INDIA
N/A
Pillar Public procurement of ICT goods and online services |
Sub-pillar Signatory of the World Trade Organization (WTO) Agreement on Government Procurement (GPA) with coverage of the most relevant services sectors (CPC 752, 754, 84)
Lack of participation in the WTO Agreement on Government Procurement (GPA)
India is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA). However, the country has been an observer of the agreement since 2010.
Coverage Horizontal
INDIA
Since April 2015, extended in April 2020, until April 2025
Pillar Tariffs and trade defence measures applied on Information and Communication Technology (ICT) goods |
Sub-pillar Antidumping, countervailing duties, and safeguard measures on ICT goods
Antidumping measure
In April 2015, the Indian Ministry of Finance issued the Customs Notification imposing this definitive anti-dumping duty on imports of electrical insulators (HS 8546) originating in China. Electrical insulators are used to hold conductors in position, separating them from one another and from surrounding structures. This measure was reviewed and extended in April 2020. The rate of duty is USD 638 or USD 1,383 per tonne, depending on the company. The duty is in force for a period of five years.
Coverage Product: Electrical insulators (HS 8546)
Country: China
Country: China
Sources
- https://web.archive.org/web/20220813092838/https://www.globaltradealert.org/intervention/18292/anti-dumping/india-extension-definitive-antidumping-duty-on-imports-of-electrical-insulators-from-china
- https://docs.wto.org/dol2fe/Pages/FE_Search/FE_S_S009-DP.aspx?language=E&CatalogueIdList=285529,284510,284508,284509,284511,284513,284446,284078,284070,284069&CurrentCatalogueIdIndex=9&FullTextHash=&H...
INDIA
Since April 2013, last amended in October 2020
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Maximum foreign equity share
Consolidated Foreign Direct Investment (FDI) Policy Circular of 2020
As stipulated in Section 5.2.7.2 of the 2020 Consolidated Foreign Direct Investment (FDI) Policy Circular, foreign direct investment in broadcasting content services, specifically related to the uploading and streaming of news and current affairs via digital media, is limited to 26% and is subject to government approval.
Coverage Digital media
INDIA
Since June 2017, as amended in May 2020
Pillar Public procurement of ICT goods and online services |
Sub-pillar Exclusion from public procurement
General Financial Rules, 2017
Under Article 161 of the General Financial Rules, as amended by the Department of Expenditure, Ministry of Finance OM F.12/17/2019-PPD in May 2020, if a Ministry or Department determines that domestically available goods may not meet the required quality or specifications, and there is a need to seek competitive bids from abroad, they may distribute copies of the tender notice to Indian embassies abroad and foreign embassies in India. The selection of relevant embassies is based on the likelihood of sourcing the required goods from the respective countries. However, a Global Tender Enquiry (GTE) is prohibited for tenders valued at or below 200 million rupees (approximately USD 24 million). In cases where a GTE is deemed necessary for tenders below this threshold due to special circumstances, a detailed justification must be provided, and prior approval for an exemption must be sought from the Competent Authority designated by the Department of Expenditure.
Coverage Horizontal
INDIA
Since April 2013, last amended in October 2020
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Maximum foreign equity share
Consolidated Foreign Direct Investment (FDI) Policy Circular of 2020
Since the implementation of the Consolidated FDI Policy Circular of 2016, last amended by the Consolidated FD) Policy Circular of 2020, India permits fully owned FDI in business-to-business (“marketplace-based”) electronic commerce, i.e. "providing an information technology platform by an e-commerce entity on a digital & electronic network to act as a facilitator between buyer and seller." However, India prohibits foreign investment in business-to-consumer (or “inventory-based”) electronic commerce, also defined as "e-commerce activity where the inventory of goods and services is owned by an e-commerce entity and is sold to the consumers directly".
When a marketplace e-commerce entity exercises ownership or control over the inventory, the business is categorised into the inventory-based model. Additionally, India implemented regulations that expressly prohibit subsidiaries of foreign-owned marketplace-based electronic commerce sites from selling products on their parent companies’ sites. The rules also prohibit exclusivity arrangements by which electronic commerce retailers can offer a product on an exclusive basis.
The only exceptions for FDI in inventory-based electronic commerce are for food-product retailing and single-brand retailers that meet certain conditions, including the operation of physical stores in India. According to Section 5.2.15.3 of the Consolidated FDI Policy Circular of 2020, retail trading through e-commerce can also be undertaken before opening physical stores, subject to the entity opening physical stores within two years from the start of online retail. Overall, it is reported that these narrow exceptions limit the ability of many electronic commerce service suppliers to serve the Indian market.
When a marketplace e-commerce entity exercises ownership or control over the inventory, the business is categorised into the inventory-based model. Additionally, India implemented regulations that expressly prohibit subsidiaries of foreign-owned marketplace-based electronic commerce sites from selling products on their parent companies’ sites. The rules also prohibit exclusivity arrangements by which electronic commerce retailers can offer a product on an exclusive basis.
The only exceptions for FDI in inventory-based electronic commerce are for food-product retailing and single-brand retailers that meet certain conditions, including the operation of physical stores in India. According to Section 5.2.15.3 of the Consolidated FDI Policy Circular of 2020, retail trading through e-commerce can also be undertaken before opening physical stores, subject to the entity opening physical stores within two years from the start of online retail. Overall, it is reported that these narrow exceptions limit the ability of many electronic commerce service suppliers to serve the Indian market.
Coverage E-commerce sector
Sources
- https://web.archive.org/web/20220927051701/https://dpiit.gov.in/sites/default/files/FDI_Circular_2016(1).pdf
- https://web.archive.org/web/20230131002741/https://dpiit.gov.in/sites/default/files/FDI-PolicyCircular-2020-29October2020_0.pdf
- https://web.archive.org/web/20230802214420/https://ustr.gov/sites/default/files/2022%20National%20Trade%20Estimate%20Report%20on%20Foreign%20Trade%20Barriers.pdf
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INDIA
Since June 2017, as amended in September 2020
Pillar Public procurement of ICT goods and online services |
Sub-pillar Exclusion from public procurement
Internal Trade (DPIIT) Order No. P-45021/2/2017-B.E.
According to Art. 3B of the Internal Trade (DPIIT) Order No. P-45021/2/2017-B.E, if the procurement authority has determined that sufficient local capacity and competition exist, only 'Class-I Local Suppliers' are eligible to participate, ensuring that all selected suppliers fall within this category. As stipulated in the Order, a 'Class-I Local Supplier' is defined as a supplier whose local content comprises at least 50%.
Coverage Horizontal
INDIA
Since March 2015
Since April 2015
Since April 2015
Pillar Public procurement of ICT goods and online services |
Sub-pillar Surrender of patents, source code or trade secrets to win public tenders/Restrictions on technology standards for public tenders
Policy on Adoption of Open Source Software for the Government of India
Framework for adoption of Open Source Software in eGovernance applications
Framework for adoption of Open Source Software in eGovernance applications
The Indian government adopted a formal preference for open-source software for e-government procurement opportunities related to its digital agenda. The Policy on Adoption of Open Source Software for the Government of India is reported to be one of the most far-reaching and restrictive preference schemes that has been implemented to date. The Policy calls for a change from using Closed Cloud Software (CSS), which is licensed under the exclusive right of the copyright holder. The Indian government wants all governmental organisations to move towards the use of open-source software, which it argues would ensure strategic control of eGovernance applications and reduce the cost of ownership of projects. The Framework for adoption of Open Source Software in eGovernance applications provides a set of procedures and recommendations for promoting, adopting and managing OSS in e-Governance systems. The framework provides guidance on the selection of software and the induction of the OSS software.
Coverage Horizontal
Sources
- https://web.archive.org/web/20231019050008/https://www.meity.gov.in/sites/upload_files/dit/files/policy_on_adoption_of_oss.pdf
- https://web.archive.org/web/20220119061933/http://cloudscorecard.bsa.org/2016/pdf/country_reports/2016_Country_Report_India.pdf
- https://web.archive.org/web/20241111170643/https://www.meity.gov.in/sites/upload_files/dit/files/Final_Framework%20for%20Adoption%20of%20OSS.pdf
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INDIA
Since November 2010
Pillar Public procurement of ICT goods and online services |
Sub-pillar Surrender of patents, source code or trade secrets to win public tenders/Restrictions on technology standards for public tenders
Policy on Open Standards for e-Governance
There is a requirement to make patents available on a royalty-free basis for those open standards identified as "Identified Standards" under the Policy on Open Standards for e-Governance. Per Clause 4.1.2: "The Patent claims necessary to implement the Identified Standard shall be made available on a Royalty-Free basis for the lifetime of the Standard". Open standards refer to the freedom to encode and decode data and network protocols.
Coverage Horizontal
Sources
- https://web.archive.org/web/20231206033612/https://egovstandards.gov.in/sites/default/files/2021-07/Policy%20on%20Open%20Standards%20for%20e-Governance.pdf
- https://web.archive.org/web/20230401100557/https://www.bsa.org/reports/2018-bsa-global-cloud-computing-scorecard
- https://web.archive.org/web/20211115020524/https://www.indiacode.nic.in/bitstream/123456789/1999/3/A2000-21.pdf
- https://web.archive.org/web/20220122205021/http://egovstandards.gov.in/sites/default/files/Policy%20on%20Open%20Standards%20for%20e-Governance.pdf
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INDIA
Since June 2017, as amended in September 2020
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Internal Trade (DPIIT) Order No. P-45021/2/2017-B.E.
Pursuant to Art. 13A of the Internal Trade (DPIIT) Order No. P-45021/2/2017-B.E, for goods, services, or works subject to substantial public procurement, where the Nodal Ministry has not determined the existence of sufficient local capacity and competition, the Ministry must establish an upper threshold value beyond which foreign companies are required to form joint ventures with Indian companies to participate in tenders. Procuring entities must incorporate this requirement into their tenders and include provisions exempting such joint ventures from the stipulated minimum local content requirements, with a framework for the gradual increase of these requirements over time.
Coverage Horizontal
INDIA
Since June 2017, last amended in May 2020
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
General Financial Rules, 2017
Under Rule 151 of the General Financial Rules, the Central Government may, through notification, mandate the procurement of specific goods or services from certain categories of bidders or grant preferential treatment to bidders to promote locally manufactured goods or locally provided services.
Coverage Horizontal
INDIA
ITA signatory?
I
II
Pillar Tariffs and trade defence measures applied on Information and Communication Technology (ICT) goods |
Sub-pillar Effective tariff rate on ICT goods (applied weighted average)
Effective tariff rate to ICT goods (applied weighted average)
5.85%
Coverage rate of zero-tariffs on ICT goods (%)
28.14%
Coverage: Digital goods
Sources
- http://wits.worldbank.org/WITS/
- https://www.wto.org/english/news_e/brief_ita_e.htm#:~:text=ITA%20participants%3A%20Australia%3B%20Bahrain%3B,%3B%20Jordan%3B%20Korea%2C%20Rep.
- https://www.wto.org/english/res_e/booksp_e/ita20years_2017_full_e.pdf
- https://web.archive.org/web/20220120054410/https://trade.ec.europa.eu/doclib/docs/2016/april/tradoc_154430.pdf
- https://www.wto.org/english/tratop_e/inftec_e/itscheds_e.htm
INDIA
N/A
Pillar Tariffs and trade defence measures applied on Information and Communication Technology (ICT) goods |
Sub-pillar Participation in the World Trade Organization (WTO) Information Technology Agreement (ITA) and 2015 expansion (ITA II)
Lack of participation in Information Technology Agreement Expansion Agreement (ITA II)
India is a signatory of the World Trade Organization (WTO) Information Technology Agreement (ITA) of 1996, but it is not a signatory of its 2015 expansion (ITA II).
Coverage ICT goods
Sources
- https://www.wto.org/english/news_e/brief_ita_e.htm#:~:text=ITA%20participants%3A%20Australia%3B%20Bahrain%3B,%3B%20Jordan%3B%20Korea%2C%20Rep.
- https://www.wto.org/english/res_e/booksp_e/ita20years_2017_full_e.pdf
- https://web.archive.org/web/20220120054410/https://trade.ec.europa.eu/doclib/docs/2016/april/tradoc_154430.pdf
- https://www.wto.org/english/tratop_e/inftec_e/itscheds_e.htm
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INDIA
Since July 2020, until January 2025
Pillar Tariffs and trade defence measures applied on Information and Communication Technology (ICT) goods |
Sub-pillar Antidumping, countervailing duties, and safeguard measures on ICT goods
Antidumping measure
In July 2020, the Indian authorities imposed a definitive duty on imports of digital offset printing plates (an input good to manufacture printers) from China, Japan, the Republic of Korea, Chinese Taipei and Vietnam. The rate of duty on imports from China is between USD 0.55 and USD 0.77 per square metre, depending on the company. The rate of duty on imports from the Republic of Korea is USD 0.15 or USD 0.37 per square metre, depending on the company. The rate of duty on imports from Japan is USD 0.13 or USD 0.27 per square metre, depending on the company. The rate of duty on imports from Vietnam is USD 0.60 per square metre. The rate of duty on imports from Chinese Taipei is USD 0.41 per square metre. The duty is in force for a period of five years, starting on 30 January 2020.
Coverage Product: Digital offset printing plates (HS 370130, 3704.0090, 3705.1000, 7606.1190, 7606.9190, 7606.9290, 8442.50)
Country: China, Korea, Japan, Chinese Taipei, Vietnam
Country: China, Korea, Japan, Chinese Taipei, Vietnam
Sources
- https://docs.wto.org/dol2fe/Pages/FE_Search/FE_S_S009-DP.aspx?language=E&CatalogueIdList=285529,284510,284508,284509,284511,284513,284446,284078,284070,284069&CurrentCatalogueIdIndex=9&FullTextHash=&H...
- https://web.archive.org/web/20241127194354/https://www.globaltradealert.org/intervention/71866/anti-dumping/india-definitive-antidumping-duty-on-imports-of-digital-offset-printing-plates-from-china-ja...
HONG KONG
N/A
Pillar Online sales and transactions |
Sub-pillar Ratification of the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts
Lack of signature of the UN Convention on the Use of Electronic Communications in International Contracts
Hong Kong has not signed the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.
Coverage Horizontal