Revised WTO offer in services gets approval

The Cabinet Committee on the WTO today approved the revised offer in the services sector.

As per the offer to the WTO under the General Agreement on Trade in Services, India will bind higher the foreign direct investment limit in banking, telecom, retail and accounting.

The WTO has asked all member countries to submit their revised offers by May 31. The committee on WTO headed by the Prime Minister Manmohan Singh had directed the ministry of commerce to make revised proposals in sectors where initial offers had been made in June 2003.

Commerce and Industry Minister Kamal Nath said, "There was no proposal before the Cabinet. There is nothing in terms of any amendment as the discussions on services at the WTO is still in a negotiating phase. We will deepen our offers based on the offers we get. It will be on a reciprocal basis."

While making the revised offer, India would also consider the range and depth of improved offers that developed countries would make, in modes and sectors of interest to India, he said.

Officials said the revised offers would have no impact on the domestic policy.

"We have only offered to revise our proposals in those sectors which have been opened to FDI in the last two years. In addition, we will offer to bind our FDI caps higher in some sectors," an official said.

India will make revised offers in sectors in which commitments were made in the Uruguay Round, or in which initial offers were made in the ongoing Doha Round.

The sectors thus covered include business services, construction and related engineering services, health-related and social services, tourism and travel-related services, maritime services and transport services.

"Given its strengths, India is a demander in WTO negotiations for liberalisation of trade in services. Currently, India's earnings through services exports are estimated at $ 30 billion. According to the Boston consulting group, this has the potential to increase to $ 200 billion by 2020, if developed countries provide better access to their markets, especially through improved offers in Mode 1 (cross-border supply which covers BPO) and Mode 4 (movement of natural persons)," Nath said.

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India will further tighten the foreign direct investment limit in banking, telecom, retail and accounting

The WTO has asked all member countries to submit their revised offers by May 31

While making the revised offer, India would also consider the range and depth of improved offers that developed countries would make

The revised offers would have no impact on the domestic policy

India will make revised offers in business services, construction and related engineering services, health-related and social services