Subsidies

Replies to QUESTIONS POSED bY canada[1] REGARDING THe 2021-2023
new and full notification of INDIA[2]

The following communication, dated and received on 28 April 2025, is being circulated at the request of the delegation of India.

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Question 1

Did India provide any subsidies for fishing or fishing related activities during the period covered by this notification?

Reply:

India will be providing information on notifiable subsidies for fishing and fishing related activities with respect to the said period in accordance with the relevant WTO provisions in due course.

A.      SCHEMES AT THE CENTRAL GOVERNMENT LEVEL

Question 2

Regarding the following programs:

·_              Program 3 (North East Industrial Development Scheme)

(a)    Could India please provide details on the eligibility requirements associated with these programs?

Reply:

This scheme has expired on 31 March, 2022.

·_              Program 5 (Pradhan Mantri Kisan Sampada Yojana)

(a)    Could India please provide details on the eligibility requirements associated with these programs?

Reply:

The scheme has a primary emphasis on those involving Difficult Areas, applicants from specified categories (disadvantaged), Farmer Producer Organizations (FPOs), and Self-Help Groups (SHGs), with the aim of modernizing and strengthening the agricultural and food processing sectors.

·_              Program 6 (Pradhan Mantri Formalisation of Micro Food Enterprises)

(a)    Could India please provide details on the eligibility requirements associated with these programs?

Reply:

This scheme is applicable horizontally to Micro food processing units.

Question 3

Program 7 (Shipbuilding Financial Assistance Policy) aims to promote the shipbuilding industry.

(a)    Does this program include support for the construction of fishing vessels?

(b)    Is the assistance conditional on the use of domestic inputs (e.g. steel)?

Reply:

It does not provide such support, nor does it prescribe the stated condition for assistance.

Question 4

Program 8 (Scheme for Promotion of Manufacturing of Electronic Components and Semiconductor) proposes to provide financial incentives for an identified list of electronic goods.

(a)    Could India please provide the "identified list of electronic goods"?

(b)    What are the eligibility requirements associated with this program?

Reply:

These electronic goods are identified by HSN codes. Eligibility requirements vary from programme to programme.

B.      SCHEMES AT THE STATE GOVERNMENT LEVEL

Question 5

The below questions pertain to the following programs:

·_              Program 1.1 (Incentives under Industrial Development Policy 2020-23)

·_              Program 2.1 (Scheme for Incentive to Industries)

·_              Program 2.10 (Scheme for Assistance for Industrial Infrastructure)

Program 1.1 (Incentives under Industrial Development Policy 2020-23)

(a)    Is support under these programs restricted to certain industries? If so, which industries are eligible to receive support?

(b)    Is support under these programs restricted to certain institutions or types of enterprises? If so, which ones?

(c)     What is the maximum amount an entity can receive under these programs?

Reply:

Support under this program is extended to all industries on a horizontal basis, with the exception of a few, such as tobacco and alcohol-based industries. The support is limited by its scope, e.g., reimbursement of stamp duty on land, and state component of GST (for a limited period).

Program 2.1 (Scheme for Incentive to Industries)

(a)    Is support under these programs restricted to certain industries? If so, which industries are eligible to receive support?

(b)    Is support under these programs restricted to certain institutions or types of enterprises? If so, which ones?

(c)     What is the maximum amount an entity can receive under these programs?

Reply:

This scheme applies horizontally to all new and existing industrial units engaged in manufacturing activities, with the exception of certain categories such as tobacco products, firewood, and charcoal. The support is limited by its scope, i.e., reimbursement of state component of GST. 

Program 2.10 (Scheme for Assistance for Industrial Infrastructure)

(a)    Is support under these programs restricted to certain industries? If so, which industries are eligible to receive support?

(b)    Is support under these programs restricted to certain institutions or types of enterprises? If so, which ones?

(c)     What is the maximum amount an entity can receive under these programs?

Reply:

This scheme applies horizontally to all new and existing industrial units engaged in manufacturing activities, with the exception of certain categories such as tobacco products, firewood, and charcoal. The support is limited by its scope, i.e., reimbursement of state component of GST. 

Question 6

Program 6 describes a New Industrial Policy for 2020-25.

State government of Karnataka

(a)    Could India please specify what the goals and objectives of this policy are?

(b)    Does the program include priority industrial sectors?

Reply:

This program has ended on 08 February 2025.

Question 7

Program 7.1 (Industrial Promotion Policy 2014) is described as a "support in the form of investment promotion assistance, green industrialisation assistance, infrastructure development assistance".

(a)    Could India please specify what "green industrialisation assistance" includes? Are there specific sectors that are targeted (e.g. steel)?

Reply:

"Green industrialization assistance" includes investment in setting up of waste management, pollution control devices, health and safety standards, and water conservation/harvesting.

This assistance is not targeted towards a particular sector.

Question 8

Program 10 (State Incentive Subsidy) states that only registered units are eligible for grant of assistance.

(a)   What constitutes as a "registered unit" for the purposes of this program?

(b)    Are there any other eligibility requirements associated with this program? If so, could India please provide more details?

Reply:

Registered units refer to units that have Udyam Registration.

Udyam Registration is a government-issued digital certification in India that officially recognizes Micro, Small, and Medium Enterprises (MSMEs). This program is applicable on a horizontal basis to all registered units.

Question 9

Program 11.1 (SGST Reimbursement Scheme) and Program 11.2 (Interest Subsidy Scheme) specify that the subsidy is provided to new industrial units in "Priority Sector".

(a)    Could India please specify what is a "priority sector" for the purposes of these programs?

Reply:

Non-mineral-based new industrial units in specified underdeveloped districts in the State.

Question 10

Program 12.2 (Scheme for Industrial & Business Development Policy) mentions that the subsidy is provided to MSMEs and other units as per their eligibility.

(a)    Could India please clarify what are the eligibility requirements associated with this program?

Reply:

At present the program is applicable on a horizontal basis to all manufacturing units (except the Negative List, as specified, e.g. Tobacco, alcohol etc.), and specified sectors in services in the state.

Question 11

Program 13 (Tripura Industrial Investment Promotion Incentive) states that the policy objective is the "sustainable and inclusive industrial development through creation of employment, and promoting "Thrust Sector" enterprises".

(a)    Could India please provide information on what constitutes "thrust sector" enterprises?

Reply:

These include municipal waste processing and agro-waste processing tourism sector and hospitals/nursing homes.

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