Concluding remarks by the Chairperson

The sixth Trade Policy Review of India has offered us an excellent opportunity to learn about the development of the trade, economic, and investment policies of India since its previous Review in 2011, and the challenges it faces. Our discussion was greatly facilitated by the statement from the head of the delegation of India, Mr Rajeev Kher, Commerce Secretary, and by the insightful comments from the Discussant, the Ambassador of the Philippines to the WTO, Mr Esteban Conejos. India’s prompt response to more than 700 advanced written questions has been greatly appreciated by Members, and we look forward to answers to any outstanding questions no later than one month after this meeting.

Members commended India’s accelerating economic growth during the review period, particularly in the services sector, and the milder inflation in recent years. Members recognized India’s need and willingness to overcome its structural bottlenecks, including fiscal deficit, shortfalls in infrastructure such as education, health care, transportation, and power supply, delays in project approval, difficulties in land acquisition, low manufacturing base and agricultural productivity, and cumbersome labour market regulations. In this respect, Members urged India in particular to pursue further tax reforms, which may increase government revenues, as well as to increase investment in infrastructure. They welcomed its steps to introduce a nationwide Goods and Services Tax. Members commended India’s measures to improve business and invest environment, including "make in India" initiatives, and the establishment of an e-business portal. While appreciating India’s efforts at raising foreign equity limits in some sectors such as insurance and railway transport, and speeding up investment procedures, they asked for further improvement in these areas.

Members recognized that India is playing a more important role in the global economy as one of the largest developing countries. Members commended India’s active participation in the multilateral trading system and the key role it assumes in the DDA negotiations. Members appreciated India’s trade facilitation measures, such as the adoption of self-assessment in customs procedures, and encouraged India to submit its Category A notification under the Agreement on Trade Facilitation and to expedite the ratification process. Some Members looked forward to India’s implementation of the Information Technology Agreement. Members noted India’s increased involvement in regional trade agreements, and hoped that these agreements will contribute to maintaining and strengthening the multilateral trading system. While some Members commended India’s recent initiatives to improve the transparency and predictability of its trade and related policies, such as inviting public comments on new legislation, Members urged India to provide timely public consultations on draft regulations, submit notifications on a regular basis to the WTO, and provide a reasonable period between the announcement of new regulations and their entering into force. Members appreciated that India has been providing duty free and quota free access for LDC exports; in this regard, some Members encouraged India to simplify rules of origin requirements.

Members welcomed India’s various economic and trade policy reforms. However, they voiced concerns with respect to tariff increases, the complexity and uncertainty in tariffs and other charges including an additional duty and a special additional duty, and the large difference between applied and bound rates. Some Members raised concerns about customs valuation and import licensing requirements on particular products. Recent changes to anti-dumping regulations were noted. However, concerns were raised on the frequent use of contingency measures as well as the complexity of import licensing measures. Some Members asked questions regarding India’s technical regulations and SPS measures, including how they are related to international standards. Questions were also raised about the technical regulations and certification procedures concerning certain specific products. Some Members urged India to avoid recourse to export restrictions and minimum export prices.

Members welcomed the removal of some subsidies and price controls on fossil fuels (such as diesel). Concerns were expressed by some Members regarding subsidies, in particular those pertaining to agriculture and food (for example, on sugar), and fertilizers. Other issues raised by Members include local content requirements and India’s intellectual property regime, in particular regarding the protection of trade secrets and test data.

Members commended India for not introducing new trade barriers in order to protect agriculture and manufacturing sectors, and also for eliminating state trading requirements for some agricultural products. Nonetheless, concerns were raised on its high agricultural tariffs and some uncertainties concerning domestic supply conditions for agricultural products. Members called for a balance between food security and a predictable trade regime, and urged India to step up its efforts to liberalize its agriculture sector notably by lowering and simplifying its tariffs.

Members recognized services as the main pillar of India’s economy. This sector has contributed substantially to the recent economic growth. Members urged further liberalization of services, including distribution and e-commerce.

The Indian authorities provided detailed answers to Members’ questions and comments expressed at this meeting. The sixth Review of India’s trade policies was successfully concluded to the benefit of all the Membership. The large number of advance written questions submitted before the meeting and the number of delegations that took the floor during our two days of discussions highlight the importance attached to India’s trade and related policies and its role in the multilateral trading system. In closing, I would like to thank Secretary Kher and the rest of the Indian delegation, all the other delegations, the Discussant and the Secretariat for the very positive and active contribution to the sixth Trade Policy Review of India.