WORLD TRADE
ORGANIZATIONS/DCS/W/IND
2 April 2003
(03-1841)
Trade in Services Original:  English
COMMUNICATION FROM INDIA
Draft consolidated Schedule of Specific Commitments
Attached herewith is the draft consolidated version of the Schedule of Specific Commitments
and List of Article II (MFN) Exemptions of India.  This is not a legally binding document and is not asubstitute for the legally binding commitments and exemptions undertaken by India in its Schedule of
Specific Commitments (GATS/SC/42; GA TS/SC/42/Suppl.1, GATS/SC/42/Suppl.2,
GATS/SC/42/Suppl.3, and GATS/SC/42/Suppl.4) an d List of Article II (MFN) Exemptions
(GATS/EL/42; GATS/EL/42/Supp l.1 and GATS/EL/42/Suppl.2).
_______________S/DCS/W/IND
Page 2INDIA – SCHEDULE OF SPECIFIC COMMITMENTS
Modes of supply:    1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
I.  HORIZONTAL COMMITMENTS
ALL SECTORS INCLUDED
IN THIS SCHEDULE
3) In case of collaboration with public sector
enterprises or government undertakings asjoint venture partners, preference in accesswill be given to foreign service
suppliers/entities which offer the best terms
for transfer of technology.
4) Unbound except for measures affecting the
entry and temporary stay of natural personswho fall in any of the following categories:4) Unbound except for measures referred to
under Market Access.
(a) Business visitors
Persons who visit India for the purposes
specified in (i) and (ii) below and who will not
receive remuneration from within India:
(i) for business negotiations, or(ii) for preparatory work for establishing a
commercial presence in India.
Entry for persons in this category shall be fora period of not more than 90 days.S/DCS/W/IND
Page 3Modes of supply:    1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
(b) Intra-corporate transferees
At the level of Managers, Executives and
Specialists who have been in the employmentof a juridical person of another Member for a
period not less than one year prior to the date
of application for entry into India and arebeing transferred to a branch or arepresentative office or a juridical personowned or controlled by the aforesaid juridicalperson.
Managers are:
Persons who direct a branch office or one or
more departments as their head, or superviseor control the work of other supervisory,professional or managerial personnel andhave the authority to appoint or remove thepersonnel and powers to exercise
discretionary authority over day-to-day
operations.
Executives are:
Persons who are in senior positions within a
juridical person including a branch who
primarily direct the management, have wide
decision-making powers and are eithermembers of the board of directors or receivedirections from the board or the general bodyof shareholders.
Specialists are:
Persons who possess high qualifications and
knowledge at an advanced level relevant tothe organization's activities or of theorganization's research, equipment,techniques or management and may include
persons who are members of accredited
professional bodies.S/DCS/W/IND
Page 4Modes of supply:    1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
Entry for persons in the above categories
shall be for a maximum period of five years.
(c) Professionals
Natural persons to be engaged by a juridicalperson in India as part of a services contract
for rendering professional services for which
he/she possess the necessary academiccredentials and professional qualificationswith three years experience in the field ofphysical sciences, engineering or other
natural sciences.
Entry and stay in this category shall be for a
maximum period of one year extendable withpermission for a maximum of three months.
II.  SECTOR – SPECIFIC COMMITMENTS
1.  BUSINESS SERVICES
A. Professional Services
(e) Engineering Services
(CPC 8672)1) Unbound
2) Unbound3) Only through incorporation with a foreign
equity ceiling of 51 per cent
4) Unbound except as indicated in the horizontal
section1) Unbound
2) Unbound3) None
4) Unbound except as indicated in the
horizontal sectionS/DCS/W/IND
Page 5Modes of supply:    1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
B. Computer and Related
Services
(a) Consultancy services
related to the installation
of computer hardware(CPC 841)
(b) Software implementation
services (CPS 842)
(c) Data processing services
(CPC 843)
(d) Database services (CPC
844)
(e) Maintenance and repair
services of officemachinery and equipment
including computers (CPC
845)1) Unbound
2) Unbound
3) Only through incorporation with a foreign
equity ceiling of 51 per cent
4) Unbound except as indicated in the horizontal
section1) Unbound
2) Unbound
3) None
4) Unbound except as indicated in the
horizontal section
C. Research and
Development Services
(a) R&D services on the
following natural sciencesonly:
Heat, light,
electromagnetism,
astronomy, but excluding
atomic energy and relatedmatters (CPC 85101)1) Unbound
2) Unbound*3) Only through incorporation with a foreign
equity ceiling of 51 per cent.
4) Unbound except as indicated in the horizontal
section.1) Unbound
2) Unbound*3) None
4) Unbound except as indicated in the
horizontal section.S/DCS/W/IND
Page 6Modes of supply:    1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
Engineering and
technology, includingapplied science andtechnology for casting,
metal, machinery,
electricity,communications, vessels,aircrafts, civil engineering,construction, information,etc. (CPC 85103)
F. Other Business Services
(e) Technical testing and
analysis services (CPC8676)1) Unbound
2) Unbound3) Only through incorporation with a foreign
equity ceiling of 51 per cent
4) Unbound except as indicated in the horizontal
section1) Unbound
2) Unbound3) None
4) Unbound except as indicated in the
horizontal sectionS/DCS/W/IND
Page 7Modes of supply:    1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
2. COMMUNICATION
SERVICES
C. Telecommunication
Services1
(a) Voice telephone service
(CPC 7521**)
Limited to local/long
distance, for public useover a public
telecommunication
transport network.1) Unbound
2) Unbound3) The service will be permitted to be provided
only after the operator gets a licence from theDesignated Authority who shall determinethe need, if any, for issuance of new licences.
The terms and conditions of the licence will
be as laid down by the Designated Authorityor Government or the prevailing laws in thecountry.1) Unbound
2) Unbound3) UnboundThe definition and principles on
the regulatory framework forthe basic telecommunication
services subscribed to by India
are contained in the annex titled"Explanatory Paper onAdditional Commitments byIndia".
Wire based (i.e. for fixednetwork of subscribers).There will be one operator other than
Department of Telecommunications
(DOT)/Mahanagar Telephone Nigam Ltd.
(MTNL) in each service area for a period of10 years from the grant of licence after whichthe position will be reviewed.
The private operator should be a company
registered in India in which total foreign
equity must not exceed 25%.The subject of opening up of
national long-distance service
beyond service area tocompetition will be reviewed inthe year 1999
Service operator will be permitted to providelong distance service within the licensed
service area only.Also, the subject of opening up
of international service to
competition will be reviewed in
the year 2004)
                                                     
     1excluding broadcasting services and measures affecting such serv ices.  Broadcasting is defined as a form of the uni-directional  telecommunications intended for
large number of users having appropriate receiving facilities and carried out by means of radio or cable network. This may incl ude sound transmission, television
transmission or other types of transmission.S/DCS/W/IND
Page 8Modes of supply:    1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
Resale of voice telephone services will not be
permitted.  However, licensees can grantfranchises on commission basis for providingpublic call offices (PCOs) service.
The detailed terms and conditions for
providing the service will be as per licence
conditions.
4) Unbound except as indicated in the
horizontal commitments4) Unbound except as indicated in the
horizontal commitments
(c) Circuit switched data
transmission services
(CPC 7523**)1) Unbound
2) Unbound
3) Licensed voice telephone service operators
will be permitted for transmission of data onthe PSTN
2 network in its licensed service
area.
4) Unbound except as indicated in the horizontal
commitments1) Unbound
2) Unbound
3) Unbound
4) Unbound except as indicated in the
horizontal commitments
(f) Facsimile services
(CPC 7521**)1) Unbound
2) Unbound3) Licensed voice telephone service operators
will be permitted for transmission of
facsimile on the PSTN network in itslicensed service area.  Franchisees of serviceoperators can provide commercial facsimileservices
4) Unbound except as indicated in the
horizontal commitments1) Unbound
2) Unbound3) Unbound
4) Unbound except as indicated in the
horizontal commitments
                                                     
     2PSTN refers to Public Switched Voice Telephone Network which is operated by DoT/MTNL or licensed operator.S/DCS/W/IND
Page 9Modes of supply:    1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
(g) Private Leased Circuit
Services (CPC 7522**)1) Unbound
2) Unbound3) Licensed voice telephone service operators
will be permitted to provide leased circuits
to their customers, for their own use within
their licensed service area.  Resale of suchleased circuits will not be permitted.
4) Unbound except as indicated in the
horizontal commitments1) Unbound
2) Unbound3) Unbound
4) Unbound except as indicated in the
horizontal commitments
Data and message transmissionservices, the following:
(h) Electronic mail
(CPC 7523**)
(i) Voice mail
(CPC 7523**)
(j) On-line information and
data base retrieval (CPC
7523**)
(l) Enhanced / value added
facsimile services,including store andforward, store and retrieve
(CPC 7523**)
(n) On-line information
and/or data processing(CPC 843**)1) None
2) Unbound3) Only through incorporation with a foreign
equity ceiling of 51%
4) Unbound except as indicated in the horizontal
section.1) None
2) Unbound3) None
4) Unbound except as indicated as indicated in
the horizontal section.S/DCS/W/IND
Page 10Modes of supply:    1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
(o) Other
Cellular mobile telephone
services.1) Unbound
2) Unbound3) The service will be permitted to be provided
only after the operator gets a licence from the
Designated Authority who shall determine
the need, if any, for issuance of new licences.The terms and conditions of the licence willbe as laid down by the Designated Authorityor Government or the prevailing laws in thecountry1) Unbound
2) Unbound3) Unbound
Only digital (GSM) technology will be
permitted and this will only be terrestrial
based.
There will be two cellular service operators
in each service area.  The position will bereviewed after 10 years.  The right ofDoT/MTNL to enter into each service area is
reserved.
The private operator should be a company
registered in India in which total foreignequity must not exceed 25%.
The detailed terms and conditions for
providing the service will be as per licence
conditions.
4) Unbound except as indicated in the horizontal
commitments4) Unbound except as indicated in the
horizontal commitments
[S/DCS/W/IND
Page 11
Explanatory Paper on
Additional Commitments by India
Scope
The following are definitions and principles on the regulatory framework for the basic
telecommunications services.
Definitions
Users mean service consumers and service suppliers.
Essential facilities mean facilities of a public telecommunications transport network or service that
(a) are exclusively or predominantly provided by a single or limited number of suppliers;
and
(b) cannot feasibly be economically or technically substituted in order to provide a
service.
A major supplier is a supplier which has the ability to materially affect the terms of participation
(having regard to price and supply) in the relevant market for basic telecommunications services as a
result of :
(a) control over essential facilities; or
(b) use of its position in the market.
1. Competitive safeguards
Appropriate measures shall be maintained for the purpose of preventing service suppliers
from engaging in or continuing in anti-competitive practices of the following type:
(a) using information obtained from competitors with anti-competitive results; and
(b) not making available to other services suppliers on a timely basis technical
information about essential facilities and commercially relevant information which
are necessary for them to provide services.
2. Interconnection
2.1 This section applies to linking with suppliers providing public telecommunications transport
network or services in order to allow the users of one supplier to communicate with users of anothersupplier and to access services provided by another supplier, where specific commitments are
undertaken.
2.2 Interconnection to be ensured
Interconnection with a major supplier will be ensured at any specified feasible point in the
network as indicated in the licence.  Such interconnection is provided:S/DCS/W/IND
Page 12
(a) of a quality no less favourable than that provided for its own like services or for like
services of non-affiliated service suppliers or for its subsidiaries or other affiliates;
(b) upon request, at points in addition to the network termination points offered to the
majority of users as per licence conditions, subject to mutually agreed charges.
2.3 Public availability of the procedures for interconnection negotiations
The procedures applicable for interconnection to a major supplier will be made publicly
available.
2.4 Transparency of interconnection arrangements
It will be ensured that a major supplier will make publicly available either its interconnection
agreements, or a reference interconnection offer.
2.5 Interconnection: dispute settlement
A service supplier requesting interconnection with a major supplier will have recourse, either:(a) at any time or
(b) after a reasonable period of time which has been made publicly known
to a domestic regulatory authority to resolve disputes regarding appropriate terms, conditions
and rates for interconnection within reasonable period of time, to the extent that these have not been
established previously.
3. Universal service
India retains the right to define the kind of un iversal service obligation it wishes to maintain.
Such obligations are not regarded as anti-competitive per se , since they would be administered in a
transparent and non-discriminatory manner.
4. Public availability of licensing criteria
Where a licence is required, the following will be made publicly available:
(a) All the licensing criteria and(b) the terms and conditions of individual licences.
5. Regulatory Authority
The decisions of and the procedures used by the regulatory authority  shall be impartial with
respect to all market participants.
6. Allocation and use of scarce resources
Any procedures for the allocation and use of scarce resources, including frequencies, numbers
and rights of way, will be carried out in an objective and timely manner.S/DCS/W/IND
Page 13Modes of supply:    1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
D. Audiovisual Services
(a) Motion picture or video
tape distribution services
(CPC 96113)1) Unbound
2) Unbound*
3) (i) Only through representative offices
which will be allowed to function as
branches of companies incorporatedoutside India.
(ii) Import of titles restricted to 100 per
year
4) Unbound except as indicated in the horizontal
section.1) Unbound
2) Unbound*
3) Subject to the prescribed authority having
certified that the motion picture has:
(a) won an award in any of the international
film festivals notified by the Ministry ofInformation & Broadcasting, Government
of India; or
(b) participated in any of the official sections of
the notified international film festivals; or
(c) received good reviews in prestigious film
journals notified by the Ministry ofInformation & Broadcasting, Governmentof India
4) Unbound except as indicated in the
horizontal sectionS/DCS/W/IND
Page 14Modes of supply:    1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
3. CONSTRUCTION AND
RELATED
ENGINEERING
SERVICES
B. Construction work for
civil engineering
Roads & Bridges only:Construction of highways,
streets, railways, runways,bridges, tunnels, subways,waterways, harbours,
dams, pipelines,
communication lines,power lines andconstruction work ofconstructions for mining
and manufacturing not
elsewhere classified e.g.power plants, ironfoundries, blast furnacesand coke ovens. Itexcludes construction
work of warehouses and
industrial buildings,residential and non-residential buildings.(CPC Ex. 513)1) Unbound*
2) Unbound*
3) Only through incorporation with a foreign
equity ceiling of 51 per cent
4) Unbound except as indicated in the horizontal
section.1) Unbound*
2) Unbound*
3) None
4) Unbound except as indicated in the
horizontal section.S/DCS/W/IND
Page 15Modes of supply:    1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
7. FINANCIAL SERVICES
The commitments in financial services are made in accordance with the General Agreement on Trade in Services and the Annex on F inancial Services.  All the commitments
are subject to entry requirements, domestic laws, rules and regulations and the terms and conditions of the Reserve Bank of Ind ia, Securities and Exchange Board of India and
any other competent authority in India.
A. Insurance and
Insurance-related services
Non-life, limited toinsurance of freight Ex.5(a)(i)(B)1) Unbound except in the case of insurance of
freight, where there is no requirement thatgoods in transit to and from India should beinsured with Indian insurance companies
only.  Insurance is taken by the buyer or seller
in accordance with the terms of the contract.This position will be maintained.  Once undera contract the Indian importer or exporteragrees to assume the responsibility forinsurance such as in the case of f.o.b.
contracts for imports into India or c.i.f.
contracts for exports from India, insurancehas to be taken only with an Indian insurancecompany.1) Unbound
2) Unbound 2) Unbound
3) Unbound 3) Unbound
4) Unbound except as indicated in the horizontal
section4) Unbound except as indicated in the
horizontal section
Reinsurance andretrocession 5(a)(ii)1),2) Reinsurance can be taken with foreign
reinsurers to the extent of the residualuncovered risk after obligatory or statutoryplacements domestically with Indian
insurance companies.1) Unbound
2) Unbound
3) Unbound 3) Unbound
4) Unbound except as indicated in the horizontal
section4) Unbound except as indicated in the
horizontal sectionS/DCS/W/IND
Page 16Modes of supply:    1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
Insurance intermediation,
limited to reinsurance
Ex. 5(a)(iii)1),2) Reinsurance of domestic risks can be placed
with foreign reinsurers through overseas
brokers, to the extent mentioned under
reinsurance and retrocession1) Unbound
2) Unbound
3) (i) Overseas brokers are allowed to have
resident representatives and representativeoffices who can procure reinsurance businessfrom Indian insurance companies to the extent
mentioned above.  They can also place
reinsurance business from abroad with Indianinsurance companies.
(ii) Except for the business indicated
above, the resident representatives andrepresentative offices cannot undertake anyother activity in India.
(iii) All expenses of the resident
representatives and representative offices haveto be met by remittances from abroad and noincome can be received in India from Indianresidents.3) Unbound
4) Unbound except as indicated in the horizontal
section4) Unbound except as indicated in the
horizontal sectionS/DCS/W/IND
Page 17Modes of supply:    1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
B. Banking and other
financial services
(excluding insurance)
1.(i) Acceptance of deposits
and other repayable
funds from the public
5(a)(v)
(ii) Lending of all types,
including consumer
credit, mortgage credit
and financing ofcommercial transactionsbut excluding factoring
Ex. 5(a)(vi)
(iii) All payment and money
transmission servicesincluding credit, chargeand debit cards,travellers cheques andbankers' drafts
5(a)(viii)
(iv) Guarantees and
commitments
5(a)(ix)1) Unbound
2) Unbound
3) (i) Only through branch operations of a
foreign bank licensed and supervised as
a bank in its home country.
(ii) Grant of licence as permissible under
existing laws.
(iii) A limit of twelve licences per year both
for new entrants and existing banks.
(iv) Banks are allowed to install ATMs at
branches and at other places identified bythem.  Installation of ATM at a placeother than in licensed branches is treatedas a new place of business and requires alicence.  Licences issued for ATMs
installed by foreign banks will not be
included in the ceiling of twelve licencesreferred to in item (iii) above.
(v) Investments in other financial services
companies by branches of foreign banks
licensed to do banking business in Indiaindividually not to exceed 10 per cent ofowned funds or 30 per cent of theinvested company's capital whichever is
lower.1) Unbound
2) Unbound
3) (i) Foreign banks are required to
constitute Local Advisory Boards
consisting inter alia  of professionals
and persons having expertise in areassuch as small-scale industry andexports.  The Chairman and membersof the Local Advisory Board must be
resident Indian nationals except for the
Chief Executive Officer who may be aforeign national.  The appointment ofChairman and members of the Boardrequires Reserve Bank of Indiaapproval.
(ii) Public sector enterprises can invest
surplus funds in term deposits onlywith scheduled commercial banksincorporated in India.S/DCS/W/IND
Page 18Modes of supply:    1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
(v) Trading for own account
of:
(a) money market
instruments
(b) foreign exchange
(c) transferable securities
Ex. 5(a)(x)(A)(B)(E)(vi) Licences for new foreign banks may be
denied when the maximum share of
assets in India both on and off balance
sheet of foreign banks to total assets bothon and off balance sheet of the bankingsystem exceeds 15 per cent.
(vi) Portfolio management,
custodial and trust
services
Ex. 5(a)(xiii)
(vii) Clearing services for
other banks for
cheques, drafts and
other instruments
Ex. 5(a)(xiv)(vii) Foreign banks are subject to
non-discriminatory resource allocation
requirements.
4) Unbound except as indicated in the horizontal
section4) Unbound except as indicated in the
horizontal section
2. Participation in issues
of all kinds of
securities, including
underwriting andplacement as agent(whether publicly orprivately) andprovision of services
related to such issues
5(a)(xi)1) Unbound
2) Unbound
3) (i) Allowed for foreign bank branches
licensed to do banking business in India.
(ii) Allowed for foreign financial services
companies (including banks) throughincorporation with foreign equity notexceeding 51 per cent.
4) Unbound except as indicated in the horizontal
section1) Unbound
2) Unbound
3) Unbound except for entities established in
accordance with the limitations specified in
the market access column.
4) Unbound except as indicated in the
horizontal sectionS/DCS/W/IND
Page 19Modes of supply:    1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
3. Stock broking
Ex. 5(a)(x)(E)1) Unbound
2) Unbound
3) Through establishment of locally incorporated
joint venture company with foreign equity not
exceeding 49 per cent. The foreign equity
participation will be limited to recognizedforeign stock broking companies
4) Unbound except as indicated in the horizontal
section1) Unbound
2) Unbound
3) Unbound except for entities established in
accordance with the limitations specified in
the market access column
4) Unbound except as indicated in the
horizontal section
4. Financial consultancy
services, i.e. financial
advisory services providedby financial advisers, etc.to customers on financialmatters, investment andportfolio research and
advice, advice on
acquisitions and oncorporate restructuring andstrategy
Ex. 5(a)(xvi)1) Unbound
2) Unbound
3) (i) Allowed for Foreign bank branches
licensed to do banking business in India.
(ii) Allowed for foreign financial services
companies (including banks) throughincorporation with foreign equity not
exceeding 51 per cent.
4) Unbound except as indicated in the horizontal
section1) Unbound
2) Unbound
3) Unbound except for entities established in
accordance with the limitations specified in
the market access column.
4) Unbound except as indicated in the
horizontal section
5. Factoring
Ex. 5(a)(vi)1) Unbound
2) Unbound
3) Allowed for foreign financial services
companies (including banks) throughincorporation with foreign equity notexceeding 51 per cent.
4) Unbound except as indicated in the horizontal
section1) Unbound
2) Unbound
3) Unbound except for entities established in
accordance with the limitations specified inthe market access column.
4) Unbound except as indicated in the
horizontal sectionS/DCS/W/IND
Page 20Modes of supply:    1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
6. Financial leasing
5(a)(vii)1) Unbound
2) Unbound
3) Allowed for foreign financial services
companies (including banks) through
incorporation with foreign equity not
exceeding 51 per cent.
4) Unbound except as indicated in the horizontal
section1) Unbound
2) Unbound
3) Unbound except for entities established in
accordance with the limitations specified in
the market access column.
4) Unbound except as indicated in the
horizontal section
7. Venture capital 1) Unbound
2) Unbound
3) (i) Allowed for foreign financial services
companies (including banks) through
incorporation with foreign equity not
exceeding 51 per cent.
(ii) Funding has to be entirely out of equity.
4) Unbound except as indicated in the horizontal
section1) Unbound
2) Unbound
3) Unbound except for entities established in
accordance with the limitations specified in
the market access column.
4) Unbound except as indicated in the
horizontal section
8. HEALTH RELATED
AND SOCIALSERVICES
A. Hospital Services
(CPC 9311)1) Unbound*
2) Unbound
3) Only through incorporation with a foreign
equity ceiling of 51 per cent
4) Unbound except as indicated in the horizontal
section1) Unbound*
2) Unbound
3) None
4) Unbound except as indicated in the
horizontal sectionS/DCS/W/IND
Page 21Modes of supply:    1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
9. TOURISM AND
TRAVEL RELATED
SERVICES
A. Hotels and other lodging
services (CPC Ex. 641)1) Unbound*
2) Unbound
3) Only through incorporation with a foreign
equity ceiling of 51 per cent
4) Unbound except as indicated in the horizontal
section.1) Unbound*
2) Unbound
3) None
4) Unbound except as indicated in the
horizontal section
B. Travel Agency and Tour
Operator Services
(CPC 747)1) Unbound
2) Unbound
3) Only through incorporation with a foreign
equity ceiling of 51 per cent
4) Unbound except as indicated in the horizontal
section1) Unbound
2) Unbound
3) None
4) Unbound except as indicated in the
horizontal sectionS/DCS/W/IND
Page 22 INDIA – FINAL LIST OF ARTICLE II (MFN) EXEMPTIONS
Sector or Sub-sector Description of measure
indicating its inconsistency
with Article IICountries to which the
measure appliesIntended duration Conditi ons creating the need
for the exemption
2.C Telecommunication services
– International serviceMeasures including the
application of different
accounting rates for different
operators / countries covered byInternationalTelecommunication ServicesAgreements between VideshSanchar Nigam Limited and
various foreign operators.Countries covered by
International
Telecommunication Services
Agreements between VideshSanchar Nigam Limited andforeign operators.Indefinite On account of bilateral
agreements between Videsh
Sanchar Nigam Limited and
various foreign operatorsdealing with various aspects ofcooperation.
2.C Telecommunication services
– International serviceMeasures including the
application of different
accounting rates for differentneighbouring countries coveredby TelecommunicationAgreements entered into by theGovernment of India with
governments of neighbouring
countries.Neighbouring countries
(Pakistan, Bangladesh, Nepal
and Bhutan)Indefinite On account of bilateral
agreements with governments of
neighbouring countries.
AUDIOVISUAL SERVICES Measures which define norms
for co-production of motionpictures and televisionprogrammes with foreign
countries and grant national
treatment to motion pictures andtelevision programmes co-produced with foreign countrieswhich maintain a co-productionagreement with IndiaAll countries indefinite The agreements aim at the
promotion of cultural exchange.S/DCS/W/IND
Page 23Sector or Sub-sector Description of measure
indicating its inconsistency
with Article IICountries to which the
measure appliesIntended duration Conditi ons creating the need
for the exemption
SHIPPING
a) Cargo sharing between
bilateral partners
b) Cargo ReservationsEquality in freight liftings
originating in the ports ofpartners to the agreement andequality in freight earnings
Cargo reservation under the UN
Code of Conduct for Liner
Conferences, Sharing of cargobetween the national lines ofcontracting states and third –country lines in the ratio of40:40:20 as provided in the
Liner Code.Bulgaria, Pakistan and the
United Arab Republic
All CountriesIndefinite
IndefiniteIn the context of overall trade
relations.
To fulfil obligations under the
convention.
RECREATIONAL SERVICES Waiver on the prohibition of
sale of lottery tickets in India.Bhutan Indefinite It is part of a comprehensive
bilateral agreement between
India and Bhutan.
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