ervi es e tor     10.9
                                                                   Depots (ICDs), Container Freight Stations (CFSs)
         reStrIctIonS and reGulatIonS                              and Ports.
     One major issue in services is the domestic barriers
     and regulations. Domestic regulations, in strict              construction DeveloPment
     WTO terms, include licensing requirements,                    In this sector, bottlenecks result from continuation
     licensing procedures, qualification requirements,             of restrictions under the Urban Land Ceiling and
     qualification procedures, and technical standards             Regulation Act (ULCRA) in some states namely
     but here other restrictions and barriers are also             Andhra Pradesh, Assam, Bihar, and West Bengal,
     considered. While there are many domestic                     which have not yet repealed it and the confusion
     regulations in our major markets, which deny                  in the process required for clearance of buildings
     market access to us and therefore need to be                  even after the repeal of ULCRA by passing of the
     negotiated at multilateral and bilateral levels, there        Urban Land(Ceiling and Regulations) Repeal Act
     are also many domestic regulations in India which             1999 by the other states.
     hinder the growth of this sector.                                  There is also lack of clarity on the role of
           Since domestic regulations perform the role             states as facilitators in the land acquisition policy
     of tariffs in regulating services, there is need to           resulting in increasing number of court litigations
     list the domestic regulations in India which need             adding to risk profile of builders/projects thereby
                                                                   restricting lenders from extending finance to such
     to be curbed to help growth of the sector and its
                                                                   builders/ projects.
     exports, while retaining those which are necessary
     for regulating the sector at this stage. An indicative             There are also restrictions on floor area ratio
     list of some important domestic regulations in                (FAR) in many states; and other restrictions
     India which need to be examined for suitable                  like the application of bye laws/regulations and
                                                                   its exemptions, e.g., increase in FAR which
     policy reforms9 in the services sector is as follows:
                                                                   varies from project to project and is sometimes
     trADe AnD trAnsPort services                                  discriminatory. Obtaining environment clearance
                                                                   is another major hindrance.
     Some constraints in these sectors include restrictions
     on inter-state movement of goods which could ease             AccountAncy services
     with the adoption of the model Agriculture Produce
                                                                   While the accountancy professionals were hitherto
     and Marketing Committee (APMC) Act by many
                                                                   allowed to operate either as a partnership firm
     states; the Multimodal Transportation of Goods                or as a sole proprietorship firm or in their own
     Act 1993 which needs revision to ease the existing            name since the Indian regulations do not permit
     restrictions on transportation and documentation              exceeding 20 professionals under one firm, the
     through different modes of transport, particularly            emergence of Limited Liability Partnership (LLP)
     restrictions in the Customs Act, which do not allow           structure is likely to address this impediment.
     seamless movement of goods; and restrictions on               However, the number of statutory audits of
     free movement of cargo between Inland Container               companies per partner is restricted to 20.
         9.  H.A.C. Prasad and R. Sathish, Working Paper No.            FDI is also not allowed in this sector and
             1/2010-DEA on ‘Policy of India’s Services Sector,     foreign service providers are not allowed to
             2010’ with updates from concerned Departments and     undertake statutory audit of companies as per
             Institutions, as quoted in, Ministry of Finance, (New
             Delhi: Government of India, Economic Survey 2013-14,  the provisions of the laws in India. There are
             p. 228).                                              also domestic regulations like prohibition on