Economic Laws, Regulations andProcedures in

Chandra Shekhar Prasad

New Century PublicationsNew Delhi, India

Contents

About the Book vEditor's Profile viEditor's Note on the Book xxiv-xxvi

1. India at a Glance 1-81.1 Physiognomy and Relief1.2 Range of Biodiversity1.3 Demography1.4 Cultural Pattern1.5 Political and Governance Structure1.6 Socio-economic Transformation

2. Natural Resources of India 9-182.1 Land Resources

2.1.1 Land Pollution and Land Degradation2.2 Water Resources

2.2.1 Rivers of India2.2.2 Rainfall2.2.3 Underground Water2.2.4 Water Resources Potential2.2.5 Utilization of Water2.2.6 Water Pollution2.2.7 Climate Change and Uncertainty in Water Availability2.2.8 Future Requirements of Water

2.3 Forest Resources2.3.1 Present Status of Forests in India

2.4 Mineral Resources

3. Economic Planning Framework 19-283.1 Constitutional Provisions3.2 Establishment of the Planning Commission3.3 Establishment of National Development Council (NDC)3.4 Objectives of Economic Planning in India

3.4.1 Rapid Economic Growth

viii Economic Laws, Regulations and Procedures in India

3.4.2 Removal of Poverty and Unemployment3.4.3 Reduction of Economic Inequalities3.4.4 Self-reliance3.4.5 Balanced Regional Development3.4.6 Employment Generation

3.5 Financing of the Plan3.5.1 Internal Resources3.5.2 External Assistance

3.6 Achievements of Economic Planning3.6.1 Development of Infrastructure and Basic Industries3.6.2 Breakthrough in Agriculture3.6.3 Reasonable Degree of Price Stability3.6.4 Anti-poverty Programmes

3.7 Failures of Economic Planning3.7.1 Slow Rate of Growth3.7.2 Lack of Employment Generation3.7.3 Denial of Social Justice3.7.4 Regional Inequalities

4. Economic Reforms: 1991-2011 29-414.1 Initiation of Economic Reforms4.2 Sectoral Description of Economic Reforms

4.2.1 Agricultural Sector4.2.2 Industrial Sector4.2.3 Fiscal Policy4.2.4 Financial Sector4.2.5 External Sector

4.3 Assessment of Economic Reforms

5. Agriculture and Rural Development 42-615.1 Agriculture in the Constitution of India5.2 Taxation of Agricultural Income5.3 Bonded Labour System (Abolition) Act, 1976

5.3.1 Insurance Scheme for Agricultural Workers5.4 Plant Quarantine (Regulations of Import into India) Order,

20035.4.1 Integrated Pest Management (IPM)

5.5 Protection of Plant Varieties and Farmers' Rights Act, 2003

Contents ix

5.6 Model Act for State Agricultural Produce Marketing(Development and Regulation) Act, 2003

5.7 Mahatma Gandhi National Rural Employment Guarantee Act(MGNREGA), 20055.7.1 Objectives and Significance of MGNREGA5.7.2 Funding of the Programme5.7.3 Expression of Demand for Employment5.7.4 Labour Budget, Inventory of Projects and Perspective

Plan5.7.5 Work Record, Payment of Wages and Preventing Bogus

Muster Rolls5.7.6 Women Empowerment5.7.7 Vigilance and Transparency5.7.8 Public Accountability5.7.9 Grievance Redressal5.7.10 Financial Management5.7.11 Other Processes of MGNREGA5.7.12 MGNREGA: A Review5.7.13 Recommendations of the National Commission for

Enterprises in the Unorganised Sector (NCEUS) toImprove the Functioning of MGNREGA

5.8 Select Recent Schemes for Agricultural Development5.8.1 National Seeds Policy, 20025.8.2 Agriculture Insurance Corporation, 20025.8.3 Marine Fishing Policy, 20045.8.4 National Horticulture Mission, 20055.8.5 National Food Security Mission (NFSM), 20075.8.6 National Rehabilitation and Resettlement Policy (NRRP),

20075.8.7 National Policy for Farmers, 20075.8.8 National Project on Management of Soil Health and

Fertility, 2008

6. Industrial Policy 62-786.1 Introduction6.2 Legal Framework for Industrialisation

6.2.1 Constitutional Provisions6.2.2 Industrial (Development and Regulation) Act, 1951

x Economic Laws, Regulations and Procedures in India

6.2.3 Monopolies and Restrictive Trade Practices (MRTP) Act,1969

6.2.4 Consumer Protection Act, 19866.2.5 Foreign Exchange Management Act (FEMA), 19996.2.6 Competition Act, 2002

6.3 Consumer Protection in India6.3.1 Need for Consumer Protection6.3.2 United Nations and Consumer Protection6.3.3 Role of Standards6.3.4 Central Consumer Protection Council6.3.5 Quality Council of India

6.4 Competition Policy6.4.1 Positive Effects of Competition6.4.2 Economic Reforms and Competition6.4.3 Eleventh Five Year Plan (2007-12) on Competition

6.5 Industrial Licensing and Controls6.6 Industrial Liberalisation since 19916.7 Public Sector Enterprises

6.7.1 Disinvestment of Government Equity6.8 Micro, Small and Medium Enterprises Development (MSMED)

Act, 20066.8.1 Background6.8.2 Classification and Definitions of MSMEs6.8.3 Main Provisions of the MSMED Act, 2006

6.9 Sick Industrial Companies (Special Provisions) Act, 19876.9.1 External Causes6.9.2 Internal Causes

6.10 Tax Holiday Schemes in India6.10.1 Tax Holiday for Newly Established Industrial

Undertakings in Free Trade Zones, ElectronicHardware Technology Parks, or SoftwareTechnology Parks

6.10.2 tax Holiday for Newly Established Hundred PercentExport-Oriented Undertakings

6.10.3 Tax Holiday for Exporters of Wood-based HandicraftItems

7. Mineral Sector 79-947.1 Introduction

Contents xi

7.2 Constitutional Provisions7.3 Ownership of Minerals7.4 Kinds of Mineral Concessions

7.4.1 Period and Tenure of Reconnaissance Permit (RP)7.4.2 Period and Tenure of Prospecting License (PL)7.4.3 Period and Tenure of Mining Lease (ML)

7.5 Mineral Concessions for Foreign Investors7.6 Provisions of Royalty and Dead Rent7.7 Ministries Concerned with Mineral Resources

7.7.1 Ministry of Mines7.7.2 Ministry of Coal7.7.3 Ministry of Petroleum and Natural Gas

7.8 Early Phase of Mineral Policy and Legislation7.8.1 Industrial Policy Resolution (IPR), 19567.8.2 Amendments in MMRD Act, 1957

7.9 National Mineral Policy (NMP), 19937.10 Legislative Changes Consequent to NMP, 1993

7.10.1 Further Amendments in MMRD Act, 19577.11 Need for Review of NMP, 19937.12 High Level Committee on National Mineral Policy, 20067.13 National Mineral Policy (NMP), 20087.14 Initiatives Taken for Implementation of NMP, 2008

7.14.1 Strengthening of Geological Survey of India (GSI)7.14.2 Strengthening of Indian Bureau of Mines (IBM)7.14.3 Mining Tenement and Registry System7.14.4 Forest and Environment Issues

8. Infrastructure Development 95-1198.1 Introduction8.2 India Infrastructure Finance Company Limited (IIFCL)8.3 Transport Sector

8.3.1 Indian Railways8.3.2 Roads and Road Transport8.3.3 Shipping and Ports8.3.4 Civil Aviation

8.4 Telecommunications8.4.1 Telecom Policy (NTP), 19998.4.2 Bharat Sanchar Nigam Limited (BSNL) and Mahanagar

Telephone Nigam Limited (MTNL)

xii Economic Laws, Regulations and Procedures in India

8.4.3 Telecommunications Regulatory Authority of India(TRAI)

8.4.4 Telecommunication Services in Rural Areas8.5 IT and IT-enabled Services

8.5.1 Information Technology Act (ITA), 20008.5.2 Strategies of Indian IT-BPO Companies8.5.3 Information Technology in Indian Banking

8.6 Special Economic Zones (SEZs)8.6.1 Main Features of the SEZ Policy in India8.6.2 Criteria for Approval8.6.3 Conversion of EPZs into SEZs

8.7 Tax Incentives for Infrastructure Development8.7.1 Incentives under Section 35-AC8.7.2 Extension of Tax Concessions for Infrastructure in the

2006-07 Union Budget

9. Energy Management 120-1489.1 Introduction9.2 Ministries Dealing with Energy Needs

9.2.1 Ministry of Power (MoP)9.2.2 Ministry of Coal9.2.3 Ministry of Petroleum and Natural Gas9.2.4 Ministry of New and Renewable Energy (MNRE)9.2.5 Department of Atomic Energy (DAE)

9.3 Electricity Generation, Transmission and Distribution9.3.1 Electricity Act, 20039.3.2 National Electricity Policy, 20059.3.3 Organizations Dealing with Electricity9.3.4 Trading in Electricity9.3.5 New Tariff Policy9.3.6 Power Transmission Network and National Power Grid

9.4 Coal Resources9.4.1 Captive Mining Policy, 19939.4.2 Coal Pricing

9.5 Petroleum and Natural Gas9.5.1 New Exploration Licensing Policy (NELP)

9.6 Renewable Energy Sources9.6.1 Non-conventional Energy Sources in the Electricity Act,

2003

Contents xiii

9.6.2 Indian Renewable Energy Development Agency (IREDA)9.7 Atomic Power for Civil Use9.8 Energy Conservation

9.8.1 Energy Conservation Act, 20019.8.2 Energy Conservation Building Code (ECBC)9.8.3 Bureau of Energy Efficiency (BEE)

10. Government Budgeting Procedures 149-17310.1 Procedures in Respect of Financial Matters10.2 Revenue Budget and Capital Budget

10.2.1 Revenue Budget10.2.2 Capital Budget

10.3 Various Measures of Budget Deficit10.3.1 Overall Deficit (or Budgetary Deficit)10.3.2 Fiscal Deficit10.3.3 Revenue Deficit10.3.4 Primary Deficit10.3.5 Monetised Deficit

10.4 Accounts of the Government ,,10.4.1 Consolidated Fund of India10.4.2 Contingency Fund10.4.3 Public Account

10.5 Financial Emergency10.6 Legalisation of the Budget

10.6.1 Presentation of the Budget10.6.2 General Discussion10.6.3 Demands for Grants10.6.4 Appropriation Bill10.6.5 Finance Bill10.6.6 Supplementary Budget

10.7 Execution of the Budget10.7.1 Maintenance of Accounts10.7.2 Auditing of Accounts

10.8 Parliamentary Control over the Budget10.8.1 Public Accounts Committee10.8.2 Estimates Committee10.8.3 Committee on Public Undertakings

10.9 Fiscal Responsibility and Budget Management (FRBM) Act,2003

xiv Economic Laws, Regulations and Procedures in India

11. Taxation Laws 174-21911.1 Constitutional Provisions Pertaining to Taxes

11.1.1 Distribution of Taxation Powers11.1.2 Restrictions on Taxation Powers of the States11.1.3 Rationale for Constitutional Arrangements11.1.4 Sharing of Central Taxes11.1.5 Philosophy of Articles 268 and 269

! 11.1.6 Taxes and Duties in the Union List not being Levied atPresent

11.1.7 Freedom as to Payment of Taxes for Promotion of anyParticular Religion

11.2 Income Tax11.2.1 Constitutional Provisions11.2.2 Income Tax Act, 1961: Main Provisions

11.3 Wealth Tax11.3.1 Wealth Tax Act, 1957: Main Provisions

11.4 Union Excise Duties11:4.1 Constitutional Provisions11.4.2 Various Types of Excise Duties11.4.3 New Excise Tariff Nomenclature11.4.4 Statutory versus Effective Rates11.4.5 Triple Rate Excise Structure11.4.6 Task Force on Indirect Taxes (Chairman: Vijay

Kelkar), 200211.5 Taxation of Services

11.5.1 Constitutional Provisions11.6 Customs Duties

11.6.1 Legal Framework11.6.2 Various Types of Customs Duties11.6.3 New Customs Tariff Nomenclature11.6.4 Post-liberalisation Reduction and Rationalisation of

Import Tariff11.7 National Level Goods and Services Tax11.8 Direct Taxes Code (DTC)11.9 State Taxes

11.9.1 Land Revenue11.9.2 Agricultural Income Tax11.9.3 Professions Tax11.9.4 Sales Tax/VAT

Contents xv

11.9.5 State Excises11.9.6 Taxes on Motor Vehicles11.9.7 Entertainment Tax11.9.8 Stamp Duty and Registration Fees11.9.9 Electricity Duty11.9.10 Octroi11.9.11 Land and Buildings

12. Public Spending and Subsidies 220-22512.1 Classification of Public Expenditure

12.1.1 Revenue Expenditure12.1.2 Capital Expenditure

12.2 Public Expenditure Policy12.3 Subsidies

12.3.1 Food Subsidy12.3.2 Fertiliser Subsidy12.3.3 Petroleum Subsidy

12.4 Post-liberalisation Thinking on Subsidies

13. Public Debt Management 226-23213.1 Constitutional Provisions Pertaining to Public Borrowings in

India13.2 Instruments of Government Borrowings in India13.3 Contingent and other Liabilities13.4 Reserve Bank of India as Debt Manager of the Government

13.4.1 RBI's Evolving Strategy of Debt Management13.5 Separation of Debt Management from Monetary Management

14. Fiscal Federalism 233-24514.1 Centrally Biased Constitution

14.1.1 Supremacy of Union Legislative Power14.1.2 Union Control over State Legislation14.1.3 Emergency Provisions14.1.4 Restrictions on Taxation Powers of the States14.1.5 Restrictions on Borrowing Powers of the States14.1.6 President's Rule

14.2 Inter-governmental Transfers14.3 Transfer of Resources through the Finance Commission

xvi Economic Laws, Regulations and Procedures in India

14.3.1 Finance Commission14.3.2 From Itemised Sharing to Global Sharing

14.4 Constitution (Eightieth Amendment) Act, 200014.5 Transfer of Resources through the Planning Commission14.6 State-Local Financial Relations

14.6.1 Constitutional Provisions14.6.2 Decentralisation Initiative, 199214.6.3 Constitution (Seventy-fourth Amendment) Act, 1992

15. Financial System 246-25015.1 Regulation and Supervision of Financial System15.2 Legal Reforms for Strengthening Financial Sector

15.2.1 Credit Information Companies (Regulation) Act, 200515.2.2 Government Securities Act, 200615.2.3 Payment and Settlement Systems Act, 2007

15.3 Committee on Financial Sector Assessment (CFSA), 2009

16. Financial Institutions 251-28616.1 Classification of Financial Institutions in India16.2 Regulation and Supervision of Financial Institutions in India16.3 Legal Framework for Banking Sector in India

16.3.1 Laws Related to Banking Operations16.3.2 Laws Relating to Debt Recovery and Enforcement of

Security16.3.3 Laws Relating to Payment Systems16.3.4 Competition Act, 2002: Implications for the Banking

Sector16.3.5 Other Laws

16.4 Commercial Banks16.4.1 Ownership and Governance of Commercial Banks16.4.2 Public Sector Banks16.4.3 Private Sector Banks16.4.4 Foreign Banks in India16.4.5 Monitoring of Frauds16.4.6 Anti-money Laundering Guidelines16.4.7 Migration to Basel Norms16.4.8 Management of Non-performing Assets (NPAs)

16.5 Regional Rural Banks (RRBs)

Contents xvii

16.5.1 Restructuring of RRBs16.6 Urban Co-operative Banks (UCBs)

16.6.1 Mergers/Amalgamations of UCBs16.7 Rural Co-operative Credit Institutions

16.7.1 Problem of Triangular Regulation of RuralCo-operatives

16.8 Development Finance Institutions (DFIs)16.8.1 The Changed Scenario

16.9 Non-banking Financial Companies (NBFCs)16.10 Mutual Funds

16.10.1 Legal and Regulatory Framework16.10.2 Bifurcation of UTI16.10.3 Features of Mutual Fund Industry in India16.10.4 Problems of Mutual Funds16.10.5 Mutual Funds and the Stock Market

16.11 Pension Funds16.11.1 Pension Fund Regulatory and Development

Authority (PFRDA)16.12 Insurance Organisations

16.12.1 Regulations and Controls

17. Financial Markets 287-29917.1 Importance of Financial Markets17.2 Regulation and Supervision of Financial Markets in India17.3 Money Market17.4 Government Securities Market

17.4.1 Meaning of Securities and Government Securities17.4.2 Government Securities Market: Legal Framework and

Role of the RBI17.5 Capital Market

17.5.1 Securities and Exchange Board of India Act, 199217.6 Foreign Exchange Market

17.6.1 Foreign Exchange Regulation Act (FERA), 194717.6.2 Foreign Exchange Regulation Act (FERA), 197317.6.3 Foreign Exchange Management Act (FEMA), 1999

17.7 Payment Systems, Clearing and Settlement Infrastructure

xviii Economic Laws, Regulations and Procedures in India

18. Financial Instruments 300-30718.1 Principal Direct Financial Instruments of the Capital Market

18.1.1 Ordinary Shares18.1.2 Preference Shares18.1.3 Debentures

18.2 Derivative Instruments in India18.2.1 L.C. Gupta Committee on Derivatives Trading in India18.2.2 Amendment of Securities Contract Regulation Act

(SCRA)18.2.3 Measures to Protect the Rights of Investors in the

Derivatives Market18.2.4 Credit Derivatives18.2.5 Other Developments in the Derivatives Market

19. Labour Laws 308-35519.1 Labour Policy and Productivity19.2 Constitutional Provisions for Conditions of Work and

Livelihoods19.3 Post-Independence Philosophy of Labour Laws in India19.4 Laws Concerning Conditions of Work

19.4.1 Factories Act, 194819.4.2 Contract Labour (Regulation and Abolition) Act, 197019.4.3 Plantation Labour Act, 195119.4.4 Mines Act, 1952

19.5 Laws Concerning Wages and Remuneration19.5.1 Minimum Wages Act, 194819.5.2 Payment of Wages Act, 1936

19.6 Laws Concerning Employment Security and IndustrialRelations19.6.1 Industrial Disputes Act, 194719.6.2 Industrial Employment (Standing Orders) Act, 1946

19.7 Laws Concerning Social Security and Welfare of Workers19.7.1 Employees State Insurance Act, 194819.7.2 Employees' Provident Fund Act, 195219.7.3 Payment of Gratuity Act, 197219.7.4 Workmen's Compensation Act, 1923

19.8 Miscellany of Labour Laws19.8.1 Trade Union Act, 1926

Contents xix

19.8.2 Weekly Holidays Act, 194219.8.3 Working Journalists and Other Newspaper Employees

(Conditions of Service) and Miscellaneous ProvisionsAct, 1955

19.8.4 Employment Exchanges (Compulsory Notification ofVacancies) Act, 1959

19.8.5 Apprenticeship Act, 196119.8.6 Motor Transport Workers Act, 196119.8.7 Payment of Bonus Act, 196519.8.8 Beedi and Cigar Workers (Conditions of Employment)

Act, 196619.8.9 Sales Promotion Employees (Conditions of Services)

Act, 197619.8.10 Inter-State Migrant Workmen (Regulation of

Employment and Conditions of Service) Act, 197919.8.11 Emigration Act, 198319.8.12 Dangerous Machines (Regulation) Act, 198319.8.13 Dock Workers (Safety, Health and Welfare) Act, 198619.8.14 Employment of Manual Scavengers and Construction

of Dry Latrines (Prohibition) Act, 199319.8.15 Building and Other Construction Workers (Regulation

of Employment and Conditions of Service) Act, 199619.8.16 Other Legislations

19.9 Social Security for Organized Workers19.9.1 Employees State Insurance (ESI) Scheme19.9.2 Employees Provident Fund Organization (EPFO)19.9.3 Payment of Gratuity19.9.4 Retrenchment Compensation19.9.5 National Renewal Fund

19.10 Issues in Labour Law Reforms19.10.1 Complexities in Labour Laws19.10.2 Inflexibility of Labour Laws19.10.3 Dualism in Labour Laws19.10.4 Industrial Disputes Act (IDA), 194719.10.5 Contract Labour19.10.6 Inspection System19.10.7 Limited Coverage and Poor Enforcement

19.11 Economic Reforms and Labour Laws19.12 Unorganized (Informal) Workers in India

xx Economic Laws, Regulations and Procedures in India

19.12.1 National Commission for Enterprises in theUnorganised Sector (NCEUS)

19.12.2 Social Security Concerns for the UnorganizedWorkers

19.12.3 Unorganised Workers' Social Security Act, 200819.13 Women Workers in India

19.13.1 Categorisation of Laws Pertaining to WomenWorkers

19.13.2 Enforceability of the Acts19.14 Child Workers

19.14.1 Child Labour (Prohibition and Regulation) Act, 1986

20. Environmental Laws 356-39520.1 Environment-Development Interface20.2 Environmental Pollution20.3 Environmental Risks Facing India20.4 Environmental Protection as Component of Growth Strategy20.5 Law and Institutional Framework for Environmental

Protection20.5.1 Constitutional Provisions20.5.2 Major Central Legislations for Environmental

Protection20.5.3 National Green Tribunal (NGT)20.5.4 Implementation of Environmental Laws20.5.5 Ministry of Environment and Forests (MoEF)20.5.6 Central Pollution Control Board (CPCB)20.5.7 State Pollution Control Boards (SPCBs)

20.6 Water Legislations and Treaties20.6.1 Constitutional Provisions20.6.2 Major Central Legislations Regarding Water20.6.3 International Treaties

20.7 Air and Noise Pollution Legislations20.7.1 Air (Prevention and Control of Pollution) Act, 198120.7.2 Noise Pollution (Regulation and Control) Rules, 2009

20.8 Forests and Wildlife Legislations and Procedures20.8.1 Constitutional Provisions20.8.2 Important Central Legislations Pertaining to Forests

andWildlife20.8.3 Legislations of State Governments

Contents xxi

20.9 Forest Conservation Division of MoEF20.9.1 Procedure for Obtaining Forest Clearance20.9.2 Regional Offices and their Functions

20.10 Wildlife Wing of MoEF20.11 Biological Diversity

20.11.1 Convention on Biological Diversity (CBD)20.11.2 Biological Diversity Act, 200220.11.3 Convention on International Trade in Endangered

Species of Wild Fauna and Flora (CITES)20.12 Urbanization and Environment

20.12.1 Growth of Urbanization in India20.12.2 Constitution (Seventy-fourth Amendment) Act, 199220.12.3 Municipal Solid Waste (Management and Handling)

Rules, 200020.13 Disaster Mitigation and Management

20.13.1 India's Vulnerability to Natural Disasters20.13.2 Disaster Management Act, 200520.13.3 National Disaster Management Authority (NDMA)20.13.4 State and District Disaster Management Authorities

(SDMAs)20.13.5 National Disaster Response Force (NDRF)20.13.6 National Institute of Disaster Management (NIDM)

20.14 Global Climate Change and India20.14.1 India's Approach to Climate Change20.14.2 National Action Plan on Climate Change (NAPCC)20.14.3 Prime Minister's Council on Climate Change

20.15 Other Policy Initiatives for Environmental Protection20.15.1 National Environment Policy (NEP) 200620.15.2 NEP, 2006 on Clean Technology20.15.3 Environmental Impact Assessment (EIA)20.15.4 Post-project Monitoring of Environment Clearance

Conditions20.15.5 Development of Environmental Standards20.15.6 Charter on Corporate Responsibility for

Environmental Protection (CREP), 200320.15.7 Comprehensive Environmental Pollution Index

(CEPI) for Industrial Clusters20.15.8 Recognition of Environmental Laboratories under

Environment (Protection) Act, 1986

xxii . Economic Laws, Regulations and Procedures in India

20.15.9 Hazardous Waste Management20.15.10 Chemical Safety20.15.11 Plastic Waste Management20.15.12 Bio-medical Waste Management

21. Foreign Trade 396-41221.1 Foreign Trade (Development and Regulation) Act, 199221.2 Trade Policy Reforms21.3 India's Exports21.4 India's Imports21.5 India's Regional Trade Agreements (RTAs)

21.5.1 India's Look East Policy21.5.2 South Asia Free Trade Area (SAFTA)21.5.3 Association of South East Asian Nations (ASEAN)21.5.4 India-Sri Lanka Free Trade Agreement (ISLFTA)21.5.5 India-Thailand Comprehensive Economic Cooperation

Agreement (CECA)21.5.6 Bay of Bengal Initiative for Multi-sectoral Technical

and Economic Cooperation (BIMSTEC) Free TradeAgreement (FTA)

21.5.7 India-Singapore Comprehensive EconomicCooperation Agreement (CECA)

21.5.8 Asia Pacific Trade Agreement (APTA)21.5.9 India-Chile Preferential Trade Agreement (PTA)21.5.10 India-South Korea Comprehensive Economic

Partnership Agreement (CEPA)21.5.11 India-Gulf Cooperation Council (GCC) Free Trade

Agreement (FTA)21.5.12 India-Japan Comprehensive Economic Cooperation

Agreement (CECA)21.5.13 India-Malaysia Comprehensive Economic

Cooperation Agreement (CECA)21.5.14 India-Mauritius Comprehensive Economic

Cooperation and Partnership Agreement (CECPA)21.5.15 India-SACU Preferential Trade Agreement (PTA)

Negotiations21.5.16 India-Pakistan Trading Arrangement21.5.17 India-Nepal Treaty of Trade21.5.18 India-EU Broad-based Trade and Investment

Contents xxiii

Agreement21.5.19 India-European Free Trade Association (EFTA)

Negotiations on Broad-based Bilateral Trade andInvestment Agreement

21.5.20 Global System of Trade Preferences (GSTP)

22. Foreign Investment 413-424• 22.1 India as an Investment Destination22.2 Foreign Direct Investment (FDI) in India

22.2.1 FDI Policy Regime22.2.2 Routes for Inward Flows of FDI22.2.3 Post-approval Procedures22.2.4 Entry Options for Foreign Investors22.2.5 Investment Promotion and Facilitation in India

22.3 Foreign Portfolio Investment22.3.1 Eligibility for Registration as FII22.3.2 Restrictions on Foreign Portfolio Investments

Glossary of Select Economic Terms 425-452

Index 453-466