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August 13, 2014
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Labour law protection in SEZs remains fully applicable, preventing relaxation and ensuring worker rights under the SEZ framework.
The SEZ framework affirms that labour laws remain fully applicable within Special Economic Zones and the Central Government cannot relax welfare-related labour laws; the government periodically reviews SEZ policy based on stakeholder inputs and has amended SEZ Rules to reduce land requirements and streamline the policy framework.
August 13, 2014
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Promotion of domestic electronics manufacturing through procurement preference and incentives, reinforced by fiscal duty changes.
The Government has implemented measures to promote domestic electronics and hardware manufacturing through procurement preference, M-SIPS, Electronic Manufacturing Clusters, Electronics Hardware Technology Parks, R&D promotion, and approvals for semiconductor fabrication facilities. The Union Budget announced customs and excise duty changes to support manufacture of electronics and solar inputs. The Department of Electronics and Information Technology has indicated there is no plan for a new hardware policy, so existing schemes and fiscal measures remain the operative framework.
August 13, 2014
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Export infrastructure development drives regulatory support and funding to improve cargo movement and logistics connectivity nationwide.
Government policy prioritizes enhancement of export-related infrastructure through coordinated regulatory and funding mechanisms to reduce bottlenecks in sea, air, rail and road cargo movement. The Department of Commerce administers the ASIDE Scheme and an Export Development Fund to co-fund state and central infrastructure projects and regional promotion, while a Single Window Clearance mechanism and an Inter-Ministerial Committee streamline approvals for Inland Container Depots and Container Freight Stations.
August 13, 2014
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Bilateral investment protection agreement negotiations paused while comprehensive economic partnership talks advance on trade and services.
Negotiations on a Bilateral Investment Promotion and Protection Agreement with Canada are inconclusive and currently in abeyance pending review of the model BIPA text. Separately, India and Canada launched a Comprehensive Economic Partnership Agreement negotiation, with eight rounds conducted and text chapters covering Trade in Goods, Trade in Services, Rules of Origin, origin procedures, trade remedies, customs and trade facilitation, and institutional provisions.
August 13, 2014
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Trade facilitation streamlines export-import documentation through electronic customs, banking certification, continuous port clearance, and online applications.
Export-import operations require key documents: Shipping Bills and Bills of Entry for Customs, Bills of Lading from carriers, and letters of credit or bank documents for foreign exchange. To facilitate trade, the Government has adopted electronic processing including Electronic Data Interchange for Customs, continuous customs clearance at major ports, an Electronic Bank Realization Certification system for secure bank-to-DGFT data flow, and online filing and payment for Foreign Trade Policy benefits.
August 13, 2014
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Institutionalisation of bullion trade: regulated gold import channels and export-linked allocation expand under government policy.
Institutionalisation of bullion trade regulates gold imports by permitting consignment imports by nominated agencies and banks for exporters, banning coin and medallion imports, raising customs duty on gold, and implementing export-linked mechanisms including the 80:20 Scheme, Advance Authorization/Duty Free Import Authorization and special import permissions for Star/Premier Trading Houses, SEZ and EoU units to import gold exclusively for export production.
August 11, 2014
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Trade facilitation and tax administration reform to reduce transaction costs and strengthen anti-evasion measures, enabling improved indirect tax revenues.
Revenue targets for indirect taxes are challenging but achievable through measures to revive manufacturing and infrastructure; tax administration will focus on trade facilitation to reduce transactional costs while strengthening anti evasion enforcement, expanding 24x7 customs clearance, implementing IT and Single Window initiatives, modernising border controls, reducing litigation via dispute resolution reforms, and instituting invoice level CENVAT credit verification to plug revenue leakages.
August 8, 2014
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Price stability measures curb food inflation through import duty cuts, stock limits, export controls and targeted rice allocations.
Government announced supply- and market-management measures to ensure price stability and check food inflation, including zero import duties for key staples, imposition of stock holding limits, suspension of futures trading in selected commodities, maintenance of the Central Issue Price for rice and wheat under welfare schemes, open market sales and temporary export bans. Specific actions also include delisting fruits and vegetables from state marketing laws in some jurisdictions, fixing minimum export prices for certain vegetables, inclusion of onions and potatoes under stock limits via the Essential Commodities Act to enable de hoarding, and an additional targeted rice allocation for vulnerable households pending NFSA implementation.
August 8, 2014
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Exemption from basic customs and excise duty on solar components expanded to cover specified inputs, aiding solar manufacturing.
Exemption from basic customs duty and CVD applies to solar panels and longstanding relief covered goods used in their manufacture. Excise duty exemptions are provided for solar cells/modules, machinery for initial solar projects, EVA sheets and backsheets and specified inputs, solar tempered glass for PV cells and modules, and flat copper wire for PV ribbon manufacture. Basic customs duty exemption has been extended to specified inputs for EVA sheets and backsheets and to flat copper wire for PV ribbons to maximise utilisation of solar power.
August 8, 2014
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Central assistance under MIIUS conditions grant allocation and staged disbursement for state implemented industrial infrastructure projects.
MIIUS provides conditional central assistance for upgrading industrial infrastructure, requiring State Implementation Agencies to implement projects with mandatory counter-contribution and limiting central funding for physical infrastructure to a defined share and ceiling. Grants are released in three installments subject to upfront stakeholder contributions, with project sanctions limited per State. The Department has accorded in principle approvals and allocated grants (not yet released) to specified projects, while other proposals remain unapproved or under evaluation by the Project Management Agency for reasons including post cut off receipt or revisions by SIAs.
August 8, 2014
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Customs duty protection for poppy seeds maintains import barriers and a minimum tariff value to shield domestic cultivators.
The Central Government licenses opium cultivation in specified states and, acknowledging domestic shortfall in poppy seed supply, protects domestic cultivators by imposing a customs duty on imported poppy seeds and by prescribing a minimum tariff value; annexed trade statistics show countrywise import and export quantities and provisional recent-year figures.
August 8, 2014
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Import tender for onions: NAFED may procure imports to augment supplies, subject to state requirements and rate concurrence.
NAFED has issued a tender to import onions to augment domestic supplies, with actual imports contingent on requirements from State and Union Territory governments and their concurrence with tendered rates. Provisional historical import data are provided. The government treats trade measures for agricultural products as dynamic instruments, guided by buffer stock considerations, food security, international demand and supply, quality standards, price competitiveness, and the need to balance growers' remuneration with consumer affordability, and it reviews availability periodically to decide interventions.
August 8, 2014
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Import controls on metallic scrap require safety certification and restrict unshredded consignments to designated ports.
Importation of metallic waste and scrap is permitted provided consignments do not contain hazardous, toxic, radioactive or explosive materials and are accompanied by a valid pre shipment inspection certificate (PSIC) certifying freedom from explosive and radioactive contamination. Imports from Hodaideh and Bandar Abbas must be shredded; shredded scrap may enter via all ports while unshredded, compressed and loose scrap is allowed only through 26 designated ports. Authorities will install portal monitors and radiological scanners and AERB is conducting stakeholder sensitisation. Annexes list eligible scrap categories and provide item and country wise import data.
August 8, 2014
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Revenue targets for indirect taxes drive a conference to plan enforcement, audit, IT and compliance measures.
Assessment of departmental performance and formulation of measures to meet Revenue Targets for Indirect Taxes is the primary focus, with senior Customs, Central Excise and Service Tax leadership tasked to prepare an action plan emphasizing revenue analysis, scrutiny of returns, audit, enforcement, dispute resolution and recovery of tax arrears. The conference also addresses IT-enabled revenue measures, cadre restructuring, budgeting, training gaps, trade facilitation, vigilance management, Tax Administration Reforms Commission recommendations, and GST and GSTN implementation issues.
August 7, 2014
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Capital account management: cautious liberalisation to favour stable long term foreign investment while limiting volatile flows.
The Foreign Exchange Management Act framework facilitates external trade and payments while managing the capital account cautiously to prevent destabilising short term flows. Policy preferences favour long term, stable investment such as foreign direct investment, with sectoral caps and automatic or approval routes; portfolio investment is constrained by single investor and aggregate limits and valuation/exit rules for unlisted equity have been liberalised to permit internationally accepted arm's length methodologies. Debt flows are steered toward long dated instruments through limits and maturity requirements; overseas investment and NRI/PIO access are permitted subject to specified asset exclusions, funding channels and compliance obligations.
August 7, 2014
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Inflation containment measures deploy trade, stock limits, market reforms and a Price Stabilization Fund to curb price volatility.
State Governments compile Per Capita Income and GDP estimates. The central government advances measures to raise per capita income-skill development, a technology driven second green revolution, industrial corridors, Smart Cities, sectoral incentives and duty rationalisation. To contain inflation, the Government adopts trade and regulatory interventions-delisting certain produce from state marketing laws, duty reductions, export restrictions, stock limits, suspension of futures trading, inclusion under the Essential Commodities Act-and Budget proposals including a Price Stabilization Fund, national market reforms, farmers' markets and restructuring of the public distribution system, complemented by monetary measures to moderate demand.
August 6, 2014
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Export facilitation: duty-free inputs and refunds to support manufacturing capacity and promote market and product diversification.
The Foreign Trade Policy provides an export promotion framework supporting export growth via market and product diversification, permits duty free import of raw materials and capital goods subject to export obligations, and provides refunds of duties paid on exported goods so that domestic taxes are not exported, together with trade facilitation measures to improve the trading environment.
August 6, 2014
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Special Economic Zones reporting growth in exports and employment while receiving significant tax exemptions under SEZ framework.
Special Economic Zones data records 564 approved proposals, 387 notified SEZs and 192 exporting SEZs as of 30 June 2014, and presents revenue foregone under the SEZ scheme for three financial years. State-wise counts of exporting SEZs and tables of SEZ contributions to exports and cumulative employment over the same three-year period are provided to reflect geographic distribution and economic impact.
August 6, 2014
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Section 332(g) trade investigation into discriminatory foreign policies initiated; linked to Special 301 intellectual property review and priority designations.
A statutory trade investigation was initiated to examine Indian policies alleged to discriminate against U.S. trade and investment under section 332(g) of the Tariff Act of 1930 following a joint congressional request; the inquiry is a fact finding mechanism to assess policy effects on the U.S. economy. The note also identifies the Special 301 IPR review process that designates countries as priority foreign country or priority watch list country under the U.S. annual intellectual property review.
August 6, 2014
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Basic Customs Duty increase on twisted silk yarn and silk fabrics was sought to protect industry but request was denied.
Request to increase Basic Customs Duty on twisted silk yarn and silk fabrics to protect the domestic textile industry was made by the Minister of Textiles, but the Department of Revenue did not accede to the request; this was communicated in a written reply in the Rajya Sabha.

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