailing cover products branded during 
manufacturing only 
Test marketing  100% FIPB Test marketing will be for two years, and 
investment in setting up manufacturing 
facility begins with test marketing 
Security agencies in the private sector 49%  FIPB Subject to the Private Security Agencies 
(Regulation) Act 2005 
a FDI is not allowed in any other agricultural sector/activity. b FDI is not allowed in any othe r plantation sector/activity.   
c FDI is not allowed in mining of prescribed substances listed in  Notification No. S.O. 61(E) of 18 January 2006, issued by the  
Department of Atomic Energy (for details , please see Department of Atomic Energy  online information, "Atomic Energy Act 
Rules and Notifications".  Viewed at:  http://www.dae.gov.in/rules /actindex.htm).   
d Excluding generation, transmission, and di stribution of electricity produced in atom ic power plants, for which FDI is prohibi ted.  
Nuclear energy is reserved to the public sector (Chapter II(4)(i)(b)). 
e FDI is not allowed in real estate business. 
f These conditions do not apply to invest ment by NRIs, and to hotels and tourism,  hospitals, and special economic zones. 
Note: ADRs:  American depositary receipts;  FCCBs:  foreign cu rrency convertible bonds;  FIIs:  foreign institutional investors ;  
GDRs:  global depositary receipts;  NRIs:  non-resident Indians;  and PIOs:  persons of Indian  origin.  Foreign institutional 
investors are entities established outside I ndia, which propose to invest in India and are registered as FIIs under the Securit ies and 
Exchange Board of India (Foreign Institu tional Investors) Re gulations 1995.   
Source:  Department of Industrial Policy and Promotion, Circular No. 1 of 2011 (Cons olidated FDI Policy (effective from 
1 April 2011), 31 March 2011.   India WT/TPR/S/249 
 Page 207 
 
 
 Table AIII.1 
IEC exemptions for imports and exports, 2011  
Imports 
Goods imported by the Government and stat e-owned undertakings for defence purposes 
Goods imported by the Government, State governments, public en tities or state-owned undertakings , through the Directorate Gener al of 
Supplies and Disposals or the Indian s upply missions in London and Washington D.C. 
Goods imported by transhipment;  or importe d and bonded for re-export as ships' stores to any destination (except Nepal and Bhu tan) or 
released for use of diplomatic/c onsular officers and UN officials 
Goods imported and bonded for sale to  passengers in duty-free shops 
Goods in transit through India or redirected to any destination (except Nepal and Bhutan) 
Goods imported for air shipment to Afghanist an or for land shipment to any destina tion (except Nepal and Bhutan) under claim fo r duty 
exemption or refund 
Goods imported as passengers' baggage 
Goods imported for personal use 
Goods imported by diplomatic/consular  officers and trade commissioners 
Goods imported from countries exempt  from customs duty on re-import 
Goods previously exported but impor ted back for repair and re-export 
Goods imported by UN offici als or the Ford Foundation 
Temporary imports of vehicles 
Goods imported for use in fairs and exhibitions 
Goods imported by the Government or  State governments for repair and re -export to Indian embassies abroad 
Food grains imported by the Food Corporation of India 
Food products imported and supplied as  gifts by UN accredited agencies 
Goods imported by ministries and departments of the Gove rnment and State governments 
Goods imported from Nepal, Myanmar (through the Indo-Myanmar borde r), and China (through Gunji, Namgaya Shipkila, and Nathula 
ports), provided the c.i.f.  value of a single consignment does not exceed Rs 25,000 (Rs 100,000 for Nathula) 
Exports 
Goods exported by the Government 
Goods (other than foodstuffs) constituting the stores of outgoing vessels 
Goods constituting the bona fide personal baggage of any person 
Goods exported by post or by air, under c onditions specified by the postal authorities 
Goods transhipped at Indian ports 
Goods imported and bonded for re-export to an y destination (except Nepal and Bhutan) 
Goods in transit through India by post;  or goods re-directe d by post to any destination (except Nepal and Bhutan) 
Goods imported with no valid import licence and exported following a Customs' order 
Goods exported from export pr ocessing zones (EPZs) or export-oriented units (EOUs) 
Exports of blood group Oh (Bombay phonotype) for scientific re search or emergency medical treatment by the National Blood Group  
Reference Laboratory 
Exports of samples of lubricating oil add itives by Lubrizols India Ltd., Hindustan Petr oleum Corporation Ltd., and Bharat Petro leum 
Corporation Ltd. to Lubrizol's laboratories in the United St ates and the United Kingdom for evaluation and testing purposes 
Goods exported for personal use 
Goods exported to Nepal, Myanmar (through the Indo-Myanmar borde r), and China (through Gunji, Namgaya Shipkila, and Nathula 
ports), provided the c.i.f.  value of a single consignment does not exceed Rs 25,000 (Rs 100,000 for Nathula) 
Source: Foreign Trade (Exemption from application of Rules in certain cases) Order 1993 (Clauses 3(1) and 3(2)) (CBEC 
online information, "Customs:  Acts ".  Viewed at:  http://www.cbec. gov.in/customs/cs-acts-botm.htm);  and 
Department of Commerce (2010), Handbook of Procedures , Vol. 1, incorporating A nnual Supplement, 23 August.  
Viewed at:  http://dgft.gov.in.  WT/TPR/S/249 Trade Policy Review 
Page 208 
  
 Table AIII.2 
Cesses and surcharges levied by the Central Government, 2011 
Act Levy Levied/collected by Maxi mum rate Effective rate Purpose 
Beedi Workers Welfare Cess Act 1976  
 Cess on tobacco issued to any 
person from a warehouse for any 
purpose in connection with the 
manufacture of Beedi Ministry of 
Labour/Department of 
Revenue Rs 1/kg Rs 0.25/kg For the purposes of the 
Beedi Worker Welfare Fund 
Act 1976 
Beedis cess Rs 0.50/thousand 
to Rs 5/thousand Rs 5/thousand 
Finance Act 2004 (Sections 91-93) 
 Education cess on goods 
manufactured or produced in 
India Department of 
Revenue/Department of 
Revenue 2% of the duty 
amount 2% of the duty 
amount Providing and financing 
universal quality basic 
education 
Finance Act 2007 (Sections 136-138) 
 Surcharge called secondary and 
higher education cess on goods manufactured or produced in 
India Department of 
Revenue/Department of Revenue 1% of the duty 
amount 1% of the duty 
amount Providing and financing 
secondary and higher education 
Industries (Development and Regulation) Act 1951 
 Cess on automobiles Department of 
Industrial Policy and 
Promotion/Department of Revenue 0.125% ad 
valorem  of the 
value 0.125% ad 
valorem  of the 
value Promoting scientific and 
industrial research with 
reference to the scheduled industry or group of scheduled industry 
Cess on paper and paperboard (all sorts) 0.125% ad 
valorem  of the 
value 0.125% ad 
valorem  of the 
value 
Cess on component parts and 
accessories of automobiles 0.125% ad 
valorem  of the 
value Nil 
 Cess on tractors Department of Heavy 
Industry/Department of Revenue 0.125% ad 
valorem  of the 
value 0.125% ad 
valorem  of the 
value Promoting scientific and 
industrial research with reference to the scheduled 
industry or group of 
scheduled industry 
Iron Ore Mines, Manganese Ore Mines, and Ch rome Ore Mines Labour Welfare Cess Act 1976 
 Cess on iron ore Ministry of 
Labour/Department of Revenue Rs 1/tonne Rs 1/tonne Financing the welfare of 
persons employed in the mines 
Cess on manganese ore Rs 6/tonne Rs 4/tonne 
Cess on chrome ore Rs 6/tonne Rs 6/tonne 
Jute Manufactures Cess (Amendment) Act 2002 
 Cess on specified jute goods Ministry of 
Textile/Department of Revenue 2% ad valorem  of 
the value 1% ad valorem  of 
the value  Developing the production 
of jute 
Lime Stone and Dolomite Mines Labour Welfare Fund Act, 1972 
 Cess on lime stone and dolomite 
produced in any mine Ministry of 
Labour/Department of 
Revenue Rs 1/tonne Rs 1/tonne Financing the welfare of 
persons employed in the 
mines 
Salt Cess Act 1953 
 Cess on salt Ministry of Commerce/
Department of Revenue Rs 0.14/40 kg Rs 3.5/tonnea;  
Rs 1.75/tonneb;  
nilc Establishing and 
maintaining research 
stations and model salt 
farms.  Establishing, 
maintaining, and expanding salt factories 
Table AIII.2 (cont'd)India WT/TPR/S/249 
 Page 209 
 
 
 Act Levy Levied/collected by Maxi mum rate Effective rate Purpose 
Sugar Cess Act 1982 
 Cess on sugar produced by any 
factory in India Ministry of Public 
Distribution and Consumer Affairs/ 
Department of Revenue Rs 25/quintal Rs 24/quintal For purposes of the Sugar 
Development Fund Act 1982 
Tea Act 1953 
 Cess on tea produced in India Ministry of Commerce/
Department of Revenue Rs 0.50/kg Rs 0.30/kg For purposes of the Tea 
Fund 
Textile Committee Act 1963 
 Cess on all textiles excluding 
textiles manufactured from out 
of the handloom or powerloom industries Ministry of 
Commerce/Department 
of Revenue 1% ad valorem  of 
the value Nil For purposes of the Textiles 
Fund 
Cess on all textile machinery 1% ad valorem  of 
the value Nil 
a Manufacturers holding over 100 acres. 
b Manufacturers holding 10-100 acres. c Manufacturers holding less than 10 acres. 
Note: The above-mentioned cesses are charged on imports as part of the countervailing dut y, with the exception of the education  cess 
 (Finance Act 2004) and the secondary and higher education ce ss (Finance Act 2007), which are charged in addition to the 
 countervailing duty. 
Source:  Information provided by the Indian authorities. WT/TPR/S/249 Trade Policy Review 
Page 210 
  
 Table AIII.3 
Safeguard investigations, 2008-11 
Commodity:  
tariff item Date of 
initiation Date of 
final 
findings Main import 
partnersa Recommendation by the 
Director-General Final decision 
Cases initiated in 2008 
Phthalic anhydride:  
291735 28.11.08 28.05.09 Korea (Rep. of) 
(40.5%), Israel 
(20.4%), and Chinese 
Taipei (11.8%) Safeguard duty for three 
years:  25% (first year), 20% 
(second year), and 15% (third 
year) Customs Notification 
No. 75/2009 of 30.06.09 
Safeguard duty:  25% from 
29.01.09-30.06.09, and 15% from 01.07.09-31.12.09 
Linear alkyl benzene:  38170011 19.12.08 18.11.09 Qatar (37.5%), Iran 
(34.8%), and Kingdom of Saudi Arabia (23.4%) No safeguard duty 
recommended  
Cases initiated in 2009     
Oxo alcohol:  
2905 16.01.09 27.05.09 Saudi Arabia (36.5%), 
Iran (19.9%), and 
Kuwait (6.7%) Safeguard duty for three 
years:  10% (first year), 7.5% 
(second year), and 5% (third 
year) Rejected by Board on 
Safeguards 
Soda ash:  283620 16.01.09 06.10.09 China (48.6%), Kenya 
(19.7%), and Bulgaria 
(7.0%) 20% for one year from the 
date of imposition of the 
provisional safeguard duty Customs Notification 
No. 122/09 of 05.11.09 
Safeguard duty:  20% for one year from date of provisional 
safeguard duty, up to 
19.04.10 
Dimethoate 
technical:  
38089123 21.01.09 14.05.09 China (100.0%) Safeguard duty for three 
years:  28% (first year), 23% 
(second year), and 18% (third year) Customs Notification 
No. 87/09 of 27.08.09 
Safeguard duty:  20% from 23.03.09-22.03.10, and 15% 
from 23.03.10-22.03.11 
Aluminium flat 
rolled products:  
7606 27.01.09 29.05.09 China (26.7%), 
Germany (23.6%), and 
Bahrain (13.6%) Safeguard duty for four years 
(excluding certain items):  
14% (first year), 12% 
(second year), 10% (third year), and 8% (fourth year) Customs Notification 
No. 71/09 of 19.06.09 
Safeguard duty (excluding 
certain items):  14% from 23.03.09-22.03.2010, and 
12% from 23.03.10-22.03.11 
Aluminium foil:  
7607 27.01.09 29.05.09 China (32.1%), Korea 
(Rep. of) (21.7%), and 
Germany (10.4%) Safeguard duty for four years 
(excluding certain items):  
30% (first year), 25% 
(second year), 20% (third year), and 15% (fourth year) Customs Notification 
No. 71/09 of 19.06.09 
Safeguard duty (excluding 
certain items):  30% from 23.03.09-22.03.2010, and 25% from 23.03.10-22.03.11 
Nylon tyre cord fabric:  5902.10 06.02.09 06.04.09 China (41.4%), 
Chinese Taipei (22.0%), and Thailand 
(12.9%) Investigation terminated on 
withdrawal of application  
Front axle beam, 
steering knuckles, 
and crankshaft:  
7326 02.04.09 23.09.09 Italy (32.3%), France 
(18.0%), and 
United States (7.3%) No safeguard duty 
recommended  
Front axle beam, 
steering knuckles, 
and crankshaft:  8423 02.04.09 23.09.09 China (25.3%), Japan 
(22.9%), and Germany 
(22.8%) No safeguard duty 
recommended  
Acrylic fibre:  
5501 09.04.09 30.09.09 France (23.5%), 
Belarus (16.1%), and China (15.9%) Investigation terminated on 
withdrawal of application
  
Acrylic fibre:  5503 09.04.09 30.09.09 Thailand (23.3%), 
Malaysia (16.4%), and Japan (10.8%) Investigation terminated on 
withdrawal of application
  
Table AIII.3 (cont'd) India WT/TPR/S/249 
 Page 211 
 
 
 Commodity:  
tariff item Date of 
initiation Date of 
final findings Main import 
partners
a Recommendation by the 
Director-General Final decision 
Acrylic fibre:  5506 09.04.09 30.09.09 Thailand (63.9%), 
China (14.7%), and 
Chinese Taipei Investigation terminated on 
withdrawal of application
  
Hot rolled steel products:  7208 09.04.09 08.12.09 Korea (Rep. of) 
(18.8%), China 
(15.1%), and Russian 
Federation (10.3%) No safeguard duty 
recommended
  
Coated paper and 
paper board:  4810 20.04.09 13.11.09 China (36.2%), 
Finland (11.6%), and 
United States (7.6%) No safeguard duty 
recommended   
Uncoated paper and copy paper:  
4802 20.04.09 06.11.09 United Kingdom 
(31.0%), Italy 
(16.2%), and Germany (16.0%) No safeguard duty 
recommended
  
Particle board:  
4410 22.04.09 24.11.09 Thailand (32.3%), 
Malaysia (26.4%), and South Africa (10.0%) No safeguard duty 
recommended
  
Passenger car tyre:  4011.10 18.05.09 30.09.09 China (39.2%), Korea 
(Rep. of) (23.7%), and Thailand (10.8%) Investigation terminated on 
withdrawal of application  
Unwrought 
aluminium:  7601 22.05.09 11.11.09 Australia (17.2%), 
South Africa (13.7%), and United Arab Emirates (13.4%) Investigation terminated on 
withdrawal of application  
Unwrought 
aluminium:  7602 22.05.09 11.11.09 United Arab Emirates 
(18.1%), Kingdom of Saudi Arabia (12.3%), 
and United Kingdom 
(12.0%) Investigation terminated on 
withdrawal of application  
Caustic soda: 
2815.12 20.08.09 09.04.10 China (41.55%), 
Indonesia (26.43%), 
and Qatar (10.43%) Safeguard duty:  15% from 
04.12.2009-03.03.2010 Customs Notification 
No. 131/2009 of 04.12.2009 
Provisional duty:  15%.  No definitive safeguard duty 
levied 
Cases initiated in 2010 
Soda ash (review proceedings): 
2836.20 19.02.10 13.04.10 China specific Safeguard duty:  16% from 
20.04.2010-19.04.2011;  and 
14% from 20.04.2011-19.04.2012 Customs Notification 
No. 72/2010 of 28.16.2010  
Definitive safeguard duty:  16% from 
28.06.2010-19.04.2011 
PX 13: 3812, 
2934 and 2925 27.12.10 n.a. Korea (Rep. of) 
(61.35%), 
United States 
(11.74%), and China (18.63%) n.a. n.a. 
Cases initiated in 2011 
Aluminium FRP 
and aluminium foil (review 
proceedings): 
7606 and 7607 14.02.11 n.a. China specific n.a. n.a. 
n.a. Not applicable.  
a Data in brackets refer to share of total imports for the co rresponding product.  UNSD Comtrade data are used, except for item s 
 shown at eight-digit for which data ar e from the WTO Integrated Database. 
Source:    WTO Secretariat;  Central Board of Excise and Custom s online information, "Customs:  Notifications".  Viewed 
at:  http://www.cbec.gov.in/cae1-eng lish.htm;  and information provide d by the Indian authorities. WT/TPR/S/249 Trade Policy Review 
Page 212 
  
 Table AIII.4 
Other institutions responsible for st andards formulation and enforcement, 2011 
Institution Field of action Legislation 
Atomic Energy Regulatory Board Nuclear energy Atomic Energy Act 1962 
Automotive Research Association of India Safety sta ndards on automobiles Societies Registration Act XXI 1860
Central Boilers Board Boilers Indian Boilers Act 1923;  Indian Boilers 
Regulations 1949 
Central Committee for Food Sta ndards Food products Prevention of  Food Adulteration Act 1954;  
Prevention of Food Adulteration Rules 1955
Central Electricity Authority Supply of  electricity to units owned by the 
central Government Electricity Act 2003;  Central Electricity 
Authority (Measures relating to Safety and 
Electric Supply) Regulations 2010 
Central Silk Board Natural raw silk and products Central Silk Board (Amendment) Act 1982 
Chief Controller of Explosives Ga s cylinders, pressure vessels and 
explosive materials, and flameproof 
electrical equipment for industries Indian Explosives Act 1984;  Gas Cylinders 
Rules 1981;  Explosive Rules 1983;  Static 
and Mobile Pressure Vessels (Unfired) Rules 1981;  Acetylene Notification 
No. GSR.625(E), 7 August 1983;  Carbide 
of Calcium Rules 1937 
Coir Board Coir products Regulation Coir Industries Act 1953 
Department of Fertilizer Fertilizers Fertilizer Control Order 1985 
Telecommunication Engineering Centre, Department of Telecommunication Telecom equipment Indian Telegraph Act 1885;  Indian Wireless 
Act 1933;  Telecom Regulatory Authority of 
India (TRAI) Act 1997 
Ministry of Road Transport and Highways Road transport Regulation of Motor Vehicles Act 1988;  
Carriage by Road Act 2007;  Road Transport Corporation Act 1950 
Directorate General Factory Advice Service and Labour Institutes Safety in factories, and flameproof electrical 
equipment for industries Factory Act 1948;  Dock Workers (Safety, 
Health, and Welfare) Act 1986 
Directorate General of Civil Av iation Civil aviation Aircraft Act 1934;  Carriage by Air Act 
1972;  Airport Authority of India Act 1994;  
Airports Economic Regulatory Authority of India Act 2008 
Directorate General of Mines Safety Sa fety of mines and mining operations, and 
electric equipment for coal and oil mines Indian Mines Act and Rules 1952 
Directorate of Marketing and Inspection Raw and semi-processed agricultural 
commodities, and meat and meat products Agricultural Produce (Grading and 
Marketing) Act 1937;  Meat Food Products 
Order 1973 
Directorate of Standardization Articles for defence use .. 
Directorate of Vanaspati, Vegetable oil, and Fats Hydrogenated vegetable oils (Vanaspati), 
vegetable oil, de-oiled meals, and edible flours Vegetables Products Control Order 1947;  
Vegetable Oil Products (Standards of quality) Order 1975;  Solvent Extracted oils, 
De-Oiled Meals and Edible Flour (Control 
Order) 1967 
Directorate of Weights and Measures Weight and measures used in commercial 
transactions Standards of Weights and Measures Act 
1976;  Standards of Weights and Measures 
(Packages Commodities) Rules 1977;  Standards of Weights and Measures 
(Enforcement) Act 1985;  Standards of 
Weights and Measures (General) Rules 1987
Drugs Controller General of India Cosm etics, Indian pharmacopoeia, and drugs 
specification Drugs and Cosmetics Act 1945 
Electronics Components Standardization 
Organization Electronics components standardization .. 
Indian Roads Congress Technical sp ecifications regarding roads and 
bridges .. 
Jute Commissioner Jute and jute product s Essential Commodities Act 1955;  Jute 
(Licensing and Control) Order 1961 
Table AIII.4 (cont'd)India WT/TPR/S/249 
 Page 213 
 
 
 Institution Field of action Legislation 
Ministry of Environment and Forest Tolerance limits fo r emulsion and effluents Envi ronment (Protection) Act 1986 
Ministry of Food Processing Industries Fr uits and vegetable products, synthetic 
syrups, and aerated waters Fruit Products Order 1955 
Research and Design Standards 
Organization (RDSO) Development of standardization of technical 
specifications for items used in railways Indian Railway Act 
Rural Electrification Corporation (REC) Codes of practice and guide for rural 
electrification .. 
Technology Application and Standard Unit, 
Central Public Works Department Civil and electrical works .. 
Steel Authority of India Interplant  standardization of consumable, 
replacement, and other items used in the 
steel industry .. 
Standardization Testing and Quality 
Certification Directorate Standardization of electronics technology .. 
Textile Commissioner Textile fibres, yarn, and fabrics (except 
handloom, silk, and jute fabrics), and textiles 
machinery (excluding jute machinery) .. 
.. Not available. 
Source:  WTO Secretariat;  and information provided by the Indian authorities. WT/TPR/S/249 Trade Policy Review 
Page 214 
  
 Table AIII.5 
Export prohibitions, 2011 
Reason for prohibition Description Status since 2007 
Protection of wildlife under 
the Wild Life (Protection) 
Act 1972 All wild animals, animal articles (includi ng their products and derivatives), excluding 
those for which ownership certificates ha ve been granted and those required for 
transactions for education, scientific re search, and management under the Wild Life 
(Protection) Act 1972, includi ng their parts and products Unchanged 
Live exotic birds, excluding albino budge rigars, budgerigars, Bengali finches, white 
finches, and zebra finches, which may be e xported subject to preshipment inspection;  
and java sparrows, which are subject to export licensing Unchanged 
Marine species and their parts, products , and derivatives under the Wild Life 
(Protection) Act 1972  Added 
Bêche-de-mer (sea cucumber) Added 
Control of poaching and 
illegal trade in wildlife and its products Peacock tail feathers, including handicrafts and articles of peacock tail feathers Unchanged 
Shavings of shed antlers of  Chital and Sambhar, including manufactured articles Unchanged 
Sea shells, including polished sea shells and handicrafts made out of those species 
mentioned in the Wild Life (Protection) Act 1972 Added 
Social and religious reasons Beef of cows, oxen and calf  Unchanged 
Offal of cows, oxen, and calf Unchanged 
Meat of buffalo, fresh, chilled or frozen Added 
Tallow, fat and/or oils of any animal orig in, excluding fish oil and lanolin Unchanged 
Human skeletons Unchanged 
Ecological and 
environmental reasons Undersized rock lobsters and sand lobsters Unchanged 
Chemicals under the Montreal Protocol when e xported to a country that is not party to 
the Protocol Unchanged 
Plants and plant portions of wild species specified in the Wild  Life (Protection) 
Act 1972 or the CITES Appendix I or in the Export Licensing Note 1a Added 
Wood and wood products in forms of logs, timber, stumps, roots, barks, chips, 
powder, flakes, dust, pulp, and charcoal, othe r than sawn timber made exclusively out 
of imported logs/timber Unchanged 
Fuel wood in logs, billets, twigs, faggots or si milar forms;  wood in chips or particles;  
and sawdust and wood waste and scrap, wh ether or not agglomerated in logs, 
briquettes, pellets or similar forms Unchanged 
Wood charcoal whether or not agglomerated  Unchanged 
Wood sawn or chipped lengthwise, sliced or  peeled, whether or not planed, sanded or 
end jointed, of a thickness exceeding 6 mm, ot her than sawn timber made exclusively 
out of imported logs/timber Unchanged 
Sandalwood in any form, excluding finish ed handicraft products of sandalwood, 
machine finished sandalwood pr oducts, and sandalwood oil Unchanged 
Red sanders wood in any form, whether ra w, processed or unprocessed, excluding 
value-added products of red sanders wood (e .g. extracts, dyes, musical instruments, 
and parts of musical instruments made fr om red sanders wood pr ocured from legal 
sources) Unchanged 
Natural resources 
conservation Mechanical wood pulp Unchanged 
Chemical wood pulp, dissolving grades Unchanged 
Chemical wood pulp, soda or sulphate, other than dissolving grades Unchanged 
Chemical wood pulp, sulphite, other than dissolving grade  Unchanged 
Semi-chemical wood pulp Added 
Family planning scheme Condomsb Unchanged 
Ensuring domestic 
availability/food security  Non-basmati ricec Added 
Wheat (including durum wheat) and meslind Added 
Dried leguminous vegetables, shelled, wh ether or not skinned or split, excluding 
kabuli chana (chickpea), and 10,000 tonne s of organic pulses during 2011/12e Added 
All edible oilf Added 
Milk powder (including whole milk powder,  baby milk powder, dairy whitener), 
casein and casein derivatives Added 
Table AIII.5 (cont'd)India WT/TPR/S/249 
 Page 215 
 
 
 Reason for prohibition Description Status since 2007 
Implementing the Chemical 
Weapons Convention Toxic chemicals (Chemical Weapons Convention, Schedule 1) Unchanged 
a For Export Licensing Note 1, see the Export Policy Schedule (Chapt er 12).  Exemptions for research, education, and lifesaving  
drugs are granted by the DGFT, upon recommendations by the Ministry of Environment and Forests. 
b Certain brands and those with certain markings/s tamps (see the Export Policy Schedule (Chapter 40)). 
c The prohibition does not apply to exports  under food-aid programmes and the Indo-Ma ldives trade agreemen t.  In addition, 
non-basmati rice may be exported, subject to export quotas, to  Bangladesh, Bhutan, Cameroon, Comoros, Ghana, Madagascar, 
Mauritius, Nigeria, Senegal, Sierra Leone, 21 African countries , Nepal, and Sri Lanka.  Export s are through central public sect or 
enterprises (CPSEs).  Non-basmati rice may also be exported by Venkatachalapathi Modern Rice Mills a nd Bharath Exporters, 
which are export-oriented units (EOUs), subject to export quotas.  The prohibiti on does not apply to Sona Masuri, Ponni Samba, 
and Matta varieties, subject to export quotas. 
d Exports to Bangladesh and Nepal are allowed, s ubject to export quotas.  Exports are through CPSEs. 
e Pulses may be exported to Sri Lanka, Bhutan, Ma uritius, and the Maldives, subject to export quotas.  
f Exemptions apply to:  exports of castor oil;  exports of coconut  oil (through Kochi port);  deemed  exports of edible oils to EOUs, 
upon condition that the final product is non-edible ;  exports of oils produced out of mi nor forest produce, ev en if edible;  an d 
exports of edible oil from the domestic tariff area (DTA) to special economic zones (SEZs) for consumption by SEZ units in 
manufacture of processed food products. 
Source:  Department of Commerce (2010) , Schedule 2:  Export Policy, Foreign Trade Policy 2009-14 , incorporating 
Annual Supplement, 23 August.  Viewed at:  http://dgft.gov.in;  and DGFT onl ine information, "N otifications".  
Viewed at:  http://dgft.gov.in.  
  
 WT/TPR/S/249 Trade Policy Review 
Page 216 
  
 Table AIII.6 
Export incentive schemes, 2007-11 
Scheme Description  
Duty exemption schemes  
Advance Authorization 
Scheme (previously Advance 
Licence Scheme) 
 Manufacturers may import inputs (including fuel and oi l) duty free to manufacture exports.  Mandatory 
spare parts may also be imported duty free, up to a maximum of 10% of the c.i.f. value of the 
authorization.  Inputs may also be procured fr om 100% export-oriented units (EOUs), electronic 
hardware technology parks, soft ware technology parks, biotechnol ogy parks, and special economic 
zones (SEZs);  
To qualify, exports must have a minimum value adde d of 15%, except for specified products, e.g. gems 
and jewellery (1.5%-5%), petrol eum products and copper anode a nd cathode (8%), and tea (50%);  
Goods must be exported within 36 months from the date of issuance of the authorization, except for 
spices (90 days to12 months), drugs, penicillin, a nd tea (6 months), and coconut oil (90 days); 
Advance authorizations/im ported inputs are non-transfer able even after the expor t obligation is fulfilled. 
Duty-Free Import 
Authorization (DFIA) Scheme 
 Manufacturers may import inputs (including fuel and oi l) duty free to manufacture exports.  Mandatory 
spare parts may also be imported duty free, up to a maximum of 10% of the c.i.f. value of the 
authorization.  Inputs may also be procured from  100% EOUs, electronic hardware technology parks, 
software technology parks, bi otechnology parks, and SEZs;  
To qualify, exports must have a minimum value adde d of 20%, except for specified products, e.g. gems 
and jewellery (1.5%-5%), petrol eum products and copper anode a nd cathode (8%), and tea (50%); 
Goods must be exported within 36 months from the date of issuance of the authorization, except for 
spices (90 days to 12 months), drugs, penicillin, and tea (6 months ), and coconut oil (90 days); 
DFIAs/imported inputs are freely transferable to do mestic producers/traders once the export obligation is 
fulfilled.  However, transfer of fu els is allowed only to enterprises au thorized to market fuel by the 
Ministry of Petroleum and Natural Gas. 
Duty remission scheme  
Duty Entitlement Passbook 
(DEPB) Scheme 
 The scheme is aimed at neutralizing the incide nce of customs duty on imports of inputs for the 
manufacture of export products;  
Exporters are granted a duty credit for specific products e quivalent to a percentage of the f.o.b. value of 
exports.  This percentage is fixed by the Director ate General of Foreign Trade (DGFT) (1.5%-11.14% at 
end February 2011).  Duty credits are available fo r about 2,200 export products notified by the DGFT; 
DFIAs/imported inputs are freely transferable to do mestic producers/traders once the export obligation is 
fulfilled;   
The scheme is to be eliminated by 30 June 2011. 
Reward schemes  
Served from India Scheme  
 The scheme is aimed at accelerating the growth in services exports;  Indian service providers (companies with minimum in vestment of Rs 1 million in foreign currency or 
individuals with minimum investment of Rs 500,00 0 in foreign currency) are granted a duty credit 
equivalent to 10% of the total foreign exchange ear ned during a financial year.  Duty credits may be 
used to import capital or other goods;   Duty credits/imported goods are non-transferable , except within the same conglomerate.  
Special Agricultural and 
Village Industry Scheme 
(Vishesh Krishi and Gram Udyog Yojana) 
 The scheme is aimed at compensating freight cost  and promoting exports of agricultural and other 
products, forest-based products, Gram Udyog products
a, oleoresinsb, minor forest products, and 
value-added products; In general, exporters are granted a duty credit equivalent to 5% of the f.o.b. value of exports.  However, 
a duty credit equivalent to a maximum 3% of the f.o.b.  value of exports is gran ted to exporters who have 
benefited from "duty drawback" rates above 1% (Cha pter III(3)(vii)(b)), duty  credits under DEPB (see 
above) or duty-free imports under the duty exempti on schemes (see above).  Exporters of certain 
flowers, fruits and vegetables
b, marine products, and grapes are granted an additional duty credit 
equivalent to 2% of the f.o.b. value of exports;   Duty credits are transferab le to other domestic producers/traders once the export obligation is fulfilled. 
Agri-Infrastructure Incentive 
Schemec 
 The scheme is aimed at facilitating imports of storag e, packing, and transport equipment for exports of 
live animals and animal products, fats and oils, and prepared foodstuffs, beve rages, and tobacco;   
Exporters are granted a duty credit equivalent to 10% of the f.o.b. value of exports.  Total support under 
this scheme should not exceed Rs 1 billion. 
Focus Market Scheme  
 The scheme is aimed at compensating freight cost a nd other external costs for exports to 110 notified 
markets; 
Exporters are granted a duty credit equivalent to 3% of  the f.o.b. value of exports.  Some products do not 
qualify for duty creditd;   
Duty credits are transferab le to other domestic producers/traders once the export obligation is fulfilled. 
Table AIII.6 (cont'd) India WT/TPR/S/249 
 Page 217 
 
 
 Scheme Description  
Focus Product Scheme  
 The scheme is aimed at promoting notified products  with high potential for exports and employment;   
Exporters of 429 notified products are granted a duty credit equivalent to 2% of the f.o.b. value of 
exports.  Exporters of 114 notified products are grante d a special duty credit equivalent to 5% of the 
f.o.b. value of exports.  Expor ters of 169 notified products are granted an additional duty credit 
equivalent to 2% of the f.o.b. va lue of exports, over and above the exis ting rates.  In addition, exporters 
of 67 notified products are granted a duty credit equivale nt to 2% of the f.o.b. value of exports when 
products are exported to specific markets.e 
Status Holder Incentive Scheme  
 The scheme is aimed at promoting investment for t echnology upgrading in the leather, textile and jute, 
handicrafts, engineering, plastics, and basi c chemical (excluding pharma) subsectors;  
Exporters are granted a duty credit equivalent to 1%  of the f.o.b. value of exports over 2009-10.  The 
duty credit has also been granted to e xporters of additional subsectors in 2010-12
f;   
Exporters who have benefited fr om the Technology Upgradation F und Scheme of the Ministry of 
Textiles, are not eligible. 
Export Promotion Capital 
Goods Scheme   
Zero-duty rate 
 Exporters of specific productsg may import capital goods duty free to manufacture export products, 
subject to an export obligation of six times the amount of the duty saved, to be met within six years.  
Exporters who have benefited from the Status Ho lder Incentive Scheme (see above) or the Technology 
Upgradation Fund Scheme (of the Minist ry of Textiles) are not eligible; 
The scheme is in place until 31 March 2012. 
Concessional rate 
 Manufacturers of exports may import capital goods at a 3% duty rate, subject to an export obligation of: 
(i) eight times the amount of the duty saved, to be me t within eight years;  (ii) six times the amount of 
the duty saved for agri-units, to be met within 12 year s ;  and (iii) six times the amount of the duty saved 
for micro and small enterprises, to be met within ei ght years, and the c.i.f. value of imports should not 
exceed Rs 5 million and total investment after impor ts should not exceed the limits prescribed to 
maintain the micro and small enterprises status (Cha pter II(4)(i)(c)).  If the duty saved amounts to at 
least Rs 1 billion, the export obligation is to be  met within 12 years for all manufacturers;   
Service providers certified as common service provi der by the DGFT may also import capital goods to 
export services at a 3% duty rate.  The export obliga tion is eight times the amount of the duty saved, to 
be met within eight years.  
Schemes for gems and jewellery   
Replenishment authorization 
 Replenishment authorizations are granted against e xports of gold, platinum, and silver jewellery and 
articles made of gold, platinum, and silver; To obtain a replenishment authorization, exporters mu st prove that the products have been exported (e.g. 
shipping bill).  They must apply for a replenishmen t authorization within six months of exporting;   
Exporters are allowed to import:  (i) inputs (e.g. gol d, platinum, and silver,) duty free;  (ii) empty 
jewellery boxes, up to 5% of the c.i.f. value of th e authorization;  and (iii) consumable products (e.g. 
tags and labels), up to 2% of the f.o.b. value of exports for precious metal jewellery (other than gold and 
platinum), 1% of the f.o.b. value of exports for gold/platinum jewellery and cut and polished diamonds, 
and 3% of the f.o.b. value of exports for rhodium finished silver jewellery; 
Duty-free imports of gold/platinum/silver may be procured through nominated agencies
h; 
Export products must have minimum value added (1.5 % -5%) and wastage norms (0.25%-7%).  Exports 
are to be completed within the specified period; 
Replenishment authorizations are transferable to domestic producers/traders once the export obligation 
is fulfilled. 
Advance Authorization Scheme for gems and jewellery  
 Exporters are granted duty-free imports of inputs (e.g . gold, platinum, and silver) to manufacture export 
products.  Imports must be through nominated agencies
h;  
Exports must have minimum value added (1.5%-5%) and wastage norms (0.25%-7%).  Goods must be 
exported within 120 days (extenda ble to 180 days) from the date of issuance of authorization;  
Advance authorizations/imported inputs are non-transferable. 
Export and Trading Houses 
Scheme  Export and trading houses are categorized into export house, star export house, trading house, star 
trading house, and premier trading house.   Manufacturer and services exportersi are allocated a category 
depending on the total f.o.b. export performance ove r the last four years (including current year)j;  
Exporters are allowed, inter alia :  to self-declare import and export customs clearance;  exemption from 
compulsory negotiation of documents through banks;  establishment of export warehouses;  and to apply 
to the Customs accredited clients programme (Chapter III(2)(i)(a)), the Status Holder Incentive Scheme, 
and the Agri-Infrastructure Incentive Scheme (see above). 
Table AIII.6 (cont'd) 
  WT/TPR/S/249 Trade Policy Review 
Page 218 
  
 Scheme Description  
Target Plus Schemek Exporters from star export houses are granted dut y-free credits based on export growth;  duty-free 
credits amount to 5% for growth of over 20%;   
Duty credits are non-transferable and must be used  for the payment of customs duty on imported inputs.  
a Gram Udyog products include vegetable pl aiting materials of bamboos (HS 1401.10);  other vegetable plaiting materials, 
excluding bamboo and rattan (HS 1401.90);  palm fibre for br ushes (HS 1403.00.10);  Palmyra sugar (HS 1702.90.10), and 
traditional and homeopathic medicines (HS 3004.90.11, 3004.90. 12, 3004.90.13, and 3004.90.14).  Gram Udyog products are 
produced in units registered with the Khadi and Village Industries Commission (KVI C) or the Khadi and Village Industries 
Board (KVIB).   
b Removed since 23 August 2010.  
c Offshoot of the Special Agricultural and Village Industr y Scheme (Vishesh Krishi and Gram Udyog Yojana).   
d Supplies to units in special economic zone s;  diamonds and other preci ous/semi-precious stones;  gold, silver, platinum, and other 
precious metals, including plain and studded jewellery;  ores and concentrates (all types and forms);  cereals (all types);  su gar 
(all types and forms);  crude/petroleum oil and crude/petrole um based products (all types a nd forms under HS 2709-2715);  and 
milk and milk products (HS 0401-0406, 1901.10.01, 1901.10.10, 2105,  and 3501).  Exports of services are also prohibited.   
e Algeria, Australia, Brazil, Cambodia, China, Egypt, EU, Kenya,  Japan, Mexico, New Zealand, Ni geria, South Africa, Tanzania, 
 Ukraine, United States, and Viet Nam. 
f Chemical and allied products;  rubber products;  paints, varnis hes, and allied products;  glas s and glassware;  plywood and a llied 
products;  ceramics;  paper, paper board, and paper products;  books, publ ications, and printing;  animal by-products;  ossein and 
gelatine;  graphite products;  miscella neous products (HS 3201, 3202.90.10, 3203.00.10, 3604, 3605, and 3802.10.00);  
electronics products;  sports goods;  engin eering products from iron and steel).   
g Engineering and electroni c products, basic chemicals and pharmaceuticals, appa rels and textiles, plastics, handicrafts, chemi cals 
and allied products, leather and leather pr oducts, paper and paper board and articles thereof, ceramic pr oducts, refractories, glass 
and glassware, rubber and ar ticles thereof, plywood and allied products, marine products, sports goods, and toys. 
h MMTC Ltd, Handicraft and Handloom Export Corporation, State Trading Corporation, Project and Equipment Corporation of 
India Ltd, STCL Ltd, MSTC Ltd, Diamond India Ltd, Gems and Jewellery Export Promotion Counc il, star and premier trading 
houses, and agencies authorized by the Reserve Bank of India.   
i Eligible manufacturers and service exporters are those from 100% export-oriented units, special economic zones, agri-export 
zones, electronic hardware technology parks, softwa re technology parks, and bio-technology parks.   
j The f.o.b. export performance is:  Rs  200 million for export houses;  Rs 1 billion for star export houses;  Rs 5 billion for trading 
houses;  Rs 25 billion for star trading houses;  a nd Rs 75 billion for premier trading houses.   
k The Duty-Free Credit Entitlement Scheme and th e Duty-Free Replenishment Certification Scheme were replaced by the Target 
Plus Scheme in 2004, which was removed in April 2006.  However, duty credits grante d are still grandfathered. 
Note: These schemes apply for exports made as from 27 August 2009.   
Source:  Department of Commerce (2010), Foreign Trade Policy 2009-14 , incorporating annual supplement, 23 August.  
Viewed at:  http://dgftcom.nic.in;   Department of Commerce (2010), Handbook of Procedures , Vol. 1, 
incorporating annual supplement, 23 Augus t.  Viewed at:  http:/ /dgftcom.nic.in;  Department of Commerce (2009), 
Appendices and Aayat Niryat Forms , 27 August.  Viewed at:  http://dgftcom.nic.in;  Directorate General of 
Foreign Trade (2009), DEPB Rates , 27 August.  Viewed at:  http://dgftcom.nin.in;  and information provided by 
the Indian authorities. India WT/TPR/S/249 
 Page 219 
 
 
 Table AIII.7 
Amount forgone/disbursed on imports under export promotion schemes, 2007-10  
(Rs million)  
Scheme Amount forgone/disbursed 
2007/08 2008/09 2009/10 
Advance Authorization Scheme (previously Advance Licence 
Scheme)  176,541  123,890  100,892 
Duty-Free Import Authorization Scheme  13,591  12,676  13,986 
Duty Entitlement Passbook Scheme  53,115  70,875  80,085 
Served from India Scheme  6,417  5,305  5,149 
Special Agricultural and Village I ndustry Scheme (Vishesh Krishi 
and Gram Udyog Yojana)  5,380  20,591  28,687 
Agri-Infrastructure Incentive Scheme .. .. .. 
Focus Market Scheme  83  2,641  4,324 
Focus Product Scheme  328  1,441  3,962 
Status Holder Incentive Scheme .. .. .. 
Export Promotion Capital Goods Scheme  105,214  78,327  70,203 
Schemes for gems and jewellery    
Replenishment certif ication .. .. .. 
Advance authorization for gems  and jewellery .. .. .. 
Export and Trading Houses Scheme .. .. .. 
Duty-Free Entitlement Credit Certif icate Scheme 4, 716 3,423  1,797 
Duty-Free Service Entitlement Credit Certificate Scheme  2,679 754 541 
Duty-Free Replenishment Certification Scheme  6,071  1,106  623 
Target Plus Scheme  9,233  12,201  2,673 
Total 383,368 333,230 312,922 
.. Not available. 
Source:  Information provided by the Indian authorities. WT/TPR/S/249 Trade Policy Review 
Page 220 
  
 Table AIII.8 
Revenue forgone under the Income Tax Act 1961, 2006-11 
(Rs million) 
Incentive (section of the Income Tax Act 1961)  2006/07 2007/08 2008/09 2009/10 2010/11a 
Deduction/weighted deduc tion for expenditure on scientific research 
(35(1), (2AA), and (2AB)) 15,550 20,020 25,270 24,180 29,280 
Deduction for expenditure on eligible projects or schemes for the 
social and economic uplift of the public (35AC) 440 500 970 8,980 1,590 
Deduction in respect of expenditure on specified business (35AD) .. .. .. .. .. 
Deduction on account of donations  to charitable trusts and 
institutions (80G) 16,550 43,640 7,870 6,450 7,140 
Deduction on account of donations for scientific research or rural 
development (80GGA) 50 140 240 10 10 
Deduction on account of contributions to politi cal parties (80GGB) 10 70 240 440 530 
Deduction of profits of certain industrial undertakings or a ship or a 
hotel business (80-I) - - - - - 
Deduction of profits of undertakin gs engaged in development of 
infrastructure facilities (80-IA) 13,130 17,840 15,890 26,160 31,650 
Deduction of profits of undertakin gs engaged in development of 
special economic zones (SEZs) and industrial parks (80-IA) 1,860 3,110 4,180 4,100 4,930 
Deduction of profits of undertakin gs engaged in providing telecom 
services (80-IA) 50,540 54,730 43,600 35,110 42,520 
Deduction of profits of undertakings  engaged in power generation, 
transmission, and distribution(80-IA) 46,150 57,830 63,680 74,730 87,940 
Deduction of profits of undertakin g engaged in revival of power 
plant (80-IA) 2,730 660 1,220 2,170 2,620 
Deduction of profits of undertakin gs engaged in development of 
SEZs in pursuance to the SEZ Act 2005 (80-IAB) 1,410 16,280 14,250 9,740 9,190 
Deduction of profits of industrial undertakings operating in the 
small-scale sector (80-IB) 3,120 3,240 1,780 2,170 2,560 
Deduction of profits of industrial undertakings located in Jammu and 
Kashmir (80-IB) 3,750 6,060 2,540 3,010 3,570 
Deduction of profits of industrial undertakings located in industrially 
backward states other than  Jammu and Kashmir (80-IB) 20,330 24,080 10,270 4,000 4,820 
Deduction of profits of industrial undertakings located in backward 
districts (80-IB) 5,860 2,950 870 1,070 1,280 
Deduction of profits of industr ial undertakings derived from 
multiplex theatre and convention centre (80-IB) 130 160 180 30 30 
Deduction of profits of industr ial undertakings derived from 
development of scientif ic research (80-IB) 310 410 740 680 820 
Deduction of profits of industrial undertakings derived from mineral 
oil production (80-IB) 52,510 28,130 9,510 10,560 12,790 
Deduction of profits of industrial undertakings derived from housing 
projects (80-IB) 15,200 30,260 23,150 26,110 30,180 
Deduction of profits of industr ial undertakings derived from 
operating a cold chain facility (80-IB) 60 50 50 50 50 
Deduction of profits of industr ial undertakings derived from 
integrated business of handling, storage, and transportation of food 
grains (80-IB) 200 170 270 450 540 
Deduction of profits of industr ial undertakings derived from 
processing, preservation, and pack aging of fruits and vegetables 
(80-IB) 230 310 710 780 940 
Deduction of profits of industrial undertakings derived from hospital 
in rural area (80-IB) 20 20 10 30 40 
Deduction of profits of undertakings set up in north eastern states 
(80-IC) 14,500 17,360 6,860 15,320 18,250 
Deduction of profits of undertakings set up in Sikkim (80-IC) 100 390 830 3,840 4,400 
Table AIII.8 (cont'd)India WT/TPR/S/249 
 Page 221 
 
 
 Incentive (section of the Income Tax Act 1961)  2006/07 2007/08 2008/09 2009/10 2010/11a 
Deduction of profits of undertakings set up in U ttaranchal (80-IC) 5,820 13,390 17,460 24,520 29,470 
Deduction of profits of undertakings set up in Himachal Pradesh 
(80-IC) 12,800 19,690 23,160 25,040 30,000 
Deduction of profits from business of collecting and processing of 
bio-degradable waste (80JJA) 100 1,210 390 250 290 
Deduction in respect of employment of new workmen (80JJA) 200 240 290 290 350 
Deduction in respect of certain incomes of offshore banking units 
and international financial services centre (80LA) 2,860 5,160 3,660 4,620 180 
Deduction of profits of cooperative socie ties (80P) 2,660 3,580 3,610 4,470 5,020 
Total 289,180 371,680 283,750 319,360 362,980 
- Nil. 
.. Not available. 
a Provisional. 
Source:  Ministry of Finance (2011), "Receipt Budget:  Revenue Foregone under the Central Tax System", Union 
 Budget 2011-2012 .  Viewed at:  http://i ndiabudget.nic.in;  and information provi ded by the Indian authorities.   WT/TPR/S/249 Trade Policy Review 
Page 222 
  
 Table AIII.9 
Selected incentive  schemes/programmes for MSMEs, 2011  
Scheme/programme Eligibility  Description Introduction/ 
validity 
Implemented by the Ministry of Micro, Small, and Medium Enterprises 
Entrepreneurship 
Development Institutions (EDIs) 
Scheme  EDIs
a  Assistance is provided to create, strengthen or expand 
infrastructure (including opening of new branches) and to meet deficits.  The subsidy amounts to 50% of the cost of 
building, training, and other support services, up to 
Rs 15 million. 2010/12 
Rajiv Gandhi Udyami 
Mitra Yojanab New micro and small 
entrepreneur  Financial assistance to Udyami Mitrasc is provided by selected 
agenciesd.  It amounts to Rs 4,000/trainee for service 
enterprises and Rs 6,000/trainee for manufacturing enterprises (with investment in plants and machinery up to Rs 25,000).  
Trainees contribute to Rs 1,000 to the financial assistance 
(trainees of special categories are exempt). 2008/12 
Implemented by the Development Commissioner 
Management 
Development Programme Prospective/ 
existing MSMEs  The programme is aimed at training prospective/existing 
entrepreneurs by upgrading their managerial skills.  No financial incentives are provided. 1952/ongoing  
Credit Guarantee Fund 
Scheme for Micro and Small Enterprises  All MSEs, except retail 
trade Credit is guaranteed by financial institutions
e.  The guarantees 
amount to:  75% of the credit for loans up to Rs 5 million;  85% of the credit for loans up to Rs 500,000 to micro 
enterprises;  75% of the credit for loans up to Rs 5 million to 
micro enterprises;  and 80% of the credit for special categories, without any limit.  For loans ranging from Rs 5 million to Rs 10 million, a 50% incremental increase on 
the amount of the guarantees applies. 2000/14  
 
Credit Linked Capital Subsidy Scheme for 
technology upgradation  Manufacturing MSEs The subsidy amounts to 15% of the capital acquired to 
upgrade technology, up to Rs 1.5 million. 2001/12 
 
Integrated 
Infrastructure 
Development Schemef  .. The subsidy amounts to 40% of the cost of the project, up to 
Rs 2 million (80% for projects set up in the north-eastern 
region or in the states of Jammu and Kashmir, Himachal 
Pradeshm, and Uttarakhand, up to Rs 4 million). ../2010 
ISO 9000/14001 and 
HACCP Certification 
Reimbursement Scheme  All MSEs  75% of the quality management (ISO 9000), environment 
management (ISO 14001), and HACCP certification cost is 
reimbursed, up to Rs 75,000. 1994/12 
Marketing 
Development Assistance Scheme Exporting 
manufacturing MSMEs  MSMEs participating in interna tional exhibitions/trade fairs, 
are reimbursed 75% of the economy air fare and 50% of the space rental charges (100% for special categories), up to 
Rs 125,000. 2000/12 
 
Micro and Small Enterprises Cluster 
Development 
Programme
f  All MSEs  The subsidy amounts to Rs 250,000 for conducting diagnostic 
studies;  80% of the cost of the project (90% for special 
categories) for projects up to Rs 150 million;  and 75% of the 
cost of the project (90% for sp ecial categories) for projects up 
to Rs 2.5 million.  For infrastr ucture development, the subsidy 
amounts to 60% of the cost of the project (80% for special 
categories) up to Rs 10 million. 2010/ongoing 
Table AIII.9 (cont'd) India WT/TPR/S/249 
 Page 223 
 
 
 Scheme/programme Eligibility  Description Introduction/ 
validity 
Mini Tool Rooms  Individual MSEs/MSE 
consortium The subsidy amounts to 40% of the total cost for new projects 
managed by private partners, up to Rs 9 million;  and 90% of total cost for new projects managed by private partners in 
cooperation with State governments/state government 
agencies, up to Rs 9 million.  For existing projects to be upgraded by State governments/state government agencies, the 
subsidy amounts to 75% of the total cost of the project, up to 
Rs 7.5 million. 2008/12 
 
Scheme for Micro 
Finance Programme Micro finance 
institutions  The Government provides a Portfolio Risk Fund to the Small 
Industries Development Bank Of India (SIDBI). The Fund is 
used to guarantee loans taken by  micro finance institutions or 
NGOs.  2003/ongoing 
 
Implemented by the National Small Industries Corporation (NSIC)  
Government Stores 
Purchase Programme  MSEs registered with 
NSIC  MSEs are granted a 15% price preference for central 
government purchases, i.e. an MSE quoting up to 15% over 
the quote of a large-scale enterprise is eligible to get the order.  
Conditions of quality and terms of supply also apply.  Price preferences are set up for each tender in consultation with the 
Ministry of Finance and shoul d be mentioned in the tender 
notice.  Other purchase facilities include tender documents free of cost and exemption of earnest money or security 
deposits.  There are 358 items reserved for exclusive purchase 
by the Central Government from MSEs. 1960/ongoing  
Marketing Assistance 
Scheme  All MSMEs For the organization of exhibitions/trade fairs abroad, the 
subsidy amounts to 75% of the space rental fee (95% for 
special categories), 85% of the economy air fare (95% for 
special categories), and Rs 37,500 for freight charges;  total 
subsidies are capped at Rs 240,000 (Rs 270,000 for special 
categories).  For participation in  exhibitions/trade fairs abroad, 
same as above except for freight charges (Rs 20,000);  total subsidies are capped at Rs 175,000 (Rs 200,000 for special 
categories).  For the organiza tion of and participation in 
exhibitions/trade fairs in India, the subsidy amounts to 75% of the cost (95% for special cate gories), up to Rs 3 million for 
organizing costs and Rs 1 milli on for participating costs. ../2012 
 
Performance and Credit Rating Scheme  All MSEs MSEs may select a rating ag ency to obtain a credit rating.  The 
subsidy amounts to 75% of the fee charged by the rating 
agency, up to Rs 40,000.  2005/12 
Raw Materials 
Assistance Scheme  MSMEs Short-term credit finance is available for 90 days at 
concessional interest rates.  Concessions on the interest rate 
range from 0.5% to 1% depending upon the unit's credit 
rating. 2004/12 
 
Implemented by the Khadi and Village Industries Commission (KVIC) 
Prime Minister's Employment Generation Programme
b  New micro 
entrepreneurs  The subsidy amounts to 15% of the cost of establishing new 
micro enterprises in urban areas (25% for special categories);  and 25% of the cost of establishing new micro enterprises in 
rural areas (35% for special categories).  Maximum cost is 
Rs 2.5 million for setting up new manufacturing micro 
enterprises and Rs 1 million for setting up new micro enterprises engaged in services. 2008/12 
 
Rural Employment Generation Programme
b Rural 
artisans/entrepreneurs, and cooperative 
societies   The subsidy amounts to 25% of the cost for projects up to 
Rs 1 million, and to 10% of the difference between Rs 2.5 million and Rs 1 million for projects up to 
Rs 2.5 million. 1995/08 
 
Table AIII.9 (cont'd) 
  WT/TPR/S/249 Trade Policy Review 
Page 224 
  
 Scheme/programme Eligibility  Description Introduction/ 
validity 
Implemented by the Coir Board  
Rejuvenation, Modernization, and 
Technological 
Upgradation of Coir Industry Micro and small coir 
enterprises  The subsidy amounts to 40% of the cost of projects, up to 
Rs 80,000 for spinning/weaving enterprises and Rs 200,000 
for tiny/household enterprises 2008/12 
 
.. Not available.  
a National Institute for Micro, Small and Medium Enterprises,  National Institute for Entrep reneurship and Small Business 
 Development, and Indian In stitute of Entrepreneurship. 
b The Rajiv Gandhi Udyami Mitra Yojana scheme and the Rural Employment Generation Programme were merged into the Prime 
Minister's Employment Generation Programme in August 2008. 
c  Selected lead agencies for rendering assistance and ha ndholding support to potential first generation entrepreneurs. 
d Entrepreneurship development institutions , the National Small Industries Corporation (NSIC), the Khadi and Village Industries  
 Commission (KVIC), and the Coir Board. 
e Public and private sector banks, regional rural ba nks, foreign banks, and other financial institutions. 
f The Integrated Infrastructure Developm ent Scheme was merged into the Micro a nd Small Enterprises Cluster Development 
Programme in February 2010.  The level of financial assist ance to infrastructure development projects was enhanced. 
Note: "Special categories" refer to MSME s operated/owned by women or scheduled cas tes/scheduled tribes or located in the 
north-eastern region.   
Source:  Ministry of Micro, Small, and Medi um Enterprises online information, "Pr ogrammes and schemes" .  Viewed at:  
http://msme.gov.in/m sme_schemes.htm;  Developmen t Commissioner online information,  "Schemes".  Viewed at:  
http://www.dcmsme.gov.in/schemes/sidos cheme.htm;  National Small Industrie s Corporation online information, 
"Schemes".  Viewed at:  http://www.nsic.co.in/index.asp;  National Portal of India online information, "Schemes".  
Viewed at:  http://india.gov.in/govt/schemes.php;  Credit Guarantee Trust Fund for Micro and Small Enterprises 
online information, "Schemes".  Vi ewed at:  http://www.cgtmse.in/scheme s.aspx;  Development Commissioner 
(2009), Micro, Small, and Medium Enterp rises in India:  An Overview .  Viewed at:  
http://www.dcmsme.gov.in/ssiindi a/MSME_OVERVIEW09.pdf;  Deve lopment Commissioner (undated), 
Guidelines for Implementation of the Scheme Setti ng up of New Mini Tool Rooms under Public Private 
Partnership Mode .  Viewed at:  http:// www.dcmsme.gov.in/schemes/MTR Gudelines_New.pdf;  India 
Development Gateway online information,  "Prime Minister's Employment Generation Programme".  Viewed at:  
http://www.indg.in/agriculture/rural-employment-sche mes/pmegp/prime-minister2 019s-employment-generation-
programme-pmeg;  former Ministry of Agro and Rural Industries onlin e information, "Rural Employment 
Generation Programme".  Viewed at:  http://ari.nic.in/ar ischregp.htm;  Ministry of Micro, Small, and Medium 
Enterprises (2009), Rajiv Gandhi Udyami Mitra Yojana:  Web Application User Manual , August.  Viewed at:  
http://rgumy.nic.in/RGUMY_User_Manual_UdyamiMitra_Ve r3.pdf;  and information provided by the Indian 
authorities.  India WT/TPR/S/249 
 Page 225 
 
 
 Table AIII.10 
Central public sect or enterprises, 2011  
Activity Name State ownership (%) 
Agri-based industries Andaman and Nicobar Islands Forest and Plantation Development 
Corporation Ltd. 100.00 
 CREDA HPCL Biofuels Ltd.a 100.00 
 HPCL Biofuels Ltd.a 100.00 
 National Seeds Corporation Ltd. 100.00 
 State Farms Corporation of India 100.00 
Coal and lignite Bharat Coking Coal Ltd. 100.00 
 Central Coalfields Ltd. 100.00 
 Coal India Ltd. 100.00 
 Eastern Coalfields Ltd. 100.00 
 Mahanadi Coalfields Ltd. 100.00 
 MJSJ Coald Ltd.a 60.00 
 Northern Coalfields Ltd. 100.00 
 South Eastern Coalfields Ltd. 100.00 
 Western Coalfields Ltd. 100.00 
Iron and steel Ferro Scrap Nigam Ltd. 100.00 
 Maharashtra Electromelt Ltd. 99.13 
 Mishra Dhatu Nigam Ltd. 100.00 
 Rashtriya Ispat Nigam Ltd. 100.00 
 Sponge Iron India Ltd. 98.73 
 Steel Authority of India 85.52 
Other minerals and metals Bisra Stone Lime Company Ltd. 50.01 
 Eastern Investment Ltd. 100.00 
 FCI Aravali Gypum and Minerals India Ltd. 100.00 
 Hindustan Copper Ltd. 99.59 
 Indian Rare Earths Ltd. 100.00 
 J&K Mineral Development Corporation Ltd. 83.54 
 KIOLC Ltd. 99.00 
 Manganese Ore (India) Ltd. 81.57 
 National Aluminium Company Ltd. 87.15 
 National Mineral Development Corporation Ltd. 90.00 
 Orissa Mineral Development Company Ltd. 100.00 
 Uranium Corporation of India Ltd. 100.00 
Petroleum (refinery and 
marketing) Bharat Petroleum Corporation Ltd. 54.93 
Brahmaputra Crackers and Polymer Ltd.a 70.00 
 Chennai Petroleum Corporation Ltd. 51.86 
 GAIL (India) Ltd. 57.35 
 GAIL Gas Ltd. 100.00 
 Hindustan Petroleum Corporation Ltd. 51.05 
 Indian Oil Corporation Ltd. 78.92 
 Mangalore Refinery and Pe trochemicals Ltd. 71.77 
 Numaligarh Refinery Ltd. 61.65 
Crude oil Bharat Petro Resources JPDAa 100.00 
 Bharat Petro Resources Ltd. 100.00 
 Oil and Natural Gas Corporation Ltd. 74.14 
 Oil India Ltd. 78.44 
 ONGC Videsh Ltd. 100.00 
Table AIII.10 (cont'd)WT/TPR/S/249 Trade Policy Review 
Page 226 
  
 Activity Name State ownership (%) 
Fertilizers Brahmaputra Valley Fer tilizer Corporation Ltd. 100.00 
 Fertilizer Corporati on of India Ltd. 100.00  
 Fertilizers and Chemicals (Travancore) Ltd. 98.56 
 Hindustan Fertilizer Co rporation Ltd. 100.00  
 Madras Fertilizers Ltd. 59.12 
 National Fertilizers Ltd. 97.64 
 Rashtriya Chemicals a nd Fertilizers Ltd. 92.50 
Chemicals and pharmaceuticals Bengal Chem icals and Pharmaceuticals Ltd. 100.00 
 Bharat Immunologicals and Biologicals Ltd. 59.26 
 Bihar Drugs and Organic Chemicals Ltd.a 100.00 
 Hindustan Antibiotics Ltd. 100.00 
 Hindustan Fluorocarbons Ltd. 56.09 
 Hindustan Insecticides Ltd. 100.00 
 Hindustan Salts Ltd. 100.00 
 Indian Drugs and Pharmaceuticals Ltd. 100.00 
 Indian Medicines and Pharmaceu ticals Corporati on Ltd. 86.00 
 Indian Vaccine Corporation Ltd.a 66.68 
 Karnataka Antibiotics and Pharmaceuticals Ltd. 59.18 
 Orissa Drugs and Chemicals Ltd. 50.76 
 Rajasthan Drugs and Pharmaceuticals Ltd. 51.40 
 Sambhar Salts Ltd. 60.00 
Heavy engineering Bharat Bhari Udyog Nigam Ltd. 100.00 
 Bharat Heavy Electricals Ltd. 67.72 
 Bharat Heavy Plate and Vessels Ltd. 100.00 
 Bharat Wagon and Engineering Company Ltd. 100.00 
 Braithwaite & Co. Ltd. 100.00 
 Burn Standard Company Ltd. 100.00 
 Heavy Engineering Corporation Ltd. 100.00 
 Triveni Structurals Ltd. 100.00 
 Tungabhadra Steel Products Ltd. 79.27 
Medium and light engineering A ndrew Yule & Co. Ltd. 94.42 
 Balmer Lawrie & Co. Ltd. 61.76 
 BEL Optronics Devices Ltd. 92.79 
 Bharat Dynamics Ltd. 100.00 
 Bharat Electronics Ltd. 75.86 
 Bharat Pumps and Compressors Ltd. 100.00 
 Biecco Lawrie & Co. Ltd. 57.38 
 Central Electronics Ltd. 100.00 
 Electronics Corporation of India Ltd. 100.00 
 Hindustan Cables Ltd. 99.60 
 HMT Bearings Ltd. 99.36 
 HMT Chinar Watches Ltd. 100.00 
 HMT Ltd. 98.88 
 HMT Machine Tools Ltd. 100.00 
 HMT Watches Ltd. 100.00 
 IDPL (Tamil Nadu) Ltd. 100.00 
 Instrumentation Ltd. 100.00 
 ITI Ltd. 96.512 
 MNH Shakti Ltd.a 70.00 
Table AIII.10 (cont'd)India WT/TPR/S/249 
 Page 227 
 
 
 Activity Name State ownership (%) 
 Rajasthan Electronics and Instruments Ltd. 51.00 
 Richardson and Cruddas (1972) Ltd. 100.00 
 Vignyan Industries Ltd. 96.42 
Consumer goods Artificial Limbs Manufacturing Corporation of India 100.00 
 Cement Corporation of India 100.00 
 Hindustan Newsprint Ltd. 100.00 
 Hindustan Paper Corporation Ltd. 100.00 
 Hindustan Organic Chemicals Ltd. 91.78 
 Hindustan Photo Films Manufacturing Company Ltd. 90.63 
 Hindustan Vegetable Oils Corporation Ltd. 100.00 
 HLL Lifecare Ltd. 100.00 
 Hooghly Printing Company Ltd. 100.00 
 Jagdishpur Paper Mills Ltd.a 100.00 
 Nagaland Pulp and Paper Company Ltd. 94.76 
 NEPA Ltd. 97.75 
 Security Printing and Minting Corporation of India Ltd. 100.00 
 Tyre Corporation of India Ltd. 100.00 
Textiles Birds, Jute, and Exports Ltd. 74.36 
 British India Corpor ation Ltd. 100.00 
 National Jute Manufacturers Corporation Ltd. 100.00 
 National Textile Cor poration Ltd. 99.76 
Electricity Bhartiya Nabhikiya Vidyut Nigam Ltd.a 100.00 
 Bhartiya Rail Bijlee Company Ltd.a 100.00 
 Bhopal Dhule Transmission Company Ltd.a 100.00 
 Chhattishgarh Surguja Power Ltd.a 100.00 
 Coastal Karnataka Power Ltd.a 100.00 
 Coastal Maharashtra Mega Power Ltd.a 100.00 
 Coastal Tamil Nadu Power Ltd.a 100.00 
 Ghogarpalli Integrated Power Company Ltd.a 100.00 
 Jabalpur Transmission Company Ltd.a 100.00 
 Kanti Bijlee Utpadan Nigam Ltd.a 100.00 
 Loktak Downstream Hydroelectric Corporation Ltd.a 74.00 
 Narmada Hydroelectric Development Corporation Ltd. 51.08 
 National Hydroelectric Power Corporation Ltd. 86.36 
 Neyveli Lignite Corporation Ltd. 93.56 
 NLC Tamil Nadu Power Ltd.a 89.00 
 North Eastern Electric Power Corporation Ltd. 100.00 
 NTPC Electric Supply Company Ltd.a 100.00 
 NTPC Hydro Ltd.a 100.00 
 NTPC Ltd.  84.50 
 Nuclear Power Corporation of India Ltd. 100.00 
 Orissa Integrated Power Ltd.a 100.00 
 Power Grid Corporation of India 86.36 
 Power System Operation Corporation Ltd.a 100.00 
 Raichur Sholapur Transmission Company Ltd.a 100.00 
 REC Power Distribution Company Ltd. 100.00 
 REC Transmission Projects Company Ltd. 100.00 
 Rural Electrification Corporation Ltd. 66.80 
 Sakhigopal Integrated Power Company Ltd.a 100.00 
Table AIII.10 (cont'd)WT/TPR/S/249 Trade Policy Review 
Page 228 
  
 Activity Name State ownership (%) 
 Satluj Jal Development Corporation Ltd. 75.00 
 Tatiya Andhra Mega Power Ltd.a 100.00 
 Tehri Hydro Development Corporation Ltd. 71.98 
Trading and marketing services Antrix Corporation Ltd. 100.00 
 Central Cottage Industries Corporation 100.00 
 Central Railside Warehousing Company Ltd. 100.00 
 Central Warehousing Corporation 55.01 
 Cotton Corporation of India Ltd. 100.00 
 Food Corporation of India Ltd. 100.00 
 Handicrafts and Handlooms Exports Corporation of India Ltd. 100.00 
 HMT (International) Ltd. 100.00 
 India Trade Promotion Organization 100.00 
 Jute Corporation of India Ltd. 100.00 
 Karnataka Trade Promotion Organization 51.00 
 MMTC Ltd. 99.34 
 MSTC Ltd. 90.00 
 National Handlooms Developmen t Corporation Ltd. 100.00 
 North Eastern Regional Agriculture Marketing Corporation Ltd. 100.00 
 North Eastern Handicrafts and Ha ndlooms Corporation Ltd. 100.00 
 NTPC Vidyut Vyapar Nigam Ltd. 100.00 
 PEC Ltd. 100.00 
 State Trading Corporation of India Ltd. 91.02 
 STCL Ltd. 100.00 
 Tamil Nadu Trade Promotion Organization 100.00 
Construction services BBJ Construction Company Ltd. 100.00 
 Bridge and Roof Corporation (India) Ltd. 99.45 
 Hindustan Prefab Ltd. 100.00 
 Hindustan Steelworks Construction Ltd. 100.00 
 IRCON (International) Ltd. 99.80 
 IRCON Infrastructure and Services Ltd.a 100.00 
 Konkan Railway Corporation Ltd. 91.37 
 Mineral Exploration Corporation Ltd. 100.00 
 Mumbai Railway Vikas Corporation Ltd. 51.00 
 National Buildings Construction Corporation Ltd. 100.00 
 National Projects Construction Corporation Ltd. 99.84 
 Projects and Development India Ltd. 100.00 
 Rail Vikas Nigam Ltd. 100.00 
Transport equipment Air India Engineering Services Ltd.a 100.00 
 Bharat Earth Movers Ltd. 53.87 
 Cochin Shipyard ltd. 100.00 
 Garden Reach Shipbuilders and Engineers Ltd. 100.00 
 Goa Shipyard Ltd. 51.10 
 Hindustan Aeronautics Ltd. 100.00 
 Hindustan Shipyard Ltd. 100.00 
 Hooghly Dock and Port Engineers Ltd. 100.00 
 Mazagon Dock Ltd. 100.00 
 Scooters India Ltd. 95.37 
 Sethusamudram Corporation Ltd.a 66.44 
Table AIII.10 (cont'd)India WT/TPR/S/249 
 Page 229 
 
 
 Activity Name State ownership (%) 
Transport services Air India Air Transport Services Ltd. 100.00 
 Air India Charters Ltd. 100.00 
 Airlines Allied Services Ltd. 100.00 
 Airports Authority of India 100.00 
 Central Inland Water Transport Corporation Ltd. 99.89 
 Container Corporation of India Ltd. 63.09 
 Dedicated Freight Corridor Corporation of India Ltd.a 100.00 
 Dredging Corporation of India Ltd. 78.57 
 Ennore Port Ltd. 66.67 
 Fresh and Healthy Enterprises Ltd. 100.00 
 National Aviation Company of India Ltd. 100.00 
 Pawan Hans Helicopters Ltd. 78.47 
 Shipping Corporation of India Ltd. 80.13 
Tourism Assam Ashok Hotel Corporation Ltd. 51.00 
 Donyl Polo Ashok Hotel Corporation Ltd. 51.00 
 Hotel Corporation of India Ltd. 100.00 
 India Tourism Development Corporation Ltd. 92.11 
 Indian Railway Catering and Tourism Corporation Ltd. 100.00 
 Kumarakuppa Frontier Hotels Ltd. 91.00 
 Madhya Pradesh Ashok Hotel Corporation Ltd. 51.25 
 Pondicherry Ashok Hotel Corporation Ltd. 51.67 
 Punjab Ashok Hotel Company Ltd.a 51.20 
 Ranchi Ashok Bihar Hotel Corporation Ltd. 51.39 
 Utkal Ashok Hotel Corporation Ltd. 72.92 
Telecom Bharat Sanchar Nigam Ltd. 100.00 
 Mahanagar Telephone Nigam Ltd. 56.25 
 Millenium Telecom Ltd. 100.00 
 Railtel Corporation India Ltd. 100.00 
Insurance Agricultural Insurance Company of India Ltd. .. 
 General Insurance Corporation of India .. 
 Life Insurance Corporation of India Ltd. .. 
 National Insurance Company Ltd. .. 
 New India Assurance Company Ltd. .. 
 Oriental Insurance Company Ltd. .. 
 United India Insurance Company Ltd. .. 
Industrial development and 
technology consultancy Broadcast Engineering Consultants India Ltd. 100.00 
Central Mine Planning and Design Institute Ltd. 100.00 
 Certification Engineers International Ltd. 100.00 
 Ed.CIL (India) Ltd. 100.00 
 Engineering Projects (India) Ltd. 99.97 
 Engineers India Ltd. 90.40 
 HSCC (India) Ltd. 100.00 
 MECON Ltd. 100.00 
 National Informatics Centre Services Inc. 100.00 
 National Research Development Corporation Ltd. 100.00 
 National Small Industries Corporation Ltd. 100.00 
 PFC Consulting Ltd. 100.00 
 RITES Ltd. 100.00 
Table AIII.10 (cont'd)WT/TPR/S/249 Trade Policy Review 
Page 230 
  
 Activity Name State ownership (%) 
 Telecommunications Consultants India Ltd. 100.00 
 Water and Power Consultancy Services (India) Ltd. 100.00 
Financial services Balmer Lawrie Investments Ltd. 59.68 
 Export Credit Guarantee Corporation of India Ltd. 100.00 
 Housing and Urban Developm ent Corporation Ltd. 100.00 
 India Infrastructure Finance Company Ltd. 100.00 
 Indian Railways Finance Corporation Ltd. 100.00 
 Indian Renewable Energy Development Agency Ltd. 100.00 
 National Backward Classes Finance and Development Corporation 100.00 
 National Film Development Corporation of India Ltd. 100.00 
 National Handicapped Finance and Development Corporation 100.00 
 National Minorities Development and Finance Corporation 81.62 
 National Safai Karamcharis Finance and Development Corporation 100.00 
 National Scheduled Castes Finance and Development Corporation 100.00 
 National Scheduled Tribes Finance and Development Corporation 100.00 
 Power Finance Corporation Ltd. 89.78 
.. Not available. 
a Enterprise under construction. 
Source:  Department of Pub lic Enterprises (2010), Public Enterprises Survey 2008-2009 , February.  Viewed at:  
 http://dpe.nic.in/newsite/s urvey0809/pesurvey.html;  and information provided by the Indian authorities. India WT/TPR/S/249 
 Page 231 
 
 
 Table AIV.1 
India's banking system, 2007 and 2010 
Financial 
institutions Number 
Definition, function, and laws by which 
they are governed Requirements for establishment (if applicable) 
2007 2010 Nationals Foreigners 
Scheduled 
commercial 
banksa 82 81 Banks included in the Second Schedule of 
the Reserve Bank of India 1934 - - 
State bank of 
India (SBI) 
and associates  8  8b Governed by the State Bank of India Act 
1955.  The associates are governed by the 
State Bank of India (Subsidiary Banks) Act 1959
c;  SBI and associates also 
governed by the Reserve Bank of India 
(RBI) Act 1934 and the Banking 
Regulation Act 1949 Parliamentary 
approval required;  
Central Government shareholding cannot be less than 51% FDI and portfolio 
subject to overall 
statutory limits of 20% 
Nationalized 
banks  19 19 Governed by the Banking Companies 
(Acquisition and Transfer of Undertakings) Act 1970 (14 banks) and 
the Banking Companies (Acquisition and Transfer of Undertakings) Act 1980 (five 
banks);  also regulated by the RBI Act 
1934 and the Banking Regulation Act 
1949 Parliamentary 
approval required;  Central Government 
shareholding cannot be 
less than 51%  FDI and portfolio 
subject to overall 
statutory limits of 20% 
Foreign banks  29 32 Governed by the RBI Act 1934, the 
Banking Regulation Act 1949, the 
Companies Act 1956, and other acts not 
inconsistent with the Banking Regulation 
Act 1949 Set up by foreign 
parent banks  Bank branches of 
parent banks  
Private sector banks  26 22 Companies incorporated under the 
Companies Act 1956 and licensed under 
the Banking Regulation Act 1949 (Section 
22), to carry on banking business
d;  
engaged in activities stipulated in the Banking Regulation Act 1949 (Section 6);  
governed by the RBI Act 1934, the 
Banking Regulation Act 1949, the Companies Act 1956, and other acts not 
inconsistent with the Banking Regulation 
Act 1949 Guidelines for 
licensing issued in 
1993 (ten banks 
licensed);  revised 
guidelines issued in 2001 (two banks licensed) 74% is the maximum 
aggregate of foreign 
investment from all 
sources
e;  26% of 
paid-up capital must be held by resident Indians  
State 
cooperative 
banks 31 31 Principal cooperative society in a State;  
main objective is to finance other state's 
cooperative societies as stipulated in the 
National Bank for Agriculture and Rural 
Development (NABARD) Act 1981 (Section 2(u));  also governed by the RBI 
Act 1934, the Banking Regulation Act 
1949 (as applicable to cooperative societies) and the relevant State's Cooperative Societies Act  Established as per the 
relevant State's 
Cooperative Societies 
Act;  licensed by the 
RBI under the Banking Regulation Act 1949 (Section 22) FDI not allowed 
Urban 
cooperative 
banks  1,770 1,674 Cooperative societies established and 
registered under the respective States' Cooperative Societies Act;  they are 
present in 28 states/union territories;  under the RBI regulation and supervision 
since 1 March 1966 when the Banking 
Regulation Act 1949 applied to them for banking-related functions;  other aspects 
governed by the respective State's 
Cooperative Societies Act Set up by their 
members who are 
Indian nationals FDI not allowed 
Table IV.1 (cont'd)  WT/TPR/S/249 Trade Policy Review 
Page 232 
  
 Financial 
institutions Number 
Definition, function, and laws by which 
they are governed Requirements for establishment (if applicable) 
2007 2010 Nationals Foreigners 
Central 
cooperative 
banks 367 371 Governed by the RBI Act 1934, the 
Banking Regulation Act 1949 (as 
applicable to cooperative societies), the 
NABARD Act 1981, and the relevant 
State's Co-operative Societies Act, under 
which the bank is established Established as per the 
relevant State's 
Cooperative Societies 
Act;  licensed by the 
RBI under the Banking Regulation Act 1949 (Section 22) FDI not allowed 
Regional 
rural banks  96 82 Governed by the Regional Rural Banks 
(RRBs) Act 1976, the RBI Act 1934, and 
the Banking Regulation Act 1949;  established to develop the rural economy 
by providing credit and other facilities, in 
particular to small and marginal farmers, agricultural labourers, artisans, and small entrepreneurs  Under RRBs Act 
1976, Central 
Government may, if requested by a sponsor 
bank, by notification 
in the Official Gazette , 
establish one or more 
RRBs in a State or 
union territory, and specify the local limits for operation FDI not allowed  
Other 
institutions       
Development 
finance 
institutions 7 5 Promoted or assisted by the Government 
to provide development finance to one or 
more sectors or subsectors of the economy;  classified as term-lending institutions, refinancing institutions, and 
sector specific institutions;  governed by 
the RBI Act 1934 and the respective acts enacted by Parliament (the National 
Housing Bank Act, the Exim Bank Act, 
the NABARD Act, and the Small Industries Development Bank of India Act) Only nationals 
(Government of 
India/RBI) FDI not allowed  
Non-banking 
financial 
companies 
(NBFCs) 12,968 12,662 Registered under the Companies Act 1956 
to provide loans and advances, acquisition 
of shares/stock/bonds/d ebentures/securities 
issued by the Government or local 
authorities or other securities of like marketable nature, leasing, hire-purchase, 
insurance business, and chit business
f;  
non-banking institutions whose main business is to receive deposits defined as 
NBFCs (residuary non-banking company);  
NBFCs are governed by the RBI Act 1934 (with the RBI as regulator);  NBFCs 
classified as assent finance companies 
(AFCs)
g, investment companies, loan 
companies, and infrastructure finance 
companies (IFCs)h Under RBI Act 1934 
(Section 45-IA), must 
register with the RBI to start or carry on any 
business of NBFC as 
defined in the RBI Act 1934 (Section 45-I, 
clause (a)), and must 
have minimum net owned fund of 
Rs 20 million;  to 
prevent dual regulation, certain 
NBFCs categories, 
regulated by other regulators, are exempt from the registration requirement
i FDI allowed up to 
100% of the paid-up 
capital, subject to minimum 
capitalization norms :  
(i) foreign equity ≤ 
51%, US$500,000 
minimum 
capitalization requirement;  
(ii) foreign equity > 
51% but ≤ 75%, it is 
US$5 million;  
(iii) foreign equity > 
75%, it is US$50 million;  and (iv) 100% 
foreign-owned NBFCs 
act as holding companies and 
specific activities 
undertaken by step-down subsidiaries 
with minimum 25% 
domestic equity 
Table IV.1 (cont'd)  India WT/TPR/S/249 
 Page 233 
 
 
 Financial 
institutions Number 
Definition, function, and laws by which 
they are governed Requirements for establishment (if applicable) 
2007 2010 Nationals Foreigners 
Primary 
dealers (PDs)  17j  18k System of PDs in Government securities 
(G-Sec) market, comprising independent 
entities undertaking PD activity;  expected 
to play an active role  in the G-Sec market 
(primary and secondary market segments);  required to support auctions for issue of 
Government dated securities and treasury 
bills as per the minimum norms prescribed by the RBI from time to time;  stand-alone 
PDs registered as NBFCs under the RBI 
Act 1934 (Section 45-IA);  their operations regulated by RBI guidelines 
issued from time to time;  banks' PD 
activities governed by guidelines issued by 
the RBI  Non-bank applicant 
must have net owned 
funds (NOFs) of at 
least Rs 1.5 billion;  a 
PD undertaking other permissible activities 
must have NOFs of at 
least Rs 2.5 billion;  banks may undertake 
PD business 
departmentally subject to:  (i) minimum NOF 
of Rs 10 billion;  
(ii) minimum CRAR of 9%;  and (iii) net 
NPAs of less than 3% 
and a profit-making record for the last three years  Subsidiaries or 
joint-ventures set up 
by entities 
incorporated abroad 
need approval of the Foreign Investment 
Promotion Board for 
PD activities  
a Includes the State bank of India and associates, nati onalized banks, foreign banks, and private sector banks. 
b Including six associates. 
c The State Bank of Hyderabad is governed by the State Bank of Hyderabad Act 1956. 
d Accepting deposits for the purpose of le nding or investment of deposits of mone y from the public, repayable on demand and 
withdrawable by cheque, draft or order.   
e FDI, foreign institutional inve stors, and non-resident Indians. 
f NBFCs do not include institutions whose principal busine ss is that of agriculture or industrial activities, and 
sale/purchase/construction of immovable property. 
g AFCs are financial institutions.  Their principal business is the fi nancing of physical assets supporting productive/economic  
activity (e.g. automobiles, tractors, late r machines, generator sets, earth-moving, and material handling equipment) moving on 
own power and general purpose is defined as aggregate of financing real/physical  assets supporting economic activity and 
income arising therefrom is not less than 60% of  total assets and total income, respectively. 
h IFCs are non-deposit-taking NBFCs that fulfil the following criteria:   (i) at least 75% of the total assets should be deploye d in 
infrastructure loans, as stipulated in  the Non-Banking Financial (Non-Deposit Accepting or Hold ing) Companies Prudential 
Norms (Reserve Bank) Directions 2007 (Para 2(viii));  (ii) mini mum net owned funds of Rs 3 b illion;  (iii) minimum credit ratin g 
"A" or equivalent of CRISIL, FITCH, CARE , ICRA or equivalent rating by other accr editing rating agencies;  and (iv) CRAR of 
15% (with minimum tier I capital of 10%). 
i Venture capital fund, merchant banking comp anies, stock-broking companie s registered with the Securities and Exchange Board 
of India, insurance companies holding a valid  certificate of registration issued by IR DA, Nidhi companies as notified under the  
Companies Act 1956 (Section 60A), chit companies as defined unde r the Chit Funds Act 1982 (Section 2, clause (b)) or housing 
finance companies regulated by the National Housing Bank.   
j Of which, 8 stand-alone PDs and 9 bank PDs. 
k Of which, 7 stand-al one PDs and 11 bank PDs. 
Source : Information provided by the authorities. 
 WT/TPR/S/249 Trade Policy Review 
Page 234 
  
 Table AIV.2 
Telecom licensing regimes, 2011 
 Financial requirement Obligation Fee Validity 
Unified access service (UAS) for fixed and mobile telephony  
 Financial bank guarantee 
(Rs 50-500 million) and performance bank guarantee (Rs 20-200 million)  Minimum 10% coverage during 
the first year and 50% within three years in urban areas
a;  and 
interconnection to national 
long-distance service providers Application processing fee (Rs 15,000), 
one-time entry fee (Rs 10 million-Rs 2.33 billion), and annual 
fee (6%-10% of adjusted gross revenue)
b   20 years, 
renewable for 10 years 
National long-distance  
 Financial bank guarantee 
(Rs 200 million);  no dues certificate 
in respect of outstanding amount against any licence granted to the applicant; and minimum net worth and 
paid-up equity capital (Rs 25 million)  Interconnection to international 
long-distance service providers Application processing fee (Rs 15,000), 
one-time entry fee (Rs 25 million), and 
annual fee (6% of the adjusted gross revenue) 20 years, 
renewable for 
10 years 
International long-distance  
 Financial bank guarantee 
(Rs 200 million);  no dues certificate 
in respect of outstanding amount 
against any licence granted to the applicant;  and minimum networth and paid-up equity capital (Rs 25 million)  Interconnection to national 
long-distance service provider Application processing fee (Rs 50,000), 
one-time entry fee (Rs 25 million), and 
annual fee (6% of adjusted gross revenue) 20 years, 
renewable for 
5 years 
Internet service providersc 
Category A  
 Financial bank guarantee 
(Rs 1 million) and performance bank 
guarantee (Rs 20 million)  n.a. Application processing fee (Rs 15,000), 
one-time entry fee (Rs 3 million), and 
annual fee (6% of adjusted gross revenue, subject to a minimum of Rs 50,000);  renewals subject to an additional entry fee 
(Rs 1 million) 20 years, 
renewable for 
5 years 
Category B 
 Financial bank guarantee (Rs 100,000) 
and performance bank guarantee 
(Rs 2 million) 
 n.a. Application processing fee (Rs 15,000), 
one-time entry feec (Rs 1.5 million), and 
annual fee (6% of adjusted gross revenue, 
subject to a minimum of Rs 10,000);  renewals subject to an additional entry fee (Rs 500,000) 20 years, 
renewable for 
5 years 
Infrastructure providers 
Category Id 
 n.a. n.a. Application processing fee (Rs 5,000) 20 years, 
renewable for 
10 years 
Category IIe 
 n.a. n.a.  n.a. 20 years, 
renewable for 
10 years 
n.a. Not applicable.   
a No coverage requirement in rural areas.  
b Since 1 October 2008, operators provi ding fixed telecom services in rural areas are exempt from the annual fee. 
c Internet service providers with net wort h of Rs 1 billion are allowed to provide in ternet protocol television service (at pre sent, 
two providers).  
d Lease/rent out/sell dark fibre, right of way, duc t space, and tower to telecom service providers.   
e Lease/rent out/sell end-to-end bandwidth, i.e. digital transm ission capacity capable of carrying a message, to telecom servic e 
providers.   
Note: The financial bank guarantee ensures the payment of charges/ fees by the Government, e.g. spectrum charges and licensing f ees.  
The performance bank guarantee ensures that provi ders meet their roll-out obligations.   
Source:  Department of Telecommunications  online information, "Information and Guidelines".  Viewed at:  
 http://www.dot.gov.in;  Department of Tele communications, Notificat ion No. 20 100/2007 AS I, 
 1 October 2008; Department of Telecommunications (2010), Annual Report 2009-2010 .  Viewed at:  
 http://www.dot.gov.in/annualreport/2010/ final.pdf;  and information provided by the Indian authorities.  India WT/TPR/S/249 
 Page 235 
 
 
 Table AIV.3 
Auctioning of 3G and BWA spectrums, 2010 
 
Eligibility Reserve price (category of 
telecom services area) Coverage obligat ion and penalty  Annual fee Validity  
3G spectrum 
 Telecom service 
providers;  Any person with 
experience in 3G 
telecom services and committed to obtain a 
UAS licence Rs 3.2 billion (category A, 
Delhi, and Mumbai);   Rs 1.2 billion (category B 
and Kolkata); 
Rs 300 million (category C) Within five years:  90% coverage in 
metro areas;  and 50% coverage in district cities (categories A, B, and C), 
of which 15% coverage must be rural 
short-distance charging areas.  For non-compliance, licence holder is 
allowed an extra year, subject to a 
penalty;  if coverage obligation not met after extended period, spectrum 
allocation withdrawn  3%-8% of 
adjusted gross revenue 20 years 
BWA spectrum  
 Telecom service 
providers; 
Internet service providers (category A 
or B)  Rs 1.6 billion (category A, 
Delhi, and Mumbai); 
Rs 600 million (category B and Kolkata); 
Rs 150 million (category C) Within five years:  90% coverage in 
metro category;  and at least 50% 
coverage in rural short-distance charging areas.  Spectrum allocation 
withdrawn in case of non-compliance First year:  no fee; 
1% of adjusted 
gross revenue  20 years 
Source:  Department of Telecommunications(2010), Auction of 3G and BWA Spectrum:   N o t i c e  I n v iting Applications , 
25 February.  Viewed at:  http://dot.gov.in/as/ Auction%20of%20Spectrum%20for3G%20&%20BWA/new/ 
index.htm;  and information provi ded by the Indian authorities. 
 
__________