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SERVICES OFFERS: CABINET COMMITTEE ON WTO MEETS
New Delhi: May 30, 2005
The Cabinet Committee on WTO matters met today to give directions to the Ministry of Commerce and Industry on the Offers they are permitted to make to the World Trade Organisation (WTO) as part of the Revised Offers in the services negotiations in May/June, 2005.
In accordance with the July Framework Agreement adopted by the WTO on 1st August, 2004 that laid down the broad principles and guidelines for further negotiations in the Doha Round, WTO member countries are encouraged to make Revised Offers by May,2005 in the ongoing negotiations under the General Agreement on Trade in Services (GATS) of the WTO.
The Cabinet Committee on WTO matters today directed the Ministry of Commerce to make improved Offers in sectors where Offers have been made by India as part of Initial Offers in June, 2003. It also gave the Commerce Ministry the flexibility to move forward in the services negotiations within the limits of its autonomous liberalisation. While making the Revised Offer, India will also be guided by the range and depth of the improved Offers that would be made by the developed countries in the Modes and sectors of interest to India. “What we ultimately offer will depend on what is offered to us”, Shri Kamal Nath, Union Minister of Commerce & Industry, said after the meeting.
In keeping with the July Framework Agreement, India will be making its Revised Offers shortly in sectors which include those in which commitments were made in the Uruguay Round or in which Initial Offers were made in the ongoing Doha Round of WTO negotiations. The sectors thus covered include business services, construction and related engineering services, health related and social services, tourism and travel related services, maritime services and transport services.
“Given its strengths in this area, India is a demandeur in the WTO negotiations for liberalisation of trade in services. Currently, India’s earnings through services exports are estimated at US $ 30 billion. According to the Boston Consulting Group, this has the potential to increase to US $ 200 billion by 2020, if the developed countries provide better access to their markets, especially through improved offers in respect of Mode 1 (cross-border supply which covers BPO) and Mode 4 (movement of natural persons)”, Shri Kamal Nath said.
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Press Information Bureau
Government of India
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SUSTAINABLE DEVELOPMENT AND CORPORATE RESPONSIBILITY MUST GO HAND IN HAND, SAYS KAMAL NATH
New Delhi: May 27, 2005
Shri Kamal Nath, Union Minister of Commerce & Industry, has said that sustainable development and corporate responsibility must go hand in hand. Speaking at the Corporate Awards Ceremony of the Tata Environment Research Institute (TERI) here this evening, the Minister said that he had in his capacity as Minister for Environment & Forest a decade ago spoken about “sustainable development” and now in his current responsibility as Commerce & Industry Minister, he was talking of “sustainable trade”. He said this was not just polemics. “If trade & commerce – and by extension, business & industry – is not sensitive to its social and environmental contexts, it will not be sustainable. And if it is not sustainable, it will collapse”, he said.
“At a time when Indian companies are developing global outreach and widely spread business networks it is necessary that they be careful about their footprints on society and on the environment. This is where I see an immense potential of corporates in being partners with the Government and with their stakeholders. Indian industry today has to think beyond traditional ways of doing business and creating wealth. Creating wealth is only possible when one has an environment that supports business – and by ‘environment’, I mean both, the natural environment as well as the social environment: the society, the people with whom we do business and for whom we do business. The sense of commitment to take up activities that promote both business and the community must be regarded as an integral part of business decision making”, the Minister said.
He also congratulated TERI on its CoRE-BCSD – the Corporate Houses linked with the Business Council for Sustainable Development.
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Press Information Bureau
Government of India
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Rs.93 CRORE WORTH NEW SCHEMES FOR TEA CLEARED
New Delhi: May 26, 2005
Cabinet Committee on Economic Affairs today gave its approval for implementing the following schemes involving a total estimated outlay of Rs.93 crore from the special fund created with the collections of additional duty of excise on tea, as recommended by the Expenditure Finance Committee:
(i) Grant of subsidy for production of orthodox tea @ Rs.3 per kg. for leaf grades and Rs.2 per kg. for dust grades for existing levels of production with additional incentive @ Rs.2 per kg. for the incremental volume over the previous year from 1st January 2005 to 31st March, 2007.
(ii) Meeting the actual deficits of the two Research & Development Institutions viz., Tea Research Association (TRA) at Tocklai (Assam) and United Planters’ Association for Southern India – Tea Research Foundation (UPASI-TRF), Tamil Nadu, for a period of five years w.e.f. 2004-05 subject to the maximum of 80% of the expenditure on already agreed items of expenditure, of which 49% would be met from the normal Plan outlay of the Tea Board and balance from the special fund.
Shri Kamal Nath, Union Minister of Commerce & Industry, has said that: “Implementation of the above schemes is going to contribute towards the overall modernisation and development of the tea plantation sector. This will impart vigour and health to a number of individual gardens and also the industry as a whole in terms of increase in production, productivity, quality, higher unit value realisation, exports etc. There will also be additional support for research in tea, which would be helpful to the industry”.
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Press Information Bureau
Government of India
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New Delhi: May 26, 2005
Cabinet Committee on Economic Affairs (CCEA) today approved a package of relief measures to revive the coffee sector as follows:
i) To share equally the total interest burden on SCTL (Special Coffee Term Loan) during the three year moratorium period of Rs.287.10 crore amongst the banks, the government and the grower loanees to the extent of one third each;
ii) To release the government subsidy only after growers had paid their share in full by the end of June 2005;
iii) To provide an additional budgetary allocation of Rs.95.70 crore to the Department of Commerce during 2005-06 to meet the government’s share of the interest on SCTL. The funds will routed to the growers’ SCTL accounts in the concerned banks through the Coffee Board;
iv) To request the banks to lower the interest rates charged on SCTL from the existing 11% to 9% or rate applicable to agriculture sector whichever is lower, during the remaining repayment period of SCTL loans;
v) To write off coffee developmental loans along with interest amounting to around Rs.24 crore, due from the Coffee Board to the Government of India. The Coffee Board will in turn waive the old developmental loans amounting to around Rs.64.59 crore extended by the Board to the coffee growers (below 10 hectares) only;
vi) To continue the interest subsidy scheme on working capital loans for small growers (below 10 ha) at the rate of 5% and large growers at rate of 3% for the remaining years of the 10th Plan. The expenditure on this will be met out of overall tenth Plan allocations of the Coffee Board. However, this subsidy would be reduced by 1% for a period of 3 years in the case of those growers who receive the benefit of reduced interest burden on SCTL during the moratorium period.
The scenario in the coffee sector over the last few years has been extremely unfavourable for the growers, particularly the small grower segment, with the continuing decline in prices of coffee in the domestic as well as international markets.
Shri Kamal Nath, Union Minister of Commerce & Industry, has said that: “With the implementation of this relief package, which is aimed at debt amelioration, will bail out the coffee industry from its current crisis and will provide much needed financial relief to the coffee growers, who are facing financial difficulties”.
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Press Information Bureau
Government of India
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BETTER PRICE FOR TOBACCO GIVES RELIEF TO TOBACCO GROWERS
New Delhi: May 26, 2005
Chairman, Tobacco Board, held a joint meeting with the tobacco growers’ representatives of Andhra Pradesh and the members of the tobacco trade on 24.05.2005. Two grower representatives from each auction platform and other important leaders of the growers attended the meeting. The trade was represented by the President, Indian Tobacco Association, manufacturers and exporters.
The grower representatives and the Chairman, Tobacco Board argued for better price realization to tobacco growers, in view of increased cost of cultivation. The trade represented by Indian Tobacco Company (ITC) and Godfrey Phillips India (GPI) agreed to purchase additional quantity of 5 to 7 million kgs. and 2 to 3 million kgs. respectively. The President, Indian Tobacco Association, assured that the prices would not fall any further and the average price would increase in near future.
The impact of this meeting was felt almost immediately in the market. The prices in the Northern Light Soil areas have gone up by Rs.1 to Rs.2 per kg., while in the other areas, the prices have increased by Rs.0.50 to Rs.1 per kg. As a result, the average price realisation on 24.05.2005 increased to Rs.37.14 per kg. compared to Rs.34.61 per kg. on 21.05.2005. This amounts to an increase of Rs.2.53 per kg. over the last 3 days.
As against an estimated production of 146.21 million kgs. tobacco in Andhra Pradesh this year, 77.12 million kgs. has already been marketed. The daily off-take is about 1.7 to 1.8 million kgs. The trade is confident that the entire crop in Andhra Pradesh will be marketed at remunerative prices to the growers.
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Bureau
Government of India
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INDIA- BOTSWANA TO STEP UP BILATERAL TRADE
New Delhi: May 26, 2005
India is looking forward for enhanced export of services relating to Information Technology and Construction industry to Botswana as part of its efforts to increase bilateral trade with that country. This was stated by the Union Minister of State for Commerce and Industry, Shri EVKS Elangovan at an interactive meeting with the visiting President of Botswana, Mr. Festus G. Mogae here last evening.
The Minister said that India was keen to share its knowledge and experience in the field of information technology with developing countries like Botswana so as to develop a sustained partnership in technology transfer and development. He said that India would be happy to be associated with the diversification of the economy of Botswana especially in the fields of agriculture, textiles, health, tourism, development of small and medium enterprises and institution building for channelising development finance to the entrepreneurs. Observing that Botswana is known for its sound management of rich natural resources, the Minister called for efforts to further strengthen economic cooperation and trade partnership.
Shri Elangovan said that India and South African Customs Union (SACU) are working towards finalizing a Preferential Trade Agreement (PTA) which would provide further opportunities to strengthen bilateral trade between India and Botswana. He added that Botswana has been given high priority under the “Focus: Africa” programme of the government to increase its trade in the region.
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SB/SS
New Delhi: May 24, 2005
Shri Kamal Nath, Union Minister of Commerce & Industry, has said that his Ministry is working closely with the industry to develop India as an International Trading Centre for Diamonds. “Considering that we are the largest purchaser of diamond roughs in the world, there is no reason why India should not have a Diamond Trading Centre at par with the centres currently in Belgium, Israel and Dubai. We hope to have this established in the near future”, he said, while speaking at the inauguration of the International Diamond Conference – Mines to Market 2005 in Mumbai today. Shri Kamal Nath further said that the government would encourage foreign direct investment (FDI) and joint ventures between Indian entrepreneurs and businesses abroad in sectors all along the diamond chain – exploration, mining and sourcing, cutting & polishing, jewellery designing and manufacturing, exports, and sales and marketing. He underlined that enormous opportunities existed not only for FDI by foreigners in India but also for FDI by Indian industrialists in other countries.
“We are quite open to the idea of entering into economic cooperation agreements with countries, especially the countries of Africa, that ensure the supply of rough diamonds to India, while also bringing value and investment in other areas (such as transport, communications and infrastructure) to supplier countries. We should place emphasis on the promotion of forward and backward linkages, including the consolidation of our position in the small diamond sector segments, in syndicating buying of rough diamonds, and creating controlling stakes in mine-heads through joint ventures and tie-ups. We believe that only such trade is sustainable as brings value and benefit to all concerned; and we want to work on this basis”, he said.
Shri Kamal Nath also called upon investors to set up enterprises in Special Economic Zones (SEZs) dedicated to a single industry adding that “the gems and jewellery industry is best placed to take advantage of this”, now that the SEZ Act has been passed by Parliament.
Mr. Festus Mogae, President of Botswana; Ms. Phymzile Mlambo-Ngcuka, Minister of Mines & Energy, South Africa; Mr. Ingele Ifoto, Minister of Mines, Democratic Republic of Congo; and Shri Vilas Rao Deshmukh, Chief Minister of Maharashtra were among the dignitaries present on the occasion.
Referring to his recent visit to Australia in connection with meeting of the Joint Ministerial Council and Joint Business Council in Sydney and Melbourne, Shri Kamal Nath stressed that his first stop was Perth in Western Australia – the heart of Australia’s diamond mining area and said he had extensive and very promising discussions with mining companies as well as the Western Australian Prime Minister regarding continued supply of rough diamonds to India.
The cut and polished diamond segment accounts for about 75% of India’s total gems & jewellery exports. Out of every 12 diamonds in any piece of jewellery in the world, 11 are cut and polished in India. “I would not like you to treat this amazing fact as a mere statistic, but rather see it as an indication of the enormous relevance and importance of the diamond industry to the people of India”, Shri Kamal Nath said.
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Press Information Bureau
Government of India
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WTO NEGOTIATIONS ENTERING A CRUCIAL PHASE
WORKSHOP FOR STATE GOVERNMENTS ON WTO HELD
New Delhi: May 24, 2005
The Commerce Secretary, Shri S.N. Menon said that the WTO negotiations launched at Doha in 2001 are entering a crucial phase. He said that the frame work agreement decision reached in Geneva in July 2004 has given much needed fillip to the ongoing negotiations and the next few months would witness intense negotiating activities in the run up to the next WTO Ministerial Conference. He was speaking at the workshop for State government officials on WTO issues organized by the Ministry of Commerce and industry, here today.
Shri Menon outlined India’s priorities in the negotiations on agriculture as removal of trade distorting subsidies by developing countries, ensuring adequate protection to the livelihood concerns of poor subsistence farmers, and to safeguard food security, livelihood and rural development concerns. On Non Agricultural Market Access (NAMA), India wants to address the issues of tariff peaks, tariff escalation in developed countries so that developing countries can access the market in developed countries. He underscored the need for the state governments to play an increasingly proactive role in the negotiations to keep themselves abreast of the latest developments and to evolve institutional mechanisms to implement the obligations assumed by India.
The one day workshop covering the areas of agriculture, NAMA and development issues is attended by senior government officials from all the state governments and the Union territories. Shri Prabir Sengupta, Director of Indian Institute of Foreign Trade (IIFT) in his welcome address said that trade distorting subsidies in agriculture by developed countries create a serious imbalance adversely affecting the developing countries. The huge subsidies provided by the developed countries to their farmers enable them to export their agricultural products causing the international prices to remain artificially low as they do not reflect the resource costs. “Over the years, the terms of trade are becoming adverse against the agriculture based developing countries and we need to correct this situation,” he said.
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INDIA PAVILION IN JAPAN - A HUGE DRAW
New Delhi: May 20, 2005
The India Pavilion at the Expo 2005, held at Aichi in Japan has drawn huge crowds indicating an overwhelming response from the general public in Japan. The pavilion was organized by the India Trade Promotion Organisation (ITPO) under the Ministry of Commerce and Industry. The theme of this year’s Expo is ‘Nature’s Wisdom’.
Occupying an area of 1944 sq. mts, the India pavilion has four major sections of display - Tree of Light, Temple of harmony, Global Bazaar and Spirit of India. It has been declared as the most popular country pavilion at the Expo and has drawn maximum number of visitors. The India pavilion was also one of the two pavilions from 121 countries and 15 international organisations which were selected for live coverage by a major TV channel of Japan. Official sources say that the India Pavilion, which was inaugurated by the Indian Ambassador in March, with about 20000-40,000 visitors daily, has attracted over 30 % of total visitors, to the Expo each day. Of the total 22 lakh visitors at the Expo, about 6.5 lakhs have visited the India Pavilion.
Most visitors singled out the Commercial section which exhibits a fairly large representation of Indian products like jewellery, handicrafts, textiles, food and accessories as the most interesting segment of the India pavilion.
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PRESS NOTE
The Government has issued Notification No.2 (RE-2005) dated 13th May, 2005 amending sub-para 6.8(a) and 6.8(h) of the Foreign Trade Policy. As a consequence, Export Oriented Units (EOUs) will not be allowed to sell pepper and pepper products either at concessional rate of duty or on payment of full duty in the Domestic Tariff Area (DTA). This has been done in order to impose some discipline on the Export Oriented Units from bringing in pepper duty-free and offloading it into the DTA, thereby depressing prices to the detriment of pepper growers in the country. The move is aimed at safeguarding the interests of domestic pepper growers.
The Notification No.2 (RE-2005) dated 13th May, 2005 is available on the DGFT website http://www.nic.in/eximpol .
Directorate General of Foreign Trade (DGFT), Ministry of Commerce & Industry, New Delhi, dated 20th May, 2005
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New Delhi: May 19, 2005
Shri Kamal Nath, Union Minister of Commerce & Industry, has invited Australia to invest more in India and stressed that Australia, with its continental size and experience, is uniquely equipped to partner India in the area of infrastructure development, especially in roads and energy. He also underlined the need to diversify the basket of trade so as to increase the level of two-way trade from the present level of about five and a half billion US dollars to $ 8 billion within the next two years. The Minister indicated this while speaking at three different meetings in Sydney today – viz., the India-Australia Joint Ministerial Commission (JMC); the India Australia Joint Business Council (JBC); and the Lowy Institute for International Policy, one of the most prestigious think-tanks in Australia.
Urging strongly for removal of non-tariff barriers (NTBs), Shri Kamal Nath stressed that the target of US $ 8 billion could be met only if the issue of NTBs was tackled head on. “If market access is to become a reality, then non-tariff barriers in the shape of sanitary and phyto-sanitary measures and technical barriers to trade will have to be dealt with. We have to create a truly facilitative climate if we are going to experience a quantum leap in trade”, the Minister said. He said a major outcome of the JMC discussion was the proposed Trade and Economic Framework Agreement between India and Australia, which would provide a new and forward-looking mechanism to guide the bilateral trade and economic interface.
Referring to foreign direct investment (FDI), Shri Kamal Nath said: “India has one of the most liberal FDI policies in the developing world. Practically all sectors, barring a few sensitive ones (such as atomic energy and gambling) are prohibited for FDI. Where equity caps exist, these are being reviewed and our attempt is to do away with them completely, except in a few sensitive areas where we will have to adopt a policy of gradualism. Most recently we have opened up the construction-development sector; and even the retail sector is under examination for constructing an India-specific model, a model that creates new job opportunities rather than one which displaces our mom-and-pop stores. In FDI we are looking for greenfield investment – investment that creates employment, investment that brings in technology, and not just investment that replaces Indian capital. He said Australian investment in India during the last 15 years has been an abysmal 200 million Australian dollars, which was a negligible fraction of the total Australian foreign investment, and an equally negligible fraction of the FDI flows in India. “It is amazing – but true – that Indian investment in Australia is greater than this! While the Government of India is extremely happy that Indian companies are investing abroad, and will do everything to support companies which wish to invest in Australia, I think it is only natural that Australian investment in India is in great need of being pumped up”, he said.
He also pointed out that the A.T. Kearney study in 2004 put India as the 3rd most attractive FDI destination worldwide, up from the 6th spot in 2003 and 15th spot in 2002.
Correcting the misconception that India lagged in manufacturing, Shri Kamal Nath told the Lowy Institute: “This implication is conveyed as a backhanded compliment which goes something like this: ‘India is the Back Office of the world, while China is the world’s Factory’. While complimenting us on our expertise in Services, the implication is that we are poor in manufacturing. This is far from the truth. Of course, we are good in Services & Business Process Outsourcing, but that does not mean that we lag behind in manufacturing skills. In sectors like auto-components, chemicals, apparels, pharmaceuticals and jewellery we can match the best in the world. We have the skills, we have the positive environment and attitude. All we want is investment & better technology. Today few other countries have embraced foreign technology and management best-practices with as much enthusiasm as has India”.
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INDIAN CEMENT INDUSTRY TO BENEFIT FROM THE LCA STUDIES
New Delhi: May 18, 2005
The Indian Cement Industry, the second largest cement producer in the world, is all set to take a big leap further with more and more cement plants opting for Life Cycle Assessment (LCA) studies, said Shri Shiban Raina, Director General, National Council for Cement and Building Materials (NCB). Shri Raina was delivering the Inaugural Address at the “National Workshop on Life Cycle Assessment for Cement Sector”, here today. The LCA studies are bound to enhance our understanding of material balances and energy inputs and devising strategies for mitigation and conservation of precious non-renewable natural resources. The NCB is a cooperative research organisation functioning under the Miistry of Commerce and Industry.
The Workshop is an initiative to apply the emerging concept of LCA to the Indian cement industry with a view to assess the impact on environment at each and every stage of cement manufacturing commencing with the mining of limestone and finishing with the use of cement in building and construction and also recycling of alternate resources.
Organized by NCB and supported by Ministry of Environment & Forest (MoEF) Govt. of India, the Workshop was well attended more than 40 delegates from Cement Industry and Associations, Govt., various R&D Organizations, NGO’s and others including TERI and IIT Delhi, etc. Dr. Arvind Nema of IIT presented a paper on LCA studies for Process Industries – A tool for sustainable Development & Dr. S N Pati of NCB presented the paper entitled “LCA study for cement sector – Project Outcome”. LCA case studies form four Cement plants namely – Ultra Tech Cemco – Hirmi, Gujarat Ambuja Cement – Kodinar, Rajashree Cement – Malkhed and ACC – Gagal, were also presented.
Prof. D K Biswas, former Chairman, Central Pollution Control Board (CPCB) presided. Dr R R Khan, Senior Advisor to the Ministry of Environment & Forest (MoEF) Govt. of India highlighted the objectives of the LCA studies, as the right step towards sustainable development.
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Press Information Bureau
Government of India
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RECORD SPURT IN FDI INFLOWS IN 2004
ANNUAL REPORT OF DIPP 2004-5
New Delhi: May 18, 2005
India has received a record FDI inflow of 17,266.52 crore rupees (US$ 3.75 billion) in the year 2004(January- December). Since only equity component of FDI has been covered in the inflows data, this does not include the reinvested earnings and other components of FDI, which are compiled at the end of the financial year. In its Annual Report for the year 2004-05 the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce & Industry, attributes this upturn in FDI to the liberal, transparent and investor friendly FDI policy of the government whereby FDI up to 100 % is allowed under the automatic route in most sectors. FDI under the automatic route does not require any approval but only involves intimation to the Reserve Bank of India (RBI) within 30 days of inward remittances and /or issue of shares to non-residents. Apart from this, the government has undertaken a series FDI friendly initiatives to promote investments. They are:
1. Press Note 18 has been reviewed and guidelines for approval of foreign/ technical collaborations with existing joint ventures in the same field have been notified vide Press Note I.
2. FDI equity cap in domestic airline sector has been enhanced from 40% to 49% and NRI investment is permitted up to 100 % with no equity participation by foreign airlines.
3. 100 % FDI under the automatic route has been allowed for the development of township, housing, built up infrastructure and construction development projects.
4. Procedural simplification announced for the FDI investments.
Besides, the government has also set up the National Manufacturing Competitive Council (NMCC) to provide a continuing forum for policy dialogue to energize and sustain the growth of manufacturing industries. It will suggest various measures to enhance the competitiveness of the manufacturing sector including identification of manufacturing sectors that have potentials for global competitiveness.
FDI from Mauritius accounted for 31.23% of the total FDI inflows into the country followed by the USA with 20.15%. In the sector wise distribution of FDI inflows, electrical equipments ranked first accounting for 26.84 % of the total FDI inflows followed by drugs and pharmaceuticals (10.63%) and consultancy services (8.03%).
Findings of the joint UNCTAD Corporate Location Survey in April 2004 has shown China, India and the United States as the top three investment hot spots for the next four years. A. T. Kearney has in its FDI Confidence Index-2004 ranked India the third most attractive investment destination in the world.
The Annual Report also notes that the efforts of the NMCC to unlock India’s manufacturing potential and the Destination India events organized by the Ministry in association with CII and FICCI have contributed enormously for investment promotion.
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Press Information Bureau
Government of India
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DOUBLE DIGIT
EXPORT GROWTH CONTINUES
FOREIGN TRADE DATA FOR APRIL 2005-06
New Delhi: May 17, 2005
India's exports during April 2005 are valued at US $ 6567.99 million (US $ 6.5 billion), which is 17.20 % higher than the level of US $ 5603.96 million (US $ 5.6 billion) during April 2004. This growth is over and above the 19.19% export growth in April 2004 over the export growth in April 2003. In rupee terms, the exports were Rs.28729.18 crore, which is 16.70% higher than the value of exports during April, 2004.
India's imports during April 2005 are valued at US $ 10422.54 million representing an increase of 51.05 % over the level of imports valued at US $ 6900.15 million in April 2004. In Rupee terms, the imports increased by 50.40 %.
Oil imports during April, 2005 are valued at US $ 3299.64 million which is 41.37 % higher than oil imports valued at US $ 2334.11 million in the corresponding period last year. Non-oil imports during April, 2005 are estimated at US $ 7122.90 million which is 56.00 % higher than the level of such imports valued at US $ 4566.04 million in April, 2004. The trade deficit for April 2005 is estimated at US $ 3854.55 million, which is higher than the deficit at US $ 1296.19 million during April 2004.
Tables giving details of exports, imports and trade balance, according to the provisional estimates of Directorate General of Commercial Intelligence & Statistics (DGCI&S) are attached.
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DEPARTMENT OF COMMERCE IMPORTS & EXPORTS : (PROVISIONAL) |
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(Unadjusted for late returns) |
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April |
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EXPORTS
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2004-2005* |
5603.96 |
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2005-2006 |
6567.99 |
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17.20 |
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IMPORTS |
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2004-2005* |
6900.15 |
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2005-2006 |
10422.54 |
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|
|
51.05 |
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TRADE BALANCE
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||
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2004-2005* |
-1296.19 |
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2005-2006 |
-3854.55 |
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|
|
||
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DEPARTMENT OF COMMERCE IMPORTS & EXPORTS : (PROVISIONAL) |
||
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(Unadjusted for late returns) |
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|
April |
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EXPORTS
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2004-2005* |
24618.81 |
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2005-2006 |
28729.18 |
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16.70 |
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IMPORTS |
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2004-2005* |
30313.13 |
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2005-2006 |
45589.46 |
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|
|
50.40 |
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TRADE BALANCE
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||
|
2004-2005* |
-5694.32 |
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2005-2006 |
-16860.28 |
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SB/MRS
Press Information Bureau
Government of India
***
New Delhi: May 17, 2005
Shri Kamal Nath, Union Minister of Commerce & Industry, has said that the new Special Economic Zones (SEZs) Act will further enhance the export-friendly environment in India which has already seen the country's exports touching 80 billion dollars during the financial year 2004-05. Describing the passage of the SEZ Bill in Parliament as "a golden milestone in the process of broadening and deepening India's export base", Shri Kamal Nath has said that the Act provides for very attractive fiscal incentives and tax concessions for the developers as well as manufacturers. The State Governments have a direct stake in the promotion of SEZs, the Minister has said, adding that the government looks forward to their cooperation in establishing the Zones. "We also hope that the Free Trade & Warehousing Zones (FTWZs) would take off now, as they will be entitled to the same fiscal incentives as SEZs", he said.
Shri Kamal Nath recently awarded Niryat Shree and Niryat Bandhu awards to those exporters and supporting agencies who have turned in excellent performance in the year 2002-03, at a function organised by the Federation of Indian Export Organisations (FIEO). He also gave away FIEO's Lifetime Achievement Awards to Shri Ramu S. Deora, past President, FIEO for his sustained efforts to promote the cause of exports and to Shri Prabhat Kumar, former Cabinet Secretary and former Textile Secretary for his contribution to the cause of export promotion. The Lifetime Achievement Awards are given by FIEO by way of recognition to individuals who contribute substantially to the country's export effort either at the policy making level or at the trade level.
Shri O.P. Garg, President, FIEO, has said that the exporting community is fully with the government in the national effort to achieve the multiple objectives of the new Foreign Trade Policy so as to reach the revised target of US $ 92 billion set by Shri Kamal Nath for the year 2005-06. He welcomed in particular the announcement by the Minister sometime ago which brought relief to a large section of exporting community for keeping in abeyance the Duty Entitlement Pass Book (DEPB) cases reopened by the Income Tax authorities. "This has been possible only with the active intervention of the Commerce & Industry Minister", Shri Garg said.
Meanwhile, Shri Kamal Nath who had recently attended a series of WTO meetings at Paris has said that: "India played a key role in resolving the deadlock on conversion of specific duties to ad valorem equivalent. But it is not celebration time yet! - a lot of work remains not only in Agriculture but also in non-agricultural market access (NAMA) and Services. India is determined to protect our defensive interests, while being ambitious in our areas of offensive interest. It is not correct to assume that in Agriculture we are only defensive; we are offensive here too, and I am particularly eager that Indian exports of horticulture, floriculture and processed foods increase. In the same way, in Services we aim to get good results especially in Modes 1 & 4. Our autonomous liberalisation has already put us on the right path in Mode 2. In non-agricultural tariffs, where we are approaching ASEAN levels".
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SB/MRS
Press Information Bureau
Government of India
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New Delhi: May 13, 2005
Shri Kamal Nath, Union Minister of Commerce & Industry, has assured the exporting community of full support from the government to achieve the new target of US $ 92 billion set by him for the year 2005-06. The Minister was participating in the Export Awards function for 2002-03, organised by the Federation of Indian Export Organisations (FIEO) here this evening where he gave away the FIEO awards to outstanding exporters and supporting agencies. The exporters in turn said that they were fully with the government in the national effort to achieve the multiple objectives of the new Foreign Trade Policy. They welcomed in particular the announcement by the Minister sometime ago which brought relief to a large section of exporting community for keeping in abeyance the Duty Entitlement Pass Book (DEPB) cases reopened by the Income Tax authorities. Shri O.P. Garg, President, FIEO said that “this has been possible only with the active intervention of the Commerce & Industry Minister”.
The Minister awarded Niryat Shree and Niryat Bandhu awards to those exporters and supporting agencies who have turned in excellent performance in the year 2002-03. He also gave away FIEO’s Lifetime Achievement Awards to Shri Ramu S. Deora, past President, FIEO for his sustained efforts to promote the cause of exports and to Shri Prabhat Kumar, former Cabinet Secretary and former Textile Secretary for his contribution to the cause of export promotion. The Lifetime Achievement Awards are given by FIEO by way of recognition to individuals who contribute substantially to the country’s export effort either at the policy making level or at the trade level. The Niryat Shree and Niryat Bandhu awards are in the form of Gold, Silver and Bronze Trophies and Certificate of Excellence.
Congratulating the FIEO award winners, the Minister also underlined the critical importance of services exports in bridging the country’s trade gap and assured that the FIEO would play a key role in nurturing and developing the Export Promotion Council for Services which have been recently set up by the government.
Referring to the SEZ Bill, Shri Kamal Nath said that: “the process of broadening and deepening our export base has been marked by a golden milestone yesterday. It gives me a great sense of satisfaction that I have managed to successfully pilot the SEZ Bill in Parliament. It was my objective to have the Bill passed before our government completed one year in office, and in this I have succeeded. I am confident that the new Act will further enhance the export-friendly environment in our country”.
The President, FIEO said that: “the new Policy has poised a challenge which has to be met : that of doubling India’s share in world trade from the present 0.75% or so to more than 1.5% by the year 2009. In other words, exporters will have to deliver exports of the value of more than US $ 175 billion in the year 2009, from the present over US $ 79.59 (2004-2005) billion….. From the exporters’ side, I have the confidence to say that we will match the nation’s expectations if, at the same time, the government can expand and upgrade the needed infrastructure within a time-bound frame. As we all know, infrastructure is the major drawback for our exporter who otherwise have extremely progressive and exporter-friendly trade policy and administration supported by an advanced technological system”.
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SB/MRS
FACT SHEET
Press Information Bureau
Government of India
***
LIST OF 38 NEW SPECIAL ECONOMIC ZONES (SEZs) APPROVED BY THE GOVERNMENT (as on 11/05/05)
New Delhi: May 13, 2005
|
|
SEZS APPROVED (FORMAL) BY BOA AND NOTIFICATION ISSUED
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S.No |
Location
|
Name of the developer |
Type |
Date of Approval |
Status |
|
|
Manikanchan at Salt Lake, Kolkata (West Bengal) |
West Bengal Industrial Development Corporation Ltd. |
Gem & Jewellery |
13.08.2003 |
Operational |
|
|
Moradabad (Uttar Pradesh ) |
UP State Industrial Development Corporation Ltd. |
Handicrafts |
27.06.2003 |
Ready for operation |
|
|
Indore (Madhya Pradesh) |
Madhya Pradesh State Industrial Development Corporation Ltd |
Integrated (Multi product) |
27.11.2002 |
Operational |
|
|
Sitapur ( Rajasthan ) |
Rajasthan State Industrial Development Corporation |
Gem & Jewellry |
21.05.2003 |
Operational |
|
|
Jodhpur ( Rajasthan) |
Rajasthan State Industrial Development Corporation |
Handicrafts and Gaur gum |
22.07.2003 |
Ready for operation |
|
|
Mundra (Gujarat) |
M/s Mundra Special Economic Zone Ltd. |
Integrated (Multi product) |
12.02.2004 |
Notified on 5.7.2004 |
|
|
Mahindra City, Chennai, Tamil Nadu |
M/s. Mahindra Industrial Park Ltd. |
Information technology, hardware and bio-informatics |
16.07.2004 |
Notified on 26.10.2004 |
|
|
Mahindra City, Chennai, Tamil Nadu
|
M/s. Mahindra Industrial Park Ltd. |
Apparel and fashion accessories |
16.07.2004 |
Notified on 26.10.2004 |
|
|
Mahindra City, Chennai, Tamil Nadu |
M/s. Mahindra Industrial Park Ltd. |
Auto ancillaries |
16.07.2004 |
Notified on 26.10.2004
|
|
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SEZS APPROVED (FORMAL) BY BOA BUT NO NOTIFICATION ISSUED |
||||
|
|
Positra (Gujarat) |
Gujarat Positra Port Infrastructural Ltd. |
Integrated (Multi product) |
15.02.2002 |
Land details yet to be furnished by the Developer |
|
|
Navi-Mumbai (Maharashtra) |
City and Industrial Development Corporation of Maharashtra Ltd (CIDCO) |
-do- |
15.02.2002 |
- do - |
|
|
Kopta (Maha Mumbai) (Maharashtra) |
Gujarat Positra Port Infrastructural Ltd |
-do- |
08.08.2003 |
- do - |
|
|
Village Vanj, Distt. Surat, Gujart |
Gujarat Industrial Development Corporation |
Apparel |
02.11.2004 |
- do - |
|
|
Hassan (Karnataka) |
Karnataka Industrial Areas Development Board |
Integrated (Multi product) |
08.08.2003 |
- do - |
|
|
Vallarpadam/ Puthuvypeen (Kerala) |
Cochin Port Trust |
Port based SEZ |
13.09.2004 |
- do - |
|
|
Salt Lake Electronic City, Kolkata. |
M/s. WIPRO Ltd. |
Software development and IT enabled services |
23.12.2004 |
- do - |
|
|
SEZS APPROVED (IN-PRINCIPLE) BY BOA AND AWAITING FINAL DETAILED PROJECT REPORT
|
||||
|
|
Nangunery (Tamil Nadu) |
Tamil Nadu Industrial Development Corporation (TIDCO) |
Integrated (Multi product) |
28.09.2000 |
Implementation status being sought |
|
|
Paradeep (Orissa) Shifted to Kalinga Nagar (Duburi) |
Govt of Orissa
|
-do- |
10.05.2000 |
- do - |
|
|
Gopalpur (Orissa) |
Govt of Orissa
|
-do- |
19.03.2001 |
- do - |
|
|
Kulpi (West Bengal) |
Govt of West Bengal |
-do- |
23.05.2000 |
- do - |
|
|
Bhadohi (Uttar Pradesh) |
UP State Industrial Development Corpn. Ltd. |
Integrated (Multi product) |
19.09.2000 |
- do - |
|
|
Kanpur (Uttar Pradesh) |
UP State Industrial Development Corpn. Ltd. |
-do- |
02.01.2002 |
- do - |
|
|
Greater Noida (Uttar Pradesh) |
Greater Noida Development Authority. |
-do- |
19.06.2001 |
- do - |
|
|
Visakhapatnam (Andhra Pradesh) |
AP Industrial Infrastructure Corporation Ltd. |
-do- |
26.09.2000 |
- do - |
|
|
Dahej ( Gujarat) |
Gujarat Infrastructure Development Corporation. |
-do- |
08.08.2003 |
- do - |
|
|
Baikampady (Karnataka) |
Kanara Chamber of Commerce & Industry |
-do- |
08.08.2003 |
- do - |
|
|
Ranchi (Jharkhand) |
M/s Ranchi Industrial Area Development Authority |
-do- |
10.09.2003 |
- do - |
|
|
Greater Noida (UP) |
M/s Export Promotion Council For Handicrafts |
Handicrafts |
17.02.2004 |
- do - |
|
|
Kolkata (West Bengal) |
M/s M.L Dalmiya & Co. Ltd |
Leather Products |
15.07.2004 |
- do - |
|
|
Ennore near Chennai |
M/s. TIDCO Ltd. |
Integrated (Multi product) |
12.08.2004 |
- do - |
|
|
Noida, Gautam Budh Nagar, U.P. |
Government of U.P. |
-do- |
02.11.2004 |
- do - |
|
32. |
Icchapor, Distt. Surat, Gujarat. |
Gujarat Hira Bourse |
Gems and Jewellery |
02.11.2004 |
- do - |
|
|
Hajira Area |
Gujarat Industrial Development Corporation |
Integrated (Multi product) |
02.11.2004 |
- do - |
|
|
Kakinada (Andhra Pradesh) |
Kakinada Seaports Ltd |
Port based SEZ |
27.11.2002 |
- do - |
|
|
Sedarapet-Karasur |
Government of Pondicherry |
Automobiles and auto parts |
24.12.2004 |
- do - |
|
|
Sedarapet-Karasur |
Government of Pondicherry |
Information technology (including services, electronics, hardware and bio-informatics). |
24.12.2004 |
- do - |
|
|
Kakkancherry near Calicut, Kerala |
Kerala Industrial Infrastructure Development (KINFRA) |
Food Processing |
07.03.2005 |
New approval |
|
|
Kalamassery, Kerala |
Kerala Industrial Infrastructure Development (KINFRA) |
Electronics Industries |
07.03.2005 |
New approval |
SB/MRS
Press Information Bureau
Government of India
***
EXPORT OF CHILLIES NOT AFFECTED
New Delhi: May 12, 2005
Export of chilli/chilli products from India has not been affected by recent developments as is evident from the substantial increase in the exports of chilli. Total export of chilli from India was 1,38,000 tonnes (valued at Rs.499.01 crore) during 2004-05 as compared to 86,575 tonnes (valued at Rs.366.88 crore) in the year 2003-04. Food Standard Agency (FSA), United Kingdom ordered a recall of 575 products in which red chilli powder alleged to be contaminated with Sudan-I dye was used as an ingredient.
In order to monitor the quality of chillies exported from India, Spices Board has started conducting compulsory sampling of all chilli/chilli products export consignments from India and testing it for Sudan-I, II, III and IV and aflatoxin. With effect from 10th March, 2005, no consignment of chilli, chilli products or other food products containing chilli whatsoever form shall be exported unless a certificate is issued by the Spices Board certifying that the consignment does not contain Sudan-I to IV and aflatoxin beyond acceptable levels and, therefore, is fit for export to the identified destination.
As per notification dated 20th June, 2003 of the European Commission (EC), consignments of hot chilli and hot chilli products imported into the European Union whatever form, intended for human consumption, should be accompanied by an analytical report demonstrating that the consignment does not contain Sudan Red-I. Vide notification dated 21st January 2004, EC has expanded the scope of notification to cover Sudan II, Sudan III and Scarlet Red (Sudan IV).
***********
Press Information Bureau
Government of India
***
New Delhi: May 12, 2005
The Corporation plans to organize a series of lectures, seminars and conferences for their valued partners, employees and all who have contributed in the Corporation’s growth and helped it in achieving its goal of serving the nation.
STC, an autonomous company, has an equity base of Rs.30 crore, of which, 91% is held by the Government of India. In the recent years, there has been a continuous spurt in the business activities of the Corporation and the Group turnover reached an all time high of over Rs.10000 crore. The turnover recorded by STC during 2004-05 is 44 % higher than the target set in the MOU with the Government of India and is 16% higher than the turnover achieved in 2003-04.
A noteworthy achievement of the Corporation on the export front has been the export of chemicals, drugs and pharmaceuticals. During 2004 – 05, STC exported Rs.227 crore worth of these items. The Corporation has also made headway in the export of iron ore (Rs.8.5 crore) and teak wood (Rs.11 crore). The total exports during 2004 – 05 amounted to Rs.610 crore. The import turnover of the Corporation has reached an all time high of Rs.8422 crore thereby exceeding the MOU target by 44%. During 2004-05, STC affected the highest ever bullion import sales of Rs.5677 crore thereby emerging as one of the largest importers/suppliers of bullion in the country. Having made a modest start in the import of hydrocarbons, minerals & metals during 2002-03, the Corporation has achieved a peak import turnover of Rs.1386 crore by way of import sales of these items during 2004-05. Import sales worth Rs.455 crore each were contributed by fertilizers and edible oils. During the year, the Corporation successfully diversified into import of petrochemicals, FMCG goods and IT products. It has also launched retail sale of gold coins in denominations of 5 gms and 10 gms. The Corporation also achieved the highest ever domestic sales of Rs.669 crore contributed largely by sales of hydrocarbons worth Rs.440 crore and pulses/maize worth Rs.186 crore.
STC has provisionally reported a net profit after tax of Rs.23.5 crore during the year, which is 68% higher than the MOU target. It has also paid an interim dividend of 15% of its equity for the year 2004-05.
Speaking on the occasion Mr. Arvind Pandalai, Chairman and Managing Director, STC expressed confidence to achieve the targeted performance for the year 2005 – 06 as there is increased buoyancy in all the sectors. He said that the Corporation took great pride in entering the 50th year of service to the nation”.
The Corporation has entered into an MOU with the Government of India stating performance targets for 2005-06. The emphasis is on improving efficiency and thereby achieving much better profitability. The net profit after tax (PAT) has been projected at level more than double of the previous year target.
· STC has entered into an exclusive tie-up for production and marketing of ballistic protection equipment, including bullet proof armouring of vehicles under the Central Government’s strategic plan to modernize police/para-military forces and forensic science laboratories. For this purpose, STC has entered into an MOU with an Indian company who has exclusive authorization from Dupont, USA to manufacture light-weight bullet proof jackets. Based on this tie-up, STC has already made offers to various government departments including some state government entities. This is likely to develop into a major business area.
· STC has already finalised import and supply of one V.I.P. configuration helicopter for the Chief Minister and Governor of Tamil Nadu on buy-back basis. Negotiations are also under way for import and supply of two helicopters for the government of Punjab for VIP travel.
· The corporation has entered into a revised arrangement with Essar Oil for supply of high-speed diesel and motor spirit. Under this arrangement, business worth Rs. 1500 crore will be undertaken during the current year.
· The Government recently entrusted STC with disposal of about 5000 MT of kerosene oil at market driven prices. The same was accomplished successfully and sizable profits were earned.
The future plans of STC include undertaking substantial exports of petro products and iron ore. It is also planning to export bulk drugs to Kazakhstan for production of formulations in the CIS region. Warehousing in the CIS region is also being considered. The STC Management is also considering participation in a special purpose vehicle to be set up for developing Land Customs Stations in India. On the import front, the Corporation has already started imports of FMCG products and the import of IT products is also likely to start soon. The Corporation is proposing to diversify into imports of non-ferrous metals and take mining capacity on lease.
STC is set to achieve greater heights in the coming years.
___________________
SB/MRS
Press
Information Bureau
Government of India
***
NEW BILL EXPECTED TO GENERATE $ 2 BILLION FDI AND 50% GROWTH IN JOBS IN SEZs – KAMAL NATH
New Delhi: May 11, 2005
Shri Kamal Nath, Union Minister of Commerce & Industry, has said that the new Special Economic Zones (SEZs) Bill 2005, which was passed by the Lok Sabha last evening and is scheduled to come up before the Rajya Sabha today, could result in inflows of foreign direct investment (FDI) into the country to the tune of US $ 2 billion over the next three years and generate a 50% growth in employment opportunities in the SEZs. The additional employment expected in the Zones after the passage of the Bill is about 50,000 in the next one year. Presently, employment in SEZs is about 95,000. Shri Kamal Nath has said that “introduction and passage of this Bill will provide confidence and stability to domestic and foreign investors and signal the government’s commitment to the SEZ policy framework. It is expected that many large format, multi-product SEZs that have so far been unable to achieve financial closure will now quickly move towards such closure”.
Responding to concerns expressed by the Left Parties, Shri Kamal Nath has assured that the Centre would consult and collaborate with the State Governments when it intends to set up SEZs and that necessary provisions would be built-in while framing rules under the Bill. He has underlined that most important features of the SEZ Act 2005 is to attract investment (both domestic and foreign), and to ensure employment generation since export activities have the potential to directly create more jobs.
The Bill provides a single window clearance and approval mechanism for establishment of SEZs as well as production units inside the Zones. The Bill contains income tax concessions for both SEZ units as well as SEZ developers. SEZ units will be eligible for 100% tax exemption for 5 years, 50% for the next 5 years, and 50% of the ploughed back export profits for the next 5 years. SEZ developers continue to get 100% income tax exemption for 10 years in a block period of 15 years.
The other salient features of the Bill relate to the following: (i) Establishment of SEZ and for setting up of units therein, including requirements, obligations and entitlements; (ii) Establishment of free trade and warehousing zones to create world class trade-related infrastructure to facilitate import and export of goods aimed at making India a global trading hub; (iii) Requirements for setting up of offshore banking units and units in International Financial Service Centre in SEZs, including fiscal regime governing the operation of such units; (iv) Establishment of an Authority for each SEZ set up by the Central Government to impart greater administrative autonomy; and (v) designation of special courts and single enforcement agency to ensure speedy trial and investigation of notified offences committed in Special Economic Zones.
Why an SEZ Bill?
While the policy relating to the SEZs is contained in the Foreign Trade Policy, incentives and other facilities offered to the SEZ developer and units are implemented through various notifications and circulars issued by the concerned Ministries/Departments. The present system, therefore, does not inspire enough confidence for investors to commit substantial funds for development of infrastructure. To provide a long-term and stable policy and expeditious single-window clearance facilities, a Central Act for Special Economic Zones has been found to be necessary in line with international practice.
Fact Sheet on SEZs
Government of India had announced a Special Economic Zone scheme in April 2000 with a view to providing an internationally competitive environment for exports. The objectives of SEZs include making available goods and services free of taxes and duties supported by integrated infrastructure for export production, quick approval mechanisms, and a package of incentives to attract foreign and domestic investments for promoting exports.
There are at present 11 functioning SEZs. These 11 SEZs are in operation at present at Kandla and Surat (Gujarat), Santa Cruz (Maharashtra), Cochin (Kerala), Chennai (Tamil Nadu), Vishakapatnam (Andhra Pradesh), Falta and Salt Lake – Manikanchan (West Bengal), Noida (UP), Indore (Madhya Pradesh) and Jaipur (Rajasthan). In addition, approvals have been given for setting up of 35 new SEZs in the private/joint sectors or by the State Governments and its agencies on the basis of the proposals received from them, which are at various stages of implementation.
Exports from SEZs during 2004-05 amounted to US $ 4075 million (i.e. $ 4.07 billion), accounting for a little over 5% of India’s total exports. Foreign investment, including investment by NRIs, in the units located in the operational SEZs is about Rs.500 crore.
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SB/MRS
Press
Information Bureau
Government of India
***
INDO-SINGAPORE TRADE PACT BY END MAY
New Delhi: May 10, 2005
India and Singapore are negotiating for conclusion of a Comprehensive Economic Cooperation Agreement (CECA) between the two countries including a Free Trade Agreement (FTA) covering trade in goods, services and investment; a bilateral agreement on investment promotion, protection and cooperation; an improved Double Taxation Avoidance Agreement (DTAA); and economic cooperation. The negotiations were launched in New Delhi on 27-28 May, 2003 and the last round was held in New Delhi on March 9-10, 2005. While all major issues in the trade in goods have been settled, there are a few outstanding issues in the investment, services, financial services, telecom sectors and DTAA which need to be resolved. The agreement is likely to be concluded by the end of May 2005.
This was indicated by Shri E.V.K.S. Elangovan, Minister of State for Commerce & Industry, in a written reply in the Lok Sabha today.
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SB/MRS
Press
Information Bureau
Government of India
***
SEZ BILL TO GIVE A BIG PUSH TO EXPORTS AND FDI
New Delhi: May 10, 2005
The Special Economic Zones (SEZs) Bill 2005, introduced in the Lok Sabha by Shri Kamal Nath, Minister of Commerce & Industry, on 9th May, 2005 and passed by the Lok Sabha today, is expected to give a big push to exports and foreign direct investment (FDI) inflows into the country. The new law is aimed at encouraging public-private partnership to develop world-class infrastructure and attract private investment (domestic and foreign), boosting economic growth, exports and employment, the Minister said.
“It is anticipated that the new law would trigger a large flow of foreign direct investment as well as domestic investment in infrastructure and productive capacity leading to creation of new employment opportunities”, Shri Kamal Nath said, adding that “introduction and passage of this Bill will provide confidence and stability to domestic and foreign investors and signal the government’s commitment to the SEZ policy framework. It is expected that many large format, multi-product SEZs that have so far been unable to achieve financial closure will now quickly move towards such closure”.
FDI inflows as a result of the new law could be of the order of US $ 2 billion over the next three years and additional employment of about 50,000 in the next one-year.
The Bill provides a single window clearance and approval mechanism for establishment of SEZs as well as production units inside the Zones. The Bill contains income tax concessions for both SEZ units as well as SEZ developers. SEZ units will be eligible for 100% tax exemption for 5 years, 50% for the next 5 years, and 50% of the ploughed back export profits for the next 5 years. SEZ developers continue to get 100% income tax exemption for 10 years in a block period of 15 years.
The other salient features of the Bill relate to the following: (i) Establishment of SEZ and for setting up of units therein, including requirements, obligations and entitlements; (ii) Establishment of free trade and warehousing zones to create world class trade-related infrastructure to facilitate import and export of goods aimed at making India a global trading hub; (iii) Requirements for setting up of offshore banking units and units in International Financial Service Centre in SEZs, including fiscal regime governing the operation of such units; (iv) Establishment of an Authority for each SEZ set up by the Central Government to impart greater administrative autonomy; and (v) designation of special courts and single enforcement agency to ensure speedy trial and investigation of notified offences committed in Special Economic Zones.
Why an SEZ Bill?
While the policy relating to the SEZs is contained in the Foreign Trade Policy, incentives and other facilities offered to the SEZ developer and units are implemented through various notifications and circulars issued by the concerned Ministries/Departments. The present system, therefore, does not inspire enough confidence for investors to commit substantial funds for development of infrastructure. To provide a long-term and stable policy and expeditious single-window clearance facilities, a Central Act for Special Economic Zones has been found to be necessary in line with international practice.
Fact Sheet on SEZs
Government of India had announced a Special Economic Zone scheme in April 2000 with a view to providing an internationally competitive environment for exports. The objectives of SEZs include making available goods and services free of taxes and duties supported by integrated infrastructure for export production, quick approval mechanisms, and a package of incentives to attract foreign and domestic investments for promoting exports.
There are at present 11 functioning SEZs. These 11 SEZs are in operation at present at Kandla and Surat (Gujarat), Santa Cruz (Maharashtra), Cochin (Kerala), Chennai (Tamil Nadu), Vishakapatnam (Andhra Pradesh), Falta and Salt Lake – Manikanchan (West Bengal), Noida (UP), Indore (Madhya Pradesh) and Jaipur (Rajasthan). In addition, approvals have been given for setting up of 35 new SEZs in the private/joint sectors or by the State Governments and its agencies on the basis of the proposals received from them, which are at various stages of implementation.
Exports from SEZs during 2004-05 amounted to US $ 4075 million (i.e. $ 4.07 billion), accounting for a little over 5% of India’s total exports. Foreign investment, including investment by NRIs, in the units located in the operational SEZs is about Rs.500 crore.
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SB/MRS
Press Information Bureau
Government of India
***
KAMAL NATH MOOTS “100-100” INITIATIVE IN AGRICULTURE
AT PARIS WTO MINI MINISTERIAL
New Delhi: 5th May, 2005
In a major proactive initiative to bring the focus of the WTO negotiations to the development agenda of the ongoing Doha Round, Shri Kamal Nath, Minister of Commerce and Industry, tabled last evening an ambitious “100-100 Initiative” in Agriculture in order to ensure a level playing field for farmers of developing countries who are denied market access due to the application by some developed countries of specific duties amounting to very high tariffs on products of export interest to developing countries. The two-fold initiative mooted by the Minister through an intervention at the Informal Ministerial Meeting – Mini-Ministerial – of the World Trade Organisation (WTO) in Paris on 4th May (Wednesday) proposed that a) all member countries of the WTO – both developed and developing countries – convert 100 % of all specific duty tariff lines into ad valorem equivalents (AVEs), and then bind these tariffs in ad valorem terms after conversion; and b) that regardless of the formula or methodology that is finally adopted for the conversion, the maximum agricultural tariff should not exceed 100 % at the end of the Doha Round. This will ensure greater access for farmers of developing countries to the markets of the developed countries, giving them a fairer share of the world trade in agriculture. The Mini Ministerial was chaired by the Trade Minister of Hong Kong China and was attended by over 30 countries.
Shri Kamal Nath as a member of the FIPS (comprising Australia, Brazil, India, the European Union and the US) also helped in achieving a breakthrough by arriving at an agreed formula for conversion of specific duties into ad valorem equivalents (AVEs) which was supported by participants at the Mini Ministerial and would be approved in Geneva by the 148 member countries. This gateway issue has now finally been resolved after months of protracted negotiations. Lack of progress on this issue was widely seen as due to the obstructionist attitude of some developed countries. Nearly 98 % of all specific duties are applied by the developed countries. Giving India’s perspective on the issue, the minister said : “ If we are all agreed that specific duties lack transparency, and that they unfairly penalize more efficient producers, then we must declare as our objective the conversion of all specific duties into AVEs on a permanent basis. In fact, once we decide that, then all this quibbling about the formula for conversion will evaporate”.
Intervening on non-agricultural market access (NAMA) issues, Shri Kamal Nath came down heavily on developed countries for applying double standards. Thus, developed countries sought reduction from bound rates and were not willing to bind duties in ad valorem terms in Agriculture, but called for reduction from applied rates and 100% binding in ad valorem terms in NAMA. Supporting Shri Kamal Nath, the Australian Trade Minister described it as the “schitzophrenia of the developed countries”. Shri Kamal Nath referred to the joint proposal on NAMA already submitted by Argentina-Brazil-India (the ABI formula) as a balanced and equitable one as it combined a satisfactory degree of liberalization with the required security for developing countries and incorporated the principle of less than full reciprocity and flexibilities in tariff reduction for developing countries, besides also addressing issues of tariff peaks and tariff escalations. He cautioned members not to treat harmonization of tariffs as an end in itself – “it is not in the mandate, so let us not make it a goal”.
He also urged removal of non-tariff barriers (NTBs), pointing out how the least developed countries (LDCs) and other developing countries were unable to make a dent in the developed country markets even with low or zero tariffs, due to protectionist measures such as technical requirements and standards, often disguised as environmental or health requirements.
In another intervention, the Minister said services must be given priority in the negotiations and articulated India’s interest in Modes 1 (cross border supply) and Mode 4 (movement of natural persons).
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SB/MRS
Press Information Bureau
Government of India
***
New Delhi: May 4, 2005
Shri Kamal Nath, Union Minister of Commerce and Industry, today called for development audit of the ongoing World Trade Organisation (WTO) negotiations, as a first step towards developing an outline of the development package for the next Ministerial Conference in Hong Kong. Participating in the Session of the Organisation for Economic Cooperation and Development (OECD) in Paris on “Trade Negotiations under the Doha Development Round”, the Minister took the lead in activating the development agenda of the WTO negotiations, and urged members not to forget that Doha was supposed to be primarily a development round. Countering the impression often given that developing countries were not ambitious enough in the negotiations, Shri Kamal Nath said ambition in the WTO negotiations should be seen essentially in the context of ensuring better market access for products of export interest to developing countries and doing it in a manner that would not impair their capacity to develop in consonance with their own specific socio-economic needs. “ If ambition does not enhance development, then it is not ‘ambition’, but illusion”, he remarked. India is among the non-member countries invited to participate in the OECD meet.
Earlier, on Tuesday the 3rd May, Shri Kamal Nath participated in a series of key trade meetings and discussed important issues of the current WTO Round especially agriculture at interactions with the G-20, G-10 and with the FIPS group as negotiations enter a crucial phase in the preparatory phase on the road to the Hong Kong Ministerial slated for December 2005. The G-20 meeting was held to strategise on issues ahead of the WTO Mini-Ministerial particularly the issue of converting specific duties to ad valorem equivalents (AVEs) that has stalled the negotiations on agriculture so far. Developed countries are applying specific duties on a whole range tariff lines on products of export interst to developing countries, which are essentially equivalent to very high tariffs, thereby denying market access to developing countries, even as developing countries have bound their tariffs at ad valorem rates. Shri Kamal Nath underlined the urgent need for the developed countries to resolve this issue by binding their specific duties in ad valorem terms. “There is also the question of equity. We cannot have on the same products rates of duty in developed countries which are five or ten times the rates of tariff in developing countries”, he said. The G-20 was attended among others by Argentina, Brazil, China, Chile, India, Mexico, Pakistan and South Africa. Later, at the FIPS meeting attended by the European Union (EU), the US, Australia, Brazil and India – including Mr. Peter Mandelson, the EU trade Commissioner and the new United States Trade Representative (USTR) Mr. Rob Portman, Shri Kamal Nath reiterated the point, saying “ we consider binding of tariffs in ad valorem terms to be very important for the approximate draft by the deadline of July”.
At the meeting of G-10 – largely a group of developed countries which have defensive interests in Agriculture – Shri Kamal Nath discussed agriculture issues in detail and said that India could respect their sensibilities in Agriculture, if they respected India’s. “Agriculture is not about numbers, it is about people”, he stressed. He also told G-10 that India could cooperate with it on Agriculture, if they cooperated in non-agricultural market access (NAMA) and services. The G-10 meeting was coordinated by Japan and included Switzerland, Norway, Iceland, Israel, Taiwan and Korea.
Shri Kamal Nath is scheduled to participate in the Mini Ministerial meeting later today, which will be chaired by the Trade Minister of Hong Kong China
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SB/MRS
Press Information Bureau
Government of India
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New Delhi: May 3, 2005
There is good demand for Indian goods including electrical, textile and food items in Iraq. As per available information, the Iraqi businessmen are traveling to India to establish contacts with Indian companies to source their supplies from them. The number of Iraqi businessmen visiting India has doubled over the previous year and the Indian Mission in Baghdad is interacting more with Iraqi business firms, replying to more business inquiries and distributing directories of Indian exporters in CD form. Similarly Indian businessmen are using the services of their local representatives and the internet to ascertain the available trade opportunities. The Mission also circulates the tender notices to the concerned bodies in India for circulating amongst their members.
To boost export to Iraq in future, the Government of India will continue to facilitate interaction between business communities of both countries besides encouraging participation of Iraqi companies in trade fairs and exhibitions held in India.
This was informed by the Minister of State for Commerce and Industry Shri EVKS Elangovan to a question in the Lok Sabha here today.
SB/SS
Press Information Bureau
Government of India
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New Delhi: May 3, 2005
The total export of human hair and its products during the year 2003-04 was of the order of US $ 70.26 million. There are no specific restrictions on the import and export of human hair and can be done freely. China, Hong Kong, Tunisia, Italy and the USA are the top 5 importing countries from India. The Plastic Export Promotion Council is sponsoring two delegations to ASEAN countries and the European Union region for promotion of exports of human hair to capture overseas markets.
This was informed by the Minister of State for Commerce and Industry Shri EVKS Elangovan to a question in the Lok Sabha here today.
SB/SS
Press Information Bureau
Government of India
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KAMAL NATH TO ATTEND OECD MEETING, WTO MINI-MINISTERIAL AND G-20 IN PARIS
New Delhi: May 02, 2005
Shri Kamal Nath, Union Minister of Commerce & Industry, will address a Special Session of the Ministerial Council Meeting of the Organisation for Economic Cooperation and Development (OECD) on “Trade Negotiations under the Doha Round” scheduled to be held in Paris on the 4 May, 2005. India is among the non-member countries including China, Brazil, Russia and South Africa who have been invited by the OECD to participate in the Ministerial Council Meeting.
Shri Kamal will also participate in the informal meeting of WTO Ministers (Mini Ministerial) to be chaired by the Trade Minister of Hong Kong, China in Paris on 4th of May, 2005. This meeting is intended to provide an opportunity to the participating Trade Ministers of WTO member countries to discuss some of the core issues in the ongoing WTO negotiations in the Doha Development Agenda and to give the required political guidance to their negotiators in Geneva in the run-up to the Ministerial Conference of the WTO slated for later this year in Hong Kong.
Preceding this, the Minister will take part in a meeting of G-20 Ministers in Paris on 3rd May, which is expected to be attended by the Trade Ministers of Argentina, Brazil, Chile, China, Mexico, Pakistan, South Africa and other member countries, besides India. Shri Kamal Nath is also scheduled to meet the G-10 representatives led by the Agriculture Minister of Japan and attend a meeting of FIPs (Five Interested Parties), to be hosted by the European Commission on the same day.
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