In a report on India's trade policies and practices currently being discussed by the WTO Trade Policy Review Body (TPRB) along with a policy statement prepared by the Indian government, the WTO secretariat has pointed out that while larger flows of foreign investment and increased international trade helped India achieve annual average growth rates of seven per cent from 1993 to 1996, it was a matter of concern that economic growth slowed in 1997.

The WTO secretariat also notes with concern that while liberalisation in the manufacturing sector has been widespread, agriculture and consumer goods have been relatively untouched by reforms. ``While there has been some liberalisation, there has been no change in thestructure of agricultural incentives and subsidies,'' says the report.

The report notes that India recognises the need to continue economic reforms, with an increased emphasis on improving its industrial infrastructure. The latter has proved to be a constraint in expanding economic activity and stimulating exports. Other measures under consideration are reductions in tariffs and non-tariff measures, reforming the subsidies structure (estimated to account for 14 per cent of GDP), and restructuring public sector enterprises.

The report admits that India's financial services are gradually being liberalised while significant headway has already been made in liberalising telecommunications.

Other services, such as shipping, roads, ports and air, are beginning to open up, but, the report states, foreign participation remains relatively low and significant administrative barriers remain.

India amended its Copyright Law in 1994 to comply with its obligations under the Trade-Related Intellectual PropertyRights (TRIPS) Agreement. States the report, ``As a developing country, India has until the year 2000 for most products, but until 2005 for some goods, to comply with the TRIPS Agreement but is currently required to provide means for receiving product patent application in certain areas. On this issue, a decision by a WTO dispute settlement panel and the Appellate Body has stated that India was in violation of its obligation.''

Tariffs have been reduced from an average of 71 per cent in 1993 to a current average of 35 per cent. The report notes, however, that the tariff structure remains complex and that escalation remains high in several industries, notably paper and paper products, printing and publishing, wood and wood products, and food, beverages and tobacco. In general, bound tariffs remain substantially higher than applied rates, especially on agricultural products.

The WTO report observes that import licensing remains India's main non-tariff barrier, although reforms in import licensing have movedahead steadily, with the number of goods covered being reduced, although priority was accorded to capital goods, rather than consumer items.

One criticism levelled by the report is that India's retention of export subsidies and incentives such as income tax exemptions, subsidised credit, export insurance and guarantees has increased the possibility of resource misallocation.

While conceding that India has simplified its foreign investment regime and opened up a number of sectors to foreign direct investment, thereby helping the country integrate with the global economy, the report points out that the recent economic slowdown has underscored the need for continued and even accelerated reform.