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Press Releases
Sep, 2006

Press Information Bureau
Government of India
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   Date                                                                  Tittle                                                    

         G.K.PILLAI TAKES OVER AS COMMERCE SECRETARY 

New Delhi, 30^th September, 2006 

Shri G.K. Pillai (IAS: 1972) took over as Commerce Secretary here today. He succeeds Shri S.N. Menon (IAS: West Bengal cadre: 1969), who superannuated today as Secretary, Ministry of Commerce and Industry (Department of Commerce), Government of India. 

Prior to his appointment as Commerce Secretary, Shri Pillai was Special Secretary in the Department of Commerce, Ministry of Commerce and Industry, dealing with matters relating to the World Trade Organisation (WTO), RMTR (Regional and Multilateral Trade Relations) and UNCTAD. He was also looking after matters pertaining to Special Economic Zones (SEZs) and Export Oriented Units (EOUs) and is Chairman of the Board of Approvals (BOA) on SEZs and EOUs in the Department of Commerce.  

He has represented the state and central government in delegations to USA, the European Union (EU), Bangladesh, Myanmar, China, Thailand, Slovenia and the United Kingdom (UK).  He is also Chairman of the Grievances Redressal Committee on matters relating to foreign trade and Regional Trade Arrangements (RTAs)/ Free Trade Agreements (FTAs)/ Preferential Trade Arrangements (PTAs).   

Belonging to the Kerala cadre of the Indian Administrative Service, had worked in diverse fields in the state government of Kerala including as District Collector of Quilon; Special Secretary for Industries, especially the traditional industries of cashew, coir and handlooms; Secretary, Health and as Principal Secretary to the Chief Minister of Kerala. 

In the central government, he had worked in the Ministries of Defence, Shipping and Transport and in the Ministry of Home Affairs, dealing with the North Eastern states.

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9^TH UN/CEFACT FORUM TO FOCUS ON DEVELOPMENT AND9^TH UN/CEFACT FORUM TO FOCUS ON DEVELOPMENT AND
SIMPLIFICATION OF EDI & E-BUSINESS PROCESSES
JAIRAM TO INAUGURATE UneDocs WORKSHOP
SIMPLIFICATION OF EDI & E-BUSINESS PROCESSES
JAIRAM TO INAUGURATE UneDocs WORKSHOP

New Delhi: September 29, 2006 

          The Department of Commerce is organizing the 9^th United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT) Forum at India Habitat Centre, New Delhi from October 2-6, 2006. The focus of the five days event will be development and simplification of electronic data interchange, e-business and administrative processes in most of public and private sectors such as finance, health, business, environment, and so on. 

          UN/CEFACT supports activities dedicated to improving the ability of business, trade and administrative organizations, from developed, developing and transitional economies, to exchange products and relevant services effectively. Its principal focus is on facilitating national and international transactions, through the simplification and harmonization of processes, procedures and information flows, and so contributed to the growth of global commerce. 

          Experts from various organizations like UN/ECE, UN/CEFACT, major IT companies around the world, representative of trade and industry etc. would share their expertise during the Forum. 

In addition, Minister of State for Commerce, Shri Jairam Ramesh would inaugurate the two-day Workshop on United Nations Electronic Trade Documents (UneDocs) on October 3, 2006. The Workshop organized by Department of Commerce at the India Habitat Centre, New Delhi, will aim at presenting important international standards for document and information harmonization and exchange in international trade, discussing the national and regional adaptation and implementation of these standards and exchanging know how and best practice on pilot projects and initiatives in the region. 

          UN/CEFACT has now adopted the UneDocs project as the basis for a new and global standard for electronic trade documents. UneDocs integrates accepted international standards and best business practice with the requirements of Internet based technologies. It allows a migration from paper based information exchange to paperless trade. UneDocs can provide the international accepted data and document structures for the emerging single window and paperless trade projects of the Asia Pacific region. 

          Experts from various organizations like UN/ECE, UN/CEFACT, major IT companies around the world, representative of trade and industry etc. would share their expertise. 

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INDIA PITCHES FOR A DEVELOPMENT AGENDA FOR INTELLECTUAL PROPERTY 

New Delhi: 29^th September, 2006 

The Indian delegation to the General Assembly of the World Intellectual Property Organisation (WIPO), a UN body responsible for intellectual property matters, led by Dr. Ajay Dua, Secretary, Department of Industrial Policy & Promotion, Ministry of Commerce & Industry, Government of India, has made a strong pitch to revive the dialogue on mainstreaming development into the entire agenda of the organization.  Hitherto, its emphasis has been on harmonization and norm setting of IP laws and implementation-cum- enforcement related matters. 

The 42^nd General Assembly of WIPO is currently meeting in Geneva in a week-long session to take stock of IPR related developments around the world.  Almost all the 183 member countries are participating in it along with a number of observers, NGOs and inter-governmental organizations.  In the Statement made on behalf of India, Dr. Dua had emphasized that the deliberations in WIPO need to make substantial headway, lest issues falling within its domain get deliberated bilaterally between nations or negotiated in other international fora.   It has not been able to develop consensus within WIPO on a number of contentious issues such as Patent Law harmonization, evolving a Development Agenda, protection of traditional knowledge and related genetic resources as well as on rights of broadcasting organizations. 

India has been strongly emphasizing a Development Agenda at the Doha round of WTO negotiations led by Shri Kamal Nath, the Minister for Commerce & Industry.  Reiterating this in WIPO is consistent with this position.   While stressing this, the Indian approach at WIPO has been widely interpreted as a constructive measure to bridge the gap and break a virtual impasse on account of rigid positions taken up by Group B countries, i.e. the developed countries and certain developing countries.  India has also been spearheading the efforts for evolving measures at the international level to protect traditional knowledge from being misappropriated.  

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PLANTATION SECTOR SEEKS KAMAL NATH’s INTERVENTION ON SPECIAL PURPOSE TEA FUND AND COFFEE ISSUES TO HELP GROWERS

New Delhi: 29^th September, 2006

          Representatives of the United Planters Association of Southern India  (UPASI) met Shri Kamal Nath, Union Minister of Commerce & Industry, here this afternoon and sought his intervention for revising upwards the subsidy to be given under the proposed Special Purpose Tea Fund (SPTF) so as to help the growers in undertaking replantation and rejuvenation activities. The Minister assured UPASI of all help from the government in reviving the fortunes of the Indian tea industry.     

          The SPTF, which is under consideration of the government, envisages replantation and rejuvenation programme at a cost of Rs.4761 crore spread over 15 years to revive the fortunes of tea industry both in terms of increase in yield as well as improvement in quality, thereby helping the industry to recapture its competitive edge in the global market.  

          “Given the magnitude of the cost involved and also the resultant crop loss to the estate in the initial phases of the programme, it may not be worthwhile if there is no adequate incentive to the growers by way of financial support. Given the above facts, we request you to kindly consider revising the subsidy to 40% under the SPTF as originally envisaged so that the tea plantations could benefit from the programme”, UPASI said in a representation handed over to Shri Kamal Nath. 

          In a separate meeting with Shri Kamal Nath today, the Coffee Exporters Association urged the Minister to extend the Vishesh Krishi Upaj Yojana scheme to the coffee industry so as to help the coffee industry overcome the problems it is currently facing. Noting that the Foreign Trade Policy for the year 2004-05 had announced the Krishi Vishesh Upaj Yojana to benefit the farmers, the association said that the scheme was unfortunately restricted only to a few products and not coffee. Therefore, they have suggested that the scheme may be applicable to coffee so as to provide some financial assistance to a large number of farmers to meet a part of their cost and stabilize their income and livelihood, as well as to arrest the decline in the production of coffee and increase coffee exports from India.

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CENTRE TO SPEND RS. 850 CRORE TO DEVELOP INFRASTRUCTURE FOR REGIONAL TRADE, SAYS JAIRAM RAMESH

New Delhi: 29^th September, 2006 

Shri Jairam Ramesh, Minister of State for Commerce, who is on a three day visit to Manipur disclosed that the Centre will be investing close to Rs.850 crore over the next three years to fully develop 14 land customs stations—8 along the border with Bangladesh, 4 along the border with Nepal, and 1 each along the border with Pakistan and Myanmar. Of this, Rs.70 crore will be at Moreh in Manipur, presently the only functional land customs station through which trade across the land route along 1600 kms of the Indo-Myanmar border takes place.    

The Minister visited Moreh today along with senior officials of the Ministry of Home Affairs, Finance and External Affairs. He said  “Moreh project specifically is part of the Prime Minister’s Look East policy, which envisages closer integration of the economies of the northeastern states of India with South-East Asia.”  At Moreh, he also interacted with local businessmen and trade associations, including the Tamil Chamber of Commerce, which has been in existence at Moreh for many decades. 

The Moreh project, which is being executed by the public sector company, RITES, will be launched shortly and completed in the next year and a half. The integrated checkpost is a new concept being implemented to manage both trade cargo and passenger movement across the border and provide modern infrastructure facilities and better connectivity.  It will greatly facilitate regional trade and also help local communities living in the vicinity of border towns through which trade takes place. 

          Shri Ramesh said that the value of formal and informal border trade transacted between India and Myanmar exceeds Rs.2000 crore.  At present only 22 items are exchangeable under the bilateral border trade agreement. “The Ministry of Commerce has just proposed to the Government of India that these restrictions be removed and that trade take place without any commodity restrictions at Moreh, as also with Bangladesh and Nepal”, he said. A final decision on this liberalization is expected shortly. There should be free, full-fledged trade, not just tightly-controlled  “border” trade”, said Shri Jairam Ramesh. This would benefit the people living in the border areas as well.  

          Earlier, Shri Ramesh met with the Chief Minister Shri Ibobi Singh and other ministers yesterday, apart from calling on the Governor. 9 new projects and investments to develop Manipur’s export potential in horticulture (like organic passion fruit and turmeric) and handicrafts were promised by Shri Ramesh, as also investment by APEDA (the Agricultural and Processed Foods Export Development Authority) to establish a cold storage facility for perishable commodities at Imphal airport like is being done at Guwahati, Bagdogra, Aizawl and Shillong airports. He drew attention to the new air freight subsidy scheme announced by him recently that provides 90% subsidy for transport of horticultural produce to Kolkata airport and 50% subsidy to Mumbai and Delhi airports. He encouraged the state government to take full advantage of this new scheme.  

           Shri Ramesh also highlighted the enormous strategic and economic significance to the northeast states of the $ 103 million Sittwe/Kaladan project that India will soon launch in Myanmar through RITES.  Sittwe port, known in history as Akyab, will be redeveloped and access provided to Mizoram through the Kaladan river. This will provide an alternative transport route between the Northeast and the rest of India, apart from improving accessibility of the northeast to Southeast Asia.  This project is to be completed in three years. 

          Shri Ramesh said that the Centre is also planning to substantially increase the allocation for the Border Area Development Programme (BADP) during the Eleventh Plan period (2007-2012). During the Tenth Plan (2002-2007), the allocation for the BADP to eight North Eastern States is Rs.407 crores. The focus of the BADP is in establishing infrastructure and schemes for the welfare of the people living in the border regions in areas like housing, roads, security, etc. 

          The Minister lauded the State Government for its new initiatives in sericulture.  He visited mulberry silk cultivation and silk weaving units outside Imphal. The sericulture project is part of a Rs.490 crore project over the next five years being funded in Manipur by the Japanese government.  The silk that will be produced is bivoltine variety, 10000 tonnes of which India imports from China annually.  At the end of the project, Manipur will be able to produce 1000 tonnes of bilvoltine silk per year.  Shri Ramesh assured the Manipur government of all assistance to market the Manipuri silk not only in the rest of India but in South East Asia as well.

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IN PRINCIPLE APPROVAL TO POSCO SEZ IN ORISSA WITH AN
INVESTMENT OF OVER Rs.53,000 CRORE
BOARD OF APPROVALS GIVES 18 FORMAL APPROVALS AND 13 IN
PRINCIPLE APPROVALS FOR SEZs – STATES CONFIRM SEZs WOULD
BE ON WASTE BARREN LAND

 New Delhi: September 28, 2006 

          The Fifth Board of Approvals for Special Economic Zones (SEZs) met here today under the chairmanship of Shri G.K. Pillai, Special Secretary, Ministry of Commerce and Industry, and Commerce Secretary designate. 

          At the meeting, 18 formal approvals and 13 in principle approvals for establishment of SEZs were granted.   

          The in principle approvals granted include the proposal from M/s Posco India Private Limited for setting up of a Multi product SEZ in Jagatsinghpur District, Orissa with an area of 1601.6 hectares. The investment would be of the order of over Rs.53,000 crores.  

          State government representatives at the Board of Approvals meeting confirmed that lands involved in all these cases would be on waste/barren lands or single crop lands only. 

          The total number of formal approvals for establishment of SEZs till date thus comes to 181 (163 earlier + 18 today).

            Further, 6 more notifications for establishing SEZs have been sent for issue today, namely:

The 6 notifications today are in addition to the 26 notifications which have been issued for establishing SEZs, since the coming into force of the SEZ Act 2005.   Thus, a total of 32 notifications for setting up of SEZs have so far been issued.   The list of the 32 SEZs is annexed.

Annexure

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ECGC PRESENTS DIVIDEND CHEQUE TO KAMAL NATH  

New Delhi: September 28, 2006

 The Chairman and Managing Director, Dr. Christy Fernandez, Export Credit Guarantee Corporation of India Ltd. (ECGC), presented the dividend cheque for Rs.59.32 crores to Shri Kamal Nath, Union Minister of Commerce & Industry, here today.   

ECGC has paid a dividend of Rs.44.32 crores for the financial year ended 31.03.2006 to the Government of India. This includes the interim dividend of Rs.10 crores already paid on 22^nd September 2005. This is the highest dividend ever paid by ECGC.   ECGC has also declared an interim dividend of Rs.25 crores for the current financial year. 

The premier export credit insurance company of the country, ECGC, has earned a gross premium income of Rs.577 crores during 2005-06 as compared to Rs.515.50 crores of previous year registering a growth of over 12 percent. ECGC achieved recoveries of RS.125 crores crossing the Rs.100 crores mark for the first time.  The net profit after tax for the year was Rs.221.62 crores as against the previous year’s profit of Rs.76.14 crores.  ECGC has covered exports aggregating Rs.37419 crores and has covered export finance aggregating Rs.398782 crores. 

ECGC has now entered in its 50^th year of operations and is the only insurance company in India operating exclusively in the export credit insurance sector under ‘non-life’ category. A number of events and initiatives have been lined up during the golden jubilee period. 

The Government of India has continued to extend support to the Corporation.  Rs.100 crores has been added to the equity base of the Corporation, which has resulted in augmenting the paid up capital to Rs.800 Crores as of date.  

ECGC signs a Memorandum of Understanding (MoU) with the Ministry of Commerce every year. The MoU for the FY 2006-07 ensures that ECGC’s performance in all spheres is of international standards.

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 ASHWANI KUMAR SHOWCASES INDIA’S POTENTIAL TO  US  INVESTORS 

       INDIA INVESTMENT FORUM AT NEW YORK CONCLUDES TODAY

                        New Delhi, 26th September, 2006 

         The Minister of State for Industry, Dr. Ashwani Kumar, while addressing the 3rd India Investment Forum at New York yesterday, highlighted India’s strengths as the growing economy and called for deeper economic engagement between Indian and US industry. The Minister noted India’s potential and achievements in sectors such as Manufacturing, Services, Banking, Insurance, and Tax Reforms etc. In particular, he   emphasised the importance of Manufacturing in India’s growth story. “Manufacturing contributes about 53% of India’s exports and receives more than two-thirds of the total foreign investments. It accounts for 11% of the workforce of about 45 million”, he said.

Dr. Kumar informed that an estimated US $ 1.5 trillion is required to sustain India’s economic growth. He said, “infrastructure sector alone requires investment of US $ 240 billion”. Other sectors such as automobiles, drugs and pharmaceuticals, food processing etc. also offer huge investment opportunities.

         Highlighting the cost advantages of investing in India he said,  “In fact, India has achieved levels of European productivity at 20 percent of the cost.  It continues to remain competitive vis a vis its south Asian neighbours in labour costs.  In 2003, the average labour cost in India was US$ 1.2 per hour of production worker – below most of the low cost countries' average at US$ 2.1 per hour”.  He quoted studies, which have shown that a full-fledged manufacturing facility in India can be set up at 60-80% of the cost in a developed market.  Dr Kumar assured that the government was taking all necessary steps to further simplify the procedures with respect to investing in India, getting requisite approvals etc.

The Minister also mentioned the potential of India’s services sector, banking & financial services, insurance, telecommunications etc. and the opportunities available in the same. “In no other country that opened up to foreign investments at the same time as India have foreign insurance companies been able to capture a 22 percent market shae in the life segment and about 20 percent in the general insurance segment”, he noted.  As per a Planning Commission study, India’s Services Sector is estimated to have the potential for creating 40 million jobs and generating additional $ 200 billion annual income by 2020.

The India Investment  Forum is an annual event,  which focuses on the growth of the Indian economy, its direction and future prospects. The forum is attended by the doyens of the American corporate and financial sector. The previous two forums were held in 2004 and 2005 respectively.

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KAMAL NATH CALLS FOR GREATER ENGAGEMENT OF JAPANESE SMEs WITH INDIA

 New Delhi: September 25, 2006

           The Union Minister of Commerce & Industry, Shri Kamal Nath, has called for a greater engagement of the Japanese small and medium enterprises (SMEs) in the Indian economy.   While addressing the inaugural session of India-Japan Economic Partnership meet here today, he assured government’s full support to the Japanese SMEs in discovering business prospects in India.   The Partnership meet was organised by the Federation of Indian Chambers of Commerce & Industry (FICCI).

          Shri Kamal Nath informed the Japanese delegation led by Mr. Nobuo Yamguchi, Chairman, Japan Chambers of Commerce & Industry (JCCI) and Tokyo Chambers of Commerce & Industry (TCCI) that an estimated investment opportunity of US $ 500 billion in major economic activities is available in India.   Of this, US $ 250 billion investment opportunities exist in infrastructure sectors alone.  He hoped “Japan’s capital and technology combined with India’s human resources and business prospects is the best combination one can hope for”.  

          The Minister highlighted manufacturing sectors like auto-components and automobiles, drugs & pharmaceuticals, chemicals & petrochemicals, banking & financial services, real estate & construction, retail sector, tourism etc., as sectors which would provide major investment opportunities to foreign investors and hoped that Japan would come forward to forge a partnership with Indian entrepreneurs for mutual economic benefit. 

          Later, the Japanese delegation called on Shri Kamal Nath and discussed various business and economic issues.  The Minister assured the delegation that all necessary assistance will be provided to the Japanese investors and in particular reiterated the hope that the SMEs of Japan would have greater engagement with India. 

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EXPORTS UP BY RECORD 34%
INDIA’S FOREIGN TRADE DATA: APRIL-AUGUST 2006-2007 

New Delhi:  September 22, 2006

 India’s merchandise exports during August, 2006 are valued at US $ 10381.16 ($ 10.3 billion) million which is 41.14% higher than the level of US $ 7354.98 million during August, 2005. In rupee terms, the exports were Rs.48310.80 crores which is 50.57% higher than the level of Rs.32085.72 crores (provisional) during August, 2005.  

Exports cumulatively during April-August, 2006 are valued at US $ 48088.76  ($ 48 billion) million which is 34.48% higher than the level of US $ 35759.90 million during April-August, 2005.  In rupee terms, the exports were Rs.220853.33 cores during April-August, 2006 which is 41.67% higher than the level of Rs.155889.61 crores (provisional) during April-August, 2005. 

India’s imports during August, 2006 are valued at US $ 13869.88 million representing an increase of 32.16% over the level of imports valued at US $ 10494.86 million in August, 2005.  In Rupee terms, the imports were Rs.64546.27 crores which is 40.98% higher than the level of Rs.45783.30 crores (provisional) during August 2005. 

Total imports during April-August, 2006 are valued at US $ 68294.22 million which is 28.39% higher than the level of US $ 53191.14 million during April-August 2005.  In rupee terms, the imports were Rs.313472.15 crores which is 35.2% higher than the level of Rs.231865.88 crores (provisional) during April- August 2005..

Oil imports during August 2006 are valued at US $ 5038.96 million which is 27.25% higher than oil imports valued at US 3959.93 million in the corresponding period last year. Oil imports during April-August 2006 are valued at US $ 23572.50 million  which is 39.48% higher than oil imports valued at US $ 16900.07 million  in the corresponding period last year.  Non-oil imports during August 2006 are estimated at US $ 8830.92 million which is 4.37% higher than the level of such imports valued at US $ 8460.98 million in August 2005.  Non-oil imports during April-August, 2006 are estimated at US $ 44721.73 million which is 8.76% higher than the level of such imports valued at US $ 41119.60 million in April- August 2005. 

The trade deficit for April-August, 2006 is estimated at US $ 20205.46 million which is higher than the deficit of US $ 17431.24 million during April-August, 2005.  

Tables giving details of merchandise exports, imports and trade balance, according to the provisional estimates of Directorate General of Commercial Intelligence & Statistics (DGCI&S) / Kolkata, are attached. 

IMPORTS & EXPORTS : (PROVISIONAL)	(US $ Million)
	August		April-August
	Provisional	Provisionally Revised**	Provisional	Provisionally Revised**
EXPORTS
2005-2006*	7354.98	8613.16	35759.9	39836.17
2006-2007	10381.16		48088.76
%Growth 2006-2007/2005-2006	41.14	20.53	34.48	20.72
IMPORTS
2005-2006*	10494.86	12420.91	53191.14	58019.67
2006-2007	13869.88		68294.22
%Growth 2006-2007/2005-2006	32.16	11.67	28.39	17.71
TRADE BALANCE
2005-2006*	-3139.88	-3807.75	-17431.24	-18183.5
2006-2007	-3488.72		-20205.46
*Provisional figures reported in Press Note for August 2005.
**Provisionally Revised figures are the latest available figures of the year unadjusted for the late returns

 

IMPORTS & EXPORTS : (PROVISIONAL)	(Rs. Crores)
	August		April-August
	Provisional	Provisionally Revised**	Provisional	Provisionally Revised**
EXPORTS
2005-2006*	32085.72	37574.5	155889.61	173663.41
2006-2007	48310.8		220853.33
%Growth 2006-2007/2005-2006	50.57	28.57	41.67	27.17
IMPORTS
2005-2006*	45783.3	54185.62	231865.88	252921.38
2006-2007	64546.27		313472.15
%Growth 2006-2007/2005-2006	40.98	19.12	35.2	23.94
TRADE BALANCE
2005-2006*	-13697.58	-16611.12	-75976.27	-79257.97
2006-2007	-16235.47		-92618.82
*Provisional figures reported in Press Note for August 2005.
**Provisionally Revised figures are the latest available figures of the year unadjusted for the late returns

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LIST OF AUTHORISED ACTIVITIES IN NON-PROCESSING AREA OF SEZs TO BE NOTIFIED

 New Delhi: September 21, 2006

 The Board of Approvals in its meeting held on 21^st September, 2006 discussed and decided the procedure to be adopted by the Board of Approval while approving infrastructure in the non-processing area of the Special Economic Zones.   In this regard, it was decided that the Central Government will notify a list of authorised operations (Annex. I). This list would be used by the Board of Approval for authorizing operations which only would qualify for exemptions, concessions and drawback.  

            The Board of Approvals also agreed on certain criteria (Annex. II) to  be followed by the Board for approval of  SEZ Developers  

Annexure-I 

List of authorised operations eligible for approval by the Board of Approval  

(A)        IT/ITES, Bio-technology & Gems & Jewellery SEZ: 

i)                     Roads with Street lighting, Signals & Signage

ii)                  Water treatment plant, water supply lines (dedicated lines upto source), sewage lines, storm water drains and water channels of appropriate capacity

iii)                 Sewage and garbage disposal plant, pipelines and other necessary infrastructure for sewage and garbage disposal, Sewage treatment plants

iv)                Electrical, Gas & PNG Distribution Network including necessary sub-stations of appropriate capacity, pipeline network etc

v)                  Security offices, police posts, etc, at entry, exit and other points within and along the periphery of the site.

vi)                 Effluent treatment plant and pipelines and other infrastructure for Effluent treatment

vii)                Office space

viii)              Parking including Multi-level car parking (automated / manual)

ix)                  Telecom and other communication facilities including internet connectivity

x)                    Rain water harvesting plant

xi)                  Power ( including power back up facilities)

xii)                 Air conditioning

xiii)               Swimming pool

xiv)               Fire protection system with sprinklers, fire and smoke detectors

xv)                Recreational facilities including club house, Indoor/Outdoor games, gymnasium

xvi)               Employee welfare facilities like ATMs, Crèche, Medical center and other such facilities

xvii)             Shopping arcade/Retail space

xviii)            Business/Convention Centre

xix)                Common Data centre with inter-connectivity

xx)                 Housing/Service apartments

xxi)                Play ground

xxii)              Bus bay

xxiii)             Food Services including Cafeteria, food court(s), Restaurants, coffee shops, canteens and catering facilities

xxiv)            Landscaping and water bodies

xxv)              Clinic & Medical Centers

xxvi)            Wi Fi/Wi Max Services

xxvii)           Drip and Micro irrigation systems

xxviii)         Any other operation ancillary or incidental to operations specified above from  (i) to (xxviii) which the Board of Approval may authorise from time to time.

 

(B)        Sector Specific SEZs  

i)                     Roads with Street lighting, Signals and Signage.

ii)                  Water treatment plant, water supply lines, sewage lines, storm water drains and water channels of appropriate capacity

iii)                 Sewage and garbage disposal plant, pipelines and other necessary infrastructure for sewage and garbage disposal and Sewage treatment plants

iv)                Electrical, Gas & PNG Distribution Network including necessary sub-stations of appropriate capacity, pipeline network etc

v)                  Security offices and police posts at entry, exit and other points within and along the periphery of the site.

vi)                 Effluent treatment plant and pipelines and other infrastructure for Effluent treatment

vii)                Office space/Shopping arcade/Retail space/ Multiplex

viii)              Housing

ix)                  Hotel/Service apartments 

x)                    Clinic / Medical Centers/ Hospital

xi)                  School/Technical Institution/Educational Institution 

xii)                 Parking including Multi-level car parking (automated / manual)

xiii)               Telecom and other communication facilities including internet connectivity

xiv)               Business/Convention Centre

xv)                Common Data centre with inter-connectivity

xvi)               Rain water harvesting plant

xvii)             Power (including power back up facilities

xviii)            Rail head

xix)                Access control and Monitoring system

xx)                 Swimming pool

xxi)                Fire Station, Fire protection system with sprinklers, fire and smoke detectors

xxii)              Recreational facilities including club house, Indoor/Outdoor games and  gymnasium

xxiii)             Employee welfare facilities like ATMs, Crèche, Medical center and other such facilities

xxiv)            Play grounds

xxv)              Bus bays

xxvi)            Food Services including Cafeteria, food court(s), Restaurants, coffee shops, canteens and catering facilities

xxvii)           Landscaping and water bodies

xxviii)         Wi Fi/Wi Max Services

xxix)             Drip and Micro irrigation systems

xxx)               Any other operation ancillary or incidental to operations specified above from  (i) to (xxix) which the Board of Approval may authorise from time to time.

 

(C)        Multi Product SEZs

 

i)                     Roads with Street lighting, Signals and Signage

ii)                  Water treatment plant, water supply lines, sewage lines, storm water drains and water channels of appropriate capacity

iii)                 Sewage and garbage disposal plant, pipelines and other necessary infrastructure for sewage and garbage disposal and Sewage treatment plants

iv)                Electrical, Gas & PNG Distribution Network including necessary sub-stations of appropriate capacity, pipeline network etc

v)                  Security offices and police posts at entry, exit and other points within and along the periphery of the site.

vi)                 Effluent treatment plant and pipelines and other infrastructure for Effluent treatment

vii)                Office space/Shopping arcade/Retail space/multiplexes

viii)              Housing

ix)                  Hotel

x)                    Clinic /Medical Centers / Hospital

xi)                  School/Technical Institution/Educational Institution 

xii)                 Parking including Multi-level car parking (automated / manual)

xiii)               Access control and Monitoring system

xiv)               Telecom and other communication facilities including internet connectivity

xv)                Rain water harvesting plant

xvi)               Power ( including power back up facilities)

xvii)             Swimming pool

xviii)            Fire Station, Fire protection system with sprinklers, fire and smoke detectors

xix)                Rail head within the SEZ

xx)                 Port

xxi)                Airport/Air Cargo Complex

xxii)              ICD

xxiii)             Banks

xxiv)            Recreational facilities including club house, Indoor/outdoor games and gymnasium.

xxv)              Employee welfare facilities like ATMs, Crèche, Medical center and other such facilities

xxvi)            Play grounds

xxvii)           Golf course

xxviii)         Bus bays

xxix)             Food Services including Cafeteria, food court(s), Restaurants, coffee shops, canteens and catering facilities

xxx)               Landscaping and water bodies

xxxi)             Wi Fi/Wi Max Services

xxxii)            Drip and Micro irrigation systems

xxxiii)          Any other operation ancillary or incidental to operations specified above from  (i) to (xxxii) which the Board of Approval may authorise from time to time. 

Annex. II

Criteria to be followed by the Board for approval of  SEZ Developers 

1.         Minimum Investment or Net worth of the Promoter company & all Group companies & Flagship companies as follows 

a)            Sector specific SEZs:    

Minimum investment of Rs.250 crores or net worth of Rs.50 crores  

b)           Multi product SEZs:  

Minimum investment of Rs.1000 crores or net worth of Rs.250 crores            

Proposals not meeting the above minimum investment or net worth criteria with enough justification for the same, to be considered on merits by the Board of Approvals.   

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ASHWANI KUMAR TO REPRESENT INDIA AT THE
INDIA INVESTMENT FORUM AT NEW YORK 

New Delhi: September 21, 2006 

            The Minister of State for Industry, Dr. Ashwani Kumar will lead the Indian delegation to the 3^rd India Investment Forum at New York on September 25-26, 2006. Dr. Kumar will be the Keynote Speaker at the Inaugural of the Forum jointly organized by Euromoney and Institutional Investor. The Forum, which focuses on the growth of the Indian economy, its direction and future prospects, is attended by the doyens of the American corporate and financial sector and its last edition was addressed by the Union Finance Minister, Shri. P. Chidambaram in 2005.

 

            At the Forum, Dr. Kumar is likely to communicate India’s economic policy initiatives, particularly in infrastructure, energy and the financial sectors. The Minister is expected to send out signals to further reinforce India's credentials as a preferred investment destination for American and global investors. It may be recalled that Dr. Kumar had earlier led an Indian delegation to Greenbrier to engage with CEO'S of major petroleum and petrochemical industries for attracting mega investments in the proposed Investments Regions, the policy for which is under consideration of the union Government.

           

            The Indian contingent at the Forum is expected to include, Mr. R. V. Shahi, Secretary, Ministry of Power, Mr. T. Sankaralingam, CMD, NTPC, Mr. Ajay Prasad, Secretary, Civil Aviation and representatives from Larsen and Toubro, Reliance Industries, Bajaj Auto Limited, Dr. Reddy's Laboratories, Unitech Limited, HDFC, Bharat Forge Limited, Dabur and Indian Hotels Co. Limited.   From the US, American organisations such as Mckinsey & Co, the Black Stone Group, Morgan Creek Capital Management, Merrill lynch & Co., and State Street Global Advisor are likely to participate. Further, Ambassador Robert Blackwell, former Deputy Assistant to President George Bush, Stanley O' Neal, Chairman of Merrill Lynch, Tom Buerkle the International Editor of Institutional Investor would be other speakers at the conference.              

            The discussion topics at the 3^rd Annual Forum will be- Capitalizing on Success: Solidifying India’s Position as an Investment Destination; Underpinning Success and Increasing Competitiveness: Improving India’s Infrastructure; Roads and Highways; Power India’s Internal Market: Growing Affluence’s Impact on Industry, Property and Financial Services; Special Economic Zones; Highlighting India’s Automotive, Real Estate, Financial Services and Consumer Goods Sectors. The 1^st India Investment Forum was held in October 2004 and the 2^nd Forum in September 2006 at New York. 

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GOVERNMENT COMMITTED TO A LIBERAL POLICY REGIME
FOR GEMS & JEWELLERY SECTOR
KAMAL NATH INAUGURATES INDIA JEWELLERY FESTIVAL

 New Delhi: September 19, 2006 

The Union Minister of Commerce & Industry, Shri Kamal Nath, while inaugurating the first ever “Lucky Lakshmi-India’s Jewellery Festival” in Mumbai today, assured the Gems & Jewellery Industry of Government’s commitment to support the industry through a liberalized policy regime.  “We are confident that this will improve the overall competitiveness of the Gems & Jewellery industry”, he said, underlining the government’s resolve to address all issues relating to this important sector, including the impact of the recent floods in Surat with its large concentration of diamond processing units.  The 45-day festival is being organized by the All India Gems and Jewellery Trade Federation. 

Shri Kamal Nath, while lauding the performance of the sector highlighted the recent trends such as emergence of Branded Jewellery, the changes taking place in Jewellery retailing etc. He noted that while India’s expertise lied in handmade Jewellery, in recent times India had also developed capabilities in machine made Jewellery. “Information Technology equipped advanced jewellery design systems are also being slowly introduced into the industry through our new generation of technology savvy, professionally trained designers”, he said.  

          Gems & Jewellery constitutes 15.13% of India’s exports and has marked a growth of 12.97% in 2005-06 over 2004-05. “Today, India is an acknowledged leader in the world in diamond processing.  We are also the largest importers in the world of bullion, importing about 800 tonnes.  Our export of gold jewellery is showing a healthy growth and has increased by 11% during 2005-2006 over 2004-05”, the Minister said. 

Availability of skilled manpower is a key strength that has enabled growth in India’s Gems & Jewellery Sector.  India has a large pool of skilled artisans with vast traditional knowledge and expertise in jewellery making. The minister informed, “This manpower pool is also being augmented through trained designers well versed in latest design software.”

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STC EARNS RECORD PROFIT OF Rs.39 CRORE 

New Delhi: September 19, 2006

 The State Trading Corporation of India Ltd. (STC), a public sector undertaking under the Ministry of Commerce & Industry, has achieved an all time high net profit (post tax) of Rs.39 crore during 2005-06 as per the annual audited accounts of the Corporation adopted by the shareholders at the 50^th Annual General Meeting here today.  The highest profitability was the outcome of a deliberate shift of focus from items yielding higher turnover to the ones generating greater trading margins and various diversification plans adopted by the Corporation. As a result, all the three segments of trade viz. exports, imports and domestic sales registered significant growths in trading margins.  

In view of substantial increase in profitability, the Corporation declared a final dividend of 35% for 2005-06 in addition to 15% interim dividend already paid. Thus, for 2005-06, the Corporation has paid the highest ever dividend of 50% in its history. 

During the year, STC also recorded a handsome growth of over 90% in its exports which zoomed to Rs.1095 crore from Rs.568 crore a year ago. One of the striking features on export front was Corporation’s venturing into overseas steel operations under which it has been supplying steel raw materials to a steel plant in Philippines from India as also from third countries. The operations are managed through a Collateral Management Agency. In another notable feature, the Corporation signed an MOU with Mysore Minerals Ltd., a Govt. of Karnataka Undertaking for getting assured supplies of iron ore for exports. Coupled with supply arrangements with other parties also, the Corporation, for the first time ever, exported 4 lakh MT of iron ore to China. During the year, exports of chemicals and pharmaceuticals also reached an all time high level registering a growth of 70% over 2004-05. Besides, the Corporation also diversified into exports of gold jewellery on a modest scale. 

On the import front, hydrocarbons, minerals and metals registered the top growth of 45%. During 2005-06, as a deliberate step, bullion imports were systematically brought down in view very low margins on such imports. This led to increase in the non-bullion imports from 32% in 2004-05 to 58% in 2005-06 in the overall imports. Other major items of imports were edible oils, petro-chemicals, vanaspati, pulses, etc. 

The Corporation also effected domestic sales amounting to Rs.537 crore during the year comprising mainly of petro-chemicals, minerals & metals and pulses. 

Outlook Ahead 

STC has signed an MOU with the Govt. of India as per which it plans to achieve a turnover of Rs.10,000 crore during 2006-07. Many fresh initiatives are being undertaken by STC to achieve the projected turnover and to sustain the high growth momentum registered in its business operations in the recent years. 

During the first five months of the current financial year i.e. Apr.-Aug.’06, the Corporation has achieved a turnover of over Rs.3000 crore and also earned a profit before tax of Rs.23 crore. The Corporation is confident of achieving the MOU targets.   With a view to strengthening its hold in the market, STC is going in for forward and backward integrations. Having been successful in its overseas steel operations in Philippines, the Corporation has also started similar operations in Bulgaria. Special thrust is being laid on developing exports of iron ore for which purpose supply arrangements have already been tied up with M/s Mysore Minerals. As a step towards backward integration, the Corporation plans to venture into mining.  

In keeping with its plans to develop agro business, the Corporation has contracted 55 lakh MT of wheat for import on behalf of the Government against 5 global tenders floated during the last about six months. As at mid-Sept.’06, 7.5 lakh MT of wheat has already arrived the Indian ports and the same has been handed over to FCI. 

The Government of India has appointed STC as a nodal agency to monitor implementation of off-set/counter trade obligations arising out of purchase of aircrafts by Indian/Air India. The Corporation has already entered into a high value agreement with Airbus in this regard. Similar agreement is also being negotiated with Boeing 

STC also plans to undertake forward integrations in the areas of retail and brand marketing in the times to come. STC is thus taking all possible steps to effect quantum jump in its turnover and profitability in the coming years. 

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NEW NATIONAL PERSPECTIVE ON IRON ORE EXPORTS
NEEDED: JAIRAM RAMESH 

New Delhi: September 15, 2006

 Shri Jairam Ramesh, the Minister of State for Commerce, called for a urgent national perspective on the issue of iron ore exports while addressing the valedictory function of the diamond jubilee celebrations of the Indian Institute of Metals, here on Wednesday.  

The Minister pointed out that presently India exports about 60% of its iron ore production and earns over US $ 4 billion. The dollar earnings are a very small proportion of overall merchandise exports but iron ore exports form a crucial element of our bilateral trade with China—48% of India’s total exports to China are of iron ore alone. India has long-term contracts with Japan and South Korea as well. Hence, it may be difficult to stop iron ore exports immediately.   

          However, Shri Ramesh advocated the view that by the end of the Eleventh Plan period (2012), India must take a strategic view that it will be a major exporter of steel and not of iron ore. As India moves to reach its goal of producing 100 million tonnes of steel locally, the availability of high-grade ore to the local steel industry has to increase. Exports would then not a feasible option. It is also necessary to conserve high-grade iron ore which, is at present, being exported in substantial quantities. Shri Ramesh urged various stakeholders to come together and agree to a larger national perspective in this area so that value-addition takes place in India and employment is also generated in the country  

Drawing attention to India’s ancient and glorious metallurgical traditions as evidenced through Wootz Steel that was world famous in the past and the building of the famous Iron Pillar in Delhi many centuries ago, Shri Ramesh said that the Indian mineral sector was undergoing a transformation. Foreign companies were coming into India and Indian companies were venturing abroad. India is also actively seeking to develop sources of long-term supply of gold and diamonds in different parts of the world.

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KAMAL NATH TO ATTEND IMF-WORLD BANK ROUND TABLE IN SINGAPORE

 New Delhi: September 14, 2006 

          Shri Kamal Nath, Union Minister of Commerce & Industry, will participate in a high-level round table discussion on Africa-Asia Trade & Investment during the World Bank and International Monetary Fund (IMF)’s Annual Meetings in Singapore, on September 17, 2006. 

        The round table is being organised by the World Bank as part of its Seminar on the occasion of the World Bank - IMF’s Annual Meetings in Singapore.     

        The round table which has a highly interactive format in the form of Q & A discussions amongst several high profile business and policy leaders from Asia and Africa will focus on the following questions: (a) What pragmatic lessons can African policy makers and businesses learn from Asian experiences in building export competitiveness? (b) As Asian countries work to further improve their investment climates and open access to their markets, what can African governments do to foster the export competitiveness of their domestic private sectors so as to take advantage of such opportunities? (c) How do multinational corporations view the prospects and constraints on African-Asian trade and investment, and how can African countries, like their Asian counterparts, participate in modern global network trade and diversify away from traditional exports? and (d) How can political leaders for African and Asian countries best respond to the greater trade and investment flows to enhance growth of the two regions? 

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MANUFACTURING SECTOR TARGETTED TO REACH 33% OF GDP, SAYS ASHWANI KUMAR
INDIAN EXPORTS TO US GROWING AT FASTER RATE THAN CHINA’S

 New Delhi: September 14, 2006

            Dr. Ashwani Kumar, Minister of State for Industry, has stated that the Government aims to increase the share of manufacturing sector in GDP from 17% to 25% and eventually to 33%.  While delivering the keynote address at the 3^rd session of the Indo-US Economic Summit, which concluded here today, he   emphasised the importance of Manufacturing in India’s growth story. Manufacturing contributes about 53% of India’s exports and receives more than two-thirds of the total foreign investments. It accounts for 11% of the workforce of about 45 million.

          Dr. Kumar counted the many advantages that India offers as a manufacturing hub and an investment destination.  In this regard, he emphasised that the government is taking all necessary steps to simplify the procedures with respect to investing in India, getting requisite approvals etc. He quoted studies, which have shown that a full-fledged manufacturing facility in India can be set up at 60-80% of the cost in a developed market. In particular, the Minister highlighted the importance of small & medium enterprises (SMEs).  “Strengthening the SME sector is one of the principles which the Ministry of Commerce and Industry is following; ultimately the SMEs will be the backbone of a strong Indian economy”, he said.

          Referring to Indo-US economic ties, the Minister stated that exports of manufactured goods to the United States were now rising faster in percentage terms than China’s, albeit from a much smaller base.   A majority of US firms, which have invested in India, have reported double-digit year-on-year growth.  He also quoted a McKinsey Global Institute study, to highlight that when US companies move their business services offshore to India, the economic benefits accrue to both nations.  

          The 2-day (13-14 September) Summit was jointly organised by the Indo-American Chamber of Commerce (IACC) and supported by the Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce & Industry.

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NATIONAL PERSPECTIVE ON IRON ORE EXPORTS NEEDED: JAIRAM RAMESH

New Delhi: September 14, 2006

 Shri Jairam Ramesh, the Minister of State for Commerce, called for a urgent national perspective on the issue of iron ore exports while addressing the valedictory function of the diamond jubilee celebrations of the Indian Institute of Metals, here yesterday.  

The Minister pointed out that presently India exports about 60% of its iron ore production and earns over US $ 4 billion. The dollar earnings are a very small proportion of overall merchandise exports but iron ore exports form a crucial element of our bilateral trade with China—48% of India’s total exports to China are of iron ore alone. India has long-term contracts with Japan and South Korea as well. Hence, it may be difficult to stop iron ore exports immediately.   

However, Shri Ramesh advocated the view that by the end of the Eleventh Plan period (2012), India must take a strategic view that it will be a major exporter of steel and not of iron ore. As India moves to reach its goal of producing 100 million tonnes of steel locally, the availability of high-grade ore to the local steel industry has to increase. Exports would then not a feasible option. It is also necessary to conserve high-grade iron ore which, is at present, being exported in substantial quantities. Shri Ramesh urged various stakeholders to come together and agree to a larger national perspective in this area so that value-addition takes place in India and employment is also generated in the country  

Drawing attention to India’s ancient and glorious metallurgical traditions as evidenced through Wootz Steel that was world famous in the past and the building of the famous Iron Pillar in Delhi many centuries ago, Shri Ramesh said that the Indian mineral sector was undergoing a transformation. Foreign companies were coming into India and Indian companies were venturing abroad. India is also actively seeking to develop sources of long-term supply of gold and diamonds in different parts of the world.

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IBSA – A GATEWAY FOR INTENSIFYING TRADE AND INVESTMENT LINKS
KAMAL NATH ADDRESSES FIRST IBSA BUSINESS SUMMIT 

New Delhi: September 14, 2006 

The India-Brazil-South Africa (IBSA) trilateral cooperation represents the “new trade geography” in which each country can use its other two partners as gateways for intensifying intercontinental trade and investment links, Shri Kamal Nath, Union Minister of Commerce & Industry, said while addressing the first ever IBSA Business Summit organised jointly under the aegis of the IBSA Business Council by the CNI (National Confederation of Industries, Brazil), BUSA (Business Unity South Africa), Confederation of Indian Industry (CII), Federation of Indian Chamber of Commerce & Industry (FICCI) and Associated Chamber of Commerce & Industry (ASSOCHAM), in Brasilia on 13^th September. “While India can provide an excellent staging post for South Asia and South East Asia, Brazil can act as the hub for Latin America as a whole and South Africa can do likewise for the entire sub-Saharan Africa”, he said. 

Citing figures on the prospects of trade, Shri Kamal Nath said: “Intra-IBSA trade was only US $ 7.7 billion in 2005 representing less than 1.5% of total trade of the three countries.  None of the IBSA countries features as one of the ten most important trading partner of the other two countries.  IBSA countries can reinforce each others economic strength by creating a market of more than 1.2 billion, a combined GDP of 1.8 trillion dollars and trade of more than 600 billion dollars.  The intra-IBSA trade, however, has more than trebled in the decade 1994-04. The modest target of intra-IBSA trade of 10 billion dollars, set for 2007, appears to be eminently achievable”.  

The following possible areas for joint ventures / investment flows / technical cooperation were also flagged by Shri Kamal Nath:  India - Pharma (the fourth largest producer of medicines in the world), Bio-tech, Wind energy  (India has the fourth largest installed capacity in wind energy), Information Technology, Tourism, Entertainment and Animation Industries, Manufacture of Jewellery using precious and semi-precious stones and gold. Brazil - Tourism, Agriculture, Food Processing, Food Packaging, Renewable Energy including Hydel Power and Ethanol (62% of Brazil’s energy requirement is met from renewable sources, of which 10% is from ethanol- India has the largest area under sugarcane, though its ethanol cost is very high), Bio-Energy, Nuclear Energy etc. South Africa - Synthetic Fuel, Coal Gasification Technology, Nuclear Energy, Mining technology and machinery.

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ASHWANI KUMAR NOMINATED TO PM’s HIGH LEVEL COMMITTEE
ON MANUFACTURING

New Delhi: September 13, 2006 

          Government of India has nominated Dr. Ashwani Kumar Minister of State (Industry) to an Empowered Sub-Committee of the High Level Committee on Manufacturing (HLCM). HLCM has been constituted under the chairmanship of the Prime Minister with the Minister Commerce & Industry; Finance Minister; Minister of the sub-sector concerned; Deputy Chairman Planning Commission; Chairman Economic Advisory Council, Principal Secretary to Prime Minister; and Chairman National Manufacturing Competitiveness Council (NMCC) as its members.   

          The Empowered Sub-committee has been constituted under the chairmanship of Dr. V. Krishnamurthy, Chairman NMCC to formulate/ review / approve policy papers and proposals for submission to the HLCM. This Empowered Sub Committee will monitor the follow up action on implementation of the decisions taken by the HLCM. The Empowered Sub-Committee will act as the main executive body of the HLCM and submit its periodical reports for consideration of the Prime Minister / HLCM. The Sub-Committee will be serviced by the NMCC and concerned Ministries will render required assistance to the Sub-Committee.   

 

The constitution of the Empowered Committee is a major initiative to speed up and give effect to major policy decisions required to enhance the competitiveness of Indian manufacturing and to increase its share in our GDP. 

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INDIA INVITED TO INVEST IN BOSNIA
INDIA-BOSNIA & HERZEGOVINA JOINT TRADE PANEL MEETING HELD 

New Delhi: September 12, 2006 

          India has been invited to invest in Bosnia and Herzegovina, especially in the textile, auto components and pharmaceutical sectors as well as in infrastructure development projects being undertaken in that country.  This is indicated in the Protocol of the Second Session of the Joint Trade and Economic Cooperation (JTC) between India and Bosnia & Herzegovina, which was signed here last evening.   

          Both sides resolved to strengthen the bilateral economic and commercial ties.     

          The Joint Committee meeting was co-chaired by Shri Rahul Khullar, Additional Secretary, Ministry of Commerce & Industry (Department of Commerce) and Mr. Slobodan Ecimovic, Deputy Minister, Ministry of Foreign Trade and Economic Relations, Bosnia & Herzegovina. 

          The bilateral trade was US $ 1.72 million in 2005-06 and the major items of India’s exports to Bosnia are machinery and instrument, drugs, pharmaceuticals and fine chemicals. 

          The focus of discussions was on providing a framework for growth of trade and investment. This framework would be provided through agreements/ Memorandum of Understandings, covering Investment Protection and Promotion, exchange of trade related information, banking arrangements, export credit guarantee arrangements, bilateral Air Services Agreement etc.  

          Both sides expressed satisfaction with the deliberations of the Joint Committee and agreed to hold the next session of JTC in Bosnia at a mutually agreed date.

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   BOSNIA INVITES INDIAN INVESTMENT IN TEXTILES, AUTO COMPONENTS AND INFRASTRUCTURE
 INDIA-BOSNIA & HERZEGOVINA JTC MEETING HELD

New Delhi: September 11, 2006 

            The Second Session of the Joint Trade and Economic Cooperation (JTC) between India and Bosnia & Herzegovina held here today, resolved to strengthen the bilateral economic and commercial ties between the two countries.    The Joint Committee meeting was co-chaired by Shri Rahul Khullar, Additional Secretary, Department of Commerce and Mr. Slobodan Ecimovic, Deputy Minister, Ministry of Foreign Trade and Economic Relations. 

            The focus of the discussion was on providing a framework for growth of trade and investment.   This framework would be provided through agreements / Memorandum of Understandings, covering Investment Protection and Promotion, exchange of trade related information, banking arrangements, export credit guarantee arrangements, bilateral Air Services Agreement etc.   The Bosnian side expressed keen interest for Indian investment in textile, auto components, metal processing, energy, tourism, pharmaceutical, and particularly in infrastructure development being undertaken in Bosnia and Herzegovina.  

            Both sides signed the Protocol, which expressed satisfaction with the deliberations of the Joint Committee and agreed to hold the next session of JTC in Bosnia at a mutually agreed date. 

            The bilateral trade was US $ 1.72 million in 2005-06 and the major items of India’s exports to Bosnia are machinery and instrument, drugs, pharmaceuticals and fine chemicals.  

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   INDIA STANDS FIRM ON WTO AGRICULTURE ISSUES – KAMAL NATH ATTENDS G-20 IN RIO, STRESSES COOPERATION WITH BRAZIL 

New Delhi, 11^th September 2006 

Standing firm on agriculture issues in the suspended Doha Round of negotiations, Shri Kamal Nath, Minister of Commerce and Industry, has underlined once again the need to correct the structural flaws in the world trade in agriculture arising out of trade distorting subsidies given by the developed countries and has said that the development content of the Doha Round must not be diluted.  The Minister was participating in the G-20 High Level Meeting with coordinators of other developing country groups in the World Trade Organisation (WTO) namely, G-33, the ACP group, the least developed countries (LDCs) group, the Africa group, the Cotton-4, NAMA-11 and the small and vulnerable economies, held in Rio de Janeiro on Saturday 9^th September to consider the status of the Doha Round of negotiations.  

Addressing the G-20 press conference in Rio, Shri Kamal Nath, emphasised the close cooperation and synergies between India and Brazil as well as all developing country groupings, And stressed that the G-200 was united even though it represented diverse interests. Referring to the joint statement of the G-20 meeting which was issued in Rio last evening, he said “we remain engaged, but would like to see the response of the developed countries to our communiqué”.  

The joint statement said: “ Agriculture lies at the centre of the Doha Development Agenda. Most of the world’s poor make their living out of agriculture. Their livelihood and standard of living are seriously jeopardized by the subsidies and market access barriers prevailing in international agricultural trade. Any Round that would be faithful to its development dimension must urgently redress this situation. At such a critical juncture, we reaffirm our willingness to join efforts with a view to ensuring that WTO negotiations in agriculture live up to the commitments of the Doha Mandate. This would entail results that guarantee substantial and effective reduction in trade-distorting domestic support coupled with necessary disciplines to prevent box-shifting and product-shifting of support; substantial improvement in market access; and expeditious elimination of all forms of export subsidies. We underscore the importance of Special and Differential treatment (S&D) for developing countries in all areas of the negotiations. In this context, we emphasize the overall proportionality in the reduction commitments and the vital role of special products (SPs) and the special safeguard mechanism (SSM) in addressing the food security, rural development and livelihood concerns of developing countries. Ministers and High Officials urge the Director-General of the WTO to intensify the process of consultations with Member countries, in an inclusive and transparent manner in order to create the necessary conditions for the prompt resumption of the negotiations with a view to arriving at an agreement on full modalities and final commitments that is ambitious, balanced, and pro-development”.

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IMPORT OF SENSITIVE ITEMS DURING APRIL-MAY 2006 

New Delhi: September 11, 2006 

            The total import of sensitive items for the period April-May 2006 has been Rs.2792 crores as compared to Rs.2524 crores during the corresponding period last year thereby showing an increase of 10.6%. The gross import of all commodities during same period of current year was Rs.116523 crores as compared to Rs.91595 crores during the same period of last year. Thus import of sensitive items constitutes 2.8% and 2.4% of the gross imports during last year and current year respectively.   

            Imports of spices, tea & coffee and Alcoholic beverages have shown a decline at broad group level during the period. Imports of edible oil, fruits & vegetables (including nuts), cotton & silk, products of SSI, rubber, automobiles, marble & Granite and milk & milk products have shown increase during the period under reference. 

            In the edible oil segment, the imports have increased from Rs.1244 crores last year to Rs.1590 crores for the corresponding period of this year. A significant feature of edible oil import is that import of crude oil has gone up by 41.6% and that of refined oil have gone down by 46.7%.  The growth in edible oil import is mainly due to significant increase in import Soyabean Oil and its fractions, which has gone up by 103% and Crude Palm Oil and its fractions which has gone up by 14%.  

            Imports of sensitive items from Indonesia, Argentina, United States of America, China P RP, Sri Lanka DSR, Cote D’ Ivory, Germany, Japan, Australia, Afghanistan TIS etc. have gone up while those from Malaysia. Brazil, Egypt A RP, Benin, Vietnam Soc Rep have shown a decrease.  

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   EFFECTIVE PROVISION OF SPECIAL PRODUCTS AND SPECIAL SAFEGUARD MECHANISM TO ADDRESS RURAL NEEDS A MUST FOR SUCCESSFUL DOHA OUTCOME, SAYS G-33  

New Delhi: September 11, 2006 

            The G-33 – a coalition of countries having defensive interests in agriculture in the Doha Round of negotiations in the World Trade Organisation (WTO) -- has said that a successful outcome of the Doha Round must have as an integral component effective and operational provision for Special and Differential Treatment, especially the provisions for Special Products (SPs) and Special Safeguard Mechanism (SSM) in order to address the food security, livelihood security and rural development needs of developing countries.  Shri Kamal Nath, Union Minister of Commerce and Industry, attended the meeting of G-33 Ministers and Heads of Delegations present in Rio de Janeiro in Brazil yesterday, which discussed the current situation of the Doha Round and deliberated on the course of action needed to ensure that the negotiations lead to an outcome consistent with the development mandate of the Round.   

            A press statement issued at the end of the meeting in Rio also stated: “We stress our political commitment and readiness to put the negotiations back on track as soon as possible as a successful outcome is critical for economic growth, development and livelihoods in developing countries.  We once again emphasize that the negotiations must be fully consistent with the Doha mandate, the July Framework Agreement and the Hong Kong Declaration, which place development at the heart of these negotiations. Therefore, any move to reverse or renegotiate the architecture of the negotiations cannot be acceptable”.  

            “We remain fully committed to a dialogue with all developing country groups with a view to achieving a common understanding and position on all aspects of SPs and SSM. We also reiterate that the purpose of these instruments is not to impede market access. It is more to provide effective instruments for developing countries to address fundamental development concerns as they engage in the Doha round and make a contribution towards its success. That contribution cannot be, however, at the expense of the livelihood of the rural poor and disadvantaged in our countries”, the statement added.

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   DRAMATIC INCREASE IN INTRA IBSA TRADE – INDIA-BRAZIL-SOUTH AFRICA CLOSE TO US $ 10 BILLION TARGET, SAYS UNCTAD 

New Delhi: September 11, 2006 

            There has been a quantitative leap in intra-IBSA trade, which is particularly dramatic between India and Brazil and India and South Africa.  This is indicated in a paper by United Nations Conference on Trade and Development (UNCTAD) titled “IBSA: An emerging trinity in the new geography of international trade”, which says that the “growing dynamo role (of IBSA partnership) in intra-regional and inter-regional South-South trade in general augurs well for IBSA trade and economic cooperation and for each country using the other partner as a gateway for intensifying inter-continental trade and investment links”.   

            From a mere $200 million in 1998 and $800 in 2002, Indo-Brazil reached $2.5 billion in 2005 and is expected to be $3 billion in 2006. India-South Africa trade similarly has grown to $4 billion in 2005. South Africa-Brazil trade stood at 1.5 billion in 2004. These trends indicate that IBSA is already close to the $10 billion target set for 2007. These numbers do not fully reflect trade in service or the quantum of trade between them through third countries, nor do they factor in the major FDI proposals and joint ventures on the anvil or even in some cases the services trade that is taking place, the paper adds. 

            India Brazil South Africa Trilateral Cooperation Forum (IBSA) is a unique initiative undertaken in the area of South-South economic cooperation. What sets it apart is that it is a "ginger group" of three large, economically well-endowed and dynamic countries, from three developing continents who are attempting to strengthen trade, investment, transfer of technology and economic cooperation among themselves. Brazil has become the largest economy in Latin America, with significant global trade presence. India, fourth largest economy in PPP (purchasing power parity) terms and second most populous country, has witnessed impressive economic and trade growth rates in the last few years. South Africa is the largest economy and trading power in Africa, accounting for biggest share of total African trade with the world, according to UNCTAD.   

            “In 2005, IBSA countries are among the top 15 developing countries, in terms of total trade. Their growing significance in international trade is shown by the way India has doubled its global trade share (both exports and imports) from 0.8% in 2000 to 1.6% in 2005, amounting to total trade of $306 billion. Similarly, South Africa's trade grew to $102 billion and Brazil's trade reached $193 billion. The value of Brazil's exports to other IBSA countries increased by 99% over the 1994-2004 decade. The corresponding figures for India and South Africa are 559% and 123% respectively. This implies that the value of trade among IBSA's countries more than tripled from 1994 to 2004. IBSA countries can reinforce the economic strength of each other by creating a market of 1.2 billion people, 1.8 trillion dollars of GDP and foreign trade of nearly 600 billion dollars. IBSA partnership is also of immense strategic value for multilateral negotiations and shaping their respective roles in global economic governance”, the paper adds. 

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   INDIA STANDS FIRM ON WTO AGRICULTURE ISSUES – KAMAL NATH ATTENDS G-20 IN RIO, STRESSES COOPERATION WITH BRAZIL 

New Delhi, 11^th September 2006 

Standing firm on agriculture issues in the suspended Doha Round of negotiations, Shri Kamal Nath, Minister of Commerce and Industry, has underlined once again the need to correct the structural flaws in the world trade in agriculture arising out of trade distorting subsidies given by the developed countries and has said that the development content of the Doha Round must not be diluted.  The Minister was participating in the G-20 High Level Meeting with coordinators of other developing country groups in the World Trade Organisation (WTO) namely, G-33, the ACP group, the least developed countries (LDCs) group, the Africa group, the Cotton-4, NAMA-11 and the small and vulnerable economies, held in Rio de Janeiro on Saturday 9^th September to consider the status of the Doha Round of negotiations.  

Addressing the G-20 press conference in Rio, Shri Kamal Nath, emphasised the close cooperation and synergies between India and Brazil as well as all developing country groupings, And stressed that the G-200 was united even though it represented diverse interests. Referring to the joint statement of the G-20 meeting which was issued in Rio last evening, he said “we remain engaged, but would like to see the response of the developed countries to our communiqué”.  

The joint statement said: “ Agriculture lies at the centre of the Doha Development Agenda. Most of the world’s poor make their living out of agriculture. Their livelihood and standard of living are seriously jeopardized by the subsidies and market access barriers prevailing in international agricultural trade. Any Round that would be faithful to its development dimension must urgently redress this situation. At such a critical juncture, we reaffirm our willingness to join efforts with a view to ensuring that WTO negotiations in agriculture live up to the commitments of the Doha Mandate. This would entail results that guarantee substantial and effective reduction in trade-distorting domestic support coupled with necessary disciplines to prevent box-shifting and product-shifting of support; substantial improvement in market access; and expeditious elimination of all forms of export subsidies. We underscore the importance of Special and Differential treatment (S&D) for developing countries in all areas of the negotiations. In this context, we emphasize the overall proportionality in the reduction commitments and the vital role of special products (SPs) and the special safeguard mechanism (SSM) in addressing the food security, rural development and livelihood concerns of developing countries. Ministers and High Officials urge the Director-General of the WTO to intensify the process of consultations with Member countries, in an inclusive and transparent manner in order to create the necessary conditions for the prompt resumption of the negotiations with a view to arriving at an agreement on full modalities and final commitments that is ambitious, balanced, and pro-development”.

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  50% INCREASE IN NUMBER OF QUERIES POSTED ON DIPP WEBSITE
INTERACTIVE FEATURES AND QUICK RESPONSES BOOST USER INTEREST

New Delhi, 8^th September, 2006

            There has been a significant increase in the number of queries sought through the on-line Chat and Bulletin Board facilities that are available on the website of Department of Industrial Policy and Promotion (www.dipp.gov.in). Encouraged by the quick and reliable responses available to users through this facility, the number of queries during the year 2005 was 5397 which was 50% higher than the queries received during the year 2004.  During the first six months of the current year, the number of queries received has already reached 3441. 

The inter-active and investor friendly website of Department provides the prospective investors, an opportunity for seeking information/ clarification of FDI Licensing policy and various other matters through Interactive Chat Sessions and Bulletin Board facility.  The website also ensures easy availability of updated information about investment Policies and Procedures, various Press-notes, Notifications and other instructions issued by the Department. 

          The unique facility of on-line interactive Chat at DIPP website is available to all concerned between 11 AM to 12 Noon and 4 PM to 5 PM on all working days.  The questions posted during these chat sessions are replied instantly by an officer of the Department. 

          The facility of Bulletin Board enables investors to post their questions on the above stated issues at any time.  All efforts are made to send a reply within 24 hours.  The average time taken in posting replies at Bulletin Board during the period January 2004 to June 2006 has been 2 hours and 10 minutes. 

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   ENGINEERING PROCESS OUTSOURCING TO BE KEY ELEMENT IN INDIA’S EXPORT STRATEGY
INDIA’S OVERALL EXPORTS MAY EXCEED $ 126 BILLION – KAMAL NATH ADDRESSES
COMMERCE CONSULTATIVE COMMITTEE

 New Delhi, 7th September, 2006

 

Engineering Process Outsourcing (EPO) services from India will be a key element of the country’s engineering export strategy, and the development of the EPO sector will have a far-reaching impact on India’s engineering industry as a whole. This was stated by Shri Kamal Nath, Minister of Commerce and Industry, at the meeting of the  Parliamentary Consultative Committee of the Ministry of Commerce and Industry here last evening. “ The EPO market in India has the potential to exceed US $ 40 billion by 2020, which will catapult India’s market share in this category to 30 % from the current 12 %. And to tap the EPO market all the important stakeholders, including government, service providers and trade bodies will need to boost investments in infrastructure and improve marketing efforts”, he said. Engineering goods exports from India have crossed US $ 5 billion in the first quarter of the current financial year, showing a growth of 20 %. But it has the potential to grow at a rate of 30 % annually, the minister  indicated citing a recent strategy paper prepared for the Engineering Export Promotion Council (EEPC) by A.F.Ferguson.

 

The government is giving high priority to engineering which represent an important segment of India’s manufacturing sector (comprising capital goods, iron and steel items, non-ferrous metals and products, consumer durables etc),he said , adding that 19 product and 34 sub-product categories had been identified as thrust products for identified for thrust countries and markets.

 

The members who participated in the discussions were S/Shri Sambasiva Rao, S.Sathyanarayana, Basangouda Patil, Ram Singh Kaswan, Sudhangshu Seal, Mohammed A. Shahid, J.M.Aaron Rashid, Rajeev Shukla, N.R.Govindarajan, Shantaram Naik, M.Rajasekhara Murthy, and Sharad Joshi. The meeting was also attended by Dr. Ahwani Kumar, Minister of State for Commerce and Industry; Shri S.N. Menon, Commerce Secretary,; Dr. Ajay Dua, Secretary (Industrial Policy and Promotion) and other senior officials.

 

Stating that India’s merchandise exports had crossed the US $ 100 billion mark to reach US $ 103 billion in 2005-06, recording a growth of 23 % , Shri Kamal Nath indicated that the target of US $ 126 billion set for the current financial year 2006-07 was likely to be exceeded going by the 40 % growth momentum  seen the first quarter of this fiscal.

 

Shri Rakesh Shah, Chairman/EEPC pointed out that Indian Engineering exporters faced a disability factor of 16 to 18 % in comparison with just 6 to 8 % faced by their competitors in South East Asia and urged the minister to take up the taxation issues such as service tax, state levies etc which amounted to “exporting taxes” and eroded the competitiveness of Indian exports.

 

Shri Rajiv Kher, Joint Secretary, Ministry of Commerce, in a power point presentation on “The Scenario of Engineering Exports – Challenges, Opportunities and the Road Ahead” brought out the following points about EPOs : 1) EPO services are India’s next billion dollar opportunity; 2) EPOs are no more just a part of R and D services;3) EPOs have grown by CAGR of 37 % between 2003 and 2006; 4) EPO potential could be US $ 10 to 20 billion in the next 5 years from the present level of US $ 3.5 billion; and 5 ) EEPC is conducting a study on a Strategy Paper for the promotion of EPO services from India.

 

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   INDIA, OMAN FOR FTA WITH GCC

 New Delhi, Bhadrapada 15, 1928
September 06, 2006

             At the 5^th Session of the India-Oman Joint Commission, co-chaired by Shri Kamal Nath, Minister of Commerce and Industry & Mr. Maqbool Ali Sultan, Minister of Commerce and Industry of the Sultanate of Oman, leading their respective delegations, which concluded here last evening, both sides highlighted the relevance of the proposed Free Trade Agreement (FTA) between India and the Gulf Cooperation Council (GCC) countries and expressed support for the agreement.   

            Recognizing that the present level of economic engagement is far below the potential, both sides have identified various potential sectors to further upgrade bilateral trade and economic cooperation.  These include traditional as well as new areas such as Petroleum – Oil and Energy, Gas and Fertilizers, Information Technology, Higher Education, Civil Aviation, Agriculture etc.  A number of MOUs and cooperation agreements are also contemplated in the sectors of shipping, higher education and culture.   

            Tourism was considered a promising area and modalities for issue of tourist visas to Indian tourists visiting Oman and involving the private sector in this initiative was discussed.   

            Both sides specifically considered labour, employment and manpower cooperation as a priority sector for bilateral cooperation.  Recognizing India’s capabilities, Oman requested Indian cooperation in the areas of health care, higher education and IT.  Both sides also agreed to set up a Task Force to monitor and accelerate implementation of the recommendations of the technical level deliberations.   

            The Omani Minister accompanied by a large business delegation also had meetings with the Finance Minister, Shri P. Chidambaram; IT and Communications Minister, Shri Dayanidhi Maran; the Minister of State for External Affairs, Shri E. Ahmed and Minister of State in the Prime Minister’s Office, Shri Prithvi Raj Chavan.

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   KAMAL NATH CALLS FOR GROWTH RATE OF 15% IN SERVICES EXPORT

 New Delhi: September 6, 2006
Bhadrapada 15, 1928

           Shri Kamal Nath, Union Minister of Commerce & Industry has called for raising the growth rate of services export to at least 15%.  During his inaugural address at the National Conference on Boosting Services Exports organized by Confederation of Indian Industry (CII) here today, the Minister said “in view of India’s large work force and employment needs, the services should grow faster than current rate.”  He also urged representatives from leading services sector organizations to broaden and diversify the contents of India’s Services Export Basket.   

          The Minister lauded the efforts of the Indian Services Sector and pointed out that the sector benefits from a growing demand for services within the country.  Shri Kamal Nath also used the occasion, to highlight the need to strengthen the manufacturing sector and said “it is essential that the manufacturing sector contribution to our GDP increases from 17% to 25%.”  

          The participants in the National Conference organized by CII included Shri G.K. Pillai, Special Secretary, Department of Commerce; Shri S. Ramadorai, CEO – TCS; Shri S. Gopalakrishnan, Joint MD and Chief Operating Officer – Infosys; Shri Lalit Bhasin, Chairman – Services Export Promotion Council etc.   

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KAMAL NATH RAISES VISA ISSUE WITH DUTCH MINISTER
BILATERAL TRADE AND ECONOMIC COOPERATION DISCUSSED

 New Delhi: September 5, 2006
Bhadrapada 14, 1928

           Shri Kamal Nath, Union Minister of Commerce and Industry, had wide ranging discussions on trade and economic cooperation with Ms. Karien Van Gennip, Minister of Foreign Trade of Netherlands. Shri Nath raised the issue of short-term visas for Indian businessmen who have been facing problems due to onerous requirements regarding documentation and personal attendance.  He underlined that the visa regime for businesspersons should respect the desire of both Government’s to enhance bilateral economic and commercial relationship.  In response the Dutch Minister promised to look into the matter, if specific instances could be furnished to the Dutch Side.  India-Netherlands bilateral trade for the year 2005-06 was around US$ 4 billion, a growth of around 46% over 2004-05, with Indian export to Netherlands increasing by about 53% and imports from Netherlands increasing by 31%,

           The Dutch Minister indicated the setting up of the Dutch Trade Board and its India Action Plan, and hoped that it would contribute significantly to raising the bilateral trade to even higher level.  In this context, Shri Kamal Nath invited the Dutch Minister to send a delegation of Small and Medium Enterprises (SMEs) from the Netherlands to foster cooperation between SMEs of both countries.   

          The Ministers noted the opportunities in India the for Dutch Investors especially in Infrastructure, Information Technology etc.  The Dutch side mentioned the Rotterdam Port Authority’s plans to advise leading ports in India on large-scale modernization.  The Ministers also exchanged views on the Doha Round of multilateral trade negotiations.  Shri Kamal Nath re-iterated that there could be no market access for subsidies, which distorted international trade in agriculture and adversely affected farmers in developing countries.  Both leaders exchanged views on the current impasse and ways to move the process forward.

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JAIRAM PROMISES CENTRAL ASSISTANCE TO
BOOST EXPORTS FROM MIZORAM

New Delhi:  September 1,  2006

Bhadrapada 10, 1928

             Shri Jairam Ramesh, Minister of State for Commerce, has promised all possible assistance from the Ministry of Commerce to boost exports from Mizoram.  He gave this assurance while meeting Chief Minister of Mizoram, Shri Zoramthanga in Aizawl, on the first day of his two day visit to the Mizoram which began today. The discussions pertained to programmes of export promotion and export infrastructure in Mizoram.   

            Shri Ramesh also spoke of the great economic significance of the  Sittwe/Kaladan project to be launched by India in Myanmar soon. India will invest $ 103 million to redevelop Sittwe port on the northwestern coast of Myanmar and improve  navigability on the Kaladan River in Myanmar. This would enable the opening of another route for trade between the north-east and the rest of India with southern Mizoram as the hub. RITES will execute the project which is expected to be commissioned by end-2009.  

            During the discussions, the Minister promised all assistance from APEDA (the Agricultural and Processed Foods Export Development Authority) for the export of horticulture products from Mizoram. APEDA will spend about Rs 7 crore over the next three years for various projects including the establishment of cold storage facilities at Aizawl aiport, common packhouse facilities for ginger, etc.

             The Chief Minister drew attention to the great potential in Mizoram  for the export of anthurium flowers, mandarin oranges and passion fruits and requested Shri Ramesh’s intervention to develop this potential. Shri Ramesh assured the Chief Minister that the Ministry of Commerce would extend all financial and technical support through its Export Development Fund for the northeastern states. He recalled that on June 21, 2006, the Ministry of Commerce had substantially liberalized airfreight assistance scheme for perishable product exports from the northeast with 90% subsidy upto Bagdogra and Kolkata and 50% subsidy upto Delhi and Mumbai airports for exports. It had also enhanced the quantum of transport assistance.  

            The Ministry of Commerce has already sanctioned over Rs 4 crore to fully develop the land customs station at Zokhawtar to facilitate border trade with Myanmar, the Minister informed. The project is being executed by the Border Roads Organisation. Similarly, about Rs 2.5 crore has been sanctioned for developing infrastructure facilities at Demagiri to promote border trade with Bangladesh.    

            Shri Zoramthanga highlighted the critical importance of bamboo in Mizo society and for the Mizoram economy. 10% of India’s bamboo production is in Mizoram alone and Shri Zoramthanga stressed the urgency for assistance to utilize bamboo effectively, especially since Mizoram is now going through the half-century flowering cycle which, in the past, has been accompanies by famine because of the proliferation of rats attracted by the bamboo flowers that then destroy agricultural crops.  Shri Ramesh assured the Chief Minister of all help in this regard and said that he had been personally following up on the agreement to be signed between the Nitol Paper and Pulp Mill in Bangladesh and Mizoram’s Bamboo Development Agency for the export of bamboo and bamboo chips from Mizoram to Bangladesh. The export, Shri Ramesh hinted, could start by end-October through Sutarkhandi land customs station. Shri Ramesh also said that the Shellac and Forest Products Export Promotion Council (SHEFEXIL) will soon organize 1000 womens’ self-help groups for the manufacture of bamboo mats.  The Minister of State for Commerce also brought to the attention of the Chief Minister, initiatives launched through the Export Promotion  Council for  Handicrafts (EPCH) to promote bamboo-based handicrafts for which there is great potential. 

            The Minister also called on the Governor, Lt. General M.M. Lakhera. Both the Governor and the Chief Minister appreciated the keen interest being taken by Minister for development of the northeast.  

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KAMAL NATH CALLS FOR GREATER ITALIAN FDI AND COLLABORATION BETWEEN TWO COUNTRIES

 New Delhi:  September 1,  2006

Bhadrapada 10, 1928

             Shri Kamal Nath, Union Minister of Commerce and Industry, who is on a visit to Italy has called for greater Italian investments and deeper economic collaboration between the two countries.  While addressing the Forum Ambrosetti in Milan today, he presented India’s strong economic fundamentals and stated “India has moved up the value chain of global perception”.  The Minister noted that FDI inflows in the 1^st quarter this year have increased by 47% over the same period last year, while the GDP Growth has averaged 8% over the last three years.  On the trade front, exports have grown at an average of 25% per annum over the last three years and imports too have risen commensurately.   “If trade of both goods and services is combined, India’s economic engagement with the world this year will exceed US$ 450 billion” he stated. 

          Earlier addressing two separate events organized by Confindustria and the Falck group yesterday, Shri Kamal Nath hoped for a much broader collaboration between Indian and Italian industry more so for the development of  India’s Small and Medium Enterprises (SMEs).  He also stated that India’s scientific man power and proven ability at innovation combined with Italy’s designing capabilities whether in automobiles or fashion can make the India – Italy combination a world beater.   

          Italy is India’s 4^th largest trading partner with in the EU and the 12^th largest foreign investor.  It is one of the few country with which India enjoys a favourable balance of trade.  Both countries had agreed to intensify efforts for enhanced cooperation mainly in SME, food processing and infrastructure at the 16^th session of the India-Italy Joint Commission for Economic Cooperation in New Delhi held on 7^th January, 2005.   

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  RBI LAUDS SEZ SCHEME – SAYS IT WILL ATTRACT RS. 100,000 CRORE INVESTMENTS AND
CREATE 500,000 JOBS

 New Delhi, 1 September, 2006

 The Reserve Bank of India (RBI) in its Annual Report for the year 2005-06 has praised the Special Economic Zone (SEZ) Scheme, saying that “ the simplification of procedures and tax breaks as envisaged by the (SEZ) Act (2005) are expected to attract investments of about Rs. 1, 00, 000 crore and help create 500,000 jobs”.  

In paragraph 1.1.38 of the Report running into about 150 pages excluding the annexures, it is stated that “ In order to instil confidence in investors and signal the government’s commitment to a stable Special Economic Zone (SEZ) policy regime, a comprehensive Special Economic Zones Act, 2005, Act has been enacted. The SEZ Act 2005, which came into force on February 10, 2006 is expected to facilitate large flow of foreign and domestic investment to the SEZs, and contribute to improvements in infrastructure and productive capacity, generation of additional economic activity and creation of employment opportunities”. 

“ The SEZs are envisaged to act as catalysts for growth. The simplification of the procedures for development, operation and maintenance of the SEZs and the fiscal incentives are expected to spur investment and promote industrial activity”, it adds ( Box 1.2, page 8 of the RBI Annual Report). 

Commerce Ministry’s assessment also indicates that SEZs are likely to create large scale direct and indirect employment. The total employment that would be created by December 2007 is 500, 000. Foreign Direct Investment (FDI) of the order of Rs 25,000 crore ( US $ 5 to 6 billion ) is also expected by the end of December 2007 in infrastructure development of the SEZs and in setting up of the units in the Zones. 

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