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RESTRICTED WT/TPR/S/403 25 November 2020

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RESTRICTED WT/TPR/S/403 25 November 2020 RESTRICTED WT/TPR/S/403 25 November 2020 (20-8526) Page: 1/175 Trade Policy Review Body TRADE POLICY REVIEW REPORT BY THE SECRETARIAT INDIA This report, prepared for the seventh Trade Policy Review of India, has been drawn up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), sought clarification from India on its trade policies and practices. Any technical questions arising from this report may be addressed to Ms Eugenia Lizano (tel.: 022 739 6578), Ms Rohini Acharya (tel.: 022 739 5874), Ms Stéphanie Dorange-Patoret (tel.: 022 739 5497). Document WT/TPR/G/403 contains the policy statement submitted by India. Note: This report is subject to restricted circulation and press embargo until the end of the first session of the meeting of the Trade Policy Review Body on India. This report was drafted in English. WT/TPR/S/403 • India - 2 - CONTENTS SUMMARY ........................................................................................................................ 8 1 ECONOMIC ENVIRONMENT ........................................................................................ 14 1.1 Main Features of the Economy .................................................................................... 14 1.2 Recent Economic Developments.................................................................................. 14 1.3 Fiscal Policy ............................................................................................................. 20 1.4 Monetary and exchange rate policy ............................................................................. 23 1.5 Balance of payments ................................................................................................. 24 1.6 Developments in Trade and Investment ....................................................................... 26 1.6.1 Trends and patterns in merchandise and services trade ............................................... 26 1.6.1.1 Merchandise trade ............................................................................................... 26 1.6.1.2 Services trade .................................................................................................... 28 1.6.2 Trends and patterns in FDI ...................................................................................... 29 2 TRADE AND INVESTMENT REGIMES ........................................................................... 31 2.1 General Framework .................................................................................................. 31 2.2 Trade Policy Formulation and Objectives ...................................................................... 32 2.2.1 Trade policy formulation ......................................................................................... 32 2.2.2 Trade policy objectives ........................................................................................... 34 2.3 Trade Agreements and Arrangements .......................................................................... 35 2.3.1 WTO .................................................................................................................... 35 2.3.2 Regional and preferential agreements ....................................................................... 37 2.3.2.1 Regional trade agreements ................................................................................... 37 2.3.2.2 Preferential trade agreements ............................................................................... 38 2.3.3 Other agreements and arrangements ........................................................................ 38 2.4 Investment Regime .................................................................................................. 38 2.4.1 Legal framework .................................................................................................... 38 2.4.1.1 Compulsory industrial licensing ............................................................................. 39 2.4.2 Foreign investment ................................................................................................ 40 2.4.2.1 Policy framework ................................................................................................ 40 2.4.3 Investment incentives ............................................................................................ 41 3 TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 43 3.1 Measures Directly Affecting Imports ............................................................................ 43 3.1.1 Customs procedures, valuation, and requirements ...................................................... 43 3.1.2 Rules of origin ....................................................................................................... 47 3.1.3 Tariffs .................................................................................................................. 47 3.1.3.1 Applied tariffs ..................................................................................................... 47 3.1.3.2 Bound tariffs ...................................................................................................... 49 3.1.3.3 Tariff rate quota (TRQ) ........................................................................................ 49 3.1.3.4 Tariff concessions ................................................................................................ 50 3.1.3.5 Tariff preferences ................................................................................................ 51 WT/TPR/S/403 • India - 3 - 3.1.4 Other charges affecting imports ............................................................................... 52 3.1.5 Import prohibitions, restrictions, and licensing ........................................................... 55 3.1.5.1 Import prohibitions ............................................................................................. 55 3.1.5.2 Import licensing and restrictions ........................................................................... 59 3.1.6 Anti-dumping, countervailing, and safeguard measures ............................................... 60 3.1.6.1 Anti-dumping measures ....................................................................................... 60 3.1.6.2 Countervailing measures ...................................................................................... 66 3.1.6.3 Safeguard measures ............................................................................................ 68 3.2 Measures Directly Affecting Exports ............................................................................. 70 3.2.1 Customs procedures and requirements ..................................................................... 70 3.2.2 Taxes, charges, and levies ...................................................................................... 71 3.2.3 Minimum export prices ........................................................................................... 72 3.2.4 Export prohibitions, restrictions, and licensing ............................................................ 72 3.2.5 Export support and promotion ................................................................................. 73 3.2.5.1 Export from India Scheme (EIS) ............................................................................ 73 3.2.5.2 Duty exemption/remission schemes ....................................................................... 75 3.2.5.3 Export zones and other schemes ........................................................................... 78 3.2.5.4 Transport and marketing assistance ....................................................................... 78 3.2.6 Export finance, insurance, and guarantees ................................................................ 79 3.3 Measures Affecting Production and Trade ..................................................................... 81 3.3.1 Incentives ............................................................................................................ 81 3.3.2 Standards and other technical requirements .............................................................. 83 3.3.3 Sanitary and phytosanitary requirements .................................................................. 86 3.3.4 Competition policy and price controls ........................................................................ 91 3.3.4.1 Competition policy .............................................................................................. 91 3.3.4.2 Price control ....................................................................................................... 95 3.3.5 State trading, state-owned enterprises, and privatization ............................................. 97 3.3.5.1 State trading ...................................................................................................... 97 3.3.5.2 SOEs and privatization ......................................................................................... 99 3.3.6 Government procurement ..................................................................................... 100 3.3.7 Intellectual property rights .................................................................................... 105 3.3.7.1 National IPR Policy 2016 ...................................................................................
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