The Cabinet committee on World Trade Organisation matters will consider a proposal to further liberalise the country's foreign investment norms in exchange for greater mobility for Indian professionals.
The commerce ministry had, in a Cabinet note, argued for a more liberal foreign investment regime in view of similar requests by India's trading partners. These relate to the setting up of a commercial presence by foreign companies through the opening of branches and subsidiaries.
The ministry had proposed that "India's offer should be somewhere between the minimalist offer and throwing open all its cards", government officials said.
India will have to finalise its position on WTO services negotiations in the next few weeks.
India's interest in the services negotiations under the General Agreement on Services lies primarily in liberalising the movement of independent professionals, like software engineers, to other countries.
The Cabinet note had pointed out that most countries had fared inadequately on this count.
India is also interested in the part of the negotiations that relates to companies being allowed to sell their services across borders electronically. It is a field in which India has a huge comparative advantage.
The officials said it would be to India's advantage to maintain the level of liberalisation achieved in this field, as there were few restrictions on this at present.
"It would be to India's advantage to get its trading partners to fully bind the existing liberal regime, but we also need to undertake similar cross-cutting commitments," an official said.
India is unlikely to make any commitments on opening up its legal and distribution services, while offering to partly open accounting and book-keeping services. The officials said India was planning to permit select access for the accounting services.
The government is also planning to open up the computer, financial, maritime tourism, construction and engineering services.
It had been decided at the Doha ministerial meeting that WTO members would submit initial requests by June 2002 and initial offers by March 2003.
This request-offer process is currently underway and most countries, including India, have interpreted these deadlines as indicative only. However, members like the US, the European Union and Australia have already submitted their offers.
India has submitted initial requests on computer-related, architecture, health, audio-visual, tourism, maritime and financial services. On the other hand, it has received requests from 25 countries and is finalising its response through an initial offer.
The initial offer will only indicate a member's willingness to liberalise. It does not have any legal status and can be withdrawn or amended at any time if the member is of the opinion that the trading partners' offers are not satisfactory or adequate.
In formulating the offers, members are not obliged to respond positively to any particular request, nor is there any requirement for reciprocity.
