RESTRICTED
WORLD TRADE G/TRIMS/N/1/IND/1/Add.1
16January 1996
ORGANIZATION(96-0150)
Original: English Committee onTrade-Related Investment Measures
NOTIFICATION UNDER ARTICLE 5.1OFTHE AGREEMENT ON
TRADE-RELATED INVESTMENT MEASURES
India
Addendum
Thefollowing communication, dated 22December 1995, hasbeenreceived fromthePermanent
Mission ofIndia.1
_______________
Withreference tomyletter of31March 1995andassurance given totheCommittee regarding
notification asperArticle 5.1oftheAgreement onTrade-Related Investment Measures inspecified
format, Ihavethepleasure inenclosing therelevant further information fortheCommittee.
AsfarasmissingrequirementsinrespectofPenicillinandrefampicinareconcerned,information
hasyettobereceived andwould besentassoonasitisreceived.
1Thereplies inthisnotification follow theorder oftheagreed format fornotifications under Article 5.1contained in
document G/TRIMS/1.G/TRIMS/N/1/IND/1/Add.1
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NOTIFICATION
Thefollowing notification iscirculated inaccordance withArticle 5.1oftheAgreement on
TRIMS.
1. Member totheAgreement notifying: INDIA
2. Agency responsible: Reserve Bank ofIndia andGovernment ofIndia.
3. Category: 2(C)ofAnnex totheAgreement.
4. Applied under discretionary authority ormandatory legislation: Annexure.
Discretionary authority,
Measure (aspercondition ofapproval)
Enterprise subject tothemeasure -companies manufacturing anyoftheproducts
(22)product list.
5. Whether theTRIM isgeneral innature, thecriteria fordetermination:
Itisspecific criteria.
6. Ifmandatory legislation, whether thelegislation requires themeasure tobeapplied to
newenterprises ornewinvestments ofexisting enterprises:
Although there isnomandatory legislation, itapplies tonewenterprises andnew
investment ofexisting enterprises notified in4above.
7. Nature ofadvantage: TheIndian company ispermitted toremit dividend tothe
foreign investor oncompliance withthecondition.
8. Scope oftheproduct specific TRIM: (Language asperorder putinapproval.)
9. Dateofimplementation ofTRIM: Thismeasure isinforce since July1991.
10. Provision forphasing down and/of elimination: No.
11. Nature ofimplementing agency andprocedure governing application oftheTRIM:
RBI-procedures forapproving theinvestment andremittance under Automatic
Route.
Procedure forapproving investment inother cases andremittance ofdividend.
12. General Information ontheProgramme inQuestion: Government notification
indicating thecondition canbegiven.G/TRIMS/N /1/IND/1/Add.1
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ANNEXURE I
Theforeign investment proposals areapproved bytheReserve Bank ofIndia under automatic
approval scheme upto51%equity participation inIndian companies engaged inAnnexure III.The
approvalsasabovearealsograntedtotheIndiantradingcompaniesprimarilyengagedinexportactivities.
Theproposals which arenotcovered under thedelegated authority totheReserve Bank ofIndia are
required tobecleared byFIPB/SIA.
Inrespect offoreign investment in22consumer goods industries asnotified bytheGovernment
ofIndia, acondition regarding dividend balancing isstipulated. Thetextofthecondition isasfollows:
(i) Condition formanufacturing companies inconsumer sector:
"The outflow offoreign exchange onaccount ofdividend should becovered byyourexport
earnings during aperiod ofseven years from thedateofcommencement ofcommercial production.
Theamount ofdividend should becovered byexport earnings ofitems included inAnnexure III,either
manufactured byyouorprocured from thirdparties inyears prior toremittance ofdividend inthe
yearofdividend."
(ii) Condition forsetting upanewtrading company primarily engaged inexport activities:
"(a) Oneshould register withtheMinistry ofCommerce (Office oftheDGFT) asregistered
exporter/importer.
(b) Therepatriation ofdividend willbepermissible onlyaftertheIndian company has
registered withtheMinistry ofCommerce (Office oftheDGFT) asanExport/Trading/Star Trading
Hose under theprevailing Import andExport Policy."G/TRIMS/N/1/IND/1/Add.1
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ANNEXURE II
1. Manufacture offoodandfoodproducts.
2. Manufacture ofdairy products.
3. Grain millproducts.
4. Manufacture ofbakery products.
5. Manufacture andrefining ofsugar (vacuum pansugar factories).
6. Production ofcommon salt.
7. Manufacture ofhydrogenated oil9Vanaspati.
8. Teaprocessing.
9. Coffee.
10. Manufacture ofbeverages, tobacco andtobacco-products.
11. Distilling, rectifying andblending ofspirits, wines industries, maltliquors andmalt,production
ofcountry liquor andtoddy.
12. Softdrinks andcarbonated water industry.
13. Manufacture ofcigars, cigarettes, cheroot andcigarette tobacco.
14. Manufacture ofwood andwood products, furniture andfixtures.
15. Manufacture ofleather andleather andfurproducts.
16. Tanning, curing, finishing, embossing andjapanning ofleather.
17. Manufacture offootwear (excluding repair) except vulcanized ormoulded rubber orplastic
footwear.
18. Manufacture offootwear made primarily ofvulcanized ormoulded products.
19. Prophylactics (rubber contraceptive).
20. Motor cars.
21. Entertainment Electronics (VCRs, Colour TVs, CDPlayers, Tape Recorders).
22. White Goods (Domestic Refrigerators, Domestic Dish-washing machines, Programmable
Domestic Washing Machines, Microwave Ovens, Air-conditioners).G/TRIMS/N /1/IND/1/Add.1
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ANNEXURE III
LIST OFINDUSTRIES FOR AUTOMATIC APPROVAL
OFFOREIGN TECHNOLOGY AGREEMENTS
AND FOR 51%FOREIGN EQUITY APPROVALS
1. Metallurgical Industries
(i) Ferro alloys.
(ii) Castings andforgings.
(iii) Non-ferrous metals andtheiralloys.
(iv) Sponge ironandpelletisation.
(v) Large diameter steelwelded pipes ofover300mmdiameter andstainless steelpipes.
(vi) Pigiron.
2. Boilers andSteam Generating Plants
3. Prime Movers (other thanelectrical generators)
(i) Industrial turbines.
(ii) Internal combustion engines.
(iii) Alternate energy systems likesolar, wind etc.andequipment therefor.
(iv) Gas/hydro/steam turbines upto60MW.
4. Electrical Equipment
(i) Equipment fortransmission anddistribution ofelectricity including power and
distribution transformers, power relays, HT-switch gearsynchronous condensers.
(ii) Electrical motors.
(iii) Electrical furnaces, industrial furnaces andinduction heating equipment.
(iv) X-ray equipment.
(v) Electronic equipment, components including subscribers 'endtelecommunication
equipments.
(vi) Component wires formanufacture oflead-in-wires.
(vii) Hydro/steam/gas generators/generating setsupto60MW.
(viii) Generating setsandmining setsbased oninternal combustion engines.
(ix) Jelly-filled telecommunications cables.
(x) Optic fibre.
(xi) Energy efficient lamps and
(xii) Midget carbon electrodes.
5. Transportation
(i) Mechanised sailing vessels upto10,000 DWT including fishtrawlers.
(ii) Shipancillaries.
(iii) (a) Commercialvehicles,publictransportvehiclesincludingautomotivecommercial
three wheeler jeeptypevehicles, industrial locomotives.
(b) Automative twoandthree wheelers.
(c) Automative components/spares andancillaries.
(iv) Shock absorbers forrailway equipment, and
(v) Brake systems forrailway stock andlocomotives.G/TRIMS/N/1/IND/1/Add.1
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6. Industrial Machinery
(i) Industrial machinery andequipment.
7. (i) Machine tools andindustrial robots andtheircontrols andaccessories.
(ii) Jigs,tools anddiesofspecialized types andcross landtooling, and
(iii) Engineering production aidssuchascutting andforming tools, patterns, anddiesand
tools.
8. Agricultural Machinery
(i) Tractors.
(ii) Self-propelled harvester combines.
(iii) RiceTransplanters.
9. Earth Moving Machinery
(i) Earth moving machinery andconstruction machinery andcomponents thereof.
10. Scientific andElectromedical Instruments andLaboratory Equipment
11. Nitrogenous andPhosphatic Fertilizers falling under
(i) Inorganic fertilizers under "18-fertilizers" inthefirstschedule toIDRAct,1951.
12. Chemicals (other thanfertilizers)
(i) Heavy organic chemicals including petrochemicals.
(ii) Heavy inorganic chemicals.
(iii) Organic finechemicals.
(iv) Synthetic resins andplastics.
(v) Man-made fibres.
(vi) Synthetic rubber.
(vii) Industrial explosives.
(viii) Technical grade insecticides, fungicides, weedicides, andthelike.
(ix) Synthetic detergents.
(x) Miscellaneous chemicals (forindustrial useonly):
(a) Catalyst andcatalyst supports.
(b) Photographic chemicals.
(c) Rubber chemicals.
(d) Polyols.
(e) Isocyanates, urethanes, etc.
(f) Speciality chemicals forenhanced oilrecovery.
(g) Heating fluids.
(h) Coaltardistillation andproducts therefrom.
(i) Tonnage plants forthemanufacture ofindustrial gases.
(j) High altitude breathing oxygen/medical oxygen.
(k) Nitrous oxide.
(l) Refrigerant gases likeliquid nitrogen, carbon dioxide etc.inlarge volumes.
(m) Argon andother raregases.
(n) Alkali/acid resisting cement compound.
(o) Leather chemicals andauxiliaries.G/TRIMS/N /1/IND/1/Add.1
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13. Drugs andPharmaceuticals
According toDrug Policy.
14. (i) Paper andpulpincluding paper products.
(ii) Industrial laminates.
15. (i) Automobile tyres andtubes.
(ii) Rubberised heavy dutyindustrial beltings ofalltypes.
(iii) Rubberised conveyer beltings.
(iv) Rubber reinforced andlined firefighting hosepipes.
(v) High pressure braided hoses.
(vi) Engineering andindustrial plastic products.
16. Plate Glass
(i) Glass shells fortelevision tubes.
(ii) Float glass andplateglass.
(iii) H.T. insulators.
(iv) Glass fibres ofalltypes.
17. Ceramics
(i) Ceramics forindustrial uses.
18. Cement Products
(i) Portland cement.
(ii) Gypsum board, wallboards andthelike.
19. High Technology Reproduction andMultiplication Equipment
(i) Graphite electrodes andanodes.
(ii) Impervious graphite blocks andsheets.
20. Pre-tensioned High Pressure RCC Pipes
21. Rubber Machinery
22. Printing Machinery
(i) Web-fed highspeed off-set rotary printing machine having output of30,000 ormore
impressions perhour.
(ii) Photo composing/type setting machines ofsizesof18"x25"andabove.
(iii) Highspeed rotograture printing machines having output of30,000 ormoreimpressions
perhour.
23. Welding Electrodes other thanthose forwelding Mild Steel
24. Industrial Synthetic DiamondsG/TRIMS/N/1/IND/1/Add.1
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25. (i) Photosynthesis improvers.
(ii) Genetically modified freeliving symbiotics nitrogen fixer.
(iii) Pheromones.
(iv) Bio-insecticides.
26. Extraction andUpgrading ofMinor Oils
27. Prefabricated Building Material
28. Soya Products
(i) Soya texture proteins.
(ii) Soya protein isolates.
(iii) Soya protein concentrates.
(iv) Other specialised products ofsoyabean.
(v) Winterised anddeodorised refined soyabean oil.
29. (a) Certified highyielding seeds andsynthetic seed, and
(b) Certified highyielding plants developed through plant tissue culture.
30. Allfoodprocessing industries other thanmilkfood, malted foods, andflour, butexcluding
theitems reserved forsmall scale sector.
31. Allitems ofpackaging forfood processing industries excluding theitems reserved for
small-scale sector.
32. Hotel andTourism -related industry