FDI changes fully compliant with India’s WTO commitments: Som Parkash, MoS, Commerce and Industry

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New Delhi: Changes made in the FDI norms last year, which made it mandatory for firms of a country sharing land border with India to seek government nod for all investments, are fully compliant with New Delhi’s commitments under WTO, Parliament was informed on February 12.

In a written reply to the Rajya Sabha, Union Minister Som Parkash said in the meetings of the Council for Trade in Services under WTO held in October and November last year, China had raised concern on the changes made in India’s Foreign Direct Investment (FDI) policy through Press Note 3 of 2020.

The changes have mandated that an entity of a country, which shares a land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country, can invest only under the government approval route.

“In response, India asserted that FDI from all members of World Trade Organization (WTO), including China, continues to be permitted and the measures are fully compliant with its commitments under WTO,” the Minister of State for Commerce and Industry said.

In a separate reply on exports of COVID-19 vaccines, Commerce and Industry Minister Piyush Goyal said vaccines, including COVID-19 vaccines, are covered under a common ITC HS codes – 30022019 (other single vaccine) and 30022029 (other mixed vaccine).

In trade parlance, every product is categorised under a code. It helps in the systematic classification of goods across the globe.

India’s export of vaccines, including COVID-19 vaccines, stood at around USD 125.93 million (other single vaccine) and USD 226.74 million (other mixed vaccine) during April-January 2020-21.