Barring some agricultural items for which the bound rates have been historically kept low, the rate is 100 per cent for primary products, 150 per cent for processed food items, and 300 per cent for edible oils.

India is also to lower the bound rates for textile items by January 1, 2005, and for all other products by March 1, 2000. Prior to the round, India had bound about 6 per cent of its tariff lines.

In all, India has bound about 67 per cent of its tariff lines, including those for agricultural items, and 62 per cent of lines for non-agricultural goods. Recently, 12 more agro products were brought within the ambit of bound rates, ranging from 50-60 per cent. The major items, which include rice, skimmed milk and milk powder, jowar, and spelt (a variety of wheat), were earlier enjoying zero-duty rates.

Tariff lines remaining unbound include mainly consumer products like passenger cars and some industrial items.

For non-agricultural products, India has undertaken, with a few exceptions, ceiling bindings of 40 per cent ad valorem for finished goods, and 25 per cent for intermediate goods, machinery, and equipment.

As for the applied rates, which are lower than the bound ones, they are decided autonomously as part of the overall economic policy. Under Article II of GATT, each member-country of the World Trade Organisation (WTO) is obliged not to impose tariffs, duties or charges which are in excess of these bindings set forth in its tariff schedule.

India is an original signatory to GATT 1947. It also signed the Marrakesh agreement, establishing the WTO on April 15, 1994. The WTO formally came into force on January 1, 1995.

The GATT, in its modified form known as GATT 1944, also became a part of the WTO agreement. India has been a consistent supporter of a multilateral trading system.